Unit 2

Question 1

What do managers do?

Answer 1

Setting objectives
Analysing
Leading
Making decisions
Reviewing

Question 2

What is management?

Answer 2

Management is ‘the process of getting things done through others.’

Question 3

What will a manager do in setting objectives

Answer 3

Managers will set goals for the group of subordinates.
They will decide what work needs to be done to meet these goals.
Managers will divide the work into manageable activities and select the best workers to get the tasks done.
Managers will motivate and communicate with the team to ensure that the objectives are met.

Question 4

What will a manger do in reviewing ?

Answer 4

Managers review decisions and data frequently to ensure that the organisation is on track to meet objectives.
If plans are not meeting objectives then the plan needs to be altered.

Question 5

Reasons for reviewing a decision

Answer 5

Corporate culture not ready for change
Skills of employees insufficient
Lack of financial controls(internal)

Political changes (local, regional, national or international)
Changes to environmental attitudes
Changes to social attitudes(external)

Question 6

Difference between Leaders and Managers

Answer 6

Leaders:
Look to the future
Are willing to break the mould, innovate
Have a vision
 Managers:
Focus on the present
Maintain the status quo
Are implementers

Question 7

Types of leaderships

Answer 7

Authoritarian – close controls, direct supervision
Laissez-faire – power to make decisions given to subordinates
Paternalistic – parental figure caring for workforce
Democratic – sharing decision-making through groups
Bureaucratic – must follow rules and procedures

Question 8

What is Mcgregor Theory X and Y

Answer 8

McGregor X – managers believe workers are lazy and need close supervision
McGregor Y – managers believe workers are self motivated and as such can solve problems

Question 9

Authoritarian leadership explanantion

Answer 9

Authoritarian
Tells employees what to do
Leader keeps control
Leader does not ‘listen’ to staff but has his/her own ideas

Advantages:
Decisions are made quickly
Control is centralised

Disadvantages:
Can demotivate staff because they are not included in decision-making
Leader does not benefit from views and experience of staff

Question 10

The Blake Mouton grid

Answer 10

It identifies how ‘people orientated’ the leaders are or how ‘task orientated’ (having a high concern for production) they are.

People oriented:
Pleasant environment to work in
Staff happy

Task oriented:
Can get tasks done quickly
Can get task done accurately
Can lead to de-motivated staff

Question 11

What is the Tannenbaum Schmidt continuum?

Answer 11

The continuum helps to show the range of management styles which are available to managers.
It helps to identify who has the most input in decision-making – managers or staff.

Question 12

Influences on the style of leaderships

Answer 12

The company structure
the situation
The nature of the tasks
The employees themselves
The group size

Question 13

What is decision making all about

Answer 13

Minimissing risks but maximizing rewards

Question 14

Decision-making for managers Risks:

Answer 14

Finances – could lose money or not make as much money as manager thought
Reputation – could damage reputation of business/manager
People – could lose good staff if not successful; demotivate staff
Future – could influence future decisions
Resources – resources not used effectively

Question 15

Decision-making for managers Rewards:

Answer 15

Finances – could make more money that anticipated
Reputation – could enhance reputation of business/manager
People – could attract good staff in future; motivate staff
Future – could get future business from potential customers

Question 16

Benefits of scientific approach

Answer 16

Clear direction by emphasizing objectives and getting people involved in the decision-making process
Decisions based on logic and rational thinking

Question 17

What else can you use instead of the scientific approach

Answer 17

Intiutions and experience

Hunches or ‘gut feeling’

Question 18

What are decision trees?

Answer 18

Decision trees are a mathematical and graphic model to aid managers in making the right decisions.

Question 19

The value of decision trees

Answer 19

They analyse the data, making is easier to make decisions
The visual nature of the diagram makes it easier to understand complex information
Used as a tool but should not be used exclusively – qualitative information should also be considered

Question 20

Limitations of decision trees

Answer 20

Only uses estimates of the probability of different outcomes and the financial consequences of each outcome
The value of decision tree analysis depends heavily upon how accurate these estimates are
Only includes financial and quantifiable data – they do not utilize qualitative data

Question 21

Different type of stakeholders

Answer 21

Internal:
Employees
Shareholders
External:
Suppliers
Customers

Question 22

What is a ‘win-lose’ situation?

Answer 22

one stakeholder wins while one looses.

Question 23

What is a ‘win-win’ situation?

Answer 23

all stakeholders ultimately win.

Question 24

What is CSR (Corporate Social Responsibility)?

Answer 24

Corporate social responsibility is the commitment by business to contribute to the community and environment (both ecological and social)

Question 25

Benefits of CSR

Answer 25

More efficient use of resources (human and physical) 
Positive publicity (especially PR) 
Increased interest by potential shareholders.

Question 26

What is communication?

Answer 26

The transfer of information between people’

It does however have several elements.

Question 27

What is consultation?

Answer 27

Talking to interested parties to explain developments and issues; this is done to gather views and ideas which can contribute to the communication process.’
Internal consultations will happen when a major change is occurring.