Unit 2 Flashcards
What are the 4 functions of management?
planning
directing
organising
controlling
What does planning include?
setting objectives
analysing
planning into the future
estimating resources needed
What does directing include?
leading and communicating with other employees
What does organising include?
assembling the human and other resources needed
What does controlling include?
reviewing and reporting on the businesses performance
What are the 3 categories of role of management (Mintzberg’s)
interpersonal management
informational management
decisional management
3 roles of interpersonal management?
figurehead - represent their colleagues
leader - creates and maintains an efficient working environment
liaison - communicate with external and internal contacts - need to network together
3 roles of informational management?
monitor - search for external and internal information relevant to the business
disseminator - a central communication role - passing on information to others
spokesperson - represent and speak for the organisation
4 roles of decisional management?
entrepreneur - plans and initiates changes in the business
disturbance handler - deals with unexpected crisis
resource allocator - decides the most effective use of an organisation’s resources
negotiator - engage in negotiations inside and outside the business
What are the 4 types of leadership styles?
authoritarian
paternalistic
laissez-faire
democratic
What is autocratic leadership?
leader makes decisions with no reference to anyone else
Advantages/ disadvantages of autocratic?
+ high degree of dependency on the leader
+ quick easy decisions
- can de-motivate staff
What is democratic leadership?
encourages decision making from different perspectives
Advantages/ disadvantages of democratic?
+ help motivation and involvement
+ workers feel ownership of the firms and its idea
+ improves the sharing of ideas and experiences within the business
- can delay decision making
What is laissez-faire leadership?
the leadership responsibilities are shared by all
Advantages/ disadvantages of laissez-faire?
+ can be useful in business where creative ideas are important
+ can be highly motivational
- make coordination and decision making time consuming
- relies on good teamwork
- relies on good interpersonal relations
What is paternalistic leadership?
leader makes decision but may consult
What is the y and x axis of The Blake Mouton Grid?
y concern for people
x concern for completing tasks
What are the 5 types of leadership styles on The Blake Mouton Grid?
team management task management impoverished management country club management middle of the road management
What is impoverished management?
laissez-faire style
minimal effort on management - hoping to avoid blame for errors
What is country club management?
focus on creating safe, comfortable working environment, minimal conflict
What is task management ?
autocratic style, workers have to complete work nothing else
What is team management?
staff closely involved in decision making and feeling valued
What is middle of the road management?
compromises made to achieve acceptable performance, thought to be the less effective leadership style
What is the Tannenbaum Schmidt continuum?
the continuum shows where a manager’s approach lies, running from the manager exerting rigid authority at one extreme, through to the team having full freedom to act, at the other end of the continuum.
What is stage 1 of the Tannenbaum Schmidt continuum?
the manager decides and announces the decision
What is stage 2 of the Tannenbaum Schmidt continuum?
the manager sells the idea
What is stage 3 of the Tannenbaum Schmidt continuum?
the manager presents ideas and asks questions
What is stage 4 of the Tannenbaum Schmidt continuum?
the manager suggests a tentative decisions and invite discussion
What is stage 5 of the Tannenbaum Schmidt continuum?
the manager presents the situation or problem, gets suggestions and then decides
What is stage 6 of the Tannenbaum Schmidt continuum?
the manager asks team to make decisions within the limits that are set
What is stage 7 of the Tannenbaum Schmidt continuum?
the manager allows the team to identify the problem, develop the options and decide on the action
Name the different stages of process of decision making?
setting objective gathering and interpreting information selecting the chosen option implementing the decision reviewing
What are the 4 types of decisions?
programmed
non-programmed
tactical
strategic
What is programmed decision making?
decisions which deal with problems that are familiar and where the information required to make them is easy to define and obtain
What is non-programed decision making?
decisions which deal with situations that are unstructured and unique - e.g investment
What is tactical decision making?
short term, few resources involved, easier to reverse, usually taken by junior management
What is strategic decision making?
long term, large commitment of resources, difficult to reverse and take by senior managers
What are rewards?
the positive outcomes of decision making
What happens when we cant measure the risk?
there is uncertainty - lack of knowledge
What is a decision tree?
a mathematical model which can be used by managers to help them make the right decision
What are the benefits of decision trees?
choices are set out in a logical way
potential options are considered at the same time
use of probabilities enables the risk of options to be addressed
likely costs are considered as well as benefits
easy to understand
What are the disadvantages of decision trees?
probabilities are just estimates - prone to error
uses quantitative data only
probabilities and expected values prone to be bias
What are the influences of decision making?
the business's missions and objectives ethics the risk involved the external environment resource constraints
What are stakeholders?
are groups or individuals who have an interest in the business
What are the 2 types of stakeholders?
primary and secondary
What is a primary stakeholder?
are affected by a particular business activity
What is a secondary stakeholder?
do no have direct functional or financial relationship with the business but are affected and can influence its actions e.g local community
What is meant by social responsibility?
the duties a business has towards stakeholder groups
Draw the stakeholder map
https://docs.google.com/presentation/d/1655ZA5QWlu-1Ji-PK107HvFLb_J0JGxJ655ZtVOC8dY/edit#slide=id.g259b45af34_0_160
Describe the manage closely group
more powerful and interested
major influence on management decisions
e.g customer who wants to buy a lot of products
Describe the keep satisfied group
powerful group who has little interest
e.g investors who want high financial returns
Describe the keep informed group
do not have a lot of powerful but have a lot of interest
e.g locals who are concerned how production could affect their lives
Describe the monitor group
not a powerful group
minimal effort needed
Why would stakeholder mapping be important?
analysing the position of stakeholders and their power and interest, helps a business make decisions in relation to stakeholders needs and their ability to influence it.
What influences the relationship with stakeholders?
external environment
market conditions
businesses objectives e.g if a business wants to maximise their profits, so the decision to reduce costs might not meet the needs and objectives of stakeholders
What is stakeholder engagement?
a process where which managers involve individuals and groups who may be affected by their decisions i
Draw the managing relationship with stakeholders triangle
https://docs.google.com/presentation/d/1655ZA5QWlu-1Ji-PK107HvFLb_J0JGxJ655ZtVOC8dY/edit#slide=id.g25cc8de50a_0_24
What is a hunch?
making decisions which rely on the manager’s instincts
When are hunch decisions appropriate?
uncertainty about decision
quick decision is needed
