Unit 2: Leadership and Decision Making

Question 1

What is Leadership?

Answer 1

Leadership includes the functions of ruling, guiding and inspiring other people within an organization in pursuit of agreed objectives.

Question 2

What is management?

Answer 2

Management is planning, organizing, directing and controlling all or part of a business enterprise.

Question 3

Why do the functions of Management occur?

Answer 3

The functions of management occur because businesses operate in different ways which may require managers to undertake varying tasks and duties.

Question 4

What are the functions of management?

Answer 4

The functions of management are Planning, organizing, directing and controlling. Each of these functions involves managers in making decisions, which is a constant and central element of any manager’s work.

Question 5

what does planning mean for a manager?

Answer 5

Planning involves the manager looking into the future. Planning requires management to evaluate where the company is currently, and where it would like to be in the future. Allowing managers to take decisions so that the company moves forward in an organized and coherent manner.

Question 6

What does the role of planning include?

Answer 6

Planning includes setting objectives, conducting analysis, drawing up plans in function areas, such as finance or human resources and estimating the likely resource needs for any proposed plans.

Question 7

What is the special thing about the planning process?

Answer 7

The planning process is continual, as external factors change all the time. These changes may cause a company to adjust its course of action to ensure that it achieves its objects.

Question 8

Why is planning beneficial?

Answer 8

Planning is beneficial because it helps reduce the chance of a project failing in the future. This is because it highlights problems and encourages managers to develop solutions. It helps make sure that managers have the resources they need.

Question 9

How can planning help benefit a business during an emergency?

Answer 9

The planning process helps managers overcome emergencies with plans for those specific situations, these are known as contingency plans.

Question 10

What does organizing involve?

Answer 10

Organizing involves management assembling the resources that they need to carry out actions set out in the planning process. This allows the business to determine the internal organizational structure and establish and maintain relationships, as well as allocating necessary resources.

Question 11

Why is organizing so important?

Answer 11

Because acquiring resources is an essential element of effective management, as a well managed business will plan carefully and will seek to use the minimum amount of resources to achieve its objectives.

Question 12

What is directing?

Answer 12

Directing is a process which allows management to influence and oversee the behaviour of staff in achieving the business’s goals, as well as assisting them by providing necessary resources. Directing employees entails leading employees through motivation and communication.

Question 13

What is motivation?

Answer 13

Motivation is the willingness to achieve a target or goal.

Question 14

Why are highly motivated employees important to a business?

Answer 14

Highly motivated employees will perform better and will assist more so in achieving business objectives. For this reason, managers tend to put a lot of focus into motivating employees as they provide financial incentives.

Question 15

How might a business motivate employees financially?

Answer 15

Managers may grant financial incentives to employees to encourage them leading to them becoming more motivated and working at a better performance.

Question 16

What is communication?

Answer 16

Communication is the exchange of information between one or more people.

Question 17

What is effective communication and why is it important?

Answer 17

Effective communication takes many forms but it may be praise or clear guidance. It helps to achieve higher levels of productivity and encourages employees to use their initiative as well as solve problems.

Question 18

What is control and what does it involve?

Answer 18

Control involves setting standards using the company’s objectives and reviewing and reporting performance.

Question 19

What should a business do after reviewing and reporting on their performance?

Answer 19

They should compare the objectives and performance to determine any necessary corrective or preventative action.

Question 20

Why is reviewing important for a business?

Answer 20

Its important because it allows reflection and judgement on what has been achieved and encourages further decisions to ensure the business meets its objectives.

Question 21

Describe how a business may use financial reports to report on business performance.

Answer 21

A business can publish details of their financial performance each year, giving information on their sales, revenues, and profits. Reporting financially is a legal requirement in many countries for companies, to assist governments in assessing that the correct amount of tax has been paid.

Question 22

Describe how a business may report through employee performance.

Answer 22

A business will report on employee productivity, absenteeism or training costs. For many businesses supplying services these can be a vital measure of business performance.

Question 23

Describe how a business can report through social performance.

Answer 23

Managers can measure a business’s performance in terms of behaving ethically, minimising pollution and creating jobs.

Question 24

List the 3 main ways a business will report on its performance.

Answer 24

1. Financial reports
2. Employee performance
3. Social performance

Question 25

What is trait theory leadership?

Answer 25

Trait theory leadership states that certain personality traits differentiate a good leader or manager from other people.

Question 26

What are the common characteristics of good leaders, using trait theory?

Answer 26

Confidence, Communicators, Motivators.

Question 27

What is the major reason for the decline in the belief in trait theory?

Answer 27

Many successful leaders have been found to exhibit different characteristics from each other.

Question 28

What is behavioural leadership theory?

Answer 28

Behavioural leadership theory focuses on how the manager behaves in their role. The theory try to identify the right way of leading employees rather than looking at the characteristics of the manager.

Question 29

What are the two components/styles within behavioural leadership theory?

Answer 29

1. Considerate style
2. Initiating structure

Question 30

What is the considerate style?

Answer 30

The manager focuses on the wellbeing of employees. e.g Are they comfortable at work? Do they feel at ease and well treated? Managers focus on listening to employees and encouraging them. Managers are approachable and reward good performance.

Question 31

What is the downside of behavioural theory leadership?

Answer 31

Staff may well feel looked after, but they may not necessarily complete the task effectively?

Question 32

What is an initiating structure?

Answer 32

An initiating structure focuses on defining and planning work. The manager concentrates on getting the work done. They allocate tasks, inform subordinates of their tasks and monitor progress.

Question 33

What is the downside of an Initiating structure?

Answer 33

The work gets done but staff may feel that they are being treated unfairly.

Question 34

What are the two other relevant dimensions to behaviour leadership theory and how are they analysed?

Question 35

What is the Blake mouton grid and what is it used for?

Answer 35

The Blake mouton grid is a management and leadership style model

Question 36

What are the 5 main categories on the Blake mouton grid?

Question 38

The manager has a large concern for people and a low concern for production, they place little focus on objectives and a large focus on the feelings of their staff, the work environment is fun and relaxed but it may suffer from a lack of control and supervision.