Unit 2- Managers, leadership and decision making Flashcards
What are the four main functions of management?
Planning
Directing
Organising
Controlling
What are the four management styles?
Autocratic leaders
Democratic leaders
Laissez-faire leaders
Paternalistic leaders
What are autocratic leaders?
Follow an authoritarian approach
Tell employees what to do and rarely listen to what they have to say
What are democratic leaders?
Like to involve workers in decisions
Sharing of ideas is encouraged
Communication tends to be two way
Delegation of authority at the heart of their style
What are laissez-faire leaders?
Translates to let it be
Employees given the freedom to spend their time how they want
Often when leaders
What are paternalistic leaders?
Thinks and acts like a parent
Tries to do what is best for their staff no matter what
Members are consulted but decisions are made by head of the family
Interested in security and social needs
Believes employees need direction but also support
What is the Tannebaum and Schmidt continuum?
Model used to analyse leadership style
Developed in 1973 to develop leadership characteristics
Tell- autocratic
Sell- moves to involve employees more
Consult- major step up in terms of employee involvement
Participate- manager delegates decision
What are the factors affecting the Tannebaum and Schmidt continuum?
Size of the business Location or competition Structure of the business Experience of manager and staff Situation itself Confidence of manager and staff
What is McGregor’s theory x and theory y?
Theory X- motivated by money, lack ambition, need to be controlled
Theory Y- take pride in doing their job, motivated by more than just money
What is the Blake Mouton grid?
Developed in 1960 by Blake and Jane Mouton
Used for analysing styles of leadership by two behaviours concern for people and concern for performance/production
What is an accommodating leader?
Has high concern for people and a low concern for production
What is a produce/authoritarian leader?
High concern for production and a low concern for people
What is a middle of the road leader?
Has a medium concern for people and production
What is a impoverished leader?
Low concern for people and performance
What is a team leader?
High concern for people and production
What is the Mendelow stakeholder map?
Made in 1991
Measures stakeholder power against stakeholder interest
What is necessary for managing relations?
Satisfying- negociating to reach an acceptable compromise
Sequential attention- stakeholders taking turns to have their needs met
Side payments- compensating affected stakeholders
Exercise power- where a senior figure forces through a decision
Mission statements- having a clear direction for the business and making clear its core values
Corporate social responsibility- taking into account and assessing the impact of the business on its stakeholders
What is scientific decision making?
A logical and research based approach to decision making
Involves using a systematic process for making decision in an objective
What are the steps in the scientific decision making process?
1- Set objectives
2- Gather data on costs, demand, location, available work force through primary and secondary research
3- Analyse data
4- Select a strategy
5- Implement and review the decision making
What are the advantages and disadvantages of SDM?
Advantages- Provides clear sense of direction, decisions based on business logic, less potential for bias, flexible process
Disadvantages- Time consuming, expensive, no guarantee of right decision
What is intuition decision making?
The ability to understand something without the need for conscious reasoning
Decisions could be more biased and subjective leading to inappropriate or ill judges outcomes
What are the factors affecting decisions?
Experience of staff deciding on the decision
How new the business is into the market and in general
Time available
Cost/ finance available
Market and competition
What is a decision tree?
Tree model of the various options available in a decision including the probability of different consequences and financial outcomes
Used to help managers make decisions
Uses estimates and probabilities
Helps decide whether the net gain from a decision is worthwhile
