Unit 2- Managers, leadership and decision making

Question 1

What are the four main functions of management?

Answer 1

Planning
Directing
Organising
Controlling

Question 2

What are the four management styles?

Answer 2

Autocratic leaders
Democratic leaders
Laissez-faire leaders
Paternalistic leaders

Question 3

What are autocratic leaders?

Answer 3

Follow an authoritarian approach

Tell employees what to do and rarely listen to what they have to say

Question 4

What are democratic leaders?

Answer 4

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

Question 5

What are laissez-faire leaders?

Answer 5

Translates to let it be
Employees given the freedom to spend their time how they want
Often when leaders

Question 6

What are paternalistic leaders?

Answer 6

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

Question 7

What is the Tannebaum and Schmidt continuum?

Answer 7

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

Question 8

What are the factors affecting the Tannebaum and Schmidt continuum?

Answer 8

Size of the business
Location or competition
Structure of the business
Experience of manager and staff
Situation itself
Confidence of manager and staff

Question 9

What is McGregor’s theory x and theory y?

Answer 9

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

Question 10

What is the Blake Mouton grid?

Answer 10

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

Question 11

What is an accommodating leader?

Answer 11

Has high concern for people and a low concern for production

Question 12

What is a produce/authoritarian leader?

Answer 12

High concern for production and a low concern for people

Question 13

What is a middle of the road leader?

Answer 13

Has a medium concern for people and production

Question 14

What is a impoverished leader?

Answer 14

Low concern for people and performance

Question 15

What is a team leader?

Answer 15

High concern for people and production

Question 16

What is the Mendelow stakeholder map?

Answer 16

Made in 1991

Measures stakeholder power against stakeholder interest

Question 17

What is necessary for managing relations?

Answer 17

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

Question 18

What is scientific decision making?

Answer 18

A logical and research based approach to decision making

Involves using a systematic process for making decision in an objective

Question 19

What are the steps in the scientific decision making process?

Answer 19

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

Question 20

What are the advantages and disadvantages of SDM?

Answer 20

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

Question 21

What is intuition decision making?

Answer 21

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

Question 22

What are the factors affecting decisions?

Answer 22

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

Question 23

What is a decision tree?

Answer 23

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