Unit 2- Managers, Leadership and Decision making

Question 1

Autocratic.
-Description of style?

-Key features?

Answer 1

-Managers make all decisions. Communicate top —-: down (one-way).

-Objective setting + staff controlling/monitoring.

Question 2

Benefits of autocratic leadership?

Answer 2

Useful when:

-working with a large number of low-skilled staff.

-when quick decisions are needed.

-improves productivity.

-Decision and direction of the business is kept consistent (not swayed by staff)

Question 3

Drawbacks of an autocratic leadership style?

Answer 3

• demotivated staff = low staff retention
  +
  -High-pressure environment = increased mistakes.

Question 4

Democratic.
-description of style?

Answer 4

• Manager gives employees better involvement in decision making.

-Use of delegation.

Question 5

Benefits of democratic leadership style?

Answer 5

• motivated workforce = commitment to business, satisfaction and quality of work may improve.
• frees up managers’ time to make toucher decisions, that require higher expertise.

Question 6

Drawbacks of democratic leadership style?

Answer 6

-slow decision-making and the need for a consensus may make it harder to take the “best” decisions. = decrease in performance.

Question 7

Laissez-faire leadership style.
-description of style?

Answer 7

-Leader has peripheral role, leaving staff to manage the business.

Question 8

Benefits of laissez-faire leadership style?

Answer 8

-May promote innovation.

-Could bring out the best in talented employees.

-the responsibility could motivate.

Question 9

Drawbacks of laissez-faire leadership style?

Answer 9

-if staff isn’t so competent then = lack of focus and sense of direction.
+
-can encourage laziness = decreased productivity.

-success largely dependent on employees.

Question 10

Paternalistic leadership style.
description of style?

Answer 10

• managers consult employees before making decisions (decisions are normally in the best interest of staff).

Question 11

Benefits of a paternalistic leadership style?

Answer 11

• employees feel involved = which increases motivation and productivity.
  +
• subordinates are more likely to obey the leader, as they understand instructions are in their best interest.
• high staff retention = lowered recruitment cost.

Question 12

Drawbacks of paternalistic leadership style?

Answer 12

• (in the long-term) staff will recognize that the leader is too caring, therefore they might exploit this.

Question 13

Outline two advantages of using a scientific approach to decision-making.

Answer 13

1) Decreased risk and the chance of failure.
2) Easier to get “key players” and shareholders to buy in.

Question 14

Outline three disadvantages of using a scientific approach to decision-making.

Answer 14

1) Slower than “intuitive”.
2) Expensive
3) Is the data: biased or historical? = reduces validity.

Question 15

Outline 3 advantages of using intuition in decision-making.

Answer 15

1) Quick/ time effective.

2) Easier to make judgments off on incomplete data.

3) If an expert is involved, their seasoned knowledge/opinion may be enough, or even better than scientific.

Question 16

Outline 2 disadvantages of using intuition in decision-making.

Answer 16

1) Difficult to “sell” ideas.
2) Very risky = costly.

Question 17

Outline 2 weaknesses of decision trees.

Answer 17

1) The probability for an outcome may be based on past results, but even so they are likely to be guestimates.

2) Doesn’t necessarily reduce risks.

Question 18

Outline 1 strengths of decision trees.

Answer 18

1) Choices are all considered equally, once laid out. Makes manger’s quantify best decisions.

Question 19

What are the 4 key factors that can influence decisions made?

Answer 19

1) Competition + External environment:
- Demographic
- Interest rates

2) Mission + Objectives

3) Resources:
- Finances
- Production capacity
- Staff capability

4) Ethics:
- Changes in laws

Question 20

What are the 6 stakeholders and their interests in the business?

Answer 20

1) Employees - Job security, good working conditions, fair pay.

2) Customers - Good service, value for money.

3) Local communities - Avoidance of pollution + congestion, employment.

4) Suppliers - Regular orders, on-time payment.

5) Shareholders - Capital growth, dividends.

6) Government - Employment, payment of taxes.

Question 21

How to manage relation withs high power/interest, “key players”? (Top right of Stakeholder map).

Answer 21

• Keep happy by involving them in the decision-making process.

Question 22

How to manage relations with low power/interest stakeholders? (Bottom left)

Answer 22

• Simply keep them up to date via newsletters.

Question 23

How to manage relation with high power, low interest stakeholders? (Top left)

Answer 23

• Regularly consulted
• If possible, management should try and increase their levels of interest, to avoid any possible conflicts at a later date.

Question 24

How to manage relations with low power, high interest stakeholders? ( Bottom right)

Answer 24

• Kept informed to enhance the reputation of the business as a considerate company.

Question 25

What are the benefits of moving up the Tannenbaum Schmidt?

Answer 25

1) increased employee motivation
2) innovation
3) improved decision quality
4) talent development

Question 25

What are the benefits of moving up the Tannenbaum Schmidt?

Answer 25

1) increased employee motivation
2) innovation
3) improved decision quality
4) talent development