unit 2 managers leadership and decision making Flashcards
whats the difference between leadership and management
leaders set the direction and strategy for the business and managers are those who organise the workforce and control the functions of a business
what are the four leadership styles
autocratic or authoritarian
paternalistic
democratic
laissez faire
what does autocratic and authoritarian leadership style mean
makes decisions without consulting staff
what does paternalistic leadership style mean
gives attention to the social needs and views of their workers
what is a democratic leader ship style
when they involve staff in decision making
what does laissez faire mean
hands off
lets staff make decisions
the tannerbaum-schmidt continuum tell
managers make decision and tell the staff about it
the tannerbaum-schmidt continuum sell
manager sells decisions to staff
the tannerbaum-schmidt continuum consult
manager presents problems and gets feedback and makes the decision
the tannerbaum-schmidt continuum join
manager aske groups to make decisions within set limits
what is a charismatic leader
when the leader feels they can do nothing wrong
what is a beaurocratic leader
when the manager does everything by the rules
what three things change the style of leadership
the individual
the nature of the industry
the business culture
what is the scientific decision making
decision making that is based on data and uses a logical and rational approach
what analytical tools do people use for scientific decision making
the boston matrix
the product life cycle
investment appraisal
ratio analysis
décision trees
what is the opportunity cost
the cost of the next best alternative foregone
what is intuition decision making
managers dont use data to inform their decisions they use gut instinct instead
advantages of intuition decision making
can be accurite because of experience
made quickly
disadvantage of intuition decision making
mistakes can be made from lack of experience
can be made for illogical reasons
factors influencing intuition decision making
if data is not accessable
experience of managers
may be suitable for businesses willing to accept a higher level of risk
advantages of scientific decision making
provides a clear sence of direction
decisions are accurite
disadvantages of scientific decision making
they take a longer time to do
using out of date or poor data
experiences staff may be dismissed
factors influencing scientific decision making
managers experience
risk business is willing to take
reliability of data
what is a stakeholder
A stakeholder is someone or an organisation affected by a business’ activities or decisions
3 internal and 5 external steakholders
employees, managers, shareholders
suppliers, banks, government, local communities and customers
what are the consequences of the steak holders disagreeing
can make a petition and disrupt business activities.
businesses can manage their relationship with stakeholders using
communication and consultation.
what is the stakeholder map
A stakeholder map can be used to display the relative power and interest of different stakeholder groups.
Stakeholders with high power and high interest will need to be
managed closely and consultation may be appropriate for these individuals and groups.
Stakeholders with high power and low interest will need to be
kept satisfied as they have the power to influence the business if they become dissatisfied.
Stakeholders with low power and low interest will need to be
monitored though they lack influence and interest in many business decisions.
Stakeholders with low power and high interest need to be
kept informed and consultation may be appropriate.
