Unit 2- managers, leadership and decision marking Flashcards
what is leadership?
ruling, guiding and inspiring people within an organisation in pursuit of agreed objectives.
what is management?
planning, organising, directing and controlling all and all parts of a business entreprise
what do managers do? (the art of getting things done through other people)
-setting objectives
-organisation
-motivation and communication
-measure
-develop people
what are the 4 leadership types?
-autocratic
-democratic
-laissez-faire
-paternalistic
what happens in the tell section of the tannenbaum and schmidt model and what type of leadership style uses it?
-typically for autocratic leadership style
-they will tell employees their idea and won’t allow them to have an opinion or make a decision.
what happens in the sell section of the tannenbaum and schmidt model and what type of leadership style uses it?
-used by autocratic leaders.
-the manager will ‘sell’ their decision
what happens in the consult section of the tannenbaum and schmidt model and what type of leadership style uses it?
-used by democratic leaders
-they will share their ideas and allow employees to share their ideas
what happens in the share section of the tannenbaum and schmidt model and what type of leadership style uses it?
-used by paternalistic or laissez-faire leaders
-employees can make their own decisions with previously set limits made by the manager.
what does the Blake mouton grid represent?
the concern for production and the concern for people
what is authority?
the power or ability to carry through an action
what is delegation?
the passing of authority down the organisational structure
what is empowerment?
a series of actions designed to give employees greater control over their working life
what is decentralisation?
passing of authority from the centre of an organisation to those working elsewhere in the business
adv of a democratic leadership style
commitment to business, satisfaction and quality of work may all improve
dis of a democratic leadership style
slow decision making, need for consensus may make it hard to take ‘best’ decisions
adv of an autocratic leadership style
decisions and directions will be consistent, may project image of a confident and well managed business
dis of an autocratic leadership style
lack of info so subordinates are highly dependent on leaders; supervision needed
adv of a laissez-faire leadership style
may bring the best out of professional or creative groups, freedom
dis of a laissez-faire leadership style
may not be deliberate, but bad management. Staff lack focus and sense of direction. Much dissatisfaction
what is opportunity cost?
the cost of the next best alternative that will be missed by making a particular decision
what is the decision making progress?
-setting objectives
-gathering and interpreting info
-selecting the chosen option
- implementing the decision
-reviewing
what are the types of decisions?
-programmed (familiar and routined)
-non-programmed (less structured, unique)
-tactical (short term)
-strategic (long term)
what is a risk?
the chance of incurring misfortune or loss
what is uncertainty in regards to making a decision?
a situation in which there is a lack of knowledge and events, outcomes or consequences are unpredictable
what is scientific decision making?
it’s decisions based on data and uses a logical, rational approach to decision making
what is decision making based on intuition or hunch?
it’s where managers have to rely on their instinct as to whether or not to make a decision
what does the scientific decision making process involve?
-recognising that there is a problem or an opportunity
-setting objectives
-setting decision criteria
-developing and identifying alternatives
-comparing alternatives by analysing data
-choosing and implementing the course of action
-reviewing the effectiveness of the decision
when may using intuition be appropriate?
-when a quick decision is necessary, no time to gather data
-not enough data available
-when the data tells a contradictory story
expected value formula
(probability1 x outcome1) + (probability2 x outcome2) + …
what are expected values?
the financial outcomes from a specific course of action adjusted to allow for the probability of it occurring
what are net gains?
the expected values of a course of action MINUS the costs associated with it
what are programmed decisions?
decisions that deal with problems that are familiar and where the info required to make them is easy to define and obtain
what are non-programmed decisions?
decisions that deal with situations that are unstructured and require a unique solution
what are the influences on decision making?
-the business’s mission and objectives
-ethics
-the level of risk involved
-the external environment
-resource constraints
what are ethics?
the moral principles which should underpin business decisions and actions
what are some internal factors that influence the relationship with stakeholders?
-business objectives
-management and leadership styles
-size and ownership of the business
what are some external factors that influence the relationship with stakeholders?
-market conditions
-the power of stakeholder groups
-government policies
how can you manage your relationship with stakeholders?
-improve communication
-stakeholder engagement
stakeholder mapping
-partnership
-participation
-consultation
-‘push’ communications
-‘pull’ communications
what is stakeholder engagement?
managers involve individuals and groups who may be affected by their decisions
