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Unit 2 - Managers, Leadership And Decision Making Flashcards

1
Q

What are the 4 main styles of leadership?

A

. Autocratic
. Democratic
. Paternalistic
. Laissez-faire

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2
Q

What is autocratic leadership

A

One ruler with absolute power that has all the authority, makes all the decisions.
It’s management centred leadership.

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3
Q

What are some advantages of autocratic leadership

A

. Quick decisions
. Satisfies managers wants
. Efficient
. More likely to meet businesses aims and objectives

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4
Q

What are some disadvantages of autocratic leadership

A

. Demotivating for employees - could lead to lower productivity and lower retention rates
. Could lead to negative reputation

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5
Q

What is paternalistic leadership

A

Employees are consulted but the power remains with leaders and management and decisions are made for subordinates.

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6
Q

What are some advantages of paternalistic leadership

A

. Can create more loyalty to the business than an autocratic leadership style as employee welfare is taken into account.
. As there is no employee involvement decisions can be made more quickly.
. The business also takes into account the employees best interests which can make the employees feel more recognised by the business, further increasing their loyalty to the business.

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7
Q

What are some disadvantages of paternalistic leadership

A

. There is no employee involvement in decision making which can lead to dissatisfaction in employees if bad decisions are made.
. There is low motivation amongst staff as they are still being ordered around strictly and don’t have much creativity.
. Employees are too dependant on supervisors which can cause the business to be slower as they can’t be independent .

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8
Q

What is democratic leadership

A

The power is held within subordinates and everyone has a say in decisions. Leaders delegate and consult about views before making decisions.

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9
Q

What are advantages of democratic leadership

A

. Subordinates are involved in decisions so they are more motivated and productive
. Input from loads of people with all different knowledge and skills

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10
Q

What are some disadvantages of democratic leadership.

A

. The process is slower as more consultation and discussion is needed to make decisions
. May be disagreements
. Workers may not be skilled in decision making

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11
Q

What is laissez-faire leadership

A

Giving the team the team full power and freedom as the managers use a hands off approach and have minimal input in decision making.

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12
Q

What are advantages of laissez-faire leadership

A

. Motivates employees and creates a relaxed work environment
. Subordinates are accountable for their work
. Leaders can prioritise other things
. Employees feel they can try new things which can lead to knew ideas

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13
Q

What are some disadvantages of laissez-faire leadership

A

. Lacks structure and support
. Won’t be affective if workers aren’t motivated or focused
. Employees loose role awareness

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14
Q

What are positives of scientific decision making

A

. Remove possible bias
. Based on factual research
. Actions can be reviewed
. Clear and sets SMART objectives
. Based on logic

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15
Q

What are negatives of scientific decision making

A

. Can be slow
. Lacks creativity
. Doesn’t lead to innovative approaches
. Can be costly
. Could produce flawed and unreliable data

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16
Q

What does decision making based off intuition involve

A

. Hunch and gut feeling
. Brainstorming
. Qualitative data

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17
Q

What are positives of intuition based decision making

A

. Cheaper
. Saves time
. Managers can use expertise

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18
Q

What are negatives of intuition based decision making

A

. No hard evidence used
. Could be bias
. Lack of skills from managers
. Could lead to mistakes

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19
Q

What is the Tannenbaum and Schmitt continuem

A

It’s a continuum that demonstrates the relationship between the level of freedom that a manager chooses to give a team, and the level of authority used by the manager.

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20
Q

What are conflicting stakeholder needs between employees and managers

A

Employees want job security, high wages, bonuses and promotions but this will increase costs

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21
Q

What are conflicting stakeholder needs between customers and stakeholders

A

Customers want high quality and low prices and shareholders want high profit and dividends

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22
Q

What is a win lose situation with stakeholders

A

When a company choses something that benefits one stakeholder and not another.
Opportunity cost
They can’t meet all stakeholder needs

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23
Q

Define stakeholder, list examples.

A

Any individual, shareholder or other institution with an interest in the business and it’s activities and performance
. Customers
. Manager’s
. Competitors
. Employees
. Shareholders
. Pressure groups
. Local communities
. Government
. Bankers
. Investors

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24
Q

What are internal stakeholders

A

e.g business owners, shareholders, employees, managers, trade union representatives. These and connected to the are closely Linked business/organisations.

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25
What are external stakeholder
e.g. Customers, competitors, suppliers, government. agencies, pressure groups, investors, bankers, creditors and local community. people that operate outside of the internal affairs of the business but still experience risk based on the business's performance.
26
What are primary stakeholders
Those directly involved/ affected, have the power to influence decisions and are internal or external. E.g. employees, customers, suppliers, shareholders
27
Outline some internal stakeholders and their needs
SHAREHOLDERS . profits to allow ↑ dividends, growth + positive corporate image . high Share price rises EMPLOYEES . Job Security . Good working conditions . High pay reset . Aware of changes MANAGERS . high status and pay and bonuses . Job Security TRADE UNIONS . to be aware take part in decisions to ensure they benefit their members.
28
Outline some external stakeholders and their needs
CUSTOMERS . high quality, good service, choice SUPPLIERS . Regular ordes, fais prices, payment on time advance notification on orders BANKS AND INVESTORS . prompt + full loan repayment. LOCAL COMMUNITY . employment opportunities, socially responsible actions (pollution) PRESSURE GROUPS . activities with neutral benefits
29
What is a decision tree
A decision tree is a mathematical model used to help managers make decisions. It estimates outcomes based on probability. Helps decide what the best decision is based off which has the best net gain. Pictorial approach to display so easy to view. Helps to quantify decision making.
30
Define expected value
The adjusted outcome f om a specific action adjusted to allow for the probability of it occurring
31
Define net gains
The expected value of an action minus the cost associated with it
32
Define net gains
The expected value of an action minus the cost associated with it
33
What are advantages of using decision trees
✓ useful for operational decision making. ✓ enables effective use of bach data ✓ use of probability allows flexibility ✓ encourages clear thinking and planning ✓ Scientific / objective analysis to decision making.
34
What are the disadvantages of using decision trees
* reliant on accuracy of data used * requires qualitative input to give complete picture * probabilities only estimated * real time data problems
35
Why is stakeholder mapping important and what model is used to do it
Because companies have lots of stakeholders and needs to prioritise which to give the most attention to. They use the MENDELOWS POWER INTEREST MATRIX MODEL. Which considers the power stakeholders have and there level of interest of a unit grid [-[-] with power on one side and level of interest on the other
36
What is the purpose of stakeholder mapping
• Helps the business to understand what stakeholders to involve in a decision • Failing to involve stakeholders can lead to disagreements and they may become a negative influence • don't want to waste time and money consulting the wrong stakeholders
37
What are some problems with stakeholder mapping
• Power and interest can change • Not always obvious - depends on context • The stakeholders have different interests
38
Why are low unit costs important?
Low unit costs are vital for a business as they directly impact profitability, competitiveness, and resource allocation
39
Define capacity
measures the existing resources. maximum it can be produced given its
40
How do you increase capacity: short term or long term.
increase capacity by: (long term) • bigger premises. • more machinery. • move staff •improve quality of the resources • better trained staff •move efficient machinery. increasing capacity Short term? •Outsourcing • Overtime • Temporary staff
41
What is the main difference between a manager and a leader?
Managers organise and control resources; leaders inspire and motivate others.
42
Name the four leadership styles.
Autocratic, Democratic, Paternalistic, and Laissez-faire.
43
Describe autocratic leadership.
Leader makes decisions alone with little input from others.
44
Describe democratic leadership.
Leader involves team members in decision-making.
45
What is paternalistic leadership?
Leader makes decisions in the best interest of employees, like a parent figure.
46
What is laissez-faire leadership?
Leader offers minimal direction, allowing team members to make decisions.
47
What does the Tannenbaum Schmidt Continuum show?
The relationship between the level of freedom a manager gives to employees and the level of authority retained.
48
What is scientific decision-making?
A logical, data-based approach to making decisions.
49
What is intuitive decision-making?
Decisions made based on instinct or gut feeling.
50
Name three influences on decision-making.
Risk, reward, uncertainty.
51
What are stakeholders?
Individuals or groups affected by or affecting a business.
52
Name three internal stakeholders.
Employees, managers, owners.
53
Name three external stakeholders.
Customers, suppliers, government.
54
What is stakeholder mapping?
A model to assess stakeholder power and interest to help prioritise management focus.
55
What does high power/high interest mean on a stakeholder map?
Stakeholders who must be managed closely.
56
What is opportunity cost in decision making?
The value of the next best alternative foregone.
57
Give an advantage of scientific decision-making.
Based on data, reducing the risk of bias.
58
Give a disadvantage of scientific decision-making.
Time-consuming and may ignore human elements.
59
Give an advantage of intuitive decision-making.
Faster and relies on experience.
60
Give a disadvantage of intuitive decision-making.
Can be risky and biased.
61
What is the role of a manager?
Planning, organising, directing, and controlling resources.
62
What is decision-making based on data called?
Evidence-based or scientific decision-making.
63
How can managers reduce resistance to decisions?
Involving stakeholders and good communication.
64
What does 'consult' mean in leadership?
Involving others in the decision-making process.
65
What is meant by the term 'authority'?
The right to make decisions and give orders.
66
How can leadership style affect employee motivation?
Autocratic may reduce morale, while democratic may improve it.
67
What leadership style is best in a crisis?
Autocratic as fast decision-making is often necessary.

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