Unit 2 - Managers, Leadership And Decision Making Flashcards
Leadership
Includes the functions of ruling, guiding and inspiring other people within an organisation in pursuit of agreed objectives
Management
Is planning, organising, directing and controlling all or part of a business enterprise
Programmed decisions are familiar and routine decisions
Non-programmed decisions
Are less structured and require unique solutions
A decision tree
Is a model that represents the likely outcomes for a business of a number of courses of actions on a diagram showing the financial consequences of each
Expected values
Are the financial outcomes from a specific course of action adjusted to allow for the probability of it occurring
Neg gains
Are the expected values of action minus the costs associated with it
Probability
Is the chance of a particular event occurring
Ethics
Are moral principles, which should underpin business decisions and actions
The external environment
Comprises of those external forces (such as changes in competition or consumers incomes) that can influence a business activities
Stakeholders
Are groups or individuals who have an interest in a business
Social responsibility
Is a term describing the duties a business has towards stakeholder groups such as employees, customers and the government
Market conditions
Refer to a number of features of a market, such as level of sales, the rate at which they are changing and the number and strength of competitors
Communications
Is the exchange of information or ideas between two or more parties
Stakeholder engagement
Is a process by which managers involve individuals and groups who may be affected by their decisions in those decisions
Consultation
Is a process is a process by which one group discovers the views of another one
