Unit 2- Understanding Management, Leadership And Decision Making Flashcards
Management
Planning, organising, directing and controlling all or part of a business enterprise
Authority
The power or ability to carry through an action
Delegation
Passing authority down the organisational hierarchy. This is only genuine if the manager relinquishes some control to the subordinate
Empowerment
Provides subordinates with the means to exercise power or control over their working lives
Decentralisation
Passes authority from the centre of an organisation to those working elsewhere in the business
Autocratic leadership/Authoritarian leadership
Information and decision making are best kept at the top of the organisation.
Downward communication only
Minimal delegation or decentralisation
Close supervision of employees
Democratic/participative leadership
Operating a business according to the decisions agreed by a majority
Leader delegates a deal and encourages decentralisation
Leader and subordinates discuss issues
Leader acts on advice and explains the reasons for decisions
Subordinates are empowered and have greater control over their lives
Laissez-faire leadership
The leader has minimum input into the operation of the business
Manager is one among a number of equals in terms of experience and qualifications
Self motivated workforce
Workforce understand and agrees with organisations objectives
Programmed decisions
Familiar and routine decisions
Non-programmed decisions
Less structured decisions that require unique solutions
Risk
Chance of incurring misfortune or loss
Uncertainty
A situation with lack of knowledge and event, outcomes or consequences are unpredictable
Opportunity cost
The next best alternative forgone
Decision tree
A model that represents the likely outcomes for a business of a number of courses of action on a diagram showing financial consequences of each
Scientific decision making
Based on data and uses a logical, rational approach to decision making
Probability
Chance of a particular event occurring
Expected values
Financial outcomes from a specific course of action, adjusted to allow for the probability of it occurring
Net gains
The expected values of a course of action minus the costs associated with it
Ethics
Moral principles, which should underpin business decisions and actions
The external environment
Compromises those external forces that can influence a businesses activities
Stakeholders
Groups or individuals who have an interest in a business
Social responsibility
Describes the duty a business has towards takeover groups such as employees, customers and the government
Market conditions
A number of features of a market such as the level of sales, the rate at which they are changing and the number and strength of competitors
Communication
The exchange of information or ideas between two or more parties
Stakeholder engagement
A process by which managers involve individuals or groups who may be affected by their decisions in those decisions
Consultation
A process by which one groups discovers the views of another one
Leadership
Includes functions of ruling, guiding and inspiring other people with organisation in pursuit of agreed objectives
Country club leadership
(1,9)
Main focus on people
Relaxed environment
Work will suffer due to lack of control
Impoverished leadership style
(1,1)
Little concern for task or people
Ineffective style
Middle-of-the-road leadership style
(5,5)
Some focus on task and some on people
Compromise between the two
Result in average performance
Produce or perish leadership style
(9,1)
Places emphasis on the task
Likely to be authoritarian leadership
Team leadership style
(9,9)
High focus on both task and people
Employees involved in the task and want to get it done
