Unit 3.2 Flashcards
Management
dealing with or controlling people
Leadership
action of leading a group of people or an organisation, or the ability to do this
Role of Managers
- Setting objectives
- Analysing
- Leading
- Making decisions
- Reviewing
Role of managers - Setting objectives
in order to control and improve the business
Role of managers - Analysing
managers need to analyse data produced to see if the objectives have been effective
Role of managers - Leadership
able to lead and motivate employees to work towards achieving the objectives
Role of managers - Making decisions
need to make lot’s of small decisions to keep the business running efficiently
Role of managers - Reviewing
once strategy to achieve objectives is underway the manager will receive it’s performance review
Leadership Styles - Autocratic
all decisions made by one individual in charge
Pros = Decisions made quickly - good for chain stores etc
Cons = make employees unhappy
Leadership styles - Democratic
involves everyone in the decision making process
Pros = more ideas = better decisions can be made
Cons = Decisions take longer to be made
Leadership Styles - Paternalistic
leader assumes parent - like roll where the workforce is like a big family
Pros = decisions made quickly and high employee satisfaction
Cons = increased costs and wages
Leadership Styles - Laissez - Faire
laid back approach - trusted workers to know what they were doing
Pros = Skilled employees can help make good decisions
Cons = if employees make bad decision then the manager will suffer the consequences
Tenenbaum Schmidt continuum - Tells
manager makes decisions then announces them, to the employees
Tenenbaum Schmidt continuum - Sells
manager makes decisions then ‘sells’ them to the employees
Tenenbaum Schmidt continuum - Consults
- Manager presents IDEA then invites questions
- Manager presents PROBLEM then invites question’s / solutions.
Tenenbaum Schmidt continuum - Shares
Manager sets limits but asks employees to make decisions
Tenenbaum Schmidt continuum - Delegates
Manager allows employees freedom to make decisions
Influences on management and leadership styles
- personal values
- Type of organisation
- Effectiveness of staff
- manager’s experience
Uncertainty
Business unable to predict external shocks such as Tornados - although a business can have a contingency plan for such events
Opportunity cost
Cost of making a decision
Scientific decision making
logical, data driven, evidence based etc
Pros = cannot be disputed and the choice can be justified by evidence
Cons = Doesn’t take into account emotions etc and Reduce creativity in the business
Intuitive decision making
based on hunches and instinct etc
Pros = Takes into account human emotion and decisions can be made quickly
Cons = un-reliable and everyone has different opinions
Entrepreneur
- Be your own boss = get control of work-life ratio etc
- Keep all profit
- Holidays = flexible holiday hours
Flexibility = good working hours and can work from home etc
Job protection = no-one is going to fire you
Decision tree
a business can’t afford to follow every option so may use a decision tree to analyse the probability of a success
Understanding risk - Poor reputation
business provides poor customer service = poor reputation = loss of profits and thus job losses etc
Understanding risk - Weather and natural disasters
can damage businesses e.g. fires etc - may take lot’s of time to repair - Climate change results in more of these events
Understanding risk - Change in tastes and trends
business’s need to keep up with changing trends
Understanding risk - Operational risks
businesses have lot’s of technology etc - these may be run 24/7 - a broken machine results in repair costs and loss of revenue
Stakeholders
anyone who has an interest in the business and is impacted by the way that it trades
Internal Stakeholders
Inside the company
- Owners
- Employee’s
- Manager’s
External stakeholders
Outside the company
- competitors
- Government
- Local community
Mission statement
summary of the purpose of an organisation - used to communicate their visions to stakeholders etc
PESTLE
Political
Economic
Social
Technological
Legal
Environmental
Resource constraints
no infinite resources on this planet - resources can include employees, raw materials, warehouses etc
Manager stakeholder relationships - consultation
development of constructive relationships over the long-term - allows businesses to solve concerns before they become big issues
Stakeholder mapping
visual representation of individuals, groups etc that have an influence on a business - measure the POWER of the stakeholder and their INTEREST
Marketing
anticipation and satisfaction of consumers wants and needs profitability
Marketing objectives
targets set by the marketing department - set the direction of the business and ensure the consumers have a good experience
Sales Volume
no. of products sold
Sales Size
revenue generated from selling products
Market mapping
process of finding variables which differentiate brands in a market and then plot them on a map.
- used to identify a gap in the market etc
Positioning
how their products are perceived relative to their competitors e.g. the Daily mail and the Daily telegraph are both daily newspapers but are perceived very differently by readers in terms of what they offer
Risk
when you CAN predict an outcome in the future
Uncertainty
when you CANNOT predict the chance of an outcome in the future
Examples of Secondary research
Trade publications - cater to specialist markets - helps business’s stay in touch with changes within the market
Market reports - Buying reports on an industry - can cost up to £3000 - e.g. ‘Mintel’ has a global team of trend analysts
Internet sources - research competitors websites etc
