Unit 6 - principals of management

Question 1

What is the difference between leaders and managers?

Answer 1

The main difference between leaders and managers is that leaders have people follow them while managers have people who work for them. A successful business owner needs to be both a strong leader and manager to get their team on board to follow them towards their vision of success.

Question 2

What is meant by “management by objectives”?

Answer 2

Management by Objectives (MBO) is a business term for a system of agreeing objectives so that everyone moves forward in a consistent manner

Question 3

Explain situational and contingency leadership models.

Answer 3

Situational or contingency leadership models are based on the idea that the leader’s actions should vary according to the circumstances he or she is facing - in other words leadership methods change according to the situation in which the leader is leading.

Question 4

What does functional management mean?

Answer 4

Functional management is a structural approach based on the different management specialisms within a business.​

Question 5

Why was the action centered leadership model developed? and identify the 3 core responsibilities.

Answer 5

The Action Centered leadership model was developed by John Adair to show the three core responsibilities for effective team leadership and management.​ The 3 core responsibilities are:

1. Achieving the task​
2. Managing and developing the team ​
3. Managing and developing individuals

Question 6

Define transformational leader.

Answer 6

Transformational leadership, focuses on the needs of others, rather than the needs of the leader. Its a leadership style that can inspire positive changes in those who follow.

Question 7

Define transactional leader.

Answer 7

This type of leader is focused on the supervision of employees, the aims of the business and the performance of the team.

Question 8

Functions of management: Planning

Answer 8

At the heart of planning, is the aim of achieving the objectives of the organization. Therefore, it is crucial for the manager to establish the organizations strategic objectives and then plan to achieve them.
When planning, it is common for managers to have alternatives should any sudden factors present themselves in the future, so they are able to adapt efficiently.

Question 9

Functions of management: Organising

Answer 9

The core purpose of organising is to ensure the right people, are in the right place, at the right time, with the right resources, to execute their job and achieve the organisations objectives.​

Question 10

Functions of management: Co-ordinating

Answer 10

The co-ordinating stage is focused on managing the people of the business rather than specific tasks. Their job is establishing a relationship between employees.

Question 11

Functions of management: Controlling

Answer 11

Controlling is the process of evaluating the execution of the plan and making adjustments to ensure that the organisational goal is achieved. During the controlling stage, managers perform tasks such as training employees as necessary and managing deadlines.

Question 12

Functions of management: Monitoring

Answer 12

Every plan requires monitoring to review its effectiveness and progress towards meeting objectives within the timeframe, just as you and your teacher monitor your progress to ensure you meet your deadlines. Managers would need to monitor the effectiveness of teams, evaluate what is working well and where gaps or weaknesses appear.

Question 13

Functions of management: Delegating

Answer 13

A key part of a managers role is to delegate. All managers will have tasks and elements of the job they must do themselves, for which they are given full responsibility, but it is also their job to delegate some tasks to their substitutes.

Question 14

Functions of leadership: Inspiring

Answer 14

If a leader is able to effectively inspire employees, they are generally far more productive and committed to their role. Ultimately, helping the business to achieve its objectives.

Question 15

Functions of leadership: Energising

Answer 15

Closely linked to inspiring employees, is a leaders ability to energise their team.

Question 16

Functions of leadership: Influencing stakeholders

Answer 16

Every business has a variety of stakeholders and being able to influence stakeholders is a key leadership function. Influencing stakeholders is important because you can recognize whether their needs and wants have been met and it can affect the success or failure of an initiative.

Question 17

Functions of leadership: Envisioning

Answer 17

Future planning and business development is all part of the leadership functions of envisioning. Within which, the leader would look at the failure of the business on both a short and long term basis to predict what the potential outcomes of the businesses are. To effectively envision the outcomes of the businesses plans, leaders will typically require current info and historic data such as sales trends and financial forecasts etc.

Question 18

Functions of leadership: Determining best path/route to achieve success

Answer 18

Once the leader has analysed and envisioned the future outcomes of the businesses plans, they would then determine the best path or route to achieve success. The leader would look forward using their experience and knowledge of the business and its related market to produce and develop plans for the business to progress in the future and efficiently achieve the organisations objectives.​

Question 19

Definition of business culture

Answer 19

Business culture is the collective beliefs, values and attitudes which the business associates itself with.

Question 20

Business vision:

Answer 20

Typically expressed in a vision statement, it encompasses the intent of the business, which in turn helps to develop the formal aims and objectives. ​

Question 21

Business mission:

Answer 21

Typically expressed in a mission statement, it defines the reasons why the business exists, who its target audience is, the types of products its sells and what it aims to achieve over time.​

Question 22

Business values/ethos:

Answer 22

Expresses the essence of the business’ identity, principles and beliefs. Which in turn, supports the vision, shapes the culture, guides employee behaviors and educates stakeholders to understand the identity and purpose of the business. ​

Question 23

Autocratic management style

Answer 23

• One person makes all the decisions.
• Employee morale is typically low.
• More effective in the short term.
• Does not consider employees views.
• Effective for quick decision making.

Question 24

Democratic management style

Answer 24

• Employees opinions are valued and taken on board when making decisions.
• Typically increases employee morale and performance.
• Often takes longer to make a decision due to the consideration of many viewpoints.
• Manager still has the final say.

Question 25

Paternalistic management style

Answer 25

• Manager acts like the head of the family.
• Employee morale is typically high.
• High levels of trust and loyalty expected.
• Manager listens but has the final say.
• Employees are treated like a family member.

Question 26

Laissez-faire management style

Answer 26

• Provides employees with high levels of freedom and authority.
• More effective for employees who are vastly experienced and capable in their role.

Question 27

Transactional management style

Answer 27

• Does not strive for a cultural change.

- Employees are expected to follow the command of the manager without question.