3.2 - Management And Decision Making. Flashcards
Managers roles?
Set obj, analyse and interpret data, make decisions, review there decisions effectiveness, appraise employees strengths and weaknesses, lead their staff.
Authotarian style.
Leader makes decisions on their own.
Paternalistic style
Leader consults workers before making decisions, then explains them to persuade them the decisions in their interest.
Democratic style.
Leader encourages workforce to participate in dm. Leaders discuss issues with workers, delegate responsibility and listen to advice.
Laissez faire
Leaders offer support, rarely interfere with the running of the business. Hands off.
Tannenbaum and Schmidt Continuum- authority by manager/team participation.
Tells, Sells, Suggests, Consults, Joins, Delegates, Abdicates
Blake Mouton Grid (Concern for ppl/ concern for production)
Country club, Impoverished, Produce or perish, Team leader and middle of road
Scientific decision making
Based on data, and outcomes are compared to initial obj.
Intuitive decision making
Making decisions based on a hunch or gut instinct.
Risks
All business have to take some form of risk.
Reward
Financial eg higher sales or non financial ie high productivity
Uncertainty
No one knows what the outcome of a decision will be.
Opportunity cost
Benefit that’s given up in order to do something else. The cost of the choice that’s made.
Scientific dm (six step)
1 set objectives 2 collect data 3 analyse data 4 make decision 5 implement decision 6 review decision
Decision trees
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