2.1 management, leadership + decision making

Question 1

define management

Answer 1

planning, organising, directing and controlling all or part of a business enterprise.

Question 2

define leadership

Answer 2

ruling, guiding, and inspiring other people within an organisation in pursuit of agreed objectives.

Question 3

what are the 4 basic functions of management?

Answer 3

1. planning
2. organising
3. directing
4. controlling

Question 4

features of planning

Answer 4

• looking into the future
• setting objectives and targets for the business for their area
• conducting analysis to gather forecasts of key information such as: costs / revenues, incomes, competitors and prices
• drawing up plans for functional areas within the business
  (marketing, finance, HR and operations)
• estimating the likely resource needs for the proposed plan

Question 5

features of organisation

Answer 5

Management must assemble the resources that they need to carry out the actions set out as part of the planning process

Question 6

features of directing

Answer 6

Motivating and communicating with other employees to oversee their behaviour and ensure everyone is working towards the same goals.

Question 7

features of controlling

Answer 7

• setting standards using company’s objectives
• reviewing and reporting performance.
  This enables managers to identify areas of weakness and implement corrective action. Can be done by:
  1. Financial reports - are they on track to make the targeting level of profit?
  2. Employee performance - are the workers productive?
  3. Social performance - how ethical is the business?

Question 8

Mintzberg’s roles of management (1990)

Answer 8

• He set out the 10 roles performed by managers within businesses -> argued that management is not about functions but about what managers do.

Question 9

what is interpersonal management?

Answer 9

involves managing through other people

1. Figurehead
2. Leader
3. Liaison

Question 10

what is informational management?

Answer 10

involves processing information

1. Monitor
2. Disseminator
3. Spokesperson

Question 11

what is decisional management?

Answer 11

uses information to make decisions

1. Entrepreneur
2. Disturbance handler
3. Resource allocator
4. Negotiator

Question 12

what is a Figurehead? (interpersonal)

Answer 12

• represent their colleagues
• considered to have authority
• carry out social, ceremonial and legal responsibilities
• inspiring

Question 13

what is a Leader? (interpersonal)

Answer 13

• creates and maintains an effective working environment
• motivates and develops more junior employees
• manage performance and responsibilities of team members

Question 14

what is a Liaison? (interpersonal)

Answer 14

• communicate with internal and external contacts

- need to network effectively to gather information

Question 15

what is a Monitor? (informational)

Answer 15

• search for internal and external information relevant to the business
• looking for changes in business environment
• always look after their team’s performance and welfare

Question 16

what is a Disseminator? (informational)

Answer 16

• a central communication role

- passing on valuable information to others in the organisation

Question 17

what is a Spokesperson? (informational)

Answer 17

• represent and speak for their organisation

- transmit information about the organisation and its goals to the people outside it

Question 18

what is an Entrepreneur? (decisional)

Answer 18

plans and initiates changes in the business

Question 19

what is a Disturbance Handler? (decisional)

Answer 19

• deals with unexpected crises

- try to control and solve disputes

Question 20

what is a Resource Allocator? (decisional)

Answer 20

• decides the most effective use of an organisation’s resources
• finance, staff and capital equipment

Question 21

what is a Negotiator? (decisional)

Answer 21

• engage in negotiations inside and outside the business

Question 22

what are the 4 different leadership styles?

Answer 22

• Authoritarianism
• Democratic
• Laissez-faire
• Paternalistic

Question 23

features of autocratic:

Answer 23

-> Leader makes decisions without reference to anyone else
-> High degree of dependency on the leader
-> Can create de-motivation and alienation
of staff
-> May be valuable in some types of business where decisions need to be made quickly and decisively
-> Tells you what you are to do

Question 24

features of democratic:

Answer 24

• > May help motivation and involvement
• > Workers feel ownership of the firm and its ideas
• > Improves the sharing of ideas and experiences within the business
• > Can delay decision making
• > Decision making from different perspectives

Question 25

features of laissez-faire:

Answer 25

- > Let it be’ – the leadership responsibilities are shared by all - > Can be very useful in businesses where creative ideas are important - > Can be highly motivational, as people have control over their working life - > Can make coordination and decision making time-consuming and lacking in overall direction - > Relies on good teamwork - > Relies on good interpersonal relations - > Gives workers autonomy (freedom)

Question 26

features of paternalistic:

Answer 26

- > Leader acts as a ‘father figure’ - > Makes decision but may consult - > Believes in the need to support staff - > Dominant figure that decides what's best for employees

Question 27

Leadership style is influenced by:

Answer 27

- > type of labour force - > nature of task and timescale - > personality of leader

Question 28

TRAIT THEORY:

Answer 28

Certain personality traits differentiate a good leader from others.

Question 29

BEHAVIOUR THEORY

Answer 29

- Focuses on how an individual behaves in a managerial role. - Tries to identify the correct way to act instead of personality traits 1. Consideration- wellbeing of workers 2. Initiating structure- defining/ planning work- getting the job done

Question 30

what are the 2 types of managers?

Answer 30

theory: X - average worker is lazy/ dislikes work- workers need to be controlled/ directed- centralised organisation + exercise of authority Y - most people enjoy work, workers will take responsibility + organise themselves, decision making can be delegated

Question 31

Blake Mouton grid (see image)- what are the 5 sectors + x/y axis?

Answer 31

Y axis- concern for people X axis- concern for results/ production 1. country club management 2. team management 3. middle-of-the-road management 4. impoverished management 5. produce or perish management

Question 32

Impoverished management

Answer 32

Laissez-faire style; minimal effort on management; hoping to avoid blame for errors. low concern for people/ results

Question 33

Country club management

Answer 33

focuses on creating safe, comfortable working environment; minimal conflict high concern for people low concern for results

Question 34

produce-or-perish management

Answer 34

autocratic style. workers have to complete task, nothing else. low concern for people high concern for results

Question 35

Team management

Answer 35

staff closely involved in decision making + feel valued | high concern for people + results

Question 36

middle-of-the-road management

Answer 36

compromises made to achieve acceptable performance; thought to be less effective leadership style mid concern for people + results

Question 37

what is productivity?

Answer 37

Measuring how many inputs are needed to create 1 unit of output A business is more productive when they use less inputs to produce 1 unit of output

Question 38

The Tannenbaum-Schmidt Continuum (see graph)

Answer 38

Shows where a manager’s approach to decision making lies. It runs from the manager making decisions and just announcing it to the company Tell- Sell- Consult- Joins

Question 39

+ves and -ves to management styles

Answer 39

Autocratic: Decisions are made quickly and decisively BUT Can create de-motivation and alienation Democratic: May help motivation and involvement BUT Can delay decision making Paternalistic: Believes in the need to support staff BUT Leader may ignore suggestions Laissez Faire: Allows creative freedom BUT Can be time-consuming and lacking in overall direction

Question 40

what is delegation?

Answer 40

Passing decision making responsibility down to junior employees