3.2 - Management And Decision Making.

Question 1

Managers roles?

Answer 1

Set obj, analyse and interpret data, make decisions, review there decisions effectiveness, appraise employees strengths and weaknesses, lead their staff.

Question 2

Authotarian style.

Answer 2

Leader makes decisions on their own.

Question 3

Paternalistic style

Answer 3

Leader consults workers before making decisions, then explains them to persuade them the decisions in their interest.

Question 4

Democratic style.

Answer 4

Leader encourages workforce to participate in dm. Leaders discuss issues with workers, delegate responsibility and listen to advice.

Question 5

Laissez faire

Answer 5

Leaders offer support, rarely interfere with the running of the business. Hands off.

Question 6

Tannenbaum and Schmidt Continuum- authority by manager/team participation.

Answer 6

Tells, Sells, Suggests, Consults, Joins, Delegates, Abdicates

Question 7

Blake Mouton Grid (Concern for ppl/ concern for production)

Answer 7

Country club, Impoverished, Produce or perish, Team leader and middle of road

Question 8

Scientific decision making

Answer 8

Based on data, and outcomes are compared to initial obj.

Question 9

Intuitive decision making

Answer 9

Making decisions based on a hunch or gut instinct.

Question 10

Risks

Answer 10

All business have to take some form of risk.

Question 11

Reward

Answer 11

Financial eg higher sales or non financial ie high productivity

Question 12

Uncertainty

Answer 12

No one knows what the outcome of a decision will be.

Question 13

Opportunity cost

Answer 13

Benefit that’s given up in order to do something else. The cost of the choice that’s made.

Question 14

Scientific dm (six step)

Answer 14

1 set objectives 2 collect data 3 analyse data 4 make decision 5 implement decision 6 review decision

Question 15

Decision trees

Answer 15

get practice exam q’s

Question 16

Shareholders want?

Answer 16

High dividends and a high share price

Question 17

Employees want?

Answer 17

Job security, promotion prospects, decent wage, safe working conditions.

Question 18

Managers want?

Answer 18

Credit for decisions, job security and decent wage

Question 19

Customers want?

Answer 19

High quality products at low prices

Question 20

Suppliers want?

Answer 20

Paid a fair price, be paid on time.

Question 21

Community want?

Answer 21

Local employment, sponsors local activities but will not want pollution, noise or cut jobs.

Question 22

Stakeholder map (power/interest)

Answer 22

Monitor, keep informed, manage closely, keep satisfied.