Glossary Unit 2

Question 1

Autocratic leadership

Answer 1

Imposing decisions on a group with little or no prior discussion and limited individual choice allowed. There is strict control as advocated by Taylor and typically just top-down communication.

Question 2

Consultation

Answer 2

a process in which one person or group discovers the views of another. After asking for their views the original strategy may be amended.

Question 3

Country club Leadership

Answer 3

the manager is most concerned about their team members’ needs and feelings assuming that, as long as they are happy and secure, they will work hard. What tends to be the result is a work environment that is very relaxed and fun, but where productivity suffers because there is a lack of direction and control.

Question 4

Decision trees

Answer 4

a diagram showing options available and the probabilities of various possible outcomes resulting from these decisions.

Question 5

Democratic Leadership

Answer 5

allowing group discussion to influence the final decision. Leaders mix informally with the subordinates and are known personally.

Question 6

Expected value

Answer 6

the most likely financial outcome from a specific strategy adjusted to take into account the different probabilities of success and a failure.
Expected value = Outcome 1 X probability of outcome 1 occurring + Outcome 2 X probability of outcome 2 occurring

Question 7

Impoverished Leadership

Answer 7

With a low regard for creating systems that get the job
done, and with little interest in creating a satisfying or motivating team environment. The manager’s results are inevitably disorganization, dissatisfaction and disharmony.

Question 8

Intuition

Answer 8

The use of a hunch or gut feeling to make decisions.

Question 9

Laissez-faire Leadership

Answer 9

The leader has minimal input, delegating heavily leaving staff to make necessary decisions

Question 10

Leadership

Answer 10

People who others naturally follow through inspiration and trust. Leaders may not necessarily be managers who have people who work for them, but the best managers are also leaders

Question 11

Management

Answer 11

the process of controlling people and getting things do via planning, organising controlling and directing.

Question 12

Manager-centred leadership

Answer 12

one end of the Tannenbaum Schmidt continuum in which the manager makes decisions and announces it without consultation.

Question 13

Middle-of-the-road Leadership

Answer 13

The manager tries to balance results and people, but this strategy is not as effective as it may sound. Through continual compromise,
they fail to inspire high performance and also fails to meet people’s needs fully. The result is
likely to be mediocre performance.

Question 14

Net Gain

Answer 14

the expected benefit from a course of action, after all the costs have been paid. It is used in decision tree analysis to work out the likely benefit of the action.

Question 15

Opportunity costs

Answer 15

The cost of the foregone alternative. The next best thing, that is given up when a course of action is undertaken.

Question 16

Probability

Answer 16

the chance of something happening as a fraction or percentage.

Question 17

Produce / perish Leadership

Answer 17

Managers who believe that their team’s needs are always secondary to its productivity. This type of manager is autocratic, has strict work rules, policies and procedures, and can view punishment as an effective way of motivating team members. This approach can drive impressive production
results at first, but low team morale and motivation will ultimately affect people’s performance, and this type of leader will struggle to retain high performers.

Question 18

Resource constraints

Answer 18

The limitations of quantity or quality of labour, materials, time and information and these limits make decision-making harder.

Question 19

Risk

Answer 19

the possibility of loss on an investment or a return that is less than expected.

Question 20

Scientific decision making

Answer 20

attempt to make logical decision based on data analysis.

Question 21

Stakeholder

Answer 21

any individual or group that is affected by any business decision. E.g. customers, workers, shareholders, local residents, creditors.

Question 22

Stakeholder engagement

Answer 22

Involving anyone who has an interest in the business’ decisions via consultation, negotiation or communication

Question 23

Stakeholder power

Answer 23

the level of influence that a stakeholder group has e.g. a pension company with a large shareholding can be an influential stakeholder voice.

Question 24

Stakeholder mapping

Answer 24

Plotting the level of interest and power that stakeholder shave on a grid. This enables the managers to decide how much to involve and react to various different stakeholders groups.

Question 25

Subordinate-centred Leadership

Answer 25

When managers give subordinates great freedom to operate. It is one end of the Tannenbaum-Schmidt Continuum.

Question 26

Team styled leadership

Answer 26

a leader who is passionate about his work and who does
the best he can for the people he works with. Team managers commit to their organization’s goals and mission, motivate the people who report to them, and work hard to get people to stretch themselves to deliver great results. But, at the same time, they’re inspiring figures who look after their teams. Someone led by a Team manager feels respected and empowered, and is committed to achieving their set goals.