Managers , Leadership and decision making

Question 1

What do Managers do

Answer 1

Set objectives - sets goals for a group and decide what work needs to be done
Organise
Motivate and communicate - create a team of people who work together
Analyse targets and measure performance
Develop people and review

Question 2

Logic chain : how managers make decision

Answer 2

Set objectives - analyse situation - assess resources available - make a clear decision - review

Question 3

Autocratic leaders

Answer 3

Make decision without consulting others. use one way top down communication and give orders

Question 4

Democratic leaders

Answer 4

Make final decision but delegates and consult with others listening to feedback

Question 5

Laissez faire

Answer 5

Allow team members freedom if they do their work and meet deadlines

Question 6

Paternalistic leaders

Answer 6

Think of the security and best for staff . believes that employees need direction and acts like a father

Question 7

5 leadership Styles on Blake Mouton grid

Answer 7

9,9 - Team management
9,1 - Authority
5,5 - Middle of the road
1,9 - country club
1,1 - Impoverished management

Question 8

Team management

Answer 8

Focuses on both task and people . most effective with an emphasis on empowerment, trust, team work.

Question 9

Authority

Answer 9

leadership is autocratic , clear emphasis on task and not people . may increase production and effective in short term but in long term , good employees will likely to leave

Question 10

Middle of the road

Answer 10

Compromise here , with some focus on people and some on task , likely to lead to average performance

Question 11

Country club

Answer 11

emphasis is on people with little concern for task . lack of urgency with poor productivity . Hamper production as it relies on workers being motivated

Question 12

Impoverished management

Answer 12

no concern for people or task therefore no interest in the business altogether

Question 13

what does the Tannabeum Schmidt continuum show

Answer 13

relationship between level of freedom in decision making that a manager gives to a team of workers and authority retained by manager . As workers freedom increases , managers authority decreases

Question 14

4 sections of the continuum

Answer 14

Tells , sell , consult and delegate

Question 15

Tells

Answer 15

Manager makes & announces decision

Question 16

Sell

Answer 16

Manager sells decision
Manager presents ideas and invite questions

Question 17

Consult

Answer 17

Manager presents decision subject to change

manager presents problem, gets suggestions and then decides

Question 18

Delegates

Answer 18

Manager defines limits , then ask group for a decision

Manager permits subordinates to decide within defined limits

Question 19

Strength of Blakes grid

Answer 19

the grid measures two factors : concern for people & task but continuum only measures one : leaders use of people
labels used like country club and 9,1 made it easy for managers to visualise the type of person implied by a 9,1 category
Understanding that some leaders are driven solely by results is perhaps why blake is more widely used

Question 20

Strength of continuum

Answer 20

focus on boss use of his people gives an interesting amount of detail between the range of extreme approaches ( autocratic vs democratic)
gave bosses a measure by which they could judge their own approaches , helping them understand that “tell” is an extreme approach

Question 21

Features, communication, and uses of a democratic leader

Answer 21

Encourages participation and delegation

extensive two-way communication from subordinates
Useful when complex decisions are made requiring range of specialist skills

Question 22

Features, communication, and uses of autocratic leader

Answer 22

Sets objectives and allocates task , retain control
one way communication downwards
useful when quick decision are required

Question 23

Features, communication, and uses of a laissez-faire leader

Answer 23

evades duties of management and uncoordinated delegation occurs
horizontal communication
useful as it encourages production of highly creative work by subordinates

Question 24

Pros and *cons of democratic apporach

Answer 24

commitment to business , satisfaction and quality of work improve
*slow decision making

Question 25

Pros and cons of autocratic

Answer 25

Decision and direction of business will be consistent . project image of confident , well managed business *lack of information so subordinates dependent on leaders

Question 26

Laissez fair pros and *cons

Answer 26

bringing the best out of a highly creative group * not be deliberate but bad management - staff lack of focus and sense of direction

Question 27

What is scientific decision-making

Answer 27

decision making that is based on data and uses logical and rational apporach

Question 28

what do weak financial business consider

Answer 28

low-risk projects even if the returns are quite low

Question 29

Intuition

Answer 29

making decisions based on gut feeling rather than data and rational analysis.

Question 30

pros of scientific decision-making

Answer 30

application to logic likely to reduce risk

Question 31

pros of intuition

Answer 31

quick and data may be incorrect

Question 32

Decision trees

Answer 32

trees like diagramused to determine the best course of action in situation where alternatives with certain outcomes exist

Question 33

expected value calculations

Answer 33

outcomes * probabilities added together

Question 34

net gain

Answer 34

Expected value - cost

Question 35

Pros of decision-making

Answer 35

Make managers think and quantify decision rather than relying on tuition demand managers consider all the possible alternative outcomes allow uncertainty and forces assessment of chances and implications of success and failure

Question 36

Cons on decision making

Answer 36

influenced by own bias towards one decision making the returns for their favored approach more attractive and justify decision difficult to get meaningful data don't take into account the variability of business environment

Question 37

Opportunity cost

Answer 37

cost of next best alternative foregone eg: investing in a new fleet of vehicles it may miss out on a new computer system- represents an opportunity cost

Question 38

Influences on decision making

Answer 38

Mission and Objectives , Ethics , External environment , competition , resource constraints

Question 39

Mission

Answer 39

Mission of business is its essential purpose and a business will be guided in its decision making by its mission and objective it sets Eg influenced by pricing policy

Question 40

Ethics

Answer 40

Making decision that are morally correct . putting ethics before profit would find little favour

Question 41

External environment

Answer 41

Downturn in economy or rise in interest rates could see decision postponed or abandoned . decision making will also be influenced by change in consumer taste or a new fashion trend

Question 42

Competition

Answer 42

decision making aimed at first mover advantage and getting ahead of competition whereas other decision making will respond to actions of competitors .

Question 43

Resource constraints

Answer 43

physicsally what is capable to do . skill of workforce and financial resources limits what a business can do .

Question 44

Stakeholders

Answer 44

groups or organisation who have an interest in business

Question 45

Stakeholders with their interests

Answer 45

Employees : Job security ,good working conditions and pay Customers : good customer service and value for money Shareholders : capital growth and dividends Suppliers : regular orders and on time payment Local communities : avoidance of pollution and congestion , employment Govt: employment and payment on taxes

Question 46

Stakeholder mapping categorised into

Answer 46

amount of power and level of interest

Question 47

High interest , High power

Answer 47

key players , management needs to make this group happy , involving them in decision making process

Question 48

Low power , Low interest

Answer 48

Require minimal effort from management , keeping them up to date

Question 49

High power , Little interest

Answer 49

Consulted and meet their needs, if possible increasing their level of interest to avoid conflicts

Question 50

High interest and little power

Answer 50

kept informed and up to date in order to avoid conflicts and enhance reputation of the business by showing them consideration

Question 51

Stakeholder Overlap and conflicts of interest to relocation overseas

Answer 51

Overlap - Shareholders: potential for lower costs and increased profit Managers: staff promotion and achieve objectives in terms of cost Conflict: Local community : impact on economy employees : lost jobs govt : less tax

Question 52

Stakeholder Overlap and conflicts of interest to expand production

Answer 52

Overlap - Shareholders : higher sales and profit Employees : job opportunities Customers : greater availability Suppliers: more orders Govt : more tax Community : greater production Conflict : Local community : congestion and pollution

Question 53

Stakeholder Overlap and conflicts of interest to introducing new technology

Answer 53

Shareholders and management: lower costs and potential for increased profit Consumer: result in better quality Conflict : Employees: lose jobs Less employment: impact the local community

Question 54

Stakeholder Overlap and conflicts of interest to increase prices

Answer 54

Shareholders: potential profit increase. ✚ Management: improved performance. ✚ Government: more tax. Conflict : customers : cost more

Question 55

Stakeholder Overlap and conflicts of interest to cut cost

Answer 55

Shareholders: potential profit Management: achieve objectives Conflict : Employees: potential job losses Customers : quality might be affected Suppliers : pressure on prices

Question 56

Stakeholder Overlap and conflicts of interest to enter new markets

Answer 56

Shareholder: potential profit Employees: job security Suppliers: increased orders Community: greater employment Conflict : Local community: pollution due to increased production

Question 57

Influences on relationship with stakeholders

Answer 57

Leadership style: autocratic leaders may have little concern for individual stakeholder groups and would be likely to consult them. Financial pressure: if a business is striving for survival then it would focus solely on internal stakeholders: one who can help solve problem Business objective: some are committed to an ethical approach in their decision-making while others may be less concerned . state of the economy: when its booming, more likely to improve the working conditions and environment with access to finance

Question 58

Possible approaches to stakeholder management

Answer 58

partnership , participation, Consultation, Push communication, pull communication

Question 59

Partnership

Answer 59

Involve stakeholder group most closely in the decision. suitable to stakeholders with high power and interest

Question 60

Participation

Answer 60

less form of partnership. responsibility for some part of decision. suitable to stakeholders with high power and low interest

Question 61

Consultation

Answer 61

finding out the views of relevant stakeholders who may respond to questions. suitable to stakeholders with high interest and low power

Question 61

Push communication and Pull communication

Answer 61

Push - one-way communication: low power and low interest Pull- engage with businesses if they want to