Managers, Leadership and Decision Making (Unit 2) Flashcards
(27 cards)
What is the difference between management and leadership?
Management is about organising and coordinating resources to achieve objectives. Leadership involves influencing and inspiring others to achieve goals.
What is the Tannenbaum Schmidt Continuum?
A model that shows the range of leadership styles from authoritarian (tell) to democratic (delegate), highlighting that styles exist on a continuum.
What are the advantages of democratic leadership? (2)
Encourages employee input and motivation.
Can lead to better decision-making through team discussion.
What are the disadvantages of autocratic leadership? (2)
Can demotivate staff.
Poor communication may result.
What are the disadvantages of democratic leadership? (2)
Slower decision-making.
May lead to lack of clear direction if not managed well.
What are the advantages of autocratic leadership? (2)
Quick decision-making.
Clear direction and control.
What are the advantages of paternalistic leadership? (2)
Employees may feel cared for and loyal.
Can lead to higher motivation than autocratic style.
What are the disadvantages of paternalistic leadership? (2)
Decisions still made at the top — limited input from staff.
Can cause frustration if staff want more autonomy.
What are the advantages of laissez-faire leadership? (2)
Encourages independence and creativity.
Works well with skilled, self-motivated teams.
What are the disadvantages of laissez-faire leadership? (2)
Can lead to lack of direction or accountability.
May cause low productivity if team lacks self-discipline.
What is scientific decision making?
A logical, data-based approach to decision making involving clear steps and evidence-based analysis.
What are the advantages of scientific decision making? (2)
Reduces risk through use of data.
Encourages logical evaluation of options.
What are the disadvantages of scientific decision making? (2)
Time-consuming process.
Depends on data quality – poor data = poor decisions.
What is intuition-based decision making?
A method of decision making based on gut feeling and experience, rather than data.
What are the risks of relying on intuition for decisions? (2)
Can lead to biased or rushed decisions.
May overlook key data or evidence.
What are the benefits of relying on intuition for decisions? (2)
Cheaper
Faster
What is a decision tree?
A model used in scientific decision making to calculate the financial consequences of different options based on probabilities.
What is Expected Value (EV) in a decision tree?
EV = (Probability × Outcome) for all options, added together.
What is Net Gain in a decision tree?
Net Gain = Expected Value − Initial cost.
What are the benefits of using decision trees? (2)
Helps compare financial outcomes.
Makes risk and reward visible.
What are the drawbacks of decision trees? (2)
Probabilities are estimates, not facts.
Non-financial factors are ignored.
When is it better to use data rather than intuition in decisions? (2)
When data is reliable and available.
For large financial investments or strategic choices.
When might intuition be preferred over data? (2)
When time is limited.
When the decision maker has strong experience.
What are the 4 functions of management?
Planning – setting objectives and deciding how to achieve them.
Organising – allocating resources and roles.
Leading – motivating and directing people.
Controlling – reviewing and evaluating performance
