Unit 2 Flashcards
(33 cards)
What are the key components of management?
- Planning
- Organising
- Directing
- Controlling
These components are essential for achieving organizational objectives.
What is scientific decision making?
It includes understanding & interpreting decision sources, calculating expected values & net gains
This approach relies on data and analysis to guide decisions.
What does the directing function of management involve?
- Motivating
- Communicating
- Coordinating
This function is crucial for guiding employees toward achieving objectives.
What are the key steps in the decision-making process?
- Setting objectives
- Gathering & interpreting information
- Identifying options
- Selecting the chosen option
- Implementing the decision
- Reviewing effectiveness
This structured approach helps in making informed decisions.
What is Trait Theory in leadership?
It suggests that certain personality traits differentiate a good leader from others
This theory focuses on inherent qualities of leaders.
What characterizes Autocratic leadership?
Decision making is kept at the top, with minimal delegation and close supervision of employees
This style can lead to quick decision-making but may stifle employee initiative.
What is Democratic leadership?
Decision making involves a majority, promotes employee participation, and includes significant delegation
This style can enhance team morale and creativity.
What is Laissez Faire Leadership?
It allows employees to operate with little reference to the leader, which may lead to a lack of direction
This style can foster innovation but may result in disorganization.
What are Decision Trees used for?
They represent likely outcomes for a business based on different options
Decision Trees help visualize the consequences of decisions.
What is the value of Decision Trees in decision making?
- Forces managers to quantify the impact of decisions
- Enables logical comparison of options
- Reduces rushed decision-making
These benefits lead to more informed and strategic decisions.
What are stakeholders?
Groups or individuals affected by or having an interest in the operations of a business
Effective stakeholder management is crucial for business success.
What are Primary stakeholders?
Individuals or groups directly affected by a business activity, such as shareholders and customers
Their interests must be carefully considered in business decisions.
What is a common challenge in stakeholder management?
Most decisions will end up being ‘win-lose’, meaning supporting one stakeholder may disadvantage another
Balancing stakeholder interests is a complex task for managers.
What are stakeholders?
Groups or individuals affected by and/or have an interest in the operations of the business.
What is a primary stakeholder?
Individuals or groups affected by a particular business activity, such as a decision to increase production.
What are secondary stakeholders?
Do not have direct functional or financial relationships with the business but are affected by or can influence its actions.
What distinguishes internal stakeholders from external stakeholders?
Internal stakeholders are part of the organization (e.g., directors, shareholders, managers, employees) while external stakeholders exist outside the organization (e.g., customers, suppliers).
What is a common example of stakeholder conflict?
Local residents opposing the expansion of a factory site.
What are internal factors that can cause stakeholder conflicts?
Business objectives, management and leadership styles, size, growth, and ownership of the business, ethics.
What are external factors that can cause stakeholder conflicts?
Market conditions, power of stakeholder groups, government policies.
What are some possible approaches to stakeholder management?
- Partnership
- Participation
- Consultations
- ‘Push’ communications
- ‘Pull’ communications
What is a pro of the stakeholder approach?
Appreciates different objectives.
What is a con of the stakeholder approach?
Cost and opportunity cost.
What is a pro of the shareholder approach?
Firm focus on profit.
