Unit 2 Flashcards by Myles Barnett

what are the 5 main tasks of managers:

set objectives

organise tasks

motivates and communicates

measure (appraises performance)

develop people

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what is a leadership style ?

a way in which a leader approaches his or her role of planning, organising, directing, and controlling

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what are the 4 basic styles of leadership ?

autocratic
democratic
paternalistic
laissez-faire

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what is an autocratic leadership style ?

where decisions are made without consulting others

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what is laissez-faire leadership style ?

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

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what is the paternalistic leadership style ?

consult employees and try to make a decision that will benefit everyone

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what is the scale of the Tannebaum and Schmidts continuum ?

tells, sells, consults, delegates

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what relationship does the Tannebaum and Schmidt continuum show ?

the relationship between authority retained by the manager and the level of freedom

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what are the uses of democratic leadership ?

useful when there are complex decisions to be made requiring a range of skills

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what are the uses of autocratic leadership ?

useful when quick decisions need to be made

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what are the uses of laissez-faire leadership ?

useful way to encourage production of highly creative work by subordinates

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what is an advantage and disadvantage of democratic leadership ?

ADV: employees may have a greater commitment to the business, satisfaction and quality of work may improve

DADV: slow decision making and need for consensus may make it hard to take the ‘best’ decision

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what is an advantage and disadvantage of autocratic leadership ?

ADV: decisions and direction of business will be consistent. may help maintain and project and image of confidence, and well-managed business

DADV: lack of information, so subordinates depend highly on leaders decisions

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what is an advantage and disadvantage of laissez-faire leadership ?

ADV: may bring the best out of highly skilled, professional, and creative groups

DADV: staff may lack focus and sense of direction

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what is scientific decision making ?

decision making based on data using a logical and rational approach

e.g. decision trees

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what tools could be used to aid scientific decision making ?

. the Boston matrix
. the product life cycle
. investment appraisal
. ratio analysis
. decision trees

what is opportunity cost ?

the cost of the next best alternative forgone.

why does opportunity costs occur ?

scarcity of resources (funds, raw materials etc.).

what is intuition ?

decisions based on gut feeling rather on data and a=rational analysis

what is an example of where intuition would have been more successful than scientific decision making ?

Coca-Cola changing their recipe due to taste tests, which proved to be a marketing disaster

what are the factors that influence decision making ?

Mission & Objectives
Ethics (Morally correct)
External Environment (downturn in the economy etc)
Competition
Scarcity Of Resources

what are 6 stakeholders ?

employees
customers
shareholders
suppliers
local communities
government

what are the interests of employees ?

job security, good working conditions & pay

what are the interests of customers ?

good customer service, and value for money

what are the interests of shareholders ?

capital growth, dividends

what are the interests of suppliers ?

regular orders, and on-time payment

what are the interests of local communities ?

avoidance of pollution and congestion, and employment

what are the interests of government ?

employment and payment of taxes

what are stakeholders ?

people, groups, organisations, or members of society who have an interest in a business

what are the axis n the stakeholder map >?

power of stakeholder interest of stakeholder

how would a business deciding to relocate overseas create conflict between the shareholders and employees ?

shareholder (benefit from potential lower costs and increased dividends) employees (Lose jobs)

how would introducing new technology create conflict between shareholders and employees ?

shareholder (benefit from potential lower costs and increased dividends) employees (Lose jobs)

how would expanding production create conflict between shareholders and the local community ?

shareholders (greater sales and profit, resulting in higher dividends) local community (greater congestion and pollution)

how could increasing the price of a businesses products create conflict between shareholders and customers ?

shareholders (increased profit) customers (Higher cost)

what are the 4 influences on owners relationships with stakeholders ?

. leadership styles . business objectives . government . state of the economy

what are different ways relationships with stakeholders can be managed to significantly reduce conflicts ?

stakeholder mapping good communication and consultation careful planning and introduction of decisions, which may significantly effect specific stakeholders