Unit 2

Question 1

Leaders

Answer 1

inspire people, build relationships, take risks, have followers

Question 2

Managers

Answer 2

implement the plan, use their authority, manage risks, have subordinates

Question 3

Autocratic/ paternalistic

Answer 3

close control with direct supervision, decisions made faster and by most skilled employees, can be demotivating and creates a ‘them and us’ attitude

Question 4

Democratic

Answer 4

Sharing decisions, can motivate workers, social needs are being met, mistakes or errors can be made, takes time

Question 5

Laissez-faire

Answer 5

power to make decisions by leaving employees alone, encourages personal development, innovation thrives, productivity may decline

Question 6

Internal influences

Answer 6

1. urgent tasks need different leadership from routine tasks 2. large and unskilled workforce may need autocratic leadership, small educated workforces need democratic 3. creativity and innovative thinking needs laissez-faire

Question 7

External influences

Answer 7

1. autocratic can be more efficient in a crisis 2.when economy is doing well more time taken for decisions 3. increased competition

Question 8

Tannenbaum schmidt continuum

Answer 8

tell, sell, consult, join

Question 9

Decision tree

Answer 9

make decisions based off expected financial outcomes, probability of success and failure and initial costs

Question 10

Benefits of decision trees

Answer 10

way of comparing option on financial gain, forces managers to consider the probabilities of failure

Question 11

Cons of decision trees

Answer 11

figures based on predictions, depends on how optimistic or pessimistic the manager is, only considers financial data and not PESTLE + Competition

Question 12

Tactical Decisions

Answer 12

made on daily basis,small decisions that impact on the overall performance

Question 13

Strategic Decisions

Answer 13

much bigger decisions that will affect direction of the business in medium to long term, require heavy investment

Question 14

Opportunity cost

Answer 14

the sacrifice that is made when an alternative decision is chosen

Question 15

Factors affecting decision making

Answer 15

mission + objectives, organisational and decision makers, attitude to risk, availability and reliability data, external environment, resource constraints

Question 16

Internal stakeholders

Answer 16

individuals that are within the organisation itself such as employees

Question 17

External stakeholders

Answer 17

individuals who are interested in the activities of the business