Flashcards in Unit 2 Deck (19):
What is an autocratic management style?
Where the leader makes the decision without consultation
What is a democratic style of management?
Where leaders make the final decisions but include workers in the process
What is a laissez-faire style of management?
WHere lots of freedom is given in decision making and leaders rarely get involved
What's is the Tannenbaum Schmidt Continuum?
A scale showing management styles based upon how decisions are communicated with staff
What is the Blake Mouton Grid?
Identifies a managers style based on the concern for staff and their concern for production
What are the 5 styles on the Blake mouton grid?
Country club management - high people low production
Impoverished management-low people low production
Team management-high people high production
Task management/produce or perish-high production low people
Middle of the road management
What are the advantages of autocratic management?
Decisions made quicker
Uses knowledge and expertise of leader
Everyone knows exactly what they are doing
What are the advantages of democratic management?
Uses the skills of staff
Makes staff feel valued
What are the disadvantages of democratic management?
Takes longer to make decisions
May be disagreement
May annoy workers that leader listens but still make decision themselves
Disadvantages of autocratic management?
Doesn't use worker skills
Makes workers feel not valuable
May not keep onto most talented workers
What is a decision tree?
A maths tool to help managers make the best financial decisions
How do you use a decision tree?
1)Predict possible outcomes
2)predict possible outcomes of each
3)probability x value = expected value
4)all expected values for that possible outcome added together - original cost = net gain.
What are some important external influences on business decision making?
-economy (and future outlook)
-current technology in the world
-what rivals are doing
-politics, i.e. Regulations and red tape
What is stakeholder mapping?
A visual representation of the stakeholders of a business and their interest and importance to the business
What are the advantages of a decision tree?
-give managers financial data to use in decision making
-can be used to justify why decisions have been made
What are the disadvantages of a decision tree?
-based on estimates
-there's probably a wider range of outcomes In reality
What are the two types of decision making?
Scientific and hunch
Why is the shareholder and stakeholder approach different?
The shareholder approach only considers shareholders whereas the stakeholder approach takes a wider range of stakeholders into account when a business is making decisions