Unit 2. Decision making

Question 1

Pros and cons of scientific decision making

Answer 1

Pros: rational and logical
Cons: may not be reliable data, expensive

Question 2

5 style on Blake Moutin Grid

Answer 2

Left: concern to production
Right: concern to ppl

Impoverished (1,1)
Country Club(1,9)
Middle rode (5,5)
Produce or perish(9,1)
Team management(9,9)

Question 3

Pros and cons of hunch and intuition DM

Answer 3

Pros: when quick decision is needed/not enough time to gather data
When managers is wel experienced

Cons: increase risk

Bias: Intuition can be influenced by unconscious biases and previous experiences, which can lead to decisions that are not objectively accurate.

Question 4

Pros and cons of decision tres

Answer 4

: logical and rational DM
Potential cost and profit considered

Cons: uses quantitative data only
Doesn’t necessary reduce the risk

Question 5

Influences on dm
(what are the effectiveness on the decision making)

Answer 5

Ethics
are their decisions ethical?
consumers could lead to boycotting the biz-worsen the reputation, potential drop in sales

Risk involved
whether or not that decision is high risk or not.
if high risk, may work more caution and gather more data

Obj and aim
are the decisions followed with the aims?

External environment
competitors, incomes, IR, demographic, could delay decisions less able to forecast the sales, unpredictable

Resource constraints
may have insufficient finance or time or accurate info to make a decision.

Question 6

Two types of stake holders

Answer 6

Primary and secondary stake holders
Direct relationship; primary
and internal external

Question 7

Internal and external stake holders

Answer 7

Internal: employees managers shareholders
External: governments suppliers.

Question 8

Brief stakeholders answer 6

Answer 8

Customers
Employees
Local communities
Suppliers
Shareholders
Governments

Question 9

Stakeholder mapping 4 category
State and separate them

Answer 9

(Minimum effort 1,1)(below left)
Keep Satisfied (1,9)(top left)
(Keep informred 9,1)( right below)
Key players (9,9)(top right)

Left: levels of power
Right levels of interest

Question 10

Stakeholder conflict what it is
Give examples

Answer 10

Raising price: good for shareholders but not for customers

automation to increase productivity : good for customers and shareholder but not for employee

Increase dividend
Good for shareholders but not for employee

Question 11

Factors that could effect relationship of stakeholders
(what it depends on, effectiveness)

Answer 11

Biz objective:
if ethical, may have good revelation with suppliers workers and customers, if more profit maximising, may impact.

Management and leadership style:
if autocratic, may ignore employee relations, conflict with stakeholder rises.

Size of the biz:
if small or sole trader, may be chill as they are familiar, and they know the workers.

Market conditions:
-if competitive market, Amy have close relationship to build up a good reputation

Power of stakeholder group(shareholders vote):
shareholders suppliers,

Gov policy
-if legation re strict on price level, may impact the shareholders.

Question 12

Hierarchical of Managing relationship w stake holders

Answer 12

Two way communication

Partnership high power high interest
Participation high power low interest
Consultation low power high interest

One way communication

Push communication low power high int- low low
Pull communication low power low influence

Question 13

4 types of leadership and charcteristic

Answer 13

1. autocratic
   the leader makes decision without consultation
2. democratic
   where each team members can make strong contribution
3. paternalistic
   leeader acts in a fatherely way toards the workforce
4. laizz faire
   leader allows them to make decision on their own.

Question 14

when would be an appropriate and inappropriate moment on using autocratic leadership

Answer 14

appropriate:
-when a rapid decision is needed-perhaps in an emergency
-when it is important that the same message is given out by everyone in the org, maybe as part of the crisis management.
-when manager are responsible for a large number of(possibly unskilled) subordinates

inappropriate:
-when taking highly complex decision requiring diverse knowledge and skills
-when leading a talented, self motivated and creative group of employees

Question 15

tell me about the the tannebaum-schmidt continuum

Answer 15

tell, sell,consult,join
autocratic, democratic, paternalistic laissez faire

Question 16

characteristics of autocratic

Answer 16

-primarily one way communication
-minimal delegation or decentralisation
-close supervision.

Question 17

characteristics of democratic

Answer 17

-leader delegates great deal and encourages decentralisation
-leader discuss issues and employee participation is actively encouraged
-the leader acts upon advice, and explain the reasons and decisions

Question 18

characteristics of laser faire leadership

Answer 18

-managers is one among a number of equal in terms of experience and qualifications
-the workforce is self motivated and understands the role of managers
-the workforce understands and agrees with the organisation obj

Question 19

what are the effectiveness and evaluation in terms of the choices of leadership

Answer 19

-the tradition and history of the business
some biz have a history of particular management
John Lewis-considersate approach with employees

-the type of labour force
if highly trained skilled-democratic as they have the ability to contribute to DM

-the nature of the task and the time scale
managers does not always have to use same leadership style. if urgent short term, may require autocratic approach. if not, conversely.

-the personality of the manager or leader
if that personality of managers are decisive with a strong vision, may be autocratic. Elon musk, Steve jobs.

Question 20

decision trees how to find the net gain and expected value

Answer 20

net gain:EV-initial cost
expected value:
probability ✖️ the outcome of an option