unit 2 managers leadership and decision making

Question 1

what is a decision or probabiulity tree

Answer 1

enables managers to make decisions bases on expected financial outcomes
probability of success and failure
initial costs

Question 2

benefits of decision trees

Answer 2

way of comparing option on financial gain
forces managers to consider the probabilities of failure
considers the initial cost

Question 3

negatives of decision trees

Answer 3

figures based on predictions
depends on how optimistic or pessimistic the manger is
only considers financial data

Question 4

what is scientific decision making

Answer 4

making decisions based on evidence and adopting a systematic approach, rather than intuition

Question 5

benefits of intuiton apprioach

Answer 5

based on previous decisions

Question 6

drawback of intuition approach

Answer 6

more risky as it could be a bias decision

Question 7

when is it most appropriate to use intuition approach

Answer 7

high skilled worker with a low risk decision

Question 8

benefit, drawbacks and appropriate time to use a scientfic approach

Answer 8

less risky
takes longer and possibility for innacurate data
high skilled worker with low risk decision

Question 9

what is opportunity cost

Answer 9

the next best decision forgone

Question 10

what are the 4 types of leadership styles

Answer 10

authoritarian
democratic
paternalistic
laissez-faire

Question 11

how does authoritarion leadership work and what are the key benefits and drawbacks

Answer 11

managers make all the decisions
ben - more effective with unskilled workers
draw- demotivating low staff and high labour

Question 12

how does democratic leadership work and what are the benefits and drawbacks

Answer 12

when managers give more involvment in decision making
ben- more motivation and frees up manager
draw- risk of wrong choices and slow process

Question 13

how does laisdez-faire leadership work and what are the benefits and drawbacks

Answer 13

there is no imput by a manager in decision, full delogation
ben- creative environment and motivation for employees
draw- can be inefficient

Question 14

Paternacistic leadership style

Answer 14

Managers consult employees before making decision.
Employee feel motivated and involved
Long term can lead to issues as employees lose motivation as they realise they have no real say