Unit 2- Understanding Management, Leadership And Decision Making

Question 1

Management

Answer 1

Planning, organising, directing and controlling all or part of a business enterprise

Question 2

Authority

Answer 2

The power or ability to carry through an action

Question 3

Delegation

Answer 3

Passing authority down the organisational hierarchy. This is only genuine if the manager relinquishes some control to the subordinate

Question 4

Empowerment

Answer 4

Provides subordinates with the means to exercise power or control over their working lives

Question 5

Decentralisation

Answer 5

Passes authority from the centre of an organisation to those working elsewhere in the business

Question 6

Autocratic leadership/Authoritarian leadership

Answer 6

Information and decision making are best kept at the top of the organisation.
Downward communication only
Minimal delegation or decentralisation
Close supervision of employees

Question 7

Democratic/participative leadership

Answer 7

Operating a business according to the decisions agreed by a majority
Leader delegates a deal and encourages decentralisation
Leader and subordinates discuss issues
Leader acts on advice and explains the reasons for decisions
Subordinates are empowered and have greater control over their lives

Question 8

Laissez-faire leadership

Answer 8

The leader has minimum input into the operation of the business
Manager is one among a number of equals in terms of experience and qualifications
Self motivated workforce
Workforce understand and agrees with organisations objectives

Question 9

Programmed decisions

Answer 9

Familiar and routine decisions

Question 10

Non-programmed decisions

Answer 10

Less structured decisions that require unique solutions

Question 11

Risk

Answer 11

Chance of incurring misfortune or loss

Question 12

Uncertainty

Answer 12

A situation with lack of knowledge and event, outcomes or consequences are unpredictable

Question 13

Opportunity cost

Answer 13

The next best alternative forgone

Question 14

Decision tree

Answer 14

A model that represents the likely outcomes for a business of a number of courses of action on a diagram showing financial consequences of each

Question 15

Scientific decision making

Answer 15

Based on data and uses a logical, rational approach to decision making

Question 16

Probability

Answer 16

Chance of a particular event occurring

Question 17

Expected values

Answer 17

Financial outcomes from a specific course of action, adjusted to allow for the probability of it occurring

Question 18

Net gains

Answer 18

The expected values of a course of action minus the costs associated with it

Question 19

Ethics

Answer 19

Moral principles, which should underpin business decisions and actions

Question 20

The external environment

Answer 20

Compromises those external forces that can influence a businesses activities

Question 21

Stakeholders

Answer 21

Groups or individuals who have an interest in a business

Question 22

Social responsibility

Answer 22

Describes the duty a business has towards takeover groups such as employees, customers and the government

Question 23

Market conditions

Answer 23

A number of features of a market such as the level of sales, the rate at which they are changing and the number and strength of competitors

Question 24

Communication

Answer 24

The exchange of information or ideas between two or more parties

Question 25

Stakeholder engagement

Answer 25

A process by which managers involve individuals or groups who may be affected by their decisions in those decisions

Question 26

Consultation

Answer 26

A process by which one groups discovers the views of another one

Question 27

Leadership

Answer 27

Includes functions of ruling, guiding and inspiring other people with organisation in pursuit of agreed objectives

Question 28

Country club leadership

Answer 28

(1,9) Main focus on people Relaxed environment Work will suffer due to lack of control

Question 29

Impoverished leadership style

Answer 29

(1,1) Little concern for task or people Ineffective style

Question 30

Middle-of-the-road leadership style

Answer 30

(5,5) Some focus on task and some on people Compromise between the two Result in average performance

Question 31

Produce or perish leadership style

Answer 31

(9,1) Places emphasis on the task Likely to be authoritarian leadership

Question 32

Team leadership style

Answer 32

(9,9) High focus on both task and people Employees involved in the task and want to get it done