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Description
Flashcards by Hollie Ferris, updated more than 1 year ago
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Created by Hollie Ferris
over 8 years ago
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| Question | Answer |
| 3.2.1 Textbook Section 2 Understanding management, leadership and decision making | Content: - What managers do - Types of management and leadership styles and influences on these - The effectiveness of different styles of management and leadership |
| Define Leadership | The ability to guide others without force into a direction or decision that leaves them still feeling empowered and accomplished |
| Three types of leadership styles | - Autocratic - Paternalistic - Democratic |
| Autocratic Leadership | One clear person of authority in charge who makes all of the decisions. Communication is downwards only. Usually present in high safety risks businesses, E.g. Military, Oil/gas |
| Paternalistic Leadership | Softer child/parent relationship, in which there is more listen and more input from the employees however management still makes the final decision. |
| Democratic Leadership | Participation at all levels with decision making, employees involved in most things. High encouragement through the business. |
| What might influence an Autocratic leadership style? | Internal factors: - Dangerous industry - Unskilled workers - Tight dealines to meet - one off/ larger order to complete External factors: - Recession or poor economy |
| What might a influence an Democratic leadership style? | Internal factors: - Educated, skilled workers - Tasks that are easily delegated External factors: - Period of growth, economic conditions - Increased competition |
| What is the Blake Mouton Grid? | Its lets manager asses their leadership style based on the concern for performance and concern for employees. |
| 3.2.2 Understanding manangement decision making | Content: - The value of decision making based on data and on intuition - The use and value of decision trees in decision making - Influences on decision making |
| RISKS of decisions (getting it wrong) | - Losing profit - Staff morale may all - Lack of motivation - Losing customers - PLC; share prices fall - Loss in creditability |
| REWARDS of decisions (getting it right) | - Profit - Opportunities for growth - Improved morale/motivation - Attract good staff - Increase share price |
| Scientific Method of decision making; make an informed decision made on data. Minimising the risk of failure. | S.M.A.R.T Set objectives | Collect data | Analyse data | Make decisions | Implement decisions | Review decisions |
| Advantages of Scientific decision making | - Logical, structured approach - Reduce risk - Easier presentation of decision to others - Easy to compare outcome |
| Disadvantages of Scientific decision making | - Data could be out of date - Theoretical - Contradict mission statement/objectives - Time consuming - Only looks at Quantitate data not other factors - Reliability of data |
| Advantages of Intuition decision making | - Fast decisions - Experience based - Match to mission statement/objectives |
| Disadvantages of Intuition decision making | - No back-up/data to support the decision - Can be unrealistic - Bias |
| Factors effecting the decision | Mission - Have to be taken into consideration Objectives - Whether short or long term set to obtain mission Ethics - Are there ethical repercussions; moral/social concerns External Environment - P.E.S.T.L.E Resources - How available are they? Money, time. Limited? |
| Qualitative Data | Opinions and views of a particular subject |
| Quantitative Data | Surveys; numerical data |
| What are Decision Trees? | A mathematical model showing different options and outcomes. |
| How do you calculate Estimated Value and Net profit on a decision tree? | Estimated Value: Value of the outcome X probability of each outcome, then added together. For example; Outcome 1 - £400 x 0.5 = £200 Outcome 2 - £500 x 0.8 = £400 £400 + £ 200 Estimated Value = £600 Net Profit; Estimated value for one outcome - Cost of outcome For example; EV of Outcome 1 = £200 Cost of Outcome 1 = £ 50 Net Profit = £150 |
| Advantages of Decision Trees | - Predicts success or failure based on market research and qualifiable data - Allows for uncertainty - Logical/structured |
| Disadvantages of Decisions Trees | - Uncertainty/risk - Unreliable data - Time consuming - Ignores qualitative factors - Difficult to do, mistakes possible |
| 3.2.3 Understanding the role and importance of stakeholders | Content: - The need to consider stakeholder needs when making decisions - Stakeholder need and the possible overlap and conflict of these needs - Influences on the relationship with different stakeholders |
| Stakeholder Mapping | Analyses the key stakeholders for a business. Measures stakeholder power over the business and interest over the business. |
| Influences on the relationship with stakeholders | - Laws; e.g. health and safety, employment laws - Corporate social responsibilities - Recession - Economy |
| Communication with different stakeholders | - Advertising; Online, TV - Pricing offers - Email/social media - In person; small stores/ businesses - Newspapers |
| Benefits of good communication | - Knowledge of the business to key groups of stakeholders - Customer service - New ranges/ products acknowledged |
| Consultation with different stakeholders | The business actively talking to key stakeholder groups. Done to gather views and opinions from main and most important shareholder groups. |
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