3.2 Managers, leadership and decision making

What is management

The process of setting objectives and taking decisions to make the most effective use of the resources.

What is leadership

Influencing and directing the performance of group members towards achieving the goals of the organisation.

What is an autocratic

One leader or member of the organisation makes decisions on behalf of the company.

What is a democratic

Leaders are hands-off and allow group members to make the decisions.

What is laissez faire

Leaders are hands-off and allow group members to make the decisions.

What is paternalistic

A dominant figure decides what is best for employees. Softer form of authoritarian leadership.

What is the tannenbaum schmidt continuum

Model of leadership theory which shows the relationship between the level of freedom that a manager chooses to give to a team and the level of authority used by the manager.

What is tactical decisions

Short term, easy to reverse and fewer resources involved. Usually undertaken by junior management.

What are strategic decisions

Long term, difficult to reverse and large commitment of resources. Usually undertaken by senior management.

What is uncertainty

A situation in which there is a lack of knowledge and events. Outcomes or consequences are unpredictable.

What is opportunity cost

The next best alternative forgone

What is a decision tree

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

What is a stake holder

Anyone with an interest in the business.

What is a primary stakeholder

Stakeholders that are affected by a particular business activity and have a direct functional or financial relationship with the business.