Flashcards

• What is management?

The process of planning, organizing, leading, and controlling resources to achieve business objectives.

• What are the main functions of management?

Planning, Organizing, Leading, Controlling (sometimes called the POLC framework).

• What is leadership?

The ability to influence and motivate people to achieve business objectives.

• Difference between a manager and a leader?

Managers organize and control work; leaders inspire, motivate, and guide people.

• What is autocratic leadership?

A leadership style where the leader makes decisions alone with little input from employees.

• Advantages of autocratic leadership?

Quick decision-making, clear authority, good for emergencies.

• Disadvantages of autocratic leadership?

Can demotivate staff, reduce creativity, cause high turnover.

• What is democratic leadership?

A leadership style where the leader involves employees in decision-making.

• Advantages of democratic leadership?

Staff feel valued, higher motivation, better ideas from team.

• Disadvantages of democratic leadership?

Decision-making is slower, can cause conflict if opinions differ.

• What is laissez-faire leadership?

A leadership style where employees have freedom to make decisions with little guidance.

• Advantages of laissez-faire leadership?

Encourages creativity, independent working, good for skilled teams.

• Disadvantages of laissez-faire leadership?

Can lead to lack of direction, low productivity if team lacks discipline.

• What is situational leadership?

Adapting leadership style depending on the situation, task, and team.

• Examples of factors affecting leadership style?

Task complexity, employee skill/experience, urgency, company culture.

• What is decision-making in business?

Choosing the best course of action from available alternatives to achieve objectives.

• What is a decision tree?

A diagram showing possible choices, outcomes, probabilities, and expected values to aid decision-making.

• What is expected value (EV)?

EV = (Probability × Payoff) – Cost; used to assess the financial impact of decisions.

• What are advantages of decision trees?

Shows options clearly, considers probabilities, helps calculate risk/reward.

• What are disadvantages of decision trees?

Based on estimates, may oversimplify, doesn’t consider qualitative factors.

• What is a SWOT analysis?

Identifies a business’s Strengths, Weaknesses, Opportunities, and Threats.

• Difference between strategic and tactical decisions?

Strategic: long-term, big impact; Tactical: short-term, day-to-day.

• What is risk in decision-making?

The chance of an outcome differing from expectations, often measurable.

• What is uncertainty in decision-making?

When outcomes are unpredictable and cannot be assigned probabilities.

• What is a stakeholder?

Anyone affected by or who can affect business decisions.

• Examples of internal stakeholders in decision-making?

Managers, employees, owners/shareholders.

• Examples of external stakeholders in decision-making?

Customers, suppliers, government, community, competitors.

• What is a centralized organization structure?

Decision-making is concentrated at the top of the hierarchy.

• Advantages of centralization?

Consistent decisions, clear authority, easier control.

• Disadvantages of centralization?

Slower decisions, lower employee motivation, less responsive.

• What is a decentralized organization structure?

Decision-making is delegated to lower levels of management.

• Advantages of decentralization?

Faster decisions, more motivated staff, flexible and responsive.

• Disadvantages of decentralization?

Less consistency, risk of poor decisions by inexperienced staff.

• What is the chain of command?

The line of authority from the top of an organization to the bottom.

• What is span of control?

The number of employees a manager is directly responsible for.

• What is a flat organizational structure?

Few levels of management, wide span of control, more employee autonomy.

• What is a tall organizational structure?

Many levels of management, narrow span of control, closer supervision.

• Advantages of a flat structure?

Faster communication, more empowerment, cheaper management.

• Disadvantages of a flat structure?

Can be confusing with unclear authority, less control.

• Advantages of a tall structure?

Clear authority, closer supervision, structured promotion paths.

• Disadvantages of a tall structure?

Slower communication, higher costs, less employee empowerment.

• What is a matrix structure?

Employees report to more than one manager, often for projects and functional duties.

• Advantages of a matrix structure?

Encourages collaboration, flexible use of skills, specialist input.

• Disadvantages of a matrix structure?

Can cause confusion, conflict, and stress over dual reporting.

• What is business ethics in decision-making?

Considering moral principles when making choices, e.g., fairness, honesty, sustainability.

• Why is effective leadership important?

Motivates staff, improves performance, ensures clear direction, helps achieve objectives.

• What are the different levels in Tannenbaum and Schmidt's continuum

Telling, Selling, Consulting, Persuading, Sharing