3.2 Management

what are the managers roles

set objectives and success criteria

review/analyse data

review impacts of decisions

select strategies

give examples of factors influencing types of management

external environment (eg decline in economy may require autocratic approach to ensure efficiency)

the culture of the business

the skill of the workforce

what is an autocratic leader

one who keeps control of decisions made and closely supervises employees

what is a democratic leader

one who discusses and consults decisions with employees

they may delegate decisions giving authority and power to subordinates

what is the Tannenbaum and Schmidt order

tell - sell - suggest - consult - join - delegate - abdicate

what are the advantages of scientific decision making

reduced risk of mistakes being made

it provides guidance for managers with less intuition

what are the disadvantages of scientific decision making

time consuming

experience of staff may not be considered

poor/unreliable data can affect quality of the decision

give examples of 2 factors influencing whether scientific decision making is used or not

availability and reliability of data

how experienced managers are

The risk a business is willing to accept

what is a decision tree

a mathematical model used to help managers make decisions that uses probabilities to calculate likely outcomes

what does a decision tree allow a business to do

compare outcomes of two or more options or decisions

how do decision trees work

each probability x revenue

(add those numbers up) - revenue = expected value

compare each decisions expected value - which ones better

what is meant by a manager’s intuition

they don't need data to inform their decisions instead they use their gut instinct

positives of managers using their intuition

decisions can be made quickly as data doesn't need to be collected

negatives of managers using their intuition

if staff is lacking experience mistakes can be made

decisions could also be made illogically as data isn’t used

how can a lack of data availability/unreliability of data influence intuition decision making

managers using their intuition may be more appropriate - this is high risk

influences on what type of decision making is used

less risk and uncertainty

reward for managers

opportunity cost

business objectives/missions

the business’ ethical position

external environment

resources available

give examples of ways that local communities ca be affected by businesses decisions

local jobs made available

traffic congestion occuring due to deliveries

how are customers effected by business decisions

the decisions dictate which products and services sold are available to them

they’re effected by prices charged

what can businesses use to manage their relationship with stakeholders

communicating information to them so they stay informed

consulting them on decisions

how can consultation be used with stakeholders

to investigate the views and feelings of them so that they feel involved in any decisions made by the business

what strategy is used for stakeholders with high power and low interest - stakeholder mapping

keep satisfied

what strategy is used for stakeholders with low power and low interest - stakeholder mapping

monitor them

what strategy is used for stakeholders with high power and high interest - stakeholder mapping

actively engage

what strategy is used for stakeholders with low power and high interest - stakeholder mapping

keep informed

what factors can influence the decisions a business makes

mission

objectives

ethics

the external environment including competition

resource constraints

what is a laissez faire leadership style

a manager who allows employees get on with their jobs with as little interference as possible

what is a paternalistic leadership style

leader acts like a parent or guardian, providing guidance and protection to employees

they usually expect loyalty and compliance in return