AQA A level business Unit 2

authority

authority

power to carry through an action

communication

exchange of information between parties

decentralisation

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

decision tree

model that represents the likely outcomes for a business of a number of courses of action

delegation

passing authority down the organisational hierarchy

empowerment

providing subordinates with means to exercise power

ethics

moral principles, should underpin decisions

external environment

external forces that influence business activity

leadership

functions of ruling, guiding and inspiring others

management

getting things done through others

net gains

expected value of an action minus costs

non-programmed decisions

decisions that require unique solutions

opportunity cost

The next best alternative foregone

probability

change of a particular event occurring

programmed decisions

familiar and routine decisions

risk

chance of incurring misfortune or loss

scientific decision making

based on data and uses rational approach

social responsibility

duties a business has towards stakeholders groups

stakeholder engagement

process where managers involve groups in decisions that effect them

stakeholders

groups with an interest in a business

uncertainty

unpredictable situations with lack of knowledge

Blake Mouton Grid

people or task oriented

Tannenbaum Schmidt continuum

set objectives, analyse, lead, make decisions, review

What managers do

set objectives, analyse, lead, make decisions, review

PESTLE

Political, Economic, Social, Technological, Legal, Environmental

data needs:

reliability, timely, quantity

internal & external reasons to review decisions

corporate culture, skills and employees, lack financial control

management styles

authoritarian, laissez-faire, paternalistic, democratic, bureaucratic, tannenbaum schmidt, blake mouton, mcgregor x, mcgregor y

McGregor X

workers are lazy and need supervisions

McGregor Y

workers are self motivated problem solvers

Authoritarian

tells employees what to do

Laissez-faire

lets employees make decisions

paternalistic

steps in on decisions when needed

democratic

listens to employees about decisions

Blake Mouton types

country club, team, produce or perish, impoverished, middle of the road

influence leadership style

structure, situation, culture, task, employees, time

strategic decision

setting overall plan

tactical decision

day to day decision

expected value

probability multiplied by outcome

stakeholder expectations

win win or win lose

corporate social responsibility

commitment to contribute to community and environment

country club leader

high concern for people, low concern for task

team leader

high concern for people, high concern for task

impoverished leader

low concern for people, low concern for task

authoritarian

low concern for people, high concern for task

middle of the road leader

medium concern for people, medium concern for task