3.2 Management

• What is the primary role of managers?


  To plan, organise, and coordinate people and resources
• How do leaders differ from managers?


  Leaders decide on a direction and inspire staff, while managers have subordinates
• What are the key roles of managers?


  • Setting objectives (e.g. attendance, financial, growth)
  • Analysing data for future decisions
  • Leading human resources and staff
  • Making decisions on rewards and expansion
  • Reviewing appraisals and decision making
• What influences management and leadership styles?


  Company structure, situation, culture, tasks, employee skills, group size, manager personalities, and time frame
• What does McGregor's Theory X assume about workers?


  That workers dislike work and need to be controlled
• What is the main characteristic of Theory Y?


  It assumes that workers have initiative and self-control
• What are the characteristics of authoritarian leadership?


  • Power is concentrated with the manager
  • Communication is top-down and one-way
  • Minimal consultation and delegation
  • Use of rewards and penalties
  • Most effective with unskilled subordinates
• What defines democratic leadership?


  • Power is shared within the group
  • Greater employee involvement in decision-making
  • Emphasis on delegation and consultation
  • Leader has the final say
  • Effective with skilled and experienced subordinates
• What are the features of paternalistic leadership?


  • Leader decides what is best for employees
  • Akin to a parent/child relationship
  • Little delegation
  • Addresses employee needs
  • Results in better motivation and lower turnover
• What does laissez-faire leadership entail?


  • Leader has little input in day-to-day decisions
  • Delegates power to employees
  • Employees have freedom to make decisions
  • Effective when staff are motivated and responsible
  • Not the same as abdication
• What does the Tannenbaum-Schmidt Continuum Theory represent?


  • Degree of authority used by the leader
  • Area of freedom available to non-managers
  • Four main styles: Tells, Sells, Consults, Joins
• What does the Blake Mouton Grid assess?


  • Concern for people vs. concern for task
  • Helps map leadership styles
  • Highlights motives and impacts of leadership styles
• What is the first step in scientific decision making?


  Set the objective
• What are the advantages of scientific decision making?


  • Provides clear direction
  • Based on business logic
  • Flexible and can be reviewed
• What is non-scientific decision making based on?


  Intuition or a 'hunch'
• What are the characteristics of decision trees?


  • Good for choosing between options
  • Provides structure for investigating outcomes
  • Uses estimates and probabilities
  • Helps assess net gain from decisions
• What is the formula for Expected Value?


  Expected Value = estimated financial effect x probability
• What is the formula for Net Gain?


  Net Gain = expected value of each outcome - costs associated with the decision
• What are the advantages of decision trees?


  • Provides a clear decision
  • Evidence for finance sources
  • Logical and easy to understand
  • Considers costs and benefits
  • Assesses risks
• What are the disadvantages of decision trees?


  • Prone to error
  • Calculating probabilities can be hard
  • May be inaccurate or unreliable
  • Ignores qualitative aspects
• What influences decision making in a business?

  The business mission, ethics, risk, external environment, resource constraints, and stakeholders
• Who are the main stakeholder groups?


  • Customers
  • Employees
  • Investors/banks
  • Suppliers/distributors
  • Shareholders
  • Owners/managers
  • Competitors
  • Government
  • Local communities
  • Environmental pressure groups
  • Media
• What is stakeholder mapping used for?


  • To assess power in decision making
  • To prioritize stakeholders
  • To identify potential conflicts
• What are the needs of different stakeholders?


  • Employees: happy environment, high wage
  • Suppliers: regular orders, security
  • Customers: low price, high quality
  • Government: successful businesses for tax
  • Investors: timely repayments
• What factors affect stakeholder relationships?

  • Quality of products
  • Communication ease
  • Customer service
  • Stakeholder influence
  • Workplace environment
• How can businesses communicate with stakeholders?


  • General meetings
  • Letters and emails
  • Social networking
  • Advertising posters
  • Public forums
  • Media releases