3.2

• what are the five functions of management?

  planning, organising, directing, controlling, developing
• planning in management = drafting plan/setting objectives
• organising in management = assembling resources/ defining department structure
• directing in management = achieving business goals/ motivate staff
• controlling in management = making necessary adjustments
• developing in management = people ( maximising the costliest asset)
• proper managers understand their roles and responsibilities. they are also able to adapt their management styles to suit specific business situations.
• proper managers positively influence peers and subordinates to keep their performance aligned to corporate and functional objectives
• what is intuition?

  a 'gut feel' when quick decision is needed but can be less reliable
• what is opportunity cost?

  cost of the next best option, often when budget constraints limit managers
• what is empirical evidence?

  'cold, hard facts' rational, logical research/findings. decision is too big and important to rely on opinion/ hunch
• the process of decision making is dynamic activity which continually engages a decision maker's attention
• three internal factors that could influence decision making

  finances, product quality, skills
• three external factors that could influence decision making

  product demand, inflation, legislation
• decision trees remove guesswork, emotion, bias or lack of accuracy
• decision trees are mathematical models calculated by managaers to reveal the likely outcomes
• two advantages of decision trees

  easy to visualise, considers the risk of options
• two disadvantages of decision trees

  over simplistic, ignores qualitative aspects