AQA A Level Business Studies - Unit 2 - Key Terms

AQA A Level Business Studies - Unit 2

Key Terms

Leaders - Have people follow them. Invent, innovate and inspires team.

Mintzburg's 10 roles of management - Interpersonal management: Figurehead. Leader. Liaison. Informational management: Monitor, Disseminator, Spokesperson. Decisional management: Entrepreneur, Disturbance handler, Resource allocator, Negotiator.

Blake Mouton grid - Plots the managers degree of task-centredness and person centredness, and identifies 5 leaderships style out of them.

The Tannedbaum-schmidt continuum - devised to illustrate a range of potential leadership and management styles - between level of freedom in relation to decision making and level of authority retained by manager.

Renumerations - Payment system adopted by b to pay and reward its employees. similar to commission.

Decisions - a conclusion or resolution reached after consideration.

Scientific decision-making - A logical approach is used to make a decision, including the collection and consideration of operations. Encourages collection and is evidence based. Encourages consideration of more than one possibility. Provides support for decision. -Time consuming. Reduces creativity. Biased or outdated. Used when: Lack of experience, Persuasion, Lot of data, Risk of averse.

Intuitive decision-making - based on individual instinct or gut feeling. Taps into gut instinct and talents. Allows for creative thinking. Quick. -Subject to bias. Consider one course of action. Used when: Quick decision needs to be taken, Vast experience, Lack of data, If risk takers.

Risks - The possibility that the desired outcome may not be achieved.

Rewards - When a business makes financial and non-financial gains as a result of not making a decision.

Profit maximisation - The ability for company to achieve a maximum profit with low operating expenses.

Profit Satisficing - Where the owners of a business set a minimum acceptable levels of achievement in terms of revenue and profit.

Influences on the relationship with stakeholders - Objectives (profit etc), Stakeholder power and interest, Capital, Management style, Ownership (business forms), External environment, Media pressure.

Investment appraisal - collection of techniques used to identify the attractiveness of an investment. Based on a single forecast of future cash flow, giving a false impression of certainty.

Delegation - occurs when someone with authority confers…