2.3 Business Management

Which leadership style is the least convenient for a company with a very large workforce that needs quick decision-making?

• Autocratic

• Democratic

• Situational

• Paternalistic

Answer explanation

Democratic leadership involves employees in the decision-making process. If the company has many employees, each decision will take a long time.

In a company where leaders have a situational leadership style, what leadership style would you recommend adopting in a crisis?

• Paternalistic

• Democratic

• Autocratic

• Laissez-Faire

Answer explanation

Situational leadership style means using the right leadership style for the right situation. For example, a crisis requires a more autocratic style because decision-making has to be quick and workers have to follow the instructions. 

Under which conditions might a laissez-faire leadership style be most appropriate?

• The launch of a new airline with freshly hired flight attendants and pilots.

• A university humanities department with highly experienced professors.

• A team working on a software development project for the first time under strict time constraints.

• A bank opening a new branch in a foreign market.

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Answer explanation

Laissez-faire leadership tends to be more suitable in situations where staff members are highly competent and work well independently, such as college professors. The software development team is not the best option since the team is under a strict deadline, requiring complex guidance as opposed to free rein. The airline and bank options are unlikely to have laissez-faire leadership because these situations involve a high degree of risk and require more coordination and control.

Which of the following are the key functions of management?

• Commandeering, organising, communicating, educating, measuring

• Commanding, controlling, supporting, surveilling, delegating

• Planning, ordering, mentoring, connecting, disrupting

• Planning, commanding, controlling, coordinating, organising

KEY TERM

The art of inspiring and motivating other people towards achieving a common organizational aim or vision.

• Leaderhip

• Management

WHICH MANAGEMENT FUNCTION???

Managers have the authority to give instructions to their subordinates to carry out various tasks. They have the ability and authority to make decisions but are also held responsible for the outcome of the tasks and projects they lead.

• Commanding

• Planning

• Organizing

• Coordinating

Laissez-faire is a Latin phrase meaning __?

• 'be free'

• ‘to leave alone’

• 'leader beware'

• 'people first'

Steve Jobs (Apple) and Ray Kroc (McDonald’s) were both known to be __ leaders

• Autocratic

• Democratic

• Situational

• Paternalistic

Answer explanation

This statement was on Think IB

True or False?

The key roles of managers are commanding, controlling, coordinating, organizing, and planning.

• True

• False

According to Henri Fayol, which of the following is not a key function of management?

• Commanding

• Budgeting

• Planning

• Organizing

Answer explanation

Budgeting is not a key management task as this can be delegated to budget holders, such as department managers.