Leadership and Management Revision

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Questions and Answers

What is the main purpose of asset stripping?

To sell a company's assets for a profit (correct)

To reduce the number of employees in a company

To improve the operational capacity of a company

To maximize the value of a company's assets

What is the main goal of asset management?

To reduce the number of employees in a company

To improve the operational capacity of a company

To maximize the value of a company's assets (correct)

To minimize the value of a company's assets

What is the recommended approach to leadership styles?

Use a combination of leadership styles based on individuals and situations (correct)

Follow a single leadership style

Always use an autocratic leadership style

Always use a democratic leadership style

What is the main assumption of Theory X?

Humans dislike work and avoid it if possible Signup and view all the answers

What is the main assumption of Theory Y?

Humans are highly motivated and self-directing Signup and view all the answers

What is the potential consequence of asset stripping for stakeholders?

Diminishing stock value and loss of jobs Signup and view all the answers

What type of leadership style is focused on achieving goals and maximizing profits?

Transactional leadership Signup and view all the answers

What is the primary goal of financial management?

To maximize profits Signup and view all the answers

What type of leadership approach is often characterized by a rigid structure, strict rules, and a lack of creativity?

Bureaucratic Signup and view all the answers

Which of the following is a characteristic of Theory Y?

Employees are self-motivated and have a high level of autonomy Signup and view all the answers

Which type of leadership is best suited for situations where quick decisions are needed and close supervision is necessary?

Autocratic Signup and view all the answers

What is a common disadvantage of Autocratic leadership?

Low trust and morale Signup and view all the answers

Which type of leadership approach is often associated with a focus on performance and rewards and punishment?

Transactional Signup and view all the answers

What is a common advantage of Bureaucratic leadership?

Consistency and reliability Signup and view all the answers

What is a characteristic of Theory X?

Employees are motivated by the fear of punishment Signup and view all the answers

Which type of leadership is best suited for industries that require high levels of creativity and innovation?

Theory Y Signup and view all the answers

Study Notes

Business Finance

Asset stripping: buying a company to sell its assets for a profit, leaving the remaining company without operational capacity, raising ethical concerns.
Asset management: externally managing a company's assets to maximize value and achieve goals, including investment, operational, and risk management, and strategic planning.

Leadership Styles

No single leadership style is suitable for all situations; a combination of styles should be applied based on individuals and situations.
Theory X: assumes people work for money and security, dislike work, and avoid it if possible.
Theory Y: assumes workers are highly motivated and self-directing, wanting to achieve their potential with the help of a manager.

Autocratic Leadership

Authoritarian leader with complete control over individuals and groups.
Decisions based on personal ideas with little input from others.
Group expected to follow the leader's decisions without question.
Advantages: effective in crises, uncertain situations, and when quick decisions are needed.
Disadvantages: can lead to conflict, low trust, and morale, and talent may leave.

Bureaucratic Leadership

Rigid rules, standardized processes, and division of labor and responsibilities.
Decisions made in a pyramid hierarchy with little room for creativity.
Advantages: consistency, role clarity, control, and stability.
Disadvantages: slow decision-making, lack of motivation, and red tape.

Transactional Leadership

Focus on performance, clear short-term goals, and rewards and punishment for meeting or failing to meet goals.
Assumes workers are motivated by rewards and punishment.
Requires close monitoring and control of employees.
Advantages: motivated employees, clear expectations, and control and stability.
Disadvantages: low innovation, short-term vision, and reliance on leader direction.