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Study the information supplied and answer the questions which follow: The Shareholders and Managing Director fulfil important roles in a company - Leaving Cert Business - Question Question 1 - 2007
Question Question 1
Study the information supplied and answer the questions which follow: The Shareholders and Managing Director fulfil important roles in a company. Leadership and Mot... show full transcript
Worked Solution & Example Answer:Study the information supplied and answer the questions which follow: The Shareholders and Managing Director fulfil important roles in a company - Leaving Cert Business - Question Question 1 - 2007
Step 1
Explain the role of Shareholders in a company.
Answer
Shareholders are the owners of a company, and their primary role is to invest capital by purchasing shares. In return for their investment, they receive dividends based on the company’s profits. Shareholders possess voting rights, meaning each ordinary shareholder has one vote per share, enabling them to influence company decisions, such as the election of the Board of Directors during the Annual General Meeting (AGM). They also have limited liability, which protects their personal assets from the company's debts.
Step 2
Describe two functions of the Managing Director of a company.
Answer
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Daily Management of Operations: The Managing Director oversees the daily operations of the company, ensuring that the business runs smoothly and efficiently. This includes managing various departments and ensuring that all employees are working towards the company's goals.
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Delegation of Responsibilities: The Managing Director delegates responsibilities to department managers, empowering them to make decisions within their areas. This delegation fosters accountability and encourages managers to take ownership of their teams.
Step 3
Describe the characteristics of two leadership styles.
Answer
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Autocratic Leadership: This style is characterized by a single leader making decisions without consulting team members. The autocratic leader does not delegate authority, maintains strict control, and provides direct orders to employees, leading to quick decision-making but often resulting in low team morale.
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Democratic Leadership: In contrast, a democratic leader values the input of team members and encourages participation in decision-making. This style fosters trust and responsibility among employees, as they feel their opinions are valued, leading to higher job satisfaction.
Step 4
Describe one of the following theories of motivation: (i) Maslow's Hierarchy of Needs.
Answer
Maslow's Hierarchy of Needs is a motivational theory that outlines a five-tier model of human needs, which are often depicted as a pyramid:
- Physiological Needs: These are the basic needs for survival, such as food, water, and shelter.
- Safety Needs: Once physiological needs are met, individuals seek safety and security in their lives, which includes health and protection from danger.
- Love and Belonging Needs: People require social relationships, love, and a sense of belonging.
- Esteem Needs: After gaining acceptance, they seek esteem, recognition, and a sense of accomplishment.
- Self-Actualization Needs: At the top of the pyramid, self-actualization refers to realizing one's potential and seeking personal growth and fulfillment.
Step 5
Using examples, describe three ways in which technology has changed the role of management.
Answer
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Speed of Communication: With the advent of emails and instant messaging, communication has become faster and more efficient, enabling managers to make quick decisions and respond promptly to issues.
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Access to Worldwide Markets: Technology, especially the internet, has made it easier for companies to operate globally. Managers can connect with clients and suppliers worldwide, expanding their markets.
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Production Technology: Advances in production technology, such as Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM), have transformed manufacturing processes, allowing managers to enhance productivity and efficiency while reducing costs.