2 - Managing a business Flashcards
What is power?
It is the ability to get things done
6 types of power?
Coercive power - Power of physical force or punishment. Withhold rewards or demote etc
Reward power - Based on access to valued resources. Managers with bonuses, time off and increased responsibility
Legitimate power - Associated with a particular position in the organisation
Expert power - Based on experience, qualifications or expertise
Referent power - Based on personality or charisma
Negative power - Power to disrupt others, refusal to communicate info or sabotage
What is authority?
The right to do something, pr to ask someone else to do it and expect it to be done
What is responsibility?
The obligation a person has to fulfil a task which has been given
What is accountability?
A persons liability to be called to account for the completion of tasks they have been given by a person with a legitimate interest in the matter
What is delegation?
Involves giving a subordinate responsibility and authority to carry out a given task, while the manager retains overall responsibility.
Who are the 4 types of managers?
Line managers - Has authority over a subordinate. Consider a production manager with authority over a production line worker
Staff manager - Has authority in giving specialist advice, even for another department where they have no line authority. HR manager giving advice to other managers etc
Functional manager - Authority is present to control performance in another department. Finance manager with authority to require timely reports from other departments.
Project manager - Has authority over project team members. Temporary and employees will have line managers who also have authority over them
What are the different managerial roles?
Informational role - Checking data received and passing it onto the team. Also being the spokesperson for their team
Interpersonal role - Acting as a leader for their team
The decisional role - This is where they allocate resources, handle disturbances, negotiate, solve problems and act as an entrepeneur
What is culture based on?
Whether business needs flexibility or control? Or Inward looking or outward looking?
What is the rational goal model of management?
A business with a rational goal culture uses reason why the business does something to make sure it is done as well as possible.
Some rational goal ideas commonly seen in organisations today are:
Systematic work methods
Detailed division of labour
Centralised planning and control - big picture view
Low involvement employment relations such as contract workers who offer flexible specialist labour
What is the internal process model of management?
Rationality - use of the most efficient means to meet the business objectives
Hierarchical lines of authority - managers have closely defined areas of authority, and have none outside those areas
Detailed rules and procedures - Tight regulations and high scrutiny businesses tend to have more rules and procedures
Division of labour - Tight limits are set on the areas of responsibility of staff
Impersonality - Appraisals of staff performance are based on objective criteria, not personal preference
Centralisation
What are the marketing variables that make up the marketing mix? 7P’s
4P’s for products and services
Product
Price
Promotion
Place
7P’s for services only
People
Processes
Physical evidence
What is market segmentation?
The division of the market into homogenous groups of potential customers who may be treated similarly for marketing purposes
Product
3 main elements of a product:
Basic or core product - a car
Actual product - a ford focus
Augmented product - ford focus with 0% finance or extended warranty
Price
Influences on the businesses pricing policy
Costs
Competitors
Customers
Corporate objectives - Prof max, return on investment, market share, match competition, drive competitors out of the market
Place
Advantages of selling direct:
No need to share profit margins
Control over ultimate sale
Speed of delivery to ultimate consumer likely to be quicker
Advantages of using intermediaries:
More efficient logistically
Costs usually lower
Consumers expect choice at point of sale
Producers may not have sufficient resources to sell direct
Promotion:
What are the 4 main types of promotion?
