9.2 BUSINESS MANAGEMENT - Management approaches

Question 1

Classical approach

Answer 1

Focuses on how to efficiently manage and organise workers to maximise productivity (output).

Question 2

Classical approach - Planning

Answer 2

DEF: The process of setting goals and deciding on the methods to achieve them.

• STRATEGIC PLANNING: long term plans (5-10 years) e.g. increase profits by 20%
• TACTICAL: mid-term planning (2-5 years) e.g. increase sales
• OPERATIONAL: plans for the day to day running of the business e.g. rosters

Question 3

Classical approach - Organising

Answer 3

DEF: the process of arranging the resources of the bus to achieve the goals.
KF:
- Determining the work that needs to be done
- Allocating resources
- Assigning work to staff members
WHY:
- To maximise productivity and efficiency.

Question 4

Classical approach - Controlling

Answer 4

DEF: The process of evaluating and modifying tasks to ensure that the set goals are being achieved.
KF:
- Forward looking
- Continuous activity 
- Influencing factors
- Dynamic process
WHY: 
For changing production process if goals aren't being achieved.

Question 5

Classical approach - hierarchical organisational structure

Answer 5

DEF: Of the nature of hierarchy, arranged in order of rank.
KF:
- Rigid lines of communication
- Numerous levels of management
- Clearly distinguished roles and responsibilities
- Hierarchical, linear flows of information
- Specialisation of labour
- A long chain of command
- Centralised control – with all strategic decisions made by senior management.

WHY:
To structure an organization using different levels of authority and a vertical link, or chain of command, between superior and subordinate levels of the organization.

Question 6

Classical approach - Autocratic leadership style

Answer 6

DEF: Relating to a ruler who has absolute power.
KF:
- Tells employees what tasks to do and how to do them.
- Make all the decisions on behalf of employees.
- Limits worker knowledge about what needs to be done
- Frequently checks employee performance
- Punitive feedback (criticism)

WHY:
It leads to quick decision-making, control over the processes and the operations of a company, etc.

Question 7

Behavioural approach

Answer 7

The behavioral approach to management, stresses that people (employees) should be the main focus of the way in which the business is organized

Question 8

Behavioural approach - Leading

Answer 8

DEF: having a vision of where the business should be in the long and short term.
KF: 
-	Detailed
-	Organised
-	Knowledge

WHY:
DETAILED:
- Makes a clear vision of where the business should be.
ORGANISATION:
- Helps the business know what needs to be done
- They know their timeline and deadline for all their tasks.
- They also know what their workers are doing and what projects are coming up.
KNOWLEDGE:
- Leaders should have a vast knowledge of the industry they are working in.
- Other people should go to leaders to ask for advice and opinions

Question 9

Behavioural approach - Motivating

Answer 9

DEF: Energising and encouraging employees to achieve the business’ goals.
KF: 
-	Effort
-	Persistence
-	Direction

WHY:
EFFORT:
- Amount of efforts in a business can represent levels of motivation.
PERSISTENCE:
- Businesses must have a persistence since motivation is continuously goal directed. Once a business’ goal is achieved, the business puts more effort to achieve a higher goal.
DIRECTION:
- Having a direction helps a business to proceed its hard work and persistence, as it determines the quality of efforts while direction determines quality of the anticipated output.

Question 10

Behavioural approach - Communication teams

Answer 10

DEF: Well-functioning teams can produce superior performance.
KF:
- Chain of command
- Span of control
WHY:
- Reduce traditional hierarchical structure.
- Establishment of market-focused teams.
- Responsibilities arranged in each work team.
- Reduces the levels of management that gives greater responsibility to individuals in the business.

Question 11

Behavioural approach - Participate/democratic leadership style

Answer 11

DEF:The manager asks for suggestions from employees and considers them in decision making.
KF:
- Asking employees for their suggestions
- Participation in decision making.
- Motivating employees.
- Effective communication.
WHY:
- Allows team to participate in the initial decision making
- Encourages employees to achieve the business goals
- Effective communication through exchanging information.

Question 12

Contingency approach - Adapting to changing circumstances

Answer 12

DES: Bus had to adapt internally and externally due to the pace of change and the complexity of the business environment.

This encourages managers to:

• Be flexible
• extract the most useful idea and practices from a wide range that best suit their business.
• Recognises the most appropriate management method an leadership style on the situation.