acronyms term three Flashcards
features of effective management
POLC
Planning (the process of setting objectives)
Organizing (actualizing goals and plans)
Leading (influencing or motivating people to work towards business objectives)
Controlling (comparing what was intended to happen to what actually occurred)
skills of management
F VIP CARDS:
Flexibility
Vision
Interpersonal skills
Problem-solving
Communication
Adaptability to change
Reconciling the conflicting interests of stakeholders
Decision making
Strategic thinking
management approches
- classical (organising, planning controlling)
- behavioural (leading, motivating, communicating)
- contingency approach (adapting to changing circumstances)
classical approach (management approaches)
management as planning, organising and controlling:
Planning: preparation of predetermines course of action for a business
- strategic: long-term planning for 3-5 years
- tactical: medium term (1-2 years)
- operational: Short-term planning includes how the business will be run daily
Organising: involves organising workplace structure
- determining work activities
- assigning work
Controlling: process of evaluating performance and taking corrective action
HIERARCHICAL ORGANISATIONAL STRUCTURE
AUTOCRATIC LEADERSHIP STYLE
Behavioural approach (management approaches)
Management as leading motivating and communicating:
Leading: process of influencing people to work towards the businesses objectives
motivating: process of encouraging employees to get work done supportivley
communicating: exchanging information verbally and non verbally
A flat organisational structure
- teams
democratic leadership style
contingency approach
Refers to management that stresses the need for flexibility and adaptation of management practices and ideas to suit changing circumstances
Adapting to changing circumstances:
- managers are adaptable and flexible
- share vision with stakeholders
- encourages ethical business behavior
importance of a business plan
essential for business sucsess as it can help forecast the future.
A business plan should contain:
1. a clear concise statement of business goals
- Develop plans of how to achieve those goals
- reliable control standards for measuring performance
management staffing and teams
management: must mke the best use of resources to help business achieve its goals
staffing: refers to having motivated and determined employees
- to improve staffing may:
1. skills audit: establishes the current skills of employees and the future skills needed
- skills inventory - a database containing information on the skills, abilities and qualifications of existing staff
Teams: A group that collectively works together to ensure tasks are ahcived
trend analysis
the process of investigating changes over time and looking for a pattern of trend to forecast the future:
can help forecast
- potential sales revenue
- availability of labor
- total operating costs
- gross and net profits
identifying and sustaining competitive advantage
competitive advantage = strategies the business will implement to maintain competitive advantage
ELEUD
Efficiency of operations - streamline processes
Low-cost labor - occurs in asian and African regions
Economies of scale - where the business tries to reduce its costs
Use of technology - use of technology
Differentiation strategy
avoiding overextension of finance and other resources:
a business can overextend financially by:
- hiring, purchasing, or renting equipment, cars, furniture and machinery
- purchasing excess stock
- employing too many staff of the business’s current needs
This can happen by:
- not borrowing enough capital
- borrowing too much
- not having enough cashflow
using technology
refers to E-business where the Internet is used to conduct business
- online websites can assist sales
- machinery/robotics can reduce HE
- if not used business can lose a competitive advantage
economic conditions
when an economy is in a boom:
- consumers will increase their spending
- they will be confident that they have secure jobs
when an economy is in a turndown:
- consumers will not be spending as much
- rising unemployment rates
responding to internal and external influences
responding to external influences:
- transformational - a complete restructure of the business eg business location, organisational structure
- incremental change - results in minor changes usually involving a few employees and some smaller changes eg training
when a business responds to the influence of change it will undergo change in their
Business culture
Operations
Human resources
Organisational structure
managing change effectively
managing change will be effective if the business can: ISDU
- identify the need for change
- set achievable goals
- develop strategies to overcome resistance to change
- use management consultants
