AH Business Management

Question 1

What are Fayol’s functions of a manager?

Answer 1

• Planning
• Organising
• Commanding
• C-ordinating
• Controlling

Question 2

Name any of Fayol’s Principals of Management

Answer 2

• Division of Labour
• Authority
• Discipline
• Unity of Command
• Unity of Direction
• Subordination
• Remuneration
• Centralisation
• Scalar Chain
• Order
• Equity

Question 3

What are Mintzberg’s 3 types of relationship?

Answer 3

• Interpersonal
• Informational
• Decisional

Question 4

Taylor believed people were motivated by more than money

Answer 4

True or False

False – Taylor believed paying people by how efficient they were was the only way to motivate them

Question 5

Describe 2 benefits of scientific management.

Answer 5

Tasks can be measured accurately
* Workers are specialised
* Hierarchical structure can lead to promotions
* Increased productivity
* Decisions are made quicker due to less employee involvement.

Question 6

Describe 2 drawbacks of scientific management

Answer 6

• Workers are viewed as machines.
• Carrot and Stick approach
• Employees are demotivated
• Employees don’t feel valued
• Jobs are boring and repetitive.

Question 7

Why is the classical school still relevant today? Give an example

Answer 7

Many organisations still use this approach in dividing work into smaller chunks eg fast food restaurants, mass manufacturing,

Question 8

Explain the Hawthorne Effect?

Answer 8

Workers performance improves because they are being studied.

Question 9

Describe McGregor’s Theory X

Answer 9

Authoritarian approach

Employees must be led and will resist change

Question 10

Describe McGregor’s Theory Y

Answer 10

• Participative Approach
• Employees do not resist change
• Employees participate in decision making

Question 11

Describe barriers to change.

Answer 11

• Employee Fear
• Limited Resources
• Uncertainty
• Resistance
• Lack of skills/experience

Question 12

Describe Kurt Lewin’s stages of change

Answer 12

• Unfreezing
• Changing
• Refreezing
• Evaluation

Question 13

Give an advantage of a top-down approach to change

Answer 13

• Management are able to make decisions based on objectives
• Works best in a crisis
• An efficient method when change is inevitable.

Question 14

Describe approaches to managing change.

Answer 14

• Action-Centred
• Negotiated
• Participative
• Piecemeal

Question 15

Give an advantage of a top-down approach to change.

Answer 15

• Management are able to make decisions based on objectives
• Works best in a crisis
• An efficient method when change is inevitable.

Question 16

Give an advantage of an action-centred approach change

Answer 16

• Allows solutions to be tried out
• Explores different options
• Allows employee input

Question 17

Give an advantage of the piece-meal approach to change

Answer 17

• Employees get used to change being implemented incrementally

Small change mean less resistance

Gradual change is easier to control.

Question 18

Describe
the role of the change agent.

Answer 18

Responsible for bringing about change.

They work out the drivers and resistors

Manage a budget

Educate and inspire employees

Negotiate with unions

Question 19

Describe the Equality Act 2010.

Answer 19

Prohibits discrimination on the basis of 9 characteristics

Question 20

How does the Equality Act 2010 affect the HR Department?

Answer 20

• Wording of job adverts
• Where jobs are advertised –eg not in single sex publications
• Guaranteed Interview Scheme
• Reasonable adjustments

Question 21

Describe the impact of a diverse workforce.

Answer 21

• Increased creativity
• Employees feel included
• Customers relate better to staff of the same culture

Question 22

Describe reasons for Globalisation.

Answer 22

• Removes trade barriers
• Increases target markets
• Low cost travel
• Opportunities in other markets

Question 23

Describe Foreign Direct Investment?

Answer 23

A company sets up or purchases operations in another country

Question 24

Describe the impact of transfer pricing on an organisation.

Answer 24

• Lower tax liability
• Damaged reputation
• Increased profits and dividends for shareholders

Question 25

Describe the advantages of a MNC on the host country.

Answer 25

• GDP can increase
• Creates employment
• Increased taxes for the government
• Can use transfer pricing

Question 26

Describe the disadvantages of a MNC on the host country.

Answer 26

• Profits go back to the home country
• Can exert political pressure
• May exploit local labour/environment

Question 27

What does ASEAN stand for?

Answer 27

Association of South East Asian Nationals

Question 28

What is the impact of the ASEAN on UK businesses?

Answer 28

• Cheaper materials
• New technologies
• 2nd largest user of Facebook – generates interest in UK brands

Question 29

Describe disadvantages of ASEAN on UK Businesses.

Answer 29

• Price wars
• Ability of China to buy up UK businesses
• Transport costs
• Cultural diversity eg language

Question 30

Describe ways to demonstrate corporate social responsibility.

Answer 30

Donations to charity
Investing in staff
Reducing energy consumption
Minimising waste
Environmentally
friendly

Question 31

Describe a advantages of CSR.

Answer 31

• Good reputation
• Attract customers
• Used as a marketing tool
• Attract employees

Question 32

Describe fiscal policy?

Answer 32

Government policies affecting taxation and spending eg
Income tax ,VAT corporation tax

Question 33

Describe Monetary Policy?

Answer 33

Measure taken to control spending through interest rates set by the Bank of England