Assessment 2 definitions Flashcards
planning
Preparation of a predetermined course of action for a business
Organising
Structuring of the organisation to translate plans ad goals into actions
leading
Process of influencing or motivating people to work towards the achievement of the organisations objectives
controlling
Compares what was intended to happen with what has actually occurred
skill
Ability that comes from the knowledge, practice and talent to do something well
interpersonal skills
The skills needed to work and communicate with other people and understand their needs
communication
Exchange of information between people; the sending and receiving of messages
vision
Clear, shared sense of direction that allows people to attain a common goal
problem solving
Board set of activities involved in searching for, identifying and then implementing a course of action to correct unworkable situation
decision making
Process of identifying the options available and then choosing a specific course of action to solve a specific problem
stakeholder engagement
Refers to the businesses sharing information with and seeking input from stakeholders, and involving them in decision making
profit maximization
Occurs when there is a maximum difference between the total revenue coming into the business and total costs being paid out
market share
Refers to the business’s share of the total industry sales for a particular product
share
Part ownership of a public company
sustainable development
Occurs when the needs of the present population are met without endangering the ability of future generation to meet their own needs
staff involvement
Involving employees in the decision making process and giving the necessary skills and rewards
entrepreneurs
An individual who takes on the entrepreneurial roles within a business
motivation
Refers to the individual, internal process that directs, energises and sustains a person’s behaviour
mentoring
Process of developing another individual by offering tutoring, coaching and modelling acceptable behaviour
employee training
Refers to the process of teaching staff how to perform their job more efficiently and effectively by boosting their knowledge and skills
mass production
The process of manufacturing standardised goods on a huge scale by automation
classical approach
Stresses how best to manage and organise workers so as to improve productivity
scientific management
Approach that studies a job in great detail to discover the best way to perform it
bureaucracy
Set of rules and regulations that control a business
planning
Preparation of a predetermined course of action for a business
strategic planning
Planning for the following 3 – 5 years. This level of planning will assist in determining where in the market the business wants to be, and what the business wants to achieve in relation to its competitors
tactical planning
Flexible, adaptable planning, usually over one to two years, that assists in implementing the strategic plan
operational planning
Provides specific details about the way in which the business will operate in the short term
organising
The structuring of the organisation to translate plans and goals into action
controlling
The process of evaluating performance and taking corrective action to ensure that the set objectives are being achieved
control process
Establishing standards in line with the goals of the business, measuring the performance of the business against those standards or benchmarks, and making changes where necessary to ensure that the goals of the business have been met
management hierarchy
The arrangement that provides increasing authority at higher levels of hierarchy
autocratic leadership
Makes the decisions, dictates work methods, limits worker knowledge about what needs to be done to the next step to be performed, frequently checks employee performance and sometimes gives feedback
behavioural approach
Stresses that employees should be the main focus of the way in which the business is organised
leading
Process of influencing or motivating people to work towards the achievement of the business’s objectives
teamwork
People who interact regularly and coordinate their work towards a common goal
flatter-organisational structure
Evolved due to a ‘de-layering’ of management structures resulting in the elimination of one or more management levels
Participative /Democratic Leadership Style
Style where the manager consults with employees to ask their suggestions and then seriously considers those suggestions when making decisions.
contingency approach
Stresses the need for flexibility and adaptation of management practices and ideas to suit changing circumstances
operations
Refers to the business processes that involve transformation or more generally production
operations management
Consists of all the activities in which managers engage to produce a good or service
tangibles
Goods that can be touched
intangibles
services that cannot be touched
inputs
The resources used in the transformation process
transformed resources
Those inputs that are changed or converted in the operations process
transforming resources
Those inputs that carry out the transformation process
transformation
The conversion of inputs (resources) into outputs (goods or services)
outputs
Refer to the end result of a business’s efforts – the service or product that is delivered or provided to the consumer
quality management
The strategy which a business uses to make sure that its products meet customer expectations
quality
Refers to the degree of excellence of goods or service and its fitness for a stated purpose
quality control
Involves the use of inspections in the production process to check for problems and defects
quality assurance
Involves the use of a system so that a business achieves set standards in production
total quality management
An ongoing, business-wide commitment to excellence that is applied to every aspect of the business’s operation
quality circles
Groups of workers who meet to solve problems relating to quality
continuous improvement
Involves an ongoing commitment to achieving perfection
marketing
Process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational objectives
target market
A group of customers with similar characteristics who presently, or who many in the future purchase the product
market segmentation
Occurs when the total market is subdivided into groups of people who share one or more common characteristics
consumer buying behaviour
Refers to the decisions and actions of consumers when they purchase goods and services for personal household use
primary target market
The market segment at which most of the marketing resources are directed
secondary target market
Usually a smaller and less important market segment
niche market
Narrowly selected target market segment
marketing strategies
The actions undertaken to achieve the business’s marketing goals
marketing mix
Refers to the combination of the four elements of marketing, the four Ps that makeup the marketing strategy
product life cycle
Describes the life of a product over four stages, introduction, growth, maturity and decline
brand
A name, term, symbol or design that identifies a specific product and distinguishes it from its competitor
promotion
Refers to the methods used by a business to inform, persuade and remind customers about its products
place/distribution
Activities that make the products available to customers when and where they want to purchase them
distribution channels
Ways of getting the product to the customer
contingencies
Unanticipated events that can lead to financial difficulty. For a business to be well managed, it needs to have saved money for such events
accounting
A managerial and administrative tool for recording financial transactions, so that a summary of what has happened to business money can be traced
accountability
Occurs when a business acts in the best and highest interests of its owners. Full and complete ‘disclosure’, which means to be open and not hide the truth, ensures that the books of account are kept accurately and that the information reflected in them and which is summarised in reports is based on the true and actual transactions. AKA Stewardship
finance
Refers to how a business funds its activities– for instance where it gets the money to trade, why it chooses to use certain lenders – as well as costs, risks and benefits of different types of borrowing
financial statements
Reports that summaries transactions over a period of time
cash flow statement
A Financial statement that indicates the movement of cash receipts and cash payments resulting from transactions over a period of time
liquidity
Refers to the amount of cash a business has access to and how readily it can convert its assets into cash so that debt can be paid
Income Statement / statement of financial performance
A summary of the income earned and the expenses incurred over a period of trading. It helps users of information see exacrlt how much money has come into the business as revenue, how much has gone out as expenditure and how much has been derived as profit
gross profit
Term given to the sales less COGS
COGS
The value of stock that a business has sold to its customers
opening stock
The value of stock that the business has at the start of the financial year
closing stock
The value of stock on hand at the end of the financial year
expenses
The costs incurred in the process of acquiring or manufacturing a good or service to sell and the costs
net profit
The difference between the gross profit and operating and non-operating expenses
balance sheet
Represents a business’s assets and liabilities at a particular point in time, expressed in money terms and represents the net worth of the business
assets
Items of value owned by the business that can be given a monetary value
liabilities
Items of debt owed to other organisations (e.g banks) and include loans, accounts to be paid by the business, mortgages, cred card debt and accumulated expenses
owners equity
Funds contributed by the owner to establish and build the business. AKA Capital
human resources management
The effective management of the formal relationship between the employer and the employees
human resource/employment cycle
Covers all stages in the process of employing staff, from initial planning through to recruitment, selection, induction, training and development, performance management and eventual separation of employment
