Business Chapter 6

Question 1

Why is management indispensable to any business ?

Answer 1

1)Management directs a business towards its goals
2)Management sets and keeps the operations of the business on a balanced course
3)Management keeps the org in equilibrium with its environment
4)Management is necessary to reach the goals of the organization at the highest possible level of productivity

Question 2

Basic resources used by an organisation

Answer 2

Human resources
Financial resources
Physical resources
Information resources

Question 2

Management definition

Answer 2

A process of activities that are carried out to enable a business to accomplish its goals by employing human, financial and physical resources for that purpose

Question 3

Management does 4 things:

Answer 3

1)It decides what has to be done
2)It decides how this should be done
3)It ordered that it be done
4)It checks that its orders have been carried out

Question 4

Fundamental tasks:

Answer 4

Planning
Organizing
Leading
Controlling

Question 5

Planning

Answer 5

Determines the mission and goals of the business, including the ways in which the goals are to be reached in the long term and resources needed for this task.

Question 6

Organizing

Answer 6

After the goals and plan have been determined, the human, financial and physical resources of the business have to be allocated by the management to the relevant departments, duties must be defined and procedures fixed, to enable the business to reach its goals

Question 7

Leading

Answer 7

Entails directing the human resources of the business and motivating them

Question 8

Control

Answer 8

Manager should constantly establish whether the business is on a proper course towards the accomplishment of its goals. Enables management to detect any deviations from the plans and to correct them.

Question 9

Levels of management

Answer 9

Top, middle, low

Question 10

Top management

Answer 10

Board of directors, partners, chief executive, managing director, control the business and in whom the final authority and responsibility for the execution of management process rests, also manages the environment within which the org operates

Question 11

Middle management

Answer 11

Functional heads, marketing manager, purchasing manager, human resource manager
should monitor environmental influences that may affect its sphere of operations

Question 12

Low management

Answer 12

Supervisory management
Day-to-day activities and tasks of a particular section ,short-term planning and implementing the plans of middle management

Question 13

Marketing management is responsible for:

Answer 13

1)Planning the activities of the marketing department
2)Organizing marketing activities
3)Assumption of leadership of marketing activities
4)Controlling marketing activities

Question 14

Functional management:

Answer 14

Specialized managers who are necessary for the different functions of the business

Question 15

Function of general management

Answer 15

Deals with the activities of top management while at the same time manifesting itself in other functions management

Question 16

Skills of management

Answer 16

1)Conceptual skills-mental capacity to view the business and its parts in a holistic manner, thinking and planning abilities.

2)Interpersonal skills-Human relation skills, ability to work with people, understand and communicate with people and to lead, motivate and develop team spirit.

3)Technical Skills-Ability to use the knowledge/techniques of particular discipline

Question 17

Roles of management

Answer 17

1)Interpersonal role
Acting as a representative figure. Leading and in the training and motivation of employees. Maintaining good relations within the org and with its public.

2)Information Role
Enables managers to obtain info from colleagues and employees who report to them, superiors to help them make decisions. Monitoring/gathering info about change, opportunities/threats that may affect their department. Managers analyze this info and pass relevant data to superiors. Managers act as spokes people in their departments .

3)Decision-making
Have to deal with and solve problems such as strikes, shortages and equipment breakdown
Managers have to decide to allocate the resources of the business
Negotiators, managers regularly interact with individuals, businesses to negotiate goals, performance standards.

4)Maintain good relation with the public

5)Lead, motivate employees

Question 18

Four main supplementary/supporting management activities are normally distinguished:

Answer 18

Gathering and processing of info to make decisions possible
Decision making
Communication
Negotiation

Question 19

Business Management

Answer 19

The science that examines all the things that affect the productive and profitable operations of a business.

Question 20

Study of actual management

Answer 20

Examines only the management process and the general management principles that enable the business to accomplish its goals and objectives as effectively as possible

Question 21

Evolution of management theory:

Answer 21

1900-The scientific school
1920-The management school
1930-The behavioral school
1945-The quantitative school
1955-The systems approach
1965-Contingency theory
1975-Strategic approach
1985-Total Quality Management
1995-Re-engineering
2010-Diversity

Question 22

Contemporary vs Classical Management

Answer 22

In the contemporary management approach, managers’ powers are obtained from those they oversee, and the people they control transfer these influences over willingly to their management. The traditional management model is centered on objectives, individual skills, and a strict level of supervision

Question 23

The scientific school

Answer 23

Classical approach
research was confined to workers and lower management levels, scientific approaches and methods could be applied in
productive ways to attain the goals of an organization.

Question 24

The management process school

Answer 24

Classical approach(Henri Fayol)
Its
method was to identify the most important functions in a business and the most
important elements of management, so that universal principles of management could
be developed for each function and element

Question 25

Six function of the management process school

Answer 25

the identification of six functions of a business:
1.The technical (production-operational management) function
2.The commercial function (purchasing and marketing)
3.The financial function
4.An accountancy function
5.A security function (protection of property)
6.The function of general management.

Question 26

Advantages of the management process school

Answer 26

*It systematises the great variety of activities and problems in a business.
*It facilitates the internal organisation of a business by classifying activities into
departments according to their functions.
*It facilitates management by making it possible to appoint people with the right
qualifications to the various functional departments.
*It makes the study of management science considerably easier by grouping similar
problems.

Question 27

The behavioral school

Answer 27

Classical approach(Elton Mayo)
psychological and sociological factors are no
less important than physical factors in the attainment of the goals of a business, increased productivity
was not always attributable

Question 28

The quantitative school

Answer 28

sees management primarily as a system of mathematical
models and processes.

Question 29

The systems approach

Answer 29

Classical approach
Managers cannot manage the separate parts independently, but should rather manage them as an integrated whole compensated for the main limitations of the previous approach

Question 30

The contingency approach

Answer 30

Contemporary approach
eliminate the defects of other theories, attempts to adapt the available techniques and
principles provided by the various management approaches to a given situation, so as to
reach the objectives of the business as productively as possible

Question 31

Strategic management

Answer 31

Contemporary approach
forces management to align the goals
and objectives of their organizations with trends in the business environment. By
focusing on the threats and opportunities in the environment, and evaluating its
strengths and weaknesses in order to overcome the threats and exploit the
opportunities of the org.

Question 32

Total Quality management

Answer 32

Contemporary approach
Revolves around the matter of quality at a higher rate of productivity

Question 33

The learning organization and the reengineering of businesses

Answer 33

Contemporary approach
Requires learning individuals
Forces the organization to focus on its core business and to outsource those activities that do not relate to the core business

Question 34

Diversity management

Answer 34

Contemporary business issues that could shape management theory in the 21st
century include corporate governance, corporate social responsibility (also
referred to as corporate citizenship) and knowledge management
Employment equity act(No.55 of 1998)