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Supply chain studies year 1 > Business Management 1 - Chapter 4 > Flashcards

Business Management 1 - Chapter 4 Flashcards

1
Q

PLANNING
INTRODUCTION
what is the first primary management task conducted by management?

A

Planning

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2
Q

PLANNING
INTRODUCTION
List 3 types of planning

A
  • Strategic Planning
  • Functional Planning
  • Operational planning
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3
Q

PLANNING
INTRODUCTION
List the reasons why management is indispensable to any business.

A
  • Management is necessary to direct a business toward its objectives.
  • Management is necessary to set and keep the operations of the business on a balanced course.
  • Management is also necessary to keep the organisation in equilibrium with its environment.
  • Management is necessary to reach the goals of the organisation, because it maintains the organisation’s equilibrium and helps it to attain its goals synergistically and at the highest possible level of productivity.
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4
Q

PLANNING
STRATEGIC PLANNING
What does strategic planning include?

A

Strategic planning includes developing a vision, mission statement and long-term objectives.

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5
Q

PLANNING
STRATEGIC PLANNING
with regards to strategic planning, how is the mission vision and long-term objectives developed?

A

This is done by considering the norms, values and philosophy of management and the employees of the organisation, its internal strengths and weakness the external opportunities and threats in the organisation’s business environment.

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6
Q

PLANNING
STRATEGIC PLANNING
In South African organisations what does the term “long-term” generally mean?

A

In South African organisations “long-term” generally means that it will take between one and ten years to achieve the objective.

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7
Q

PLANNING
STRATEGIC PLANNING
When is strategic plans commonly reviewed by management?

A

Strategic plans are commonly reviewed and revised every year so that there is always a two-year, five-year or even ten-year plan.

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8
Q

PLANNING
STRATEGIC PLANNING
What does reviewing and revising the strategic plans enable the organisation to do?

A

This allows the organisation to be future oriented and able to adapt to changes in the business environment.

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9
Q

PLANNING
STRATEGIC PLANNING
In the strategic process what is Top management responsible for?

A

In the strategic process, top management develops the long-term plans

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10
Q

PLANNING
STRATEGIC PLANNING
In the strategic process what is middle and first level management responsible for?

A

In the strategic process middle and first level managers develop the tactical (medium-term) and operational (short-term) plans.

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11
Q

PLANNING
STRATEGIC PLANNING
List the steps in the strategic planning process.

A
  • Develop the organisation’s vision (dream) and mission (reason for existence) and long-term goals.
  • Analyse the business environment (market and macro-environment as well as micro-environment).
  • Set goals (long term).
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12
Q

PLANNING
STRATEGIC PLANNING
What can a vision be described as?

A

The vision can be described as a proactive dream of an ideal situation in the business environment. A vision is therefore a picture of the ideal organisation in the future and will not change over the short term.

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13
Q

PLANNING
STRATEGIC PLANNING
What does the vision of an organisation do?

A

It is a driving force or passion directing the organisation’s future and gives employees direction on what the organisation strives for.

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14
Q

PLANNING
STRATEGIC PLANNING
Who is responsible for creating the vision in an organisation?

A

It is the responsibility of managers in their role as leaders to create a vision for the organisation and to ensure that all employees support this dream (vision).

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15
Q

PLANNING
STRATEGIC PLANNING
What can a mission be described as?

A

A mission can best be described as the main objective that distinguishes one organisation from other similar organisations in the industry.

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16
Q

PLANNING
STRATEGIC PLANNING
Where is the organisations mission recorded?

A

This is done in the mission statement by indicating the main reasons for the organisation’s existence.

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17
Q

PLANNING
STRATEGIC PLANNING
What is the effect on an organisation that does not have a complete and well defined mission statement?

A

Without a complete and well- defined mission statement it becomes very difficult for an organisation to create or maintain a competitive advantage.

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18
Q

PLANNING
STRATEGIC PLANNING
When analysing the business environment what does management need to conduct?

A

When analysing the business environment, managers need to conduct a SWOT analysis.

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19
Q

PLANNING
STRATEGIC PLANNING
What does the abbreviation “SWOT” stand for?

A
  • Strengths
  • Weaknesses
  • Opportunities
  • Threats
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20
Q

PLANNING
STRATEGIC PLANNING
What does a SWOT analysis entail?

A

A SWOT analysis includes an internal analysis of the Strengths and Weaknesses of the organisation (micro-environment), as well as the external analysis of the Opportunities and Threats in the organisation’s market and macro business environment.

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21
Q

PLANNING
STRATEGIC PLANNING
List a few factors to consider when doing an internal analysis

A

Factors to consider when doing an internal analysis will include the organisation’s products and services, financial position, marketing and sales, human resources, organizational structure, current objectives and strategies.

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22
Q

PLANNING
STRATEGIC PLANNING
What does Long-term goals indicate?

A

Long-term goals indicate desired results when pursuing the organisation’s mission statement and are normally for longer periods than an organisation’s fiscal year.

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23
Q

PLANNING
STRATEGIC PLANNING
List 3 levels at which strategies are formulated with regards to long-term goals?

A
  • corporate level
  • business level
  • functional level
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24
Q

PLANNING
STRATEGIC PLANNING
CORPORATE LEVEL
Which strategies are formulated at the corporate level?

A

At the corporate level, grand strategies are formulated for the overall performance of the organisation.

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25
Q

PLANNING
STRATEGIC PLANNING
CORPORATE LEVEL
What does Grand strategies include?

A

These include growth, stability, turn-around and combination strategies.

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26
Q

PLANNING
STRATEGIC PLANNING
CORPORATE LEVEL
What does Growth strategies entail?

A

Growth strategies attempt to increase the organisation’s size through increased sales. Examples of growth strategies are concentration, integration, diversification, mergers and acquisitions.

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27
Q

PLANNING
STRATEGIC PLANNING
CORPORATE LEVEL
What does stability strategies entail?

A

A stability strategy attempts to hold or maintain the organisation’s present size or to grow slowly.

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28
Q

PLANNING
STRATEGIC PLANNING
CORPORATE LEVEL
What does turn-around strategies entail?

A

A turn-around strategy is an attempt to reverse a declining business as soon as possible.

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29
Q

PLANNING
STRATEGIC PLANNING
CORPORATE LEVEL
What does combination strategies entail?

A

An organisation can consider combining growth,stability and turn-around strategies for different lines of business in the organisation.

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30
Q

PLANNING
STRATEGIC PLANNING
BUSINESS LEVEL
Which strategies are formulated at the business level?

A

At the business level, generic strategies identified by Porter (2003) are formulated

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31
Q

PLANNING
STRATEGIC PLANNING
BUSINESS LEVEL
What does Generic strategies include?

A

Generic strategies include cost leadership, differentiation and focus strategy.

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32
Q

PLANNING
STRATEGIC PLANNING
BUSINESS LEVEL
What does Generic strategies allow the organisation to do?

A

Generic strategies allow the organisation to create or maintain a competitive advantage.

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33
Q

PLANNING
STRATEGIC PLANNING
BUSINESS LEVEL
True or False - an organisation consisting of more than one business unit will have only one generic strategy.

A

An organisation consisting of more than one business unit, each business unit will have its own generic strategy, linking up with the grand strategy at corporate level.

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34
Q

PLANNING
STRATEGIC PLANNING
FUNCTIONAL LEVEL
Which strategies are formulated at the Functional level and why?

A

At the functional level, strategies are developed for each management function (e.g. marketing and sales, logistics and operations) and must be aligned with the business unit generic strategy as well as the corporate level grand strategy, to ensure success and a competitive advantage.

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35
Q

PLANNING
STRATEGIC PLANNING
FUNCTIONAL LEVEL
Who is responsible for the implementation of the planned strategies?

A

The implementation of the planned strategies is the responsibility of first level managers.

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36
Q

PLANNING
STRATEGIC PLANNING
FUNCTIONAL LEVEL
What is required from higher level management to ensure the successful implementation of strategic planning?

A

An effective support system provided by higher level managers is of great importance to ensure the successful implementation of strategic planning.

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37
Q

PLANNING
FUNCTIONAL PLANNING
What does Functional Planning refer to?

A

Functional planning refers to medium term planning

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38
Q

PLANNING
FUNCTIONAL PLANNING
Who carries out the functional planning of an organisation?

A

Functional planning is carried out by middle management (in cooperation with top management)

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39
Q

PLANNING
FUNCTIONAL PLANNING
Why is functional planning carried and and for who?

A

Functional planning is carried out for the various functional departments to realize their objectives (which are derived from the long-term goals)

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40
Q

PLANNING
FUNCTIONAL PLANNING
Name a few examples of Functional strategies or Functional plans.

A

Examples of functional strategies or functional plans include human resources strategy on employment equity, marketing strategy on product positioning and financial strategy on profit management and dividend payments.

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41
Q

PLANNING
OPERATIONAL PLANNING
What does Operational Planning refer to?

A

Operational plans have short-term objectives that should be met in less than one year.

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42
Q

PLANNING
OPERATIONAL PLANNING
Who carries out the Operational planning of an organisation?

A

Middle and first-level managers develop operational plans

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43
Q

PLANNING
OPERATIONAL PLANNING
Name a few examples of operation plans.

A

Examples include plans that reflect the day-to-day activities of the organisation, such as equipment maintenance in order to maximize plant production or sending sales staff to training seminars.

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44
Q

PLANNING
OPERATIONAL PLANNING
What is the focus of tactical (functional) plans?

A

Tactical (Functional) plans have an intermediate range between strategy and operational plans and focus on functional planning issues as discussed in the previous sections.

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45
Q

PLANNING
OPERATIONAL PLANNING
True or false - Many organisations combine tactical (functional) and operational plans and describe them both as tactical and operational.

A

True

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46
Q

PLANNING
OPERATIONAL PLANNING
What will the organisational structure indicate with regards to strategic, tactical (functional) and operational planning?

A

The organisational structure of the organisation will indicate whether a distinction is made only between strategic and operational planning (applicable to flat organisation structures) or between strategic, tactical (functional) and operational planning (applicable to high organisational structures).

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47
Q

PLANNING
LEVELS OF PLANNING
List the 3 levels at which developing strategies takes place

A
  • corporate level
  • business level
  • functional level
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48
Q

PLANNING
LEVELS OF PLANNING
What is the Corporate level plan/strategy and what is the focus of the plan, give an example?

A

The corporate-level strategy is the plan for managing multiple lines of businesses. This includes broad strategies for the organisation as a whole, such as Woolworths or McCarthy Retail, each of which consists of a variety of independent businesses.

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49
Q

PLANNING
LEVELS OF PLANNING
What is the Business level plan/strategy and what is the focus of the plan, give an example?

A

The business level strategy is the plan for managing one line of business, for example Game Stores or Dion. This strategy focuses on the product line or service provided by one of the enterprises.

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50
Q

PLANNING
LEVELS OF PLANNING
What is the Functional level plan/strategy and what is the focus of the plan, give an example?

A

The functional level strategy is the plan for managing one functional area of the business, for example the marketing or financial division.

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51
Q

PLANNING
THE PLANNING PROCESS
What makes planning successful in terms of goal achievement based on appropriate strategies and tactics?

A

if the allocation of resources (eg human, capital and technology) is well planned.

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52
Q

PLANNING
THE PLANNING PROCESS
What does planning allow managers to do?

A

Planning allows management to identify opportunities, anticipate and avoid problems (threats) and develop courses of action with the related risks involved.

53
Q

PLANNING
THE PLANNING PROCESS
what does an organisations general goals include?

A

These goals include adapting and innovating in order to create desirable change, improving productivity and maintaining organizational stability.

54
Q

PLANNING
THE PLANNING PROCESS
what does achieving the organisations general goals enable the organisation to do?

A

Achieving these goals should enable the organisation to achieve future performance, including long-term growth, profitability and survival in a growing, turbulent business environment.

55
Q

PLANNING
THE PLANNING PROCESS
List the reasons Why planning is so important to management?

A
  • Planning gives direction to the organisation and its employees
  • Planning allows for the use of advanced technology in all business processes.
  • Planning ensures that all related entities (departments, teams, functions) interact effectively I order to establish synergy in practice.
  • Planning forces all managers to look towards the future.
56
Q

PLANNING
THE PLANNING PROCESS
How many steps are there in the planning process?

A

7 steps

57
Q

PLANNING
THE PLANNING PROCESS
List the 7 steps in the planning process

A

Step 1: This step is the awareness of opportunities.
Step 2: Develop a mission and vision for the organisation.
Step 3: Develop your planning premises.
Step 4: Search for the alternate courses of action (or plans) that will help you reach your objective.
Step 5: You must now evaluate each alternative with its use of resources, ease of implementation, impact on other departments, and effectiveness.
Step 6: Select the plan you will use.
Step 7: The final step is to convert the plan into a budget, where necessary.

58
Q

PLANNING
THE PLANNING PROCESS
What does “Step 1: This step is the awareness of opportunities.” in the planning process entail?

A

Analyse the macro and market environments (Part three) for changes that affect your organisation. Identify opportunities and threats to your organisation. Be aware of what the customer (whether internal or external) wants from the section, department, and organisation as a whole.

59
Q

PLANNING
THE PLANNING PROCESS
What does “Step 2: Develop a mission and vision for the organisation.” in the planning process entail?

A

Where do we want to be, what we want to accomplish and by when? Develop purpose statements for each functional department. They must be based on the mission statement and show its contribution to the organisation. Set objectives or goals for the organisation as a whole and each of its functional areas. Clearly state the results to be achieved.

60
Q

PLANNING
THE PLANNING PROCESS
What does “Step 3: Develop your planning premises.” in the planning process entail?

A

They are assumptions the management team make about changes in the macro and market environments. Existing organisation strengths and weaknesses, policies and plans are also considered. Forecasts of possible environmental changes are critical inputs to this process.

61
Q

PLANNING
THE PLANNING PROCESS
What does “Step 4: Search for the alternate courses of action (or plans) that will help you reach your objective.” in the planning process entail?

A

Search for the alternate courses of action (or plans) that will help you reach your objective. Several courses of action are often available to reach an objective.

62
Q

PLANNING
THE PLANNING PROCESS
What does “Step 5: You must now evaluate each alternative with its use of resources, ease of implementation, impact on other departments, and effectiveness.” in the planning process entail?

A

You must now evaluate each alternative with its use of resources, ease of implementation, impact on other departments, and effectiveness.

63
Q

PLANNING
THE PLANNING PROCESS
What does “Step 6: Select the plan you will use.” in the planning process entail?

A

you will have to think of supporting plans to make the main plan work. At middle manager, supervisor, and operator levels, other sections and departments will frequently be involved. (This occurs because you are all working to satisfy customers’ needs).

64
Q

PLANNING
THE PLANNING PROCESS
What does “Step 7: The final step is to convert the plan into a budget, where necessary.” in the planning process entail?

A

Some objectives must be converted into financial results, and the resources and actions needed to achieve them must also be put into financial terms.

65
Q

ORGANISING

What does organising entail?

A

Organising entails structuring the activities of the organisation to facilitate the attainment of its objectives.

66
Q

ORGANISING
ORGANISING CONCEPTS
How many organising concept are there?

A

7 organising concepts

67
Q

ORGANISING
ORGANISING CONCEPTS
List the 7 organising concepts

A
  • Unity of command
  • Chain of command
  • Span of control
  • Division of labour
  • Coordination
  • Responsibility and authority
  • Delegation
68
Q

ORGANISING
ORGANISING CONCEPTS
Briefly explain Unity of command?

A

This means that each employee should report to only one boss or superior to whom he or she is directly responsible. This allows employees to know who is giving direction and to whom he or she reports.

69
Q

ORGANISING
ORGANISING CONCEPTS
Briefly explain Chain of command?

A

Chain of command is the clear line of authority running from top level of management to the first level of management, including non-managerial employees within a particular organisation. This is a vertical separation between levels based on differences in authority and responsibility.

70
Q

ORGANISING
ORGANISING CONCEPTS
Briefly explain Span of control?

A

This refers to the number of employees reporting to a manager. The number of employees reporting to manager should be limited to a number that can effectively be supervised.

71
Q

ORGANISING
ORGANISING CONCEPTS
Briefly explain Division of labour?

A

Specialization, or the degree to which a person’s work is limited to one or a few tasks, becomes more pronounced as we move down the organizational hierarchy With the division of labour, employees have specialized jobs, and related functions are grouped together under a single manager.

72
Q

ORGANISING
ORGANISING CONCEPTS
Briefly explain Coordination?

A

This means that all departments and individuals within the organisation should work together to accomplish the strategic, tactical and operational objectives and plans. Coordination requires conceptual skills in order to understand the greater organisation.

73
Q

ORGANISING
ORGANISING CONCEPTS
Briefly explain Responsibility and authority?

A

All employees should be given the authority needed to meet their responsibilities and should be held accountable for meeting them .It is therefore extremely important that each employee’s responsibility and authority are clearly defined.

74
Q

ORGANISING
ORGANISING CONCEPTS
Briefly explain Delegation?

A

Delegation is the process of assigning responsibility and authority for accomplishing objectives. Responsibility and authority are delegated down the chain of command from top management to enable managers to concentrate on more important issues or to get more work done

75
Q

ORGANISING
ORGANISING CONCEPTS
Define responsibility

A

Responsibility can be defined as the obligation to achieve objectives by performing required activities.

76
Q

ORGANISING
ORGANISING CONCEPTS
What does accountability ensure?

A

Accountability ensures that individuals meet their responsibilities.

77
Q

ORGANISING
ORGANISING CONCEPTS
Briefly explain Authority

A

Authority is the right to make decisions, issue orders or utilize resources.

78
Q

ORGANISING
ORGANIZATIONAL DESIGN
Describe Organizational structure?

A

Organizational structure can be described as a formal system of working relationships that both separates and integrates tasks.

79
Q

ORGANISING
ORGANIZATIONAL DESIGN
what is separation of tasks?

A

Separation of tasks makes clear who should do what.

80
Q

ORGANISING
ORGANIZATIONAL DESIGN
what is integration of tasks?

A

and integration of tasks indicates how efforts should interact and interrelate.

81
Q

ORGANISING
ORGANIZATIONAL DESIGN
With regards to the interaction of organising, as a management task, when can planning and leading take place?

A

Planning can be implemented and leading can take place only once human resources are assigned to tasks.

82
Q

ORGANISING
ORGANIZATIONAL DESIGN
With regards to the interaction of organising, as a management task, when can leading be effective?

A

Leading can be effective only once clear responsibilities and authority are allocated to employees.

83
Q

ORGANISING
ORGANIZATIONAL DESIGN
With regards to the interaction of organising, as a management task, when can Controlling take place?

A

Controlling can take place once procedures are established for collecting and evaluating information to help managers make decisions, evaluate performance and solve problems

84
Q

ORGANISING
ORGANIZATIONAL DESIGN
Describe Departmentalization?

A

Departmentalization can be described as the grouping of related activities into units.

85
Q

ORGANISING
ORGANIZATIONAL DESIGN
Departments can be created with which two focuses?

A

Departments can be created with an internal or external focus.

86
Q

ORGANISING
ORGANIZATIONAL DESIGN
What would an internal focused department result in?

A

An internal focus would result in functional departmentalization.

87
Q

ORGANISING
ORGANIZATIONAL DESIGN
What would an external focused department result in?

A

An external focus would result in product, customer, or geographic departmentalization.

88
Q

ORGANISING
ORGANIZATIONAL DESIGN
List the reasons Why the organising component is so important in any organisation?

A
  • It systematises tasks, resources, methods and procedures
  • It spreads the workload evenly and according to ability
  • It ensures the productive application and utilisation of resources
  • It allows individuals to concentrate on their field of expertise
  • It is necessary for coordinating activities within the organisation
89
Q

ORGANISING
ORGANIZATIONAL DESIGN
Describe how to organise management activities?

A

Organising means that management has to:
• develop mechanisms to put the strategy or plan into effect.
• make arrangements to determine what activities will be carried out.
• determine what resources will be employed.
• determine who will perform the various activities.

90
Q

LEADING

Define Leadership

A

Leadership may be defined as “the process by which an individual exerts influence over other people and inspires, motivates, and directs their activities to help achieve group or organisational goals” (Jones, et al, 1998: 403).

91
Q

LEADING

Give another definition of leadership

A

Another definition proposed by Smit and de Cronje (2011) is “That management function that activates people to do things willingly”.

92
Q

LEADING

What ability does charismatic leaders have?

A

Charismatic leaders have the ability to enable ordinary people to achieve extra- ordinary results. They are known for their capacity to inspire their employees to over-achieve.

93
Q

LEADING

Name some of the characteristic qualities of the charismatic leader.

A

Some of the characteristic qualities of the charismatic leader are: self- confidence, a clear vision, extra-ordinary behaviour and environmental sensitivity.

94
Q

LEADING
THE NATURE AND ELEMENTS OF LEADING
What needs to be communicated by leaders to their followers?

A

Leaders have to communicate their vision, strategies and expectations to their followers.

95
Q

LEADING
THE NATURE AND ELEMENTS OF LEADING
True or false - Leadership is a complex process which directly impacts on the performance of an organisation.

A

True

96
Q

LEADING
THE NATURE AND ELEMENTS OF LEADING
List 5 elements of leadership

A
  • Authority
  • Power
  • Influence
  • Delegation
  • Responsibility and Accountability
97
Q

LEADING
THE NATURE AND ELEMENTS OF LEADING
What does Authority provide a leader?

A

provides the leader with the right, by virtue of his/her position within the organisation, to give instructions and delegate work to subordinates.

98
Q

LEADING
THE NATURE AND ELEMENTS OF LEADING
What does power refer to with regards to the elements of leadership?

A

refers to the leader’s ability to influence (without necessarily using his/her authority).

99
Q

LEADING
THE NATURE AND ELEMENTS OF LEADING
How many types of power exists with regards to leadership?

A

5 types of power

100
Q

LEADING
THE NATURE AND ELEMENTS OF LEADING
List the 5 types of power exerted by leaders?

A
  • legitimate,
  • reward,
  • coercive,
  • referent and
  • expert power
101
Q

LEADING
THE NATURE AND ELEMENTS OF LEADING
What does influence involve with regards to the elements of leadership?

A

involves using authority and power in a manner which inspires and motivates subordinates to take action

102
Q

LEADING
THE NATURE AND ELEMENTS OF LEADING
What does delegation refer to with regards to the elements of leadership?

A

leader allocates a part of his/her own task to a subordinate to perform together with the necessary authority to execute it.

103
Q

LEADING
THE NATURE AND ELEMENTS OF LEADING
What does responsibility and accountability refer to with regards to the elements of leadership?

A

leaders are responsible for carrying out his tasks and must account for his/her performance

104
Q

LEADING
TYPES OF POWER
Define power

A

Power is the ability to influence the behaviour of others.

105
Q

LEADING
TYPES OF POWER
Who identified the 5 types of power exerted by leaders?

A

John French and Bertram Raven

106
Q

LEADING
TYPES OF POWER
Briefly explain Legitimate power

A

This is based on the leader’s formal position in the organisation’s hierarchy. Legitimate power is the same as authority.

107
Q

LEADING
TYPES OF POWER
Briefly explain Reward power

A

This is the power to give or withhold rewards such as
• a salary increase
• bonuses
• recognition
• interesting assignments
The more important these rewards are to subordinates, the greater will be the reward power of the leader.

108
Q

LEADING
TYPES OF POWER
Briefly explain Coercive power

A 
This is the ability of a leader to obtain compliance through fear of punishment. Punishment may take the form of
• official reprimands,
• less desirable work assignments,
• pay cuts,
• demotions,
• suspensions
• or even termination.
Coercive power is usually less effective than reward power. Some employees respond to coercion by falsifying performance reports or stealing company property rather than improving their performance
109
Q

LEADING
TYPES OF POWER
Briefly explain Referent power

A

This refers to personal power. The followers are apt to like, admire, and want to emulate the leader. Subordinates will follow the leader because they like and respect him /her. In other words the leader has “charisma” which makes this person attractive. Nelson Mandela has much referent power.

110
Q

LEADING
TYPES OF POWER
Briefly explain Expert power

A

This is power based on specialised knowledge and expertise. The more important the information, and the fewer people who possess it, the greater the power of the person who commands it .

111
Q

CONTROLLING

Define Control.

A

Control can be defined as the management task that ensures the coordination and effective functioning of all the organizational activities, so that formulated organisational objectives are implemented and pursued according to plan.

112
Q

CONTROLLING
TYPES OF CONTROL
How many types of organizational control are there?

A

There are three types of organizational control.

113
Q

CONTROLLING
TYPES OF CONTROL
List the 3 types of organizational control.

A
  • pre-control or proactive control,
  • concurrent or steering control and
  • post or reactive control.
114
Q

CONTROLLING
TYPES OF CONTROL
What does pre-control or proactive control focus on?

A

Pre-control, focuses on inputs (human resources, materials, capital, technology and entrepreneurship)

115
Q

CONTROLLING
TYPES OF CONTROL
What does concurrent or steering control focus on?

A

steering control focuses on the transformation process(production process and service process)

116
Q

CONTROLLING
TYPES OF CONTROL
What does post or reactive control focus on?

A

post control focuses on outputs(produced goods and services)

117
Q

CONTROLLING
STEPS IN THE CONTROL PROCESS
List the steps in the control process.

A
  • Setting of performance standards according to formulated objectives.
  • Measuring of actual performance.
  • Comparing actual performance to standards.
  • Taking corrective action if necessary.
118
Q

CONTROLLING
CRITERIA FOR EFFECTIVE CONTROL
list 9 criteria for effective control.

A
  • Control systems should be linked to the desired objectives of the organisation.
  • The control process must be objective in order to eliminate subjectivity.
  • The control process must be completed by considering all relevant factors and evaluating what is supposed to be evaluated.
  • Timely control provides information when it is needed most.
  • Acceptable control is recognized by employees as necessary and appropriate for establishing and maintaining good performance.
  • All individuals exposed to a control system must fully understand the meaning of the system and specifically the implications of the set standards.
  • The cost-benefit scenario regarding control must be clearly evaluated in
  • order to establish the economic viability of the measure.
  • Control is of no use if the control measures indicate deviations, but no applicable corrective action follows.
119
Q

THINK POINT

Briefly summarise the fundamentals tasks of management

A
  • Planning entails determining what the objectives and goals of the enterprise are.
  • Organising means establishing the structures and processes required to achieve those objectives.
  • Leading involves directing, equipping and motivating employees to achieve the objectives.
  • Control means determining whether the objectives have been achieved.
120
Q

MANAGERIAL DECISION MAKING

Briefly explain decision making

A

Decision making is the process of making a choice between various alternatives in order to select the most appropriate alternative to solve the problem or utilize the opportunity.

121
Q

MANAGERIAL DECISION MAKING
True or False - the ability to solve problems in innovative ways through decision-making is one of the essential management roles and skills.

A

True

122
Q

MANAGERIAL DECISION MAKING
True or False - Decision making is a primary management task that assists managers in the process of planning, organising, leading and controlling.

A

False - Decision making is a supportive secondary management task that assists managers in the process of planning, organising, leading and controlling.

123
Q

MANAGERIAL DECISION MAKING
TYPES OF DECISIONS
List 3 types of decisions.

A
  • Routine decisions
  • Adaptive decisions
  • Innovative decisions
124
Q

MANAGERIAL DECISION MAKING
TYPES OF DECISIONS
Briefly explain Routine decisions.

A

Routine decisions are described as a selection or choice in response to relatively well-defined and common problems and alternative solutions.
Such decisions are made under conditions of low risk and a high degree of certainty, using organizational policies, rules and procedures as a frame of reference, for example, ordering stock on a monthly basis.

125
Q

MANAGERIAL DECISION MAKING
TYPES OF DECISIONS
Briefly explain Adaptive decisions.

A

Adaptive decisions are choices under conditions of average levels of risk and uncertainty.
Adaptive decisions are decisions made in order to continuously adapt to changes and can involve improving past routine decisions and practices. Continuous improvement is a core component of the learning organisation.

126
Q

MANAGERIAL DECISION MAKING
TYPES OF DECISIONS
Briefly explain Innovative decisions.

A

Innovative decisions are choices under conditions of high risk and uncertainty. These problems involve decisions about unusual and unknown problems and hence require the development of creative solutions.

127
Q

MANAGERIAL DECISION MAKING
THE RATIONAL DECISION MAKING PROCESS
How many steps are there in the rational decision making process?

A

7 steps in the rational decision making process.

128
Q

MANAGERIAL DECISION MAKING
THE RATIONAL DECISION MAKING PROCESS
List the 7 steps in the rational decision making process.

A

Step 1: Definition and diagnosis of the problem.
Step 2: Setting of goals and objectives.
Step 3: Searching for alternative solutions.
Step 4: Comparing and evaluating alternative solutions.
Step 5: Choosing from among alternative solutions.
Step 6: Implementing the solutions selected.
Step 7: Follow up and control.

Supply chain studies year 1 (28 decks)

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