Business management 2.0 Flashcards
What is the definition of management?
The process of coordinating people and other resources to achieve the goals of an organization.
How do managers add value?
Create value by delivering goods and services that make the
customers feel better.
Increasing the relationship between customer and organisation by providing goods/services that they require and will benefit from therefore adding value.
What is the hierarchy of management?
- General managers
- Line managers
- Staff managers
- Project managers
- Entrepreneurs
These can be organised by a senior manager.
What is a general manager?
Responsible for overall unit performance and relies on
managers in charge of each function.
small Org may have one or two general managers.
What is a line manager?
In charge of a function which creates value directly by supplying products or services to customers. They and their staff are in direct contact with customers.
What is a staff manager?
In charge of finance, hr, operations, and marketing who
support the line managers. Not usually in direct contact with
external customers.
What is a project manager?
In charge of temporary teams created to plan/ implement
change. Short term and go back to line job when change complete
What is an entrepreneur?
People who can see opportunities in the market. Mobilize
resources quickly to deliver a profitable product or
service.
How do managers aim to influence businesses?
Processes of managing
– how people work together, what they say or do to complete
their task
Tasks of managing
– actual things managers must do, a duty schedule, a piece of software, a report
Shaping contexts
– (environment, situation) – the setting in which people work
How do managers influence the business?
(Planning)
Planning – overall direction of work.
How do managers influence the business?
(Organising)
Allocating resources, time, effort
How do managers influence the business?
(Activating/Leading)
Generating effort and commitment
towards objectives.
How do managers influence the business?
(controlling)
Monitor progress, compare with a plan,
and adjust if needed.
What is the purpose of planning?
Clarify direction
Motivate
Use resources effectively
Increase control
What are the 5 generic elements of planning?
Gathering info
Setting goal
Specifying what had to be done to achieve said goal
Implementing what must be done
Monitoring progress
How would you gather info?
Informal- from casual encounters
Formal- analysis of economic and market trends
Competitive- five forces analysis
General- PESTEL analysis
Internal sources- customer data
External sources-public (census analysis) Private (market research)
SWOT
What are the five forces?
Threats of new entrants
Threats of substitutes
Bargaining power of buyers
Bargaining power of suppliers
Rivalry amongst existing competitors
Other planning techniques?
Critical success analysis-Aspects of strategy that
must be achieved to secure comparative advantages.
Forecasting-Using past to predict the future.
Sensitivity analysis-Test effects of change in a variable. What are the +/- effects of tax rates on sales?
Scenario planning-How alternatives and plausible futures could affect business. How external forces such as war, technological change, climate change,
Why do businesses set goals?
Goals (or objectives) give a task focus.
Goals with a set timetable provide a reference point for other decisions.
Ensuring that goals are motivational.
What is decision-making?
Decisions are choices about how to act in relation to organisational inputs, outputs, and transformation processes.
What decisions do managers make?
What should be done
* How should it be done
* When and by Whom should it be done
* Is the choice working?
What are the diverse types of decisions?
A commitment to action (use of resources)
* Strategic or operational
* Programmed or non-programmed
* Dependent or independent
What is autocratic decision-making?
Managers make the decision themself with only the information currently available to them, without requiring any further input from their team
What is an information-seeking decision-making style?
Managers collect the information they need from their staff/colleagues but still make the decision themselves
What is consulting decision-making?
Manager shares the problem and seeks suggestions from individuals one at a time, but still decides alone
What is negotiating decision-making?
Negotiating is like consulting, but it involves those consulted, discussing the decision amongst themselves. Although the manager still decides alone
What is group decision-making?
The group is more democratic. The problem is shared, and the group decides, with the manager acting more like a chairperson
What are the advantages and disadvantages of the vroom yetton model?
Flexible and can be used in many situations.
* There are also issues regarding the ability to
function with a large team or group of
people
What is the definition of communication?
Communication is the exchange of information through written or spoken words, symbols
and actions to reach a mutual understanding
What is a sender?
The person who initiates the conversation
What is encoding?
Process of selecting certain words or non-verbal methods (symbols, signs, body gestures) to translate the information so it can be communicated
What is a communication channel?
How the message will be delivered. You should find the
most suitable to make the message effective and avoid it being misinterpreted
What is a receiver?
The receiver is the person the message is for
What is decoding?
The receiver interprets the message to try and understand it.
What is feedback?
How the receiver makes sure they have interpreted the message correctly as the sender intended it.
What is noise?
The communication barrier or barriers that prevent effective
communication.
