Business objectives and functions Flashcards
definition of an organisation?
a social arrangement for the controlled performance of collective goals which has a boundary separating it from its environment
primary objective in profit making vs not for profit
maximise shareholder wealth vs provision of goods and services
who are the primary stakeholders?
shareholders or partners
what are secondary objectives?
objectives that support the primary objectives
what other objectives might management pursue?
profit satisficing and revenue maximisation
peter drucker- what should management be focused on? (8)
- market standing
- innovation
- productivity
- physical and financial resources
- profitability
- manager performance and development
- worker performance and development
- social responsibility
the main direction of a business is set by what?
mission
what are the elements of a mission (4)?
- why does the organisation exist- i.e for whose benefit? =PURPOSE
- what do we do and how do we do it? =STRATEGIES
- what do our people do and how do they do it?- POLICIES AND STANDARDS OF BEHAVIOUR
- what do we believe to be important- what are our core principles= VALUES
Vision?
settting out their vision of the future state of the industry or business when determining whats its mission should be
goals?
- mintzberg=the intentions behind decisions or actions
- a desired end result
qualitative goals?
aims
quantitative goals?
objectives
objectives should be SMART
- specific
- measurable
- achievable
- relevant
- time bound
what are plans?
state what should be done to achieve the operations objectives
standards and targets?
specify a desired level of performance
types of standards?
physical standard e.g. number of units produced, cost standard, quality standard
how did french and raven (followed by charles handy) classify power?
-coercive= power of physical force or punishment
-reward= based on access to or control over value resources (can also be called resource power).
-legitimate (or position)
-expert power= based on experience and qualifications ]-referent/personal= based on force of personality or charisma
negative power= the power to disrupt operations
Line manager?
has authority over a subordinate
Staff manager?
has authority in giving specialist advice to another manager or department over which they have no line authority
Functional manager?
has functional authority= a hybrid of line and staff authority e.g a brand manager will be able to demand that all departments write/design in a certain way
Project manager
has authority over project team members in respect of the project in progress
mintzbergs 3 key management roles
- the informational role
- the interpersonal role
- the decisional role
the effectiveness of any given manager will be influenced by their
authority, autonomy, leadership
what are likerts 4 basic leadership styles?
- exploitative
- benevolent -authoritative
- consultative
- participative
likerts 4 characteristics of effective managers?
employee centered
high standards but flexible in terms of methods
natural delegators with high levels of trust
encourage participative management
ray quinns types of business cultures?
human relations- flexible and inward looking
internal process culture- inward looking and control
rational goal culture- control and outward looking
open systems culture- flecibility and outward looking
taylor’s 3 assumptions about human behaviour at work?
-people are rational economic animals concerned with maximising their economic gain
people respond as individuals, not groups
people can be treated in a standardised fashion, like machines
five ‘principles’ of scientific management -taylor
- determine the best way to do a task
- select the best person to do it
- train the worker to follow set procedure closely
- give financial incentives to ensure the work is done in a prescribed way
- give all responsibility to plan and organise work to the manager, not to the worker
mcgregors theory x
individuals dislike work and avoid it where possible
coercion, control and punishment are therefore needed
individuals desire security
mcgregors theory y
physical and mental effort in work is as natural as rest or play
commitment to objectives is driven by rewards
people learn to like responsibility
herzbergs content theory?
-hygeine and motivating factors
hygeine factors are like health and safety and being paid= are expected, if not present will demotivate
motivating factors are concerned with the content of peoples jobs and need to be addressed to ensure motivation
tuckman- 4 stages of group development
forming
storming
norming
performing
belbins theory said how many roles are in a team?
8
the leader
co-ordinating and operating through others
the shaper
committed to the task- may be aggressive and challenging but will also always promote activity
the plant
thoughtful and thought provoking
the evaluator
analytcially criticises others’ ideas;brings teams down to earth
the resource investigator
social type of person, tends to pick up others ideas and add to them
the company worker
may tend to do administrative side, turns general ideas into specifics, practical and efficient
the team worker
concerned with the relationships within the team; supportive and defuses potential conflict situations
the finisher
the progress chaser ensuring that timetables are met
what is the additional role that belbin suggested adding?
the speciailist= brought in from outside the team
