business unit 3 aos1 definitions Flashcards
consultative management style
where the manager consults employees before making decisions
management styles types
autocratic, persuasive, consultative, participative, laissez-faire
participative management style
where the manager unites with staff to make decisions together
autocratic management style
where the manager tells the staff what decisions have been made
laissez faire management style
where the employees assume total responsibility and control of operations
management styles
the behaviour and attitude of the manager when making decisions, directing staff, and implementing plans to achieve business objectives
persuasive management style
where the manager attempts to ‘sell’ the decisions made
communication
the ability to transfer information from a sender to a receiver and listen to feedback
decision making
the ability to identify options available and choose a specific course of action from the alternatives
delegation
the transfer of authority and responsibility from a manager to employee to carry out specific activities
interpersonal skills
the ability to deal or lialise with people and build positive relationships with staff
leading
the ability to influence or motivate people to work towards achieving a business objective
planning
the ability to define business objectives and decide on the strategies to achieve them
management skills
the abilities or competencies that managers use to achieve business objectives
corporate culture
the values, ideas, expectations and beliefs shared by members of the business
directors
individuals who have overall responsibility for managing the company’s business activities
interest groups
organisations who attempt to directly influence a business’s activities, policies, or processes
key performance indicators
specific criteria used to measure the efficiency and effectiveness of a business’s performance
efficiency
how well a business uses resources to achieve objectives
effectiveness
the degree to which a business has achieved its stated objectives
competitive advantage
when a firm, industry, or economy has a lower cost price structure than its rivals
competitors
individuals/businesses that offer rival goods
contingency management theory
stresses the need for flexibility and the adaptation of management styles to suit the situation
limited liability
when the shareholders in a company wont be held responsible for the debts of the business
partnership
a business owned by two or more people with unlimited liability
private listed company
an incorporated business that has a minimum of one shareholder and a maximum of 50 non-employee shareholders
public listed company
an incorporated business with a minimum of one shareholder and no maximum
social enterprise
a business with the objectives of fulfilling a social need
sole trader
business owned and operated by one person with unlimited liability
government business enterprise
A business that’s government owned and operated
liquidation
the process of converting a business’s assets into money to pay off debts, with remaining assets being distributed to shareholders
incorporation
the process that businesses go through to become a registered company and separate legal entity
unlimited liability
when the business owner is personally responsible for all the business’s debts
market share
the percentage of total sales in a given market/industry that’s held by a business
tactical planning
flexible medium term planning over one-two years that assists in implementing the strategic plan
strategic planning
long term planning over two-five years
strategies
the actions that a business takes to achieve its objectives
suppliers
businesses or individuals who supply resources to a business so it can conduct its operations
shareholders
owners of a business that have bought its shares and expect returns back
stakeholders
group or individuals who interact with a business and have a vested interest in the business
characteristics of stakeholders
interests, potential conflicts, csr considerations
types of businesses
- Sole trader
- Partnership
- Private limited company
- Public listed company
- Social enterprise
- Government business enterprise
Areas of management responsibility
operations, finance, human resources, sales and marketing, technology support
management skills types (6)
- Communicating
- Delegating
- Planning
- Leading
- Decision making
- Interpersonal
business objective types (5)
- To make a profit
- To increase market share
- To fulfil a market need
- To fulfil a social need
- To meet shareholder expectations
