Chapter 1: Managers and Management Flashcards

1
Q

What is an organisation?

A

It is the arrangement of people brought together to accomplish a specific purpose.

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2
Q

What four characteristics do all organisations share?

A

. Goals
. People
. Structure
. Operations systems

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3
Q

Explain the following characteristic that all organisations share: Goals

A

A distinctive purpose is a characteristic shared by all organisations and is typically expressed as a goal (or set of goals).

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4
Q

Explain the following characteristic that all organisations share: People

A

The distinct purpose of an organisation is met via the people in an organisation. This is because the people make decisions and engage in work activities which, in turn, make an organisations goals a reality.

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5
Q

Explain the following characteristic that all organisations share: Structure

A

“The structure is the setting within which managers manage”. It not only helps to set boundaries for employees (limits their behaviour), but also defines what they’re supposed to do (as jobs descriptions might be created).

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6
Q

Explain the following characteristic that all organisations share: Operations systems

A

This involves transforming (through various processes, procedures and work activities) inputs (such as: people, capital, technology and materials) into outputs (finished goods and services).

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7
Q

What are non-managerial employees?

A

People who work directly on a job or task and have no responsibility for overseeing the work of others.

Eg. Associates and team members.

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8
Q

What are managers?

A

Individuals in an organisation who direct and oversee the activities of others. This is in order to achieve the organisations goals.

A managers job isn’t about personal achievement - but instead about helping others do their work.

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9
Q

What titles do managers have?

A

. Top managers
. Middle managers
. First-line managers
. Team leaders

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10
Q

What are top managers?

A

These are individuals who are responsible for making decisions about the direction/future of the organisation. They also establish policies as well as philosophies that impact all organisational members.

Eg. Titles such as Vice President, president, managing director, chief operating officer, chief executive officer or chair person of the board.

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11
Q

What are middle managers?

A

These are individuals who are found between the lowest and top levels of the organisation. They often manage other managers and maybe some non-managerial employees. Furthermore, they are typically responsible for translating goals set by top managers into specific details that lower-level managers will ensure are carried out.

Titles include department or agency head, project leader, unit chief, district manager, division manager or store manager.

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12
Q

What are first-line managers?

A

They are supervisors responsible for directing the day-to-day activities of non-managerial employees.

First-line managers are often called supervisors, shift managers, office managers, department managers or unit coordinators.

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13
Q

What are team leaders?

A

They are individuals who are responsible for managing and facilitating the activities of the work team. They are a special category of lower-level managers that have become more common as organisations have moved to using employee work teams to do work.

Team leaders will typically report to a first-line manager.

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14
Q

What is scientific management?

A

This is the use of scientific methods to define the “one best way” for a job to be done.

Frederick Winslow Taylor is known as “father” of scientific management.

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15
Q

What is management?

A

This is the process of getting things done efficiently and effectively. This can be done through and with other people.

The PROCESS refers to a set of ongoing and interrelated activities. When it comes to management, it refers to the primary activities or functions that managers perform.

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16
Q

What is efficiency?

A

This refers to doing things right or getting the most output from the least amount of inputs. Because managers deal with scarce inputs - including resources such as people, money and equipment - they’re concerned with the efficient use of those resources.

Managers want to minimise resource usage and thus resource costs.

⬇️ inputs and same outputs = ⬆️ efficiency
same inputs and ⬆️outputs = ⬆️ efficiency

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17
Q

What is effectiveness?

A

This refers to doing the right thing, or completing activities so that organisational goals are attained.

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18
Q

Explain the difference between efficiency and effectiveness.

A

Efficiency is concerned with the means of getting things done, whilst effectiveness is concerned with the ends, or attainment of organisational goals.

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19
Q

What is good management concerned with?

A

It is concerned with attaining goals (effectiveness) and doing so as efficiently as possible.

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20
Q

How does poor management happen?

A

Poor management is most often due to both inefficiency and ineffectiveness or due to effectiveness achieved without regard for efficiency.

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21
Q

Explain why there is need for balance between efficiency and effectiveness.

A

Focusing on just effectiveness can waste time, energy and other resources.

Although focusing solely on effectiveness can result in producing a more sophisticated and longer lasting product, it is likely to lead to high labour and input costs. These in turn result in a business having to charger higher prices and potentially go broke.

Conversely, if a business is focused exclusively on efficiency it may produce products (eg. deal with calls quickly) quickly, however it will provide poor quality and make customers unhappy.

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22
Q

What are the three approaches developed by management researchers to describe what managers do?

A

. Functions
. Roles
. Skills

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23
Q

Explain the functions approach?

A

According to this approach managers perform certain activities or functions as they direct and oversee others’ work.

This approach as first propose by Henri Fayol (French industrialist in the 20th century) .

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24
Q

What did Henri Fayol suggest?

A
That managers perform 5 management activities:
. Plan
. Organise
. Command
. Coordinate
. Control
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25
Q

What are the 4 management function today?

A
Henri Fayols 5 suggested management functions have been condensed to:
. Planning
. Organising 
. Leading
. Controlling 

POLC

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26
Q

Explain the following management function: planning

A

This includes defining goals, establishing strategy and developing plans to coordinate activities.

Planning ensues that the work to be done is kept in proper focus and that organisational members keep their attention on what is most important.

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27
Q

Explain the following management function: organising

A

Managers are also responsible for arranging and structuring work to accomplish the organisations goals. This function is calls organising.

This includes determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom and where decisions are to be made.

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28
Q

Explain the following management function: leading

A

This includes motivating employees, directing the activities of others, selecting the most effective communication channel and resolving conflicts.

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29
Q

Explain the following management function: controlling

A

This is the process of monitoring performance, comparing it with goals and correcting any significant deviations.

This is basically where evaluation takes place to ensure things are going as planned. Any significant deviations will require that the manager get work back on track.

30
Q

When is the functions approach useful?

A

It is useful for understanding the fundamentals of management. It is still quite popular due to its simplicity and clarity (able to classify the thousands of activities performed by managers).

31
Q

Explain the roles approach.

A

According to the roles approach, managers have specific categories of managerial actions or behaviour. They are often grouped under the three primary headings:
. Interpersonal relationships
. Transfer of information and
. Decisions making

32
Q

Where did the management roles approach come from?

A

It came from the research conducted by Henry Mintzberg in the late 1960’s. His discoveries challenged long-held notions about the manager’s job - eg. He found that the managers he studied had little time for reflective thinking because they encountered constant interruptions.

33
Q

What did Mintzberg conclude?

A

He concluded that managers perform 10 different but interrelated roles. These roles are are grouped around interpersonal relationships, the transfer of information and decision making.

34
Q

What are the interpersonal roles?

A

They involve people (subordinates and persons outside the organisation) and other duties that are ceremonial and symbolic in nature.

35
Q

What are the informational roles?

A

They involve collecting, receiving and disseminating information.

36
Q

What are the decisional roles?

A

These entail making decisions or choices.

37
Q

Recently what did Mintzberg conclude?

A

“Basically, managing is about influencing action. It’s about helping organisations and units to get things done, which means action.”

38
Q

What are the 10 interrelated roles Mintzberg found?

A

Interpersonal:
. Figurehead
. Leader
. Liaison

Informational:
. Monitor
. Disseminator
. Spokesperson

Decisional:
. Entrepreneur 
. Disturbance handler
. Resource allocator 
. Negotiator
39
Q

Explain the skills approach.

A

This describes what managers do by looking at the characteristic they need for managing. Research on managerial competencies has identified 9 managerial competencies.

40
Q

What are the 9 managerial competencies?

A
  1. Traditional functions (including tasked such as decision making, short-term planning, goal setting, monitoring, team building etc.)
  2. Task orientation (including elements such as urgency, decisiveness, initiative etc.)
  3. Personal orientation (including things like compassion, assertiveness, politeness, customer focus etc.)
  4. Dependability (personal responsibility, trustworthiness, loyalty, professionalism etc.)
  5. Open-mindedness (tolerance, adaptability, captive thinking etc.)
  6. Emotional control (resilience and stress management)
  7. Communication (listening, oral communication, public presentation etc.)
  8. Developing self and others (performance assessment, self-development, providing developmental feedback etc.)
  9. Occupational acumen and concerns (technical proficiencies, being concerned with quality and quantity, financial concerns etc.)
41
Q

What is another way (besides 9 managerial competencies) to think about managerial characteristics?

A

To consider the skills and drive that managers need to have to perform a managerial role.

Robert L. Katz and others have proposed that managers must posses and use four critical management skills in management.

42
Q

What are the 4 critical management skills in managing?

A

. Conceptual skills
. Interpersonal skills
. Technical skills
. Political skills

43
Q

What are conceptual skills?

A

A manager’s ability to analyse and diagnose complex situations. They help managers see how things fit together and facilitate making good decisions.

44
Q

What are interpersonal skills?

A

A managers ability to work with, understand, mentor and motivate others, both individually and in groups.

Because managers get things done with and through other people, they must have good interpersonal skills to communicate, motivate, mentor and delegate.

45
Q

What are technical skills?

A

Job-specific knowledge and techniques needed to perform work tasks.

Top managers - related to knowledge of the industry and a general understanding of the organisations processed and products.

Middle and low level managers - related to the specific knowledge required in the areas where they work.

46
Q

What are political skills?

A

A managers ability to build a power base and establish the right connections.

Political skills represent the ability to change one’s situation by influencing others at work, with the overall objective of attaining valued goals from the situation.

Managers who have and know how to use political skills tend to be better at getting resources for their groups.

47
Q

What do managers also need?

A

The drive or motivation to manage - an internal force that drives people to take, enjoy and perform well in managerial positions.

Motivation to manage has 6 components.

48
Q

What are the 6 components for motivation to manage?

A

. Attitudes to superiors
. Desire to engage in competitive situations
. Desire to exercise power over subordinates and direct their behaviour
. Desire to behave assertively
. Engage in highly public activities
. Organise administrative tasks

49
Q

What does motivation to manage influence?

A

It influences how comfortably and how well individuals perform managerial roles.

A person may have strong technical, interpersonal and conceptual skills but a weak motivation to manage would make them unsuited to a managerial role.

50
Q

What do all managers do, regardless of the level they sit?

A

Make decisions. They do POLC but the amount of time dedicated to each activity will differ.

51
Q

What are the different measures that can define organisational size?

A

. Number of employees
. Annual sales
. Total assets

52
Q

Define organisational size according to the Australian Bureau of Statistics.

A

Small business - and independent business that employs between 5 and 19 people.

Medium business - an independent business that employs between 20 and 199 people.

Large business - an independent business that employs at least 200 people.

53
Q

Profit versus not-for-profit.

A

An organisations profit orientation affects management by determining the focus of organisational activities in efficiency and effectiveness.

54
Q

What is profit?

A

Profit is the difference between an organisations revenues and operating costs.

55
Q

Why are businesses profit orientated?

A

Business are profit orientated because they fund their operations using capital provided by investors such as company owners, shareholders and financial institutions in exchange for a share of future profits.

56
Q

How do businesses generate profit?

A

By maximising the revenues they generate from sales and/or minimising their operating costs.

If a business cannot generate sufficient profits it will eventually become bankrupt.

57
Q

What do managers in profit-orientated businesses focus on?

A

Efficiency in minimising costs and effectiveness in generating revenues so as to maximise profits.

58
Q

How are not-for-profit organisations different to for-profit organisations?

A

Not-for-profit organisations (such as government agencies, schools, hospitals, charities and community groups) have a different focus on efficiency and effectiveness. This is because they do not rely on profits for survival.

59
Q

What do not-for-profit organisations do?

A

They use funds (provided by governments, sponsors or donors) to provide goods and services such as health care, education and support to members of the community.

60
Q

What do managers in not-for-profit organisations focus on?

A

Efficiency in minimising costs and effectiveness in delivering services in order to help as many members of the community as possible.

61
Q

What are managers recognising about customers?

A

Managers are recognising that delivering consistent high-quality customer service is essential for survival and success in today’s competitive environment and that employees are an important part of that equation.

(It is not up to marketers to worry about the customers).

62
Q

Why are ethics and social responsibility important to a managers job?

A

They are important to a managers job because society expects managers and organisations to behave in ethical and socially responsible ways.

63
Q

What does it mean to be socially responsible?

A

Going above/beyond legal economic obligations to act in ways that are good for society.

The way an organisation manages its social responsibilities affects the economies, societies and natural environment in which it operates.

64
Q

Understanding how an organisation defines it social responsibilities.

A

Understanding how an organisation defines its social responsibilities and the way in which it meets them affects its sustainability and whether it is considered to act in am ethical manner.

65
Q

What does it mean to be ethical?

A

The duty to follow a morally correct path.

66
Q

What has recently become important to the manager’s job?

A

Social media

Employees don’t just use it in their personal time, as they also use it for work purposes. As a result, managers need to understand and manage the power and peril of social media.

67
Q

What is social media?

A

Forms of electronic communication through which users create online communities to share ideas, information, personal messages and other content.

68
Q

Why is sustainability important to a manager’s job?

A

Because meeting the needs of the people today shouldn’t compromising the ability of future generations to meet their own needs.

69
Q

What does managing for sustainability require?

A

It requires managers and organisations to consider and respond strategically to a wide range of environmental and societal challenges as well as develop new ideas about how to respond appropriately.

It means doing old things in new ways, and doing completely new things.

70
Q

What is employee engagement?

A

When employees are connected to, satisfied with and enthusiastic about their jobs.

The Gallup Organisations has found that relationships with managers is the largest factor in employee engagement (70%).