CHAPTER 2: Managing a business

Question 1

WHAT IS MANAGEMENT?

Answer 1

Getting things done through other people.

Question 2

The need for management:

Answer 2

Objectives have to be set for the organization

Somebody has to monitor progress and results

Somebody has to communicate and sustain corporate values, ethics and
operating principles

Somebody has to look after the interests of the owners and other stakeholders

Question 3

In a buz,

Answer 3

managers act on behalf of shareholders. Shareholders

rarely interfere, as long as the buz delivers profits yoy

Question 4

In a public sector organization,

Answer 4

management acts on behalf of the gov

Question 5

Power:

Answer 5

The ability to get thing done

Question 6

Coercive power:

Answer 6

the power of physical force or punishment

Question 7

Reward (resource) power:

Answer 7

based on control over valued resources

Question 8

Legitimate (position) power:

Answer 8

associated with a particular position in the organization

Question 9

Expert power:

Answer 9

based on experience, qualifications or expertise

Question 10

Referent (personal) power:

Answer 10

based on force of personality, which can attract, influence or inspire other people

Question 11

Negative power:

Answer 11

the power to disrupt operations

Question 12

Authority:

Answer 12

the right to do something, or to ask someone else to do it
and expect it to be done.

another word for position
(legitimate) power

Question 13

Managerial authority is exercised in:

Answer 13

Making decisions within the scope of authority

Assigning tasks to subordinates, and expecting satisfactory performance of
these tasks

Question 14

Responsibility:

Answer 14

The obligation a person has to fulfill a task which

they have been given

Question 15

Accountability:

Answer 15

a person’s liability to be called to account for the fulfillment of tasks they have been given by persons with a legitimate
interest in the matter

A person is responsible for a piece of work when he or she is required to ensure that the work is done

The same person is accountable to a superior when he or she is given work by that superior

Question 16

Delegation:

Answer 16

a manager may make subordinates responsible for
work, but remain accountable to his or her own manager for ensuring that the work is done. Appropriate decision-making authority must be delegated alongside responsibility

Question 17

Can be classified according to the types of authority they hold:

Answer 17

A line manager has authority over a subordinate

A staff manager has authority in giving specialist advice to another manager
or department, over which they have no line authority

A functional manager has functional authority, a hybrid of line and staff authority, whereby the manager has the authority, in certain circumstances, to direct, design or control activities or procedures in another department

A project manager has authority over project team members in respect of the
project in progress. This authority is likely to be temporary and the members
are likely still to have line managers

Question 18

Tensions involved in staff managers:

Answer 18

Staff manager can undermine line manager’s authority

Lack of seniority, realism, responsibility

Question 19

THE MANAGEMENT HIERARCHY

Answer 19

The hierarchy is usually represented as a pyramid, as top managers
are far less numerous than direct operational staff

Question 20

The management process:

Answer 20

comprises 4 main tasks – planning, organizing, controlling and leading

Question 21

Planning:

Answer 21

set the direction of the work to be done
• Pinpointing specific aims
• Forecasting what is needed
• Looking at actual and potential resources
• Developing objectives, plans, targets
• Using feedback to make necessary amendments

Question 22

Organizing:

Answer 22

allocate time and effort in such a way that the objectives, plans and targets are likely to be met
• Defining what processes, technology and people are required
• Allocating and coordinating work

Question 23

Controlling:

Answer 23

monitor events so they can be compared with the plan

and remedial action can be taken if required

Question 24

Leading:

Answer 24

generate effort and commitment towards meeting objectives, including motivation and staff

Question 25

Putting the management process into action:

Answer 25

Any problems foreseen
at the planning stage is taken into account when deciding how activities should be organized. By means of this process, and the important element of leadership, the manager can take resources
and create required outputs

Question 26

Henry Mintzberg defines what managers do in terms of 3 key roles:

Answer 26

The information role
The interpersonal role
The decisional role

Question 27

The information role

Answer 27

checking data received and passing it on to relevant
people, as well as acting as the spokesperson for his or her team in relation to
other teams or his / her own manager

Question 28

The interpersonal role

Answer 28

acting as leader for his / her own team, and linking

with the managers of other teams

Question 29

The decisional role:

Answer 29

• Allocate resources to operations
• Handle disturbances
• Negotiate for what they need
• Solve problems
• Act as entrepreneur