Chapter 2 - Managing a business Flashcards
What is management?
Getting things done through other people
What is power?
Ability to get things done
What are the 6 types of power listed by French and Raven (CLERRN)?
Coercive power - physical force
Reward/Resource power - control over
Legitimate/position power - position
Expert power - experience/qualification
Referent/personal power - personality
Negative power - disrupt organisations
What is authority?
the right to do something or ask someone else to do it and expect it to be done
How is managerial authority exercised?
Making decisions
Assigning tasks to subordinates
What is responsibility?
the obligation a person has to fulfill a task which they have been given
What is accountability?
A person’s liability to be called to account for the fulfilment of tasks they have been given by a persons with a legitimate interest in the matter
What is delegation?
Giving a subordinate responsibility and authority to carry out a given task, manager retains overall responsibility
What are the 4 types of manager?
Line manager - authority over subordinate#
Staff manager - authority in giving specialist advice even where they have no line of authority
Functional manager - functional authority whereby authority is present to control performance in another department
Project manager - authority over project team members
What are the stages of the management process?
Leading
Planning
Organising
Controlling
What are the 3 managerial roles Mintzberg defines?
Informational role - checking data recieved and passing it on to relevant people.
Interpersonal role - leading for a team
Decisional role - allocate resources, handle disturbances, negotiate, solves problems and act as an entrepreneur
What is culture?
Common assumptions, values and beliefs people share
What are the 2 distinct tensions Quinn identifies that affect culture?
Tension between felxibility and having control
Tension between whether business is inward/outward looking
What is an internal process culture?
Inward looking
Stable/controlled environment
E.g. public sector organisations
What is a rational goal culture?
Outward looking
Goal orientated towards external requirements
structured/controlled environment to deal effectively without outside world
E.g. large established businesses
what is an open systems culture?
Outward looking - external environment provides opportunity
Highly flexible
E.g. business working with fast changing tech
What is a human relations culture?
Inward looking
Flexible
E.g. support service units
What are the points handy says about management models?
Help to explain the past, which in turn…
Help us understand the present and thus…
Predict the future, leading to…
More influence over future events and…
Less disturbance from the unexpected
What are commonly seen rational goal ideas?
Systematic work methods
Detailed division of labour
Centralised planning and control
Low involvement employment relations
What is the rational goal model of management?
Uses reasons why the business does something to make sure it is done as well as possible
What is the internal process model of management?
Looks at how the organisation is doing things not at why
what is rationality?
Use of the most efficient means to meet the business’s objectives
What is marketing?
the set of human activities directed at facilitating and consummating exchanges
What are consumer markets?
Markets for products and services bought by individuals for their own or family use
How are consumer markets categorised?
FMCGs - high volume, low unit value, fast repurchase e.g. bread
Consumer durables - low volume, high unit value e.g. laptop
What is Kotler’s marketing mix?
The set of controllable marketing variables that a firm blends to produce the response it wants in the target market
What is market segmentation?
The division of the market into homogenous groups of potential customers who may be treated similarly for marketing purposes
What are the 4Ps?
Price - how the product should be priced, influenced by costs, competitors etc
Product - anything that can be offered to a market for attention, acquisition or consumption.
Place - how to distribute, direct or us intermediaries
Promotion - informs customers about the product, e.g. advertising
What are the 2 elements of promotion?
Push - ensuring products/services are available
Pull - persuading the ultimate consumers to buy
What is operations/production management?
Creating as required goods/services supplied to customers.
Concerned with design, implementation and control so inputs are transformed into outputs.
what are the 4Vs of operations?
Volume
Variety
Variation in demand
Visibility
What is product research?
Finding new and improved products for the market
What is process research?
developing new and better ways of producing the goods/services
What is procurement?
the acquisition of goods/services at the best possible total cost of onwership, right quality/quantity, right time, right place and from the right source
What is a supply chain?
Network of organisations, their systems, resources and activities that are required to turn raw resources into a product/service
What are upstream supply chain members?
elements of supply chain whicb provide the materials and production of the goods and services
What are downstream supply chain members?
elements of the supply chain that are involved after the product has been manufactured or service properly
What is human resource management (HRM?
Creation, development and maintenance of an effective workforce, matching the requirements of the business
What are 2 different approaches to HRM?
Hard approach - emphasises resource element of HRM
Soft approach - emphasises the human element of HRM
What are the 4Cs of HRM?
Commitment
Competence
Congruence - common vision
Cost-effectiveness
What is Mullins’ theory of organisation behaviour?
Study and understanding of individual and group behaviour in an organisational setting to improve performance and effectiveness
What is Hellriegel, Slocum and Woodman’s organisational iceberg?
Illustrates how human behaviour is affected by many variables
What is considered above the waterline on the organisational iceberg?
Formal aspects (Overt):
Customers
Technology
Facilities
What is considered below the waterline on the organisational iceberg?
Behavioural aspects (covert):
Attitudes
Communication
Personality
What is motivation?
Degree to which a person wants certain behaviours and chooses to engage in them
What is Maslow’s hierarchy of needs?
Bottom to top:
Basic/psychological
Safety/security
Social
Status/ego
Self actualisation
What characteristics define a group?
Common sense of identity
Common aim/purpose
Existence of group norms
Communication within
Presence of a leader
What are Tuckman’s 4 stages through which groups proceed?
Forming - initial stage, collection of individuals who are seeking to define purpose and operation
Storming - conflict stage, ideals challenged/rejected, once overcome forges a stronger team
Norming - how group operates, make decisions, behaviour patterns etc
Performing - now capable of operating at full potential
According to Belbin what are the different roles in a team?
Leader - coordinator
Shaper - promotes activity, committed to task
Plant - thoughtful and thought-provoking
Evaluator - analytically criticises others’ ideas
Resource investigator - elaborates n others’ ideas
Company worker - turns general ideas into specifics
Team worker - concerned with inter-team relations
Finisher - makes sure deadlines are met
Specialist - external team member
What does Belbin suggest an effective team will have?
1 leader/shaper
Equal numbers of plants/evaluators
Equal numbers of company/team workers
1 finisher
What influences the effectiveness of any manager?
Authority
Autonomy
Leadership
What are Likert’s 4 basic leadership styles?
Exploitive authoritative
Benevolent authoritative
Consultative
Participative - ideal for profit orientated businesses
What are the 4 characteristics Likert identifies for effective managers?
Employee centered
Sets high standards but flexible in methods used
Natural delegators with high levels of trust
Encourage participative management
What is the Procurement mix?
Quantity
Quality
Price
Lead time
