Chapter 2 - Roles And Responsibilities

Question 1

What are the physical resources of an organisation?

Answer 1

Includes all the assets used by the origination that are of the disposal of the business and can be used to help it to achieve its objectives. These include office space, IT telecoms, websites and perhaps vehicles.

Question 2

What are the two types of director and how do they differ?

Answer 2

• executive directors. These work full time and are given management responsibility for running parts of the business. The board usually appoints one of the executive directors to be accountable for the running of the company and is known as the chief executive officer or managing director who in turn appoints the company management
• non executive directors. Who work part time and are chosen for their particular area of expertise and do not perform an executive management role in the company. They attend board meetings and may be members of sub committees in order to provide independent views on matters such as audit, management remuneration and risk management

Question 3

Most boards are responsible for:

Answer 3

• overseeing the executive directors and other senior management to ensure they uphold the shareholder interests and the laws governing the conduct of business
• setting strategy, budget and other plans
• select, appraise and reward the CEO
• oversee risk management process
• ensure company’s integrity is held in legal matters, regulatory, ethical and financial reporting etc.

Question 4

In Dr John Adairs action centred leadership approach, the three key identified areas of leaders effectiveness are…

Answer 4

• the task, the primary need to get the job done
• the team, the need to build a cohesive unified team, a bunch of star players does not always equate to a team
• the individual, we all have a variety of needs which motivate us into action to satisfy them, to be wanted, to be useful, to have our way. If these needs are not met, we become frustrated, and this affects our performance.

Question 5

In regards to corporate culture, what are norms?

Answer 5

The behaviour which is most acceptable to an organisation. For example, approaches to problem solving, timekeeping, the way meetings are run, the use of first names, dress standards and standards of performance.

Question 6

Corporate culture relates to a a organisations day to day business in a certain way. The corporate culture is made up of three factors…

Answer 6

1. Norms
2. Beliefs and values
3. Management style

Question 7

In regards to corporate culture, what are management styles?

Answer 7

The behaviour of the managers, e.g open door, autocratic, paternalistic, militaristic/hierarchal, democratic/consultive.

Question 8

What makes insurance and other financial services different to manufacturing and other product services?

Answer 8

Insurance is an intangible product

Question 9

What are financial resources?

Answer 9

Resources that constitute the funds that area available to managers of the business to allow it to carry out its day to day operations. These include cash, bank loans, share capital, And other financial instruments against which it can raise money.

Question 10

What are the 9 barriers to effective communication?

Answer 10

1. The problem of size
2. Natural reserve, fear, lack of confidence
3. Knowledge is power
4. The language problem
5. The problem of time
6. Training
7. The grapevine
8. Failure to recognise the need to tell
9. Inability to listen

Question 11

Explain the different management styles

Answer 11

Open door - mamagers are approachable by staff at all times

Autocratic - control and power rest with a single individual, usually the chief executive

Paternalistic - the company looks after its employees in a fatherly way, and the employees respect the organisations managers in a way that children respect their parents, this style is sometimes perceived as too Inerfeering

Militaristic/hierarchal - the management Is structured in a formal way, with a clear job demarcation

Democratic/consultive - descisions are taken with prior reference to as many staff members as possible

Chaotic/laissez faire - employees have large degree of autonomy encourages creativity

Question 12

In regards to corporate culture, what are beliefs and values?

Answer 12

For example, “we stand for equality, the input of every employee is valued” “we do not test on animals”

Question 13

Preparation of the statutory accounts of the company for approval by the board and shareholders will be the responsibility of…

Answer 13

Chief financial officer.