Chapter 3: Management and Entrepreneurship Flashcards
What is the definition of management?
Management is the process of taking responsibility for using resources in new and smart ways to reach the business’s goals.
Name the three different levels of management in a typical business.
The three levels of management are:
* Top Management
* Middle Management
* Lower Management
What is the main job of Top Management?
Top Management is in charge of making the big, long-term plans (strategic decisions) for the business to make sure it can keep going strong in the future.
What kind of decisions does Middle Management handle? What do they do with Top Management’s plans?
Middle Management deals with medium-term plans (tactical decisions). They take the big plans from Top Management and figure out how each part of the business will make them happen.
What is the focus of Lower Management’s work?
Lower Management is responsible for the day-to-day decisions and making sure the daily operations of the business run smoothly.
What is the first and a very important job of management? What does it involve?
The first and super important job is Planning! It involves using your creativity and smart thinking to figure out how to make the business better in the future.
Name the four main management tasks.
The four main management tasks are:
* Plan
* Organise
* Lead
* Control
These all work towards the business’s Vision and Mission.
Name four things that planning is about.
Planning is about deciding:
* What needs to be done.
* How it should be done.
* When it should be done.
* Who will be responsible.
Give 4 reasons why planning is important for a business.
Planning is important because it:
-Focuses everyone on the business’s goals.
-Helps reduce risks and makes the business more stable.
-Helps prepare for change, Connects different parts of the business,
-Makes control possible
What is the first step in the planning process mentioned in the text?
The first step is Establishing Objectives, where top managers set the big, long-term goals for the business.
What is the second step in the planning process?
Deciding on the Planning Period
A business should consider how long it will take to achieve its goals. A good rule is to plan for a time period that makes sense for what you’re trying to do.
What happens during the “Implementing the Plan” step?
During this step, the business puts the chosen plan into action.
What is the 4th step of the planning process?
the “Controlling Process”
The purpose is to keep an eye on things after the plan starts, to see if the business is reaching its goals and to make changes if needed.
What does “Organising” involve in a business?
Organising involves figuring out what activities need to be done to reach the business’s goals.
Name the four steps involved in the “Organising” process.
The four steps are:
-Considering objectives
-Identifying and grouping
activities
-Assigning of duties
-Delegating authority
Name 5 advantages of having a properly organised business.
-Clear Patterns of communication
-Encourages growth
-Clear Authority and Responsibility
-Stimulate creativity
-Create proper balance
Name the 5 principles of “Leading” staff members.
-Harmony of objectives
-Effective communication
-Unity of Direction
-Direct supervision
-Follow up
Name six qualities of sound leadership.
- Guide people
- Encourage others
- Able to make decisions
- Take initiative
- Planner
- Mediator and arbitrator
Name the three leadership styles we are focusing on.
- Autocratic Leadership
- Democratic Leadership
- Laissez faire Leadership
Describe Autocratic Leadership. What’s a potential positive and negative of this style?
The autocratic leader tells people what to do.
Positive: Saves time and gets quick results in a crisis.
Negative: Can hurt team morale and doesn’t involve others in decisions.
Describe Democratic Leadership. What’s a potential positive and negative of this style?
The democratic leader involves the team in making decisions and setting goals.
Positive: Can boost team confidence and performance.
Negative: Can take a long time to make decisions.
Name the five principles of sound coordination.
- Clear Objectives
- Liaison between departments
- Comprehensive policies
- Chain of Command
- Induction
What are the three steps in the Controlling Process?
- Establish Standards
- Measuring Actual
Performance - Corrective Action
Describe Laissez faire Leadership. When might this style be effective?
The laissez faire leader gives the team information and resources but doesn’t control them.
Effective when: The team is made up of independent, creative, and skilled people.
