Chapter 5: General Management Flashcards
1
Q
Managers at each level
A
- Top Level management: General Manager
- Middle Level management: Functional Manager(Admin, Marketing, Procurement, HR, etc. Manager)
- Lower Level management: Supervisor
2
Q
Entrepreneur vs Intrapreneur
A
- Entre: Starts a business by combining factors of production, assumes all risks by investing their capital into the business, usually Top Level
- Intra: Exist within the business and uses resources and entrepreneural qualities to turn ideas into profit, does not have to be at Top Level
3
Q
Entrepreneural traits
A
- Knowledge and expertise to run a business successfully
- Having basic management tasks(PLOC)
4
Q
Entrepreneural characteristics/skills
A
- Ability to identify and pursue opportunities, even if it’s risky
- Must continually scan the internal and external market to understand target market and sieze opportunitie
- Be able to develop business plan in order to meet the needs of the target audience
- Be able to anticipate market trends
- Commitment and perserverance
- Innovation and standing out from competitors
- Be prepared and have contigency plans
- Be able to obtain and coordinate resources
- Motivate and convince people to buy into the plan
- Be able to evaluate and correct progress
- Quick decision-making
- Communicate clearly and accurately
- Personally motivated
- Be aware of own shortcomings
5
Q
Leadership vs Management
Leader
A
- Has the ability and expertise to convince people of the advantages of following a certain plan
- Can develop new ways of doing things
- Inspires trust
- Focuses on people
- Challenges the status quo
6
Q
Pros and cons of autocratic
A
Pros:
* Effective with lower skilled employees
* Good in crisis situation
* Good when high quality is needed
* Quick as no discussion
Cons:
* Higher skilled employees get frustrated
* Low work morale
* Decision is limitted to managers perspective
* Less teamwork
7
Q
Leadership vs Management
Management
A
- An appointed position pf authority whereby they assist people on doing what they instructed
- Maintains systems
- Relies on control
- Accepts the status quo
- In order to be a good manager you must be a good leader
8
Q
Management styles
A
- Autocratic: Leader does not allow room for others input and makes all decisions
- Democratic: Leader allows input from subordinates during decision-making
- Laissez-Faire: Gives subordinates instructions on what to do but does not interfer with them carrying out the task
- Transformational: A leader who is charismatic and empowers the employees to work well. They show appreciation and gratitude towards employees to motivate them past their expections
- Transactional: A “give and take” leadership style where work is rewarded through benefits
- Situational: The manager will use whatever management style is most suitable for that scenario
9
Q
Advantages of a well motivated workforce
A
- Well-motivated staff usually have good customer service, more customers=more profit
- They are more productive and will thus
10
Q
Monetary factors to motivate employees
A
- Rewards like salary increases may work for a short period of time, but after a while the employee may get used to having that money
- Could be a performance bonus, commission, profit sharing
11
Q
Pros and cons of democratic
A
Pros:
* Better participation
* Encourages teamwork
* More ideas are contributed so better problem-solving
Cons:
* Conflict
* Sometimes employees dont have the skills
* Slower decision making
12
Q
Pros and cons of laissez-faire
A
Pros:
* Empowers employees
* Decisions wouldnt be limitted to manager perspective
Cons:
* Increases pressure on employees to perform
* Need highly skilled employees
* Manager compromises some control
13
Q
Pros and cons of transactional
A
Pros:
* Motivates employees
* Improves productivity
Cons:
* Expensive
* Additional workload
* Employees will expect to be rewarded for everything
* Employees may only perform well in areas with rewards
* Will demand higher rewards each time
14
Q
Pros and cons of transformational
A
Pros:
* Builds employees up and thus motivates
* Aligns employees goals with the business’
* Good way to incorporate BBBEE
* Evokes positive change in business as a whole
* Develops skills
Cons:
* Cost of training may be expensive
* Focus may shift from vision/mission
15
Q
Pros and cons of situational
A
Pros:
* Adapts to every circumstance
Cons:
* May cause confusion among employees
16
Q
Non-monetary motivation
A
- Job enlargement: Adding more tasks to a job to make it less monotonous, dont overload them for same salary tho
- Job enrichment: Giving an employee more responsibility and authority to make them to feel trustworthy, must train them tho
- Empowerment and advancements: Its a win-win as employees are given opportunities to build skills and widen knowledge to add to CV and business uses their new competencies
- Flexible hours: Motivation will go up and work will be done more effectively
- Public recognition: “Employee of the month” type beat
- Wellness programs: Child care facilities, day off, gym memberships, etc
17
Q
Monetary Motivation
A
- Performance bonus
- Salary increase
- Commission
- Paid holidays
- Profit sharing
** Employees could get “used to” the money at some point, might only do things because theres money not because it’s the right thing to do
18
Q
Planning
A
- Should be drawn with the intention of achieving the goals and objectives
- Consider contingency plans
- Implement plans carefully, evaluate the success, implement corrective action
19
Q
Steps in planning
A
- Establish objectives
- Decide on planning period
- Consider alternatives
- Implement plan
- Evaluate/control
20
Q
Planning on different management levels
A
- Top Management: Responsible for the overall businiess plan, including vision, mission, objectives, and strategies
- Middle Management: Formulate the tactical plans and the acquisition of all the departments they control, have to ensure that lower management is guided to align their daily planning with theirs
- Lower management: Responsible for planninng work schedules and programs on a daily basis
21
Q
Planning principals
A
- Planning should be done in advanced as it is aimed at the future, it is also meant to be within a realistic budget
- Communication is important and the plan should be communicated in writing
- KISS so the plan is simple and easy to implement
- Should guide employees toward the end goal
22
Q
Importance of planning
A
- Ensures focus
- Minimises risk
- Integrate business function
- Ensures control
23
Q
Organisation
A
- The manager arranges all activites in such a way that benefits towards a systematic and successful business
- In charge of the Factors of Production
- Reporting structures withing the business beacause
23
Q
Organisational structures
A
- Matrix
- Line
- Line and staff
- Functional
24
Q
Importance of organisation
A
- Communication
- Allows manager to indentify key stakeholders and allocate authority and responsibility accordingly
- Balances activities
- Stimulate creativity
- Encourages growth
25
Q
Line structure
A
- Authority originates at the top and moves downwards
- Functions that directly impact the profits of the business
- Common in small businesses
Production managers, sales rep, marketing managers
26
Q
Line and staff structure
A
- Medium to large businesses
- Other employees are hired to help line managers to what they struggle with
- Advise line managers
- Authority is limited in making recommendations to line managers
Legal, PR, HR
27
Q
Matrix structure
A
28
Q
Functional structure
A
- Organisations are divided into smaller groups based on specialised functions like IT, Finance, Marketing
- Leads to better efficiency because employees with the same skills and knowledge are grouped together
- Disadvantage is that the different functional teams sometimes do not interact with one another
29
Q
Leadership
A
- Ensure a balance between being people-orientated and risk-orientated
- Employees should always be assisted in achieving goals
- Subordinates should be encouraged to voice opinions
- Recognition should be public and repremand should be private
- Criticism should not be personal but be corrective to avoid repeating mistakes
- Communicate goals and why procedures are that way to ensure cooperation and acceptance
30
Q
Control
A
- Should be the last step in every process
- Provides manager with feedback to assess how problems can be addressed in order to improve business and performance
31
Q
Steps in control
A
- Set standards that will be used as a benchmark to help employees know what will be evaluated
- Performance is measured against predetermined standards
- If the standards were deviated from then they should be corrected or discussed so the cause is identified and mistakes aren’t repeated
32
Q
Components of good control
A
- Flexible
- Motivating
- Suitable aimed at the future
- Economical
33
Q
Coordination
A
- The cooperation between different functions/departments in the business to ensure everyone works toward a common goal
- Communication is essential to ensure everyone understands requirements
- Ultimate goals is to ensure synergy between teams and departments
34
Q
Principals of coordination
A
- Chain of command
- Induction
- Clear objectives
- Comprehensive policies
- Liason between departments
35
Q
Communication
A
- Recieving ideas and attitudes between employees and manager and business and external stakeholders
- Ensures coordination by making workers aware of what’s expected of them
- Clear and open communication channels allow stakeholders to voice concerns to managers
- Improves the overall business performance because everyone has the correct information when they need it.
36
Q
Types of communication
A
- Top-down communication
- Bottom-up communication
- Inter department communication
37
Q
Management competencies
A
- Global awareness
- Organisational awareness
- Analysis
- Strategic thinking leading to strategic action
- Teamwork
- Empowerment and talent development
- Initiative
- Judgement/decision-making
- Negotiation
- Customer service orientation
38
Q
Global Awareness
A
- Being aware of the supply chain
- Includes but is not limited to being aware of cultural, political and language differences, flactuating exchange rates
39
Q
Organisational Awareness
A
Internal:
* Must be aware of business’s strengths and weaknesses are
* Be aware of all activities happening in the business
* Manager must be empathetic towards functions under pressure and aim to accomodate to people where possible
* Must understand the organisational structure of the business to ensure it aligns with vision, mission
External:
* Be aware of possible opportunities or threats
* Be mindful of national and international trends and their ability to impact them through taking a stand for or against something
40
Q
Analysis
A
- Manager must be able to identify info, gather te info, assess how different events could have an impact on each other and compare alternative plans of action
- Must ensure risks are managed by identifying possible problems and preparing solutions
- Decisions must only be made after all information is considered
41
Q
Strategic thinking leading to strategic action
A
- Manager must identify where the business is in the market in relation to the other businesses and thn decide where the business should be in a couple of months/years
- Can only be done if there is a vision, mission and objectives
- Strengths and weaknesses must be understood before setting strategies
- Manager must have a well understanding of the market/industry
- Must forecast and anticipate what will happen in the future and plan accordingly to manage the situation
- Outcomes of the situation must be evaluated
42
Q
Teamwork
A
- Manager must be aware of member’s feelings and attitudes and anticiapte how that will affect the teamwork
- Teams must be set in a way that allows members to complement each other’s strengths and weaknesses
- Must encourage functional conflict and intervene where necessary
- All members must have a good understanding of the goals and be equipped to achieve them, if not they must be trained
43
Q
Empowerment and talent development
A
- Giving an employee more skills through training
- Giving them greater responsibility and allowing for a broader way of thinking
- Allowing employee freedom to complete task however they wish, as long as there are predetermined standards set
- Evaluating an employees performance and providing constructive criticism
44
Q
Initiative
A
- Manager won’t wait for someone else to think of new ways to improve the business
- Will in turn question the conventional methodologies and encourgae subordinates to think of new ideas
- Being proactive and anticipating problems before they arise to create a competitve advantage
45
Q
Judgement/Decision-making
A
- Judgement calls can only be made once all relevant facts have been considered
- Sometimes manager does not have time to evaluate decision-making but must still practice logical reasoning
- Must maintain integrity when making judgement calls
46
Q
Negotiation
A
- Be able to effectively and clearly communicate their point of view to the audience
- Manager must try to impliment a win-win situation and compromise where necessary
- Try to obtain the most amount of buy-in from the most influential parties, informal leaders influence others in negotiation process
47
Q
Customer service orientation
A
- Customers are the primary focus and should be considered in all business decisions
- Listent o customer’s concerns and feedback to understand and deliver what the customers expect from the business
- A good cutomer relationship will ensure customers keep coming back to support the business
48
Q
Corporate governance
A
- The set of rules and processes that Top Management uses to direct and control the business
- Provides a framework to protect the bottom line if the business and to consider the interest of the stakeholders
49
Q
King Codes and Reports
A
- King Code: Was introduced to define the concept of Corporate governance and implement it into SA context
- King I Report: Introduced standards for conduct for business and for State-owned companies in terms of their responsibility to citizens. Introduced Triple bottom line(integrated reporting)
- King II: Introduced the seven principles of good Corporate Governance
50
Q
King II: Seven principals of good Corporate governance
A
- Transparency: Making decisions in accordance with a set of rules that everyone knows and understands
- Accountability: Taking responsibility for decisons made, increases trust with stakeholders
- Social Responsibilty: When the business acts publicly accountable and will act responsible toward social issues
- Duty of the director: Board of directors represent the shareholders so they depend of them to do the right thing
- Fairness: Business must act considerately and in the best interest of all parties realistically
- Discipline: Integrity shown by management, committment to behaviour that is universally correct
- Independence: There is no unfair influence from a stakeholder that could lead to biased or unnethical decision making in favour of one party over another, having no obligation to someone the business has networked with
51
Q
Types of discipline
A
- Market discipline: When the business does not make responsible decisions and so the market sanctions the business by boycotting or selling their shares, lower the market capitalisation
- Regulatory discipline: Can only be instated once the offense has alr been committed, if top management is aware of harsh punishments they will be encouraged to act in the business’s best interest
52
Q
Responsibilities of the director
A
- Must act with skill and care when formulating policies and guidelines
- Fidiciary duty: Acting in good faith and honesty in terms of what they believe is the best interest of the business
- Anticipate risks and put the necessary procedures in place
- Be ethical leaders
- Auditing committees must be placed to monitor finances
- Ensure integrated reporting and disclosure of information
53
Q
King III
A
- Business must have Independant Audit Committee outside of the Board of Directors
- If there is conflict between directors and Audit committee, audit committee’s decision stands
- Applies to all business
- Directors will be held liable for misinterpretation
- Apply OR Explain: Must give reasons why they are not adhering to the King Code’s recommendations
- Companies listed on the JSE have to report on sustainability n accordance with the Global Reporting Initiative, Auditing Commitee has to ensure they get an external opinion to verify the degree of sustainability
- Company must be a good Corporate citizen
54
Q
King IV
A
- Ethical culture: Must operate in a way that creates an ethical culture and all actions must be geared at making the business a responsible corporate citizen
- Trust and good reputation:Must integrate a stakeholder-inclusive approach that balances the interests, expectations, and needs of the stakeholder
- Good performance: All activities, strategies, core business purpose, risks and opportunities taken are geared towards sustainable value creation. Governing body must ensure stakeholders can make informed assessments of value creation over the short, medium, and long-term
- Effective control:
- Apply AND Explain: When the business had implemented the King Code’s recommendations on Corporate Governance and has to explain how they did it
A&E: creates good relationship w investors, ensures sustainbtly,
55
Q
Sector Supplements
A
Guidelines provided to SOE, SME, NPO, and Municipalities to help them understand how to implement the King principals
