Chapter 5: Managemet Notes

Question 1

Define Management with an example.

Answer 1

Management is the day to day running of a business. It involves working with people and using the resources of a business (people money, equipment) effectively to achieve the objectives and goals of the business. A manager needs to be good at leading and motivating employees and communicating will all shareholders. The overall manager is the Managing Director or Chief Executive Officer. E.g. Michael O’Leary CEO of Ryanair

Question 2

List the six characteristics of a manager.

Answer 2

• Decisive
• Initiative
• Good with people
• Hard workers
• Flexible
• Charismatic

Question 3

Explain decisive as a characteristic of a manger.

Answer 3

-Analyse situations and come up with effective solutions
-They are resolute and don’t hesitate
E.g. Aer Lingus decisively moved their London routes from Shannon to Belfast despite protest.

Question 4

Explain initiative as a characteristic of a manager.

Answer 4

-Don’t need to be told what to do.
-Can identify areas that need managing and find solutions to problems.
E.g. Priority boarding schemes introduced by managers to increase revenue

Question 5

Explain good with people as a characteristic of a manager.

Answer 5

• Get along with people and get the best out of them.

- Convince them to do what the business needs.

Question 6

Explain hard workers as a characteristic of a manager.

Answer 6

-Put effort and time into their job
-Work past normal working hours to find solutions.
E.g. Aer Lingus managers stayed up all night in negotiation to settle trade dispute.

Question 7

Explain flexible as a characteristic of a manager.

Answer 7

-Are able to change their methods and approaches as the situation changes and are adaptable.
E.g. Ryanair decided to negotiate with unions for the first time in the airlines history.

Question 8

Explain charismatic as a characteristic of a manager.

Answer 8

-Are persuasive and inspirational.
-Arouse enthusiasm and inspire loyalty and devotion.
-Easy to get employees to follow them and do what they need them to do.
E.g. Steve jobs was extremely passionate and had infectious enthusiasm.

Question 9

Describe four differences between entrepreneurs and managers.

Answer 9

-Entrepreneurs create ideas and use their own resources to run a business, manager runs a business using entrepreneur’s resources.
-Entrepreneur takes risks, manger does not have same degree of risk.
-Entrepreneur develops business idea, manager ensures ideas are carried out.
-Entrepreneur focuses on long term future. Managers concentrates on day to day running of the business.
E.g. Tony Ryan set up Ryanair and hired Michael O’Leary to run Ryanair for him.