Chapter 5 - Nature of Management

Question 1

Important skills required for a CEO:

Answer 1

• ability to analyse information, attend meetings and communicate with a wide range of people both inside and outside the business
• possessing skills to manage change effectively
• having the vision to see how things could be improved or changed, not just accepting things the way they are
• being able to encourage, motivate and guide employees
• understanding your roles and responsibilities in order to achieve the goals of the business

Question 2

What is the traditional definition of management?

Answer 2

• the process of coordinating a business’s resources to achieve its goals

Question 3

What is the more contemporary definition of management?

Answer 3

• the process of working with and through other people to achieve business goals in a changing environment. Crucial to this process is the effective and efficient use of limited resources.

Question 4

What are the four main resources available to businesses

Answer 4

• human resources
• information resources
• physical resources
• financial resources

Question 5

What two fundamental changes have taken place in the structure of a business in the past decade?

Answer 5

• gone from ‘tall’ hierarchical structures of multiple layers of management, and towards a ‘flatter’ business structure
• the development of self-managing work teams

Question 6

What are the four features of effective management?

Answer 6

• planning
• organising
• leading
• controlling

Question 7

Interpersonal skills

Answer 7

• a manager can work and communicate with other people and understand their needs
• can relate to people and be aware of and appreciate their needs
• people skills include: ability to communicate, motivate, lead and inspire

Question 8

Communication skills

Answer 8

• can be difficult for managers to make employees understand and want to achieve businesses goals
• non-effective communication leads to failure of even the most carefully detailed plans and brilliant strategies
• can be difficult communicating correct tone when contacting online

Question 9

Give an example of miscommunication

Answer 9

• a nurse used the same needle on 53 patients (she was new)

- all the patients had to be tested for HIV and hepatitis B and C

Question 10

Non-verbal communication

Answer 10

• mainly consists of body language, facial expressions etc
• managers must be cautious of their body language and facial expressions
• e.g. a manager that says they can talk to an employee, but constantly glances down at their watch

Question 11

Define strategic thinking

Answer 11

• allows a manager to see the business as a whole and to take the broad, long-term view

Question 12

What does strategic thinking enable the manager to do?

Answer 12

• visualise how work teams and individuals interrelate
• understand the effect of any action on the business
• gain insights into uncertain future
• identify opportunities as well as threats by looking at trends/events

Question 13

What is a vision?

Answer 13

The clear, shared sense of direction that allows people to attain a common goal