Chapter 6 - Intro To General Management

Question 1

Name some of the most common causes of business failure.

Answer 1

• bad management
• lack of managerial experience
• lack of industry experience
• lack of clear objectives
• poor buss planning
• poor cash flow mng
• over expansion
• poor marketing
• poor buss location
• economic conditions
• failure to adapt
• inadequate pricing
• poor HR relations

Question 2

Name 4 reasons why management is indispensable to any business.

Answer 2

1) directs a business towards its goals
2) sets and keeps the ops on a balanced course
3) keeps organisation in equilibrium with environment
4) to reach the goals of highest possible level of productivity

Question 3

What is one of the most common causes of failure, especially is small business?

Answer 3

Poor Management

Question 4

What is the definition of management?

Answer 4

process of activities to enable a business to accomplish its goals by employing human, financial and physical resources for that purpose.

Question 5

Management does 4 things what are they?

Answer 5

What - Planning
How - Organising
Orders- Leading
Checks - Control

Question 6

Supervisors form part of which level of management?

Answer 6

Lower management

Question 7

Who forms the Top Management and what is their function?

Answer 7

Directors, they run the business and the final authority and responsibility rests with them.

Question 8

Who forms Middle Management and what is their function?

Answer 8

Managers, they are primarily responsible and accountable for executing the policies, plans and strategies determined by Top Mng. eg Marketing Manager

Question 9

Skills management need?

Answer 9

1) Conceptual skills (mental capacity - thinking and planning abilities)
2) Interpersonal skills (ability to work with people)
3) Tech skills (knowledge of a particular discipline)

Question 10

Managers have 3 different, overlapping roles. What are they?

Answer 10

1) Interpersonal role
2) Information role
3) Decision making role

Question 11

What 3 activities fall under the Interpersonal Role of a manager?

Answer 11

1) Representative figure (attends charity events)
2) Leader (appointment, training)
3) Relationships (with organisation and public)

Question 12

Who act as spokespersons for departments ?

Answer 12

Managers

Question 13

What did EW Taylor prove with his scientific application of observation?

Answer 13

That the productivity of a business could indeed be increased.

Question 14

What was Henri Fayol’s management process school theory about?

Answer 14

The application of universal management principles would take any business towards its goals.

Question 15

Henri Fayol identified 6 functions in his management process school theory. What were they?

Answer 15

1) Tech (operations)
2) Commercial (purchasing and marketing)
3) Financial
4) Accountancy
5) Security
6) Gen Management

Question 16

Fayol identified 5 fundamental elements of the management process. Name them.

Answer 16

Planning
Organising 
Leading
Coordinating
Control

Question 17

Elton Moyo’s “Human Relation” or “Behaviour School” found that productivity does not always increase due to a well-designed task and sufficiently high wages. What other factors should be considered?

Answer 17

Psychological and social factors are no less important than physical factors.

Question 18

Research into which areas over the way for the Human Relations / Behavioural School?

Answer 18

Social interaction
Motivation
Power relations
Organisational design
Communications

all which is valuable in the area of personnel management.

Question 19

How did the “quantitative school” see management?

Answer 19

As a system of mathematical models and processes.

Question 20

What did the “quantitative school’s” research comprise of?

Answer 20

Operational research or decision experts who believed that of management are at all a logical process, it could be expressed on mathematical relations

Question 21

The systems approach to management was developed in the 1950’s. What was the purpose of this approach?

Answer 21

To compensate for the main limitations of the previous approaches.

Question 22

Name the 5 main schools of thought on management.

Answer 22

1) the scientific school
2) the management process school
3) the human relations / behavioural school
4) the quantitative school
5) the systems approach

Question 23

Name 5 of the contemporary approaches to management.

Answer 23

1) the contingency approach
2) strategic management
3) total quality management
4) the learning organisation and the re-engineering of businesses
5) diversity management

Question 24

What is the contingency approach in management about?

Answer 24

Application depends on a particular situation confronting management on a particular situation.
This approach similar to systems approach combining various approaches.

Question 25

What is the strategic management approach about?

Answer 25

Focussing on threats and opportunities in the environment
And evaluating their its strength and weaknesses
In order to overcome the threats
And exploit the opportunities
The organisation builds a distinct competence in a particular market

Question 26

Why was the strategic management approach abandoned in the 1980’s?

Answer 26

Because today every manager in the organisation is required to think and act strategically.

Question 27

What is the Total Quality Management approach about?

Answer 27

It evolved in the late 1980’s and revolved around quality.

Question 28

What is the Re-engineering of business approach about?

Answer 28

It forces the organisation to focus on its core business and to outsource the other activities.