Chapter 6 (Management)

Question 1

Four main resources of management

Answer 1

1. Material resources
   The tangible physical resources an organization uses
2. Human resources
   The people who staff an organization and use the other resources to achieve the goals of the organization
3. Financial resources
   The funds an organization uses to meet its obligations to investors and creditors
4. Information resources
   The information about external business environmental conditions that a firm uses to its competitive advantage

Question 2

Management process

Answer 2

1. Planning
2. Organising
3. Leading and motivating
4. Controlling

Question 3

Planning

Answer 3

1. Planning
   Establishing organisational goals and deciding how to accomplish them
2. Mission
   A statement of the basic purpose that makes an organization different from others
3. Strategic planning
   The process of establishing an organisation’s major goals and objectives and allocating the resources to achieve them
4. Establishing goals and objectives
   -Goal= An end result that an organization is expected to achieve over a one- to ten-year period
   -Objective= A specific statement detailing what an organization intends to accomplish over a shorter period of time
   -Properly set goals are= Set at every level in the organization
   Consistent (supportive) with each other
   Optimised (balanced) to reduce conflicts between goals
5. SWOT analysis
   The identification and evaluation of a firm’s
   -Strengths
   -Weaknesses
   -Opportunities
   -Threats
   Core competencies
   Approaches and processes that a company performs well and may give it an advantage over its competitors

Question 4

Types of plans

Answer 4

Plan
An outline of the actions by which an organization intends to accomplish its goals and objectives
1. Strategic plan
An organization’s broadest plan, a guide for major policy setting and decision making
2. Tactical plan
A smaller-scale plan to implement a strategy
3. Operational plan
A plan to implement a tactical plan
4. Contingency plan
A plan of alternative courses of action if the organisation’s other plans are disrupted or become ineffective

Question 5

Organising

Answer 5

The grouping of resources and activities to accomplish some end result in an efficient and effective manner

Question 6

Leading and motivating

Answer 6

1. Leading
   Influencing people to work toward a common goal
2. Motivating
   Providing reasons for people to work in the best interests of an organization
3. Directing
   The combined processes of leading and motivating

Question 7

Controlling

Answer 7

1. Setting the standard
2. Measuring actual performance
3. Taking corrective action

Question 8

Types of managers

Answer 8

Top manager—guides and controls the overall fortunes of an organization
Middle manager—implements the strategy and major policies developed by top management
First-line manager—coordinates and supervises the activities of operating employees

Question 9

Key management skills

Answer 9

1. Analytical skills
2. Interpersonal skills
3. Technical skills
4. Communication skills
5. Conceptual skills

Question 10

Leadership

Answer 10

1. Formal leadership
   Legitimate power of position is the basis for authority
2. Informal leadership
   Not recognized formally by the organization authority

Question 11

Leadership styles

Answer 11

1. Autocratic
2. Participative
3. Entrepreneurial

Question 12

Managerial decision-making

Answer 12

1. Identify the problem or opportunity
2. Generate alternatives
3. Select alternatives
4. Implement and evaluate solution

Question 13

TQM

Answer 13

Benchmarking – evaluating another organization that is superior in order to improve quality
Issues crucial to TQM
-Top management commitment
-Coordination of efforts