Exam Flashcards
What are the 4 functions of management?
Planning
Organizing
Leading
Controlling
What are the 3 levels of Management?
Upper
Middle
Lower
Describe upper management
- Establishes organizational objectives/goals
- Also called senior management or executives
- Ex. Mr. Chow
Describe Middle management
- Interprets direction from upper managers.
- Guide lower management.
- Ex. Vice Principals
Describe Lower management
- Manages operating employees.
- Ex. Mr. Simonetti
What are the 3 Managerial skills?
Technical
Human
Conceptual
Technical skills
- Specialized skills such as accounting or engineering, marketing or IT (information tech).
- Most important in lower management.
Human skills
- An ability to interact with people.
- Important at all levels of management.
Conceptual skills
- Ability to think critically and analytically.
- Solve problems; most important in upper management.
5 styles of management
Authoritarian
Consultative
Participatory
Democratic
Laissez-faire
Authoritarian
- The manager assumes that he/she knows best.
- Employees/subordinates have very little decision making authority if any at all.
- Employees are told what to do and when to do it.
- Employees are not asked for their opinions and they rarely offer suggestions.
- Is most effective in situations where there is frequent turnover of staff and where tasks are straight forward. E.g. part-time staff at a fast-food restaurant.
- The manager makes the decisions and accepts the consequences.
Consultative
- The manager does not assume that he/she knows all the answers.
- The manager seeks information from employees that have good ideas and/or special expertise. The information is then considered in light of the “bigger picture” which the manager has incorporated into future management decisions.
- Workers can expect to see some of their suggestions incorporated.
- Wise managers will give credit to workers who have offered ideas
- The manager makes the decisions and accepts the consequences.
Participatory
- The manager goes beyond the consultative mode and involves employees as much as possible in the decision-making process.
- Assumes that the person doing the job knows more about that job than anyone else.
Democratic
- The manager acts as a broker or negotiator.
- The manager allows employees to discuss issues and reach decisions although he will guide and advise.
- Decisions get made on the basis of their acceptance by a majority of the people.
If the decision has unfavorable consequences, the manager will probably point out that the decision was made by the group. - It also guarantees that some of the workers will be angry at the majority who voted them down.
- Not a good management practice since there is no accountability.
Laissez-faire
- The manager does not interfere with the employees.
- Each worker would make decisions independently.
Functional Manager
- Responsible for a single area such as accounting, engineering, marketing, HR.
- Ex. GAP
General Manager
- Responsible for complex areas
- Ex. Department store manager
- Ex. Nofrills
Administrator
- Work in non-profit organizations
- Ex. Hospital administrator, principal, Ex. SickKids
Manager
- Work in for profit organizations.
- Ex. McDonalds, Old Navy
2 types of power
Personal
Positional
2 types of Personal power
Expert power
Reference power
Reference power
Capability to control others because of their desire to identify personally and positively with the power source Ex. charisma, interpersonal attractiveness, maintained through good interpersonal relations which encourage admiration and respect in the eyes of others.
Expert power
capability to control other people because of specialized knowledge ex. technical skill, education, competence
3 types of Positional power
Reward - ability to give employees rewards Ex. Raise, bonus
Coersive - Capability to punish or withhold positive outcomes ex. termination
Legitimate - capability to control other people by your job position Ex. i am the boss and you do what i say!
Long term planning
- greater than one year
- Ex: Developing a new product
Short term planning
- less than one year
- Ex: Hire new employees
What is the problem solving process
- Finding and defining the problem.
- Analyze data and generate alternative solutions.
- Evaluation of alternatives and selection of the best/preferred solution.
- Implement the plan/solution.
- Evaluate the plan/solution.
Outside In planning
- Analyze the external environment and make the internal adjustments necessary to exploit the opportunity.
- Ex; McDonalds added salads and healthy alternatives when people’s eating habits change
Inside out planning
- Focus on doing what you already know how to do, but requires it to be done as best as it can be done.
- Ex; Wild Wing wings
Contingency plan
- Involves ideas for alternative courses of action.
- Back-up plan.
- Ex; Having plan A, plan B, plan C, etc.
SWOT analysis
Strength (internal)
Weaknesses (internal)
Opportunity (external)
Threat (external)
Some examples of strengths
Excellent employees
Strong market share
Superior product
Reputation
New products and technologies
Good financing
Some examples of weaknesses
Old equipment and technology
Poor planning
Reputation
Poor management
Poor products
Minimal research and development
Some examples of opportunity
New markets
Economy
Poor competition
Growth strategy
New technology
Some examples of threats
New competitors
Lack of resources (money)
Government regulations/laws
Competitor’s products
Changing market preferences
What is PEST + C analysis
strategic planning tool
analysis of the external environment
PEST + C
Politics
Economics
Social
Technology
Competition
Some examples of politics
Taxes
Laws
International governments
Involvement of government (municipal, provincial, federal)
Some examples of economics
Stage in the business cycle
Interest rate
Value of the Canadian $
Inflation rate
Unemployment rate
Stage in product life cycle
Some examples of social
Demographic changes
Lifestyle changes
Social values
Some examples of technology
New technology
Use of information technology
Using technology to create new products/processes
Some examples of competition
What is the competition doing?
Evaluate each major competitor
What is an organizational chart?
a diagram describing reporting relationships and the formal arrangement of work positions within an organization
What does the Human Resource department do?
responsible for finding, recruiting, screening, money, benefits, termination
Explain what a formal organization is
- jobs are defined along with the experience and education needed to carry them out
- management positions are established along with the lines of authority
- demonstrated in an organizational chart
Describe what an informal organization is
- a result of unofficial yet critical social interactions between employees and managers in the workplace
- Ex: employees may meet for coffee breaks and discuss work
- Managers at all levels must take informal organization into account when making decisions
In theory, what differentiates a formal organization with an informal one?
In theory, a formal organization chart shows who holds the power and informal organization determines who actually exercises it (who actually has power - social interactions are key in the workplace)
Describe chain of command
The line of authority that vertically links all persons with successively higher levels of management.
What are fringe benefits
- the additional non-wage or non-salary forms of compensation provided to an organization’s workforce.
- Typical benefit packages include various options on disability protection,
health and life insurance, and retirement plans.
What are the different forms of business ownerships
Sole proprietorship
Partnership
Corporation
Crown corporation
Franchise
Sole proprietorship
- Owned, financed and controlled by one individual but can employ other staff.
- Common in small shops, restaurants (maybe the restaurant across the school), etc.
Sole proprietorship advantages
- Easy to set up
- Personal incentive: keep all the profits, make key decisions, high degree of control
- Flexibility
- Ability to offer personal service
Sole proprietorship disadvantages
- Unlimited Liability – Owner is personally responsible for the debt incurred by the business
- Limited access to capital (money)
- Potential for long hours
- Pressure of being solely responsible
Partnership
- Owned, financed and controlled by 2 or more partners
- Terms of Partnership agreed through contract
- Common in professions – lawyers, accountants, architects, real estate agents,etc.
- Ex. Vibe, owned by twins
Partnership advantages
- Greater access to capital
- Shared responsibility
- Greater opportunity for specialisation
- Easy to set up
Partnership disadvantages
- Unlimited Liability – the partners are personally responsible for the debt incurred by the business
- Partnership dissolved on death of one partner
- Potential for conflict
Corporation
- Is an organization of people legally bound together by a charter to conduct some type of business.
- Legal entity- treated by the law as if it were a person.
- The corporation can sue and be sued
- Ex. Apple, Wal-Mart, Google
Corporation advantages
- Easy to raise funds
- Limited liability - No member of the corporation can be held personally liable for the debts, obligations, or acts of the company.
- Unlimited life
- Specialized and professional management
Corporation disadvantages
- The costs of creating and maintaining the corporation can be very high.
- Laws governing corporations are more complex.
- Increased Taxation
Crown corporation
- Is a corporation established by the
Government to efficiently deliver a public service. - A Crown corporation is owned either directly or indirectly by the government.
- E.g. Bank of Canada, Via Rail, Canada Post
Franchise
- Method of business ownership backed by established ‘brand’ name
- Owner gets to run a business with less ‘risk’
- Owner buys the right to use the established company’s name, format products, logos, display units, methods, etc.
- Owner – (Franchisee) responsible for debts, pays a royalty to owners of the brand, keeps any remaining profit
- Ex. McDonalds, Pizza Pizza, Subway
what the Classical Theory of Motivation
- Money is the prime motivator.
- People worked to satisfy their basic necessities (food, clothing, shelter and to raise their standard of living).
When did the Classical Theory of Motivation start to be less effective and why
- Most effective during the latter years of the Industrial Revolution when workers were poor and jobs were hard to find .
- As the standard of living improved, worker’s productivity no longer increased rapidly.
The Hawthorne Effect
- Made by Elton Mayo
- Regardless of working conditions, productivity tends to increase when management gives special attention to workers.
- Workers have needs other than money and job security.
What are the Maslow’s Hierarchy of needs
Physiological needs
Safety needs
Social needs
Esteem needs
Self actualization needs
Self actualization needs
- Creative and challenging work
- Participation in decision making
- Job flexibility and autonomy
Esteem needs
- Responsibility of an important job
- Promotion to a higher status job
- Praise and recognition from boss
Social needs
- Friendly coworkers
- Interaction with customers
- Pleasant supervisor
Safety needs
- Safe working conditions
- Job security
- Base compensation and benefits
physiological needs
- Rest and refreshment breaks
- Physical comfort on the job
- Reasonable work hours
Whats Herzberg’s Two-Factor Theory
- Motivator-Hygiene theory
- Two factor theory links hygiene factors with job dissatisfaction and satisfier factors with job satisfaction
Hygiene factor
- decreases job dissatisfaction
- Working conditions
- Supervisor quality
Motivator factor
- increases job satisfaction
- Achievement
- recognition
List the 3 types of needs in the Acquiring Needs Theory.
Need for Achievement (nAch)
Need for Power (nPower)
Need for Affiliation (nAff)
Need for achievement
Desire to do something better or more efficiently, to solve problems, or to master complex tasks.
Need for power
Desire to control other persons, to influence their behavior, or to be responsible for other people.
Personal power versus social power.
Need for affiliation
Desire to establish and maintain friendly and warm relations with other persons.
What’s controlling
The process of monitoring performance and taking action to ensure the desired results
Whats a performance appraisal
A process of formally evaluating performance and providing feedback on which performance adjustments can be made.
What is corporate social responsibility?
Business decisions that take into account the social consequences of a proposed course of action.
Ex: Employees
Consumers
Shareholders
Community
Environment
Education
What are ethics
- A set of rules that define right and wrong.
- Study of moral behaviour.
- Medicine, law and education have a code of ethics that specify the behaviour of its members.
What are morals
- Behaviour/beliefs deeply rooted in tradition and religion and reinforced by family and educational institutions.
Business ethics
- The application of general rules to business behaviour.
- There exists no universally accepted code in business.
- Varies from business to business.
- Companies have their own internal code of ethics.
What is an ethical dillemma
- When a manager must choose either to pursue or not to pursue a course of action that although offering potential of personal or organizational benefit or both, is also unethical or illegal in a social context.
Can an action be legal but unethical? Example?
If something is not illegal, does not mean it is ethical
Ex. calling in sick and going to the cottage
