Internal Business Environment Flashcards
What responsibilities does a manager have?
-Developing appropriate organisational structures
-Specifying objectives
-Deploying resources
-Evaluating performance
Who is Henri Fayol?
Henri Fayol based his research and writing on his experience as a mining engineer in France.
What 5 manager functions did Fayol put in place?
Planning
Organising
Commanding
Co-ordinating
Controlling
What is Planning?
developing future activities to secure success through planning and not leaving anything to chance.
What is Organising?
recruiting and retaining the best employees while organizing resources.
What is Commanding?
supervising employees to ensure the company reaches it potential.
What is Co-ordinating?
ensuring all departments and tasks complement each other so that there is no duplication of work, and the running is efficient, and waste is reduced.
What is Controlling?
ensuring managers and staff are all working towards a common goal and timing is similar and budgets are being adhered too.
What are Fayol’s 14 principle of management?
Division of labour
Authority
Discipline
Unity of command
Unity of direction
Subordination
Remuneration
Centralisation
Scalar chain
Order
Equity
Stability of personnel
Initiative
Esprit de corps
What is Division of labour?
Employees should be trained in one area and build expertise in that task
What is Authority?
Managers must be able to give instructions and exercise authority to ensure orders are carried out
What is Discipline?
Company policy must be adhered to and consequences must be in place for those who would disobey
What is Unity of command?
Each employee should have only one direct supervisor from whom they receive their orders
What is Unity of direction?
To minimise confusion and conflict, teams with the same task should be working for the same manager and towards the same goals.
What is Subordination?
The interests and intention of one employee (or a group) must not take control over the directions of the entire team
What is Remuneration?
Rewarding employees for their work through financial and non-financial incentives. A fair salary should be awarded as well as perks and bonuses if targets are met.
What is Centralisation?
The involvement of employees in core decision making will minimise their resistance to change.
What is Scalar Chain?
The line of authority from top management to the lowest ranks represents the scalar chain. Communication should follow this chain. This is also known as the chain of command.
What is Order?
The workplace must be clean, tidy, organised and efficient to achieve maximum effectiveness.
What is Equity?
Managers must be objective and fair at all times. Kindness should be shown as well as discipline if necessary.
What is Stability of personnel?
Retaining a core, trained and effective workforce is a primary concern. High employee turnover should be avoided.
What is initiative?
Permitting workers freedom to complete tasks and execute plans in their way will result in increased efforts.
What is Esprit de cor?
Promotion of team spirit and unity amongst workers to minimise conflict and increase productivity. Essentially, corporate culture.
Drucker’s opinion on setting objectives
managers should be aware of the direction of travel for the business what decisions are being made to meet the objectives. Drucker suggested that communicating these objectives are just as important as setting them.
Drucker’s opinion on organising
an organized business runs more efficiently and should then make better decisions. Managers should organize the work into manageable activities which will allow the workers to perform better.
Drucker’s opinion on motivating and communication
Drucker believed in the power of teamwork. Communicating success should improve performance as motivated and empowered employees perform better.
Drucker’s opinion on measuring
Drucker believed in analyzing and appraising performance by measuring success of decisions. Then communicating this success further motivated employees to work harder.
Drucker’s opinion on Developing people
Drucker valued workers and encouraged them to develop their skills.
What does Drucker believe in?
management by objectives. This involves setting clear objectives for each person at every level of the organization – linking in again with the motivational aspect.
What does Mintzberg believe in?
Mintzberg claims that if you ask a manager what he does he describes it in Fayol’s terms, ie planning, organising, commanding, co-ordinating and controlling.
However, if you watch them in practice it is quite different. Mintzberg identified ten roles that managers fulfil. He argued that everything a manager does fits into one or more of these ten roles.
What is a figurehead?
The figurehead’s role is to represent the organisation to the outside world e.g., at a conference. This can help others recognise the importance attached by the firms to various activities and assist the firm in gaining co-operation in pursuit of its objectives.
What is a leader?
The leaders role is to inspire and motivate employees. Workers will want to work hard to please their leader, thus meeting company objectives more effectively. The leadership role may require the manager not perform staff training and set up teams.
What is a liaison?
The liaison role involved developing relationships both within and out with the organisation. Managers can foster relationships with those who could later provide favours and important information to assist the running and success of the firm.
What is a Monitor?
Monitoring checks progress at each stage. If problems are identified, managers can take corrective action to keep organisations on track and meet objectives.
What is a Disseminator?
Disseminating involves informing staff and others of objective so that everyone is clear what is expected and less likely to go off course in meeting objectives.
What is a Spokesman?
The spokesman’s role is to let members of the wider community know what the company is doing. If a manager has displayed effective presentations skills this may win support for the firms objectives.
What is an Entrepreneur?
The entrepreneur role is to come up with ideas and decisions. Good quality decisions are essential to meeting company objectives. An entrepreneur should have the ability to take necessary risks on return for associated rewards.
What is a Disturbance Handler?
The disturbance handler deals with any problems that arise; failure to do so may lead to delays in achieving objectives. This may involve dealing with disciplinary, industrial action, grievance and complex management issues. The disturbance handlers role aims to minimise inefficiency to ensure tasks are on track and deadlines are being met.
What is a Resource allocator?
Decides how the company’s resources should be used; if a company does not have the right place at the right time it cannot meet its objectives. Providing budgets and financial control is central to this role along with allocation of staffing and machinery.
What is the classical school?
They believed in a formal hierarchical structure with clearly defined tasks in the hope of finding the best way of doing things.
Who is Taylor?
American mechanical engineer who sought to improve industrial efficiency
The ‘father’ of scientific management
A fair day’s pay for a fair day’s work
Introduced a piece rate system
Introduced specialisation and division of labour
Examined the way the workers did the job in order to maximise efficiency through motion studies
What did Taylors Scientific Management aim to achieve?
Efficiency - increasing output per worker, maximise resources and offer the best rate of pay through division of labour.
Standardisation - creating consistent job performance by dividing tasks up into small, specified tasks.
Discipline - establishing hierarchical authority and introducing a system whereby all management policy decisions could be implemented.
What did Taylor propose to be successful in his Scientific Management aim?
Work study should be done by managers while the operational tasks should be carried out by workers.
The scientific Analysis of tasks and functions to find the one best way of performing each task.
The use of Piecemeal Incentive pay systems so that the more workers produced the more they were paid.
Cons to the Scientific Management
Monetary rewards for working is now thought to be naïve as they are not the only reason people work.
This theory ignores social and psychological needs of workers.
This theory is seen to treat workers like machines and it cannot be applied to creative jobs where piece rate would not be acceptable.