Management Activities (planning) Unit 3 Flashcards
Define Planning
The laying down of goals and objectives and the method of their achievement
Define Mission Statement
Brief statement setting out purpose of organisation. It reminds staff of overall aim
Define Strategic plans
Long term plan that deals with market share, profitability and diversification for up to 5 years, a vision of the future
Define Tactical plans
Break down strategic plans into smaller more manageable 1-2 year plans
Define Operational plans
Short plans for specific items daily or weekly issues e.g waste reduction
Define contingency plans
Used for dealing with unforeseen events e.g a fire
Outline 3 advantages of planning
Planning reduces uncertainty
Planning provides greater unity
Raising finance
Outline 3 disadvantages of planning
May be too rigid managers not prepared to respond to changing circumstances
Must be monitored or may not be achieved
May be affected by outside circumstances e.g war or covid 19
Define organising
Arranging the workforce in the most effective way to achieve the objectives of the business
Describe a functional structure
Has a person in charge of each department all staff answerable to CEO
Each managers responsible for all workers down the line
Staff specialists located in their departments e.g finance specialist in finance department
Define chain of command
The link between managers at different levels by which instructions flow downwards to each employee and feedback flows upwards
Define span of control
Shows number of people reporting directly to one manager
What factors affect span of control
Complexity of work
Productivity of staff
Frequency within which managers can supervise
Ability of managers to supervise
Define De-Layering
Changing the organisational structure of a business by removing layers of middle management. This allows the firm to respond more quickly to change in market place and reduces labour cost.
Describe a Matrix structure
Good for achieving certain projects
Combines strength of various departments
Requires good communication and interpersonal skills
Each member of a department is answerable to a department manager
Describe Product Organization structure
Focuses on only 1 product and delivers best possible product
Each product run as separate business and judged on profit
Has multiple marketing departments can lead to wasteful higher costs
Name 3 main parts of Shamrock Structure
Core workforce: Management and staff work together rather than a boss and subordinate. Loyal and flexible.
Freelance contractors: Employed on fee basis only taken when required
Flex workers: Part time workers when need arises. May have specialised skill
Customers: Serve themselves, Assemble products at home, Telephone sales department
Define a formal and informal structure
Formal Structure: Has a definite chain of command
Informal Structure: Refers to information network of relationships in an organization e.g The Grapevine
Outline Advantages of Functional Structure
Each department is a pool of expertise which increases efficiency
Staff know where they are in the structure and can plan a career path which increases morale
Each department has a head of department, therefore everyone knows who makes important decisions increases decision making speed and efficiency
Outline benefits of a matrix structure
Co-ordination and communication within the business improved as team members with different skills work together
Innovation and problem solving improved due to different skill levels and experience
Define Control
The process of checking performance and comparing actual outcomes to targets and taking corrective action where required
Outline 4 elements requiring control
Cash: Cash flow forecasts necessary to ensure the business has enough money to pay its way i.e money coming in should be greater than money coming out
Quality: Vital to ensure needs of customers met, all areas of the business need quality control
Staff: Attendance, punctuality and performance
Production Costs: Cost of raw material, machinery, wages etc especially if firm looking for higher profit
