Management Activities (planning) Unit 3

Question 1

Define Planning

Answer 1

The laying down of goals and objectives and the method of their achievement

Question 2

Define Mission Statement

Answer 2

Brief statement setting out purpose of organisation. It reminds staff of overall aim

Question 3

Define Strategic plans

Answer 3

Long term plan that deals with market share, profitability and diversification for up to 5 years, a vision of the future

Question 4

Define Tactical plans

Answer 4

Break down strategic plans into smaller more manageable 1-2 year plans

Question 5

Define Operational plans

Answer 5

Short plans for specific items daily or weekly issues e.g waste reduction

Question 6

Define contingency plans

Answer 6

Used for dealing with unforeseen events e.g a fire

Question 7

Outline 3 advantages of planning

Answer 7

Planning reduces uncertainty
Planning provides greater unity
Raising finance

Question 8

Outline 3 disadvantages of planning

Answer 8

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

Question 9

Define organising

Answer 9

Arranging the workforce in the most effective way to achieve the objectives of the business

Question 10

Describe a functional structure

Answer 10

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

Question 11

Define chain of command

Answer 11

The link between managers at different levels by which instructions flow downwards to each employee and feedback flows upwards

Question 12

Define span of control

Answer 12

Shows number of people reporting directly to one manager

Question 13

What factors affect span of control

Answer 13

Complexity of work
Productivity of staff
Frequency within which managers can supervise
Ability of managers to supervise

Question 14

Define De-Layering

Answer 14

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.

Question 15

Describe a Matrix structure

Answer 15

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

Question 16

Describe Product Organization structure

Answer 16

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

Question 17

Name 3 main parts of Shamrock Structure

Answer 17

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

Question 18

Define a formal and informal structure

Answer 18

Formal Structure: Has a definite chain of command

Informal Structure: Refers to information network of relationships in an organization e.g The Grapevine

Question 19

Outline Advantages of Functional Structure

Answer 19

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

Question 20

Outline benefits of a matrix structure

Answer 20

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

Question 21

Define Control

Answer 21

The process of checking performance and comparing actual outcomes to targets and taking corrective action where required

Question 22

Outline 4 elements requiring control

Answer 22

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