Management and entrepreneurship [C3] *G11 Flashcards
Definition of management *3
*The process of accepting accountability
*for the innovative application of resources
*to achieve business goals
Explain top management responsibilities *3
*The strategic direction of the business
*planning for the future
*taking responsibility for overall business results
Explain middle management responsibilities *3
*responsible for tactical decisions (middle-term decisions)
*interperet top management decisions
*business plan interpreted by each department
Explain lower management responsibilities
*day to day decisions
What basic tasks do all management levels perform *4
Planning
Organising
Leading
Controlling
What is planning
Creative and logical thinking is used to improve future performance of the business
(Question words(what,who,how,when))
Principles of effective planning *4
(red flowers pick pots)
*rational process aimed at the future
*following the funnel approach
*plans being flexible
*planning taking place on all levels in the business
Explain planning in terms of rational process aimed at the future
*future is anticipated to identify the gap between the current stage and wanted future of the business
Explain the funnel approach
Doing an environmental scan on all environments
(Micro, market, macro)
Explain how plans would need to be flexible *2
*Adapting to internal and external pressures
*Flexibility is limited to resources
Explain how planning takes place at all levels in the business
*top level communicates long term direction to ensure understanding
*each manager must be given guidance from their superior to ensure plans are realistic
Explain the importance of planning *4 [find mice calling cris]
*ensures attention is focused on business objectives
*well thought plans minimise risks
*planning promotes coordination
*planning assists with control
Name the steps in the planning process *5
[Esther plants apples in class]
*establishing objectives
*deciding on planning period
*considering alternatives
*implementing the plan
Controlling process
Explain establishing objectives
objectives are developed and communicated to other business functions
Explain deciding planning period
Planning the length of planning
(Long/short term)
Explain considering alternatives *3
*Seeing if there are other ways of activities being conducted
*Coming up with backup plans
*Feasibility and viability analysis
Explain implementing plan
Allocating resources to conduct the plan
Explain controlling process
Placing controlling mechanisms to ensure objectives are achieved
What does organising involve
To identify activities that should be undertaken to ensure business’ objectives are achieved
What are the steps in organising *4
[Cream in a donut]
1.considering objectives
2.identifying activities
3.assigning of duties
4.delegating authority
Explain considering objectives as a step in organising
Ensuring everyone clearly understands what the objectives are and why they’re important
Explain identifying and grouping activities as a step in organising
Identifying activities assists in avoiding unnecessary duplication and wastage of resources
Explain assigning of duties as a step in organising *2
*Tasks are assigned to workers
*Resources are allocated to workers for empowerment
Explain delegating authority as a step in organising *2
*Responsibility and authority are delegated to subordinates
*to ensure activities are performed in line with objectives
Name the advantages of proper organization *5
*Patterns of communication
*Authority and responsibility
*Create proper balance
*Stimulate creativity
*Encourage growth
What are the principles of leading *5
*Harmony of objectives
*Effective communication
*Unity of direction
*Direct supervision
*Follow up
Explain harmony of objectives
Ensuring business’ and employees personal objectives are achieved
Explain clear communication *4
Manager ensures employees understand the plan, policies, procedures and responsibilities
Explain unity of direction
Each employee knows who gives instructions and who to report to
(Prevents confusion)
Explain direct supervision
Knowing employees personally boots employee morale
Explain following up *2
*Being aware of employees challenges and making adjustments to the employees skills
*Assisting where necessary
Leader characteristics *3
*influences people to do what the situation requires
*has informal power
*people oriented
Manager characteristics *3
*appointed in a particular position in a business
*has formal power
*task oriented
Name 6 elements of sound leadership
*Planning - planning what has to be done to achieve future goals
*Making decisions - makes decisions if situations requires it
*Guiding subordinates - decide actions to be taken, guide subs to implement plan
*Encourage others - encourage to improve business performance
*Take Initiative - get job done themselves if needed
*Mediator and arbitrator - to help find common ground
Leadership/management style definition
A way the leader behaves while influencing the behaviour of the workforce
Explain autocratic leadership *2
*commands subordinates when directing activities without the input of employees
*employees have no doubt of chain and command
Advantages of autocratic leadership *3
*boosts productivity
*quick
*workers know what to do
Disadvantages of autocratic leadership *3
*lack of freedom among workers
*lack of creativity
*no employee morale
Situation where autocratic leadership is suitable *3
*when workers need to do unfamiliar tasks
*when there’s a crisis
*when quick decisions need to be made
Explain democratic leadership
A participative leadership style where the leader encourages joint decision making and allowing team to be involved
Democratic leadership advantages *2
*Boots workforce morale
*freedom among workers
Democratic leadership disadvantages *3
*Decisions can take long
*A way to avoid responsibility
*demotivation If ideas aren’t used
Situation where Democratic leadership is suitable *2
*when different ideas need to be thought of
*when manager needs more perspectives
Explain laissez faire leadership *2
*Leader does not control workforce
*rather supplies employees with necessary resources to achieve objectives
Laissez faire leadership advantages *3
*theres workforce morale
*freedom among workers
*promotes creativity
Laissez faire leadership Disadvantages
*can create confusion on how to achieve goals
Situation where Laissez faire leadership is suitable *2
*working with employees that are creative and interperenoural
*when workers are experienced and skilled
What is control about *2
*Checking current performance against predetermined expectations *to ensure there’s progress in achieving the business objectives
What are the steps in the controlling process *3
*establishing standards
*measuring actual performance
*corrective action
What does measuring actual performance refer to
Evaluating different activities against the required standards
What does corrective action refer to
Putting necessary plans in place to rectify deviation from the plan
What are the components of a good control system *5
*suitable
*flexible
*motivate
*future performance
*economical
Explain suitable as a component of a good control system
The level which the employee functions will determine the type of control system appropriate
Explain flexible as a component of a good control system
Functional system must be able to adapt to change
Explain motivation as a component of a good control system *3
Workforce thinks being treated fair = positive reaction = motivates employees to achieve their goals
Explain future performance as a component of a good control system *2
Monitoring processes for deviations* ensures future performance is safeguarded
Explain economical as a component of a good control system
Cost of control system will not exceed benefits gained
What is communication *4
The process of exchanging Information
Opinion
Views
And ideas between staff
What is the aim of communication
Help employees what and how they should be doing
Horizontal communication meaning
Same level
Vertical communication meaning
Different levels of management
What is coordination
Working together to achieve a common goal
What are the principles of sound coordination *5
*Clear objectives
*Comprehensive business policies
Induction process
Chain of command
Liaison between departments
Explain clear objectives (principles of sound coordination) *2
*Effecient communication of vision *to ensure common understanding throughout the business
Comprehensive business policies (principles of sound coordination)
Help employees understand expectations
Induction process (principles of sound coordination)
Ensure employees understand expectations from day one
Chain of command example *2
*Line of authority in the business
*Help avoid conflict in workplace
Liaison between departments (principles of sound coordination)
Ensures intergration and coordination
What is delegation
The allocation of responsibility and authority to subordinates
What does delegation do
Ensures a more meaningful distribution of work as everyone does what they’re good at
Discipline purpose
Improve the future behaviour of the employee
Nature of discipline depends on the seriousness of the offence
What does motivating an employee do? *2
*Make them feel like they have a special interest in work
*Want to fulfill responsibilities
What does performance in the workplace depend on *2
Ability to do the work + willingness to complete activities
What are the elements in Maslow hierarchy *5
Needs:
*physiological
*security
*social
*esteem
*self-actualisation
Explain physiological needs
Basic needs to survive
Food, water, shelter, sleep
Explain security needs
The need to feel safe
Job security
Explain social needs
People need to feel like they belong
Explain esteem needs
Esteem results in need for power, which motivates
Explain self actualisation
One’s desires to achieve their full potential
Explain Maslow theory
*2
*a worker with unsatisfied needs does not have the motivation to put it maximum effort
*fulfilling theses needs motivates workers to perform at better levels, which benefits the business
What is Adam’s equity theory in short
There’s a relationship between performance of workers and rewards received
Explain Adam’s equity *3
*Inequitable rewards = dissatisfaction = reduced output
*equitable rewards = continuation of same level of output
*more than equitable rewards = works harder = exceeds required output
Name some entrepreneurial characteristics
*min 5 max 11
Initiative
Planner
Persistence
Concern for quality
Risk taker
Self confidence
Assertiveness
Experience
Info gatherer
Problem solver
Credibility
Difference between manager and leader *2x3
*manager - appointed in position - has formal power - task oriented
*leader - influences people to follow - has informal power - people oriented
Manager motive
Works in an already existing business to ensure the success of it
Entrepreneur motive *3
*Build own business
*Gain personal gratification
*Ensure success
Manager status
Employee
Entrepreneur status
Owner
Manager risk
No financial risk other that job security
Entrepreneur risk
All risk involved
Manager rewards *2
Salary
Sometime bonus
Entrepreneur rewards
Receives all profit
Manager innovation
Execution of plans
Entrepreneur innovation
Innovates through creative thinking and creative problem solving
List activities performed by an entrepreneur *6
Idea generation
Market research
Raising of funds
Recruitment
Procurement
Project implementation
Intrapreneur definition *3
*A person in a business
*Who creates new ideas *and converts them into products/services
What’s a techno entrepreneur
One that uses tech advancements to build a new business venture
Ultrapreneur definition
*identify a business opportunity then establishes the business
What’s a socio preneur *2
*One that uses innovative ideas to solve community problems
*Aim: achieve widespread social improvements»_space;> make profit for themselves
Explain techno developer
Develops a new and unique technological concept that drives the new business
Explain technology user
One who identifies new tech and understands how it can be best used for meeting customers needs
What’s an eco preneur
One who’s business is based on solving environmentally friendly products/services
What’s a tender preneur
One who had a business based on a tender they would like to apply for
