Management & Entrepreneurship Flashcards
Define management
The process of accepting accountability for the innovative application of resources in order to achieve business goals
What is the Top management responsible for
For strategic decision making and ensuring a sustainable future.
What is the Middle management responsible for
For making medium-term tactical decisions and ensuring that there’s synergy in different functional areas of the business
What is the Lower management responsible for
For day to day decision making like managing operations of the business
What are the Management tasks
Planning
Organisation
Leading
Controlling
Communication
Coordination
Delegation
Discipline
Decision- making
Motivation
What is planning
A rational process aimed at the future
What is the importance of planning
- helps the business focus on objectives
- Minimises risks and uncertainty
- Ensures coordination in order to achieve the overall mission
What are the steps in the planning process
- Establishing objectives
- Deciding the planning processes
- Considering the alternative plans
- Implement the plan
- Control process
Define Organising
Identifying the activities that the business undertake to ensure success
What are the steps involved in organising
- Consider objectives
- Identify and group activities
- Assign duties
- Delegate authority
What are the advantages of proper organisation
- helps facilitate necessary communication
- helps employees understand their different roles
- Stimulates creativity to solve particular problems
What are the principles of Leading
Harmony of objectives
Effective communication
Unity of direction
Direct supervision
Follow up
What are the qualities of a sound leader
- guides people to ensure objective are met
- encourages others
- Able to make decisions
- is a mediator and arbitrator
Name the different Leadership styles
Autocratic leadership style
Democratic leadership style
Laissez faire leadership style
Autocratic Leadership
- Formulates all objectives, policies and procedures without input from anyone
An advantage of Autocratic Leadership
Quick decision making so crisis is handled quickly
A Disadvantage of Autographic Leadership
People don’t feel valued because they don’t take part in decision making
Democratic Leadership
- Internal stakeholders brainstorm then leader takes the final decision
Advantages of Democratic Leadership
-Helps grow the confidence & collective performance of the workforce
- Boosts morale
Disadvantages of Democratic leadership
- Can be used as an excuse to avoid responsibility
- It takes a while to make decisions
Laissez faire leadership
- Free-rein leadership
- consists of creative, intrapreneurial , competent and independent thinkers
- Provides necessary information and resources needed to achieve objectives
An Advantage of Laissez faire leadership
It motivates staff by trusting them
A Disadvantage of Laissez faire leadership
It May create uncertainty and confusion
Characteristics of a Leader
-Has informal power
- People follow them by choice
- People must believe in their vision
- Inspires, influences and motivates
Characteristics of a Manager
- Has formal power
- People work for them
- is appointed
- should be a leader as well
What is Control about
Checking the current performance against the predetermined standards that were set in the planning phase to ensure there is progress in achieving the business’s objectives
What are the steps in the Controlling process
- Establish Standards
- Measure actual performance
- Corrective action
What the components of a good control system
-suitable
- Flexibke
- Motivate staff
- Aimed at the future
Define Communication
The process of exchanging information, opinions, views and ideas between staff members and managers
What is the importance of clear communication
It helps employees understand the whats, whys and hows in-order to achieve objectives
What are the principles of sound Coordination
-Clear objectives
- Comprehensive business policies
- Proper Initiation process
- Clearly communicated chain of command
Define Delegation
The allocation of responsibility and authority to subordinates to ensure a more meaningful distribution of work.
Define discipline
Action taken to improve future behaviour of employees
What influences Decision- making
PESTLE factors
Define what Motivational theories are and give examples of them
Are theories that look at different methodologies that can applied to convince employees to perform at optimum levels
- Maslow’s hierarchy of needs
- Adam’s equity theory
Maslow’s hierarchy of needs
Satisfied needs= motivation
What are Maslow’s five levels of needs
Self-actualisation
Esteem needs
Social needs
Security needs
Physiological needs
Self-actualisation
Looks at the person’s desires to achieve his/her full potential
Esteem needs
The desire for esteem results in the need for power, prestige and stayisy
Social needs
People needs to feel a sense of belonging and friendship
Security needs
Security of body, employment, resources and property
Physiological needs
Basic needs to ensure a sustained life
Inequitable rewards
Dissatisfaction leads to reduced output
Equitable rewards
Continuing at the same level of output
More that equitable rewards
Works harder and exceeds required output
What is an entrepreneur
A person who has the ability to see and evaluate business opportunities
Give 5 Entrepreneurial characteristics
-Initiative
- Persistent
- risk taking
- Problem solver
- Assertive
What is the difference between a Manager and an Entrepreneur’s motives
- A Manager ensures the success of the business they work at
- An Entrepreneur ensures the success of their own business in order to gain personal gratification
What is the difference between a Manager and Entrepreneur’s Status
-A manager is an employee in a business
- An Entrepreneur is the owner of the business/ employer
What is the difference between the risk faced by a Manager and the risk faced by an Entrepreneur
- Manager faces the risk of job security
- Entrepreneur assumes all the risks
How is a Manager and an Entrepreneur differently rewarded
- Manager is rewarded with a salary/ bonus
- Entrepreneur receives all profits
How does the Innovation of a Manager differ from that of an Entrepreneur
- Manager innovates through being involved with the execution of plans
- Entrepreneur innovates through creative thinking and problem solving
What are the activities performed by an intrapreneur
- Idea generation
- Raising of funds
- Project implementation
What is the difference between an Intrapreneur and an Ultrapreneur
- Intrapreneur creates new ideas and then converts them into products & services within the framework of the business
- Ultrapreneur identifies viable business opportunities and then establishes a business.
What are the components of a Socio-preneur
- Solvers social problems
- Profits to achieve widespread social improvement
What is an example of a socio-preneur
What are the components of a Techno-entrepreneur
- uses technological advancements
-Technology developer
-Technology user
Give examples of techno-entrepreneurs
What are the components of an Eco-preneur
- solves problems by creating environmentally friendly products/ services
Give an example of an Eco-preneur
What does a Tender-preneur do
-gets tenders and subcontracts them to others
Give an example of a tender- preneur
