Management, Entrepreneurship & Leadership

Question 1

List the four types of entrepreneurs

Answer 1

Techno-entrepreneur, social-entrepreneur, tourism-entrepreneur, enviro-entrepreneur

Question 2

Give information on techno-entrepreneurs and examples of such.

Answer 2

They look at ways to develop technology or use technology to grow their business.
E.g, bill gates, Elon musk, Steve jobs

Question 3

Give information on social -entrepreneurs and examples of such.

Answer 3

Start businesses to solve social problems in society. Usually Non Government Organisations (NGO’s).
E.g, Working to solve poverty, crime, education

Question 4

Give information on tourism -entrepreneurs and examples of such.

Answer 4

They identify gaps in the tourism industry and then offer goods/services to attract tourists to the country.
E.g, hotels, sight-seeing tours, selling memorabilia.

Question 5

Give information on enviro-entrepreneurs and examples of such.

Answer 5

Create businesses to solve environmental problems, therefore contributing to a sustainable environment.
E.g, selling solar panels.

Question 6

Due to the developments in SA over the past few years, there has been a rise in a couple “new” types of entrepreneurs. Name them and give detail.

Answer 6

Emerging entrepreneurs:
- previously disadvantaged
- the Preferential Procurement act created a group of entrepreneurs that focus on opportunities offered by rendering services/selling goods to the public sector (government contracts)

Informal entrepreneurs:
- operates in the informal sector
- has no fixed premise & does not pay tax
- positive role in the economic development as it creates jobs, contributes to skills development and encourages economic growth

Youth entrepreneurs:
- private-public-partnerships initiatives have been set up to encourage youth entrepreneurship.
- initiatives assist in training youth through entrepreneurial programs, while providing necessary resources and on-going support
- if youth entrepreneurship can be grown, unemployment will decrease, resulting in a higher standard of living in SA.

Question 7

Give examples of skills that would be considered to be on the top level of management.

Answer 7

Executive coaching, change management, leadership, delegations, and empowerment, et cetera. The section is in charge of strategic decisions. An example of a job in this sector would be a CEO (chief executive operator).

Question 8

Give examples of skills that would be considered to be on the middle level of management

Answer 8

Problem-solving, teambuilding, talent, development, performance, management, et cetera. This sector is in charge of making tactical decisions. An example of a job in the sector would be a manager of marketing at the headquarters of a business.

Question 9

Give examples of skills that would be considered to be on the low level of management

Answer 9

Emotional intelligence and coaching for performance, et cetera. For example, being a manager in store. This level makes the operational decisions, AKA the day to day decisions.

Question 10

List the management styles.

Answer 10

Autocratic
Democratic
Laissez-faire (AKA free reign)
Transformational
Transactional
Situational

Question 11

Describe the autocratic management style in detail.

Answer 11

-Also known as authoritarian leadership.
-Autocratic leadership style can easily be summed up by the command, “do as you’re told.”
- Direction comes from the top, a singular figure who leads a company or team.
- An autocratic leader, determines strategy, policies, procedures, and the direction of the organisation, dictating everything to subordinates.
- Authoritarian leaders are not focused on collaboration with those in their circle, they are rarely interested in feedback, and they prefer to hold all of the power and be in charge.
- Pros: Eliminates confusion (especially when managing unskilled workers), gets quick results in times of crisis, no doubt about chain of command, saves time.
- Cons: Employees often have a low morale & feel undervalued, doesn’t ask for input

Question 12

Describe the Democratic management style in detail

Answer 12

• Also known as Participative management.
• Involves gathering input from your subordinates and team members, so everyone has a chance to contribute to the decision-making process.
• Democratic leaders are still the decision-makers, but their approach allows others to feel engaged and have a stake in the final outcome.
• Democratic leaders excel at sparking creativity among subordinates, and projects are enhanced fast when positive contributions come from all sides. (Creativity = motivated employees.)
• Pros: ensures buy-in and commitment from those involved, grows confidence and collective performance of the workforce
• Cons: takes a long time toe to make decisions, can be used to avoid responsibility

Question 13

Describe laissez-faire management style in detail

Answer 13

• This management style involves empowering your employees, being hands-off, and trusting them to accomplish the task at hand, without constant questions or micromanagement.
• Laissez-faire leaders, leave decisions of employees, while staying available to provide feedback when necessary.
• This style is good for creative jobs.
• Can yield excellent results if workforce is highly skilled, independent thinkers (creative / intrapreneurial / competent / high integrity levels) and motivated to perform optimally
• Not suitable in all circumstances
• can create uncertainty and confusion

Question 14

Describe transformational management style in detail.

Answer 14

• This management style is a combination democratic / autocratic / laissez faire
• It involves developing a grand vision and rallying your employees around it.
• Under this style, the team is eager to transform and evolve – personally and professionally – in order to achieve the overall goal.
• With the organisation and employees aligned, teams working under transformational leader, are united for a singular cause, and willing to commit their effort, time, and energy to the organisation.
  -Charismatic by nature
• builds confidence and trust between employees and management

Question 15

Describe transactional management style in detail.

Answer 15

• A give-and-take approach
• Manager motivates employees to perform their tasks in return for possible salary/bonus/monetary or non-monetary rewards
• Con: as soon as reward is regarded as insufficient, they become demotivated and leads to labour unrest
• SA is a nation that loves to strike because of the many low skilled workers
• Solution: Consider employee input, use of autocratic leadership

Question 16

Describe situational management style in detail.

Answer 16

• Considered the most effective style of management, combo of all styles
• Adapts the management style to whatever is required in the specific situation - style chosen depends on which will yield the best results if implemented
• E.g, if the situation requires disciplinary action (because someone broke the CoC for example), an autocratic style is adopted

Question 17

What are the management tasks?

Answer 17

P O L C3 D3 M:

Planning
Organising
Leading
Control
Coordination
Communication
Delegation
Decision making
Discipline
Motivation

Question 18

What is the KISS principle?

Answer 18

It’s a communication tool that states:
Keep It Straight and Simple

Question 19

When being asked a management question, what should one consider/

Answer 19

Whether you are being asked :
STYLES (laissez faire etc),
TASKS (POLC3D3M),
or
LEVELS (top/middle/lower)

Question 20

Discuss task 1 of the management tasks.

Answer 20

PLANNING
- plan to ensure that actions are geared towards the desired outcome
- Plan should be drawn up with the aim of achieving the goals and objectives of the business
- Plan should be flexible and adaptable according to circumstance (strategy: have a contingency plan)

Steps in the planning process:
1. Understanding the problem.
2. All the relevant information.
3. Analyse the information.
4. All possible eventualities.
5. Decide on a plan of action. Consider alternative contingency plans.
6. Implement the plan carefully.
7. Follow-up to ensure that the plan is successful.
8. If Unsuccessful = implement corrective action. (Referring to contingency plan.)

Question 21

Implement an example of task one under management tasks.

Answer 21

PLANNING
Example: plans to open a UNIQ store at Cavendish. (don’t need every step.)
Step one: expansion of UNIQ brand
Step two: location (possibility of foot traffic?), store layout, demographic (& LSM) of target market, training of staff on UNIQ brand, trends, competition, advertising
Step four: use SWOT/P6F/PESTLE

Question 22

What are the principles of planning?

Answer 22

(Note that planning is the P in POLC.)
Accountability
Aiming at the future
KISS principles
Planning as a management tool

Question 23

Discuss accountability as a principle of planning

Answer 23

• be responsible for development and implementation of programs
• managers must receive guidance and support from middle/top managers during the planning and implementation process. This is where top to bottom/bottom to top communication is very important.

Question 24

Discuss aiming at the future as a principle of planning

Answer 24

• planning has to be done in advance
• Gives guidance to employees to implement changes timeously
• ensure the plans are within the budget (realistic)
• Clear communication
• Crucial to inform employees of desired goals
• Communicate plans in writing (emails), to refer back to and confirm with the original goal.

Question 25

Discuss KISS principles as a principle of planning.

Answer 25

• Keep it straight and simple
• Plan must be easy to understand and implement

Question 26

Discuss planning as a management tool as a principle of planning.

Answer 26

• Should be used to guide employees towards the end goal
• No plan can yield results without it being implemented

Question 27

Discuss task two of management tasks.

Answer 27

ORGANISATION
-arrange activities in such a way that all resources contribute towards a systematic and successful business
- Factors of production (resources) include: employees, working, raw materials
- different manages of each function: general manager/CEO ensures that all the function managers realise their tasks are interdependent/interrelated. They must work together to achieve the overall goals of the business
- Also includes the reporting structures within the business
- No single correct structure that fits all businesses. The reporting lines should be clear in order to avoid confusion and blame-shifting.

Question 28

Discuss task three of the management tasks

Answer 28

LEADING
- Management must ensure guidance and support in order to implement plans and reach the desired outcome. Employees are guided to achieve the goals of the business and their personal goals
- A good leader will strive to maintain the balance between being task orientated and people orientated. Being orientated focuses on getting the job done while being people orientated focuses on the needs of the employees.

Question 29

What are general rules for good leadership?

Answer 29

• Workers should always be helped to understand what goals are to be achieved
• Leaders must allow and encourage subordinate to provide input and opinions
• employee morale improves if employees know that management respects them and will support them where possible
• Good work should always be recognised openly. Employees/addressing work related problems should be done in private and criticism should never be personal. It should rather be constructive to guide the employee to avoid repeating the mistake.
• explain why changes are certain procedures are to be followed and ensure employee acceptance and cooperation

Question 30

Discuss task four of management tasks.

Answer 30

cONTROL
- Used as the last step in any process and to identify possible gaps in processes
- Provide the manager with feedback. Determine how problems can be addressed in order to improve the performance of employees and the overall business.

Steps in the control procedure :
Step one: set standards in any function (PR, HR et cetera )
- Companies expectations are clear to every employee
- Standards and expectations are used as benchmarks to compare with actual performance
- Standard indicate to employees what will be evaluated and how it will be evaluated.
Step two: measure actual performance against the predetermined standards from step one. This provides the gap that requires improvement.
Step three: correct deviations
- If there are: when actual performance is compared to expected performance
- Correct deviations by training or discussing the cause of the deviations
- To prevent repetition of substandard work

Question 31

Discussed task five of management tasks

Answer 31

COORDINATION
- Ensures that there is cooperation between different departments in the business
- Everybody works towards a common goal
- Key to coordination and cooperation is clear communication (using the KISS principle)
> ensure everybody understands the expectations required
> In meetings will help ensure that this is achieved
- Ultimate goal: create synergy between individual efforts, teams and departments.

Question 32

Discuss task six of management tasks

Answer 32

COMMUNICATION
- Communication: the transfer and receiving of ideas and attitudes between management and workers, as well as between the business and external stakeholders.
- Examples of external stakeholders are media (to monitor social platforms), suppliers (accurate orders and pay on time), customers (advertising ethically, good experience and customer services), government (legal laws, for example the consumer protection act)
- it is not possible to build a relationships with different stakeholders without communication
- Communication ensures coordination of activities within the business by letting workers know exactly what is expected of them
- Clear communication channels enable workers to inform management about problems and ideas
- Proper communication may help to improve the overall organisation performance
- if Relevant information is given to the people, it can assist in decision-making

Question 33

Discussed task seven of the management tasks

Answer 33

DELEGATION
- Necessary to reduce the workload of employees
- Achieve more meaningful distribution of tasks and responsibilities
- Manager will delegate duties, authority and responsibilities to subordinates according to their skills and experience
- The person to whom the tasks were delegated must be able to perform the new tasks and may need additional training to empower them
- The person who is performing the tasks are authorised to handle situations that arise from the attitude responsibility.
- Manager and employee are responsible. Both will be held accountable for the quality of the work done.

Question 34

Discuss task eight of the management tasks

Answer 34

DECISION MAKING
- all relevant facts must be considered when making a responsible decision and accountability must be taken
- A choice is made between regarding what will be the best in a particular situation
- Business decisions should be objective and unbiased with no personal prejudice influencing this decision
- Assess the decision by considering feasibility and viability

Question 35

Why is communication arguably the most critical of the management tasks?

Answer 35

Without it, none of the functions can operate.

Question 36

Discuss task nine of the management tasks

Answer 36

DISCIPLINE
- The purpose is to improve future behaviour in the business (code of conduct)
> important that everybody knows what is regarded as misconduct
> know what the consequences will be if rules are broken and performance standards are not met ( which would lead to a decrease in profitability, motivated employees, & unhappy customers)
- Disciplinary measures should be consistent and fair
- Does not have to be through warnings before the employee is dismissed. Minor offence = one or more verbal warnings. Continuing the same behaviour after verbal warning = a written warning is issued followed by a 2nd = followed by a final written warning. Serious offence = immediate suspension of the employee into a disciplinary hearing can be conducted, no verbal or written warnings required.
- Business code of conduct will specify what the disciplinary action should be for different offences.

Question 37

Discussed task 10 of management tasks

Answer 37

MOTIVATIONAL FACTORS
- what may motivate one employee, may not be important to another
- two broad categories of motivational factors: monetary and non-monetary

Question 38

What are the advantages of a motivated workforce?

Answer 38

• more likely to provide good customer service which results in happy customers who will come back (and a likely increase in local customers) (P6F: customers will not switch to competitors)
• More productive employees which may lead to lower cost per unit and leads to greater opportunities for profit (loves the business to make the selling price more competitive)
• lower levels of absenteeism or lower staff turnover:
  >advantages of less training when staff retention is high
  >lower recruitment costs
  >Lower training costs
  >Happy workers who will say positive things about the business
  >Good word-of-mouth
  >Improves the businesses image
  >more sales
  >Easier to recruit top quality workers
  >Benefits associated with a strong brand
  >Positive impact on the other departments
  >boosting their morale as well

Question 39

What monetary factors motivate employees?

Answer 39

• Salary increase(temporarily raises the levels of motivations of some workers does not take long for someone to get used to more money in their pockets. employee may become demotivated if there is a small chance of a future salary increase.)
• Performance bonus
• Profit sharing
• Payment on commission
• Paid holiday (however, if the target is not met rewards and fringe benefits may be in jeopardy)

Question 40

Discuss non-monetary factors as a means of motivation under management tasks

Answer 40

• Job enlargement:
  >Additional tasks are added to the original job
  >May motivate the employee if they feel there is repetition
  >Makes the job less monotonous
  >Make sure the employee does not feel demotivated because now they have more work to do for the same salary
  -job enrichment:
  >Employee gets more responsibility and more authority
  >Employee feels that they are trustworthy
  >Feel on a personal level they are able to achieve their full potential
  >May be necessary to give employee additional training to ensure their skills level matches the requirements of the task
• Empowerment and advancement:
  >Employees are given the opportunity to develop by learning new skills
  >They can gain wider knowledge to be applied when they offered new challenges and responsibilities
  >It is a win-win situation because the business gains from the new competencies and the employee has more to add their CVs .
• flexible hours:
  >Allow employee to decide which hours should be allocated to work and various activities
  >Motivational levels will increase
  >Get the work done more efficiently, speedily and at a high standard
  >People try to find a balance between worklife and personal life
  >Recognition of good work, preferably done openly in front of office colleagues . Reprimanding of employees should be done in a closed office in private.
  >Form of recognition could be employee of the month or week programs.
• appreciated employees and motivated:
  >Achieved through recognition
  >Allow employees to be part of a successful team
  >Include them in decision-making when appropriate
  >Respect their opinions
• Precise instructions:
  >Some employees prefer it
  >For Some tasks or work to be performed
  >Can increase motivation levels and job performance
  >Other employees may prefer to work independently and do not want to constant supervision or questions about their performance.
• wellness programs:
  >For example: childcare facilities, time off, assistance with household problems, free parking, gym memberships.

Question 41

What are the differences between a manager and an entrepreneur in terms of their motives?

Answer 41

A manager: employment, as they work in a business that already exists. A manager works to ensure the success of the business.
Entrepreneur : to build their business , to gain personal gratification and to ensure that they are successful.

Question 42

What are the differences between a manager and an entrepreneur in terms of their status?

Answer 42

Manager: employee of a business
Entrepreneur : owner of the business

Question 43

What are the differences between a manager and an entrepreneur from a risk perspective?

Answer 43

Manager: the manager does not bear any financial risk apart from job security
Entrepreneur: assumes all of the risk involved in the business

Question 44

What are the differences between a manager and an entrepreneur within a rewards perspective?

Answer 44

Manager: a manager is rewarded for a job done with a salary and sometimes a bonus
Entrepreneur: receives profits from the business

Question 45

What are the differences between a manager and a entrepreneur from an innovations perspective?

Answer 45

Manager: is involved with the execution of plans
Entrepreneur: is the person who innovates through creative thinking and creative problem-solving

Question 46

What is the definition of a leader?

Answer 46

Someone who has the expertise to make people aware of the advantages of pursuing a certain course of action. This person is able to create a desire in people to follow them to achieve a common goal while empowering them.

Question 47

What is the definition of a manager?

Answer 47

An individual who has been appointed to a position of authority (such as a shopfloor manager at pick and pay). The authority of this person enables them to insist on people doing what they instruct.

Question 48

Leader versus manager?

Answer 48

• to be successful, a manager needs to be a leader
• Few people respond well to being managed (stakeholders do not like being managed generally). Most people respond well to someone who recognises each individual strength and acknowledges the contribution that each person makes.
• Manager is most likely to be better equipped for a task if they develop entrepreneurial qualities.

Question 49

What are the differences between a leader and a manager in terms of how they do their jobs?

Answer 49

Question 50

List the skills of an entrepreneur. (11 pts)

Answer 50

• identifying opportunities
• knowing their customers
• being an opportunist
• commitment and perseverance
• creativity and innovation
• preparing and implementing plans
• showing leadership qualities
• evaluating achievements and progress
• making quick decisions
• communication
• being personally motivated

Question 51

Expand on identifying opportunities as a skill of an entrepreneur.

Answer 51

• risk assessment must be made an opportunities taken advantage of
• an entrepreneur needs to take risks in order to reap rewards
• needs to continuously scan the internal and external environments
• must be proactive in identifying both opportunities and threats

Question 52

Expand on knowing their customers as a skill of an entrepreneur.

Answer 52

The entrepreneur must:
- know their customer’s needs
- understand the customer’s LSM
- be willing to develop or change the business plan to satisfy the customer’s needs

Question 53

Expand on being an opportunist as a skill of an entrepreneur.

Answer 53

• the market / business environment may not always be suitable or fit in with the initial plan
• entrepreneur must be able to anticipate market trends and identify positives
• then make use of these positives as an advantage to the business

Question 54

Expand on commitment and perseverance as a skill of an entrepreneur.

Answer 54

This is needed when starting a new business.

Question 55

Expand on creativity and innovation as a skill of an entrepreneur.

Answer 55

• these are both requirements when getting a new business off the ground
• being different to the competition, using differentiation strategies and having a USP

Question 56

Expand on leadership qualities as a skill of an entrepreneur.

Answer 56

• the entrepreneur needs leadership qualities in order to achieve success
• they must be able to convince and motive others to buy in on the plan
• follow the leader to achieve the desired goals

Question 57

Expand on evaluating achievements and progress as a skill of an entrepreneur.

Answer 57

Corrective measures must be initiated if needed.

Question 58

Expand on making quick decisions as a skill of an entrepreneur.

Answer 58

These must be made about opportunities as they arise.

Question 59

Expand on communication as a skill of an entrepreneur.

Answer 59

• communication must be clear and accurate
• it is critical to implement strategies to overcome challenges and capitalise on opportunities

Question 60

Expand on being personally motivated as a skill of an entrepreneur.

Answer 60

• entrepreneurs must be able to work on their own
• being in charge of what is going on
• being insightful enough to know their own shortcomings
• must surround themselves with a supportive team

Question 61

What are the characteristics of an entrepreneur?

Answer 61

Initiative
Planner
Persistence
Concern for quality
Risk taker
Self confidence
Assertiveness
Experience
Information gatherer
Problem solver
Credibility
Committed
Take responsibility
Strong desire to succeed
Set goals
Seize opportunities
Independent
Motivated
Optimistic
Energetic
Creative
Adaptable

Question 62

Entrepreneur vs intrepreneur?

Answer 62

Intrapreneur:
- often found in a large business working as an employee
-creates new ideas and converts them into products or services within the framework of the business
- becoming very valuable for the business since competition between businesses becomes progressively global

Entrepreneur:
- a person who sets up a business or businesses, taking on financial risks in the hope of profit
- often forced to start their own business due to unemployment or other circumstances
- can be a form of temporary income or a life long choice