Management & Structure of Business Flashcards
What do you attribute to the success of Ferrari?
They have a strong vision and mission, strong salesAfter their first IPO, there’s increasing in Ferarri’s shares and signaling a strong year ahead. This showed Ferrari’s ability to effectively navigate complex management structures, which are attributed to Ferrari’s international presence and success.
What is the definition of management?
Planning and coordinating the activities and processes of a business in order to achieve organisational goals & objectives
What is the definition of leadership? Mention 5 types of primary power!
Motivating members of an organisation towards accomplishing the defined organisational goals and objectives.
- Legitimate power comes from a person’s official position in the business
- Reward power comes from a person’s control over rewards and incentives
- Coercive power stems from someone’s ability to threaten negative outcomes
- Expert power comes from an individual’s extensive knowledge in one or more areas
- Referent power is derived from an individual’s charisma and the respect and admiration the individual inspires
Usually, leaders try to use a combination of these sources of power to push individuals toward goal achievement.
What is the four key functional areas of the organisation?
- Planning
- Organizing
- Leading
- Controlling
Describe the managerial process
- anticipating potential obstacle or opportunities & producing plans to deal with them (planning)
- coordinating and allocating scarce resources needed to execute plans (organizing)
- guiding team members through change processes (leading)
- reviewing results and making any necessary changes (controlling)
What is the definition of Planning? Describe the types of planning!
Planning is choosing what needs to be carried out in order to achieve business goals. Planning starts with predicting opportunities and possible risks the firm could experience. They work on preventing future obstacles, while understanding possible competitive advantages.
Type pf planning:
- Strategical plans involve formulating long-term goals and objectives for the company
- Tactical plans are short, and help to implement the strategic plans
- Operational plans encompass the creation of specified standards, methods, policies, and procedures used in specific functional business segments
- Contingency plans find alternative courses of action for unexpected events and crises
What is the definitions of Organizing? Mention 3 activities of it!
Organizing is the act of distributing company resources and coordinating activities to carry out plans
- division of labor (dividing up tasks)
- departmentalization (grouping jobs and employees)
- delegation (assigning roles and responsibilities)
Explain the 3 management hierarchy structure and give examples!
- Executive Mgt: develop plans that tackle long-range challenges, such as where to compete, how to capture market share, and what should be done with the money.
Corporate objectives, environmental scanning, planning, and execution tactics.
ex: CEO, president and vice president - Middle Mgt: design and implement tactical plans in specific areas of of the company in order to achieve their strategic plans and overall organizational goals.
Executive management reporting, lead front-line management, operational development, and resource allocation
ex: division heads, department leaders, and regional managers - Supervisory Mgt (Front-line Mgt): design and execute daily operational planning activities of the business
Middle Mgt reporting, employee supervision, and activity coordination
Describe the style of leadership!
- Autocratic
very direct approach, allowing for little input or feedback from others. They make decisions and solve problems by themselves and expect their employees to execute their solutions according to specific and detailed instructions.
ex: militaries - Participative
share decison-making power with other members of the group and encourage collaboration. - Free rein
these leaders turn over all responsibility and authority to the group. After being presented with a task, members of the group are free to carry out it how they see fit.
Describe the 5 Steps in the basic control process!
- Standars of performance
- Actual performance measurement
- Performance vs goal achievement
- Deviation analysis
- Corrective action
What is the goal of decision making?
it is necessary in order to effectively navigate unforeseen challenges by developing plans to move forward and become more and more effective team.
Describe the steps in the Decision-Making Process!
- Decision-making framework
finding the root cause of the issue - Team structure
it is important to promote talent from within, but you should also hire newcomers from outside the organization who have a different viewpoint and perspective about the issues. - Timeframe considerations
prioritization of activities is important,. complex issues with significant financial implications need a longer timeframe in which to make decisions - The approach
determine the rules in the first stages along with assignment of roles and responsibilities to each of the team members - Encourage ideas, discussions, and spirited debates
being creative challenges us to consider innovative ideas and perspectives - Dynamic group navigation
have the right number of employees so that they can effectively and efficiently navigate workflows - Ensuring the puzzle pieces are in place and ready for the implementation
- Agreeing on a way forwards
in order to reach closure, a sufficient solution should be found that the group agrees to
What is departmentalization (traditional structure) ? Describe 5 types of departmentalization!
Departmentalization is jobs that are grouped together according to tasks and activities that need to be performed.
- Functional : based on the foundation of duties performed within a business unit
ex: HR, finance, R&D, production - Product: based on the premise that goods and services are produced by one department (department A) and sold by another (department B)
- Process: the production process needed for each organizational unit
- Customer: based on consumer-target markets (retail, wholesale, franchise etc.)
- Geographic: employees are assigned to departments or business units along geographic locations.
What is line and staff (traditional structure)?
This organization is created with clear and direct boundaries in terms of authority and flow of communication, which goes from executive management down to front line employees.
ex:finance, production , marketing in a small business or entrepreneurial firms
Mention and describe the types of contemporary structures
-The Matrix Structure
organizations that use a matrix structure bring team members together from a different functional departments in the firm (sales, digital, finance and operations) to work on a potential project or pilot program. Employees have 2 supervisors in this model (the project lead and their line manager from their business function).
Advabtages: - Collaboration
- Resource efficiency
- Agility
- Prioritization
- Increased performance outcomes
- Differential investment opportunities
Disadvantages: - Alignment
- Employee confusion
- Lack of unity
- Committee Structure
power, authority & responsibility are handled by a group of leaders. It can simplify the coordination of activities & increase speed
Advantage: diversity of thought
Disadvantage: alignment
