Management Styles

Question 1

Define ‘Business’;

Answer 1

A business is an organisation, enterprise or business engaged in the production and trade of ‘goods and services’, usually for profit.

Question 2

Define ‘goods’;

Answer 2

A tangible object that can be held

Question 3

Define ‘services’;

Answer 3

An intangible object that is own but can’t necessarily be held

Question 4

What are the 4 key business functions?

Answer 4

• Operations
• Marketing
• Finance
• Human Resources

Question 5

Which arrangement of the following is correct?

a) PLOC
b) POLC
c) POCL
d) LPOC

Answer 5

b) POLC

Question 6

What is planning?

Answer 6

Planning is the process of setting objectives and finding ways to achieve those objectives

Question 7

That levels of management take part in planning?

Answer 7

Planning is a commonplace activity undertaken by all levels of management

Question 8

What are the 3 levels of planning (from highest to lowest)?

Answer 8

• Strategic Planning
• Tactical Planning
• Operational Planning

Question 9

What is strategic planning?

Answer 9

• Long term planning, spanning 3-5 years.
• Is conducted by senior managers
• Big picture planning
• E.g. Expanding overseas

Question 10

What is tactical planning?

Answer 10

• Medium term planning, spanning 1-2 years.
• Conducted by middle managers
• Often departmental objectives
• E.g. Increase sales

Question 11

What is operational planning?

Answer 11

• Short term, day-to-day planning
• Conducted by lower managers
• E.g. Weekly roster

Question 12

What is organising?

Answer 12

Organising is the process of defining the relationship between staff and tasks, so that al resources of an organisation are working towards its objectives.

Question 13

What is leading?

Answer 13

Leading is the process of influencing and monitoring employees to achieve the organisations goals and objectives

Question 14

What is controlling?

Answer 14

Controlling is the process of establishing ways to compare actual performance with planned performance.

Question 15

What does controlling include?

Answer 15

• establishing benchmarks
• determining methods of measuring performance
• measuring actual performance
• comparing results agains benchmark
• taking corrective action when necessary

Question 16

Overall, what is a top mangers role?

Answer 16

• set objectives
• plan tasks; make decisions
• scan and access the environment

Question 17

Overall, what is a middle mangers role?

Answer 17

• allocate resources
• report to top managers
• oversea lower-level management
• develope and implement activities

Question 18

Overall, what is a low-level mangers role?

Answer 18

• supervise employees
• involve in day-to-day activities
• report to middle managers
• coordinate activities

Question 19

What does the abbreviation POLC stand for?

Answer 19

Planning
Organising
Leading
Controlling

Question 20

Advantages of autocratic managers?

Answer 20

• clear direction and procedures
• employees roles and expectations are clearly defined
• control is centralised and production is maximised

Question 21

What are the disadvantages of an autocratic manager?

Answer 21

• no employee input allowed

- can result is high absenteeism

Question 22

Advantages of persuasive manager?

Answer 22

• Gain trust and support through persuasion

- instruction and explanation remain clear and constant

Question 23

What are the disadvantages of a persuasive manager?

Answer 23

• attitudes and trust remain negative, employees fail to give full support to managers
• communication poor and limited
• frustration of employees as unable to contribute decision making

Question 24

What are the advantages of a consultative manager?

Answer 24

• employees input allowed for a greater variety of ideas, resulting in better decisions
• employees begin to have some ownership of the organisation, so take more interest in it, resulting in improved productivity, motivation and commitment
• decisions are discussed prior to being made, resulting in tasks being completed more efficiently and with better results

Question 25

What are the disadvantages of a consultative manager?

Answer 25

- The time taken to consult with each employee before making a decision - some issues are not suitable for a widespread consultation - not every employees suggestion can be adopted, which may cause conflict or resentment

Question 26

What are the advantages of a participative manager?

Answer 26

- employer/ employee relations are positive - motivation and job satisfaction are optimal because employees feel they have played a part in meeting the organisational objectives - employees have a greater opportunity to acquire more skills - there is a high level of trust between employees and managers

Question 27

What are the disadvantages of a participative manager?

Answer 27

- The role and control of manager maybe weakened - not all employees want to contribute - making decisions can be very time-consuming when differing and conflict views have to be considered

Question 28

What are the advantages of a laissez-faire manager?

Answer 28

- employees feel a sense of ownership which can promote outstanding results - there is continued encouragement for creativity, which is conductive to a dynamic work environment - in a flat structure, communication is wide open and ideas are both discussed and shared

Question 29

What are the disadvantages of a laissez-faire manager?

Answer 29

- there is a complete loss of control by management, and may result in the misuse of the organisations resources - can breed personal conflict where employees may only wish to implement their own ideas instead of working as a team to achieve a common goal - The focus on meeting organisational objectives can be easily eroded. As a result, management may find themselves with a failed organisation or nothing to manage

Question 30

What is corporate culture?

Answer 30

Corporate culture includes the values and ethics that are essential to the businesses internal environment, and must be shared by all members of the organisation.

Question 31

Define what the internal environment of a business is?

Answer 31

The internal environment of a business is those factors that the organisation has direct control over.

Question 32

How can the corporate culture be created?

Answer 32

- management providing example - management recognising and rewarding appropriate action - management communicating aspects of the desired culture - recruitment and selection practices in line with the desired cultures - training in line with the desired culture

Question 33

What does the internal environment of a business include?

Answer 33

- corporate culture and values - staff - structure - policies - communication - operations - technology

Question 34

What is included within the external environments of a business?

Answer 34

Political/ Legal Economic Social/ Cultural Technological

Question 35

What are stakeholders?

Answer 35

That take interest in the formants and activities of the business because it has an impact on them. Stakeholders can either be internal or external of the business.

Question 36

List 8 different kinds of stakeholders;

Answer 36

- Government - environment - shareholders - suppliers - consumers - management - employees - local community

Question 37

Identify which of the stakeholders internal or external to a business; - owners - Government - managers - Customers - shareholders - suppliers - Community - staff and employees

Answer 37

- owners (l) - Government (E) - managers (I) - Customers (E) - shareholders (E) - suppliers (E) - Community (I & E) - staff and employees (I)

Question 38

What are internal stakeholders?

Answer 38

Internal stakeholders are entities within a business that are directly impacted by the performance of the business.

Question 39

What are external stakeholders?

Answer 39

External stakeholders are entities not with in a business itself but do you care about or are affected by its performance

Question 40

What is organisational effectiveness?

Answer 40

Organisational effectiveness is the degree to which an organisation satisfies the demands of its stakeholders