Managing a Business Flashcards
1
Q
Define management
A
Getting things done through other people
2
Q
What are the four elements of management?
A
CLOP
- Controlling
- Leading
- Organising
- Planning
3
Q
Define the organising element of management
A
- Allocating RESOURCES to meet plans
2. Allocating PROCESSES to meet plans
4
Q
Define the controlling element of management
A
Corrective action if direction of business differs to expectations
5
Q
Define the leading element of management
A
- How managers exercise authority
2. Influencing people so they contribute to organisational objectives
6
Q
Define the planning element of management
A
- Looking forwards to set the direction of the business
2. Setting strategies
7
Q
What are management’s roles? (3)
A
- Informational
- Interpersonal
- Decisional
8
Q
What is management’s key role?
A
Decisional
9
Q
Define management’s informational role
A
- COLLECT information
2. DISSEMINATE information
10
Q
Define management’s interpersonal role
A
- Acting as an effective LEADER
2. Acting as an effective COORDINATOR
11
Q
Define management’s decisional role
A
Making effective decisions about:
- Resource allocation
- Handling disturbances
- Negotiating
- Problem solving
- Entrepreneurship
12
Q
Define power
A
The ability to get things done
13
Q
What are the forms of power? (6)
A
- Reward
- Coercive
- Legitimate
- Negative
- Expert
- Referent
14
Q
Define reward power
A
One person’s ability to reward another person for carrying out orders or meeting other requirements
15
Q
Define coercive power
A
- One person’s ability to punish another for not meeting requirements
- Negative side of reward power
16
Q
Define expert power
A
Based on the perception/belief that a person has some relevant expertise or special knowledge that others do not
17
Q
Define referent power
A
One person’s desire to identify with or imitate another
18
Q
Define legitimate power
A
Power derived from being in a position of authority within the organization
19
Q
Define negative power
A
The ability to disrupt operations
20
Q
Define authority
A
- The right to do something or the right to request and
expect another person to do something - Allows individuals to make decisions
- Allows individuals to assign tasks
21
Q
Define responsibility
A
The obligation a person has to fulfil a task assigned to them
22
Q
Define accountability
A
A person’s liability to be called to account for the fulfilment of a task
23
Q
Can authority be delegated to subordinates?
A
Yes
24
Q
Can responsibility be delegated to subordinates?
A
Yes
25
Can accountability be delegated to subordinates?
No
26
Define delegation
Giving a subordinate responsibility and authority to carry out a given task, while the manager retains overall accountability
27
What are the benefits of delegation? (8)
QR-PACIFISM
1. Quicker decisions
2. Relieves senior staff members of less important activities
3. Performance Appraisal
4. Career development
5. Interesting for the subordinate
6. Flexibility
7. Ideas and Skills are brought together
8. Motivation
28
What are the risks of delegation? (7)
1. Over-supervision can waste time and is de-motivating
2. Under-supervision → inferior product
3. Passing the buck
4. Manager only delegates boring work
5. Manager delegates impossible tasks
6. Manager refuses to delegate enough
7. Inadequate training
29
What are the types of manager? (4)
1. Line
2. Staff
3. Functional
4. Project
30
Define line manager
Direct authority over subordinates
31
Define staff manager
Authority in advisory capacity
32
Define functional manager
1. Hybrid of line and staff managers
| 2. Has authority in certain circumstances to direct, design or control activities or procedures in another department
33
Define project manager
Temporary team manager
34
What is the management hierarchy?
1. Top management
2. Middle management
3. First-line management
4. Direct operation staff
35
Define top management
Manage the whole business
36
Define middle management
Manage other managers of the business
37
Define first-line management
Manage operational parts of the business
38
Define direct operation staff
1. Supervisors and operational staff
| 2. Delivering the product/service
39
Define culture
The common assumptions, values and beliefs that people share that become ‘the way we do things around here’
40
Define a flexible culture
A business that allows change and initiative
41
Define a controlled culture
A business that seeks stability and order
42
Define an inward-looking culture
A business that focuses on internal operations
43
Define an outward-looking culture
A business that adapts to external change and opportunities
44
What are the features of internal process culture?
1. Controlled
2. Inward-looking
3. Rigid and stable organisations
4. Driven by procedures
45
What are the features of rational goal culture?
1. Controlled
2. Outward-looking
3. Procedurally-driven
4. Adapts to external conditions
46
What are the features of opens system culture?
1. Flexible
2. Outward-looking
3. Adapts to constantly changing external environment
47
What are the features of human relations culture?
1. Flexible
| 2. Inward-looking
48
Define organisational behaviour
1. The understanding of individual behaviour, group behaviour, and patterns of structure in order to improve organizational efficiency and performance
2. Understanding why people do what they do and the effect it has on the business and other people.
49
What are the overt parts of the business? (5)
1. Rules/regulations
2. Products
3. Physical assets
4. Financial
5. Resources
50
What are the covert parts of the business? (4)
1. Attitudes
2. Personalities
3. Conflict
4. Informal communication
51
What are the key functions of a business? (6)
1. Finance
2. Human resource management
3. Marketing
4. Procurement
5. Research and development
6. Operations
52
Define human resource management
The creation, development and maintenance of an effective workforce, matching the requirements of the organisation and responding to the environment
53
What are the functions of human resource management? (11)
1. Communication/counselling
2. Discipline, demotion and dismissal
3. Job analysis and design
4. Meeting legal and ethical standards
5. Performance appraisal
6. Personnel planning and control
7. Personnel records
8. Recruitment and selection
9. Remuneration and compensation schemes
10. Training and development
11. Workforce diversity issues
54
What are the hard approaches to human resource management? (7)
1. Emphasis on resource element of human resource management
2. Goal is to meet organisational objectives
3. Dictatorial/controlling business culture
4. Management style is top down and imposed
5. Training is focused on meeting the current needs of the organisation
6. Centralised structure
7. Short-term perspective
55
What are the soft approaches to human resource management?
1. Emphasis on human element of human resource management
2. Goal is to create human assets
3. Flexibility culture
4. Management style is participative
5. Training is focused on personal and career development
6. Devolved, delegation, autonomy
7. Long-term perspective
56
Define the Harvard 4 Cs model?
A model that can be used to evaluate the effectiveness of human resource management
57
What are the 4Cs in the Harvard 4 Cs model?
1. Commitment
2. Competence
3. Congruence
4. Cost-effectiveness
58
Define commitment according to the Harvard 4 Cs model
Assess employees’ motivation, loyalty and job satisfaction
59
Define competence according to the Harvard 4 Cs model
Look at skills, abilities and potential
60
Define congruence according to the Harvard 4 Cs model
Do management and employees share the same vision and goals?
61
Define cost-effectiveness according to the Harvard 4 Cs model
Operational efficiency and productivity
62
What is the hypothesis behind Taylor's scientific management approach?
That people are similar and can be treated in a standardised fashion
63
What does Taylor's scientific management approach consist of?
TITES
1. Assumptions that everyone can be TREATED in the same way
2. Assumptions that people respond as INDIVIDUALS
3. Workers do as they are TOLD
4. Assumptions that people are mainly concerned with ECONOMIC GAIN
5. SCIENTIFIC selection and development of staff
64
What are the two theories developed by Douglas McGregor?
1. Theory X
| 2. Theory Y
65
Define McGregor's Theory X
1. People dislike work and responsibility and will try to avoid both
2. They therefore need to be coerced.
3. Management approach is dictatorial
66
Define McGregor's Theory Y
1. Physical and mental effort at work is as natural as play or rest
2. Such people have real potential
3. The role of management is to help them to realise it
67
What does Abraham Maslow's Hierarchy of Needs theory suggest?
1. That people are motivated by a desire to satisfy unfulfilled needs
2. Once needs are satisfied, they no longer motivate (unless threatened)
3. The individual concerned then moves up to the next level of needs
68
What is the hierarchy in Maslow's Hierarchy of Needs?
1. Self-fulfilment needs
2. Ego needs
3. Social needs
4. Safety needs
5. Basic needs
69
What are Frederick Herzberg's two main arguments?
1. That employee satisfaction came from hygiene factors, related to the context of a job, that are within the control of the company as a whole
2. That motivation came from motivating factors, related to the content of a job, that are within the control of a manager
70
What are hygiene factors according to Frederick Herzberg?
1. Company policies
2. Working conditions
3. Relationship with other staff
4. Supervision
5. Salary
71
What are motivating factors according to Frederick Herzberg?
1. Sense of achievement
2. Recognition
3. Responsibility
4. Challenging work
5. The job itself
72
What are the characteristics of a group?
1. A common sense of identity
2. A common aim or purpose
3. Behavioural norms
4. Communication between members
5. A leader
73
Why are groups important?
1. To bring together different skills
2. To problem solve
3. To plan/organise
4. To coordinate between functions and departments
74
What are Bruce Tuckman's stages of development?
1. Forming
2. Storming
3. Norming
4. Performing
75
Define performing according to Tuckman's stages of development
Operating to full potential
76
Define norming according to Tuckman's stages of development
Group norms emerge
77
Define storming according to Tuckman's stages of development
Members compete for group roles
78
Define forming according to Tuckman's stages of development
Initially a collection of individuals
79
What are the group roles defined by Meredith Belbin?
1. The leader
2. The shaper
3. The plant
4. The evaluator
5. The resource-investigator
6. The company worker
7. The team worker
8. The finisher
80
Define the leader according to Belbin
Coordinates the group
81
Define the shaper according to Belbin
Promotes activity
82
Define the plant according to Belbin
Thoughtful and thought-provoking
83
Define the evaluator according to Belbin
Criticises ideas
84
Define the resource-investigator according to Belbin
Adds to others' ideas
85
Define the company worker according to Belbin
Administrator and scheduler
86
Define the team worker according to Belbin
Defuses potential conflicts
87
Define the finisher according to Belbin
Progress chaser
88
How should a group be structured according to Belbin?
1. One leader, shaper, and finisher
2. Equal numbers of plants and evaluators
3. Equal numbers of company workers and team workers
89
What are the four leadership styles identified by Rensis Likert?
1. Exploitative authoritative
2. Benevolent authoritative
3. Consultative
4. Participative
90
Define an exploitative authoritative leadership style
1. Decisions imposed
2. Motivated by threats
3. Centralised decision making
4. Rare communication between boss and subordinates
5. Act as individuals
91
Define a participative leadership style
1. Complete trust and discussion
2. Motivated by rewards
3. Goals agreed
4. High degree of delegation
5. Frequent communication
6. Act as a team
92
What does Likert identify as the characteristics of effective managers?
1. Employee-centred
2. Set high standards but are flexible in terms of methods
3. Natural delegators with high levels of trust
4. Encourage participative management
93
Define marketing
The management process which identifies, anticipates, and supplies customer requirements efficiently and profitably
94
What is a marketing oriented business?
1. A business that focuses on the needs of potential customers as the basis for its operations
2. Its success is dependent on developing and marketing products that satisfy those needs
95
What is a sales oriented business?
1. A business that focuses on selling more of the products or services already available
2. There is no attempt to identify customer needs nor create products or services that will satisfy them
96
What is a production oriented business?
1. A business that focuses on making as many units as possible
2. Customer needs are secondary to increasing output
97
What is a product oriented business?
A business that focuses on creating a highly sophisticated and expensive product beyond the needs of customers
98
Define market segmentation
The division of the market into homogeneous groups of potential customers who may be treated similarly for marketing purposes
99
Define consumer markets
Products and services bought for the use of individuals and their families
100
What are the features of fast-moving consumer goods?
1. Low value
| 2. High volume
101
What are the features of consumer durables?
1. High value
| 2. Low volume
102
Define industrial markets
Products and services bought for the use of companies
103
What are the features of industrial marketing?
1. Small number of large customers
2. Large purchase size
3. Expert buyers who make rational decisions based on technical and detailed specifications
4. High bargaining power
5. Complex negotiation
104
Define marketing mix
The set of controllable marketing varieties that a firm blends to produce the response it wants in the target market
105
What industry can the 4 Ps model be applied to?
Product industry
106
What industry can the 7 Ps model be applied to?
Service industry
107
What are the 4 Ps?
1. Product
2. Promotion
3. Place
4. Price
108
What are the 7 Ps?
1. Product
2. Promotion
3. Place
4. Price
5. People
6. Process
7. Physical evidence
109
What are the main components of the product?
1. Basic product
2. Actual product
3. Augmented product
110
Define basic product
The core benefits the product will provide
111
Define actual product
The product's features such as branding, packaging, labelling
112
Define augmented product
Goods or services that provide additional value
113
What are the key factors that need to be considered when selecting a pricing strategy?
1. Costs
2. Customers
3. Competition
4. Corporate objectives
114
What does the place element of the marketing mix consider?
1. Length
2. Breadth
3. Complexity
of distribution channels
115
What are the two types of distribution channels?
1. Direct selling
| 2. Indirect selling
116
What are the key factors to consider when deciding between direct and indirect selling distribution channels?
1. If the business has the necessary resources and competencies themselves
2. What expertise do middlemen provide and what cost?
117
Define promotion
Promotion aims to create awareness and interest for products and services and to persuade consumers to purchase
118
What are the stages of promotion?
1. Awareness
2. Interest
3. Desire
4. Action
119
Define push promotion
Ensuring that products or services are available for purchase where and when the ultimate customer requires them
120
Define pull promotion
Marketing variables set to persuade ultimate customers to purchase (e.g. advert on TV in or trade journal)
121
What are the main forms of promotion
1. Advertising
2. Sales promotion
3. Public relations
4. Personal selling
122
Define operations
The transformational process of changing inputs into outputs in order to add value
123
Define operations management
Involves the design, creation, implementation, and control of operations processes
124
What are the 4 Vs?
1. Volume
2. Variety
3. Variation in demand
4. Visibility
125
Define pure research
Intended to gain new scientific or technical understanding although there is no commercial viewpoint in mind
126
Define applied research
Research aimed at achieving an obvious commercial or practical viewpoint
127
Define development
Takes existing scientific or technical knowledge and uses it to produce new products or systems intended for commercial production
128
Define procurement
The acquisition of goods and services
129
What are the four main factors to consider for procurement?
1. Quantity
2. Quality
3. Price
4. Lead times
130
What are the considerations that should be made when managing the IT function?
1. Plan inhouse IT activities
2. Consider outsourcing or external help
3. Be aware of IT possibilities
4. Innovation and investment in service development
131
What is the role of IT service delivery?
1. Data extraction and reports
2. Capacity monitoring
3. Customer billing
4. Budgeting
132
What is the role of IT service support?
1. IT systems maintenance
2. IT security controls
3. Prevention of IT problems
4. Investigation of IT problems
