March Test Flashcards
What is organisational culture?
- the way in which things are done
- dress code
- manner in which employees address each other
- it is also influenced by the culture of the employees
What are Organisational resources?
-refer to resources that a business enterprise uses to make it operate efficiently
Give examples of Organisational resources?
- Capital resources
- human resources
- natural resources
- entrepreneurial resources
What is another name given for Organisational resources?
Four factors of production
What is a Capital Resource?
- Money that is invested ina business so that the business can aquire capital goods
- land, buldings and equipment
What is a Human Resource?
The work people do to produce products and services, called labour
What is a Natural Resource?
- All natural assets used to produce products and services
- water, coal and gold
What is Entrepreneurial resources?
People that combine the other 3 resources (Capital, Human and Natural) in such a way that the business becomes operational and profitable
Name the different types of Remuneration for each resource:
- Capital - Interest
- Human - Salaries and wages
- Natural - Rent
- Entrepreneurial - Profit
How are managers and leaders different?
Manager
- specific position
- can only become a manager if there is a vacant position in company
- gives instructions to subordinates and checks that tasks are done
- has authority to tell subordinates what to do
Leader
- does not necessarily hold a specific position
- emerges when there is a need, leadership is a characteristic
- normally part of a team and helps perform tasks
- ususally inspires team members to perform
What is organisational structure?
- the way in which employees in a business are organised
- explains the responsibility and displays the authority of each manager
- traditional business structure was in a form of a pyramid, indicating the different levels of power in a business
- current trend is to form wider structures where more power is given to subordinates
What are the 8 functions and activities of the business?
- (triple P; F; M; A; G; H)
- -Purchasing
- -Production
- -Public relations
- -Financial
- -General management
- -Marketing
- -Human resources
- -Administration
What is the role of General Management?
Responsible to make sure that all business functions operate efficiently
What are the different levels of management?
- Top level management
- Middle level management
- Lower level management
Explain the roles and responsibilities of Top Level Management?
- look at the business and its activities as a whole
- eg: Chief Executive Officer (CEO)
Roles and Responsibilites:
- Plans for the future of the enterprise
- Monitors the business’s relationship with external environment
- Manages change in the business environment
- Makes strategic decisions
Explain the roles and responsibilities of Middlle Level Management?
- have specialised knowledge of the activities that must be perfomred in the department under their management
eg: heads of different departments
Roles and Responsibilites:
- serves as the link between top and lower management
- implements plans made by top level management, by making tactical decisions
- manages each department
- schieves goals and objectives set for each department
- aquires resources needed in a departement
Explain a Line Organisational Structure
- Oldest org. structure
- Most suitable for small business enterprises
- Allows fast decision making (because managers hold the authority to make decisions without having to consult with other employees)
- Authority flows from the most senior person in the business in a downward line to employees on the lowest level of an enterprise
Explain a Functional Organisational Structure
- Similar to line org. structure, but provides for larger businesses
- same type of work is grouped together in functional departements
- each department is managed by a manager who is an expert in his/her field
- each department performs its activity for the whole business (i.e. marketing department handles marketing for the whole business)
Explain a Line and Staff Organisational Structure
- The line organisational structure forms the basis of the line and staff org. structure
- Experts act as advisors for managers
- Managers are known as line managers, while the experts or advisors are known as staff officers
- Advisors don’t have any authority over employees (which menas that they cannot give instructsions to emplyoyees
- Allows for quick decision making and a quick flow of authority
- Suitable for large businesses
Explain a Project or Matrix Organisational Structure
- Team members from different departments come together to complete a project
- Project teams are headed by project managers
- Once the project is completed, teams dissolve and return to their departments
- This is temporary structure
- While team members are working on a project, orders are taken from the project manager, as well as the manager from the departments that employees are from
- Conflict of loyalty can arise between project managers and functional managers
Name the responsibilities of management and the alignment between management levels
Top Management
- Plans for business in its entirety sets the direction of a business
- Long term planning, making strategic decisions, managing change and risk
Middle Management
- Serves as a link between top and lower level management; carries out decisions made by top level management
- Medium term planning; making tactical decisions; managing each department
Lower Management
- Carries out tactical decisions made by middle level management
- Short term planning; making operational decisions; setting daily performance targets
List the role and importance (main responsibilities) of the business functions
- Purchasing function
Responsible for finding the most suitable suppliers and purchasing raw materials/stock at the right time, the right price, of the right quality and in the right quantities
- Production function
Responsible for converting raw materials into final products
- Public relations function
Responsible for creating a favourable image of the business enterprise
- General Management function
Responsible for the overall management of the business enterprise through performing the four basic management activities: planning, organising, leading and control
- Marketing function
Responsible for recruiting, selecting and appointing new employees
- Human resources function
Responsible for recruiting, selecting and appointing new employees
- Administration function
Responsible for collecting, storing and distributing business information so that the information can be used for analysing trends and making decisions
- Financial function
Responsible for financing all business activities by ensuring that money is available to run the business efficiently through careful financial planning
How will resources be applied in a SMALL business?
(compare to large business)
Human Resources
- Very few employees
- Not unusual for a business owner to do everything
- Tasks, e.g. cleaning or recruitment may be outsourced
Physical Resources
- Because business operations in a micro-enterprise are usually performed on a small scale, few physical resources (e.g. office building) are needed
Financial resources
- Difficult for small enterprises to obtain financing
IT resources
- Needs few information resources, eg: computer, printer and telephone
- Does not need complicated telephone systems or network
How will resources be applied in a LARGE business?
(compare to large business)
Human Resources
- Many employees
- Most activities can be done by in-house employees
Physical Resources
- Business operations are performed on a large scale
- Depends greatly on physical resources such as offive buildings and other forms of infrastructure
Financial resources
- Larger businesses have greater access to financing via shareholders
IT resources
- Needs computers and telephones for most staff members
- Needs to have a network where information can be stored on a server
