mgt activities Flashcards
benefits of functional organizational structure
•clear chain of command
•spécialisation
•better decision making
clear chain of command
(benefits of functional organizational structure)
•staff have clear lines of authority
•know who reports to who
•person in charge of each department, improving coordination, as employed know what’s expected of them and when
spécialisation
(benefits of functional organizational structure)
•employees from similar disciplines (eg. engineers) working together brings expertise together
•can learn from each other & become highly skilled
•benefits productivity & aids staff development
better decision making
(benefits of functional organizational structure)
•staff can consult with experienced colleagues. varying lvls of skills in each dept
•allows staff to make most informed decision leading to better results
problems of span of control too wide
•errors made as lack of supervision
•poor morale
•mgt burnout
•poor reporting structure
errors made because of lack of supervision
(problems of span of control too wide)
•mistakes may occur as managers can’t adequately supervise employees
•employees may make decisions they’re not trained to make
•complex and detailed work may not be completed correctly
poor morale
(problems of span of control too wide)
•less personal contact with employees
•may lack guidance & become frustrated
mgr burnout
(problems of span of control too wide)
•mgr may become overwhelmed due to work overload resulting in our decision making/may make snap decisions/ mgt have less time for planning
poor reporting structures
(problems of span of control too wide)
•poor communication could result in problems not being reported on time resulting in serious difficulties
implications for business changing from functional to matrix
•training/staff development required
•duplication of duties
•greater complexity in chain of command
•staff conflict/power struggles
training/staff development required
(changing from functional to matrix)
•training costs involved for mgr and staff which takes time to complete
•productivity may decline in short term
•staff development may result as employees have greater knowledge & learn how business is run
•multi skilled staff
duplication of duties
(changing from functional to matrix)
•several teams may have marketing mgr, production mgr
•essential that these mgrs communicate to avoid conflicting approaches to projects
greater complexity in chain of command
(changing from functional to matrix)
•staff have 2 mgrs to report to (generally dept mgr and project mgr)
•can lead to divided listeners & there could be a conflict of interest between both
staff conflict/power struggles
(changing from functional to matrix)
•staff may resist working outside their own depts
•staff may dislike working outside their comfort zones
•may be difficult for project manager to manage staff from different depts
contingency plan
•a back up plan to take account of a possible future event orunforeseen event to prevent the closure of a business or disruption to supply
strategic plan
•long term planning did major objectives of business usually 5-10yrs
•written by snr mgt
•to ensure long term profitability & ultimate existence of business
•break mission statement into long term objectives
•e.g ryan air enter transatlantic flights
tactical plan
•strategic plan broken into short term plans usually 1-2yrs
•written by middle mgt
•these plans achieve operating which make the overall strategic plans possible
•eg. ryan air increasing the number of flights to particular places during busy periods
manpower planning
•plan for the human resources of business
•ensures enough staff are employed with the right skills to achieve goals of business
how manage bad debts
•credit worthiness
•credit limits
•discounts
•penalty
credit worthiness
(manage bad debts)
•check credit worthiness in advance
•eg. ask for bank references, trade references
credit limits
(manage bad debts)
•set appropriate credit limits & periods
•draw up clear terms & conditions controlling the amt of credit & ensuring payments are made on time
discounts
(manage bad debts)
•offer incentives like a cash discount for early or prompt payment
penalty
(manage bad debts)
•policy for late/partial payments
•agree on penalties for late payments and implement them
•eg. charging interest on overdue accounts
benefits of matrix
•innovation- ppl from various depts come together, bring new ideas/ways of thinking
•employee development- employees can learn new skills of each other, share skill & expertise, motivation
•better coordination- mixing of staff from different depts, better understanding if importance/role of each
matrix disadvantages
•two bosses- employees report to two managers, could lead to confusion & clash of loyalty between own dept and project team
•increased cost- training costs for mgr, extra secretarial and admin costs
•slower decisions- training takes time, consult & listen to team members
planning
•the setting down of specific goals and objectives and the putting in place of strategies that allows a business to achieve business goals and objectives
strengths
(SWOT)
•internal attributes and resources that support a successful outcome
•business it good at it and can be developed into a comp adv
•eg skilled workforce
weaknesses
(SWOT)
•internal sources of a business that’s underdeveloped & could damage the success of the business
•eg poor credit control
opportunity
(SWOT)
•external factors that business could use to its advantage to benefit business
•eg falling exchange rate
threats
(SWOT)
•external factors that could jeopardize the business and have neg impact
•eg shortage of raw mats
steps involved in planning
•SWOT analysis
•set objectives- use results of SWOT to set objectives. eg Aer Lingus- swot, price too high, objective to become low cost airline
•devise strategies- plans of action that set out how to achieve objectives
•implement plan & review regularly
basic strategies in planning
•low cost strategy
•differentiation strategy
•niche strategy
low cost strategy
•succeed by keeping costs low as possible so products are cheap
•eg Lidl
differentiation strategy
•different product than competitors, customers prepared to post more (increasing sales & profits)
•using brand name eg. Apple
niche strategy
•tailoring product to suit specific needs of small group of customers
•increases sales & profits
advs of planning
•secures capital
•motivated employees & mgrs
•reduces risk & uncertainty
•guide to success
•strengthens business
•benchmarking
secures capital
(advs of planning)
•needs to prove can repay, business plan sets out market size, how going to target them, projected sales & profits
•convinced investors to invest
motivates employees & mgrs
(advs of planning)
•strategic and tactical- set objectives to be achieved within given time, everyone has target, achievement of target brings satisfaction
reduces risk & uncertainty
(advs of planning)
•anticipating problems & taking straps to eradicate
•putting contingency plans in place thus avoiding business failure
guide to success
•focus on future
•strategies to achieve success, map
strengthens business
(advs of planning)
•SWOT- can eliminate weaknesses and become stronger
benchmarking
(advs of planning)
•monitoring progress, taking corrective action
organizing
•arranging all resources (human, financial, physical) in most suitable form to achieve business goals
advs of organizing
•solve problems quickly
•improve efficiency
•copen with change
•minimize waste
solves problems quickly
(advs of organizing)
•clear structure employees & customers know who to go to to solve issues
improved efficiency
(advs of organizing)
•functional structure, experts, fast
cope with change
(advs of organizing)
•matrix and functional- adapt for project & still run org as normal, adapt in emergencies
minimises waste
(advs of organizing)
•proper assignment of jobs avoids overlap, makes best use of resources
•avoids duplication if done properly
line organisation
•directly responsible for making & selling business products eg marketing, etc
staff organisation
•those who provide expert advice to line depts eg IT dept, legal dept
controlling & steps
•staying on target, taking corrective action
1.set goals- 10% increase in sales in next yr
2.measure performance regularly- 1 month in sales fallen
3.measure deviations and investigate- look at fall & why sales fell
4.take corrective action- more advertising & price reduction
