nature of management Flashcards
what are features of effective management?
planning, organising, leading, controlling
what is planning in effective management
the preparation of a predetermined course of action for a business. it refers to the process of setting objectives and deciding on the methods to achieve them
what is organising in effective management
the process of structuring the organisation to translate plans and goals into action
what is leading in effective management
process of influencing or MOTIVATING people to work towards the achievement of the organisation’s objectives
what is controlling in effective management
the process of evaluating performance and taking corrective action to ensure that the set objective are being achieved
define skill
the ability that comes from the knowledge, practice and talent to do something well
identify skills of management
interpersonal (people), communication, strategic thinking, vision, problem-solving, decision-making, flexibility and adaptability to change, reconciling the conflicting interests of stakeholders
define interpersonal (people) skills
those skills needed to work and communicate with other people and to understand their needs (RELATIONSHIPS)
define interpersonal (people) skills
those skills needed to work and communicate with other people and to understand their needs (RELATIONSHIPS)
define communication skills
the exchange of information between people; the SENDING AND RECEIVING MESSAGES - miscommunication causes problems in a business
define strategic thinking skills
allows a manger to see the business as a whole and to take the broad, LONG-TERM view
define vision skills
the clear, shared sense of direction that allows people to attain a common goal
define problem-solving skills
a broad set of activities involved in searching for, identifying and then implementing a course of action to correct an unworkable situation
outline the process of problem-solving
identify the problem and causes - gather relevant information - develop alternative solutions - analyse the alternatives - choose one alternative and implement it - evaluate the solution
define decision-making skills
the process of identifying the options available and then choosing a specific course of action to solve a specific problem
define flexibility and adaptability to change skills
being responsive to change and able to adjust to changing circumstances - being PROACTIVE (forward planning, creating situations) rather than reactive (responding to situation)
define the triple bottom line
the economic, social and environmental performance of a business
define stakeholder engagement
businesses sharing information with and seeking input from stakeholders, and involving them in decision making
define goal
a desirable outcome that a business wants to achieve (end result) in a particular timeframe, can be a SMART goal
what are the benefits of setting goals
identifies the business targets, provides a benchmark, sets a challenge and motivates employees, can provide a basis for rewarding staff, provides commitment if employees are involved
identify businesses financial goals
profits, market share, growth, share price
identify businesses non financial goals and what responsibility do they come from?
social, environmental/sustainability
corporate social responsibility - triple bottom line
when does profit maximisation occur?
when there is a maximum difference between total revenue (TR) and total costs (TC)
how is profit calculated
total revenue (TR) - total costs (TC)
how is total revenue calculated
total sales x price
how is total cost calculated
it is the total expenses
define market share
refers to the business’s share of the total industry sales for a particular product
why must businesses increase their market share
size of market share affects profits therefore more growth in marketshare = more profit (which is the goal)
how can businesses increase their market share
promotion is a successful strategy to increase market share e.g. advertising
how can growth be achieved
internally: employing more people, increasing sales, introducing innovative products, purchasing new equipment, establishing more outlets
externally: achieved by integration and diversification strategies e.g. merging with or acquiring other businesses
define a share in a business
part ownership in a public company
how must businesses succeed in increasing share price
companies need to satisfy their shareholders by improving the share price and pay healthy dividends
define dividend
a distribution of a company’s profits to shareholders
what are the social goals for businesses
community service, provision of employment (e.g. employing family for the continuation of the business), social justice
why do businesses have social/environmental goals
to reduce things like child labour and mistreatment therefore being more ethical
short term costly effects = long term gain
what environmental/sustainable goals are demanded by customers
eliminate animal testing, recyclable packing, carbon emissions, solar energy, reducing water
define staff involvement
including staff in the decision-making process and providing them with the necessary skills and rewards
what must a business recognise for staff involvment
innovation, mentoring, motivation, training
how can staff be involved in innovation
employees are a great source of innovation and can be intrapreneurs
define intrapreneur
an innovative employee that tales entrepreneurial roles within a business
how is staff involvement important in the motivation of employees
involvement empowers staff and increases their motivation
define mentoring within the workplace
developing another individual by offering tutoring and coach and by modelling acceptable behaviour
what is the importance of mentoring for staff involvement
teaching employees what the business expects of them helps strengthen their dedication0 and commitment to the business
define training
teaching staff how to perform their jobs more efficiently and effectively by boosting their knowledge and skills
how is innovation related to staff involvement
employees are a great source of innovation
