Principles of managment

Question 1

The P.O.L.C. approach

Answer 1

1. Planning
2. Organizing
3. Leading
4. Controlling

Question 2

Planning

Answer 2

steps:
• Analyze opportunities and threats
• Define goals
• Identify alternatives
• Formulate steps

Question 3

Purposes of planning

Answer 3

• Clarify direction
• Motivate
• Use resources effectively
• To control and measure progress
• A ritual

Question 4

Business plans

Answer 4

• When: start a new business or expanding existing one
• Why: convince investors to lend money, or senior managers to allocate more
resources
• What: description of the market, how the company/unit intends to serve it,
the financial resources required.

Question 5

Strategic plans

Answer 5

• When: corporate crisis, change in ownership, new opportunities
• Why: set a new direction
• What: overall direction for the business, scope, and long term goals for major
activities

Question 6

Operational plans

Answer 6

They make the strategic plan
more operational (how to
achieve the strategy)

Question 7

Swot

Answer 7

Internal [Strengths/ Weaknesses]

External [Opportunities / Threats]

Question 8

Internal

Answer 8

Strengths
• What do you do better than
others?
• What are your unique
competences/skills?
• What do others think you
are good at?

Question 9

Internal

Answer 9

Weaknesses
• What are your areas for
improvement?
• What do others see as
your weakness?

Question 10

External

Answer 10

Opportunities
• What good opportunities
can you spot?
• What are the favourable
trends?

Question 11

External

Answer 11

Threats
• What obstacles are you
facing?
• What can prevent you
from succeeding?
• What are the unfavourable
trends?

Question 12

Scenario planning

Answer 12

• Develop scenario ‘stories’ - that is, coherent and plausible descriptions of
the future
• Considers how external factors might affect a company’s business over
the next 5-10 years
• Identify the impact of each scenario on the organisation and evaluate
future strategies in the light of the anticipated scenarios

Question 13

Setting goals

Answer 13

Goals are statements of specific outcome that are to be achieved.
Key performance indicators (KPI) & Targets
It is useful to relate goals in a hierarchy

Question 14

SMART

Answer 14

• Specific,
• Measurable,
• Attainable,
• Rewarded,
• Timed

Question 15

Organizing

Answer 15

Organizing at the level of the organization
involves deciding how best to
departmentalize, or cluster, jobs into
departments to coordinate effort effectively.

Question 16

Leading

Answer 16

Leading involves the social and informal
sources of influence that you use to inspire
action taken by others.

Question 17

Controlling

Answer 17

1) establishing
performance standards,
2) comparing actual performance against standards,
3) taking corrective action when necessary.

Question 18

Innovation

Answer 18

Novety + Value

Question 19

Key task

Answer 19

1. Creating an innovation strategy
2. Designing an innovation system
3. Building an innovation culture