Topic 2 Flashcards
Management
the process of working with and through other people to achieve business goals in a changing environment. Crucial to this process is the effective and efficient use of limited resources.
Manager
someone who coordinates the business’s limited resources in order to achieve specific goals
Planning
the process of establishing goals and deciding on methods to achieve them. Preparing a predetermined course of action
Organising
the structuring of the organisation to translate plans and goals into action
Leading
the process of influencing or motivating people to work towards the achievement of the organisation’s objectives
Controlling
the process of evaluating performance and taking corrective action to ensure that the set objectives are being achieved
Skill
the ability that comes from the knowledge, practice and talent to do something well
Effectiveness
measures the degree to which a goal has been achieved
Efficiency
compares the resources needed to achieve a goal (the costs) against what was actually achieved (the benefits)
Interpersonal skills
those skills needed to work and communicate with other people and to understand their needs
Communication
the exchange of information between people; the sending and receiving of messages
Nonverbal communication
any message that is not written or spoken
Strategic thinking
allows a manager to see the business as a whole and to take the broad, long-term view
Vision
the clear, shared sense of direction that allows people to attain a common goal
Leadership
the ability to influence people to set and achieve specific goals
Problem solving
a broad set of activities involved in searching for, identifying and then implementing a course of action to correct an unworkable situation
Decision making
the process of identifying the options available and then choosing a specific course of action to solve a specific problem
Flexible
being responsive to change and able to adjust to changing circumstances
Proactive
refers to a management style that incorporates dynamic action and forward planning to achieve particular objectives
Triple bottom line
the economic, social and environmental performance of a business
Stakeholder engagement
refers to businesses sharing information with and seeking input from stakeholders, and involving them in decision making
Goal
desired outcome (target) that an individual or business intends to achieve within a certain time frame
Benchmark
a standard by which something can be measured or judged
Profit maximisation
occurs when there is a maximum difference between the total revenue (that is, the number of sales made multiplied by the price) coming into the business and total costs being paid out
Market share
refers to the business’s share of the total industry sales for a particular product
Share
a part ownership of a public company
Promotion
the methods used by a business to inform, persuade and remind a market about its products
Social justice
in business is about adopting a set of policies to ensure that employees or other community members are treated equally and fairly
Sustainable development
when the needs of the present population are met without endangering the ability of future generations to meet their own needs
Staff involvement
involving employees in the decision-making process and giving them the necessary skills and rewards
Labour productivity
measures how much an employee can produce in a set period of time
Intrapreneur
an individual who takes on an entrepreneurial role within a business
Motivation
the individual, internal process that directs, energises and sustains a person’s behaviour
Mentoring
the process of developing another individual by offering tutoring and coaching, and modelling acceptable behaviour
Mentor
someone — usually a more experienced employee — who helps develop a less experienced employee (the protégé)
Socialisation
the process a new employee undergoes in the first few weeks of employment through which he or she learns how to cope and succeed
Employment training
refers to the process of teaching staff how to perform their job more efficiently and effectively by boosting their knowledge and skills
Multiskilling
allows employees to develop skills in a wide range of tasks through ongoing training
Mass production
the process of manufacturing standardised goods on a huge scale by automation
Classical approach
(to management) stresses how best to manage and organise workers so as to improve productivity (output)
- long chain of command, narrow span of control
Scientific management
an approach that studies a job in great detail to discover the best way to perform it
Planning
the preparation of a predetermined course of action for a business
Strategic (long-term) planning
planning for the following three to five years. This level of planning will assist in determining where in the market the business wants to be, and what the business wants to achieve in relation to its competitors.
Tactical (medium-term) planning
flexible, adaptable planning, usually over one to two years, that assists in implementing the strategic plan
Operational (short-term) planning
provides specific details about the way in which the business will operate in the short term
Organising
the structuring of the organisation to translate plans and goals into action
Organisation process
the range of activities that translate the goals of a business into reality
Control process
involves establishing standards in line with the goals of the business, measuring the performance of the business against those standards or benchmarks, and making changes where necessary to ensure that the goals of the business have been met
Chain of command
an organisational structure that shows how each member of a company reports to one another
Span of control
The number of people an employee is responsible for
Specialisation of labour
the degree to which tasks are divided into separate jobs
Management hierarchy
the arrangement that provides increasing authority at higher levels of the hierarchy
Leadership style
a manager’s way of doing things- their behaviour and attitudes
Autocratic leadership style
a manager using an autocratic leadership style tends to make all the decisions, dictates work methods, limits worker knowledge about what needs to be done to the next step to be performed, frequently checks employee performance and sometimes gives feedback that is punitive.
Time and motion studies
a process of examining each of the steps in a production procedure and the time taken to perform them
Bureaucracy
the set of rules and regulations that controls a business
Behavioural approach
an approach that stresses that people (employees) should be the main focus of the way in which the business is organised
- wide span of control, short chain of command
Delegate
to hand over certain tasks or responsibilities to an employee who is suitably capable and qualified to carry them out
Teamwork
when people interact regularly and coordinate their work towards a common goal
Flatter organisational structures
have evolved due to a ‘de-layering’ of management structures resulting in the elimination of one or more management levels
Participative democratic leadership style
a leadership style in which the manager consults with employees to ask their suggestions and then seriously considers through suggestions when making decisions
Contingency approach
stresses the need for flexibility and adaptation of management practices and ideas to suit changing circumstances
Operations
the business processes that involve transformation or, more generally, ‘production’
Operations management
all the activities in which managers engage to produce a good or service
Inputs
the resources used in the transformation (production) process
Transformed resources
those inputs that are changed or converted in the operations process
Transforming resources
those inputs that carry out the transformation process
Transformation process
Involves the conversion of inputs (resources) into outputs (goods or services)
Outputs
the result of a business’s efforts- the service or product that is delivered or provided to the customer
Outsourcing
the use of external sources or businesses to undertake business functions or activities for the business
Quality
the degree of excellence of goods or service and their fitness for a stated purpose
Quality management
the strategy which a business uses to make sure that its product meets customer expectations
Quality control
The use of inspections at various points in the production process to check for problems and defects
Quality assurance
The use of a system so that a business achieves set standards of in production
Total quality management
an ongoing, business-wide commitment to excellence that is applied to every aspect of the business’s operation
Quality circles
groups of workers who meet to solve problems relating to quality
Continuous improvement
an ongoing commitment to achieving perfection
Marketing
a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers
Target market
A group of customers with similar characteristics who presently, or who may in the future, purchase the product
Primary target market
the market segment at which most of the marketing resources are directed
Secondary target market
usually a smaller and less important market segment
Mass marketing approach
in mass markets the seller mass-produces, mass-distributes and mass-promotes one product to
all buyers
Market segmentation
occurs when the total market is subdivided into groups of people who share one or more common characteristics
Niche market
a narrowly selected target market segment
Marketing strategies
actions undertaken to achieve the business’s marketing goals through the marketing mix
Marketing mix
refers to the combination of the elements of marketing, the seven Ps- product, price, promotion, place, people, physical evidence, and process- that make up the marketing strategy
Product
involves determining the quality, packaging, design, name, labelling, exclusive features and warranties
Branding
a name, term, symbol or design that identifies a specific product and distinguishes it from its competitors
Brand logo
a graphic representation that identifies a business or product
Packaging
involves the development of a container and the graphic design for a product
Cost based pricing
Determines price of product based on cost of production and uses a fixed profit margin
Competition based pricing
Determines price based on prices set by competitors
Market based pricing
Sets price based on supply and demand, regardless of cost of production
Promotion
the methods used by a business to inform, persuade and remind a market about its products
Place or distribution
Activities that make the products available to customers when and where they want to purchase them
Distribution channels
ways of getting the product to the customer
People
refers to the quality of interaction between the customer and those within the business who deliver the service
Processes
refers to the flow of activities that a business will follow in its delivery of a service
Physical evidence
refers to the everything that the customer sees when interacting with a business
Accounting
a managerial and administrative tool for recording financial transactions, so that a summary of what has happened to business money can be traced
Accountability
when a business acts in the best and highest interests of its owners. Full and complete ‘disclosure’, which means to be open and not hide the truth, ensures that the books of account are kept accurately and that the information reflected in them, and which is summarised in reports, is based on the true and actual transactions
Finance
how a business funds its activities — for instance, where it gets the money to trade, why it chooses to use certain lenders — as well as the costs, risks and benefits of different types of borrowings
Financial statements
reports that summarise transactions over a period of time
Cash flow statement
a financial statement that indicates the movement of cash receipts and cash payments resulting from transactions over a period of time
Liquidity
the amount of cash a business has access to and how readily it can convert its assets into cash so that
debt can be paid
Income statement
a summary of the income earned and the expenses incurred over a period of trading
Cost of goods sold (COGS)
value of stock that a business has sold to its customers
COGS= Opening Stock + Purchases – Closing Stock
Gross profit
the term given to the revenue less cost of goods sold
Gross Profit= Revenue – COGS
Net profit
the amount remaining when operating and non-operating expenses are deducted from gross profit (selling, administrative and financial)
Net profit= Gross Profit – Expenses
Expenses
the costs incurred in the process of acquiring or manufacturing a good or service to sell and the costs (direct and indirect) associated with managing all aspects of the sales of that good or service.
Balance sheet
represents a business’s assets and liabilities at a particular point in time, expressed in money terms, and represents the net worth of the business
Assets
Items of value owned by the business that can be given a monetary value
Liabilities
Items of debt owed to other organisations (e.g. suppliers, banks)
Owner’s Equity
the funds contributed by the owner(s) to establish and build the business. It is also called ‘capital’.
Human resource cycle
covers all stages in the process of employing staff, from initial planning through to recruitment, selection, induction, training and development, performance management and eventually separation of employment
Human resource management
the effective management of the formal relationship between the employer and employees
Acquisition
the process of attracting and recruiting the right staff for roles in a business
Identifying staffing needs
Analysing the internal and external environment to determine the needs of the business and the employees
Job analysis
a systematic study of each employee’s duties, tasks and work environment. It comprises of a job description and specification
Job description
a written statement describing the employee’s duties, tasks and responsibilities associated with the job
Job specification
a list of the key qualifications needed to perform a particular job in terms of education, skills and experience
Recruitment
the process of finding and attracting the right quantity and quality of staff to apply for employment vacancies or anticipated vacancies.
Internal recruitment
filling job vacancies with present employees, rather than looking outside the business
External recruitment
filling job vacancies with people from outside the business
Employee selection
involves gathering information about each applicant for a position, then using that information to choose the most appropriate applicant
Development stage
refers to activities that prepare staff to take greater responsibility in the future
Training
the process of teaching staff how to perform their job more efficiently and effectively by boosting their knowledge and skills
Development
the process of preparing employees to undertake increased responsibilities in the future through acquiring improved knowledge, skills and experience
Maintentence
motivating employees to remain within the business
Employment contract
a legally binding, formal agreement between an employer and an employee
Award
a legally binding agreement that sets out the minimum wages and conditions for a group of employees
Enterprise agreements
Collective agreements made at a workplace level between an employer and a union acting on behalf of its employees, or between the employer and a group of employees, about terms and conditions of employment
Individual Common Law Contracts
Refers to when an employer and an individual employee negotiate a contract covering pay and conditions
Separation
refers to the ending of the employment relationship on a voluntary or involuntary basis
Voluntary
When an employee chooses to leave the business of their own free will
Resignation
the voluntary ending of employment by the employee ‘quitting’ their job
Retirement
when an employee decides to give up full-time or part-time work and no longer be part of the labour force
Redundancy
when a person’s job no longer exists, usually due to technological changes, an organisational restructure or a merger or acquisition
Involuntary separation
When an employee is asked to leave the business against their will
Summary dismissal
when the employee commits a serious breach of their employment contract
Dismissal
when the behaviour of an employee is unacceptable and it then becomes necessary for a business to terminate the employee’s employment contract
Retrenchment
dismissal because there isn’t enough work to justify payment
Unfair dismissal
when an employee is dismissed by their employer and they believe the action is harsh, unjust or unreasonable
Business ethics
the application of moral standards to business behaviour
Audit
an independent check of the accuracy of financial records and accounting procedures
Corporate social responsibility
refers to open and accountable business actions based on respect for people, community/society and the broader environment. It involves businesses doing more than just complying with the laws and regulation
Code of conduct
a set of ethical standards that managers and employees of the business are expected to abide by
Change
any alteration in the internal or external environments
Change management
a methodical approach to dealing with change, both from the perspective of a business and on the individual level
Holistic
an approach that looks at the whole picture
Proactive
to initiate change rather than simply to react to events
Reactive
to wait for a change to occur and then respond to it
Business information system
gathers data, organises and summarises it and then converts the data into practical information
Data
unprocessed facts and figures such as sales figures and customer complaints
Information
processed data that has been deliberately selected and organised to be useful to an individual
manager
Vision statement
a broad statement about what the business aspires to become in the future
Driving forces
those forces that support the change
restraining forces
those forces that work against the change
Inertia
refers to an unenthusiastic response to proposed change due to a fear of the unknown
Change agent
a person or group of people who act as catalysts, assuming responsibility for managing the
change process
Management consultants
someone who has specialised knowledge and skills within an area of business
Best practice
those business practices that are regarded as the best or of the highest standard in the industry
Change
any alteration in the internal or external environments
