Topic 2: Business Management Flashcards
Identify the features of effective business
management
The features of effective business management are Planning, Organising, Leading, and Controlling
Recall the acronym for the features of effective business management
POLC
Identify the requirements for business goals
Specific, Measurable, Achievable, Realistic, and Time-based
Recall the acronym for the requirements for business goals
SMART
True or False: Profit maximisation is a long-term goal, in general, and may require the business to accept lower profits, or even losses, in the short-term
True
Explain why unethical business activity may initially boosts a company’s share price but in the long term, be harmful for the business
Unethical activities will boost the business since most unethical activities are financially good (slavery) but ultimately will harm the business by damaging its reputation
Recall when the classical management approach was invented
The classical management approach was invented during the Industrial Revolution
Identify the types of classical management approach
The types of classical management approach are classical-scientific and classical-bureaucratic
Identify the principles of classical-scientific management
The principles of classical-scientific management are:
1. Scientifically examine each part of a task
2. Select suitable workers and train them
3. Cooperate with workers
4. Divide work and responsibility
Recall who pioneered the classical-scientific approach
Frederick W Taylor pioneered the classical-scientific approach
Recall how Taylor examined the tasks to determine the most efficient method to perform it (classical-scientific)
Taylor used time and motion studies
Recall who pioneered the classical-bureaucratic approach
Max Weber and Henry Fayol pioneered the classical-bureaucratic approach
Outline the principles of the classical-bureaucratic management approach
The principles of the classical-bureaucratic management approach are:
1. A strict hierarchical structure
2. Clear lines of communication and responsibility
3. Jobs broken down into simple tasks; specialisation
4. Rules and procedures
5. Impersonal evaluation of employee performance to avoid favouritism and bias
Identify the types of planning
The types of planning are strategic, tactic, and operational planning
Identify the steps of the organising process
- Determining the work activities
- Classifying and grouping activities
- Assigning work and delegating authority
Identify the steps of the controlling process
The steps of the controlling process are:
1. Establish standards
2. Measure performance
3. Take corrective action
Identify the types of management approaches
The types of management approaches are classical, behavioural, and contingency management approach
Recall who pioneered the behavioural management approach
Elton Mayo pioneered the behavioural management approach in The Hawthorne Studies
Identify the main features of the behavioural management approach
The main features of the behavioural management approach are providing worker satisfaction, emphasising teamwork, and providing facilities
True or False: Under the contingency management approach, there is no miracle ‘blueprint’, the manager must adapt their approach to their employees, business, and circumstances in general
True
Identify the advantage and disadvantage of dividing the business functions
Division causes the business to become more specialised but it also requires a higher level of coordination to run smoothly
Identify the key business functions
Operations, Marketing, Financial, and Human Resources
