U3 AOS 1 Flashcards

Question

Define Business Objectives

Answer 1

A business objective is a goal which an organisation sets out to achieve in a given time period

Answer 2

criteria that measure how efficient and effective a business is at achieving business objectives

Answer 3

how productively a business uses its resources when producing a good or service (e.g. how many people do they need, how much time or how much raw material)  less resources used for the same number of products = higher efficiency

Answer 4

the extent to which the business achieves its business objectives

Answer 5

The goal to generate more revenue than expenses from running a business

Answer 6

grow the proportion of sales of a business within a particular industry (control more of the market)

Answer 7

The goal to provide a return on the money they have invested into the business

Answer 8

To goal to provide customers with a good or service that is desired and meets their expectations

Answer 9

The goal to conduct business activities that improve the community and environment

Answer 10

- either to return to owners or shareholders OR - to reinvest into the business - enables growth All types of business have this objective b/c profit is essential for survival

Answer 11

Either seek to increase revenue - e.g. marketing campaign/new product/improved quality OR Reduce expenses - eliminate waste, lower number of staff (e.g. Aldi) or cheaper materials

Answer 12

- make prices lower than competitors - loyalty schemes - increased quality - increased flexibility (e.g. faster service or more tailored) - market based on other customer value - e.g. sustainability or doing something positive for the community

Answer 13

- an income from the business through dividends - any strategy that generates profit - hope to sell their share for a higher price in the future - any strategy that helps the business to grow

Answer 14

Identify a gap in the market - what is something that customers need but can't get + develop product or service that meets that need

Answer 15

Consider social and environmental impact when making decisions e.g. sponsorship or local clubs OR using renewable energy OR reducing packaging

Answer 16

EITHER it's their purpose OR it's a way of increasing reputation t/f attracting customers - thus allows them to achieve other aims (profit or market share)

Answer 17

_Total quantity_ of a particular product or service purchased _during a defined time period_

Answer 18

A representation of the _portion of sales_ that a business has _compared to the total sales for the industry or product_, _over a set time period_ expressed as a percentage.

Answer 19

Net profit figures are calculated by deducting total expenses incurred from total revenues earned over a period of time.

Answer 20

Rate of productivity growth compares the amount of output produced to the amount of input (resources) going into production from one defined time period (e.g. year) to the next Rate of Productivity Growth = ((inputs/outputs now)-(inputs/outputs previous))÷(inputs/outputs previous) x 100

Answer 21

The amount of consumers that are unhappy with the business and/or its products, **have expressed their concerns to the business and had their concerns recorded,** in a set time period

Answer 22

The amount of resources discarded by the business during the production process in a set time period

Answer 23

The number of unplanned events interrupting workflow that may or may not include injury or property damage in a set time period

Answer 24

A percentage indicating the number of workdays lost due to **unscheduled** staff absence from work in a set time period

Answer 25

The number of staff who are leaving the organisation and need to be replaced /number of staff within a given time period

Answer 26

Who? individuals that have full or part ownership of the business Vested interests: * fulfilment of business vision * return on investment through profits

Answer 27

Who? individuals who invested in the organisation in return for part ownership Vested interest: * return on investment through dividends or increased share price

Answer 28

Who? individuals in charge of entire business or an area of management (department) Vested interests: * pay that matches responsibility of managing business * status and recognition for work by _achieving objectives_ * opportunities for career advancement * feel personal values align w/ the org = fulfilment/purpose

Answer 29

Who? individuals who work for a business by completing allocated tasks in return for pay Vested interests: * fair pay and work conditions * opportunities for professional development and promotion * long term job security * feel personal values align with org = fulfilment/purpose

Answer 30

Who? People who purchase goods or services from a business Vested interests? * a product or service that is quality and value for money * a safe product/service * a product/service that reflects personal values (pride in purchase)

Answer 31

Who? businesses that sell raw materials and resources to other businesses for their production Vested interests: * earn a profit by selling to business * on time payment * repeat custom * protection of reputation of their business

Answer 32

Who? Individuals and groups who do not directly interact with the business _but_ are impacted by business activities Vested interest: * business activities that improve the community and environment; e.g. provide local employment, purchase from local suppliers, sponsor local community groups, recycling/waste policies

Answer 33

Nature of task Time Experience of employees Manager preference

Answer 34

Decision making = Centralised - manager makes the decisions with no staff input Communication = One way - top down, and very clear directions given. Employees are told what to do.

Answer 35

**Nature of task =** High risk or crisis situation, large groups of employees working on a task simple in nature **Time =** Limited **Experience of employees =** Lack the skills, knowledge and experience to complete the task **Manager preference =** Prefers to maintain control, can fear delegating/lacks faith in staff

Answer 36

High level of clarity = clearly defined procedures = consistency in outcome Employees’ roles and expectations set out plainly = performance can be monitored + staff held accountable Decisions made quickly = highly responsive in time of crisis

Answer 37

Doesn’t allow the manager to access staff knowledge/ideas = potential that best decisions not made Employees = no power = no chance to develop skills + feel undervalued = decrease morale  low job satisfaction  high staff turnover An ‘us and them’ mentality may develop = lack of employee pride in performance = meet expectations but don’t go above = lower overall business performance

Answer 38

**Decision making =** Centralised- Manager makes the decisions, however, they try to convince the employees it’s the right decision rather than just telling them. **Communication =** One way, however, there is more information provided to the employees that autocratic. Employees are told what to do and why.

Answer 39

**Nature of task =** Large groups of employees working on a task simple in nature, high risk decision (where information leaking prior to decision being made could be detrimental) **Time =** Limited (not crisis) **Experience of employees =** Inexperienced → management understand more about the task than the employees do • **Manager preference =** Prefer to have control, however, still feel the need to convince/educate employees

Answer 40

Management can gain trust through persuasion Decisions made quickly Instruction and explanations remain clear and constant à consistent output Some acceptance of negative situations when benefits of management decisions are explained = less impact on morale Providing reasons can increase staff understanding of organisation à development

Answer 41

Doesn’t allow the manager to access staff knowledge/ideas = potential that best decisions not made Employees = frustrated b/c denied participation in decision-making If done poorly = negative trust in management Lack of employee development

Answer 42

**Decision making =** Decisions made by management (centralised) after discussion with employees to obtain their opinion **Communication =** Two way communication **Control =** Manager maintain ultimate control, however greater importance is placed on employee involvement + some control over information flow is passed over during decision making process

Answer 43

**Nature of task =** More complex/creative tasks, when there are elements of the task where employees have more knowledge than the manager, when there are a wide variety of considerations to be taken into account (e.g. different interests from different stakeholders) **Time =** Limited time pressure- it takes time to consult employees **Experience of employees =** Higher levels of experience and skills – employees may have very detailed knowledge of elements of area decision being made about but not knowledge of the “big picture” **Manager preference =** Likes to include employees and values input, however, still makes final decision

Answer 44

Greater variety of ideas = improved management decisions = improved business performance Employees have some ownership = increased motivation and commitment Employee development/learning through consultation process + enables management to identify high potential staff based on input = increase employee development

Answer 45

Slow due to time to consult Some employees may not want to be consulted on decisions OR some employees may not have knowledge and skills to be able to contribute meaningfully Conflict or resentment b/c some ideas have to be ignored Sensitive information can become common knowledge b4 decision = increase fear amongst employees

Answer 46

**Decision making =** Decentralised- the manager and employees share decision making = shared decision making **Communication =** Two way communication- sharing idea and feedback is encouraged **Importance placed on =** Employee contribution and sense of ownership + belief employee involvement leads to better decision making **Control =** Shared between manager and employees

Answer 47

**Nature of task =** Complex/creative tasks, problem solving task w/ multiple different approaches that are valid **Time =** Ample time available – no immediate time pressure **Experience of employees =** High level of experience – employees may have more knowledge of aspects of the task AND have an understanding of the ‘big picture’ (although may be not as well developed as manager) **Manager preference =** Prefers collaborating, values the skills and knowledge of their employees, is comfortable delegating control.

Answer 48

Increased motivation and job satisfaction b/c of sense of value and ownership of business decisons Positive Employee/Employer relationships Greater opportunity for employees to acquire skills which could lead to career advancement and/or improve their performance within the organisation Potential for better decisions due to the increased pool of resources

Answer 49

Decision making is time consuming Quality of decisions can suffer due to compromise OR if employees are given decision making power without sufficient knowledge Directions can lack decisiveness and clarity Role of management may be weakened or undermined Employees can have too much power = conflict of interests t/fore may not make best decision for organisation Internal conflict can result from disagreement

Answer 50

**Decision making =** Decentralised- Authority to make decisions is handed over to employees **Communication =** Two way- The manager makes the objectives and time constraints clear, then the employee team report on progress **Importance placed on =** Autonomy - allowing staff to select their own way to achieve a defined outcome **Control =** Manager hands control over to the employees and monitors progress towards objectives

Answer 51

**Nature of task** Simple with no requirement for uniformity - where employees don’t need supervision Complex – highly dependent on employee skills – where solution may not be known – e.g. research **Time** Extend time period to make decisions **Experience of employees** High level of expertise/experience – employees may have more experience than management in specifics of the task at hand (as a whole) **Manager preference** Prefers to delegate to employees, comfortable with a hands off approach, sometimes lacks sense of personal responsibility

Answer 52

Employees feel a sense of ownership, which can promote outstanding results Continual encouragement for creativity Delegation enables management to focus on other elements of organisation Employees able to respond quickly to issues that arise as they are empowered to make decisions à don’t need to run decisions past management

Answer 53

Complete loss of control by management  Can lead to management becoming disconnected; therefore, lack ability to intervene when required Potential for misuse of organisation’s resources (e.g. time and money)  employees may act in own best interests rather than interests of organisation Can breed personal conflicts whereby individuals do not cooperate and management is not there to direct or negotiate Can lead to sense of lack of direction for staff – not clear what is wanted or expected of them = lowers motivation

Answer 54

The ability to establish objectives and strategies to achieve them

Answer 55

The ability to determine a suitable course of action for the business from a range of alternatives

Answer 56

The ability to **effectively transfer information** from a sender to a receiver, and to listen to feedback, to produce the required response.

Answer 57

the ability to transfer authority and responsibility to employees for defined tasks

Answer 58

The ability to deal or liaise with people and build positive relationships with staff

Answer 59

**Leading** is the ability to influence or motivate people to work towards the achievement of business objectives.

Answer 60

shared values and beliefs of the people in an organisation. These can be real or official.

Answer 61

Official = desired culture a business wishes to establish (i.e. what an organisation says it stands for) Visible through company documents – e.g. mission and vision statements or slogans and logos Real = The actual or prevailing culture that exists within a business – i.e. essentially how things ACTUALLY operate – e.g. how to managers communicate with employees? How to employees relate to each other? What is time and money spent on?