Unit 3 - Intro to management Flashcards
Management skills
Leading
Motivating
Communicating
Management Activities
Planning
Organising
Controlling
Management Skill - Leading
Managers have a goal for the future. They can share this with employees, and are able to encourage employees to work together. They have to chose to use the most appropriate leadership
Management Skill - Motivating
Managers are able to find out what motivates and drives employees. These can be financial or non-financial rewards. Motivational theories like Maslow’s Hierarchy of Needs, or McGregor’s Theory X and Y are useful
Management Skill - Communicating
The manager needs to be able to effectively relay information to stakeholders. They can use methods including oral, written, and visual.
Management Activity - Planning
Managers must identify business goals and are able to break them down into achievable tasks. These can be short, medium, or long term.
Management Activity - Organising
Managers have to be able to put an organisational structure in place to be able to enable tasks to be completed
Management Activity - Controlling
Management are able to use control structures, and identify when they need to be used.
Characteristics of a manager
Problem solving
Flexibility
Charisma
Hard-working
Initiative
Characteristics of a manager - Problem solving
A manager has to be able to identify problems, and think of effective solutions
Characteristics of a manager - Flexibility
Managers should be able to be flexible, and adapt to unexpected situations
Characteristics of a manager - Charisma
Managers need to be able to inspire others
Characteristics of a manager - Hard-working
Managers need to set a good example for employees, and don’t quit until tasks are finished
Leadership Styles
- Autocratic
- Democratic
- Laissez-faire
Autocratic Leadership Style
This is a management style where the manager makes all business decisions, with no input from staff. They don’t trust staff, and believe they’re only motivated by money
Democratic Leadership Style
Employees participate in the decision making process, and are encouraged to do so by management. The manager has ultimate responsibility, but values employee views and opinions
Laissez-faire Leadership Style
The manager outlines goals, and trusts employees to accomplish them. They delegate work, take a hands-off approach, and the employees make decisions.
Delegation
This is assigning tasks to another person, usually subordinates. The requirements for effective delegation are :
1. Open communication
2. Employee skills and experience
3. Managerial controls
Benefits of leadership
- Achieving organisational goals
- Management time
- Increases employee motivation
- Supporting change
- Staff retention and recruiting
Maslow’s Hierarchy of Needs
- Physiological - The need for food shelter and warmth
- Safety - The need to feel safe and secure
- Social - The need for friendship and love
- Esteem - The need for status and respect
- Self-actualisation - The need to achieve one’s full potential
Advantages and limitations of Maslow’s Hierarchy of Needs
Advantages
Rewards, Changing Employee Needs, Management Positions
Limitations
Individual Needs, Self-actualisation, Value of needs
Theory X
Theory X managers believe employees are lazy and dislike work. Autocratic leadership, and threats and punishment motivate staff.
Theory Y
Theory Y managers believe employees are willing to work, and are motivated by financial and non-financial means.
Advantages and Disadvantages of McGregor’s Theory X and Y
Advantages
Motivations, Recruitment and Selection, Industrial Relations
Disadvantages
Unrealistic, Staff Turnover, Less Intrapreneurship
Communication Definition
The exchange of information between two parties.
Two types : Internal, External
Methods of Communication
Verbal, Written, Visual
Verbal Communication
The exchange of information and ideas through speech
Advantages : Fast communication, Repeating the message, Personal connection, Powerful impact
Disadvantages : No record, Not listening, Lack of preparation, Message length
Written Communication
Using the written word to transfer information. (Email, memos, letters, leaflets)
Advantages : Record, Reference, Speed, Accurate
Disadvantages : Slow feedback, Security, Cost, Delayed Decision-making
Visual Communication
Using images, graphics, and symbols to communicate messages.
Advantages : Easy to understand, Easy to recall, Presentation
Disadvantages : Cost, Cannot be used alone, Over-use
Meetings
A gathering of at least two people to discuss topics in relations to making a decision. Formal and informal
Notice
An invitation for people to attend a meeting
Agenda
A list of items to be discussed at a meeting
AOB
Any other business. This gives people an opportunity to bring up a topic to discuss
People involved in a meeting
Chairperson : The person responsible for running and organising the meeting. Elected by attendees
Secretary : Responsible for organising the meeting (administrative aspects)
Role of the chairperson
Notice and agenda, opens the meeting, runs the meeting, calls for votes, closes the meeting
Roles of the secretary
Arrange the venue, Notice and agenda, Minutes, Correspondence (paperwork), Assists the chairperson
Types of meetings
AGM
EGM
Board Meeting
Statutory Meeting
Ad Hoc Meeting
General Meeting
AGM
Annual General Meeting
Held once a year and attended by directors and shareholders.
EGM
Extraordinary General Meeting
A meeting of board of directors and shareholders to discuss an urgent issue that can’t wait until the next AGM.
Board Meeting
Held at regular intervals, attended by the board of directors, usually once a month. Outlines performance and future plans
Statutory Meeting
Held once in the lifetime in a company. It is the first meeting of a company, Shareholders are informed about the business goals and affairs.
Ad Hoc Meeting
Takes place at short notice, to discuss a subject that has arisen unexpectedly, and needs to be resolved quickly
General Meeting
Meetings held on a regular basis between employees and management. Can discuss planning, sales forecasts, or how the business is being run
Advantages of effective communication
Productivity, Industrial Relations, Customers, Improved Decision-Making, Employee Morale
Barriers to effective communication
Timing, Language, Information Overload, Not Listening, Lack of Trust
ICT
Information and Communications Technology
The use of computers to Store, Transfer, Access, and Manipulate (STAM) information
Forms of ICT in business
Internet, Email, EDI (Electronic Data Interchange), Cloud Computing, Video Conferencing, Social Media, Computer Software Applications
GDPR
General Data Protection Regulation 2018
Terms in the GDPR
Data Subject, Personal Data, Data Controller, Data Processor, Data Protection Commission (DPC)
Rights of Data Subjects
Right of Access, Copy of Data, Correction of Data, Erasure of Data, Complain to DPC
Responsibilities of Data Controllers
Data Collection, Provide Copies, Keep Data Secure, Report Data Breaches, Appoint DPCs
Functions of the DPC
Monitors and enforces GDPR, Promotes awareness of GDPR, Prohibits Data Transfer, Imposes Fines, Data Audits
SMART Plans
Specific, Measurable, Achievable, Relevant, Timed
Planning Process
Assess situation, Set a goal, create a plan, Implement the plan, Review the plan
SWOT Analysis
Strengths, Weaknesses, Opportunities, Threats
Benefits of Planning
Anticipates Problems, Identifies SWOT, Benchmarking, Improves Motivation, Finance
Types of Organisation Structures
Functional, Geographic, Product, Matrix
Types of Organisation Structures
Functional, Geographic, Product, Matrix
Delayering
This involves removing one or more management layers in an organisation structure
Benefits of Organising
Clear Chain of Command, Improved Communication, Management Workload, Employee Motivation
Types of Management Control
Stock control, Quality control, Credit control, Financial control
Steps in Controlling
- Set the standard
- Measure performance
- Compare performance with standard
- Take corrective actions (if necessary)
Stock Control
Management activity that aims to keep optimal stock levels, so the company doesn’t have too much or little
Types of Stock
Raw materials, Work in progress, Finished goods, Merchandise
Methods of maintaining stock levels
Manual stock take, EDI, JIT (Just In Time)
Quality Control
A set of procedures to check work completed to make sure it is of acceptable standard
Methods of Quality Control
Inspections, Quality circles, Quality awards, TQM (Total Quality Mangement)
Credit Control
Ensuring debtors who use credit facilities pay in full on time, and avoids bad debt
Credit Control System
Set credit limits, Check customer’s creditworthiness, Efficient administration, Debt collection procedure
Benefits of Credit Control
Lower risk of bankruptcy, Reduces bad debts, Increased sales and profits
Financial Control
Ensures the business is profitable and liquid
Methods of Financial Control
Cash Flow Forecast, Ratio Analysis, Budget Allocation
Different types of plans
Strategic
Tactical
Operational
Contingency
Human Resource
Financial
Strategic Plan
Breaks mission statement into long-term plans
Tactical Plan
Breaks Strategic Plans into short-term plans
Operational Plan
Plans for the day-to-day running of a business
Contingency Plan
Back-up plans to deal with unforeseen events or emergencies
Human Resource (Manpower) Plan
Ensures the business has enough employees with correct skills and qualifications
Financial Plan
Preparing Cash Flow Forecasts to predict income and expenditures
