Week 1 - Management, Models, and Frameworks

Question 1

Who are entrepreneurs?

Answer 1

People who see opportunities in a market and quickly mobilise the necessary resources to deliver the good or service profitably (focus is on financial gain 💵)

Question 2

Who are social entrepreneurs?

Answer 2

People who see opportunities in market and quickly mobilise the necessary resources to deliver the good or service to disadvantaged groups
Same as normal entrepreneurs BUT focus on disadvantaged groups- promote social equality instead of financial gain 💵 like normal entrepreneurs

Question 3

How do all organisations run and how can they fail?

Answer 3

People who run business draw resources from external world
They then transform these resources into outputs
The output is then returned to the outside/external world
Value (money/goodwill/reputation) gained by business in return for providing output used to gain further resources from external/outside world and … continue in business
An organisation/enterprise will fail if the outputs given to the world do not attract sufficient value to keep the business going

Question 4

What is management as a universal human activity?

Answer 4

Management in everyday life- taking responsibility for an activity and consciously trying to shape its progress and outcome
E.g. managing children, elderly, households etc

Question 5

Define manager and their role

Answer 5

A manager is someone who is expected to add value to the resources they use with the help of people and other resources

Question 6

Define management

Answer 6

Activity of intending to add value to resources with the help of people and other resources

Question 7

Define role

Answer 7

expectations that others have about the responsibilities of a person occupying a position

Question 8

How does the role of an entrepreneur who just started their own business change as the business grows?

Answer 8

Initially they do a lot of the work themselves whether that involves designing T-shirt’s, writing software etc and also need to think about how to raise money and which markets to sell to etc
As the business experiences growth, the entrepreneur may employ more staff and now the priority may change to working on interpersonal tasks such as training and supervision
As the business experiences even more growth, the entrepreneur may take on some management roles and may even share them with other staff members to form a management team whilst workers are employed to do the actual work and are managed by the owners and other managerial staff

Question 9

Give an example of a successful entrepreneur and business

Answer 9

Tony Ryan of Ryanair was an experienced entrepreneur who built Ryanair from the ground up- he added value to the resources he had and persuaded others to provide more (investors willing to provide money for the aircraft and the costs of operating it)
He organised these resources into a service which he sold to customers

Question 10

What are the 2 way in which management can occur?

Answer 10

1) Management can exist as a universal human activity
2) Management can exist in a distinct role

Question 11

What is management as a distinct role and how does it emerge?

Answer 11

Develops when activities previously embedded in the work itself become the responsibility of the owners who now take up more or only the management side of the work and instead workers are employed to do the work itself
The owners would, at the beginning of the enterprise, have to do both the work and manage themselves but this can change as a business grows

Question 12

How does management occur in the real life world- give real life examples?

Answer 12

1) At Google there was a divide between the engineers who wanted managers and the founders who didn’t think it was necessary- to reach a resolution, Google has now a developed a robust system to measure the effectiveness of managers and improve their skills where necessary- here management and non-management work is separated with the engineers having a largely non-management role and the managers having a largely managing role
2) However this separation isn’t always the case e.g. Ryanair has a fluid boundary between managers and non-managers- all roles are expected to perform a mixture of tasks

Question 13

What is an organisation?

Answer 13

An organisation is a social arrangement for achieving goals that create value

Question 14

How does a manager add value?

Answer 14

A manager adds value by doing the following:
1) Obtain resources
2) Develop the competences (working relationship with workers, procedures, systems etc) to use them productively
3) When workers use resources productively and produce outputs that are more valuable to customers than the cost of the resources used, value is added

Question 15

Define competences and why they’re important for managers

Answer 15

Good managers develop effective ways of working, effective systems and procedures- motivate staff to ‘go the extra mile’- these ‘ways of working’ and procedures are called competences and are important to ensure that workers use the available resources productively (resources obtained and provided by the managers)

Question 16

Define value

Answer 16

A managers role is to add value to resources with the aid of people etc (see definition of managers and their role)
Value is added to resources when they are transformed into goods or services that are worth more than the cost of the resources used to make/produce them plus the cost of transformation

Question 17

What is the most common way value is measured?

Answer 17

Money 💵 (financial terms)- organisations spend money on resources in the hope that what they produce and sell will bring in enough money to at least repay the original investment but ideally also an acceptable profit

Question 18

What are others ways in which value can be measured?

Answer 18

Value can be measured in terms of cultural, social and natural values
This is typically the focus of social entrepreneurs (see definition)- e.g. charities who add value by educating people

Question 19

Give a real life example of an organisation which adds non-financial value

Answer 19

Parkrun 🏃‍♂️- they arrange hundreds of free runs in parks each weekend for the health and benefit of local residents in the community (social and health value)- volunteers do most of the organising

Question 20

What is sustainability?

Answer 20

Economic activities that meet the needs of the present population whilst preserving the environment for the needs of future generations

Question 21

Is sustainability important for an organisation and if so, why?

Answer 21

Hawken et al used years of experience to show that companies who achieve sustainability in their performance do well
By turning waste into profit using approaches e.g. energy efficient in buildings and by creating work practices that are satisfying and rewarding for employees, an organisation is bound to do well

Question 22

What term sums up the idea that sustainability is a crucial element for the success of an organisation?

Answer 22

Triple bottom line- shows the idea that performance is dependent on 3 things (3 P’s):
1) Planet- environmental impact of organisation
2) People- impact of organisation on quality of people’s lives
3) Profit- organisations profitability

Question 23

Why can deciding if managers have created value be subjective and controversial?

Answer 23

If a manager is overlooking the creation of a motorway- they have provided value for the drivers, local residents and shareholder but destroyed value if the route destroys wildlife or greenery etc

Question 24

Do all organisations add value?

Answer 24

No- if resources aren’t used productively and efficiently, workers use more resources to make a product than what customers will pay for … they destroy value (financial 💵)
If pollution and waste is a by product of creating output the this also destroys value

Question 25

Explain how managers add value

Answer 25

3 stage model: 1) Task- the task that is the focus of the individual or team (managers plan, organise, lead and control) 2) Process- how people work together- what they say or do to complete the task at hand to the required standard (managers communicate, motivate, decide) 3) Context- refers to settings in which people and organisations work (managers can work various parts of the organisation as well as the external environment)

Question 26

Why should managers plan?

Answer 26

In order to set out the overall direction for the organisation (expressed as manger goals)- decide on which areas of work to engage in- how to allocate resources between different projects and activities

Question 27

What is a problem that managers may face with stakeholders in the organisation?

Answer 27

Stakeholders will have different priorities which means that managers will need to influence the stakeholders to act in ways that the managers believe will add value

Question 28

Define stakeholders

Answer 28

Individuals or groups that interested in and affected by what an organisation does

Question 29

How can a manager overcome the problem that stakeholders may have different priorities?

Answer 29

By shaping (changing slightly) the generic management tasks- editing the planning, organising and leading occurs to ensure stakeholders are influenced to add value Management tasks- those of planning, organising, leading and controlling the use of resources to add value to them

Question 30

Why should managers organise?

Answer 30

To move abstract plans closer to reality Organising involves allocating time and effort, deciding what technology people need etc

Question 31

Why should managers act (get things done) and lead?

Answer 31

Managers often have tasks to do themselves e.g. scheduling work for employees, producing reports on current performance etc (acting) whilst simultaneously conducting managerial tasks e.g. planning, organising, controlling etc BUT also things like influencing stakeholders, motivating employees, communicating and working in teams

Question 32

Why should managers control?

Answer 32

To monitor progress- compare with plan too see if targets being met and if not then to take corrective action Managers should ensure systems are in place to collect information about performance and expenditure to ensure outcomes/objectives being met and budget is being kept Control helps to monitor progress which is also important to learn from experience and not make the same mistakes again

Question 33

What are the managerial/management tasks?

Answer 33

Planning, organising, controlling and acting/leading

Question 34

How do the management tasks work in practice?

Answer 34

Planning, organising, acting/leading and controlling is key In some firms there is no clear stages between the tasks- but instead all are linked and interrelate

Question 35

Give a real life example of management tasks in action

Answer 35

Ryanair ✈️- edit the way they do things (plan, organise, control, lead/act etc) - using single aircraft type (Boeing 737-800) ensures simple maintenance and training - using secondary airports minimises costs due to lower landing charges - not assigning seats simplifies administration- means that passengers arrive on time to board early to get better seats Reason for flight or baggage delays recorded to try to find root cause so that future delays minimised (control- measure of performance- learn from mistakes)

Question 36

Who looked into manger roles as part of the management process?

Answer 36

Mintzberg- ten management roles Came up with 10 roles in 3 categories Categories: informational, interpersonal and decisional Found that every mangers job combines these roles and relative importance of roles depends on manager’s personal preferences, position in hierarchy and business type

Question 37

Which type of mangers did Mintzberg look at?

Answer 37

He looked at managers in big businesses

Question 38

Does managerial work differ in small businesses and explain why

Answer 38

Similarities but also distinct differences: Fast pace- similarity Switching between roles and tasks frequently Directed attention to most pressing issues Frequent interruptions Much more informal communication

Question 39

How important is networking for managers?

Answer 39

Very important- study found that successful managers spent much more time networking (socialising, building and maintaining internal and external contacts) than the less successful Association with salary growth Especially important for entrepreneurs as good networks means they see better able to secure resources, information and status etc Also understanding society and markets improved when socially active with broad circle of friends from various backgrounds

Question 40

How important is context to managers?

Answer 40

Pretty important- managers can use the context to influence others e.g. by editing the office layout, reporting relationships (who and how people report to each other etc), reward system etc

Question 41

What are the different types of context?

Answer 41

1) Internal context 2) Historical context 3) External context

Question 42

What is internal context?

Answer 42

An organisations internal system: Things like: - culture (norms and beliefs) - objectives - structure (how tasks are divided so that objectives are met) - technology (equipment to turn inputs into outputs)

Question 43

What is historical context?

Answer 43

How past events shape the present So things which have worked previously e.g. how tasks are distributed, or how reporting works might be kept the same … history effects the modern day contexts which a management team may use People at all levels also have a tendency to welcome the familiar and resist change

Question 44

What is external context?

Answer 44

External context is what’s happening in the environment- what are competitors, suppliers doing etc It is important for managers to be aware of what’s happening externally and how this will effect the business- they then could influence people by changing the internal context in order to meet external expectations

Question 45

Why must managers think clearly and critically?

Answer 45

Thinking clearly/critically is a good start for managers trying to add value to resources

Question 46

State what clear/critical thinking involves

Answer 46

1) Checking assumptions 2) Recognise that context matters 3) Imagining alternatives 4) Acknowledging limitations

Question 47

How does checking assumptions relate to clear/critical thinking?

Answer 47

Checking assumptions: stating explicitly what assumptions are being made about a proposed action/proposal/change- then check to see whether the assumptions made are valid- what effect will the action/proposal/change in the independent variable have on the dependent variable etc- e.g. the innocent drinks case study about change in packaging from cardboard to plastic bottles

Question 48

How does recognising that context matters relate to clear/critical thinking?

Answer 48

Recognise that context matters: the effect of the independent variable on the dependent variable will be mediated by the context e.g. in innocent drinks example this could be the likelihood that retailers and consumers will avoid plastic for environmental reasons- clear/critical thinkers/managers constantly observe and monitor the changing context and how this may affect their area of responsibility- thinking carelessly would be assuming that ideas and methods that work in 1 context will work in another or what works now will work in the future

Question 49

How does imagining alternatives relate to clear/critical thinking?

Answer 49

Imagining alternatives: clear/critical thinkers explore different ways of doing things by looking at evidence from other situations- have sense of curiosity to find out how others do something that’s different to the way they currently do things and whether it works- this widens their repertoire of ideas and allows them to have a wider range of possible realistic alternatives which can adapted, used and applied to a wide range of situations and contexts

Question 50

How does acknowledging limitations relate to clear/critical thinking?

Answer 50

Acknowledging limitations: clear/critical thinkers aware of limitations of research/proposals/knowledge etc- sceptical about research where the benefits are over-stated- cautious about whether a proposal/idea could work in their unique situation- open to new ideas but only when supported by convincing evidence and reasoning (ideally evidence that it has worked in a very similar situation in practice)

Question 51

What is link between employee skill/performance and training/education?

Answer 51

Practice to enhance employees’ training and education had a positive effect on their skills, including management skills (actions that individuals perform to produce an outcome they value)

Question 52

Apply the 4 clear thinking principles to networking

Answer 52

1) A clear/critical thinker/manager should question the assumption that networking is always appropriate 2) They should consider whether the context encourages networking 3) They should also consider if they are likely to benefit more if they seek alternative ways to network 4) Lastly, they should be conscious of the limitations of their approach they have chosen

Question 53

Why is the innocent drinks case study story a good example of a successful entrepreneurial venture

Answer 53

1) Added value to resources to create goods which customers valued and … bought- reinvested profits to grow business further 2) Focused on staff being able to enjoy work (also supported those who wanted to start their own business venture), treated suppliers fairly and operated sustainably 3) Based in the U.K BUT manage internationally by sourcing materials from around the world, then turning them into goods/products which are then sold throughout Europe

Question 54

Define theory/model

Answer 54

A theory/model represents a complex phenomenon- by focusing on the essential elements and their relationships, allows one to understand that complexity

Question 55

Are theories/models important in management

Answer 55

Some managers ignore theory as each situation is unique However, other’s argue that without a theory it’s hard to make sense of what’s happening in the world around you

Question 56

What is difficult about theory/model in management?

Answer 56

Identifying a theory/model that suggests an acceptable way forward in a given situation/context

Question 57

Give a real life example of where a theory/model was key to the success of a business

Answer 57

Apple- some relate Apple’s success to Steve Job’s theory that: ‘consumers would pay a premium for ease of use, reliability and elegance in computing and other devices and that the best means for delivering these was relatively closed systems, significant vertical integration and tight control over design’ NOTE- how theory represents phenomenon AND then how to achieve it by stating the major elements

Question 58

How many purposes are there of theories/models in management?

Answer 58

3

Question 59

What are the purposes of theories/models in management?

Answer 59

1) Theories suggest ways to manage tasks 2) Theories suggest ways to manage processes 3) Theories suggest how to observe and manage contexts

Question 60

How does management theory/models suggest ways to manage tasks?

Answer 60

Through the model of the tasks of managing: Planning- setting objectives for work or project- the goals/targets, how success is judged (measures of performance)- to ensure resources will be available when needed Organising- deciding how to divide and coordinate work- allocating responsibilities and resources- good communication between different people/departments with responsibilities etc Acting/leading- where plans are turned into physical or mental action in order to transform resources into a product/good or service- leaders/managers make decisions and influence, motivate, communicate with others and manage teamwork Controlling- monitoring progress towards objective- comparing actual results with targets- also reflecting and learning- adapting plans accordingly

Question 61

How does management theory/models suggest ways to manage processes?

Answer 61

Through the model of the process of managing: Influencing and motivating- persuading others to act in a particular way and to secure their willing commitment Team working- ensuring that teams work together well and bring benefit to team members and the organisation Communicating- ensuring rapid and accurate communication when needed Making decisions- reaching decisions that add value and that others will accept

Question 62

Give a real life example of 2 successful managers with contrasting ideas/models of managing/motivating staff

Answer 62

1) Steve Jobs (Apple founder)- insisted that giving individual responsibility for every task however large or small was key in managing/motivating staff- at Apple person who able is exactly responsible for a task is accountable if anything goes wrong (Directly Responsible Individual- DRI) 2) John Timpson (owner of Timpson- the shoe repair and key cutting chain)- believes the people who actually do the key cutting and re-heeling in store are the most important people in the company and … they should be rewarded with a bonus based on shop takings in order to create a keenness to serve and work to help customers to maintain consumer loyalty

Question 63

How does management theory/models suggest ways to observe and manage contexts?

Answer 63

Through the model of internal and external contexts: 1) Observing competition- analysing how competitors may affect the enterprise/organisation (external) 2) Scanning general environment- how demographic (population) change is affecting staff and customers- e.g. changes in ages or ethnicity (external) 3) Shaping the organisation- change/adapt the organisation/enterprise to satisfy a major customer’s needs- organisation could be adapted by changing roles, teams or control systems within the enterprise (internal)