Managing a business Flashcards
4 management roles
Planning - making plans to achieve goals
Organising - organise the resources they need to achieve the goals
Controlling - corrective action if direction of business differs from expectations
Leading - Making sure people do their tasks
Types of power
Reward - ability to give rewards
Coercive - Ability to punish
Referent - Having charisma so people do what you want
Expert - having power because of your expert knowledge
Legitimate - Power from their title
Negative - power to disrupt e.g trade unions
Types of manager
line - direct authority over subordinates
Staff - authority to advise managers in other departments
Functional - authority to direct/ manage other managers
Project - temporary team manager
Types of business culture
Human relations culture - flexible - inward looking
Open systems culture (looking to meet the opportunities it presents) - flexible - outward looking
Rational goal culture (structured and able to deal with the outward environment) - controlled - outward looking
Internal process culture (desire to make internal environment stable and controlled) - controlled - inward looking
5 Key functions of a business
Finance HR management Marketing IT operations
Hard vs Soft human resources management
Hard - recognises people as costs
Soft - recognises people as assets - get the most out of people
4 C’s for evaluating effectiveness of HRM
Commitment - employees motivation,loyalty ect
Competence - skills, abilities and potential
Congruence - do management and employees share the same goals?
Cost - effectiveness - Operational efficiency and productivity
Maslow’s hierarchy of needs (bottom to top)
Basic needs (salary), safety needs (security/ permanent contract), social needs (friendships), Ego needs (job title), self-fulfilment needs (valued as an employee)
Tuckman’s group stages development
Forming - unsure of roles and responsibilities
Storming - compete for group roles, conflict expected
Norming - operating as a cohesive team
Performing - full potential, highly productive
Belbin’s group roles
The leader - co-ordinates the group
The shaper - promotes activity
The plant - team analyser
The monitor/evaluator - criticises ideas
The resource-investigator - network of contacts
The company worker - administrator and scheduler
The team worker - diffuses potential conflicts
The finisher - progress chaser
The specialist/ expert
Marketing concepts/ orientations
Marketing - needs of potential customers as the basis of operations
Sales - main purpose is to sell more products
Production - to make as many units as possible
Product - becomes obsessed with developing a highly sophisticated and expensive product
Consumers markets
Business to customer sales
- fast-moving consumer goods (low value, high volume)
- consumer durables (high value, low volume)
- services
Industrial markets
Business to business sales
- raw materials
- components
- capital goods
- supplies
- services
4P’s in the marketing mix
Product - what the customer is buying/experiencing
Promotion - how awareness raised of the goods/ service
Place - how the goods/ services are distributed
Price - price of the item
Operational 4 V’s
Volume - how much stuff they will make
Variety - how many diff. items they will make
Variation in demand - are there peaks and troughs throughout the year?
Visibility - how much of the operation can the customer see?
