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Business, Technology, and Finance > Managing a Business > Flashcards

Managing a Business Flashcards

1
Q

Define management

A

Getting things done through other people

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2
Q

What are the four elements of management?

A

CLOP

  1. Controlling
  2. Leading
  3. Organising
  4. Planning
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3
Q

Define the organising element of management

A
  1. Allocating RESOURCES to meet plans

2. Allocating PROCESSES to meet plans

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4
Q

Define the controlling element of management

A

Corrective action if direction of business differs to expectations

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5
Q

Define the leading element of management

A
  1. How managers exercise authority

2. Influencing people so they contribute to organisational objectives

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6
Q

Define the planning element of management

A
  1. Looking forwards to set the direction of the business

2. Setting strategies

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7
Q

What are management’s roles? (3)

A
  1. Informational
  2. Interpersonal
  3. Decisional
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8
Q

What is management’s key role?

A

Decisional

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9
Q

Define management’s informational role

A
  1. COLLECT information

2. DISSEMINATE information

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10
Q

Define management’s interpersonal role

A
  1. Acting as an effective LEADER

2. Acting as an effective COORDINATOR

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11
Q

Define management’s decisional role

A

Making effective decisions about:

  1. Resource allocation
  2. Handling disturbances
  3. Negotiating
  4. Problem solving
  5. Entrepreneurship
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12
Q

Define power

A

The ability to get things done

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13
Q

What are the forms of power? (6)

A
  1. Reward
  2. Coercive
  3. Legitimate
  4. Negative
  5. Expert
  6. Referent
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14
Q

Define reward power

A

One person’s ability to reward another person for carrying out orders or meeting other requirements

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15
Q

Define coercive power

A
  1. One person’s ability to punish another for not meeting requirements
  2. Negative side of reward power
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16
Q

Define expert power

A

Based on the perception/belief that a person has some relevant expertise or special knowledge that others do not

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17
Q

Define referent power

A

One person’s desire to identify with or imitate another

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18
Q

Define legitimate power

A

Power derived from being in a position of authority within the organization

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19
Q

Define negative power

A

The ability to disrupt operations

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20
Q

Define authority

A
  1. The right to do something or the right to request and
    expect another person to do something
  2. Allows individuals to make decisions
  3. Allows individuals to assign tasks
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21
Q

Define responsibility

A

The obligation a person has to fulfil a task assigned to them

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22
Q

Define accountability

A

A person’s liability to be called to account for the fulfilment of a task

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23
Q

Can authority be delegated to subordinates?

A

Yes

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24
Q

Can responsibility be delegated to subordinates?

A

Yes

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25
Q

Can accountability be delegated to subordinates?

A

No

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26
Q

Define delegation

A

Giving a subordinate responsibility and authority to carry out a given task, while the manager retains overall accountability

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27
Q

What are the benefits of delegation? (8)

A

QR-PACIFISM

  1. Quicker decisions
  2. Relieves senior staff members of less important activities
  3. Performance Appraisal
  4. Career development
  5. Interesting for the subordinate
  6. Flexibility
  7. Ideas and Skills are brought together
  8. Motivation
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28
Q

What are the risks of delegation? (7)

A
  1. Over-supervision can waste time and is de-motivating
  2. Under-supervision → inferior product
  3. Passing the buck
  4. Manager only delegates boring work
  5. Manager delegates impossible tasks
  6. Manager refuses to delegate enough
  7. Inadequate training
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29
Q

What are the types of manager? (4)

A
  1. Line
  2. Staff
  3. Functional
  4. Project
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30
Q

Define line manager

A

Direct authority over subordinates

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31
Q

Define staff manager

A

Authority in advisory capacity

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32
Q

Define functional manager

A
  1. Hybrid of line and staff managers

2. Has authority in certain circumstances to direct, design or control activities or procedures in another department

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33
Q

Define project manager

A

Temporary team manager

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34
Q

What is the management hierarchy?

A
  1. Top management
  2. Middle management
  3. First-line management
  4. Direct operation staff
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35
Q

Define top management

A

Manage the whole business

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36
Q

Define middle management

A

Manage other managers of the business

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37
Q

Define first-line management

A

Manage operational parts of the business

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38
Q

Define direct operation staff

A
  1. Supervisors and operational staff

2. Delivering the product/service

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39
Q

Define culture

A

The common assumptions, values and beliefs that people share that become ‘the way we do things around here’

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40
Q

Define a flexible culture

A

A business that allows change and initiative

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41
Q

Define a controlled culture

A

A business that seeks stability and order

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42
Q

Define an inward-looking culture

A

A business that focuses on internal operations

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43
Q

Define an outward-looking culture

A

A business that adapts to external change and opportunities

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44
Q

What are the features of internal process culture?

A
  1. Controlled
  2. Inward-looking
  3. Rigid and stable organisations
  4. Driven by procedures
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45
Q

What are the features of rational goal culture?

A
  1. Controlled
  2. Outward-looking
  3. Procedurally-driven
  4. Adapts to external conditions
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46
Q

What are the features of opens system culture?

A
  1. Flexible
  2. Outward-looking
  3. Adapts to constantly changing external environment
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47
Q

What are the features of human relations culture?

A
  1. Flexible

2. Inward-looking

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48
Q

Define organisational behaviour

A
  1. The understanding of individual behaviour, group behaviour, and patterns of structure in order to improve organizational efficiency and performance
  2. Understanding why people do what they do and the effect it has on the business and other people.
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49
Q

What are the overt parts of the business? (5)

A
  1. Rules/regulations
  2. Products
  3. Physical assets
  4. Financial
  5. Resources
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50
Q

What are the covert parts of the business? (4)

A
  1. Attitudes
  2. Personalities
  3. Conflict
  4. Informal communication
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51
Q

What are the key functions of a business? (6)

A
  1. Finance
  2. Human resource management
  3. Marketing
  4. Procurement
  5. Research and development
  6. Operations
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52
Q

Define human resource management

A

The creation, development and maintenance of an effective workforce, matching the requirements of the organisation and responding to the environment

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53
Q

What are the functions of human resource management? (11)

A
  1. Communication/counselling
  2. Discipline, demotion and dismissal
  3. Job analysis and design
  4. Meeting legal and ethical standards
  5. Performance appraisal
  6. Personnel planning and control
  7. Personnel records
  8. Recruitment and selection
  9. Remuneration and compensation schemes
  10. Training and development
  11. Workforce diversity issues
54
Q

What are the hard approaches to human resource management? (7)

A
  1. Emphasis on resource element of human resource management
  2. Goal is to meet organisational objectives
  3. Dictatorial/controlling business culture
  4. Management style is top down and imposed
  5. Training is focused on meeting the current needs of the organisation
  6. Centralised structure
  7. Short-term perspective
55
Q

What are the soft approaches to human resource management?

A
  1. Emphasis on human element of human resource management
  2. Goal is to create human assets
  3. Flexibility culture
  4. Management style is participative
  5. Training is focused on personal and career development
  6. Devolved, delegation, autonomy
  7. Long-term perspective
56
Q

Define the Harvard 4 Cs model?

A

A model that can be used to evaluate the effectiveness of human resource management

57
Q

What are the 4Cs in the Harvard 4 Cs model?

A
  1. Commitment
  2. Competence
  3. Congruence
  4. Cost-effectiveness
58
Q

Define commitment according to the Harvard 4 Cs model

A

Assess employees’ motivation, loyalty and job satisfaction

59
Q

Define competence according to the Harvard 4 Cs model

A

Look at skills, abilities and potential

60
Q

Define congruence according to the Harvard 4 Cs model

A

Do management and employees share the same vision and goals?

61
Q

Define cost-effectiveness according to the Harvard 4 Cs model

A

Operational efficiency and productivity

62
Q

What is the hypothesis behind Taylor’s scientific management approach?

A

That people are similar and can be treated in a standardised fashion

63
Q

What does Taylor’s scientific management approach consist of?

A

TITES

  1. Assumptions that everyone can be TREATED in the same way
  2. Assumptions that people respond as INDIVIDUALS
  3. Workers do as they are TOLD
  4. Assumptions that people are mainly concerned with ECONOMIC GAIN
  5. SCIENTIFIC selection and development of staff
64
Q

What are the two theories developed by Douglas McGregor?

A
  1. Theory X

2. Theory Y

65
Q

Define McGregor’s Theory X

A
  1. People dislike work and responsibility and will try to avoid both
  2. They therefore need to be coerced.
  3. Management approach is dictatorial
66
Q

Define McGregor’s Theory Y

A
  1. Physical and mental effort at work is as natural as play or rest
  2. Such people have real potential
  3. The role of management is to help them to realise it
67
Q

What does Abraham Maslow’s Hierarchy of Needs theory suggest?

A
  1. That people are motivated by a desire to satisfy unfulfilled needs
  2. Once needs are satisfied, they no longer motivate (unless threatened)
  3. The individual concerned then moves up to the next level of needs
68
Q

What is the hierarchy in Maslow’s Hierarchy of Needs?

A
  1. Self-fulfilment needs
  2. Ego needs
  3. Social needs
  4. Safety needs
  5. Basic needs
69
Q

What are Frederick Herzberg’s two main arguments?

A
  1. That employee satisfaction came from hygiene factors, related to the context of a job, that are within the control of the company as a whole
  2. That motivation came from motivating factors, related to the content of a job, that are within the control of a manager
70
Q

What are hygiene factors according to Frederick Herzberg?

A
  1. Company policies
  2. Working conditions
  3. Relationship with other staff
  4. Supervision
  5. Salary
71
Q

What are motivating factors according to Frederick Herzberg?

A
  1. Sense of achievement
  2. Recognition
  3. Responsibility
  4. Challenging work
  5. The job itself
72
Q

What are the characteristics of a group?

A
  1. A common sense of identity
  2. A common aim or purpose
  3. Behavioural norms
  4. Communication between members
  5. A leader
73
Q

Why are groups important?

A
  1. To bring together different skills
  2. To problem solve
  3. To plan/organise
  4. To coordinate between functions and departments
74
Q

What are Bruce Tuckman’s stages of development?

A
  1. Forming
  2. Storming
  3. Norming
  4. Performing
75
Q

Define performing according to Tuckman’s stages of development

A

Operating to full potential

76
Q

Define norming according to Tuckman’s stages of development

A

Group norms emerge

77
Q

Define storming according to Tuckman’s stages of development

A

Members compete for group roles

78
Q

Define forming according to Tuckman’s stages of development

A

Initially a collection of individuals

79
Q

What are the group roles defined by Meredith Belbin?

A
  1. The leader
  2. The shaper
  3. The plant
  4. The evaluator
  5. The resource-investigator
  6. The company worker
  7. The team worker
  8. The finisher
80
Q

Define the leader according to Belbin

A

Coordinates the group

81
Q

Define the shaper according to Belbin

A

Promotes activity

82
Q

Define the plant according to Belbin

A

Thoughtful and thought-provoking

83
Q

Define the evaluator according to Belbin

A

Criticises ideas

84
Q

Define the resource-investigator according to Belbin

A

Adds to others’ ideas

85
Q

Define the company worker according to Belbin

A

Administrator and scheduler

86
Q

Define the team worker according to Belbin

A

Defuses potential conflicts

87
Q

Define the finisher according to Belbin

A

Progress chaser

88
Q

How should a group be structured according to Belbin?

A
  1. One leader, shaper, and finisher
  2. Equal numbers of plants and evaluators
  3. Equal numbers of company workers and team workers
89
Q

What are the four leadership styles identified by Rensis Likert?

A
  1. Exploitative authoritative
  2. Benevolent authoritative
  3. Consultative
  4. Participative
90
Q

Define an exploitative authoritative leadership style

A
  1. Decisions imposed
  2. Motivated by threats
  3. Centralised decision making
  4. Rare communication between boss and subordinates
  5. Act as individuals
91
Q

Define a participative leadership style

A
  1. Complete trust and discussion
  2. Motivated by rewards
  3. Goals agreed
  4. High degree of delegation
  5. Frequent communication
  6. Act as a team
92
Q

What does Likert identify as the characteristics of effective managers?

A
  1. Employee-centred
  2. Set high standards but are flexible in terms of methods
  3. Natural delegators with high levels of trust
  4. Encourage participative management
93
Q

Define marketing

A

The management process which identifies, anticipates, and supplies customer requirements efficiently and profitably

94
Q

What is a marketing oriented business?

A
  1. A business that focuses on the needs of potential customers as the basis for its operations
  2. Its success is dependent on developing and marketing products that satisfy those needs
95
Q

What is a sales oriented business?

A
  1. A business that focuses on selling more of the products or services already available
  2. There is no attempt to identify customer needs nor create products or services that will satisfy them
96
Q

What is a production oriented business?

A
  1. A business that focuses on making as many units as possible
  2. Customer needs are secondary to increasing output
97
Q

What is a product oriented business?

A

A business that focuses on creating a highly sophisticated and expensive product beyond the needs of customers

98
Q

Define market segmentation

A

The division of the market into homogeneous groups of potential customers who may be treated similarly for marketing purposes

99
Q

Define consumer markets

A

Products and services bought for the use of individuals and their families

100
Q

What are the features of fast-moving consumer goods?

A
  1. Low value

2. High volume

101
Q

What are the features of consumer durables?

A
  1. High value

2. Low volume

102
Q

Define industrial markets

A

Products and services bought for the use of companies

103
Q

What are the features of industrial marketing?

A
  1. Small number of large customers
  2. Large purchase size
  3. Expert buyers who make rational decisions based on technical and detailed specifications
  4. High bargaining power
  5. Complex negotiation
104
Q

Define marketing mix

A

The set of controllable marketing varieties that a firm blends to produce the response it wants in the target market

105
Q

What industry can the 4 Ps model be applied to?

A

Product industry

106
Q

What industry can the 7 Ps model be applied to?

A

Service industry

107
Q

What are the 4 Ps?

A
  1. Product
  2. Promotion
  3. Place
  4. Price
108
Q

What are the 7 Ps?

A
  1. Product
  2. Promotion
  3. Place
  4. Price
  5. People
  6. Process
  7. Physical evidence
109
Q

What are the main components of the product?

A
  1. Basic product
  2. Actual product
  3. Augmented product
110
Q

Define basic product

A

The core benefits the product will provide

111
Q

Define actual product

A

The product’s features such as branding, packaging, labelling

112
Q

Define augmented product

A

Goods or services that provide additional value

113
Q

What are the key factors that need to be considered when selecting a pricing strategy?

A
  1. Costs
  2. Customers
  3. Competition
  4. Corporate objectives
114
Q

What does the place element of the marketing mix consider?

A
  1. Length
  2. Breadth
  3. Complexity
    of distribution channels
115
Q

What are the two types of distribution channels?

A
  1. Direct selling

2. Indirect selling

116
Q

What are the key factors to consider when deciding between direct and indirect selling distribution channels?

A
  1. If the business has the necessary resources and competencies themselves
  2. What expertise do middlemen provide and what cost?
117
Q

Define promotion

A

Promotion aims to create awareness and interest for products and services and to persuade consumers to purchase

118
Q

What are the stages of promotion?

A
  1. Awareness
  2. Interest
  3. Desire
  4. Action
119
Q

Define push promotion

A

Ensuring that products or services are available for purchase where and when the ultimate customer requires them

120
Q

Define pull promotion

A

Marketing variables set to persuade ultimate customers to purchase (e.g. advert on TV in or trade journal)

121
Q

What are the main forms of promotion

A
  1. Advertising
  2. Sales promotion
  3. Public relations
  4. Personal selling
122
Q

Define operations

A

The transformational process of changing inputs into outputs in order to add value

123
Q

Define operations management

A

Involves the design, creation, implementation, and control of operations processes

124
Q

What are the 4 Vs?

A
  1. Volume
  2. Variety
  3. Variation in demand
  4. Visibility
125
Q

Define pure research

A

Intended to gain new scientific or technical understanding although there is no commercial viewpoint in mind

126
Q

Define applied research

A

Research aimed at achieving an obvious commercial or practical viewpoint

127
Q

Define development

A

Takes existing scientific or technical knowledge and uses it to produce new products or systems intended for commercial production

128
Q

Define procurement

A

The acquisition of goods and services

129
Q

What are the four main factors to consider for procurement?

A
  1. Quantity
  2. Quality
  3. Price
  4. Lead times
130
Q

What are the considerations that should be made when managing the IT function?

A
  1. Plan inhouse IT activities
  2. Consider outsourcing or external help
  3. Be aware of IT possibilities
  4. Innovation and investment in service development
131
Q

What is the role of IT service delivery?

A
  1. Data extraction and reports
  2. Capacity monitoring
  3. Customer billing
  4. Budgeting
132
Q

What is the role of IT service support?

A
  1. IT systems maintenance
  2. IT security controls
  3. Prevention of IT problems
  4. Investigation of IT problems

Business, Technology, and Finance (8 decks)

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