March Test Flashcards
(42 cards)
1
Q
What is organisational culture?
A
- the way in which things are done
- dress code
- manner in which employees address each other
- it is also influenced by the culture of the employees
2
Q
What are Organisational resources?
A
-refer to resources that a business enterprise uses to make it operate efficiently
3
Q
Give examples of Organisational resources?
A
- Capital resources
- human resources
- natural resources
- entrepreneurial resources
4
Q
What is another name given for Organisational resources?
A
Four factors of production
5
Q
What is a Capital Resource?
A
- Money that is invested ina business so that the business can aquire capital goods
- land, buldings and equipment
6
Q
What is a Human Resource?
A
The work people do to produce products and services, called labour
7
Q
What is a Natural Resource?
A
- All natural assets used to produce products and services
- water, coal and gold
8
Q
What is Entrepreneurial resources?
A
People that combine the other 3 resources (Capital, Human and Natural) in such a way that the business becomes operational and profitable
9
Q
Name the different types of Remuneration for each resource:
A
- Capital - Interest
- Human - Salaries and wages
- Natural - Rent
- Entrepreneurial - Profit
10
Q
How are managers and leaders different?
A
Manager
- specific position
- can only become a manager if there is a vacant position in company
- gives instructions to subordinates and checks that tasks are done
- has authority to tell subordinates what to do
Leader
- does not necessarily hold a specific position
- emerges when there is a need, leadership is a characteristic
- normally part of a team and helps perform tasks
- ususally inspires team members to perform
11
Q
What is organisational structure?
A
- the way in which employees in a business are organised
- explains the responsibility and displays the authority of each manager
- traditional business structure was in a form of a pyramid, indicating the different levels of power in a business
- current trend is to form wider structures where more power is given to subordinates
12
Q
What are the 8 functions and activities of the business?
A
- (triple P; F; M; A; G; H)
- -Purchasing
- -Production
- -Public relations
- -Financial
- -General management
- -Marketing
- -Human resources
- -Administration
13
Q
What is the role of General Management?
A
Responsible to make sure that all business functions operate efficiently
14
Q
What are the different levels of management?
A
- Top level management
- Middle level management
- Lower level management
15
Q
Explain the roles and responsibilities of Top Level Management?
A
- look at the business and its activities as a whole
- eg: Chief Executive Officer (CEO)
Roles and Responsibilites:
- Plans for the future of the enterprise
- Monitors the business’s relationship with external environment
- Manages change in the business environment
- Makes strategic decisions
16
Q
Explain the roles and responsibilities of Middlle Level Management?
A
- have specialised knowledge of the activities that must be perfomred in the department under their management
eg: heads of different departments
Roles and Responsibilites:
- serves as the link between top and lower management
- implements plans made by top level management, by making tactical decisions
- manages each department
- schieves goals and objectives set for each department
- aquires resources needed in a departement
17
Q
Explain the roles and responsibilities of Lower Level Management?
A
- lowest level of management
- another name = first line / supervisory management
- possess technical knowledge, have ability to guide and motivate workers
eg: foremen and team leaders
Roles and Responsibilites:
- serves as the link between the levels of different departments and the workers on the ground level
- carries out tactical decisions made by middle management
- makes routine type decisions
- responsible for achieving daily targets
- executes instructions given by middle management
18
Q
Name 7 management tasks
A
- Planning
- Organising
- Activating
- Leading
- Directing
- Controlling
- Risk Management
19
Q
What is Planning (task)?
A
- The process of setting goals and making plans to achieve these goals
- Done by managers on all three levels
- Top management plans for long term future of an enterprise
- Middle level management plans for the medium term
- Middle level management plans how each deparment will achieve its goals
- Lower level management plans for the short term
- Lower level management plans for the achievement of operational targets on a daily basis
20
Q
What is Organising (task)?
A
- The way in which employees in an enterprise are arranged to carry out plans , responsibilities and duties
- Describes what tasks employees are responsible for, who employees report to, whom orders must be taken from
- Employees in an enterprise can be organised in different organisational structures
21
Q
What is Activating (task)?
A
Means to start doing the work that will enable an enterprise to achieve its goals
22
Q
What is Leading (task)?
A
- Means to guide employees through their duities and responsibilities
- Involves inspiring employees to achieve the business’s goals
23
Q
What is Directing (task)?
A
- Ensuring that a business runs smoothly
- Involves establishment of a productive working climate, supervising and making sure that effective communication channels are in place
24
Q
What is Controlling (task)?
A
- Making sure that tasks are carried out as planned
- Involves comparing actual results with the goals set out by management
- Corrective measures must be taken if there is a difference between actual results and the goals the business set out to achieve
25
What is Risk Management (task)?
* Risk management is not classified as a traditional management task, but it remains an important management responsibility
* Identifying risks and finding strategies to deal with risks
* Financing the risk by working possible losses into the budget
* **_Following steps are involved:_**
* Identifying threats/risks from all business environments
* Determining the extent to which the business is exposed to these threats
* Evaluating the risk
* Controlling the risk by minimising losses
26
Name the different types of organisational structures
* Line Organisational structure
* Functional Organisational structure
* Line and staff organisational structure
* Project or matrix organisational structure
27
Explain a Line Organisational Structure
* Oldest org. structure
* Most suitable for small business enterprises
* Allows fast decision making (because managers hold the authority to make decisions without having to consult with other employees)
* Authority flows from the most senior person in the business in a downward line to employees on the lowest level of an enterprise
28
Explain a Functional Organisational Structure
* Similar to line org. structure, but provides for larger businesses
* same type of work is grouped together in functional departements
* each department is managed by a manager who is an expert in his/her field
* each department performs its activity for the whole business (i.e. marketing department handles marketing for the whole business)
29
Explain a Line and Staff Organisational Structure
* The line organisational structure forms the basis of the line and staff org. structure
* Experts act as advisors for managers
* Managers are known as line managers, while the experts or advisors are known as staff officers
* Advisors don't have any authority over employees (which menas that they cannot give instructsions to emplyoyees
* Allows for quick decision making and a quick flow of authority
* Suitable for large businesses
30
Explain a Project or Matrix Organisational Structure
* Team members from different departments come together to complete a project
* Project teams are headed by project managers
* Once the project is completed, teams dissolve and return to their departments
* This is temporary structure
* While team members are working on a project, orders are taken from the project manager, as well as the manager from the departments that employees are from
* Conflict of loyalty can arise between project managers and functional managers
31
Name the responsibilities of management and the alignment between management levels
**_Top Management_**
* Plans for business in its entirety sets the direction of a business
* **Long** term planning, making **strategic** decisions, managing **change** and **risk**
**_Middle Management_**
* Serves as a link between top and lower level management; carries out decisions made by top level management
* **Medium** term planning; making **tactical** decisions; managing each **department**
**_Lower Management_**
* **Carries out tactical decisions** made by middle level management
* **Short** term planning; making **operational** decisions; setting **daily** performance targets
32
Give the responsibilities of the Administration Business function
* Collecting data and information
* Handling data and information
* Managing information
* Office practice
* Information technology
33
Give the responsibilities of the Financing Business function
* to plan how money will be spent
* to get financing if necessary
* to make money available so that the business can operate efficiently
* to follow up on outstanding moeny
* to pay the business accounts
34
Give the responsibilities of the Purchasing Business function
* to purchase everything a business needs to carry out its activities
* managing stock to ensure sufficient levels of stock to carry out business operations
* finding the best suppliers
* following up on orders that were placed with suppliers
35
Give the responsibilities of the Public Relations Business function
* aims to create a good image for a business
36
List the role and importance (main responsibilities) of the business functions
* **_Purchasing function_**
Responsible for finding the most suitable suppliers and purchasing raw materials/stock at the right time, the right price, of the right quality and in the right quantities
* **_Production function_**
Responsible for converting raw materials into final products
* **_Public relations function_**
Responsible for creating a favourable image of the business enterprise
* **_General Management function_**
Responsible for the overall management of the business enterprise through performing the four basic management activities: planning, organising, leading and control
* **_Marketing function_**
Responsible for recruiting, selecting and appointing new employees
* **_Human resources function_**
Responsible for recruiting, selecting and appointing new employees
* **_Administration function_**
Responsible for collecting, storing and distributing business information so that the information can be used for analysing trends and making decisions
* **_Financial function_**
Responsible for financing all business activities by ensuring that money is available to run the business efficiently through careful financial planning
37
How will resources be applied in a SMALL business?
(compare to large business)
**_Human Resources_**
* Very few employees
* Not unusual for a business owner to do everything
* Tasks, e.g. cleaning or recruitment may be outsourced
**_Physical Resources_**
* Because business operations in a micro-enterprise are usually performed on a small scale, few physical resources (e.g. office building) are needed
**_Financial resources_**
* Difficult for small enterprises to obtain financing
**_IT resources_**
* Needs few information resources, eg: computer, printer and telephone
* Does not need complicated telephone systems or network
38
How will resources be applied in a LARGE business?
(compare to large business)
**_Human Resources_**
* Many employees
* Most activities can be done by in-house employees
**_Physical Resources_**
* Business operations are performed on a large scale
* Depends greatly on physical resources such as offive buildings and other forms of infrastructure
**_Financial resources_**
* Larger businesses have greater access to financing via shareholders
**_IT resources_**
* Needs computers and telephones for most staff members
* Needs to have a network where information can be stored on a server
39
What is the definition of a Public Organisation?
An organisation that is owned and managed by government
40
What is the definition of a Private Organisation?
An organisation that is owned and managed by private persons
41
Who manages a Public organisation?
It is managed by government
42
Who manages a Private organisation?
Management depends on the type of business that was formed by the owners, for example:
* A sole proprietorship is managed by the owner
* A partnerhsip is managed by partners
* A CC is managed by members
* Companies are managed by directors
