Term 1 Flashcards
(125 cards)
1
Q
Functions of management
A
Planning, organising, leading, controlling
2
Q
Planning
A
process of setting organisational objectives and determining actions to accomplish them
3
Q
organising
A
process of assigning tasks, allocating resources and arranging activities
4
Q
leading
A
process of arousing employee enthusiasm to direct their efforts into fulfilling plans
5
Q
controlling
A
process of measuring work performance, comparing results with objectives, and taking corrective action
6
Q
Top managers
A
take responsibility for the whole/significant part of the organisation
7
Q
Middle managers
A
take charge of large divisions consisting of several smaller work units
8
Q
First-line Managers
A
directly manage employees
-responsible for production of goods and services
9
Q
Project managers
A
co-ordinate complex projects with specific deadlines and often a complex and diverse mix of people
10
Q
Managerial skills
A
conceptual (Problem solve/think)
human (co-operation)
technical (expertize and specialty)
11
Q
The general environment
A
Economic, socio-cultural, political, technological, natural
12
Q
The specific environment
A
customers, suppliers, competitors, regulators
13
Q
The internal environment
A
Employees, management, corporate culture
14
Q
Stakeholders
A
anyone who impacts business + vice versa
15
Q
Scenario planning
A
identify alternative future scenarios and making plans to deal with them, anticipating external environment
16
Q
Strategic planning
A
Where organisation wants to be in the future
Long term planning
Top level management
3+ years
17
Q
Tactical planning
A
What major divisions and departments intent to achieve
Mid term planning
Functional management
1-2 years
18
Q
Operational planning
A
Specific results expected from departments, work groups or individuals
Short term planning
Supervisory management
Up to 1 year
19
Q
Planning process steps
A
Mission - what’s our purpose?
Goals - Where are we heading?
Plans - How are we going to get there?
Goal attainment - organisational efficiency and effectiveness
20
Q
Scenario planning benefits
A
Focus and flexibility- flexible to changes but keeps focus clear
Action orientation- state of readiness
21
Q
Action orientations
A
Results orientation- performance
Priority orientation- importance level
Advantage orientation- efficient resource allocation
Change orientation- anticipation of problems and opportunities
22
Q
Control process steps
A
Establish performance standards
Measure actual performance
Compare performance to standards
Take corrective action, if necessary
23
Q
Output standards
A
measure performance in terms of quantity, quality, cost or time
24
Q
Input standards
A
Measure work efforts that go into a performance task- productivity, punctuality
25
Feedforward
work inputs- ensures directions and resources are right before work begins
26
Concurrent
Work throughputs- monitor workplace operations and allow corrective action before task completion
27
Feedback
Work outputs- ensure final results meet desired standard
28
Internal control
Self discipline and self control
29
External control
supervision and administrative systems (rules/procedures)
30
Organisation
-Deliberate structure
-Common Purpose
-People
31
Management
the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources
32
Effectiveness
Measure of task or goal accomplishment
33
Efficiency
A measure of how well or how productively resources are used to achieve a goal
34
Functional Managers
Responsible for departments that perform specific tasks
35
General Managers
responsible for a self contained division, and for all the functional departments within it.
36
Conceptual
Most important skill for top managers - seeing organisation as a whole and relationship between parts 'big picture'
37
technical
Most important skill for first line managers - expertise to perform a special task
38
Human
Most important skill at all levels of management - ability to worth well with other people
39
Risk Taking Propensity
Entrepreneur traits:
- Attempt to minimise/Manage risk
- Moderate, calculated risk-takers
40
Integrity
Entrepreneur traits:
- High Standards
- Seeking these high standards from employees and business process
41
Entrepreneur traits:
- High Standards
- Seeking these high standards from employees and business process
Entrepreneur traits:
- Taking personal responsibility
- Desire to make things happen - 'fire in the belly', 'passion', 'high energy'
42
Independence
Entrepreneur traits:
-Take responsibility for their own decisions and achievements
-Taking responsibility to use one's own judgement
-Difficulty delegating responsibility
43
Internal Locus of Control
Entrepreneur traits:
-Believe that their lives are in their own control
-Self confidence or ability to tolerate ambiguity (Uncertainty)
44
Networker
Entrepreneur traits:
-Engage actively with a large number or people
-Used to organise and co-ordinate resources, gain access to information, and venture start-up and development
45
Social Forces
Aspects that influence the relationships among people
46
Political forces
Influence of political and legal institutions
47
Economic forces
Availability, production and distribution of resources in society
48
Classical Perspective
Ideas surrounding increasing worker efficiency by treating employees like cogs in a machine
49
Scientific Management
Subsection of classical perspective
-Treating workers like cogs in a machine
-Careful selection, training and supervisory support to increase efficiency and productivity
-Eliminate wasted motion during work
50
Bureaucratic organisation
Subsection of classical perspective
-Emphasis for organisations to operate in a rational manner
51
Administrative
Under Classical Perspective
Focuses on principles used by managers to co-ordinate the resources and activities of the organisation
- Planning (foresight)
- Organising (Organisation)
- Leading (commanding and Co-ordinating)
- Controlling (control)
52
Behavioural (humanistic) Perspective
-Focusing on human behaviour, needs, attitudes, social interactions and group processes.
-Emphasis on employee needs, job satisfaction and empowering people
-Motivating and developing employees to use their full potential
53
Quantitative Perspective
Applications of maths, stats and other quantitative techniques to management decision making and problem solving. Designed to get managers to right relevant information in a pool of large volumes of data.
54
contemporary perspective
Recognises ever changing social, political and economic forces and that no one model or perspective fits all organisations
55
Systems Thinking
Under Contemporary Perspective
where individual contributions are integrated for a common purpose
1. Inputs
2. Transformations
3. Outputs
4. Feedback from environment
56
contingency viewpoint
Under contemporary perspective
Appropriate managerial action depends on the situation, use different principles depending on the situation
57
programmed decisions
Decisions made in routine, repetitive, well-structured situations. Often for lower managers
58
Non-programmed decisions
Decisions made in response to situations that are unique, largely instructed and have important consequences. Involves uncertainty and risk. Often for top managers
59
Administrative Decision model
How managers actually make decisions
60
Classical Model: Rational decision making
Making decisions in the best economic interest of the organisation in which managers have all relevant information - in reality, unattainable by real people in real organisations
61
bounded ratonality
Under Administrative decision model
Managers ability to be rational is limited by factors such as cognitive and time constraints
62
Satisficing
Under Administrative decision model
Managers seek alternatives only until they find one that looks satisfactory, rather than seek the optimal decision
63
intuition
Quick apprehension of situation based on practice and experience
64
Decision Making Process
1. Find and define the problem
2. Generate and evaluate alternative solutions
3. Select preferred solution and conducts ethics double-check
4. Implement the solution
5. Evaluate results
65
SMART goals
Specific, Measurable, Attainable, Relevant, Timely
66
Limitations of planning
-can create a false sense of certainty
-may cause rigidity in a turbulent environment
-can get in the way of intuition and creativity
67
SWOT analysis
strengths, weaknesses, opportunities, threats
68
Porter's Competitive Forces
Help to determine an organisations position with its competitors/industry and to find a competitive advantage.
Competitive Rivalry:
-Threat of new entrants
-Baragaining power of suppliers
-Barganing Power of buyers
-Threat of substitute products
69
Porter's Strategies
- Differentiation: distinguish products/service from industry
- Cost leadership: seek efficiencies in facilities, cost reductions
- Focus (cost or differentiation): Concentrated on a specific regional market or buyer group
70
Management by exception
a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards
71
Balanced Scorecard
Balancing traditional financial measures with operational measures
- Financial goals and measures
- Internal business processes
- Learning and Growth
- Customer Perceptions
72
Operations Management
The management of systems or processes that turn inputs into outputs - adds value to inputs and provides one or more outputs
73
Manufacturing Organisations
- Produce physical goods
- goods can be stored for later consumption
- production process removed from customer
- commonly have standardised outputs
74
Service Organisations
- produce non-physical good
- sumultaneous production and consumption
- customer participates in production process
commonly have customised outputs
75
Product and services strategy options
Differentiation, Rapid Response, Low cost
76
Productivity
Output/Inputs
77
process layout
- All similar function machines grouped
- Best for low-volume, high variety production
- organise resources (employees and equipment) around the process
78
Product Layout
- Seeks the best personnel and machine utilisation in High volume, low variety production
- Standardised products
79
cellular layout
a type of layout typically used in group technology settings in which resources are physically arranged into independant sections which service a subset of the total range of products or services
80
fixed position layout
a layout that brings all resources required to create the product to a central location as the product/service cannot be moved
81
Many Suppliers Strategy
- A supplier responds to the demands and specification
- Order usually goes to the low bidder
82
Few Suppliers Strategy
- have few established long term suppliers
- emphasis is on quality and reliability
- cost of changing a supplier is high
83
integration strategy
- Developing the ability to produce goods or services previously purchased or actually buying a supplier/distributor
- Horizontal (manufacturing)
- Vertical Forward (Distribution - Retailer)
- Vertical backward (supplier)
84
Joint Ventures strategy
Formal collaboration amongst firms to secure supply or reduce costs
85
Keiretsu Network Strategy
describes suppliers who become part of a company coalition
in practice:
•Identify suppliers with key strategic capabilities
•Provide financial support to supplier(s)
•Formalize requirements (i.e. exclusive access)
•Add supplier(s) to your keiretsu network
•Drive performance within network
86
Virtual Companies Strategy
Firms liscence manufactures to work on their behalf
-Rely on a variety of supplier relationships to provide services on demand
-Fluid organizational boundaries that allow the creation of unique enterprises to meet changing market demands
-Relationships may be short- or long-term
-Exceptionally lean performance, low capital investment, flexibility, and speed
87
Inventory Management
1. Raw material
2. Work-in-progress (WIP)- partially completed components in the product line
3. Maintenance/Repair/Operating (MRO)
4. Finished Goods
88
Pressures to reduce inventory
- Interest or opportunity cost
- Storage and handling cost (space)
89
Pressures to increase inventory
- Customer Service (speed)
- Administrative Cost (paper-work)
90
Low-Cost strategy to inventory
Minimise inventory to hold costs
91
Rapid Response strategy to inventory
Use buffer stocks to ensure speedy supply
92
Differentiation strategy to inventory
Minimise inventory to avoid obsolescence
93
Logistics Management
- efficient integration of material acquisition, movement and storage activities
- potential competitive advantage from reduced costs and improved customer service
- Through distribution systems
94
Pull motivation
Motivation
- Be their own boss
- Pursue their own ideas
- Pursue financial and social rewards
95
Push Motivation
Motivation
- Out of necessity
96
How Entrepreneurs identify opportunities
- Observing trends (economics, social, political)
- Solving Problems (Economic, social, cultural or environmental)
- Finding 'social needs' in the market
97
Māori Entrepreneurship
Values are:
- desire to be both culturally and commercially successful
- make a positive difference in community
- Positive reputation
- Use profits to support the stated values
- Communalist > individuality
- Reciprocity
- Social benefit > financial profit
98
innovation
Theoretical conception + Invention + Commercial exploitation
- The introduction of something new, a new idea, method or device
99
breakthrough (radical) innovation
Totally new product, service or process
100
Incremental (Extension) innovation
New use or different application of an already existing product, service or process
101
Synthesis innovation
Combination of existing concepts and factors into a new formulation or use
102
Duplication innovation
Creative replication of an existing concept
103
Characteristics of breakthrough innovation
- Takes time (often years)
- climate needs to be conducive (accepting)
- Trial and error are norm
- Driven by personal curiosity
- Resources are scarce (financial)
- Significant risk
104
Sources of Innovation
- Unexpected occurrences
- Shift in view points in existing industries
- Process needs
- Industry and market changes
- Demographic changes
- Changes in perception
- New knowledge
105
Change
Any alteration of the status quo
106
Innovation requires change .............
But all change is not necessarily innovation
107
Disruptive thinking
- Innovations that help create new markets and value propositions
- Ultimately disrupt an existing market and value propositions over a period of years ( or sometimes decades), displacing the earlier technology.
108
Commercial exploitation of innovation
Must be:
- fit for purpose
- have a sound selling proposition
- Be capable of scaling up
- have a capable team
- be sustainable
- have acceptable financial return
109
Small business
Business with less than 20 employees
110
Contributions of small businesses
- Vehicle for entrepreneurship
- Encourages innovation and flexibility
- Maintains closer relationships with customers and community
- Keeps larger firms competitive
- Provide employees with comprehensive learning experience
- Generate new employement
111
Stages of growth of a small business
-Inception (producing products and services focus)
-Survival (Generating cash-flow focus)
-Growth (requires pro managers, systems and planning. Threats from larger competitors)
-Expansion (requires management team for complex tasks: delegate responsibilities)
-Maturity (Formalised accounting, management, etc)
112
A person wishing to be involved with a small business can:
- 'brick and mortar' from scratch
- buy existing small business
- buy franchise
- start an online business
113
Online business requirements
- FInad a market niche (unique products - well defined audience)
- professional website (identity)
- Use social media (building loyalty and promotions)
114
The business model canvas: How do you produce the product or service?
- Key partners
- Key activities
- Key resources
115
The business model canvas: What problems are you helping customers solve?
- Value Propositions
116
The business model canvas: How do you get to your customers?
- Customer Relationships
- Customer Segments
- Channels
117
The business model canvas: What is your income and your expenses?
- Cost structure
- Revenue streams
118
Failure rate of small businesses
60%
119
Small business failure: How
- Solvency based
- Liquidation or bankruptcy criteria
- Earnings based
- Loss cutting
- Simple discontinuance
120
Solvency Based
A firm ceases as a result of cour insolvency proceedings or ceases with unpaid creditors
121
Liquidation or bankruptcy criteria
A firm is involuntarily liquidated or a firm or individual declared bankrupt
122
Earnings based
A firms return on capital is significantly lower than can be obtained on similar investments
123
Loss Cutting
A firm is closed or disposed of at a loss to avoid further losses
124
Simple discontinuance
A firm ceases trading for any reason
125
Small business failure: Why
- Lack of experience
- Lack of expertise
- Lack of a strategy
- Poor financial control
- Growing to fast
- Lack of commitment
- Ethical failure (fraud or behaviour that deters customers)
