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Flashcards in Term 1 - Exam 1 Deck (29)
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What is a business?

A business is an organisation, enterprise or business engaged in productions and trade of goods and services, usually for profits.


What are some things that an internal environment has some control over?

- corporate and cultural values
- staff
- structure
- policies
- communications
- operations
- technology


What affects a stakeholder?

The organisation actions, objectives and policies.


What is a stakeholder?

A person, group organisation that has an interest or concern in an organisation.


What does S.W.O.T stand for?

S- Strengths
W- Weaknesses
O- opportunities
T- Threats


What are corporate cultures?

Corporate cultures is a set of values and norms that is shared by all members of an organisation.


How can desired culture be created?

- management providing an example
- management recognising and rewarding appropriate actions
- training in line with the desired culture
- management communication aspects of desired culture


What are the factors of P.E.S.T?

P- political and legal influences
E- economic influences
S- social and cultural influences
T- technology influences


What are the external factors that a company has very little control over?

Opportunities and threats


What are the key business functions?

- chief executive officer
- operations
- marketing
- human resources
- finance


What does an operations manager do?

The planning and implementing of the organisations production system which transforms inputs into valuable inputs.


What does a marketing manager do?

Involves the planning and implementing of design, pricing, promotion and the distributions of products to satisfy the customers needs.


What does a human resources manager do?

The process of recruiting, hiring and training staff and maintaining and enhancing the work environment.


What does a finance manager do?

Involves the organising and controlling of a business' financial resources to achieve its objective.


What is the role and importance of a business?

- introduce new trends, technology and ideas
- provides employment and career opportunities
- export goods and services, help reduce trade problems
- generates profit in the economy
- major support of charities and communities


What does an autocratic manager do?

Provides clear directives to their employees without listening to or permitting employee input.


What does a persuasive manager do?

Attempts to make employees accept the objectives of the organisations and work to plans and procedures.


What does a consultative manager do?

Recognises the importance of positive working relationships, and encourages employees to share their ideas on how to overcome a particular issue.


What does a participative manager do?

Recognises the strengths and weaknesses in their staff and actively involves them in each stage of the decision making process.


What does a laissez-faire manager do?

Employees assume total responsibility for and of work place operations.


What are some advantages of an autocratic management style?

- clear direction and procedures
- employees' roles and expectations are clearly defined making performance monitoring easier
- control is centralised with top level management


What are some disadvantages of an autocratic management style?

- no employee input allowed, so ideas are not encouraged. This results in employees not feeling valued, or able to further develop skills.
- can result in high absenteeism and staff turnover to a decrease in job satisfaction.
- conflict may arise between employees seeking the approval and praise from management.


What are some advantages of a persuasive management style?

- managers can gain trust and support through persuasion
- instruction and explanation remains clear and constant
- some acceptance of negative situations when benefits of management decisions are explained. Eg extended work hours, pay cuts etc.


What are some disadvantages of a persuasive management style?

- attitudes and trust remain negative, as employees fail to give full support to management.
- communication is still poor and limited to a top down, one way system.
- employees remain frustrated because they are denied full participation in the decision making process.


What are some advantages of a consultative management style?

- employee input allows for a greater variety of ideas, resulting in better decisions.
- employees have some ownership in the organisation, so they take more interest in it, resulting in improved productivity, motivation and commitment.
- decisions are discussed prior to being made resulting in tasks being completed more efficiently and with better results.


What are some disadvantages of a consultative management style?

- the time taken to consult with each employee before making a decision.
- some issues are not suitable for a widespread consultation.
- not every employees suggestions can be adopted, which may cause conflict or resentment.


What are some disadvantages of participative management style?

- the role and control of the manager may be weakened.
- not all employees want to contribute.
- making decisions can be very time consuming when differing and conflicting views have to be considered.


What are some advantages of laissez-faire management style?

- employees feel a sense of ownership which can promote outstanding results.
- there is continued encouragement for creativity, which is conductive to a dynamic work environment.
- in a flat structure, communication is wide open and ideas are both discussed and shared.


What are some disadvantages of laissez-faire management style?

- there is a complete loss of control by management, and may result in the misuse of the organisations resources.
- can breed personal conflict where employees may only wish to implement their own ideas instead of working as a team to achieve a common goal.
- the focus on meeting organisational objectives can be easily eroded. As a result management may find themselves with a failed organisation and nothing to management.