Topic 2 Flashcards
1
Q
Management
A
the process of working with and through other people to achieve business goals in a changing environment. Crucial to this process is the effective and efficient use of limited resources.
2
Q
Manager
A
someone who coordinates the business’s limited resources in order to achieve specific goals
3
Q
Planning
A
the process of establishing goals and deciding on methods to achieve them. Preparing a predetermined course of action
4
Q
Organising
A
the structuring of the organisation to translate plans and goals into action
5
Q
Leading
A
the process of influencing or motivating people to work towards the achievement of the organisation’s objectives
6
Q
Controlling
A
the process of evaluating performance and taking corrective action to ensure that the set objectives are being achieved
7
Q
Skill
A
the ability that comes from the knowledge, practice and talent to do something well
8
Q
Effectiveness
A
measures the degree to which a goal has been achieved
9
Q
Efficiency
A
compares the resources needed to achieve a goal (the costs) against what was actually achieved (the benefits)
10
Q
Interpersonal skills
A
those skills needed to work and communicate with other people and to understand their needs
11
Q
Communication
A
the exchange of information between people; the sending and receiving of messages
12
Q
Nonverbal communication
A
any message that is not written or spoken
13
Q
Strategic thinking
A
allows a manager to see the business as a whole and to take the broad, long-term view
14
Q
Vision
A
the clear, shared sense of direction that allows people to attain a common goal
15
Q
Leadership
A
the ability to influence people to set and achieve specific goals
16
Q
Problem solving
A
a broad set of activities involved in searching for, identifying and then implementing a course of action to correct an unworkable situation
17
Q
Decision making
A
the process of identifying the options available and then choosing a specific course of action to solve a specific problem
18
Q
Flexible
A
being responsive to change and able to adjust to changing circumstances
19
Q
Proactive
A
refers to a management style that incorporates dynamic action and forward planning to achieve particular objectives
20
Q
Triple bottom line
A
the economic, social and environmental performance of a business
21
Q
Stakeholder engagement
A
refers to businesses sharing information with and seeking input from stakeholders, and involving them in decision making
22
Q
Goal
A
desired outcome (target) that an individual or business intends to achieve within a certain time frame
23
Q
Benchmark
A
a standard by which something can be measured or judged
24
Q
Profit maximisation
A
occurs when there is a maximum difference between the total revenue (that is, the number of sales made multiplied by the price) coming into the business and total costs being paid out
25
Market share
refers to the business’s share of the total industry sales for a particular product
26
Share
a part ownership of a public company
27
Promotion
the methods used by a business to inform, persuade and remind a market about its products
28
Social justice
in business is about adopting a set of policies to ensure that employees or other community members are treated equally and fairly
29
Sustainable development
when the needs of the present population are met without endangering the ability of future generations to meet their own needs
30
Staff involvement
involving employees in the decision-making process and giving them the necessary skills and rewards
31
Labour productivity
measures how much an employee can produce in a set period of time
32
Intrapreneur
an individual who takes on an entrepreneurial role within a business
33
Motivation
the individual, internal process that directs, energises and sustains a person’s behaviour
34
Mentoring
the process of developing another individual by offering tutoring and coaching, and modelling acceptable behaviour
35
Mentor
someone — usually a more experienced employee — who helps develop a less experienced employee (the protégé)
36
Socialisation
the process a new employee undergoes in the first few weeks of employment through which he or she learns how to cope and succeed
37
Employment training
refers to the process of teaching staff how to perform their job more efficiently and effectively by boosting their knowledge and skills
38
Multiskilling
allows employees to develop skills in a wide range of tasks through ongoing training
39
Mass production
the process of manufacturing standardised goods on a huge scale by automation
40
Classical approach
(to management) stresses how best to manage and organise workers so as to improve productivity (output)
- long chain of command, narrow span of control
41
Scientific management
an approach that studies a job in great detail to discover the best way to perform it
42
Planning
the preparation of a predetermined course of action for a business
43
Strategic (long-term) planning
planning for the following three to five years. This level of planning will assist in determining where in the market the business wants to be, and what the business wants to achieve in relation to its competitors.
44
Tactical (medium-term) planning
flexible, adaptable planning, usually over one to two years, that assists in implementing the strategic plan
45
Operational (short-term) planning
provides specific details about the way in which the business will operate in the short term
46
Organising
the structuring of the organisation to translate plans and goals into action
47
Organisation process
the range of activities that translate the goals of a business into reality
48
Control process
involves establishing standards in line with the goals of the business, measuring the performance of the business against those standards or benchmarks, and making changes where necessary to ensure that the goals of the business have been met
49
Chain of command
an organisational structure that shows how each member of a company reports to one another
50
Span of control
The number of people an employee is responsible for
51
Specialisation of labour
the degree to which tasks are divided into separate jobs
52
Management hierarchy
the arrangement that provides increasing authority at higher levels of the hierarchy
53
Leadership style
a manager's way of doing things- their behaviour and attitudes
54
Autocratic leadership style
a manager using an autocratic leadership style tends to make all the decisions, dictates work methods, limits worker knowledge about what needs to be done to the next step to be performed, frequently checks employee performance and sometimes gives feedback that is punitive.
55
Time and motion studies
a process of examining each of the steps in a production procedure and the time taken to perform them
56
Bureaucracy
the set of rules and regulations that controls a business
57
Behavioural approach
an approach that stresses that people (employees) should be the main focus of the way in which the business is organised
- wide span of control, short chain of command
58
Delegate
to hand over certain tasks or responsibilities to an employee who is suitably capable and qualified to carry them out
59
Teamwork
when people interact regularly and coordinate their work towards a common goal
60
Flatter organisational structures
have evolved due to a ‘de-layering’ of management structures resulting in the elimination of one or more management levels
61
Participative democratic leadership style
a leadership style in which the manager consults with employees to ask their suggestions and then seriously considers through suggestions when making decisions
62
Contingency approach
stresses the need for flexibility and adaptation of management practices and ideas to suit changing circumstances
63
Operations
the business processes that involve transformation or, more generally, ‘production’
64
Operations management
all the activities in which managers engage to produce a good or service
65
Inputs
the resources used in the transformation (production) process
66
Transformed resources
those inputs that are changed or converted in the operations process
67
Transforming resources
those inputs that carry out the transformation process
68
Transformation process
Involves the conversion of inputs (resources) into outputs (goods or services)
69
Outputs
the result of a business’s efforts- the service or product that is delivered or provided to the customer
70
Outsourcing
the use of external sources or businesses to undertake business functions or activities for the business
71
Quality
the degree of excellence of goods or service and their fitness for a stated purpose
72
Quality management
the strategy which a business uses to make sure that its product meets customer expectations
73
Quality control
The use of inspections at various points in the production process to check for problems and defects
74
Quality assurance
The use of a system so that a business achieves set standards of in production
75
Total quality management
an ongoing, business-wide commitment to excellence that is applied to every aspect of the business’s operation
76
Quality circles
groups of workers who meet to solve problems relating to quality
77
Continuous improvement
an ongoing commitment to achieving perfection
78
Marketing
a total system of interacting activities designed to plan, price, promote and distribute products to present and potential customers
79
Target market
A group of customers with similar characteristics who presently, or who may in the future, purchase the product
80
Primary target market
the market segment at which most of the marketing resources are directed
81
Secondary target market
usually a smaller and less important market segment
82
Mass marketing approach
in mass markets the seller mass-produces, mass-distributes and mass-promotes one product to
all buyers
83
Market segmentation
occurs when the total market is subdivided into groups of people who share one or more common characteristics
84
Niche market
a narrowly selected target market segment
85
Marketing strategies
actions undertaken to achieve the business’s marketing goals through the marketing mix
86
Marketing mix
refers to the combination of the elements of marketing, the seven Ps- product, price, promotion, place, people, physical evidence, and process- that make up the marketing strategy
87
Product
involves determining the quality, packaging, design, name, labelling, exclusive features and warranties
88
Branding
a name, term, symbol or design that identifies a specific product and distinguishes it from its competitors
89
Brand logo
a graphic representation that identifies a business or product
90
Packaging
involves the development of a container and the graphic design for a product
91
Cost based pricing
Determines price of product based on cost of production and uses a fixed profit margin
92
Competition based pricing
Determines price based on prices set by competitors
93
Market based pricing
Sets price based on supply and demand, regardless of cost of production
94
Promotion
the methods used by a business to inform, persuade and remind a market about its products
95
Place or distribution
Activities that make the products available to customers when and where they want to purchase them
96
Distribution channels
ways of getting the product to the customer
97
People
refers to the quality of interaction between the customer and those within the business who deliver the service
98
Processes
refers to the flow of activities that a business will follow in its delivery of a service
99
Physical evidence
refers to the everything that the customer sees when interacting with a business
100
Accounting
a managerial and administrative tool for recording financial transactions, so that a summary of what has happened to business money can be traced
101
Accountability
when a business acts in the best and highest interests of its owners. Full and complete ‘disclosure’, which means to be open and not hide the truth, ensures that the books of account are kept accurately and that the information reflected in them, and which is summarised in reports, is based on the true and actual transactions
102
Finance
how a business funds its activities — for instance, where it gets the money to trade, why it chooses to use certain lenders — as well as the costs, risks and benefits of different types of borrowings
103
Financial statements
reports that summarise transactions over a period of time
104
Cash flow statement
a financial statement that indicates the movement of cash receipts and cash payments resulting from transactions over a period of time
105
Liquidity
the amount of cash a business has access to and how readily it can convert its assets into cash so that
debt can be paid
106
Income statement
a summary of the income earned and the expenses incurred over a period of trading
107
Cost of goods sold (COGS)
value of stock that a business has sold to its customers
COGS= Opening Stock + Purchases – Closing Stock
108
Gross profit
the term given to the revenue less cost of goods sold
Gross Profit= Revenue – COGS
109
Net profit
the amount remaining when operating and non-operating expenses are deducted from gross profit (selling, administrative and financial)
Net profit= Gross Profit – Expenses
110
Expenses
the costs incurred in the process of acquiring or manufacturing a good or service to sell and the costs (direct and indirect) associated with managing all aspects of the sales of that good or service.
111
Balance sheet
represents a business’s assets and liabilities at a particular point in time, expressed in money terms, and represents the net worth of the business
112
Assets
Items of value owned by the business that can be given a monetary value
113
Liabilities
Items of debt owed to other organisations (e.g. suppliers, banks)
114
Owner’s Equity
the funds contributed by the owner(s) to establish and build the business. It is also called ‘capital’.
115
Human resource cycle
covers all stages in the process of employing staff, from initial planning through to recruitment, selection, induction, training and development, performance management and eventually separation of employment
116
Human resource management
the effective management of the formal relationship between the employer and employees
117
Acquisition
the process of attracting and recruiting the right staff for roles in a business
118
Identifying staffing needs
Analysing the internal and external environment to determine the needs of the business and the employees
119
Job analysis
a systematic study of each employee’s duties, tasks and work environment. It comprises of a job description and specification
120
Job description
a written statement describing the employee’s duties, tasks and responsibilities associated with the job
121
Job specification
a list of the key qualifications needed to perform a particular job in terms of education, skills and experience
122
Recruitment
the process of finding and attracting the right quantity and quality of staff to apply for employment vacancies or anticipated vacancies.
123
Internal recruitment
filling job vacancies with present employees, rather than looking outside the business
124
External recruitment
filling job vacancies with people from outside the business
125
Employee selection
involves gathering information about each applicant for a position, then using that information to choose the most appropriate applicant
126
Development stage
refers to activities that prepare staff to take greater responsibility in the future
127
Training
the process of teaching staff how to perform their job more efficiently and effectively by boosting their knowledge and skills
128
Development
the process of preparing employees to undertake increased responsibilities in the future through acquiring improved knowledge, skills and experience
129
Maintentence
motivating employees to remain within the business
130
Employment contract
a legally binding, formal agreement between an employer and an employee
131
Award
a legally binding agreement that sets out the minimum wages and conditions for a group of employees
132
Enterprise agreements
Collective agreements made at a workplace level between an employer and a union acting on behalf of its employees, or between the employer and a group of employees, about terms and conditions of employment
133
Individual Common Law Contracts
Refers to when an employer and an individual employee negotiate a contract covering pay and conditions
134
Separation
refers to the ending of the employment relationship on a voluntary or involuntary basis
135
Voluntary
When an employee chooses to leave the business of their own free will
136
Resignation
the voluntary ending of employment by the employee ‘quitting’ their job
137
Retirement
when an employee decides to give up full-time or part-time work and no longer be part of the labour force
138
Redundancy
when a person’s job no longer exists, usually due to technological changes, an organisational restructure or a merger or acquisition
139
Involuntary separation
When an employee is asked to leave the business against their will
140
Summary dismissal
when the employee commits a serious breach of their employment contract
141
Dismissal
when the behaviour of an employee is unacceptable and it then becomes necessary for a business to terminate the employee’s employment contract
142
Retrenchment
dismissal because there isn’t enough work to justify payment
143
Unfair dismissal
when an employee is dismissed by their employer and they believe the action is harsh, unjust or unreasonable
144
Business ethics
the application of moral standards to business behaviour
145
Audit
an independent check of the accuracy of financial records and accounting procedures
146
Corporate social responsibility
refers to open and accountable business actions based on respect for people, community/society and the broader environment. It involves businesses doing more than just complying with the laws and regulation
147
Code of conduct
a set of ethical standards that managers and employees of the business are expected to abide by
148
Change
any alteration in the internal or external environments
149
Change management
a methodical approach to dealing with change, both from the perspective of a business and on the individual level
150
Holistic
an approach that looks at the whole picture
151
Proactive
to initiate change rather than simply to react to events
152
Reactive
to wait for a change to occur and then respond to it
153
Business information system
gathers data, organises and summarises it and then converts the data into practical information
154
Data
unprocessed facts and figures such as sales figures and customer complaints
155
Information
processed data that has been deliberately selected and organised to be useful to an individual
manager
156
Vision statement
a broad statement about what the business aspires to become in the future
157
Driving forces
those forces that support the change
158
restraining forces
those forces that work against the change
159
Inertia
refers to an unenthusiastic response to proposed change due to a fear of the unknown
160
Change agent
a person or group of people who act as catalysts, assuming responsibility for managing the
change process
161
Management consultants
someone who has specialised knowledge and skills within an area of business
162
Best practice
those business practices that are regarded as the best or of the highest standard in the industry
163
Change
any alteration in the internal or external environments
