Unit 3 Flashcards
1
Q
What is management?
A
Involves getting people to work together for a common goal using skills of leading, motivating & communicating. Good managers use management activities such as: Planning, organising & controlling to coordinate resources such as employees & capital.
2
Q
What is leading in management?
A
Managers have a clear vision for the future which they share with employees. They encourage employees to work towards a common organizational goal.
3
Q
What are the leadership styles?
A
Autocratic, Democratic, Laissez-faire.
4
Q
What is autocratic leadership?
A
Leader makes all decisions & orders subordinates to follow instructions. Management makes all the decisions without employee input.
5
Q
Features of autocratic leadership?
A
Authority: Leader is in complete control. Decision making: Do not consult employees. Trust: Don’t trust employees. Motivation: Use threats of punishment.
6
Q
Advantages of autocratic leadership?
A
Quick decisions, quick task completion, increase in productivity.
7
Q
Disadvantages of autocratic leadership?
A
Management stress, decreased staff motivation, increase in conflict.
8
Q
What is democratic leadership?
A
Encourages employees to participate in decision making. The leader has ultimate control but values employees’ ideas.
9
Q
Features of democratic leadership?
A
Authority: Total control but tasks are delegated. Decision making: Employees have input. Trust: Trust employees. Motivation: Employees feel valued.
10
Q
What is empowerment in management?
A
When a manager allows employees to make certain decisions on behalf of the business without needing to consult management.
11
Q
Advantages of democratic leadership?
A
Decreased management stress, increased employee motivation, better decisions made.
12
Q
Disadvantages of democratic leadership?
A
Slow decision making, employee frustration, management resentment.
13
Q
What is laissez-faire leadership?
A
Management outlines the business goals & trusts employees to decide on the best way to achieve these goals.
14
Q
Features of laissez-faire leadership?
A
Authority: Managers set tasks and allow decisions. Decision making: Empower employees. Trust: Trust employees. Motivation: Employees feel valued.
15
Q
Advantages of laissez-faire leadership?
A
Employee motivation, improved skills/knowledge, intrapreneurship.
16
Q
Disadvantages of laissez-faire leadership?
A
Reduced productivity, poor decisions, poor industrial relations.
17
Q
What is delegation?
A
Involves the assignment of authority to another person, such as a manager delegating tasks to a subordinate.
18
Q
Requirements for delegation?
A
Open communication, employee skills and experience, managerial control.
19
Q
Advantages of delegation?
A
Decreased management stress, increased employee productivity, faster task completion.
20
Q
Disadvantages of delegation?
A
Poor decision making, employee stress, business reputation.
21
Q
Advantages of delegation for management?
A
Increased management time, increased quality of tasks, better work-life balance.
22
Q
Factors that affect leadership style?
A
Nature of task, span of control, time, types of employees.
23
Q
Benefits of leadership?
A
Achieve organizational goals, management time, increased employee motivation.
24
Q
What is motivation?
A
The willingness to do something, encouraging employees to work to achieve their goals.
25
What is Maslow's Hierarchy of Needs?
Every employee has 5 categories of needs. Once one need is achieved, the employee is motivated by the next one.
26
Maslow's hierarchy: Physiological needs?
The need for food, shelter, warmth, achieved by fair wages and bonuses.
27
Maslow's hierarchy: Safety?
The need for job certainty and safety, achieved by long-term contracts and health insurance.
28
Maslow's hierarchy: Social needs?
The need for human interaction, achieved by teamwork and staff events.
29
Maslow's hierarchy: Esteem needs?
The need for recognition, achieved by praise and job titles.
30
Maslow's hierarchy: Self-actualization?
To achieve one's full potential, achieved by training and promotions.
31
Positives of Maslow's hierarchy?
Focuses on changing needs, prepares for future promotions, shows motivation is not only monetary.
32
Negatives of Maslow's hierarchy?
Not all needs are of equal value, assumes uniform motivation, self-actualization varies.
33
What is Theory X?
Negative management approach where employees are not trusted and closely supervised.
34
Implications of Theory X management?
Demotivated workforce, poor time management, high staff turnover.
35
What is Theory Y?
Positive management approach where employees are trusted to do their work well.
36
Implications of Theory Y management?
Motivated workforce, low labour cost, more management time.
37
Advantages of McGregor's Theory X & Theory Y?
Employee motivation, decreased recruitment costs, improved industrial relations.
38
Importance of motivation in the workplace?
Improved productivity, less staff turnover, less absenteeism, less industrial conflict.
39
What is communication?
The exchange of information between two or more parties.
40
Principles of effective communication?
Appropriate language, confidentiality, feedback, accuracy.
41
What is internal communication?
Occurs between two or more people in an organization.
42
What is upward communication?
Employees report up to the chain of command.
43
What is downward communication?
Information sent down the chain of command.
44
What is horizontal communication?
Communication between people at the same level in an organization.
45
What is external communication?
Takes place between the business and external stakeholders.
46
What are meetings?
Used to exchange information between two or more people.
47
Why are meetings held?
To share information, make decisions, solve problems, and discuss confidential issues.
48
What is a notice?
An invitation for people to attend a meeting.
49
What is an agenda?
A list of topics to be discussed at a meeting.
50
What are minutes?
A record of the meeting summarizing discussions and decisions.
51
What is the role of the chairperson?
Responsible for opening, running, and closing the meeting.
52
What is a quorum?
The minimum number of members required for a meeting to occur.
53
What are standing orders?
The rules of running a meeting.
54
What is a point of order?
When an attendee draws attention to a broken standing order.
55
What is a proxy?
Votes in accordance with instructions given by someone who cannot attend.
56
What is the role of the secretary?
Responsible for organizing the meeting and taking minutes.
57
What is an AGM?
A meeting held once a year attended by directors and shareholders.
58
What is an EGM?
A meeting to discuss urgent issues that cannot wait until the AGM.
59
What is a board meeting?
Attended by the board of directors to discuss business performance.
60
What is a statutory meeting?
The first meeting held once in the life of a company.
61
What is an ad hoc meeting?
A meeting that takes place at short notice to resolve urgent matters.
62
What is a general meeting?
Regular meetings between management and employees.
63
What is a memo?
A short written message used for internal communication.
64
Factors when choosing a method of communication?
Cost, message content, urgency, confidentiality, record.
65
Barriers to effective communication?
Language, lack of trust, information overload, timing.
66
Advantages of effective communication?
Reduced errors, improved decision making, better industrial relations.
67
What does ICT stand for?
Information & communications technology.
68
What is the definition of ICT?
The use of computers & other electronic technology to store, transfer, access & manipulate data.
69
Name some forms of ICT used in a business.
Email, The internet, Electronic data interchange (EDI), Cloud computing, Video conferencing, Social media.
70
What is the internet?
A global network of computers that enable people to share & transfer data, text, pictures & videos instantly, anywhere in the world.
71
What are the advantages of the internet?
Fast communication, reduces costs, improved advertising.
72
What are the disadvantages of the internet?
Risk of hacking, high cost, online customer reviews can damage business reputation.
73
What is email?
Enables people to send messages electronically around the world.
74
What is phishing?
An attempt to illegally gain access to passwords & usernames for credit cards & bank accounts with the intent to steal money.
75
What does EDI stand for?
Electronic data interchange.
76
What is EDI?
Computer-computer communication that enables businesses to communicate info such as orders, invoices & payments electronically.
77
What are the advantages of EDI?
Reduces costs, reduces errors, quick method.
78
What are the disadvantages of EDI?
High investment, increased industrial relations, may not be compatible.
79
What is cloud computing?
The use of remote servers hosted on the internet to store, manage & process data.
80
What are the advantages of cloud computing?
Global access, low cost, data is secured.
81
What are the disadvantages of cloud computing?
High cost, risk of hacking, outages.
82
What is video conferencing?
Enables a meeting between geographically separated people using a network to transmit video/audio.
83
What are the advantages of video conferencing?
Saves costs, can have regular meetings, very quick to organise.
84
What are the disadvantages of video conferencing?
High cost of equipment, technical issues, time zones, staff may need training, no personal connection
85
What is social media?
Computer programs & websites that enable people to create & share content such as messages, images, & videos.
86
What are the advantages of social media?
Large audience, low cost of advertising, customer loyalty.
87
What are the disadvantages of social media?
Can tarnish reputation, hacking, very time consuming.
88
What are the benefits of ICT for a business?
Faster communication, better teamwork, reduces costs, high staff morale.
89
What are the issues with ICT for a business?
High cost, security issues, increased industrial relations.
90
What does GDPR stand for?
General Data Protection Regulation.
91
What are the rights of data subjects?
Right to access, copy of data, correction of data, erasure of data.
92
What are the responsibilities of data controllers?
Collect data, provide copies of data, keep data secure, report data breaches.
93
What does DPC stand for?
Data Protection Commission.
94
What are the functions of the DPC?
Monitors & enforces GDPR, investigates complaints, imposes fines, conducts data audits.
95
What is planning in a business context?
When management looks to the future & sets specific goals for the business.
96
What does SMART stand for in planning?
Specific, Measurable, Achievable, Relevant, Timed.
97
What are the steps in the planning process?
Access current situation, set a goal, create a plan, implement plan, review the plan.
98
What is a SWOT analysis?
An assessment tool used to assess a firm in terms of its strengths, weaknesses, opportunities & threats.
99
What is a mission statement?
A short written statement that sets out the firm's overall main goals & objectives.
100
What are the types of plans in business?
Strategic plans, tactical plans, operational plans, contingency plans, manpower plans, financial plans.
101
What are strategic plans?
Long term plans set by senior management that break down the firm's mission statement.
102
What are tactical plans?
Short term plans set by middle management that break down strategic plans.
103
What are operational plans?
Plans for the day-to-day running of the business.
104
What are contingency plans?
Backup plans used to deal with unforeseen events/emergencies.
105
What are manpower plans?
Plans that ensure the business has the correct number of employees with the right skills.
106
What is a financial plan?
A plan that prepares a cash flow forecast to predict income and expenditure.
107
What is the impact of planning on stakeholders?
Investors, employees, suppliers.
108
What are the benefits of planning?
Benchmarking tool, easier to obtain finance, identify problems, reduce risk, increased employee motivation.
109
What is quality control?
A set of procedures used to monitor work completed to ensure it meets the standards set. Aims to ensure that goods meet legal requirements.
110
What are the purposes of quality control?
• Detect issues - Poor quality
• Prevent issues arising - Prevent quality issues...TQM.
• Correct issues - Corrective action, new supplier.
• Improve quality - Via TQM.
111
How does a business achieve quality control?
• Inspections
• Quality circles
• Quality awards
• Total quality management (TQM)
112
What are inspections in quality control?
A trained inspector carries out tests on finished goods, either by testing them all or just a sample.
113
What is random sampling in inspections?
Includes picking a number of items at random, e.g., 10/500, and testing them. If the sample passes, the entire batch passes; if it fails, the entire batch is scrapped.
114
What are quality circles?
A group of employees volunteer to form a quality circle. The group meets regularly to identify & discuss quality issues at the firm.
115
What are the benefits of quality circles?
• Increased employee motivation.
• Reduced costs - not selling products that will be returned.
• Improve consumer satisfaction - good quality products.
116
What are quality awards?
Awards given by independent organizations when a business achieves an agreed quality standard.
117
What is the Q mark?
An Irish Quality mark awarded by EIQA to businesses who continuously strive to improve quality.
118
What is the ISO 9000 series?
An international quality award system requiring firms to be of very high standard to achieve it.
119
What are the benefits of quality awards?
• Consumer trust - builds consumer loyalty.
• Use of marketing strategy.
• Can charge premium pricing.
120
What is TQM?
Total quality management, a system where the whole business seeks to improve quality in all areas.
121
What are the benefits of quality control?
• Increased consumer satisfaction.
• Reduced costs.
• Can charge premium price.
• Increased employee motivation.
• Marketing tactic.
122
What is credit control?
Ensures customers who use credit facilities pay their bills in full and on time.
123
What are bad debts?
When a debtor fails to pay the amount owed for goods or services.
124
How can businesses minimize bad debts?
• Set credit limits.
• Check customers' credit rating.
• Adapt an effective debt collection procedure.
125
What is financial control?
Aims to ensure the business is profitable and liquid.
126
What are methods of financial control?
• Cashflow forecast
• Ratio analysis
• Budget allocation
127
What is organizing in management?
Occurs when the manager coordinates all business resources into the most effective formation to achieve organizational goals.
128
What are types of organizational structures?
• Functional
• Geographic
• Matrix
• Product
129
What is a functional organizational structure?
The firm is divided into departments based on functions they perform.
130
What are the advantages of functional organization structure?
• Increases employee motivation.
• Expert knowledge.
• Clear chain of command.
131
What are the disadvantages of functional organization structure?
• Slower communication.
• Lack of teamwork.
• Over-focusing on departmental goals.
132
What is a geographical organizational structure?
The business is divided into geographical areas.
133
What are the advantages of geographical structure?
• Managers see a clear pathway for promotion.
• Increase in sales.
• Increased consumer loyalty.
134
What are the disadvantages of geographical structure?
• Increase in costs.
• Lack of communication.
• Management conflict.
135
What is a matrix organizational structure?
Employees work in various departments and come together in cross-functional teams.
136
What are the advantages of matrix structure?
• Increased employee motivation.
• Improved communication.
• Improved decision-making.
137
What are the disadvantages of matrix structure?
• Many managers across all project teams.
• Lack of productivity.
• Can be expensive.
138
What is chain of command?
Shows the line of authority & communication in the business.
139
What is span of control?
Relates to the number of employees who report directly to management.
140
What is a wide span of control?
A manager has a wide span of control when they have a large number of employees reporting directly to them.
141
What are the effects of a business having a wide span of control?
• Tarnished business reputation.
• Low employee motivation.
• Management burnout.
142
What is a narrow span of control?
A manager has a narrow span of control when there are a smaller number of employees reporting directly to the manager.
143
What factors affect the span of control?
• Employees' skills.
• Nature of the task.
• Managerial workload.
144
What is delayering?
Involves removing one or more layers of management in an organization's structure.
145
What are the advantages of delayering?
• Faster communication.
• Decrease in costs.
146
What are the disadvantages of delayering?
• Decrease in employee motivation.
• Increase in management stress.
147
What is controlling in management?
A management activity that measures how well an organization achieves its goals.
148
What are the steps in controlling?
• Set standards.
• Measure performance.
• Compare standards against performance.
• Take corrective action.
149
What are the 4 types of management control?
• Stock control
• Quality control
• Credit control
• Financial control
150
What is stock control?
A management activity that aims to keep optimum stock levels.
151
What are the types of stock in a business?
• Raw materials
• Work in progress
• Finished goods
• Merchandise
152
What is optimum stock level?
The ideal level of stock that a business should have of a particular item.
153
What is maximum stock level?
The largest amount of stock that can be held in a business at once.
154
What is minimum level of stock?
The lowest amount of stock that should be held.
155
What is reorder level?
The level of stock in which a new order of stock should be placed.
156
What is lead time in stock control?
The time from when an order is placed to the stock arriving in the stockroom.
157
What are methods of managing stock levels?
• Manual
• EDI
• JIT
158
What is manual stock take?
Employees physically count and record all stock in the business.
159
What is EDI?
Electronic Data Interchange, allowing computer-to-computer communication.
160
What are the benefits of EDI to stock control?
• Quick to reorder.
• More efficient.
• Short lead times.
• Shorter processing times.
161
What is JIT?
Just In Time, where a business holds minimum amount of raw materials and receives regular deliveries.
162
What happens if a business has too much stock?
• Risk of theft.
• Lower profits.
• Risk of not selling.
• Lack of money.
163
What happens if a business has too little stock?
• Loss of sales.
• Loss of economies of scale.
• High cost.
• Production delays.
164
What are economies of scale?
Business benefits when buying stock in large quantities from suppliers.
