AT2 Flashcards

• Nature of management


  • Planning
  • Organising
  • Leading
  • Controlling
• Planning


  Preparation of a predetermined course of action for a business
• Organising


  Structuring of the organisation to translate plans and goals into actions
• Leading


  Process of influencing or motivating people to work towards the achievement of the organisations objectives
• Controlling


  Comparing what was intended and what occurred
• Skills of Management


  • Interpersonal
  • Communication
  • Strategic Thinking
  • Vision
  • Problem-solving
  • Decision-making
  • Flexibility and Adaptability to Change
  • Reconciling the conflicting interests of stakeholders
• Interpersonal skills


  Skills needed to work and communicate with other people and understand their needs, perspectives and values. The set of abilities enabling a person to interact positively and work effectively with others.
• Communication


  The exchange of information between people, through verbal and non-verbal ways such as conversations, email, memo and messages. Miscommunication is the failure to communicate adequately.
• Strategic Thinking


  Allows managers to view the business as a whole and look at the long term
• Vision


  Vision defines what you will do and why it will do it, defining goals to be accomplished by a certain time period. It takes into account current status, processes, efficiency etc. and helps to point in the right direction.
• Problem-solving


  The process of finding solutions to difficult or complex issues.
• Decision-making


  Cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities.
• Flexibility and Adaptability to Change


  Developed after consideration of the present-day internal and external business environment. Managers must anticipate what changes may occur
• Reconciling the conflicting interests of stakeholders


  Society increasingly expects business' to accept responsibility and accountability towards all stakeholders for the promotion and management of change.
• Stakeholders


  Any group or individual who has a vested interest in or is affected by the activities of a business. E.g. Managers, owners, employees, customers, suppliers, government
• Management approaches


  • Classical approach
  • Behavioural approach
  • Contingency approach
• Classical approach


  The manager of a business had total control of every aspect of business operations.
• Planning


  Involves deciding on the direction the business will take in the future, then setting goals and objectives. It must take into account the current position of the business within the restrictions set by the external and internal business environments.
• Types of Planning


  • Strategic Planning
  • Tactical Planning
  • Operational Planning
• Strategic Planning

  Long-term planning for the overall business, as it encompasses the business's vision- where the firm wants to be at a certain time in the future.
• Tactical Planning


  Medium-term planning- perhaps one to two years ahead.
• Operational Planning


  Addresses the short term- a year, a few months and even the day-to-day running of a business.
• Organising


  Involves creating the framework for the implementation of the business plan.
• Controlling


  When controlling, managers compare the results achieved with what was planned.
• Division of Labour


  Each task is divided into small steps in the production process and a worker is assigned to each task.
• Hierarchical organisational structure


  • Top down
  • Division of labour
  • Chain of command - strict line of authority
  • Small spans of control - the number of subordinates who reportedly directly to a specific management

  
• Autocratic leadership style


  Management makes all decisions
• Positives of Autocratic leadership style


  • Fast decisions
  • Well defined procedures
  • No bias
• Negatives of Autocratic leadership style


  • Stress on staff
  • Lack of employee involvement
  • Employee discouragement
  • Main priority is output
• Behavioural approach


  Focusing primarily on human resources- the behaviour and motivation of employees in the workplace. (Focuses upon individual behaviour, motivations, and social interactions.)
• Behavioural management as

  • Leading
  • Motivating
  • Communicating
• Motivation


  Providing workers with the desire to carry out work to a high standard. Energising and encouraging employees to achieve the business' goals.
• Motivation methods


  • Monetary and non monetary awards
• Leading


  Process of influencing or motivating people to work towards the achievement of the organisations objectives
• Communicating


  Exchanging information between people; the sending and receiving of messages. Various management roles are carried out by interacting and communicating with others.
• Teams


  • Teamwork: involves people who interact regularly and coordinate their subordinates
  • Productivity is higher when people work in a team and all have a say
  • Short chain of command, and wide span of control, sense of cohesion
• Participative/Democratic Leadership Style


  Managers encourage a high degree of employee involvement and participation
• Positives of Participative/Democratic Leadership Style

  • Motivated employees
  • Good business culture
  • Faster communication from staff to CEO
  • Incentives
• Negatives of Participative/Democratic Leadership Style

  • Slower decision making progress
• Contingency Approach


  • Stresses the need for flexibility and adaptation of management styles to suit different circumstances
  • Managers need to be adaptable and flexible
  • Reacting quickly to change
  • Each situation has a unique solution