Organisational Structure
Line of Reporting shows...
Who is the manager
Who is the Subordinate
That the manager and subordinate must communicate with each other
3 methods of production
Job, batch and flow
4 Functions of a Manager
Planning, Organising, Leading and Controlling
Why do we need financial information?
Provide information to stakeholders.
Record financial transactions.
Aid decision-making for managers.
Policies are...
guidelines, statements of expectations, rules.
A type of structure that has a narrow span of control
Tall Structure
Advantages of Flow Production
High output
Very efficient
Low per-unit cost to pass on to customer
4 Styles of Management
Authoritarian, Democratic, Paternalistic, Laissez-faire
How can a budget help a business plan effectively?
With budgeted figures available, managers know what resources are required to carry out plans effectively. They can adjust to fit in with limited resources or seek more resources if necessary.
Procedures are...
The methods of carrying out day to day activities.
A type of structure that is often used for projects that allows cross-departmental teams to accomplish a task.
Matrix
Formula to measure Productivity
Output / Input
Transactional, Short term, Money orientated, Instructs, Plans, Reactive
Manager skills
By looking at the amount of variance, we can see the impact the variance is having on the bottom line. (True or False)
True
MBC - The values, guidelines, rules, and priorities that frame a businesses operations.
Tikanga
A type of worker that carries out specialist work when hired by another business.
Contractor
Define economies of scale
The average costs per unit of output decrease with the increase in the amount of output being produced by a firm.
MBC - Guardianship of natural resources for future generations.
Kaitiakitanga
Explain variance analysis.
A variance is the difference between predicted and actual figures which is often recorded as a percentage. A variance analysis consists of comparing planned revenue and expenditure and actual revenue and expenditure. This will then be used to identify the reasons for the differences so that the business can respond appropriately.
The difference between programmed and non-programmed decisions.
Programmed decisions are made quickly and regularly and have pre-defined outcomes. Non-programmed decisions are not obvious and require time to make them.
Methods of organising a business
Geographical, functional and divisional
What does TIMWOOD stand for and why do we use it?
Transportation, Inventory, Motion, Waiting, Over-Processing, Over-Production, Defects. We use it to find areas where we can minimise waste in an organisation.
A disadvantage of Authoritarian style
Structure doesn't cater for specialised needs, employees can feel demotivated, creativity and initiative can be difficult.
What is a Profit and Loss Statement, a Statement of Financial Position, and a Cash Flow Statement?
P&L - Shows the company's performance (revenue and expenditure) for a period and states if a profit or loss has been made.
FP - Indicates the position of a business at the end of a period. Includes assets and liabilities and equity.
CF - Shows where the cash has came in from and what it has been spent on.
Identify 3 examples Tikanga in your school.
Following school rules is important,
Powhiri for new students,
Education and success is important,
School culture,
NZQA policies