Nature of Management
What is effective management?
Coordinating people and resources effectively to achieve the goals of the business.
Which management approach views management as planning, organising and controlling?
The classical approach.
Identify the four key business functions that managers must coordinate.
Operations, marketing, finance and human resources.
Distinguish between an internal and external influence on business change.
An internal influence comes from within the business, such as management or employees. An external influence comes from outside the business, such as technology, competition or laws.
Identify four skills required by an effective manager.
Interpersonal, communication, strategic thinking, vision, problem-solving, decision-making, flexibility and adaptability to change. Accept any four.
What organisational structure and leadership style are associated with the classical approach?
A hierarchical organisational structure and an autocratic leadership style.
Identify three responsibilities of operations management.
Managing goods and services, the production process and quality management.
How can business information systems help managers identify the need for change?
Analysing sales, costs, customer feedback, employee performance, stock levels or market trends; identifying problems; recognising opportunities; supporting decisions.
Identify four goals a business may aim to achieve.
Profit, market share, growth, share price, social goals and environmental goals. Accept any four.
Identify three main features of the behavioural approach.
Leading, motivating and communicating; using teams; and a participative or democratic leadership style.
What are the two main marketing responsibilities
Identifying the target market and developing the marketing mix: product, price, promotion and place.
Explain why managers should set achievable goals when introducing change.
Achievable goals Provides direction; makes progress measurable; motivates employees; reduces uncertainty; ensures goals are realistic; helps organise resources.
Explain why a business may aim to achieve a mix of goals.
Balances financial and non-financial goals; considers different stakeholders; supports long-term success; improves reputation; protects the environment while earning profit.
What is the contingency approach to management?
Managers adapt their approach and decisions to suit the particular circumstances facing the business.
Distinguish between a cash flow statement, income statement and balance sheet.
A cash flow statement records cash entering and leaving the business. An income statement shows revenue, expenses and profit or loss. A balance sheet shows assets, liabilities and owner’s equity.
Identify two reasons employees may resist change and one strategy management could use to reduce resistance.
Reasons for resistance: fear of job loss, uncertainty, loss of routines, poor communication, lack of skills or fear of technology.
Strategies: communication, consultation, training, support, participation or gradual implementation.
Identify four methods of staff involvement and explain one benefit of involving staff.
Methods: innovation, motivation, mentoring and training. Benefits: improved skills, productivity, motivation, creativity, teamwork, employee satisfaction or commitment.
Distinguish between the classical and behavioural management approaches.
The classical approach focuses on planning, organising, controlling, hierarchy and autocratic leadership. The behavioural approach focuses on people, teamwork, motivation, communication and employee participation.
Identify four human resource responsibilities and explain why they should be managed ethically.
Recruitment, training, employment contracts and voluntary or involuntary separation. Ethical management could include fairness, honesty, equal opportunity, respecting employees and following employment laws.
Explain how a management consultant can help a business manage change.
Provide expert advice; offer an independent perspective; identify problems; recommend strategies; train managers or employees; develop and help implement a change plan.