Unit 3 Outcome 2a Flashcards Preview

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Flashcards in Unit 3 Outcome 2a Deck (62)
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0
Q

Why does management have such a significant role?

A

Because it structures an organisation.

1
Q

What is Corporate Culture?

A

. Corporate culture is the values and beliefs shared by members of an organisation.
. It can be split into official and real corporate culture and is different in each organisation as it should reflect the certain style or character of an organisation.

2
Q

How can the Corporate Culture be split?

A

. Official Corporate Culture

. Real Corporate Culture

3
Q

What is the Official Corporate Culture?

A

. revealed through the policies, objectives and slogans of an organisation
. can help keep members of an organisation on track

4
Q

What is the Real Corporate Culture?

A

. the rules that guide how people in the organisation behave
. This can be written or unwritten
. includes aspects such as dress code

5
Q

Why is corporate culture so important?

A

The culture decides the way employees interact at their workplace. The organisation culture brings all the employees onto a common platform. It is the culture of an organisation which extracts the best of each team member. The culture of an organisation represents certain predefined policies which guide the employees and give them a sense of direction at the workplace

6
Q

What are the Elements of a Corporate Culture?

A

. Values and Practices
. Symbols
. Rituals, Rites and Celebrations
. Heroes

7
Q

What elements indicate the type of corporate culture an organisation has?

A

The elements which indicate the type of corporate culture an organisation has includes an organisations values and practices, symbols, heroes, rituals, rites and celebrations.

8
Q

Explain the following Corporate Culture Element: Values and Practices.

A

These are the ways things are done in an organisation.

. Examples include honesty, hard-work and teamwork.

9
Q

Explain the following Corporate Culture Element: Symbols.

A

These are the events or objectives established to represent what the organisation believes to be important.
. Examples include organisations which believe in positive competition among employees,
. they can organise various sporting events which then becomes a symbol of their belief.

10
Q

Explain the following Corporate Culture Element: Rituals, Rites and Celebrations.

A

These are the routine behavioural patterns in an organisations everyday life.
. Examples include regular social gathering to help develop a sense of belonging among employees

11
Q

Explain the following Corporate Culture Element: Heroes.

A

These are an organisation’s successful employees who reflect it’s values and are therefore recognised and sometimes rewarded for acting as a good example for others.

13
Q

How can an organisation develop a positive corporate culture?

A

. manager understanding the organisations unique culture
. training
. communication
. recognising and rewarding
. can be developed simply by building on any of the 4 elements

14
Q

Why is it important for a manager to understand an organisation’s corporate culture?

A

. Corporate culture is a powerful tool for achieving organisational objectives, however it is different in each organisation therefore a manager needs to understand their organisations unique culture in order to achieve objectives.
. Furthermore, if the manager understands the culture its easier to get things done or change something in the routine or procedures.

15
Q

What is a management structure?

A

. A management structure is an organisations formal arrangement of management, employees and resources, this is in pursuit of its objectives.
. Due to organisations being different there are 3 different structures for an organisation to use and even combine according to their specific situation, this includes the functional, divisional and matrix structure.

16
Q

What is management hierarchy?

A

. arrangement that provides increasing authority at higher levels of the hierarchy
. This means senior managers have greater accountability, responsibility and power compared with those at lower levels.

17
Q

What are the different levels of account ability/responsibility/authority?

A

. top/senior/executive management team
. middle management team
. frontline/supervisory management team

18
Q

Describe top/senior/executive management team level of responsibility.

A
high accountability/responsibility/authority 
management titles:
. board of directors 
. chief executive officer (CEO)
. managing director (MD)
Responsibility:
. vision
. mission statement 
. strategic (long-term planning)
19
Q

Describe middle management team level of responsibility.

A
medium accountability/responsibility/authority
management titles:
. department head 
. divisional head
. plant manager
. store manager 
responsibility:
. department/divisional objectives
. tactical (medium-term) planning
20
Q

Describe frontline/supervisory management team level of responsibility.

A
low accountability/responsibility/authority 
management titles:
. team manager
. supervisor
. team leader
. frontline manager 
responsibility:
. section/sub-departmental planning
. operational (short-term) planning
21
Q

What are some characteristics of this pyramid-shaped manage structure?

A

. rigid lines of communication
. numerous levels of management (managing director to supervisor)
. clearly distinguishable organisational positions, roles and responsibilities
. hierarchical, linear flows of information and direction (with a large amount of information directed downwards)
. centralised control (with all strategic decisions made by senior management)
. a chain of command

22
Q

What are the 2 main features of a management hierarchy?

A

. chain of command/line authority

. and span of control

23
Q

What is a chain of command/line authority?

A

. A system that determines the responsibility, supervision and accountability of members in an organisation
. PRO: only one person ultimately remains in charge
. CON: information flows one way (from top to bottom)

24
Q

What is the unity of command?

A

the unity if command is a principle which states that each employee within an organisation to report to only one supervisor.

25
Q

What is span of control?

A

. When people and resources are grouped into divisions in LSOs they are supervised by managers who make sure the division runs smoothly.
. Span of control indicates the number of people for whom a manager is directly responsible for.

26
Q

Why are organisations changing their structures from tradition to the new and emerging ways?
(pouring water on the sandcastle)

A

. significant pressures (such as increased competition due to forces of globalisation)
. reduces number of levels of management
. spreads out responsibility
. fast decision making

27
Q

What are the characteristics of traditional organisations?

A
. centralised
. task/activity centred
. division of labour 
. rigid structure 
. autocratic management style 
. performance appraisal 
. exclusive power
. communication (top-down)
. delegation (top-down)
. traditional, conservative
28
Q

What are the characteristics if new and emerging organisations?

A
. decentralised 
. people centred
. multi task
. flexible structure 
. dome critic management styles 
. performance management 
. inclusive power (sharing)
. communication 
. delegation (by agreement)
. modern, forward thinking, contemporary
29
Q

What are the 3 basic types of management structure?

A

. functional stricture
. divisional structure
. matrix structure

30
Q

What is the purpose of a management structure?

A

The purpose of a management structure is to arrange work tasks in a coherent manner in order to avoid duplication, waste and inefficiencies.

31
Q

What is the functional structure?

A

. This involves dividing labour by similarity of function, being the task or job that staff do.
. Departments are kept separated and managers are appointed to be responsible for departments.
. EG: accountants(finance) person in advertising (marketing)

32
Q

What are advantages and disadvantages of the functional structure?

A
ADV:
. defined careers pathway for employees
. possibIlity of a high degree of task specialisation
. efficient use of resources
. provisions of good opportunities for skill and knowledge development
. Better decision making 
DIS:
. lack of flexibility 
. narrow departmental focus
. 'empire building' behaviours
33
Q

What is the divisional structure?

A

. commonly used by organisations producing a range of different products and services
. involves grouping employees together through divisions based on customer, product, process or location
. decision making is centralised and divisional has enhanced horizontal communication
. EG. grouping employees by product such as Cadbury Schweppes, could mean the divisions are confectionary products, soft drinks and beverages

34
Q

What are advantages and disadvantages of the Divisional structure?

A

ADV:
. direction of expertise at specific customer, products, regions and processes
. encouragement if cooperation between organisational departments
. greater flexibility in adapting to environmental change
DIS:
. reduced benefits of economies of scale work could be duplicated
. the potential to promote rivalry between divisions

35
Q

What are the potential divisions in divisional structure?

A

. COSTUMER structure (the grouping of jobs according to customers being served eg. wholesale or retail, corporate or private)
. GEOGRAPHIC (location) structure (the grouping of jobs according to their location eg. region or state, national or international)
. PRODUCT structure (the grouping of jobs and people based k. single products or service eg. Cadbury schweppes grouping according to confectionary, beverages, ice cream etc.)
. PROCESS structure (the grouping of jobs or people who are part of the same process eg. car manufacturers can arrange their plant activities according to the processes required in purchasing, production and order fulfilment)

36
Q

What is the matrix structure?

A

. involve bringing specialists together based on functions they perform to work in teams to solve specific problems or take on projects
. decision making enhanced is decentralised and matrix structures are also flexible
. the term matrix is used to describe this approach because a grid is created over the top
. purpose is to support more cross-functional communication between departments

37
Q

What are the advantages and disadvantages if matrix structure?

A
ADV:
. enhanced flexibility 
. enhanced communication 
. enhanced decision making
. pooled expertise 
DIS:
. decisions made in project teams can sometimes undermine like authority
. potential for 'unity of command' principle to be challenged
38
Q

What are similarities and differences between the Functional and Divisional structure?

A
SIMILARITIES:
. Both have management at the top
. Rivalry between departments/divisions
. Chain of command/line of authority
. Centralised decisions
DIFFERENCES: 
. FS are divided based on management whilst DS are divided based on customers, location, product or process
. DS is more flexible
38
Q

What are the similarities and differences between the functional and matrix structure?

A

SIMILARITIES:
. Both have management at the top
. Both bring specialists together
. Expertise across organisation due to grouping
DIFFERENCES:
. MS has employees working with different people in teams whilst FS has employees working with same people
. MS decision making is decentralised whilst FS is centralised

39
Q

What are the similarities and differences between the divisional and matrix structure?

A

SIMILARITIES:
. Enhanced communication
. Manager can see what is happening in each division
DIFFERENCES:
. DS has employees grouped by process, product, location or costumer whereas MS groups employees in teams

40
Q

Why is policy development and procedures so important?

A

Because when developed and implemented they establish and communicate basic expectations about behaviour, conduct and decision making.

41
Q

What is a policy?

A

A policy is a set of broad guidelines to be followed by all employees when dealing with important areas of decision making. They should be reviewed regularly and changed if necessary, using a policy development process.

42
Q

What is a procedure?

A

A procedure is a series of actions enabling a policy to be put into practice. It can also be used to resolve a dispute brought about by a breach of policy.

43
Q

What is a typical policy development process? remember to number steps

A

PACDRAM

  1. Problem (identify issue)
  2. Analyse (research business environments)
  3. Consult (stakeholders)
  4. Draft (a policy for review by stakeholders)
  5. Review (the policy)
  6. Approve (and distribute the new policy)
  7. Monitor (evaluate the policy)
44
Q

Explain policy development.

A
  1. The need for a policy usually arises from an issue which needs to be resolved.
  2. Then research and analysis of the business environments takes place.
  3. Following step 2 a summary of changes should be provided to all stakeholders, in return for feedback.
  4. With consideration of stakeholders feedback, a draft policy would then be written and sent for review by stakeholders once more.
  5. When the draft comes back it is revised and presented to senior management for approval.
  6. Once approved this policy is distributed and clearly communicated to staff.
  7. The final step is to monitor and evaluate the policy to ensure it is easily understood and being followed.
45
Q

What is ethically responsible management?

A

This refers to processes of abiding by moral standards and doing the ‘right’ thing in the interests of all stakeholders. Therefore ethical management isn’t concerned with legal obligations but instead trying to definitively say what is ‘right’ and ‘wrong’.

46
Q

What are examples of ethical issues?

A

. fairness and honesty
. respect for people
. conflict of interest
. financial management

47
Q

Describe the ethical issue of fairness and honesty.

A

. just as they must obey all laws and regulations, society also has expectations
. avoid misleading or deceptive information
. employees expect to be dealt with honestly

48
Q

Describe the ethical issue of respect for people.

A

. the treatment of staff and employees with respect
. can put business in difficult position
. employees may be unhappy (pressure)
. business may be unhappy with an employee

49
Q

Describe the ethical issue of conflict of interest.

A

. occurs when people take advantage of a situation or piece of information for his or her own gain rather than for the employers interest
. fine line between gifts and bribes
. when people turn a blind eye it leads to corruption

50
Q

Describe the ethical issue of financial management?

A

. common to overestimate expenditures and understating revenue to allow for unexpected uncertain events

51
Q

How can organisations encourage ethical behaviour?

A

. not easy to maintain a consistently high degree of ethical behaviour in the real world
. Potential strategy: corporate code of conduct or training and formal proceedings

51
Q

What is corporate code of conduct?

A

A set of ethical standards for managers and employees to uphold

51
Q

What is socially responsible management?

A

The Obligations a business has which are over and above it’s legal responsibilities to the well being if employees and customers, shareholders and community as well as the environment. A socially responsible business will essentially attempt to achieve two goals simultaneously, being the expansion of the business alongside providing for the greater good of society.

52
Q

How has the concept of social responsibility been through an evolutionism Australia?

A

. over the past 70 years attitudes have changed
. employees demand improved market conditions
. consumers want reliable, safe products and conservationists desire careful consideration given to our delicate natural environment
. hard to make everyone happy

53
Q

What is a social report?

A

It outlines what an organisation has done, and is doing with regard to social issue.

54
Q

What is an example of ethically responsible management?

A

Cotton on’s code of conduct stating no tolerance to discrimination or Harassment.

54
Q

What is an example of socially responsible management?

A

Cotton on has examples if social responsibility due to it making the cotton on foundation which raises funds for several projects including infrastructure, eduction, health and sustainability for those in need.

56
Q

What is a business environment?

A

The surrounding conditions in which a business operates.

57
Q

What is the internal environment?

A

it is also known as a micro environment and refers to the conditions/includes factors with which the business has complete control over such are employees, managers, management style, corporate culture and company policies.

58
Q

What are some performance indicators for the internal environment?

A

. staff satisfaction as measured by the level of staff turnover
. level of wastage
. number of workplace accidents

59
Q

What are performance indicators?

A

The specific criteria used to measure the efficiency and effectiveness of the organisations performance. they evaluate performance with in the business by determining whether the objectives have been achieved. this evaluation is done by constantly asking
. how is the organisation performing?
. is the organisation performing as planned?
. has it’s performance improved over time?
. how does it’s performance compare to that of similar organisations?