Introduction to Business Management

Vocabulary flashcards covering the core concepts of business management, including resources, functions, skills, and organizational levels.

Management

The process of utilising an organisations resources to achieve specific objectives through the functions of planning, organising, leading and control.

Effective

Making the right decisions and successfully implementing them; often described as "the end" or "doing the right things."

Efficient

Using resources wisely in a cost-effective manner; often described as "the means" or "doing things right."

Human resources

People who perform the activities necessary to achieve organisational goals; businesses cannot function without them.

Financial resources

The capital required to start and operate the business, consisting of both owners’ contributions and non-owners’ contributions.

Physical Resources

Tangible items needed to perform the activities of an organisation, such as buildings, equipment, computers, vehicles, and tools.

Natural resources

Scarce and limited resources provided by nature, including crude oil, water, and minerals like zinc, copper, iron, gold, and diamonds.

Information resources

Data used to determine customer needs and wants, including management environment data, annual financial statements, and business statistics.

Entrepreneurship

The skills and abilities to start, expand, and manage a new business venture successfully by combining other resources and taking on risk.

Four fundamental management functions

The sequential processes of Planning, Organizing, Leading, and Control.

Transformation process

The process where inputs (resources) are converted through physical and management processes into outputs (performance).

Coordination

One of the six additional management functions where a functional unit is created to achieve business objectives.

Decision-making (Function)

An additional management function where possible solutions are considered to choose the best solution.

Communication (Function)

The transfer of messages between the business and its external and internal environment.

Motivation

When the owner and the manager persuade the employees to voluntarily do their work very well.

Delegation

The allocation of tasks to employees.

Discipline

Conduct that helps to ensure the successful operation of the business.

Technical skills

The ability to use methods, processes, and techniques in a specific discipline to perform a task.

Interpersonal skills

The ability to work with people, understand them, and motivate them.

Conceptual skills

The ability to see the "bigger picture" and formulate creative and strategic plans.

Diagnostic skills

The ability to diagnose and analyse a problem in the business by studying its symptoms and then developing a solution.

Communication skills

The ability to convey ideas and information as well as receive them from others effectively.

Decision-making skills

The ability to choose a plan to solve a problem which produces either consequences or results.

Time management skills

The ability to prioritize work to work efficiently and effectively and delegate responsibility.

Top Management

Strategic managers (CEO, MD, President, VP) responsible for overall direction, vision, mission, and long-term goals.

Middle Management

Functional managers (e.g., Marketing, HR, Finance) who implement top management decisions and supervise lower management using medium term planning.

First-Line/Lower Management

Operational managers (Supervisors, sales manager, office manager) responsible for daily activities and short-term planning.

General Management

All activities necessary for management on all levels throughout the entire business; it cannot be placed in a department of its own.

Operations Management

The management process used specifically in manufacturing businesses and service businesses.

Financial Management

The management of the business’s financial activities.

Purchasing Management

The acquisition of all the resources that a business needs to achieve its objectives.

Administrative Management

The service of obtaining, recording, and analysing information and communicating the results to management.

Marketing Management

The transfer of goods and services to customers to satisfy their needs and the activities that make that transfer possible.

Human resources management

All activities concerned with procuring, developing, compensating, integrating, and retaining personnel.

Public relations management

The evaluation of public attitudes and the promotion of business policies to earn public acceptance and understanding.