Management Lecture 1

Vocabulary practice flashcards covering introductory management, organisational forms, stakeholder analysis, managerial functions, and the distinction between financial and management accounting.

Profit-Seeking Organisation

An organisation whose primary objective is to maximise wealth for the owners or shareholders, including entities such as sole traders, partnerships, and limited or public companies (Ltd and Plc).

Not-for-Profit Organisation

An organisation operating across the public or private sector whose main objective is to maximise benefits for its beneficiaries rather than generate profit for owners.

Stakeholder

Any interested party connected to an organisation, including owners/shareholders, management/directors, employees, creditors, suppliers, and customers.

Planning (Management Function)

The core managerial function of setting organisational objectives and determining how resources will be deployed to achieve them.

Organising (Management Function)

The core managerial function of allocating people, resources, and responsibilities to implement plans effectively.

Leading (Management Function)

The core managerial function of motivating, guiding, and directing people toward achieving organisational goals.

Controlling (Management Function)

The core managerial function of monitoring ongoing performance and taking corrective actions when actual outcomes deviate from expectations.

Senior Managers

Executive-level managers (such as the CEO or CFO) who focus on setting overall organizational direction and ensuring long-term performance.

Middle Managers

Managers (such as a finance manager or operations manager) responsible for implementing broader strategies and running functional departments.

First-Line Managers

Operational supervisors (such as an accounts team leader or sales manager) focused on day-to-day work tasks and direct employee performance.

Financial Accounting

A standardized, periodic system governed by statutory legal requirements that provides past-focused financial statements on the whole business primarily to external users (such as investors, lenders, and regulators).

Management Accounting

A flexible, request-driven accounting system with no legal requirements that supplies past, present, and future segment-level information to support internal operational decision-making, planning, and control.

Core Organisational Functions

The foundational operational departments of an organisation: Human Resources, Sales and Marketing, Operations, IT, and Finance.

Role of Financial Accountants

The practice of recording transactions, preparing standard financial statements, reporting outcomes, complying with statutory standards, and providing reliable assurance to external stakeholders.