fundamentals of business revision

What is a team in the context of organizations?

A team is two or more people who have regular interaction and share performance goals.

What are the main dilemmas of working in teams?

Giving up independence, dealing with free riders, and potential dysfunctionality.

What must teams do to increase effectiveness?

Define roles, establish norms, and set goals.

What are the five stages of the Team Life Cycle Model?

Forming, Storming, Norming, Performing, and Adjourning.

What is the purpose of effective team leadership?

To rally people around a compelling purpose, share power, admit ignorance, benefit from diverse thinking, and learn from each other.

What are common causes of team conflict?

Competition over resources, communication breakdowns, lack of trust, differing or unclear goals, and imposter syndrome.

What is management?

The executive function of an organization that builds and coordinates systems to enable others to perform tasks.

What are the four main functions of management?

Planning, Organizing, Leading, and Controlling.

What are the three types of management skills?

Conceptual skills, human skills, and technical skills.

What is the significance of social, political, and economic forces in management?

Managers must understand these forces to navigate environmental turbulence and prepare for opportunities or threats.

What is the classical perspective in management?

The early study of management focusing on scientific management, bureaucratic organizations, and administrative principles.

Who is considered the father of scientific management?

Frederick Winslow Taylor.

What does scientific management focus on?

Improving efficiency and labor productivity, treating workers like machines.

What is Max Weber known for in management theory?

Introducing the bureaucratic theory that emphasises rules and regulations for rational organisations and ensures uniformity in the business

What are Henri Fayol's contributions to management?

He outlined 14 general principles of management and identified five functions of management which are planning, organising, commanding, coordinating and controlling

What is the Humanistic Perspective in management?

It emphasizes understanding human behaviors, needs, attitudes, and social interactions.

What did the Human Relations Movement emphasize?

Control comes from individual workers rather than authoritarian control, with a focus on positive treatment of employees.

What are the main ideas behind Maslow's Hierarchy of Needs?

It outlines a theory of motivation based on fulfilling human needs and reducing dehumanising work.

What is Douglas McGregor's Theory X and Theory Y?

Theory X assumes employees are inherently lazy and need control, while Theory Y assumes employees are self

What is the impact of the Hawthorne studies on management?

They found that better treatment of employees led to increased productivity due to feelings of importance.

What is the role of managers in creating systems for performance?

Managers create systems and conditions that enable others to perform tasks effectively.

What is the importance of defining roles in a team?

Defining roles helps clarify expectations and responsibilities, leading to increased team effectiveness.

What does it mean to 'see the big picture' in management?

It refers to understanding the broader context of social, political, and economic forces affecting the organization.

What is the significance of admitting ignorance in leadership?

It fosters an environment of learning and encourages team members to contribute diverse perspectives.

What should managers do during turbulent times?

They must adapt to rapid changes and effectively communicate and clarify direction and performance expectations.

What is the goal of establishing norms in a team?

To create shared expectations for behavior and performance within the team.

What is the importance of personal satisfaction in team effectiveness?

It contributes to a productive output and the capacity to adapt and learn within the team.

What is a Learning Organisation?

An organisation where all employees are engaged in identifying and solving problems, aiding in adaptation to change.

Who began the discussion about the Learning Organisation?

Peter Senge

What does learning increase in an organisation?

The capacity to develop and grow.

What is Systems Theory in management?

A holistic view of management as interrelated parts working towards a common purpose.

What does the Contingency View emphasize?

The importance of adapting management strategies to situational demands.

What is Total Quality Management?

A management approach that focuses on measuring and monitoring the entire organisation to ensure quality.

What is ethics in a business context?

A code of moral principles and values that govern the behaviours of a person or group regarding right and wrong.

How can one recognize ethical behaviour?

By obeying rules, caring about each other, and making reasoned decisions together.

What is the Utilitarian approach to ethical decision making?

moral behaviours should produce the greatest good for the greatest number

What does the Individualism approach to ethics promote?

Acts are moral when they promote the individual's best long term interests

What is the Moral Rights Approach?

Moral decisions are those that best maintain the rights of those affected.

What is the Justice Approach in ethics?

Decisions must be based on standards of equity, fairness, and impartiality.

What is Distributive Justice?

concerns the fair and equitable distribution of resources and burdens throughout a society.

What is Corporate Social Responsibility (CSR)?

The obligation of organisation management to enhance the welfare and interests of society as well as the organisation.

Who are stakeholders in an organisation?

Any group within or outside the organisation that has a stake in its performance.

What is Sustainable Development?

development which meets the needs of the present without compromising the needs of the future.

What is a Code of Ethics?

A formal statement of the organisation's values regarding ethics and social issues.

What is Whistle blowing?

employee disclosure of illegal, immoral or illegitimate practices.

Why is ethics and social responsibility important in business?

They impact financial performance and customer perception.

What is the purpose of planning in an organisation?

To establish where the organisation should go in the future and prepare for unexpected events.

What is a goal in an organisational context?

A desired future state that the organisation attempts to achieve.

What is a plan in relation to goals?

A blueprint for achieving goals.

What are Strategic Goals?

Official goals that provide broad statements about the organisation's intentions.

What are Tactical Goals?

Goals that help execute major strategic plans within specific departments.

What are Operational Goals?

Results expected from departments, work groups, and individuals at lower levels of the organisation.

What does SMART stand for in goal setting?

Specific, Measurable, Achievable, Relevant, Time

What is Management by Objectives?

A process of defining goals and monitoring progress to align objectives throughout an organisation.

What is Contingency Planning?

Plans for emergencies, setbacks, or unexpected conditions.

What is Strategic Management?

Plans and actions that lead to superior competitive standing in the market.

What is the purpose of a strategy?

To achieve competitive advantage through resource allocation and activities for dealing with the environment.

What are the levels of strategy?

Corporate, business and functional

What is the BCG Matrix used for?

To organize businesses along two dimensions—growth and market share.

What is a diversification strategy?

A movement into new lines of business.

What does SWOT analysis assess?

Internal strengths and weaknesses, and external opportunities and threats.

What are the components of Porter's Five Forces?

Potential new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute products, and rivalry among competitors.

What is the significance of mergers and acquisitions in strategy?

They enhance organizational capacity and foster innovation.

What is the role of organizing in strategic management?

To deploy organizational resources to achieve strategic goals.

What does the vertical structure of an organization include?

Formal tasks assigned to individuals and departments, reporting relationships, and systems for coordination.

What is authority in an organizational context?

The formal and legitimate right to make decisions and issue orders.

What is the difference between line and staff authority?

Line departments perform primary tasks, while staff departments provide specialized support.

What factors influence the span of management?

Work stability, similarity of tasks, location of subordinates, training level, and defined rules.

What is centralisation?

that decision authority is located near the top of the organisation

What is decentralisation?

decision authority is pushed downward to lower Organisational levels

What are the traditional approaches to departmentalization?

Functional, divisional, and matrix approaches.

What is the vertical functional approach to organizing?

Grouping into departments based on skills, expertise, and resource use.

What characterizes the divisional approach?

Departments are grouped based on outputs

What is the matrix approach in organizational structure?

Combines functional and divisional structures, improving coordination but creating dual authority lines.

What is the team approach in organizations?

A trend of teamwork that allows organisations to delegate authority and enhance flexibility.

What does the virtual network approach entail?

Extending collaboration beyond the organization through subcontracting and partnerships.

Why is coordination important in organizations?

It enables effective communication and collaboration across departments, preventing failure.

What is the role of responsibility in an organization?

The duty to perform tasks or activities assigned.

What is delegation in management?

The process of transferring authority and responsibility to others.

What is the impact of a lack of coordination?

It can lead to organizational failure.

What is the significance of recognizing decision requirements?

It helps identify problems or opportunities that require managerial action.

What is required for organizational change?

The adoption of new ideas and/or behavior.

What is a New Venture Team?

A separate team responsible for developing and initiating innovations.

What is a Skunkworks?

A small, informal group that focuses on breakthrough ideas.

What are the three challenges requiring Organizational Development (OD)?

Mergers/acquisitions, organizational decline/revitalization, and conflict management.

What is the first step in the Organizational Development process?

Investigating the problem by identifying current processes and skills.

What is the purpose of creating an action plan in Organizational Development?

To outline steps for achieving desired changes.

What are some reasons for resistance to change?

Self interest, uncertainty, lack of understanding and trust and different assessment and goals

What are driving forces and restraining forces?

driving forces are the problems and opportunities that provide motivation to change and restraining forces are the various barriers to change.

What are some tactics for overcoming resistance to change?

Communication, education, participation, negotiation, coercion, and top management support.

What is the meaning of control in management?

The systematic process of regulating organizational activities to meet expectations.

What are common forms of control in organizations?

Financial performance, sales, revenue, and profit.

What is the Balanced Scorecard?

A management control system that balances traditional financial measures with customer service, internal business processes, and learning and growth.

What is an Expense Budget?

A budget that lists costs

What does a Revenue Budget represent?

A budget that outlines expected income.

What is the purpose of a Cash Budget?

To manage cash flow.

What is a Capital Budget used for?

To evaluate major projects and investments.

What do liquidity ratios measure?

A company's ability to cover its short term obligations with its current assets

how do you measure liquidity ratios?

current assets / current liabilities

What is Net Margin?

how much net profit/income is generated as a percentage of revenue ( net income/sales)