Business Management - Nature of management

A comprehensive set of vocabulary flashcards covering key concepts related to business management.

Traditional Definition of Management

The process of coordinating a business’s resources to achieve its goals.

Contemporary Definition of Management

The process of working with and through other people to achieve the goals of the business in a rapidly changing environment.

P-O-L-C Framework

A framework outlining the essential functions of management: Planning, Organising, Leading, Controlling.

Effectiveness vs Efficiency

Effectiveness measures the degree to which a goal has been achieved, while efficiency compares the resources used to achieve a goal against what was achieved.

Skills of Management

Various abilities that enable managers to perform their roles effectively, including interpersonal, communication, strategic thinking, and problem-solving.

Interpersonal Skills

Skills needed to work and communicate effectively with other people and understand their needs.

Strategic Thinking

The skill of assessing the long-term direction and goals of the business.

Vision in Management

A clear, shared sense of direction that guides individuals towards a common goal.

Problem Solving Skills

The ability to identify and implement solutions for unworkable situations.

Decision Making Skills

The process of choosing a specific course of action from available options.

Flexibility and Adaptability

The ability to anticipate and respond to changes in the internal and external business environment.

Stakeholders

Groups and individuals who have a vested interest in a business's activities.

S.M.A.R.T. Goals

Goals that are Specific, Measurable, Achievable, Realistic, and Timebound.

Financial Business Goals

Goals focused on maximizing profits, increasing market share, maximizing growth, and improving share price.

Non-Financial Business Goals

Goals related to social, environmental, and personal interests of a business.

Staff Involvement

Engaging employees in decision-making to enhance productivity and innovation.

Mentoring

The process of developing an individual by offering support and guidance.

Motivation

The internal process that directs and sustains behavior towards achieving goals.

Innovation

Encouraging creative ideas and solutions to maintain competitive advantage.

Conflict Resolution

Strategies employed to reconcile differing interests of stakeholders.