Business Leadership Flashcards

Business Leadership Exam:

Planning Unit

Planning Overview

Planning is the first function of management, focusing on setting goals and deciding the steps to achieve them.

1. Types of Plans

   • Strategic Plans (Long-term): Created by top management for overall goals.
     Example: Expanding into international markets.

   • Tactical Plans (Medium-term): Created by middle management to support strategic goals.
     Example: A department launching a marketing campaign.

   • Operational Plans (Short-term): Created by lower-level managers for daily tasks.
     Example: Staff scheduling.

2. The Planning Process

The Planning Process (5 Steps):

1. Define Objectives: Set clear, specific goals.

2. Analyze Current Status: Assess available resources and the environment.

3. Develop Premises: Predict challenges and trends.

4. Explore Alternatives: Identify strategies and weigh their pros/cons.

5. Implement & Evaluate: Execute the plan and monitor results.

3. Goals and SMART Criteria Goals need to be SMART:

SMART Goals:

• Specific: Clear and precise.

• Measurable: Progress can be tracked.

• Achievable: Realistic and attainable.

• Relevant: Matches broader objectives.

• Time-bound: Has a set deadline.

Example: “Increase sales by 15% by the end of Q4.”

4. Planning Tools

1. Forecasting: Predict future trends.

2. Contingency Planning: Prepare backup plans for unexpected problems.

3. Scenario Planning: Create plans for best, worst, and likely outcomes.

4. Benchmarking: Compare to industry standards.

5. Challenges in Planning

• Overplanning: Spending too much time planning, not acting.

• Rigid Plans: Failing to adapt to unexpected changes.

• Ignoring Risks: Overlooking uncertainties.

• Lack of Resources: Insufficient time, budget, or staff.

Controlling Unit

Controlling Overview

Controlling is about checking how an organization is performing and fixing problems to make sure goals are met.

1. Controlling Process

Set Standards: Define clear goals.

• Example: Drive-thru time under 3 minutes.

Measure Performance: Collect data to track progress.

• Example: Track customer wait times.

Compare Performance to Standards: Check if goals are met.

• Example: Compare actual times to the 3-minute goal.

Take Corrective Action: Fix problems if goals are not achieved.

• Example: Add more staff to reduce wait times.

2. Types of Control

• Feedforward: Prevent problems before they happen.

  • Example: Stocking supplies ahead of busy periods.

• Concurrent: Correct issues during the task.

  • Example: Quality checks on an assembly line.

• Feedback: Analyze results after completion to improve future performance.

  • Example: Use customer reviews to improve service.

3. Challenges in Controlling

• Unclear Standards: Goals need to be specific and measurable.

• Bad Data: Inaccurate or missing information.

• Resistance to Feedback: Employees rejecting corrective actions.

• Micromanaging: Overcontrolling can lower morale.

4. Progressive Discipline (For Employee Issues)

   • Verbal Warning → Written Warning → Loss of Hours → Termination.

   • Goal: Help employees improve before serious action.

Teams and Collaboration Summary

1. Importance of Teams

Teams are groups of people working together to achieve shared goals. Good teamwork is essential for organizational success.

2. Stages of Team Development

• Forming: Team members meet and get to know each other.

• Roles are unclear, and interactions are polite.

• Storming: Conflicts arise as members figure out roles.

• Miscommunication and personality clashes are common.

• Norming: Members resolve conflicts and build trust.

• Roles are clear, and collaboration improves.

• Performing: Team works efficiently toward goals.

• High trust, effective communication, and focus.

• Adjourning: Team disbands after tasks are completed.

• Reflection and emotional goodbyes may occur.

Stages of Team Development (with Coach Carter Examples)

1. Forming

   • Definition: Team meets and establishes initial goals.

   • Example: Coach Carter introduces a team contract, motivating players with performance objectives.

2. Storming

   • Definition: Conflicts arise as roles and expectations are clarified.

   • Example: Players resist Coach Carter’s strict rules, creating stress and mistrust.

3. Norming

   • Definition: Members build trust and resolve conflicts.

   • Example: Players begin following the contract even when benched, showing respect for team values.

4. Performing

   • Definition: Team works efficiently toward shared goals.

   • Example: Players trust each other and work as a unit, achieving both academic and athletic success.

5. Adjourning

   • Definition: Team disbands after tasks are completed.

   • Example: Team reflects on their journey and says emotional goodbyes.

3. Types of Teams

• Formal Teams: Organized for specific tasks.
  Example: A project team to design a product.

• Informal Teams: Casual groups formed naturally.
  Example: Employees organizing a social event.

• Project Teams/Task Forces: Focused on short-term goals.
  Example: Creating a company event.

• Cross-Functional Teams: Members from different departments.
  Example: A marketing and finance team collaborating.

• Virtual Teams: Work remotely using digital tools.
  Example: Employees across countries working online.

4. Roles of Managers in Teams

1. Team Leader: Guides and supervises the team.

2. Facilitator: Supports the team without micromanaging.

3. Team Member: Works equally with others.

4. External Coach: Provides advice without being involved directly.

5. High-Performing Teams

Successful teams share these traits:

• Clear Goals: Shared purpose and direction.

• Diversity: Varied skills and perspectives.

• Adaptability: Ability to handle change.

• Trust: Strong collaboration and mutual respect.

6. Managing Conflict and Stress

1. Types of Conflict:

   • Task-Related: Disagreement on how to complete a task.

   • Personal Issues: Clashes between team members.

2. Conflict Solutions:

   • Open communication.

   • Mediation by a neutral party.

   • Stress management strategies like breaks or workload adjustments.

7. Why Teams Succeed or Fail

1. Success Factors:

   • Clear goals, good communication, strong leadership, and mutual respect.

2. Failure Factors:

   • Poor leadership, unresolved conflict, and lack of motivation.

Change Unit Overview:

Why Change Matters

• Organizations must adapt to succeed.

• Resistance comes from fear, extra work, or bad timing.

Overcoming Resistance

• Communicate Clearly: Explain the reasons for change.

• Involve Employees: Encourage input and participation.

• Provide Support: Offer training and reassurance.

Types of Change

1. Incremental: Small, gradual improvements.

2. Transformational: Big, fast changes to reshape the organization.

Change Strategies

1. Coercion: Using authority to enforce change.

2. Rational Persuasion: Using data to gain support.

3. Shared Power: Collaborating with employees.

Forces Driving Change

• Internal: Culture, structure, leadership, tasks.

• External: Technology, globalization, laws.

Takeaway

• Manage change with communication, involvement, and support.

• Balance small steps (incremental) with big shifts (transformational).

Social Responsibility Unit Overview 

What is Social Responsibility?

• Acting ethically while benefiting society.

• Balancing profit-making with positive societal impact.

Ethical Decision-Making Process

1. Identify the Ethical Issue: Recognize the problem.

2. Gather the Facts: Collect evidence and details.

3. Evaluate Alternatives: Explore solutions and consequences.

4. Make the Decision: Choose the best course of action.

5. Act and Reflect: Implement the decision and assess its impact.

Social Responsibility Strategies

1. Obstructionist: Avoid responsibility; act unethically.

2. Defensive: Follow laws but do nothing extra.

3. Accommodating: Balance profits with ethical actions.

4. Proactive: Go beyond expectations to help society.

Workplace Ethics

• Key issues: Discrimination, conflicts of interest, harassment, theft.

• Organizations should promote fairness and accountability.

• Harassment: Unwanted actions that cause discomfort, such as sexual harassment.

• Customer/Supplier Dilemmas: Selling customer data for profit without disclosure.

• Workplace Theft: Misusing company resources or time for personal purposes.

Employee Wellness

• Provide health programs, job satisfaction, and balance.

• Build trust through ethical and responsible practices.

Takeaway

• Ethics and social responsibility improve trust and loyalty.

• Balancing societal good with business goals benefits everyone.

Leading 

Definition: Leading focuses on motivating and guiding employees to meet goals.

1. Leadership Styles

Autocratic Leadership:

• The manager makes decisions without asking employees.

• Good for: Emergencies or quick decisions.

• Bad for: Morale, creativity, and teamwork.

• Example: A manager fixes a factory problem without consulting workers.

Democratic Leadership:

• The manager involves employees in decision-making.

• Good for: Collaboration, trust, and innovation.

• Bad for: Slower decision-making.

• Example: A manager asks staff for ideas to improve customer service.

Laissez-Faire Leadership:

• The manager gives employees freedom to work independently.

• Good for: Skilled and creative teams.

• Bad for: Confusion or lack of guidance.

• Example: A design team creates a project with little oversight.

Levels of Management

1. Top-Level Management:

   • Focus: Big decisions, like the company’s vision and strategy.

   • Examples: CEOs, CFOs.

2. Middle-Level Management:

   • Focus: Carrying out top management’s plans in departments.

   • Examples: Department managers.

3. Lower-Level Management:

   • Focus: Managing daily tasks and workers.

   • Examples: Team leaders, supervisors.

Organizing

Organizing involves arranging resources and tasks to achieve goals efficiently.

Organizational Structures

1. Functional Structure:

   • Groups people by job type (e.g., HR, Marketing).

   • Good for: Clear roles, skill development.

   • Bad for: Teams might not communicate well.

2. Matrix Structure:

   • Employees report to two managers: one for their department and one for projects.

   • Good for: Collaboration and flexibility.

   • Bad for: Confusion over who’s in charge.

3. Flat Structure:

   • Few management levels, more freedom for employees.

   • Good for: Fast decisions, teamwork.

   • Bad for: Less supervision and structure.

Communication and Self-Awareness

1. Communication Types:

   • Verbal: Talking in person or on the phone.

   • Non-Verbal: Body language, gestures.

   • Written: Emails, reports.

   • Digital: Video calls, chat tools.

2. Self-Awareness:

   • Knowing your strengths and weaknesses.

   • Example: A manager admits they struggle with delegation and works to improve.

 Stress and Conflict Management

1. Managing Stress:

   • Take breaks, set priorities, and avoid overworking.

2. Resolving Conflict:

   • Open communication.

   • Use a neutral mediator if needed.

   • Focus on solving the problem, not blaming.

8. SWOT Analysis

1. Strengths: Internal advantages.

2. Weaknesses: Internal problems.

3. Opportunities: External chances for growth.

4. Threats: External challenges.