🎧 New: AI-Generated Podcasts Turn your study notes into engaging audio conversations. Learn more

Effective Management in Business
5 Questions
4 Views

Effective Management in Business

Created by
@GratifyingRhythm

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What are the 4 basic functions of managers?

  • Planning, Organizing, Leading & Controlling (correct)
  • Developing, Analyzing, Implementing & Evaluating
  • Hiring, Training, Supervising & Reporting
  • Selling, Marketing, Customer Service & Accounting
  • What is the difference between goals and objectives in management?

    Objectives are more detailed, short-term, and specific than goals.

    Interpersonal and communication skills are also known as people skills.

    True

    Vision is the clear, shared sense of direction that allows people to attain a common ___.

    <p>goal</p> Signup and view all the answers

    Match the following financial goals with their descriptions:

    <p>Increasing profits = By increasing revenue and reducing costs Increasing share value = Maintaining a high share price through consistent profits Growth = Increasing the size of the business with more outlets or expansion</p> Signup and view all the answers

    Study Notes

    Effective Management

    • Effective management is vital to the success of a business, making the right decisions at the right time to achieve business goals.
    • The 4 basic functions of managers are:
      • Planning: setting up strategic, tactical, and operational plans and establishing plans and objectives.
      • Organising: turning plans into reality by deciding what resources to use and how to use them.
      • Leading: setting standards to work towards and motivating employees to work harder.
      • Controlling: monitoring and evaluating performance to make necessary adjustments.

    Importance of Effective Management

    • Effective management achieves business goals by making the right decisions at the right time.
    • Goals concern:
      • Profitability
      • Sales and market share
      • Growth of the business
      • Share value
      • Community involvement
      • Environmental management

    Key Concepts

    • Objectives: more detailed, short-term, and specific than goals.
    • Efficiency: management decisions that minimize expenses, waste, and costs of operating the business.
    • Outputs: goods and/or services produced by a firm using inputs.
    • Inputs: resources available to the firm, such as materials, facilities, and equipment.
    • Productivity: a measure of how efficiently goods and services are produced.

    Features of Effective Management

    • Planning that anticipates changes in the business environment.
    • Organising resources in the most efficient manner.
    • Skills to lead and inspire staff.
    • Controlling the business to stick to its business plan for success.
    • Effective information management.
    • A range of skills used appropriately for a given situation.

    The 4 Functions of Management

    • Planning: keeping up to date with changes in consumer tastes, technological innovations, and legal reforms.
    • Organising: considering options to solve problems or take advantage of new opportunities.
    • Leading: communicating effectively to all employees at every level of the organisation.
    • Controlling: ensuring the business achieves its goals and objectives using input, concurrent, and feedback controls.

    Skills of Management

    • A range of appropriate skills to use at the right time.
    • Recognising one's own strengths and weaknesses.
    • Interpersonal skills: communicating and dealing with different types of people effectively.
    • Participative and collaborative style of leadership.

    Strategic Planning

    • Long-term planning for a business as a whole developed by senior management.
    • Strategic thinking: thinking long-term, considering the total business environment, and understanding interdependence between departments.

    Vision

    • Clear, shared sense of direction that allows people to attain a common goal.
    • Managers should give others vision and the ability to perform.
    • Without vision, there is no sense of cooperation and commitment, making achieving goals impossible.

    Problem-Solving and Decision-Making

    • Problem-solving involves finding solutions to problems.
    • Managers need to identify the nature of the problem, assess and choose the most appropriate strategy, and implement and monitor results.

    Flexibility and Adaptability to Change

    • Managers must be flexible and adaptable to changes in the external business environment.
    • Successful managers anticipate and adjust to changing circumstances.

    Reconciling Conflicting Interests of Stakeholders

    • Stakeholders: individuals or groups with a vested interest in a business.
    • Businesses must accept responsibility and accountability towards all stakeholders for the promotion and management of change.
    • Responsibilities of management towards stakeholders include change management, social justice, ecological sustainability, compliance with law, and codes of practice.

    Achieving Business Goals

    • Goals should be defined in the early stages of developing a business strategy.
    • Goals should be strategic, meaningful, clear, concise, and achievable.
    • Most businesses establish goals that deal with financial goals and social and environmental goals.

    Financial Goals

    • Profits: maximizing revenue and minimizing costs.
    • Market share: percentage of total sales a business has compared to its competitors.
    • Growth: increasing profitability through expansion.
    • Share price: maintaining a high share price to make the business less vulnerable to corporate raiding or hostile takeover.

    Social Goals

    • Improving the quality of life for employees.
    • Supporting cultural diversity.
    • Promoting human rights and equal opportunities.
    • Supporting charities and community-based organizations.

    Environmental Goals

    • Using production methods that do not limit the ability of future generations to satisfy their needs and wants.
    • Reducing reliance on non-renewable resources.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    Test your understanding of effective management principles, including planning, organizing, leading, and controlling, to achieve business goals.

    More Quizzes Like This

    Top Level Management Functions Quiz
    18 questions
    Management Functions
    6 questions

    Management Functions

    AdventurousSpessartine avatar
    AdventurousSpessartine
    Management Functions and Definition
    8 questions
    Management Functions and Definition
    8 questions
    Use Quizgecko on...
    Browser
    Browser