Management Concepts and Strategies
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Questions and Answers

What is the primary focus of Selection in the recruitment process?

  • Looking at CVs
  • Conducting interviews and selection tests (correct)
  • Rewarding employees for their performance
  • Recruiting employees from other companies
  • Which of the following is NOT a component of Pay and Benefits?

  • Challenges and responsibilities
  • Intrinsic motivation (correct)
  • Extrinsic rewards
  • Job security
  • Which leadership theory suggests that certain traits predispose individuals to be leaders?

  • Trait Theory (correct)
  • Contingency Theory
  • Behavioural Theory
  • Charismatic Theory
  • What is the focus of Alderfer's ERG theory in motivation?

    <p>Existence, Relatedness, Growth (C)</p> Signup and view all the answers

    What distinguishes charismatic leaders from their non-charismatic counterparts according to leadership theories?

    <p>Their capacity to inspire and influence others (B)</p> Signup and view all the answers

    What is the primary purpose of the operational planning process?

    <p>To manage day-to-day operations (C)</p> Signup and view all the answers

    Which competitive strategy identifies organizations that are reactive to market changes?

    <p>Reactor (A)</p> Signup and view all the answers

    Which decision-making type typically involves lower levels of management and follows established rules?

    <p>Programmed decisions (D)</p> Signup and view all the answers

    What is the focus of the Boston Consulting Group Matrix?

    <p>Market growth rate and share (D)</p> Signup and view all the answers

    In the Managing by Objectives (MBO) approach, who primarily sets the goals?

    <p>Subordinates based on performance standards (A)</p> Signup and view all the answers

    Which element is NOT part of the decision-making process?

    <p>Setting performance standards (D)</p> Signup and view all the answers

    What is a characteristic of the 'Bounded Rationality' approach to decision-making?

    <p>Using intuition and judgment amid uncertainty (D)</p> Signup and view all the answers

    What does a mission statement typically outline for a business?

    <p>Overall goals and purpose (D)</p> Signup and view all the answers

    Which source of power is based on a person's position within an organization?

    <p>Legitimate power (D)</p> Signup and view all the answers

    What psychological phenomenon leads individuals to ignore evidence that contradicts their beliefs?

    <p>Confirmation bias (B)</p> Signup and view all the answers

    In an organization, which type of departmentalisation groups employees based on specific functions like marketing or production?

    <p>Functional departmentalisation (A)</p> Signup and view all the answers

    What is a primary characteristic of a machine bureaucracy?

    <p>Strong emphasis on hierarchical structure (A)</p> Signup and view all the answers

    What does 'demand analysis' refer to in the human resource planning process?

    <p>Estimating the required quality and quantity of HR (B)</p> Signup and view all the answers

    Which structure in Mintzberg's framework is often associated with start-up companies?

    <p>Simple structure (B)</p> Signup and view all the answers

    What phase follows the supply analysis in the human resource planning process?

    <p>Estimate deficits (A)</p> Signup and view all the answers

    What characterizes the adhocracy structure in an organization?

    <p>Fluid roles and unclear responsibilities (A)</p> Signup and view all the answers

    Flashcards

    Legitimate Power

    Power derived from a person's position or role in an organization.

    Escalation of Commitment

    A tendency to continue investing in failing projects even when there's clear evidence the project is failing.

    Functional Departmentalisation

    Organisational structure grouping employees based on their similar skills or specialisations (e.g., marketing, finance).

    Confirmation Bias

    Only looking for information that supports what you already believe.

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    Demand Analysis (HR)

    Estimating the future need for human resources in an organization.

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    Supply Analysis (HR)

    Estimating the availability of potential employees with needed skills.

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    Sunk Costs

    Resources already invested in a failing project, which lead to continuing that project even when it's losing money.

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    Simple Structure (Mintzberg)

    A flat organizational structure common in small, young companies.

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    Strategic Plan

    A long-term plan, typically 5 years or more, outlining the overall direction of a business.

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    Tactical Plan

    A short-term plan, breaking down a strategic plan into smaller, actionable steps.

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    Operational Plan

    A daily plan outlining how to run a business on a day-to-day basis.

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    MBO (Management by Objectives)

    A management technique where managers set performance standards and subordinates set personal goals based on those standards.

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    SWOT Analysis

    A technique used to analyze a business by identifying its Strengths, Weaknesses, Opportunities, and Threats.

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    Programmed Decision

    Everyday decisions made using established rules and procedures at a lower level.

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    Non-Programmed Decision

    Important decisions at a higher level involving judgment and creativity.

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    Bounded Rationality

    Decision-making where managers are rational but also influenced by limitations and uncertainty; making the best choice possible with available information.

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    Human Resource Planning

    A strategic process of forecasting future HR needs and developing plans to meet those needs.

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    Recruitment

    The process of attracting and selecting qualified candidates for open positions.

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    Selection

    Choosing the best candidate from a pool of applicants.

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    Maslow's Hierarchy of Needs - Content Theory

    A theory that suggests individuals are motivated by a hierarchy of needs, starting with basic needs like physiological and safety and progressing to higher-level needs like self-actualization.

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    Leadership - Trait Theory

    A leadership theory that states leaders are born with certain innate traits.

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    Study Notes

    Management

    • Management is the process of using resources (human, financial, knowledge, physical) to achieve organizational goals.

    Planning

    • Strategic Plan: Long-term (5 years) plan.
    • Tactical Plan: Short-term plans derived from the strategic plan.
    • Operational Plan: Daily running of the business.
    • Mission Statement: Outlines the organization's goals.

    Managing by Objectives (MBO)

    • Managers set performance standards for subordinates.
    • Subordinates set their own goals based on standards.
    • Goals and standards are linked with a timeframe.
    • Performance reviews and feedback are needed.

    SWOT Analysis

    • Analysis of Strengths, Weaknesses, Opportunities, and Threats for a business.

    Miles and Snow Typology

    • Prospector: Seeking new opportunities and markets.
    • Defender: Maintaining existing market share and customer satisfaction.
    • Analyzer: Combines prospector and defender strategies.
    • Reactor: Reacting to competitors' actions without a clear strategy.

    Boston Consulting Group Matrix (BCG Matrix)

    • Evaluates product portfolio based on market growth rate and market share.

    Decision Making

    • Programmed Decisions: Everyday decisions based on rules and procedures.
    • Non-programmed Decisions: Decisions requiring judgment and creativity, often made at higher levels.
    • Decision-Making Process:
      • Problem identification and diagnosis
      • Identifying alternatives
      • Evaluating alternatives
      • Choosing an alternative
      • Implementing the decision

    Approaches to Decision Making

    • Rational Model: Making rational decisions.
    • Bounded Rationality: Recognizing limitations and using intuition.
    • Political Model: Considering power sources in the organization.
    • Escalation of Commitment: Continuing a failing project due to sunk costs and confirmation bias.

    Organizational Design

    • Structural Configuration vs Structural Operation
      • Division of Labor: How tasks are divided
      • Span of Control: Number of subordinates a manager supervises
      • Hierarchy Levels: Number of management layers
      • Departmentalisation
        • Functional: Grouping by functions (marketing, production)
        • Geographical: Grouping by location
        • Product: Grouping by product lines
        • Mixed: Combination of the above
    • Mitzberg Framework:
      • Simple Structure: Early-stage businesses, few rules, informal
      • Machine Bureaucracy: Many rules, formal structure, hierarchy
      • Professional Bureaucracy: Highly skilled employees, less emphasis on rules, hierarchies
      • Adhocracy: Flexible structure, adaptable to change

    Human Resource

    • Human Resource Planning: Forecasting need for HR, and recruitment, selection, training, performance appraisal.
    • Recruitment: Attracting candidates
    • Selection: Evaluating candidates
    • Pay and Benefits: Compensation for employees
    • Performance Appraisal: Assessing employee performance
    • Training and Development: Improving employee skills.

    Importance of Leadership

    • Leadership is defined as motivating others to reach common goals.

    Theories of Leadership

    • Trait Theory: Leaders are born not made
    • Behavioral Theory: Leaders have observable behaviors
    • Contingency Theory: Effective leadership is dependent on the situation
    • Charismatic Leadership: Inspiring and influencing others

    Motivation

    • Content Theories: Focus on factors that motivate people (Maslow, Alderfer, McClelland, Herzberg).
    • Process Theories: Explain how motivation takes place (Vroom's Expectancy Theory, Adams Equity Theory).

    Control Process

    • Setting Standards: Establishing performance targets.
    • Measuring and Comparing Performance: Monitoring actual performance against standards.
    • Taking Corrective Action: Addressing performance gaps.
    • Types of Control:
      • Feedforward Control: Preventing issues before they happen
      • Concurrent Control: Managing actions while they are occurring
      • Feedback Control: Monitoring results for improvement

    Financial Controls

    • Budgetary Control: Using budgets to monitor spending.
    • Break-even Analysis: Determining the point where revenue equals costs.

    Non-Financial Controls

    • Gantt Charts
    • Total Quality Management (TQM)

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    Description

    Test your understanding of key management concepts including planning, managing by objectives, and SWOT analysis. This quiz covers strategic, tactical, and operational planning, as well as various management typologies like Miles and Snow. Challenge yourself to ensure you grasp these essential business principles.

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