164 Questions
What is the primary purpose of the management process?
To convert the organisation's resources into products and services
Which of the following is NOT one of the four fundamental management functions?
Purchasing
What is the name of the model that illustrates the management process?
POLC
In which area of management are the four fundamental management functions executed?
Both general management and functional areas of management
What is the outcome of the management process?
Products and services
Which of the following is an example of a functional area of management?
Marketing function
What is the primary reason why planning is important in organisations?
To provide a sense of direction and purpose
Which of the following is NOT a step in the planning process?
Implementing plans
What is the main purpose of establishing planning premises?
To establish the future environment in which the plans are expected to occur
What is the primary barrier to effective planning?
All of the above
How can organisations overcome barriers to effective planning?
All of the above
What is the role of budgeting in the planning process?
To establish the resources available for the manager to carry out the plans
What is the purpose of formulating derivative plans?
To draw up plans which support the initial plan
What is the benefit of contingency planning?
To prepare for potential changes in a turbulent environment
Why is it important for managers to look ahead and anticipate potential changes?
To reduce the impact of change
What is the primary role of planning in organisations?
To provide a means for managers to participate in decision making
What is the primary purpose of forecasting in planning?
To provide a projection of future conditions based on current and historical information
Which type of forecasting predicts future sales?
Sales forecasting
What is the primary purpose of a budget?
To translate plans into quantitative terms
What is the main function of a Gantt chart?
To break down a project into smaller tasks and determine the time required for completion
What is the primary purpose of PERT?
To establish a network of project tasks and their inter-relationships
What is the main reason why organisations need to organise?
All of the above
What is the primary purpose of organisation design?
To make a decision as to what type of organisational structure is sufficiently aligned to the external environment
What is the main advantage of job specialisation?
Increased productivity
What is the primary purpose of departmentalisation?
To group related tasks and activities
What is represented in an organisational chart?
The division of work and departmentalisation of tasks
What is depicted in an organisational chart?
Formal structure of an organisation
What is departmentalisation?
The logical grouping of activities into departments
What is the purpose of the span of control principle?
To determine the number of subordinates reporting to a manager
What is the result of a wider span of control in an organisation?
A flatter organisation
What are the five factors influencing organisation design, according to Cronjé et al. (2004)?
Size, strategy, environment, staff, and culture
What is the central problem of the current day organisation, according to Drucker (1974)?
The organisation of complexity and diversity
According to Ostroff & Smith (1992), what is required to achieve the required levels of corporate performance?
A more horizontal mode of organisation
What do Waterman, Peters & Phillips (1980) assert about structure and organisation?
Structure is not organisation
What is the 7-S model primarily concerned with?
The factors influencing the design of the organisational structure
What is the purpose of the unity of command principle?
To ensure each subordinate reports to only one superior
What is the primary focus of the organisational design process?
Establishing the relationship between structure, strategy, systems, skills, staff, and superordinate goals
What is the primary purpose of forecasting in the planning process?
To predict future outcomes and make informed decisions
What is the term for the number of subordinates who report to a particular manager?
Span of control
Which type of power is based on the leader's ability to punish others?
Coercive power
At which stage of the management process should feed forward control be implemented?
Input Stage
What is the primary purpose of implementing control at strategic control points?
To anticipate and address problems
What is the primary difference between leadership and management, according to Kotter?
Management involves coping with complexity, while leadership involves coping with change
Which of the following is an example of a Physical Resource Control System?
Inventory control
What is the primary purpose of delegation in the leadership process?
To allocate a part of the leader's task to a subordinate with the necessary authority
What is the primary characteristic of expert power?
It is based on the leader's knowledge, skills, and expertise
What is the purpose of implementing concurrent control during the Conversion Stage?
To deal with problems as they occur
Which of the following is a characteristic of an effective control system?
Flexibility
What is the primary focus of the leadership process, according to Jones and George?
The process of influencing and motivating others
What is the purpose of implementing feedback control during the Output Stage?
To address problems after they have occurred
What is the primary purpose of authority in the leadership process?
To provide the leader with the right to give instructions and delegate work
What is the primary difference between leadership and management according to Kotter?
Management is broader in scope than leadership
What is the primary purpose of strategic control?
To study the total organisation's productivity and effectiveness
What is the primary characteristic of referent power?
It is based on the leader's personal characteristics
Which of the following is an example of a Financial Resource Control System?
Budgeting
What is the focus of Trait Theories in leadership?
The personal characteristics and traits of leaders
Which leadership theory focuses on the manner in which the situation impacts on the effectiveness of leadership?
Contingency Theories
What is the primary purpose of implementing control systems in an organisation?
To ensure organisational effectiveness
Which of the following is a characteristic of an effective control system?
Simplicity
What is the primary purpose of the control function in management?
All of the above
How many steps are involved in the control process?
4
What is the primary concern of the Financial Function?
The acquisition of funds
What is the focus of control mechanisms?
Activities relating to the organisation's resources
Which leadership theory focuses on the fit between the leader's style and the maturity of subordinates?
Hersey & Blanchard's model
What is the primary objective of the Marketing Function?
To meet opportunities and threats in a dynamic environment
Which of the four marketing instruments is concerned with the exchange value of a product or service?
Price
What is the primary purpose of management function of Leading?
To initiate substantial innovation and change
Which leadership theory is focused on building consensus and creating an open and inclusive environment?
Female Leadership
What is the primary purpose of the Human Resources Function?
To attract and retain employees
What is the primary objective of attracting human resources in the Human Resources Function?
To engage in human resource planning, recruitment, selection, placement, and induction
What is the primary outcome of the control process?
All of the above
What is the primary role of the Human Resources Function in an organisation?
To assist other managers in fully utilising employees
What is the primary benefit of the Human Resources Function in an organisation?
To achieve organisational excellence
What is the primary purpose of the Operations Function in an organisation?
To manage the production of goods and services
What is the primary purpose of formulating a marketing strategy?
To enable the organisation to reach its target market
When companies place adverts in the newspaper, which of the four marketing instruments is being utilised?
Promotion
What is the main reason why organisations need to improve their learning capabilities and manage complexity and diversity?
Globalisation
What is the challenge that managers face in managing intellectual capital?
Attracting and retaining talented individuals
What role does the HR Function need to change to in order to facilitate the manner in which the organisation deals with organisational challenges?
Partner in strategy execution
What is the focus that HR needs to shift towards, according to Ulrich (1998)?
Deliverables of HR work
What is the challenge that organisations face in order to survive in an environment characterised by change?
Developing the capacity to cope with change
What is the challenge that managers need to overcome in terms of technology?
Remaining ahead of the information curve
What is the overall goal of the management process in an organisation?
To convert resources into products and services
In which functional areas of management are the four fundamental management functions executed?
In all functional areas of management, including general management, financial management, marketing management, and more
What is the first of the four fundamental management functions explored in the management process?
Planning
What is depicted in Figure 4.1?
The management process
What is the primary function of the four fundamental management functions in the management process?
To convert resources into products and services
What is the relationship between the four fundamental management functions and the areas of management?
The four fundamental management functions are executed in both general management and the functional areas of management
What does the organisational chart demonstrate besides the employee-manager relationships?
Each manager’s span of control
Which type of organisational structure emerges naturally from the social relationships between employees?
Informal structure
What is one of the organisational design principles to keep in mind when establishing departments and designing the organisational structure?
Chain of command
What is the primary problem of the current day organisation, according to Drucker (1974)?
The organisation of complexity and diversity
What is the result of a wider span of control in an organisation, according to Smit & Cronjé (2020)?
A flatter organisational structure
Which of the following is NOT one of the underlying forces that influence the design of the organisational structure?
The size of the business
What type of departmentalisation groups activities based on the location of their customers?
Location departmentalisation
According to Ostroff & Smith (1992), what is required to achieve the required levels of corporate performance?
A flatter, more horizontal mode of organisation
What is the primary purpose of the unity of command principle?
To dictate that each subordinate should only report to one superior
What is the purpose of the organisational design principles?
To guide the establishment of departments and design of the organisational structure
What does the concept of span of control refer to?
The number of subordinates who report to a particular manager
What is the primary objective of forecasting in planning?
To predict future sales and technological advancements
What is leadership defined as?
The process by which an individual exerts influence over other people
What is the primary function of a budget in planning?
To translate plans into quantitative terms
What is the main difference between leadership and management according to Kotter?
Management involves coping with complexity, while leadership involves coping with change
What is the primary purpose of Programme Evaluation and Review Technique (PERT)?
To establish a network of project tasks and their inter-relationships
What type of power does a leader have as a result of their hierarchical position within the organisation?
Legitimate power
What is the primary benefit of job specialisation?
All of the above
What is the primary purpose of delegation in the leadership process?
To allocate a part of the leader's task to a subordinate to perform
What is the primary purpose of organisation design?
To determine the most appropriate organisational structure
What is the term for the ability of a leader to command respect, admiration and loyalty?
Referent power
What is the primary purpose of departmentalisation?
To group related tasks and activities
What is the primary focus of the leadership process, according to Jones and George?
To inspire and motivate subordinates to help achieve group or organisational goals
What is the term for the ability of a leader to punish others and instil fear?
Coercive power
What is represented in an organisational chart?
The organisation's structure
What is the result of a wider span of control in an organisation?
Fewer levels of management
What is the primary purpose of scheduling in planning?
To determine the time required for the successful completion of tasks
What is the primary reason why organisations need to organise?
To facilitate effective communication and coordination
What is the term for the process by which an individual exerts influence over other people and inspires, motivates, and directs their activities?
Leadership
What is the primary purpose of the division of work?
To break down a complex task into components
What is the primary reason for planning, according to Jones & George (2022)?
To provide a sense of direction and purpose
What is the outcome of Step 5 in the planning process?
Selecting a course of action
What is a barrier to effective planning, according to Cronjé, et al (2004)?
Lack of environmental knowledge
What is the purpose of Step 3 in the planning process?
Drawing up premises
What is the benefit of contingency planning, according to Cronjé, et al (2004)?
It is beneficial for organisations operating within a turbulent environment
What is the primary purpose of budgeting in the planning process?
To establish the resources available for the manager to carry out the plans
What is the outcome of Step 6 in the planning process?
Selecting a course of action
Why is it important for managers to look ahead and anticipate potential changes, according to Robbins (1997)?
To reduce the impact of change
What is the primary role of planning in organisations, according to Jones & George (2022)?
To provide a means for managers to participate in decision making
What is the primary purpose of Step 1 in the planning process?
Realistically diagnosing the opportunity
What is the primary focus of Trait Theories in leadership?
Personal characteristics and traits
What is the name of the model that focuses on the fit between the leader's style and the maturity of his/her subordinates?
Hersey & Blanchard's model
What is the primary purpose of Control in the management process?
To monitor and regulate the performance of an organisation
What are the four categories of leadership theories?
Trait, Behavioural, Contingency and Transformational Theories
What is the primary benefit of the Contingency Theories of leadership?
They consider the situation and its impact on leadership effectiveness
What is the primary purpose of the control process in organisations?
All of the above
What is the primary focus of the Behavioural Theories of leadership?
The behaviour of successful leaders
What is the purpose of the four steps in the control process?
To monitor and regulate the performance of an organisation
What is the primary difference between leadership and management, according to Kotter?
Leadership is focused on achieving organisational goals, while management is focused on maintaining efficiency
What is the primary benefit of implementing control at strategic control points?
To focus on activities relating to the organisation's resources
What is the main organisational challenge that requires companies to be innovative and creative and encourage the sharing of information amongst employees?
Profitability through Growth
According to Ulrich, what does the HR Function need to become in order to facilitate the manner in which the organisation deals with the above challenges?
A partner in strategy execution, administrative expert, employee champion, and change agent
What is the main challenge that requires managers to learn how to remain ahead of the information curve and effectively utilise information to attain business results?
Technological advancements
What is the primary purpose of implementing control at strategic control points?
To monitor organisational resources
What type of control is implemented during the Input Stage?
Feed forward control
What is the challenge that requires organisations to develop the capacity to cope with change?
Change
What is the main focus of HR according to Ulrich?
More on deliverables of their work and less on just getting their work done
What is the primary purpose of inventory control systems?
To manage physical resources
What is the organisational challenge that requires organisations to attract, assimilate, compensate, and retain talented individuals?
Intellectual Capital
What is the primary characteristic of an effective control system?
Simplicity
What is the primary purpose of performance measurement in Human Resource Control Systems?
To determine labour turnover
What is the primary focus of strategic control?
The organisation's productivity and effectiveness
During which stage of the management process is concurrent control exercised?
Conversion Stage
What is the primary purpose of operational control systems?
To manage physical resources
What is the primary benefit of integrating the management functions of planning and controlling?
It stimulates the revision of organisational plans
What is the primary purpose of quality control systems?
To ensure quality products or services
What is the primary focus of the Financial Function?
The flow of funds, and the acquisition of funds, application of funds, and administration of financial matters
What is the primary purpose of the Marketing Function?
To develop a need-satisfying market offering
Which of the four marketing instruments is being utilised when companies place adverts in the newspaper?
Promotion
What is the primary purpose of the Human Resources Function?
To assist other managers in fully utilising employees
What is involved in the process of human resource planning?
Recruitment, selection, placement, and induction
What is the primary purpose of the operations function?
To acquire and manage physical resources
What is the primary purpose of the purchasing function?
To acquire and manage physical resources
What is the primary focus of the Financial Function, according to Cronjé (2004)?
The flow of funds, and the acquisition of funds, application of funds, and administration of financial matters
What is the primary purpose of the marketing mix, according to Cronjé et al. (2004)?
To develop a need-satisfying market offering
What is the primary purpose of the Human Resources Function, according to Jones and George (2022)?
To assist other managers in fully utilising employees
Study Notes
Management Process
- The management process involves four fundamental management functions: Planning, Organising, Leading, and Controlling (POLC)
- These functions convert an organisation's resources (inputs) into products and services (outputs) required by the organisation's market
Four Fundamental Management Functions
-
Planning: involves setting goals, establishing strategies, and allocating resources to achieve objectives
- Reasons for planning:
- Provides direction and purpose
- Coordinates various departmental functions
- Helps control managers and assess performance
- Reduces impact of change
- Types of organisational plans:
- Standing plans (e.g., policies, procedures)
- Single-use plans (e.g., projects, budgets)
- Steps in the planning process:
- Opportunity awareness
- Establishing goals
- Drawing up premises
- Developing various courses of action
- Evaluating alternatives
- Selecting a course of action
- Formulating derivative plans
- Budgeting
- Reasons for planning:
-
Organising: involves allocating resources, assigning tasks, and structuring the organisation
- Reasons for organising:
- Provides direction and coordination
- Facilitates communication
- Enhances specialisation and efficiency
- Organisation design principles:
- Division of work
- Departmentalisation
- Chain of command
- Unity of command
- Span of control
- Reasons for organising:
-
Leading: involves influencing and motivating others to achieve organisational goals
- Nature and elements of leadership:
- Authority
- Power (legitimate, reward, coercive, referent, expert)
- Influence
- Responsibility and accountability
- Leadership vs management:
- Leadership focuses on coping with change, while management focuses on coping with complexity
- Nature and elements of leadership:
-
Controlling: involves monitoring and regulating organisational performance
- Control process:
- Setting standards
- Measuring performance
- Comparing performance with standards
- Taking corrective action### Controlling Function in Management
- Control process:
- Enables managers to achieve superior efficiency, improves quality of goods/services, and enhances responsiveness to customers
- Comprises four steps:
- Setting performance standards
- Measuring actual performance
- Comparing actual performance with standards
- Taking corrective action
Focus of Control
- Control mechanisms should focus on activities related to the organisation's resources at strategic control points
- Strategic control points exist at different stages of the management process:
- Input stage: feed forward control (anticipate problems before they occur)
- Conversion stage: concurrent control (deal with problems as they occur)
- Output stage: feedback control (address problems after they have arisen)
Control Systems
- Physical resource control systems:
- Inventory control (economic ordering quantity, materials requirements planning, just-in-time)
- Operational control (PERT, linear programming, break-even analysis)
- Quality control (Total Quality Management)
- Financial resource control systems:
- Budgeting
- Financial analysis
- Information resource control systems
- Human resource control systems:
- Performance measurement
- Ratio analysis (labour turnover, absenteeism, work force composition)
Characteristics of an Effective Control System
- Integration with management functions of planning and controlling
- Flexibility to accommodate adjustments to organisational plans
- Accuracy in providing an objective picture of the organisation's situation
- Timeliness in providing control data to management
- Simplicity to avoid complexity that hampers manager's utilisation of the system
Areas of Management
- General Management:
- Planning
- Organising
- Leading
- Controlling
- Functional areas of management:
- Financial function
- Marketing function
- Human resources function
- Operations function
- Purchasing function
Financial Function
- Concerned with the flow of funds, acquisition of funds, application of funds, and administration of financial matters
- Interacts with other management areas, related disciplines, and the environment
Marketing Function
- Involves developing and transferring a need-satisfying market offering to consumers
- Formulates a marketing strategy, including decisions about the four Ps:
- Product
- Price
- Place (distribution)
- Promotion (marketing communication)
Human Resources Function
- Attracts, retains, and develops employees to contribute to organisational goals
- Involves human resource planning, recruitment, selection, placement, induction, performance management, remuneration, health and safety, and labour relations
- Ulrich's arguments for the importance of HR in achieving organisational excellence
This quiz explores the four fundamental management functions: Planning, Organising, Leading and Controlling (POLC). It covers the execution of these functions in general management and functional areas of management. Test your knowledge of the management process!
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
