Management Principles Revision Sheet PDF

Management Principles Exam: **Management** is the process in which managers engage to achieve organisational goals through the deployment of human, financial, knowledge and physical assets. **Planning:** **Types:** - [Strategic Plan]: 5 year, long term - [Tactical Plan]: Short term, strateg...

Management Principles Exam: **Management** is the process in which managers engage to achieve organisational goals through the deployment of human, financial, knowledge and physical assets. **Planning:** **Types:** - [Strategic Plan]: 5 year, long term - [Tactical Plan]: Short term, strategic plan broken up into short term actions - [Operational Planning]: day to day running of the business - [Mission Statement:] outlines businesses goal **Techniques:** - [MBO (Managing by Objectives):] This is for subordinates. Manager sets performance standards that must be met, the subordinate will set their own goals based on their standards, then the goals and standards are joined together and a timeframe is set, there will be performance reviews and feedback is required. - [SWOT Analysis:] Analyse the strengths, weaknesses, opportunities and threats to a business. - [Miles and Snow Typology:] identifies 4 types of competitive strategies for a business to use to gain a competitive advantage: - Prospector: continually looking for new opportunities and markets. - Defender: maintain growth levels by protecting current territory and keep customers satisfied - Analyser: Combination of 1 and 2, keeps market while having a moderate degree of innovation - Reactor: No real approach, just reacts to changes made by competitors. - [Boston Consulting Group Matrix:] This has a focus on the Product Portfolio, it considers the rate of growth and the market share that is held by the organisation **Decision Making:** **Types:** - Programmed: Everyday decision making involving the rules and procedures, this is taken at lower levels - Non-Programmed: taken at higher levels and its uses judgement and creativity to make the decision. **Decision Making Process:** - Problem Identification and Diagnosis - Identifying alternatives - Evaluating alternatives - Choice of Alternative - Implementing the Decision - Evaluating The Decision **Approaches to Decision Making:** - [Rational Model:] Manager will be rational in decision making - [Bounded Rationality:] Managers are being rational but there is some uncertainty, they must use their intuition and judgement. - [The Political Model:] Identify the sources of power in an organisation: - Legitimate: Position - Reward: reward someone if they do something - Expert: Knowledge and expertise - Coercive: getting someone to do something they otherwise wouldn't have done - [Escalation of Commitment:] Deals with why people still pursue things that are failing: - Sunk Costs: the money is already spent so no point turning back now - Confirmation Bias: people believe in their idea and they may ignore any evidence that does not support their decision **Organisational Design:** **Difference between Structural Configuration and Structural Operation:** **Structural Configuration** **Structural Operation** ------------------------------ -------------------------- Division of Labour Formalisation Span of Control Decision Making Hierarchy Levels Responsibility Departmentalisation Authority **Types of Departmentalisations:** - [Functional Departmentalisation:] broken up into its different functions: marketing, factory etc - [Geographical Departmentalisation:] broken up into the different locations - [Product Departmentalisation:] broken up into different products - [Mixed Departmentalisation:] a mixture of all the Departmentalisations. **The Mitzberg Framework:** [Simple Structure-] early phase of a developing business, associated with start-ups [Machine Bureaucracy:] There is a lot of rules and hierarchy, [Professional Bureaucracy:] there is a hierarchy [Divisional Structure:] divide because of scale, they may divide into locations [Adhocracy]: its difficult to understand who does what. It is all over the place **How Organisation has evolved:** - [Moving away from bureaucracy] to be more flexible in terms of structure. **Human Resource:** **Key Areas:** 1. **[Human Resource Planning Process: ]** a. **Demand Analysis: estimation of quality and quantity of HR** b. **Supply Analysis: estimation of supply of labour** c. **Estimate Deficits: comparision of results: surplus or deficit** d. **Prepare Action Plan** 2. **[Recruitment:] attracting a group of potential candidates. Broken into 2 stages: [ ]** 1. **Background Stage: accurate description of job and the detailed description of the skills needed.** 2. **Recruitment Stage: looking at CVs, looking at transfers etc.** 3. **[Selection:] Conducting interviews, Checking references, conducting selection tests like: IQ tests, Aptitude Tests, Personality Tests.** 4. **[Pay and Benefits:] Rewarding employees, intrinsically (challenges/responsibility) or extrinsically (pay, job secuirity)** 5. **[Performance Appraisal:] A periodic assessment of an employees performance,** 6. **[Training and Development:] training and developing employees.** **List:** - **Human Resource Planning** - **Recruitment** - **Selection** - **Pay and Benefits** - **Performance Appraisal** - **Training and Development** **Leadership:** **Importance of Leadership in Organisational Functioning:** - Leadership is about getting results through people and is defined as "a process of social influence in which one person garners the help and support of others in task accomplishment" **Theories of Leaderships:** - **[Trait:] Leaders are born not made, it is thought that leaders inherit a trait that makes them a leader.** - **[Behavioural:]** idea is that behaviours differentiate leaders from non-leaders, - **[Contingency Theory:]** this means that the prediction of who will be a leader does not lie in traits or behaviours. It also means that there is no single best leadership style it all depends on the situation. - [Charismatic Ideas:] This identifies behaviours that differentiate charismatic leaders from non-charismatic counterparts. It is closely aligned with the idea of inspiration and influence rather than control or direct supervision. **Motivation:** **Content Vs Process Theories:** **Content Theories:** - [Maslow's Hierarchy of Needs:] Self Actualisation, Esteem, Social, Safety, Physiological - [Alderfer's Existence relatedness growth (ERG):] Focuses on Existence (Physiological), Relatedness (Social) and Growth (Self Respect) in that order. - [McClelland's achievement Theory:] identified three different motivational needs: Achievement (feel accomplished), Affiliation (feel loved and liked by others) and Power (feel a sense of control) - [Herzberg's Two Factory Theory:] he looked at factors that satisfied people (motivators) and things that dissatisfied people (hygiene factors) **Process Theories:** - [McGregor's Theory X and Theory Y] - [Vrooms Expectancy Theory]: Motivation=Expectancy x Instrumentality x Valence - [Adams Equity Theory: ] Motivation: - Explains why people behave as they do or why people choose alternative forms of behaviour in order to achieve certain outcomes **Control** **Control Process:** - Setting Standards - Measuring and Comparing Performance - Taking corrective Action **Types of Control:** - Feedforward Control: aimed at preventing mistakes before they happen - Concurrent Control: Control of the inputs and outputs - Feedback Control: Control of the outputs making sure they meet the standards **Financial Controls:** - Budgetary Control - Break even analysis **Non-Financial Control:** - Gantt - TQM