An organisation is a ___ ___ which pursues ___ ___, which controls its ___ ___ and which has a ___ separating it from its ___.
Social Arrangement
Collective Goals
Own Performance
Boundary
Environment
What are the 4 terms from System Theory?
Organisation
Input
Output
Boundary from Environment
What are the 4 Organisation Structures?
Entrepreneurial - boss & workers
Functional - functional departments
Divisional - product or geographic split
Matrix - project teams with 2 bosses, project leader and functional head
Who coined the 5 parts of an Organisation's Structure and what are they?
Mintzberg.
Strategic Apex - top mgt and board
Middle Line - middle managers
Operating Core - day to day workers
Support Staff - IT, accounts
Technostructure - setting standards and procedure (manuals and handbooks)
What are the 3 levels of an Organisation?
Strategic - top mgt and board (5 yr plan)
Tactical - dept mgr (1 yr plan/budget)
Operational - day to day activities (1-2 weeks, dealing with transactions)
What are Formal and Informal Organisations?
Formal Orgs are the tip of the iceberg, designed, known by mgt (org charts, mission, appraisals)
Informal Organisations are hidden and dangerous (group norms, mutual cover ups, ambitions, rumours and gossip)
What are the characteristics of good information?
A ccurate C omplete C ost-beneficial U ser-targeted R elevant A uthoritative T imely E asy-to-use
What are the PESTEL Environmental Influences?
P olitical E conomic S ocial T echnological E cological L egal
What is Porter's 5 Forces Model and what does it do?
It analyses industry attractiveness.
1) Competition
2) Buyer Pressure
3) Supplier Pressure
4) Potential Entrants
5) Substitute Products
What is the Cultural Web and who coined the term?
Its the way we do things around here coined by Charles Handy
What are the 4 Types of Culture and who coined them?
Charles Handy.
1) Power (Zeus) - power only with boss
2) Role (Apollo) - importance on titles, specifications
3) Task (Athens) - getting the job done
4) Person (Dionysus) - private ambitions
What are the 3 levels of culture and who coined them?
Schein
1) Artifacts - visual, clothes, structure
2) Espoused Values - goals, mission
3) Underlying assumptions - the best
Who coined National Cultures and how do they differ?
Hofstede's model explains how National Culture influences how people work. 1) Power distance - told or participate 2) Uncertainty avoidance - risk or try 3) Individualism-collectivism - conform or go your own way 4) Masculinity - dominant or understanding and modest
What are the types of Stakeholders and who are they?
Internal - inside org; employees, mgrs
Connected - by contract; supp, cust, bank
External - neighbours
How do you analyse Stakeholders?
Mendelow's Matrix divide stakeholders by level of interest and power.
High-High - Key Players
High-Low - Keep Informed
Low-High - Keep Satisfied
Low-Low - Minimal Effort
What is Corporate Governance?
It is how companies are directed and controlled and the separation of ownership and control - stewardship.
What are the 5 main principles of Corporate Governance?
1) Leadership - board, CEO, Chairman, NED
2) Effectiveness - time, skills, Nomination Committee
3) Accountability - Audit Committee
4) Remuneration - Remuneration Committee
5) Relations with Stakeholders - AGM
What is Corporate Social Responsibility?
It takes into account the interests of Stakeholders other than Shareholders.
Who coined the Four Ethical Stances and what are they?
Johnson and Scholes.
ST shareholder interest - maximise profits
LT shareholder interest - unethical behaviour will be punished
Multiple shareholder obligations - interest of other stakeholders
Shaper of society - right to change society
What are the 4 bases of Ethical Principles?
1) Consequentialism - consequences of actions or others
2) Duty - to follow morals and values
3) Relativism - many acceptable ethical standpoints
4) Absolutism - based on absolute moral values
What are the 5 Fundamental Principles of the ACCA Code of Ethics and Conduct?
1) Integrity
2) Objectivity
3) Professional Competence
4) Confidentiality
5) Professional Behaviour
What is the difference between internal and external audits?
Internal audits are reports to management about procedures. External audits are reports to board members regarding true and fair representation.
What is GAAP and what does it stand for?
GAAP is a set of rules governing accounting and stands for Generally Accepted Accounting Principles
What are the 2 parts of the framework for internal controls?
1) Control environment which is the culture withing the organisation
2) Control processes such as on credit references, double payments, overtime
What are the 3 main factors to detect and prevent fraud?
1) Control Systems (internal audit)
2) Ethics
3) Training
What is SPAMSOAP and what does it stand for?
SPAMSOAP is 8 types of control levels.
1) S egregation of duties
2) P hysical Control
3) A uthorisation and Approval
4) M anagement Controls
5) S upervisory Controls
6) O rganisation as a Control
7) A rithmetical and Accounting Conrols
8) P ersonal Control
What is Management?
Management is getting things done through other people - Rosemary Stweart
What is Trait Theory?
Trait theory is spotting good managers by their traits, such as intelligence, initiative, self-assurance
Who founded Classical Management and what are the 5 functions?
Henri Fayol
1) Planning
2) Organizing
3) Commanding
4) Coordinating
5) Controlling
but too simplistic and subjective
Who founded Scientific Management and what are the 4 Principles?
Frederick Taylor
1) Science of Work
2) Job Design
3) Financial Reward
4) Cooperation
Increases productivity and wages but dehumanizes work
Who founded the Human Relations School and what was the study based on?
Elton Mayo at the Hawthorne Plant at Western Electronics
1) Varied light conditions did not affect productivity but asking opinions did as people felt special
2) Increased wages did not affect productivity as people liked groups and formed group norms
Who are the 4 main contributors to Style Theories?
1) Peter Drucker
2) Minzberg
3) Ashbridge Management College
4) Blake and Mouton
According to Drucker what are the 3 Functions of Management?
1) Managing a business
2) Managing managers
3) Managing workers and work
According to Drucker what are 5 Categories of Management work?
1) Setting objectives
2) Organizing the group
3) Motivating and communicating
4) Measuring performance
5) Developing people
According to Mitzberg what the 3 Managerial Functions?
1) Interpersonal Roles - leader
2) Information Processing Roles - disseminator
3) Decisional Roles - negotiator, disturbance handler
Describe the difference between Power, Authority, Responsibility and Delegation?
Power - ability to influence
Authority - the right to exercise power
Responsibility - accountability
Delegation - transfer of authority
Describe the difference between Power, Authority, Responsibility and Delegation?
Power - ability to influence
Authority - the right to exercise power
Responsibility - accountability
Delegation - transfer of authority
Describe the difference between Power, Authority, Responsibility and Delegation?
Power - ability to influence
Authority - the right to exercise power
Responsibility - accountability
Delegation - transfer of authority
Describe the difference between Power, Authority, Responsibility and Delegation?
Power - ability to influence
Authority - the right to exercise power
Responsibility - accountability
Delegation - transfer of authority
What are the 4 types of Leadership Style according to the Ashbridge Management College model?
1) Tells
2) Sells
3) Consults
4) Joins
Who coined the Managerial Grid and what is it?
Blake and Mouton
It analyses a manager's approach by concern for tasks and concern for people
1,1 Impoverished - bad at both
1,9 Country Club - having a nice time
5,5 Middle of the Road - good at both
9,1 Authoritarian - no personal relationships
9,9 Team - good leader
Who are the 5 main contributors to Contingency Theories?
1) Adair
2) Handy
3) Bennis
4) Heifetz
5) Fiedler
Who coined Action-Centred Leadership and what does it entail?
Adair
It adds a 3rd variable to Blake and Mouton's Managerial Grid by including Concern for Group as well as tasks and individuals. He says you will concentrate more on one area depending on the situation.
Who coined the Best Fit Theory and what is it?
Handy
You can be either Loose or Tight on the below 4 variables:
1) Leader - participative/autocratic
2) Subordinates - contribute/told
3) Task - complex/routine
4) Environment - generous/short
Will work well it all match
What are the differences between Managers and Leaders as per Bennis?
1) Administers/Innovates
2) Maintains/Develops
3) Focus on Systems/People
4) ST view/LT view
5) Keeps control/inspires trust
6) Asks how and when/what and why
7) Eye on bottom line/horizon
