INTRODUCTION TO BUSINESS MANAGEMENT
Combined tests 1 & 2
Marks
1 Define the management process 2
The process of transforming (or adding value to) inputs
(resources) into outputs (products and services)
Marks
1 Define the management process 2
The process of transforming (or adding value to) inputs
(resources) into outputs (products and services)
2 Define the meanings of: MNE and SME 2
Multinational Enterprise – a large organization with subsidiary
offices in other countries.
Europe: 250> staff and $50m> ; USA: 500> staff and $100m>
Multinational Enterprise – a large organization with subsidiary
offices in other countries.
Europe: 250> staff and $50m> ; USA: 500> staff and $100m>
Small to Medium Enterprises
Small (<50 staff and <$10m)
Medium (<250 staff and <$50m)
Medium (<250 staff and <$50m)
3 Describe the stages the management process 2
Plan > Organize > Lead > Control
Plan > Organize > Lead > Control
4 Draw a traditional management hierarchy and a flatter management 4
hierarchy and describe the advantages and disadvantages of each
hierarchy and describe the advantages and disadvantages of each
Traditional ;
Formal and centralised management with clear lines of authority and
responsibility, but poor communication between departments and
through multiple levels of management; decision-making is slow and
prone to bureaucracy
responsibility, but poor communication between departments and
through multiple levels of management; decision-making is slow and
prone to bureaucracy
Flatter :
Less formal and decentralised with less levels of management.
Knowledgeable and skilled staff are involved in decision-making.
Cost efficient because there are less managers, but they may have
too many staff to supervise effectively. The fewer the number of
managers and the more open the lines of communication, the
more likely are office politics and power struggles.
too many staff to supervise effectively. The fewer the number of
managers and the more open the lines of communication, the
more likely are office politics and power struggles.
5 Mintzberg classifies management roles into 3 categories and 6
10 roles. State and briefly describe the 3 categories and name
as many roles as you can
10 roles. State and briefly describe the 3 categories and name
as many roles as you can
Informational
Obtaining, analyzing and disseminating information
(monitor, disseminator, spokesperson)
Obtaining, analyzing and disseminating information
(monitor, disseminator, spokesperson)
Interpersonal
Personal communication with subordinates
(authority figure, leader (motivator) and liaison
(external communicator)
(authority figure, leader (motivator) and liaison
(external communicator)
Decisional
Making business decisions and resolving problems
(entrepreneurial, disturbance handler, resource
allocator and negotiator)
(entrepreneurial, disturbance handler, resource
allocator and negotiator)
6 Describe one of the following management models: 4
Frank Gilbreth, Max Weber, Henri Fayol or Mary Follett
Frank Gilbreth, Max Weber, Henri Fayol or Mary Follett
See Boddy, pp 43 - 53
7 What was the difference in management focus between 2
classical and neo-classical management models? Give
examples of proponents of each
classical and neo-classical management models? Give
examples of proponents of each
Classical management models focus on manufacturing process
efficiency, eg Taylor and F. Gilbreth;
Neo-classical models focus on the role, efficiency and motivation
of employees
efficiency, eg Taylor and F. Gilbreth;
Neo-classical models focus on the role, efficiency and motivation
of employees
8 Quinn et al (2003) suggested that there were 4 cultural types 4
that could be defined as being flexible or controlled, and
being focused either internally or externally. Name and position
the 4 types in the relevant quadrant on the chart.
that could be defined as being flexible or controlled, and
being focused either internally or externally. Name and position
the 4 types in the relevant quadrant on the chart.
Flexibility
Human relations Open Systems
Internal ______________________________________ External
Human relations Open Systems
Internal ______________________________________ External
Internal process Rational goal
Control
9 Handy (1993) identified and defined 4 cultural types. 4
What were they?
What were they?
Power: dominant, charismatic, entrepreneurial leader
with implicit rules of behaviour
Role : typically, characterised by a detailed job description
containing specific responsibilities and requirements
with implicit rules of behaviour
Role : typically, characterised by a detailed job description
containing specific responsibilities and requirements
Task: focuses on job completion rather than general role;
each person is valued for what they contribute; typically,
staff work in teams
each person is valued for what they contribute; typically,
staff work in teams
Person: structure is designed to suit the individual. Typical of
small, professional practices, eg doctors and lawyers,
rather than an organization
small, professional practices, eg doctors and lawyers,
rather than an organization
10 Name and define the 4 market structures, and write them 5
from left (Buyer Power) to right (Supplier Power)
from left (Buyer Power) to right (Supplier Power)
Perfect competition - Buyer Power
Monopolistic - Some Buyer Power
Oligopoly - Mostly Supplier Power
Monopoly - Complete Supplier Power
Monopolistic - Some Buyer Power
Oligopoly - Mostly Supplier Power
Monopoly - Complete Supplier Power
11 Michael Porter (1985) identified 5 ‘Forces’ that could be 5
used to analyse the competitive environment of an
industry. Draw the 5 Forces diagram, name and describe
each of the forces, and the 6th factor that he did not include.
used to analyse the competitive environment of an
industry. Draw the 5 Forces diagram, name and describe
each of the forces, and the 6th factor that he did not include.
