BMA501 Fundamentals of Management | Identifying Business Practices

1.

• Planning: It means taking business decisions in advance such as what to do and how to do to achieve desired goals.
  
  
• Organising: It includes activities such as identifying business practices, classifying groups, assigning duties, delegation and coordination of responsibilities.
  
  
• Staffing: Hiring right people for the right
  
  
• Directing: Supervising activities of subordinates, leading, communicating and motivating them to achieve common organisational goals.

2.

Managers can rely on an innovative approach to do things differently, taking risks and exploring new territories which enables them to find new business opportunities and methods to achieve common organisational goals. Nontechnological innovations, such as Steward Leadership approach, Corporate Social Responsibility and others, assist managers in focusing on purpose and engagement during business rather than threats and compensation. Managers play dual roles in managing innovation; firstly in bottomup role they stimulate innovative ideas from subordinates and secondly in topdown role they realise innovative goals and strategies.

3.

Entrepreneurship is referred to willingness and capacity of a person to develop, organise and manage a business while dealing with its risks to generate a profit. Three key themes which stick out from the definition of entrepreneurship include pursuit of opportunities, innovation and growth. Entrepreneurs’ pursue new business opportunities based on innovative ideas, and they implement on them to achieve and sustain growth.

4.

1. Stories: Narrative of significant events occurred in the company creates a positive and collaborative culture. For example, manages at Nike told stories about its past to explain its heritage and to celebrate things together.
   
   
2. Rituals: Corporate rituals performed in repetitive sequences express and reinforce values and culture in the company. For example, ‘cupcake welcomes kit’ for Dropbox’s employees or asking ‘why’ five times at Toyota to find out root cause of an issue.
   
   
3. Language: Use of language to identify procedures within the company unites members to create a positive culture. For example, Microsoft’s employees use unique vocabulary during the office.
   
   
4. Material symbols: It creates a degree of equality between employees which creates a positive culture. For example, a $2 drill symbolises organisational culture at WorldNow.

5.

• Local authority
• Customers
• Suppliers
• Creditors
• Quality assessors
• Investors
• Media

6.

Opportunities

• With the advancement of global economy, managers receive benefit of free trade which reduces barriers such as subsidies, tariffs, valueadded taxes and others.
  
  
• Managers can target new customer base by expanding their operations in new countries easily.

Threats

• Competition between enterprises increases with the expansion of global
  
  
• Ageing population makes it difficult for managers to hire and retain talented employees.

7.Parochialism means viewing the world solely through own eyes without recognising other ways of living and working. It means selfish pettiness or narrowness. Strengths are that managers can focus on increasing efficiency at the workplace which benefits the company in achieving its goals and sustaining a competitive advantage. Weaknesses include hostile working environment, lack of connection with local employees, high retention rates and others.8.

• Multinational organisations: Maintain its operations in multiple countries.
  
  
• Multidomestic organisations: A MNC which decentralises its management and decisions to a local country.
  
  
• Global organisations: A MNC which centralises its management and decisions in the home country.
  
  
• Transnational organisations: A MNC which eliminates structural divisions that impose artificial geographic barriers and organised business lines which reflect a geocentric attitude.

9.Laws and political stability of a country affect the way a business is operated. Noncompliance with laws leads to legal consequences and managers have to pay fine or get punishment for noncompliance. Laws change with political parties, and they provide opportunities or threats to a business. Managers are also required to evaluate economic factors such as tax policies, currency exchange rates, and inflation rates.10.Globalisation is both good and bad for business. Good parts include open market, more opportunities, larger customer base, and increased ability of business expansion. Bad parts include intensification of competition, compliance with new business laws, and price and profit swings. Globalisation is good for customers because of factors such as lower prices, variety of products, high quality at lower price, and priority of customer satisfaction.11.

• World Trade Organisation (WTO)
• South Asian Association of Regional Corporation (SAARC)
• North American Free Trade Agreement (NAFTA)

12.

• Global sourcing: The activity of sourcing from global market for finding most efficient manufacturing location.
  
  
• Exporting: Selling goods and services to customers in other countries.
• Importing: Bringing goods or services into a country for sale which is produced or manufactured elsewhere.
  
  
• Licensing: A business agreement for allowing another corporation to manufacture products for specific payment.
  
  
• Franchising: An agreement between parties which gives one party right to use trademark as well as business procedure to produce, market and sell goods and services.
  
  
• Defining problem
• Understanding strategic agenda
• Identifying desired outcome
• Establishing solution domain
• Identifying alternative solutions
• Establishing criteria for evaluation
• Applying the tools
• Evaluation

13.

Programmed Decisions

Managers made these decisions in the past, and they focus with relatively routine problems in the business. Generally, these decisions are repetitive and structured. They are simple and have a smaller impact.

Nonprogrammed Decisions

These decisions involve scenarios which are new or novel, and for these scenarios, no proven s can be used as a guide. In these situations, managers take decisions which are new and tailored to the situation. They are complex and have longterm impact.

14.

• Understand cultural differences
• Know when to stop
• Spot the unexpected and adapt
• Use effective decisionmaking process which includes
  
  
  • Focus on important factors
  • Logical and consistent
  • Both subjective and objective thinking
  • Only evaluate necessary information
  • Gathering relevant information
  • Straightforward, reliable, easy and flexible method

15.Yes, there is a difference. Humans make mistakes which constitutes a wrong decision. On the other hand, bad decision is made from incompetence, ignorance, and a weak ethical standpoint. Good managers made wrong decisions because it is a simple fact of life. They made bad decisions due to greed, discrimination, biasness, inflexibility or lost sight of the vision. To improve decisionmaking, managers should embrace diversity, comply with code of ethics, be flexible and take ownership of their choices.

 

16.A goal is referred to a measurable and observable end result which has one or more objectives to be achieved in a fixed or flexible timeframe. Stated goals include official statements made by organisations which they want their stakeholders to believe its goals are. On the other hand, real goals referred to such goals which organisations actually pursue. If these goals are far apart, then conflict arises in a corporation.

 

17.Organisations’ plan can differ on criteria such as revenue generation, organisational structure, service delivery and others. During the planning stage, organisational structure is decided by managers whether it should be hierarchical, flat, geographical or others. They also decide revenue generation methods whether it should be markup, arbitrage, licensing, commission or others. The mode of service delivery changed based on organisational requirements as well.

 

18.

• Challenging
• Attainable
• Specific
• Timelimited
• Positive
• Flexible

19.

• Defining the goals
• Finding congruence
• Performing ecology check
• Developing a blueprint
• Drawing up an action plan

20.Project management is referred to the act of initiating, planning, executing, controlling and executing a team’s work to achieve specific goals and meet specific criteria in specific timeframe effectively. Following is the project management process.

• Initiation: Starting point of the project to gather details and prove eligibility of the project.
• Planning: Paying detailed attention to the process of the project to avoid unpredictable and negative consequences.
• Execution: Executing or performing the activities of the project to achieve its goals.
• Control: Controlling the project activities by adhering to protocols such as communication, project and quality assurance test plan.
• Evaluation: Evaluation of results to determine the success or failure of the project.

21.

Ecommerce strategy: Organisations can use the internet to offer its products or services to wider range of customers. For example, Amazon offers its products and services across the globe which provides it a competitive advantage.

Customer engagement strategy: Engaging with customers and collecting their feedback online is an effective strategy. For example, Starbucks has made a positive brand image by interacting with its customers online, resolving their queries and collecting feedback.

Online marketing strategy: Companies can take advantage of online sources to market their products to a global audience. For example, Domino’s uses online marketing to spread information about its new products or offers to a wider audience.

22.

Cost leadership strategy: Companies get an “edge” in sales over their competitors by increasing market share by reducing prices and increasing profits while reducing costs. Examples include WalMart, McDonalds and Southwest Airline.

Differentiation strategy: Differentiation of products or services to make them more attractive from competitors’ products by improving features, support, durability, functionality and brand image. Examples include Whole Foods and Airbnb.

Focus strategy: Corporations can use this strategy to focus on particular niche markets by understanding its dynamics and the unique needs of customers and by developing lowcost and wellspecified products for the market. Examples include PepsiCo, TOMS and Frog Box.

23.When a circumstance or factor puts a corporation in superior or favourable position than compared to its competitors, then it is called a competitive advantage. For example, Amazon has dominated the ecommerce market with services such as Amazon prime, sameday delivery and others. Apple Inc. has a competitive advantage due to high popularity of iPhone and its control over both hardware and software integration.

 

24.

• Competitive rivalry: Number of competitors and their strengths in the industry.
• Supplier power: Suppliers ability to increase prices of their products.
• Buyer power: Customers power to drive company’s prices down.
• Threat of substitution: Likelihood of customers finding similar products or services
• Threat of new entry: Competitors ability to enter into the market

25.BCG matrix is used by enterprises to analyse products as per their growth and market share by providing them growth rating and comparing them with the largest competitors over the next three years. It is useful for businesses to determine future profit margin to decide where to invest.

• Stars: High growth and high market share products
• Cash cows: Low growth but high market share products
• Dogs: Low growth and low market share products
• Question marks: high growth and low market share products

26.

• Growth level strategy: Suitable for establishing a value proposition and defining ideal customers and key
  
  
• Diversification strategy: Suitable for limiting number of products and entering new markets.
  
  
• Stability strategy: Suitable when the company reach its optimal market share to maintain market share.

27.

• By penetrating new market to increase sales. For example, Amazon opened Whole Foods Market Inc. to enter new
  
  
• By developing market by expanding product range. For example, launch of cloud and music services by Apple Inc.
  
  
• Through product expansion by adding new features or product line. For example, adding new products based on customer preference by McDonald's.
  
  
• Acquiring other successful business, for example, purchase of Marvel Studios and Fox by Disney.

28.

• Establishing vision
• Analysing opportunities and threats
• Analysing internet strengths and weaknesses
• Conducting SWOT
• Implementing the strategy
• Strategic followup

29.Organisational behaviour studies groups and individuals in an organisation setting. Its goal is to describe, understand, predict and control human capital in the company.

 

30.

• Productivity
• Workplace misbehave
• Turnover
• Organisational citizenship behaviour
• Absenteeism
• Job satisfaction

31.Attitude is referred to a person’s way of feeling and thinking about something which influences his/her choice of action, response to challenges, rewards, and incentives. Components of attitude include affective, behavioural and cognitive. For example, I feel scared of a snake when I think or see it.32.Cognitive dissonance is a field of psychology which is referred to a mental discomfort which is experienced by people who hold two or more contradictory value, beliefs or ideas. Three factors based on which people cope with cognitive dissonance include anxiety, procrastination and telling white lies.

 

33.The attribution theory provides that people try to understand the behaviour of others by attributing various factors to them such as intentions, beliefs and feelings. Factors while determine externally caused behaviour include effort, luck and ability.

 

34.Perception is referred to people’s ability to become aware by seeing or hearing through their senses to understand the way something is regarded or understood. Factors which shape or distort perception include attitudes, interests and expectation.

 

35.

Same as 33

36.

Advantages

• Evaluation of more information
• Diversity of views
• Expert opinions
• Greater acceptability

Disadvantages

• Timeconsuming
• Lack of onus
• Individual domination
• Compromise decision

37.

• Conflict regarding improvement of working condition which is accomplished by finding solutions together
  
  
• Conflict between groups to make innovations and improvements in the company
  
  
• Awareness regarding the issues faces by both sides

38.

• Emotional intelligence
• Great leadership
• Mix of introverts and extroverts
• Proactive communication
• Sharing of same stories

39.

• Evaluations of difference in culture
• Promoting participation of members in decisionmaking
• Effective communication channels

40.

• Techsavvy
• Familycentric
• Achievementoriented

Evaluation of these attributes assists managers in understanding needs of GenY employees which enable them to build strong relationship and motivate them to achieve their targets.

41.Motivation is referred to both intrinsic and extrinsic factors which result in stimulating energy and desire in people to commit to their job, subject or role and make efforts for attaining certain goals. Three aspects of motivation include direction, intensity and persistence.

 

42.McClelland provided in his research that specific needs of people are acquitted over time, and they are shaped by their life experiences which can be classified into three categories including achievement, affiliation or power. The needs for achievement studied most extensively which are the most important needs as per McClelland which is effective for economic progress of a nation.

 

43.Job design is a function relating to human resource management which focuses on specification of relationship, contents and methods of jobs for satisfying organisational and technical requirements along with social and personal needs of a job. Choosing right employees for right job provides them growth opportunities and managers can continuously challenge workers to perform better through factors such as job enlargement, scope, enrichment, and depth.

 

44.

• Skill variety
• Task identity
• Task significance
• Autonomy
• Feedback

45.Equity theory assists management in identifying balance between inputs (effort) and outputs (income) of employees. It assists in evaluating whether distribution of resources is fair in an organisation. Probable behaviour response from employees in case of inequity includes:

• Strike
• Stealing
• Tardiness
• Leaving early
• Complaining to superiors

46.

Expectancy theory provides that motivation of employees is based on three factors including valence, instrumentality and expectancy. It assumes that behaviour of employees is result of conscious choices made by employees to maximise pleasure and pain. Three variables include expectancy, instrumentality and valence.

47.

• When a person would work (flexible timing)
• Where one works (location of work)
• How much one works (workload)
• Continuity of work (short or longterm breaks)

48.

Professional employees have longterm commitment to their field, thus, they are not motivated by monetary rewards. Contingent workers seek stability/security, thus, managers are required to show their commitment towards these employees to motivate them. Lowskilled employees are motivated by monetary and other financial rewards rather than intrinsic factors. Managers should implement the ‘hierarchy of needs’ theory to evaluate needs of different employees and motivating them.

49.

• Rewarding great work
• Creating a welcoming environment
• Surprising staff members
• Investing in training
• Communicating with team members
• Leading by giving examples

50.

• Enthusiasm
• Availability
• Likeability
• Dedication
• Vision
• Consistency
• Generosity

51.Fiedler’s Contingency Model is based on personality and characteristics of leaders. It provides that there is no best style of leadership; instead, the effectiveness of leadership is based on situation. Leastpreferred coworker (LPC) questionnaire evaluates people who employees are least enjoyed to work with. If a leader scores high, then he is like to be a relationshiporiented leader whereas a low score denotes a taskoriented leader. Factors which determine leadership effectiveness include position power, leadermember relations and task structure.

 

52.Situational leadership provides that effective leadership is based on situations and there is not one best leadership approach which applies to every situation. A successful leader adopts as per situations to achieve his/her goals based on various factors such as experience, education and responsibility.

Four leadership styles include:

Authoritarian: These leaders emphasis on power and decisionmaking to achieve organisational goals.

Paternalistic: These leaders evaluate employee needs and establish a parent/child relationship.

Democratic: These leaders provide power to a group and employees are welcome to participate in decisionmaking

Laissezfaire: These leaders put little input and believe in delegating powers

53.Pathgoal leadership theory focuses on specifying a leader’s behaviour which is suitable for employees and organisational environment to achieve corporate goals. The four leadership behaviour includes:

• Directive: Leaders give directions to employees regarding how they should behaviour, control and perform their tasks
  
  
• Supportive: Leaders behaviour friendly while showing concern for employees’ needs.
  
  
• Participative: Leaders promotes group decisionmaking and share crucial information with subordinates.
  
  
• Achievementoriented: Leaders provide challenging objectives for employees and encourage them to reach their peak performance.

54.Visionary leaders have an idea regarding how to motive employees and promote them to achieve organisational targets. The vision could be religious in which they provide a way for their follower to fulfil the purpose of life. Charismatic leaders are people who gain followers based on their personality traits. These leaders are charming, and they use their traits to make individuals like them and to do tasks in order to achieve organisational goals.

Characteristics of charismatic leaders:

• Maturity
• Humility
• Confidence
• Compassion
• Listening skills

Qualities of visionary leaders:

• Risktaker
• Strategic planner
• Good communicator

55.

• Analyse: Ability to analyse data which is logical and reasonable to put ideas for the team
• Structure: Ability to structure a plan which makes sense to the entire team and which define the process for working with the team
• Connection: Connecting to team members and engaging with them
• Conception: Setting the vision for the team and company’s future

56.

Coercive: Forcing someone to act against their will, for example, establishing rules or policies in the company for actions of employees

Reward: It is opposite of coercive power in which leader motives employees to improve their performance through promotion, increasing pay, additional facilities and others.

Legitimate: It comes from higher authorities, and managers get power due to their position.

Expert: These powers came from knowledge and skills and based on such power expert influences another person’s behaviour.

Referent: It is referred to personal powers of leaders relating to charisma and personality. It is based on each leader individually.

57.

• Being honest and supportive
• Building accountability
• Recognising that building trust takes hard work
• Being honest and supportive
• Being consistent
• Committing to follow through

58.Trust is referred to firm belief in the truth, reliability or ability of someone or something; trust in organisations lead to innovation and better outcomes. Five dimensions of trust include:

• Integrity
• Competence
• Consistency
• Loyalty
• Openness

59.Studies regarding gender and leadership style provide that male leaders tend to be more taskoriented whereas female leaders are more relationshiporiented. Studies have proven that women employ a more participative and democratic style, whereas, men take directive or autocratic approach.