Business Test#2
People who seek profitable opportunity and take the necessary risks.
Entrepreneur
People who use business principles to solve social problems
Social Entrepreneurs
Characteristics of an entrenrepeur
Vision, energetic, creative, confidence
3 ways of starting a new business
Start a new business, buy an existing business, or purchase a franchise.
Advantages to starting a business
cheaper, keep the profits, freedom
Disadvantages to starting a business
Lack of managerial assistance, no track record
Advantages to buying an existing business
Quick, lower risk, establishes market, ties with people, employees
Disadvantages to buying an existing business
Cost, employees might hate you, why is it for sale.
Advantages to buying a franchise
Management assistance, recognized name, performance record, limited experience
Disadvantages to buying a franchise
large set-up costs, shared profit, regulations, competition
Ways to evaluate opportunities
Personal risks and rewards, gather information, obtain professional advice, prepare a business plan.
What are the three sections of the management hierarchy?
Top: CEO, premier. Middle: Regional manager, director. Supervisory: Supervisor, charisperson
What are the roles of managers?
Plan activities to achieve objectives, organize resources, hire people, direct employees, control people to stay focused
What is Strategic Planning?
Long-range goals set by people at the top of management, far reaching.
Tactical planning
Short term; developing tactics to achieve the strategy.
Operational Planning
Very short-term, step-by-step, detailed plan to achieve the tactical goal.
Contingency Planning
the 'what if; goals.
1st step of planning process
Define the Organizations mission
2nd step of planning process
Assess the organizations competitive positions (SWOT)
3rd planning process
Set goals for the organization
4th planning process
Create strategies for competitive differentiation
5th planning process
Turn strategy into action
6th planning process
Evaluate the results and refine the plan if needed
7th Planning process
Feedback, loop back to the beginning
Internal aspects of SWOT
Strengths and Weaknesses
External aspects of SWOT
Opportunities and Threats
What does Strengths mean in SWOT
Sales team, and patent protection
Weaknesses in SWOT
Lack of managerial depth, financial constraints
Opportunities in SWOT
New tech, alliances, new market
Threats in SWOT
Changing taste, new gov't regulation, enhanced competition
1st step decision making process
See problem or opportunity
2nd decision making process
Develop possible ways of taking actions
3rd decision making process
Evaluate opinion
4th decision making process
Select and carry out one option
5th decision making process
Asses the outcome
6th decision making process
Back to the beginning
Some skills needed by managers
Leadership, technical expertise, conceptual, analytical and people skills
What is Leadership
the ability to direct or inspire people
What is culture
A firm's chared values, beliefs, traditions, philosophies, rules and role models for behaviour
What is an organization
A group of 2 or more people working together in a predetermined fashion to achieve common goals
What is departmentalization
Separating people in different sections based on their different skills
What is HR
The function of attracting, developing and retaining employees who can perform the activities needed to meet organizational goas.
Job analysis
Tasks, required skills and environment
Job description
Duties and priorities
Job specifications
Qualifications based on job analysis
2 types of recruiting
Internal and external sources.
Selection process:
Application, interviewing, testing, and reference checking
What is performance appraisal
Giving advice to help them improve regularly
Examples of compensation
Membership/seniority, job status (effort), qualifications, performance (individual and company)
Different types of employee separation
Turnover, downsizing and outsourcing
Grounds for the Ontario human rights code
citizenship, ethnicities, age, status, gay
What gives an employee the right to refuse unsafe work
The Occupational health and safety act
What is Collective bargaining
Negotiations with management and unions reach agreements about compensation, work hours, and work conditions.
3 ways of resolving disputes in collective bargaining
Conciliator, mediator, arbitrator
What is Maslow's Hierarchy of Needs
a pyramid talking about different stages.
What is equity theory
comparing input to outcome with others. Seeing others being treated fairly for how hard they work or not fairly compared to you.
Expectancy Theory
Motivation relies on 3 things: effort will lead to high performance, high performance will lead to rewards, and rewards will be nice. Effort, performance, rewards
Goal-setting theory
Goals need to be specific, a challenge (not too hard or easy), accepted by employees, and feedback
X and Y theory
X: don't like work, want money.
Y: like work, motivation, goals.
Ouchi's theory
Z: want participation in decision making
Empowerment
Giving employees shared authority, responsibility and decision-making with their managers.
Group meaning
2 or more people who communicate with one another, share a common identity and common goals
Team meaning
A small group whose members have complementary skills who are committed to a common purpose, goals, and approach with accountability
Benefits of a Team
Pooled knowledge and skills, more creative solutions, and more involvement with employees
Characteristics of an effective team
Suitable task, enough people, diversity in skills, clear goals, shared responsibility, good behaviours, authority
1st stage of development
Forming (who, what, get to know)
2nd stage of development
Storming (conflict, participation, who is the leader)
3rd stage of development
Norming (established rules and roles)
4th stage of development
Performing (do the job, handle conflict)
5th stage of development
Adjourning (complete, closure, celebration)
Cohesiveness
Team members feel attracted to the team and motivated to remain a part of it.
Team Norms
Standards of conduct known by team members that guide their behaviour (check emails)
Cognitive/ task conflict
thinking it, solving it, disagreements. These are not a bad thing to have.
Affective/ Relationship conflict
Focused on individuals, personal and emotional
Values conflict
different values and beliefs
Communication
Meaningful exchange of information through messages
Forms of communication
Oral, written, formal, informal, nonverbal
1st stage of crisis management
Respond quickly
2nd stage of crisis management
Appear in public
3rd stage of crisis management
Stick to the facts
4th stage of crisis management
Admit when you don't know the answer
5th stage of crisis management
Face the problems, explain solutions, welcome feedback
6th stage of crisis management
Be clear
Etiquette
Code of behaviour for relationship building
Online Etiquette
Voicemail messages, written communication, acknowledging invitations
Empathy
The ability to consider other people's emotions