5a. Define the management process
A. Most businesses require leaders who can help provide vision and guide the different elements of the business process, such as idea generation, production, accounting, marketing, and customer service, so they fit together to create an efficient system, someone who can see the "big picture".
- Define the four functions of management: planning, organizing, directing (or leading), and controlling.
- Name an example of actions a manager performs for each of these four functions.
- What is the difference between efficiency and effectiveness?
- How do managers combine efficiency and effectiveness for managerial success?
Review Managing for Business Success and "Management" on page 249 of Introduction to Business.
5b. Describe how management contributes to the success or failure of a business
The leadership who is responsible for running a business can greatly impact whether it fails or succeeds. These managers are not only responsible for making sure the organization runs smoothly, but they often play a direct role in determining the focus the business takes and help determine its priorities. Leaders can play a large role in helping their employees perform their jobs well to succeed. They can also create additional unnecessary and frustrating roadblocks employees need to circumnavigate.
- Define a strategic plan.
- Describe how managers craft a company or organizational mission statement.
- How do managers establish a positive corporate or organizational culture in their business?
- Name some tactical and operational plans that managers use to help their businesses succeed, such as during times of hardship.
Review Managing for Business Success and "Management", "Mission Statement", and "Corporate Culture" on pages 249-250 of Introduction to Business.
5c. Differentiate among various management styles
A. We can describe leadership styles from controlling to hands-off.
- Define three different leadership styles: autocratic, democratic, and laissez-faire.
- Name some benefits and disadvantages to businesses that exhibit each of these three types of leadership styles.
- Are some industries more suited to these different leadership styles?
5d. Identify the business implications of corporate mission, corporate culture, corporate social responsibility, human resource management, and labor unions
A. During the interview process, you should try to determine the corporate mission, corporate culture, and commitment toward corporate social responsibility, to determine whether you would like to work for a company that promotes these types of activities and workplace values.
The type of culture the leadership conveys to its employees and to its customers will often influence how well the leaders and employees work together, how the company is organized, and whether the employees feel they are responsible for promoting certain activities within their social community. Note that we also discussed corporate social responsibility in Unit 1 of this study guide.
- Define corporate mission, corporate culture, corporate social responsibility
- Define human resource management and labor unions.
- Why should potential employees understand the corporate mission and culture before accepting a position in a company?
Review Planning and "Mission Statement" and "Corporate Culture" on pages 249–250 of Introduction to Business.
B. While most businesses focus on their primary mission to meet the needs of their communities by providing products and services their consumers want and need, many customers expect businesses to make a positive contribution to their community. At the very least, they should not cause any harm.
- Why do businesses try to limit the negative effects of their business operations to their community?
- Name five examples of how companies promote corporate social responsibility.
Review Corporate Social Responsibility and "Corporate Responsibilities" on page 252 of Introduction to Business. Pay attention to the infographic that summarizes a company's economic, legal, ethical, and proactive responsibilities.
C. When applying for a position, you should review the company's human resource management policies to gauge the financial and social benefits of working for the company and see how the employees resolve any disputes that may arise. You should also see whether a labor union will be available to represent you on these issues.
Human resource managers determine the human resource needs for different parts of the company, recruiting and hiring people to fill job openings, training employees so they can perform their jobs successfully, compensating employees fairly, performing evaluations, helping resolve conflict, and, at times, letting employees go if they are not performing effectively.
- What does a job analysis entail?
- Name five common employee benefits.
- Name five less common employee benefits.
- Define a flexible workplace.
- Why is it in the best interest of the employer to offer these benefits?
Review Human Resource Management and "Employee Benefits Overview" on pages 256–258 of Introduction to Business.
D. Labor unions can benefit employees and employers. For the most part, the role of labor unions has changed as collective bargaining has become more of a collaborative effort between the bargaining unit and management.
- Define a labor union.
- Define collective bargaining.
- How do employees benefit from the labor unions that operate at the companies where they work?
- Why do some companies discourage labor unions from operating within their businesses?
Review Labor Unions and "Unions" on pages 263–264 of Introduction to Business.
5e. Describe the steps in conducting labor negotiations
A. Let's look at what a labor negotiation involves.
- Define and describe the differences between negotiation, mediation, and arbitration.
- Define a boycott, strike, lockout, and strikebreaker.
- Describe how the negotiation process between labor and management works.
Review Labor Unions and "Unions" on pages 263–264 of Introduction to Business.
5f. Describe business law concepts that apply to business
A. In our introductory course to business, let's review three business law concepts: business contracts, risk management, and bankruptcy.
Businesses create and enter into contracts with other businesses and with individuals to delineate the terms of any financial agreements they have with one another.
- Define a contract.
- Define three sources of contract law: case law, statutory law, and International Sales Law.
- Define four elements of contracts:
- explicitness – express, implied, and quasi;
- mutuality – bilateral and unilateral;
- enforceability – void, voidable and unenforceable; and
- degree of completion – execution.
Review General Perspectives on Contracts, Sources of Contract Law, and Basic Taxonomy of Contracts.
B. Businesses manage the risks they encounter in four general ways: avoidance, reduction, sharing or transference, and assuming.
- Define risk management.
- Define four strategies businesses use to manage risk: risk avoidance (eliminate), risk reduction (mitigate), risk sharing (transfer), risk retention (accept and budget for).
- Name some sources of risk businesses experience.
- Which of the four strategies for managing risk explains why businesses purchase insurance?
Review Risk Management.
C. Businesses can fail for a variety of reasons that are within and outside their control. When this happens, business managers need to choose the best form of bankruptcy to legally disband or restructure their business.
- Define three forms of bankruptcy: business bankruptcy – Chapter 7, business reorganization – Chapter 11, and personal bankruptcy – Chapter 13.
- Which form of bankruptcy disbands the business?
- Which form of bankruptcy allows the business to restructure just one debt?
Review What is Business Bankruptcy?.
Unit 5 Vocabulary
Be sure you understand these terms as you study for the final exam. Try to think of the reason why each term is included.
- Autocratic leadership
- Case law
- Chapter 7 business bankruptcy
- Chapter 11 business reorganization
- Chapter 13 personal bankruptcy
- Collective bargaining
- Corporate culture
- Corporate mission
- Corporate social responsibility
- Democratic leadership
- Economic model
- Employee benefit
- Flexible workplace
- Human resource
- International sales law
- Job analysis
- Job description
- Job evaluation
- Job specification
- Labor union
- Laissez-faire leadership
- Mission statement
- Operational plan
- Risk assumption
- Risk avoidance
- Risk reduction
- Risk transfer
- Situational leadership
- Social responsibility
- Socio-economic model
- Statutory law
- Strategic plan
- Tactical plan