Term
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Definition
| Corporate social responsibility |
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Term
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Definition
| Businesses have CSR's to help guide the business to get a better reputation because they are helping the environment or society. |
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Term
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Definition
-Business objectives
-Mission statements |
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Term
| How to set up objectives? |
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Definition
| Organisations begin a process of objective setting by working from a single objective called a mission statement. |
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Term
| What is a mission statement? |
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Definition
-Intended for the management to provide a focus for all the sub-objectives that the company set out to be effective
-They tend to be vague and lacking precision
-They are for external stakeholders. |
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Term
| Different types of objectives? |
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Definition
-Aim, Internal long term targets for a business
-Objectives, Shorter-term goals to help the business achieve its targets |
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Term
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Definition
Specific
Measurable
Actionable
Relevant
Time-bound |
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Term
| Typical corporate objectives? |
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Definition
-Profit maximisation
-Growth
-Survival |
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Term
| Definition of growth as a corporate objective? |
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Definition
-Sales, market share, asset value, stock market value
-Can increase chances of survival; (Growth and diversification can spread the risk & increase survival chances) |
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Term
| Definition of survival as a corporate objective? And when is it critical? |
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Definition
The risk to large firms is minimal. For small to medium-sized firms survival is critical when:
-Starting and establishing
-Periods of expansion
-Trading becomes difficult
-Recession
-Under threat of takeover |
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Term
| Other typical objectives? |
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Definition
-Cost minimalisation, to increase profit or during a recession
-Satisficing, To satisfy the needs of owners or managers
-Quality
-Image & Social responsibility |
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Term
| Why do businesses have objectives? |
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Definition
-Aims and objectives provide a direction for the business & employees
-without them, managers & employees would not know what they are working towards
-This can be used to set targets for individual departments or employees |
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Term
| Factors that determine corporate objectives? |
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Definition
-Corporate culture, the approach the business takes towards staff and customers (can be decided by cost minimalisation)
-Size and legal form,
Small business (Survival), large business (shareholders, profit)
-Public V private sector
-Age of business |
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Term
| When and why do businesses change their objectives? |
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Definition
-New businesses after surviving look to grow
-Business environments are dynamic. This means a business is looking to grow or increase profit could change to reduce costs
-Unforeseen events or issues means businesses have to change their objectives |
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Term
| What is management by objectives (MBO)? |
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Definition
-Involves setting objectives and targets for different aspects of the organisation
-The managers' job is to make sure that those objectives are achieved given an allocated amount of resources
-The objectives will be achieved, exceeded or fallen short of - requiring immediate attention where appropriate
-Could be done in 2 ways (x and y style, Y workers are more motivated) |
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Term
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Definition
-For it to work targets should be discussed, a form of enrichment
-Managers & subordinates know exactly what to do
-Basing these objectives on the corporate aims makes everyone focus on the same thing
-A way of monitoring and controlling employees |
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Term
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Definition
-Time-consuming to split objectives, by division, department and individuals
-Objectives become outdated quickly
-Doesn't guarantee success
setting unrealistic objectives may create burdon |
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