Study Set Content:
Decision-Making process
- Set objectives
- Identify constraints
- Identify alternatives
- Gather appropriate information
- Evaluate alternatives
- Choose the most acceptable alternatives
are vital for any organization to succeed and achieve its goals and objectives.
Management Skills
A manager who fosters (blank) is able to propel the company’s mission and vision or business goals forward with fewer hurdles and objections from internal and external sources.
Management Skills
- According to American social and organizational psychologist the three basic types of management skills include:
Robert Katz
- involve skills that give the managers the ability and the knowledge to use a variety of techniques to achieve their objectives. These skills not only involve operating machines and software, production tools, and pieces of equipment but also the skills needed to boost sales, design different types of products and services, and market the services and the products.
Technical Skills
- These involve the skills managers present in terms of the knowledge and ability for abstract thinking and formulating ideas. The manager is able to see an entire concept, analyze and diagnose a problem, and find creative solutions. This helps the manager to effectively predict hurdles their department or the business as a whole may face.
Conceptual Skills
are the skills that present the managers’ ability to interact, work or relate effectively with people. These skills enable the managers to make use of human potential in the company and motivate the employees for better results.
Human or Interpersonal Skills
is described as the uncertainty about possible damage, injury, or loss. It is an unavoidable part of life
Risk
are associated with negative outcomes.
Risk
is anything that threatens the ability of a person and the organization to accomplish their objectives.
Risk
- several factors related to defining a risk as a threat.
- Some degree of probability that exposure to a hazard will lead to a negative outcome or consequences such as loss, damage, injury, or death.
- Must constitute a hazard.
- Severity or consequences must also be negative
The objectives of good risk management are to:
1. Eliminate risks
2. Minimize risks
3. Shift risks
4. Absorb risks
re generally recognized but a serious
investigation may reveal some that are not usually noted. These
are:
Common risks
Most common risks are generally recognized but a serious
investigation may reveal some that are not usually noted. These
are:
1. Damage to property
2. Liability to employees
3. Liability to the public
4. Death of key employees
5. Excessive loss of bad debts
6. Faulty title to real estate
7. Shoplifting
8. Loss through dishonest employees
9. Financial hardship
10. Marketing risks
Are probably the best protection against most risks. Prices of regular retail inventory may fluctuate, but good management will assure the business with updates on price trends.A good record of accounting and study of operations will alert management of any adverse trends.Risks involving financial issues/hardships can be managed with proper planning.Good planning along with keeping track of the key financial ratios in the financial statements, the capital adequacy ratio, the investment in receivables, as well as having a cash flow statement are methods of protection against these risks
Good Planning and Good management
- An insurance policy allows for less risks for the business and shifts them to the insurance company. An insurance policy allows for less risks for the business and shifts them to the insurance company. There is no alternative to buying insurance to protect inventory and building against various possible losses such as fire, theft, floods, or typhoons. Business owners are required by law to carry workers' compensation insurance is covered by Republic Act 42119 which is an act to further amends certain sessions of Act # 3428 otherwise known as Workmen’s Compensation Act has amended.
purchase outside insurance
- may be purchased to protect any firm from losses incurred by employee thefts. Losses incurred by business firms from merchandise stolen by employees are often to far exceed losses in the form of cash. This situation suggests that fidelity bonds should be used more widely to cover losses of both cash and merchandise.
Fidelity Bonds
- is simply to avoid the risk.For a firm, it might mean taking an effective but dangerous product off the market even though it does the job well when used safely. Risk avoidance is an effective way to cut losses. The problem is that in avoiding the risks of some activities, one also avoids the benefits. Firms that avoid new products because they might be risky cut themselves off from markets that might be profitable. Risk avoidance may not always be the answer in risk management.
Risk Avoidance
Losses caused by unavoided or unavoidable risky activities that one chooses not to avoid can often be either prevented or controlled.To prevent a loss means to keep it from happening, to control means to limit the damage if a loss does not occur.A good rule of loss prevention for a person is not to drive after drinking. But since some accidents happen even when one is sober, it is also a good idea to wear a seatbelt to limit injuries
Loss prevention control
- A person or firm may decide to absorb risk for reasons that there are cases in which other methods of risk management are not worth the cost. This is often the case for risks that involve small losses. For example, people who drive old cars do not find it worthwhile to buy collision insurance.
accept the risk of loss without spreading it by insurance.
