ACCA BT flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Span of control

Number of subordinates directly reporting to a manager. A wide span creates flatter structures; a narrow span creates taller hierarchies with closer supervision.

Chain of command

The unbroken line of authority from the most senior level to the lowest level, showing who reports to whom and how instructions flow.

Unity of command

Principle that each employee should report to only one manager to avoid conflicting instructions, unclear priorities and divided accountability.

Delegation

Transfer of authority to a subordinate to carry out a task. Accountability remains with the delegator, so delegation does not remove ultimate responsibility.

Matrix structure

Organisation structure combining functional and project reporting lines, giving employees two managers. It improves coordination but can cause conflicting priorities and power struggles.

Centralisation

Concentration of decision-making authority at senior levels. It supports consistency and control but may reduce local responsiveness and slow decisions.

Mendelow matrix

Stakeholder mapping tool using power and interest. Low/low = minimal effort; high power/low interest = keep satisfied; low power/high interest = keep informed; high/high = key players.

Agency problem

Conflict where managers act in their own interests rather than shareholders' interests. Governance controls include independent non-executive directors, audits and performance-related pay.

PESTEL analysis

Framework scanning political, economic, social, technological, environmental and legal influences on an organisation. It identifies external opportunities and threats beyond management control.

Porter's five forces

Model of industry attractiveness: rivalry among existing firms, threat of new entrants, threat of substitutes, bargaining power of buyers and bargaining power of suppliers.

Value chain

Porter's model dividing activities into primary activities such as production and sales, and support activities such as procurement and HR, to analyse where value and margin are created.

Product life cycle

Stages introduction, growth, maturity and decline. Sales, cash flow, competition and appropriate marketing strategy change at each stage.

Price elasticity of demand

Percentage change in quantity demanded divided by percentage change in price. Demand is elastic when the absolute value exceeds 1 and inelastic when below 1.

Ansoff matrix

Product-market growth matrix: market penetration, product development, market development and diversification. Risk generally increases as the organisation moves away from current products and markets.

SWOT analysis

Tool summarising internal strengths and weaknesses and external opportunities and threats. It links internal capability with environmental analysis to support strategy formulation.

Stakeholder

Any individual or group affected by or able to affect an organisation's decisions, such as shareholders, employees, customers, suppliers, communities and government.

Marketing mix 4Ps

Product, price, place and promotion. These controllable elements are combined to meet target customer needs and achieve marketing objectives.

Financial accounting

Reporting historical financial information to external users through statements such as the statement of financial position and income statement, prepared under accounting standards and legal requirements.

Management accounting

Provision of financial and non-financial information to internal managers for planning, decision-making, performance measurement and control. It is forward-looking and not governed by external reporting standards.

Primary data

Data collected first-hand for a specific purpose, such as surveys or interviews. It is tailored but can be costly and time-consuming to obtain.

Information qualities

Good information should be accurate, complete, timely, relevant, understandable and cost-effective relative to the value of the decision it supports.

Transaction processing system

Information system that records and processes routine daily transactions, such as sales and payments, providing reliable operational data for other systems.

Cloud computing

Delivery of computing services over the internet on a pay-per-use basis. Benefits include scalability and remote access; risks include security, privacy and vendor lock-in.

Big data

Very large and complex datasets characterised by volume, velocity, variety and veracity. Analytics can reveal patterns but requires suitable skills, tools and data governance.

Leadership

Process of influencing, motivating and enabling others to contribute towards achieving organisational goals. It emphasises vision, direction and change rather than routine control.

Management

Process of planning, organising, coordinating and controlling resources to achieve objectives efficiently and effectively. It focuses on order, systems and current performance.

Blake Mouton grid

Leadership model plotting concern for people against concern for production. The ideal is team management, combining high concern for both.

Tannenbaum-Schmidt continuum

Range of leadership styles from boss-centred telling to subordinate-centred joint decision-making. The appropriate style depends on manager, subordinates and situation.

Situational leadership

Hersey and Blanchard model matching style to follower readiness: telling, selling, participating and delegating, with readiness based on ability and willingness.

Transformational leadership

Style inspiring followers through vision, intellectual stimulation and individual consideration, motivating them to exceed expected performance and support change.

Herzberg two-factor theory

Hygiene factors such as pay and working conditions prevent dissatisfaction but do not motivate; motivators such as achievement, recognition and responsibility create satisfaction and motivation.

Tuckman team stages

Sequential stages of team development: forming, storming, norming, performing and adjourning. Teams may regress and stages can overlap.