Business management 1 a lu1Presentation Transcript
Learning Outcomes0 Analyse the role of managers in the business environment0 Explain the business process in any form of business0 Compare the different managerial roles at the different management levels0 Explain the importance of management in business0 Explain the management tasks in business0 Investigate the skills needed by managers0 Report the major challenges SA managers face
Learning Outcomes0 Summarise the differences between leadership and management0 Describe the factors of production0 Show the relationship between factors of production and the managerial functions
Introduction to General Management0 What drives business? 0 Needs and wants0 Management: “Process whereby all managers regardless of their skills or management level within the organisation, plan, organise, lead and control the financial, human, physical and information resources to achieve the goals of the organisation”0 Society relies on organisations to cater for their ever growing and changing needs.
Introduction to General Management0 Business management:“a science that concerns itself with our profit-orientated market system by studying what a business is, how toestablish the business and manage it in an effective and efficient way to ensure the highest profit for the business”0 The management of people impacts directly on the success of the business.0 Purpose of business is to ensure growth of shareholders investments0 Utilise all resources effectively and efficiently
Introduction to General Management0 Managers are responsible for bringing the resources together (human, financial, physical, information)0 Managers are responsible for the success and sustainability of organisations.
Business Management Cycle Consumer Needs Consumer Entrepreneur identifies pays need Provide Establish a product/ business service
Introduction to General Management0 Management’s task is to combine, allocate, co- ordinate and deploy resources or inputs so that the organisation’s goals are achieved as productively as possible.0 Four main management functions: 0 Planning 0 Organising 0 Leading 0 Controlling
Introduction to General Management0 These management functions convert the inputs of an organisation into outputs0 This is called the management process
Management Process Planning ConvertingINPUTS Controlling Organising OUTPUTS process Leading
Introduction to General Management0 Different Management Levels 0 Top management- strategic managers who hold executive positions, responsible for the WHOLE enterprise 0 Middle Management- functional managers responsible for different functions, implement top management’s strategy 0 First-line Management- supervisors, deal with day- day reality.
Exercises0 Textbook page 6 revision exercise as a discussion0 Case study on page 19 of your textbook questions: 0 1-40 Revision exercise in your manual page 29 no. 1
Management Functions0 Planning 0 Managers ID the goals of the organisation 0 Provides direction and a map for the future of the organisation 0 Encourages cooperation between sections of the organisation- business processes 0 Managers need to plan organisational systems with an eye on the future 0 Watching trends, anticipating impact of inflation and budget speech, other changes in the economy, etc
Management Functions0 Planning Process Steps 1. ID opportunities and threats 2. Formulate Objectives 3. Draw up plans according to your assumptions 4. ID alternative plans (Plan B) 5. Analyse and consider all plans – brainstorming 6. Choose a final plan 7. Draw up a budget 8. Implement the plan
Management Functions0 Barriers Managers face when planning: 0 Lack of environmental knowledge 0 Lack of organisational knowledge 0 Reluctance to establish goals 0 Resistance to change 0 Time and expense
Management Functions0 Organising 0 Using the resources required to achieve the organisation’s objectives that have been set out in the planning process 0 Structuring departments in such a way that the plans are fulfilled 0 Through this process everyone knows who is responsible for what and who is accountable for what. 0 The way in which an organisation is structured is referred to as the organisational design
Management Functions0 Organising Process 1. Think about the objectives of the organisation 2. ID core tasks that will meet these objectives 3. Break up these core tasks into subtasks 4. Determine resources needed 5. Continuously assess the accomplishment of these tasks - targets
Management Functions0 Organising 0 Organising involves the division of work with the relative skills and knowledge 0 Organising establishes who reports to who in the organisational hierarchy- chain of command 0 Managers also have the task of establishing which departments are needed and how many employees in each department 0 Managers then need to co-ordinate the work activities within these departments as well as the organisation as a whole 0 Manual pg 20- important principles
Management Functions0 Leading 0 Informal and Formal leadership 0 An effective leader is able to empower individuals to be more accountable for their work 0 Motivate people to achieve the goals of the organisation 0 Leaders are responsible for creating the environments in which individuals and teams can successfully meet the demands of their jobs 0 There are leaders at all levels in an organisation 0 Employable quality
Management Functions0 Leading 0 Leaders have a vision for their teams and motivate their followers to work towards that vision 0 What is the difference between management and leadership? 0 A core task of management is to lead 0 Table 2.1 textbook pg 28 0 Core task of a leader is communication
Management Functions0 Leadership- vision of the organisation0 Management- implementing that vision
Management Functions0 Control 0 Ensure that results are in accordance with plans and objectives 0 Ensures the business is on course 0 Establish stability, ensure quality and standards 0 Set performance standards for employees and targets 0 Monitoring and assessing employees’ activities
Management Functions0 Control Process 1. Determine and communicate standards and methods of performance measures 2. Measure performance 3. Evaluate and compare performance 4. Take corrective action if necessary
Challenges for SA Managers & Leaders0 Pg 16 of your manual0 Pg 45 of your textbook