This document discusses various aspects of business management including: - Traditional and contemporary definitions of management which focus on coordinating resources and working with people. - Five key aspects of the management process: task, relationships, skills, communication, and vision. - Strategic thinking, problem solving, flexibility, reconciling stakeholder interests, and goal setting as important management skills. - Different approaches to management including classical, behavioral, and contingency theories which vary in their leadership styles and adaptability to change.

1. Business Management
Introduction

2. Traditional Definition:
The process of coordinating a business’s resources to achieve
its goals
Contemporary Definition:
The process of working with and through other people to
achieve business goals in a changing environment. Crucial
to this process is the effective and efficient use of limited
resources.
Management

3. Key aspects
of the
Management
process

4. Task:
Find an example of an effective manager. Relate to
The 5 key aspects

5. Management is about relationships
“Innovation has nothing to do with how many R&D dollars you
have. When Apple came up with the Mac, IBM was spending at least
100 times more on R&D. It’s not about money. It’s about the people
you have, and how you’re led.” – Steve Jobs
“The best executive is the one who has sense enough to pick good
men to do what he wants done, and self-restraint to keep from meddling
with them while they do it.” - Theodore Roosevelt
“If you pick the right people and give them the opportunity to spread their
wings—and put compensation as a carrier behind it—you almost don’t
have to manage them.” – Jack Welch
“Surround yourself with the best people you can find, delegate authority,
and don’t interfere as long as the policy you’ve decided upon is being
carried out.” - Ronald Reagan

6. Task:
Determine which you think is the more difficult management task:
getting employees to work in teams rather than independently, or
getting employees to accept change in the workplace.
Provide reasons for your answer.

7. Skills of Management
Interpersonal Communication
Strategic
Thinking
Vision
Problem solving and
Decision making
Flexibility and
adaptability
Reconciling the
conflicting interests
of stakeholders

8. Interpersonal Skills
Interpersonal skills centre on the ability to relate to people,
being aware of and appreciating their needs, and showing genuine understanding
Task 2: Complete the snapshot activities – “Healthy Management” and
“Choco Management”

9. Communication Skills
It's not just about what you say, it's about how you say it
and what medium you choose to get your message across
Without effective communication the most carefully detailed plans
and brilliant strategies will most probably fail
Well-written letters, an inviting telephone manner, pleasant conversation,
concise emails, and friendly smiles and gestures reinforce carefully
planned business strategies and client networking.
Task 3- Instructions

10. Non-verbal communication
Nonverbal communication is any message that is not written or spoken.
Nonverbal communication mainly consists of body language
(posture, facial expressions, placement of limbs and proximity to others)
Usually, body
language conveys a
more powerful
message than
spoken or written
communication.
Task 4: Simon says
Task 5: Persuasive

11. Strategic Thinking:
Strategic thinking is defined as a mental or thinking process applied
by an individual in the context of achieving success in business.
i.e. How are we going to achieve success?
Strategic thinking allows a manager to see the business as a whole
and to take a broad, long-term view.
Strategic thinking is
about asking the right
questions

12. Vision:
‘the first response of the manager … to give others vision and
the ability to perform’
Peter Drucker
Vision provides a clear, shared sense of direction that allows
People to attain a common goal.
A manager without a clear vision
for the business is like a person
who attempts to lead a bushwalk
without any idea of where the
group wants to go, without a
compass or even a map. The
walk would become aimless.

13. Problem solving
Is a broad set Of activities involved in searching
for, identifying and the implementing a course
of action to correct an unworkable situation.

14. Flexibility and Adaptability to Change
I think there is a world market for about five computers.’
Thomas J. Watson, chairman IBM, 1943
‘There is no reason for any individual to have a computer in their home.’
Ken Olsen, president, Digital Equipment, 1973
‘Nothing has come along that can beat the horse and buggy.’
Chauncey De Pew, president of the New York Central Railroad,
warning his nephew against investing in Henry Ford's new company circa 1911
21st Century manager needs to be proactive rather than reactive

15. Reconciling the conflicting interests of stakeholders
Stakeholders are groups and individuals who interact with the business
and thus have a vested interest in its activities
Most businesses are now extremely sensitive to public opinion
and strive to be recognised as ‘good corporate citizens’
Task: Identify stakeholders that may have conflicting interests

16. Corporate Social Responsibility (CSR)
Corporate social responsibility challenges
each business to be accountable for the
consequences of its actions. This means
businesses must consider effects on all
stakeholders while pursuing traditional
economic goals.
‘triple bottom line’ — economic, social and environmental performance
— where shareholder value increases through the careful management
of stakeholder value.
Explain how the management of conflicting stakeholder
interests can lead to a business being viewed as socially responsible. (6 marks)

17. Business Goals
A goal/objective is a desired outcome (target) that an individual or
business intends to achieve within a certain time frame.
The importance of goals
Carefully prepared goals — begin with the end in mind — benefit managers by:
• Serving as targets
• Measuring sticks
• Motivation
• Commitment

18. S.M.A.R.T. Goal setting
Specific. Goals should be straightforward and emphasise
what the business wants to happen.
Measurable. Decide on goals whose progress can be measured
so the business owner can see the change occur.
This helps the business stay on track.
Achievable. Goals need to be challenging but not be too far
out of the business's reach, otherwise the
business owner and employees will become
unmotivated due to the lack of success.
Realistic. The goals must represent something that the business
owner and employees are both willing and able to work
towards.
Timebound. The goals must have deadlines and sub-deadlines
attached to them otherwise the commitment is too vague.

19. Questions:
1) ‘We plan to expand our market into Asia, increasing worldwide
market share by 2 per cent over the next three years.’
Determine whether this goal is more likely to belong to a large
or small business. Give reasons for your answer.
2) Reflect on a goal you have recently achieved.
Analyse the reasons why you were successful in achieving this goal.
3) Using the S.M.A.R.T. technique, create a suitable goal for
the following businesses:
• Blue Hills Corner Store
• Evergreen Nursery
• Banthai Restaurant.

20. Business Goals - Financial
• Profit maximisation occurs when there is a maximum difference
between the total revenue coming into the business and total costs being
paid out.
(no.1 business goal)
• Increasing market share is an important goal for businesses that
dominate the market, because small market gains often translate into
large profits.
(see Coles/Woolworths – SNAPSHOT ACTIVITIES FOR HOMEWORK)

21. Maximising growth can be achieved internally (organically) or
externally.
Internal growth could involve;
employing more people,
increasing sales,
introducing innovative products,
purchasing new equipment or
establishing more outlets.
External growth is achieved by merging with or acquiring other businesses

22. Increase share price
For companies that wish to be successful, they need to maximise the returns
of their shareholders.
This is achieved by keeping the share price rising = Cap gains + high dividends
Coco-Cola Amatil:

23. Business Goals: Staff involvement
Why involve staff in goal setting?
Innovation Motivation

24. Motivation

25. 'Money brings some happiness. But, after a certain point,
it just brings more money.’
Neil Simon
Is money the best motivator? Discuss

26. Classical Management Approach:
• Classical-scientific approach
• Classical-bureaucratic approach
• Management as planning
• Management as organising
• Management as controlling
• Hierarchical organisational structure
• Leadership style – Autocratic

27. Behavioural Management approach:
• Management as leading
• Management as motivating
• Management as communicating
• Teams
• Leadership style – Participative or democratic

28. Contingency management approach:
• Adapting to changing circumstances
• Leadership style?
• Summary and comparison of management
approaches

29. Format:
Classical approach: 45 min lesson – Wednesday 6 Aug
Behavioural approach: 30 min lesson – Thursday 7 Aug
Contingency approach: 20 min lesson – Thursday 7 Aug