Chapter 11 – Managing a Business

Unit 2 – Business Organization

You will learn ......................

• What managers do• Why management is necessary in any

business• What is meant by risk-taking • Role of entrepreneurs• Manager’s approach on decision-making• Manager responsibilities of main functional

areas

What do managers do?

• Plan• Organize• Coordinate• Command • Control

What do managers do?

• Planning• Future of the

organization• E.g.

• Setting aims or targets

What do managers do?

“the school will aim to increase its student numbers in the primary school to over 200 in two years time”

Aims or Targets

What do managers do?

“we should plan to increase sales of our fruit juice range by 50% in three years”

Aims or Targets

What do managers do?

• Planning• Future of the

organization• E.g.

• Setting aims or targets

• Organization• Sense of direction• Common feeling• Work towards

• Resource Planning

What do managers do?

Aim/Target

“the school will aim to increase its student numbers in the primary school to over 200 in two years time”

Strategy

“we need to build a new state-of-the-art facility to cater for the increase in student numbers”

What do managers do?

Strategy

“we need to build a new state-of-the-art facilities to cater for the increase in student numbers”

What do managers do?

Aim/Target

“we should plan to increase sales of our fruit juice range by 50% in three years”

Strategy

“increased advertising expenditure will be needed to increase sales”

What do managers do?

Strategy

“increased advertising expenditure will be needed to increase sales”

What do managers do?

• Organizing• People

• Delegation

• Resources• Availability

• Organizational

Chart• Authority• Specialization

Chief Executive (Bill

Murray)

Marketing Director

Store Manager

Assistant Store

managers

Shop Workers

Purchase Manager

Financial Director

Book-keeping

Human Resource Director

Administration Assistant

What do managers do?

• Co-ordinating• “working together”• “bring people in the

organization together”

• Good Manager• Departments achieve

plans set by management

• Regular meetings• Project Teams

Aircraft Design

First Class

Business Class

Premium Economy

Economy

What do managers do?

• Commanding• Guiding• Instructing• Leading• Supervising

• Keep to Targets & Deadlines

What do managers do?

• Controlling• Measure & Evaluate• Individuals & Groups• Remain on Target

• Failing • Identify reasons for

poor performance• Corrective plans

What managers do?

• Organizations need clear and effective management• Managers

• Give a sense of control and direction• Co-ordinate departments

• Reduce wastage of effort• Control the employees

• High output & sales

What makes a good manager?

• Can anyone be a good manager?• Are the qualities of leadership limited to a few people?• Why are some managers more successful than

others?

• Is it that• “good managers are born”• “good managers are made by training”

What makes a good manager?

• Intelligence• Understand difficult ideas• Dealing with different issues

• Initiative• Solutions to problems• Take control of situations

Qualities

What makes a good manager?

• Assertiveness & Determination• Take command of others• Push through ideas & policies• See things to their conclusion

• Communication Skills• Clear ideas and messages to

subordinates• Encourage positive responses

Qualities

What makes a good manager?

• Energy & Enthusiasm• Set high standards of effort

& involvement• Encourage others to act in

similar ways• “be a role model”

Qualities

What makes a good manager?

Styles of

Leadership

Qualities

Types of Decision Making

• Strategic Decisions• Important• Overall success of

business• Not that frequent

• Future plans of business

• Long-term investments• Takeovers, expansion

• Change of Status

Types of Decision Making

• Tactical Decision• Less important• More frequent• Middle-management

• Ways to train new staff• Methods of advertising• Types of machines to

purchase

Types of Decision Making

• Operational Decisions• Day-to-Day• Repetitive • Based on previous

experience• Lower Level

Management

• Staffing levels• Stock levels• Methods of delivery of

goods

Management

• Decision Making• Should we open the

new factory in the north or south of the country?

& Risk-Taking

Management

• Decision Making• What price should we

charge for the new product range?

& Risk-Taking

Management

• Decision Making• Do we buy new

machinery even though this will involve some job losses?

& Risk-Taking

Management

• Decision Making• Do we promote an

internal applicant or recruit from outside the business?

& Risk-Taking

Management

• Decision Making• How much should we

spend on developing new products?

& Risk-Taking

Management

• Decision Making• How do we finance the

take-over of this business?

& Risk-Taking

Management

• Decision Making• How can we measure

the performance of the sales division?

& Risk-Taking

Decisions Making

• Sole Trader

• Entrepreneurs / Risk Takers

• Public Limited Company

• Shareholders capital risk

Risks Accepted

Reducing Risk in

Decision-Making

Process

Decision-Making

Establish the Objectives of the Organization

Identify & Analyze the Problem to be Solved

Collect Data on all possible Alternatives Solutions

Implementing the Decision

Review & Evaluation of the Decision

Case Study – Page 159 Jonas

Case Study – Page 159 Paul

Management Responsibilities in Departments

• Forecasting Staff Needs• Recruiting Staff• Prepare

• Job Descriptions• Job Specifications

• Staff Training Programs• Preparing• Implementing

• Interviewing & Selecting Staff

Human

Resource

Management Responsibilities in Departments

• Negotiations• Workers representatives• Union leaders

• Staff Record Keeping• Disciplining & Warning

Staff

Human

Resource

Management Responsibilities in Departments

Human

Resource

Wrong staff employed

Efforts not made to keep staff

Right staff employed

Efforts made to keep staff

Staff Turnover

Management Responsibilities in Departments

• Research• New & existing markets

• New Product Planning• Research & Development

(R & D)• Production Department

• Marketing Mix• Sale Records

• Extension Strategies, Withdrawal of Products

Marketing

Management Responsibilities in Departments

• Recording Financial Transactions• Firms & individuals

• Collect Data• Regular Accounts Format• Budgeting• Analyze

profitability of new investment projects

Accountig

andFinance

Management Responsibilities in Departments

• Decision-making• Method of finance

• Control Cash-flow

Accountig

andFinance

Management Responsibilities in Departments

• Ordering Stock• Materials, Resources

• Develop & Design new products

• Building Location• Cost-effective area

• Production Methods

& Machinery• Financial Dept

Involved

Production

andOperatio

ns

Management Responsibilities in Departments

• Control Production• Ensure High Levels of

Efficiency• Maintaining the Efficiency

Machinery• Quality Control

Production

andOperatio

ns

Management Responsibilities in Departments

• Clerical & Office Support Services

• Responsibility for the Information Technology System

• Cleaning• Maintenance• Security

Administration

Answer the following……….

• What are the main tasks of managers?• What is involved in decision-making?• What do we mean by “risk-taking”?• How can we reduce risks in the decision-

making process?• Identify and explain the main

responsibilities of managers.