Business management 1 a lu1

Business Management

BUMA 1A 2012LU 1

Learning Outcomes

0Analyse the role of managers in the business environment

0Explain the business process in any form of business0Compare the different managerial roles at the

different management levels0Explain the importance of management in business0Explain the management tasks in business0 Investigate the skills needed by managers0Report the major challenges SA managers face

Learning Outcomes

0Summarise the differences between leadership and management

0Describe the factors of production0Show the relationship between factors of production

and the managerial functions

Introduction to General Management

0 What drives business? 0 Needs and wants

0 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.


0Business management:“a science that concerns itself with our profit-orientated

market system by studying what a business is, how to establish the business and manage it in an effective and

efficient way to ensure the highest profit for the business”

0The management of people impacts directly on the success of the business.

0Purpose of business is to ensure growth of shareholders investments

0Utilise all resources effectively and efficiently


0Managers are responsible for bringing the resources together (human, financial, physical, information)

0Managers are responsible for the success and sustainability of organisations.

Business Management Cycle

Consumer Needs

Entrepreneur identifies

need

Establish a business

Provide product/ service

Consumer pays


0Management’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.

0Four main management functions:0 Planning0 Organising0 Leading0 Controlling


0These management functions convert the inputs of an organisation into outputs

0This is called the management process

Management Process

Converting process

Planning

Organising

Leading

ControllingINPUTS OUTPUTS


0Different Management Levels0Top management- strategic managers who hold

executive positions, responsible for the WHOLE enterprise

0Middle Management- functional managers responsible for different functions, implement top management’s strategy

0First-line Management- supervisors, deal with day-day reality.

Exercises

0Textbook page 6 revision exercise as a discussion0Case study on page 19 of your textbook questions:

0 1-40Revision exercise in your manual page 29 no. 1

Management Functions

0Planning0Managers ID the goals of the organisation0Provides direction and a map for the future of the

organisation0Encourages cooperation between sections of the

organisation- business processes0Managers need to plan organisational systems with

an eye on the future0Watching trends, anticipating impact of inflation and

budget speech, other changes in the economy, etc


0Planning Process Steps1. ID opportunities and threats2. Formulate Objectives3. Draw up plans according to your assumptions4. ID alternative plans (Plan B)5. Analyse and consider all plans – brainstorming6. Choose a final plan7. Draw up a budget8. Implement the plan


0Barriers Managers face when planning:0Lack of environmental knowledge0Lack of organisational knowledge0Reluctance to establish goals0Resistance to change0Time and expense


0Organising0Using the resources required to achieve the

organisation’s objectives that have been set out in the planning process

0Structuring departments in such a way that the plans are fulfilled

0Through this process everyone knows who is responsible for what and who is accountable for what.

0The way in which an organisation is structured is referred to as the organisational design


0Organising Process1. Think about the objectives of the organisation2. ID core tasks that will meet these objectives3. Break up these core tasks into subtasks4. Determine resources needed5. Continuously assess the accomplishment of these

tasks - targets


0Organising0Organising involves the division of work with the

relative skills and knowledge0Organising establishes who reports to who in the

organisational hierarchy- chain of command0Managers also have the task of establishing which

departments are needed and how many employees in each department

0Managers then need to co-ordinate the work activities within these departments as well as the organisation as a whole

0Manual pg 20- important principles


0Leading0 Informal and Formal leadership0An effective leader is able to empower individuals

to be more accountable for their work0Motivate people to achieve the goals of the

organisation0Leaders are responsible for creating the

environments in which individuals and teams can successfully meet the demands of their jobs

0There are leaders at all levels in an organisation0Employable quality


0Leading0Leaders have a vision for their teams and motivate

their followers to work towards that vision0What is the difference between management and

leadership?0A core task of management is to lead0Table 2.1 textbook pg 28 0Core task of a leader is communication


0Leadership- vision of the organisation0Management- implementing that vision


0Control0Ensure that results are in accordance with plans

and objectives0Ensures the business is on course0Establish stability, ensure quality and standards0Set performance standards for employees and

targets0Monitoring and assessing employees’ activities


0Control Process1. Determine and communicate standards and methods

of performance measures2. Measure performance3. Evaluate and compare performance4. Take corrective action if necessary

Challenges for SA Managers & Leaders

0Pg 16 of your manual0Pg 45 of your textbook

Exercises

0Manual Revision exercise 1 page 290 Questions 2 and 3

0Textbook page 47 question 4

Education

Business management 1 a lu1