Business Chapter 6 Flashcards
Why is management indispensable to any business ?
1)Management directs a business towards its goals
2)Management sets and keeps the operations of the business on a balanced course
3)Management keeps the org in equilibrium with its environment
4)Management is necessary to reach the goals of the organization at the highest possible level of productivity
Basic resources used by an organisation
Human resources
Financial resources
Physical resources
Information resources
Management definition
A process of activities that are carried out to enable a business to accomplish its goals by employing human, financial and physical resources for that purpose
Management does 4 things:
1)It decides what has to be done
2)It decides how this should be done
3)It ordered that it be done
4)It checks that its orders have been carried out
Fundamental tasks:
Planning
Organizing
Leading
Controlling
Planning
Determines the mission and goals of the business, including the ways in which the goals are to be reached in the long term and resources needed for this task.
Organizing
After the goals and plan have been determined, the human, financial and physical resources of the business have to be allocated by the management to the relevant departments, duties must be defined and procedures fixed, to enable the business to reach its goals
Leading
Entails directing the human resources of the business and motivating them
Control
Manager should constantly establish whether the business is on a proper course towards the accomplishment of its goals. Enables management to detect any deviations from the plans and to correct them.
Levels of management
Top, middle, low
Top management
Board of directors, partners, chief executive, managing director, control the business and in whom the final authority and responsibility for the execution of management process rests, also manages the environment within which the org operates
Middle management
Functional heads, marketing manager, purchasing manager, human resource manager
should monitor environmental influences that may affect its sphere of operations
Low management
Supervisory management
Day-to-day activities and tasks of a particular section ,short-term planning and implementing the plans of middle management
Marketing management is responsible for:
1)Planning the activities of the marketing department
2)Organizing marketing activities
3)Assumption of leadership of marketing activities
4)Controlling marketing activities
Functional management:
Specialized managers who are necessary for the different functions of the business
Function of general management
Deals with the activities of top management while at the same time manifesting itself in other functions management
Skills of management
1)Conceptual skills-mental capacity to view the business and its parts in a holistic manner, thinking and planning abilities.
2)Interpersonal skills-Human relation skills, ability to work with people, understand and communicate with people and to lead, motivate and develop team spirit.
3)Technical Skills-Ability to use the knowledge/techniques of particular discipline
Roles of management
1)Interpersonal role
Acting as a representative figure. Leading and in the training and motivation of employees. Maintaining good relations within the org and with its public.
2)Information Role
Enables managers to obtain info from colleagues and employees who report to them, superiors to help them make decisions. Monitoring/gathering info about change, opportunities/threats that may affect their department. Managers analyze this info and pass relevant data to superiors. Managers act as spokes people in their departments .
3)Decision-making
Have to deal with and solve problems such as strikes, shortages and equipment breakdown
Managers have to decide to allocate the resources of the business
Negotiators, managers regularly interact with individuals, businesses to negotiate goals, performance standards.
4)Maintain good relation with the public
5)Lead, motivate employees
Four main supplementary/supporting management activities are normally distinguished:
Gathering and processing of info to make decisions possible
Decision making
Communication
Negotiation
Business Management
The science that examines all the things that affect the productive and profitable operations of a business.
Study of actual management
Examines only the management process and the general management principles that enable the business to accomplish its goals and objectives as effectively as possible
Evolution of management theory:
1900-The scientific school
1920-The management school
1930-The behavioral school
1945-The quantitative school
1955-The systems approach
1965-Contingency theory
1975-Strategic approach
1985-Total Quality Management
1995-Re-engineering
2010-Diversity
Contemporary vs Classical Management
In the contemporary management approach, managers’ powers are obtained from those they oversee, and the people they control transfer these influences over willingly to their management. The traditional management model is centered on objectives, individual skills, and a strict level of supervision
The scientific school
Classical approach
research was confined to workers and lower management levels, scientific approaches and methods could be applied in
productive ways to attain the goals of an organization.
