Summary General management - Business studies Gr 12 IEB summaries/notes
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Course
Business Studies
Institution
12th Grade
This document contains summaries made from " Consumo business studies textbook" which summarizes: difference between entrepreneur & intrapreneur; leadership vs. management; management tasks; leadership styles; monetary vs, non-monetary factors; management tasks; management competencies.
➢ The general manager operates at TOP management level, the functional
managers [admin manager, purchasing manager, human capital manager
etc.] are known as the MIDDLE management, while supervisors operate at
the LOWER-level management.
➢ Entrepreneurship and Intrapreneurship:
- Definition of an entrepreneur =
▪ The entrepreneur is the person who combines the three factors of
production [capital, labour and raw material] in order to start a
new business venture.
▪ The entrepreneur sees an opportunity in the market and he/she
assumes the risk of starting a new business by investing his/her
capital in order to make a profit.
▪ When the entrepreneur starts the business, he/she will usually
operate at top management level.
- Definition of an intrapreneur =
▪ Often known as an “insider entrepreneur”.
▪ He/she works within a business and uses entrepreneurial
qualities combined with the business’ resources to transform
innovative ideas into profit.
▪ The intrapreneur does not have to operate at TOP management
level, but will often implement a new and profitable idea within
the department with the approval of his/her manager.
➢ Leadership vs. management:
- A manger is appointed in a position of authority which enables him
to insist on people doing as she/he instructs.
- A leader has the expertise to make people aware of the advantages
of pursuing a certain course of action, thereby creating a desire in
people to follow him/her to achieve a common goal.
, Leader Manager
- The leader develops new - The manger maintains systems.
methods to do things.
- Thew leader focuses on people. - The manager focuses on systems
and structure.
- The leader inspires trust. - The manager relies on control.
- The leader challenges the status - The manager accepts the status
quo. quo.
➢ Entrepreneurial qualities, characteristics and skills:
• The ability to identify an opportunity with potential and to then pursue the
opportunity.
• To understand the target market and he/she continuously needs to scan the
internal and external environment to be proactive in identifying opportunities
and/or threats.
• The entrepreneur has to know who the customers [LSM] are, their needs, and
then be willing to develop or change the business plan to satisfy the customers’
needs.
• An entrepreneur is opportunist.
• Starting a new business is hard work and takes commitment and perseverance.
• Creativity and innovation are often requirements to get a new business off the
ground.
• The ability to prepare and to implement a plan to achieve goals.
• In order to execute the plan, the entrepreneur must have the ability to obtain
and coordinate the required resources in the optimal manner.
• He/she must have the ability to convince and motivate others to buy into the
plan and follow him/her to achieve the desired goals.
• The ability to evaluate achievements and progress is crucial in order to initiate
corrective measures if needed.
• The entrepreneur should be able to make quick decisions about opportunities as
they arise.
• The ability to communicate clearly and accurately is critical in order to
implement strategies to overcome challenges and thus capitalize on
opportunities.
• An entrepreneur is personally motivated and often prefers to work on his/her
own or at the very least be in charge of what is going on.
, ➢ Management tasks:
- Democratic leadership style =
✓ Allows subordinates to provide input and participate in the
decision-making process.
✓ Sometimes referred to as the participative leadership style.
✓ The advantages of this style is that it usually ensures “buy-in”
and commitment from people involved in the process.
✓ A disadvantage could be that it may lead to slower decision
making when the manager allows participation from all.
- Autocratic leadership style =
✓ Seldom allows for input from subordinates and makes all
decisions.
✓ In certain circumstances this may be the best approach, for
example there is a crisis and quick decision making is
required to solve a problem or to implement a strategy that
may not be popular with all staff members.
✓ A disadvantage is that employees often have a low morale as
they feel undervalued by the manager.
- Laissez-faire leadership style=
✓ Believes that he/she should not interfere in the process of
carrying out a task.
✓ The manager will tell employees, what he/she expects from
them, but will allow them to do a task without interference.
✓ This management style may yield excellent results, if there is a
highly-skilled workforce, motivated to perform optimally.
- Transactional leadership style =
✓ Described as an approach of “give and take”, with the
manager motivating employees to perform their talks in
return for possible [ salary/bonus/other benefits].
✓ The problem with this style is that as soon as employees
regard the reward is insufficient, they become demotivated
which often results in labour unrest.
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