Summary
Summary Chapter 8 - Business Management 114
- Course
- Business Management 114
- Institution
- Stellenbosch University (SUN)
Summary of 4 pages for the course Business Management 114 at SUN
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Chapter 8: Understanding the managementprocess
Management – The process coordinating people and resources to
achieve organization’s goals.
4 main organization resources
Material: physical reasources organization uses
Human (most important): Employees
Financial: Funds organization uses to meet obligations to
creditors and investors
Informational: economy, customers, politics etc. information
on competitors is very important.
Basic functions of management definitions and
concepts
Planning – establishing goals and how to accomplish them. To
help with planning company must look at their mission
statement. Mission statement – Organization’s
basic purpose that makes them different.
Strategic planning process – establishing main goals and
setting resources aside to achieve them
SWOT analysis – (Strength, weaknesses, opportunities and
treats) “S&W” are internal factors while “O&T” are external
factors.
Core competencies – things companies do to give them a
advantage over competitiors.
Types of plans
1. Strategic plan – Broadest type of plan which is developed to
guide major policy setting and decision-making.
2. Tactical plan – Smaller scale developed to implement a
strategy.
3. Operational Plan – designed to implement tactical plans.
4. Contingency plan - alternative plan if main on is ineffective.
Leading and motivating
Leading – Influencing people to work towards a common goal.
Motivating – Providing reasons for people to work in best
interests of organization.
Directing – Combined process of leading and marketing.
Controlling ongoing activities – regulating ongoing activities to
ensure that goals are achieved.
3 steps to control activities
Setting Standards Measuring actual performance taking
corrective action
1
, Managers classified by level of management or area of
management
BY LEVEL
Top managers (directors) – build organizations mission
Middle managers (Largest group) – implements strategy
and major policies developed by top management. Supervise
first-line managers e.g division head, plant manager etc.
First-Line Managers – Supervise employees. Motivate
employees.
By Area
Financial Managers – organizes financial resources.
Accounting and investments are specialized areas within
financial management.
Operations manager – manages systems that convert
resources into goods/services..
Marketing Managers – facilitates exchange of products
between organization and customers. Areas within marketing
are research, sales, advertising etc.
Human resources managers – Organizing human
resources. Engages in HR planning, training, hiring etc.
Administrative managers – not specific area. Overall
general administrative guidance
Key Skills of Successful Managers
1. Conceptual skills – ability to think abstractly.
2. Analytical skills – Identify problem correctly and choose the
best alternative to solve problem
3. Interpersonal skills – deal with people inside and outside the
business efficiently.
4. Technical Skills – specific skills needed to accomplish
specialized activities
5. Communication skills – (both oral and written) ability to speak,
listen and write effectively.
Leadership
Formal
Legitimate power over people due to position. Authority influence
others to work towards organization objectives
Informal
No legitimate authority but exert their influence to support
organization.
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