This document provides an in depth and thorough summary of chapter 6 of Introduction to Business Management 11th edition (Erasmus et. al.). It is ready for exam and tests. Everything is laid out as it is in the textbook. All needed information is provided in short. It is written in an easy to study...
Chapter 6
Basic Resources in Organisations
Human Resources Financial Resources Physical Resources Information/Knowledge Resources
The role of management
Management is indispensable for the following reasons:
Management directs a business towards its goal
Effective management is crucial for business to maintain its purpose and achieve profit goals in market economy
Management sets and keeps the operations of the business on a balanced course
Balancing business goals, resources, employee goals, and owners' interests is crucial in the microenvironment.
Management manages various resources to achieve efficient goals.
Management keeps the organisation in balance with its environment for achieving organizational objectives
Adapt the organisation to environmental change,
change the environment itself to reach objectives
Management is necessary to reach the goals of the organisation at the highest possible level of productivity
Definition of management
Management is defined at the process followed by managers to accomplish the business’s goals and objectives
It is a process of activities that is carried out to enable a business to accomplish its goals by employing human,
financial and physical resources for that purpose
Activities Terminology
Management decides what should be done Planning
Management decides how it should be done Organising
Management says how and when it should be done Leading
Management ascertains whether task has been carried out Control
Planning (what has to be done)
Determines the mission and goals of the business
How goals are to be reached in the long term, and resources needed for the task
Determining future position of the business, and guidelines or plans on how that position is to
be reached
Organizing (how it should be done)
Developing a framework or organisational structure to indicate
How people, equipment and materials should be employed to reach the predetermined goals
Leading (orders it to be done)
Directing the human resources of the business and motivating them
Leaders align the actions of employees with the predetermined goals and plans.
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