A great summary of a complex and lengthy chapter. King Code and management tasks and competencies clearly outlined for you. One document with all you need to know to ace your exams! These notes helped me get 96% for IEB final Business Studies exam!
* Management Levels: MIDDLE functional management
sadmin manager
• General management operate a top management level. c production manager
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• Functional management are middle management. LOWER supervisors
- admin manager
- purchasing manager
-production manager
- marketing manager etc (managers of business functions)
• Supervisors operate at lower level management.
TOP MANAGEMENT: Strategic decisions
MIDDLE MANAGEMENT: Tactical decisions
LOWER MANAGEMENT: Operational decisions (daily decisions to run business)
* Entrepreneurship and intrapreneurship:
Entrepreneurship:
• Person who combines the factors of production to start a new business venture.
• Sees opportunity in the market and takes a risk to make a profit.
• Entrepreneurs usually operate a top level management.
Intrapreneur:
• Often known as an inside entrepreneur.
• Works within a business using entrepreneurial skills, with the business resources, to make
profits from innovative ideas.
• Does not have to operate a top management level.
, Entrepreneurial qualities, characteristics and skills:
Most of these skills and characteristics can be learned and developed.
• identify opportunities with potential and pursue them despite risks.
• Take risks
• Understand the target market
• Continuously scan the internal & external environment.
• Be proactive when identifying opportunities and threats.
• Be an opportunist (anticipate market trends)
• Commitment and perseverance.
• Creativity and innovation.
• Leadership qualities.
• Make quick decisions.
• Ability to communicate clearly, and accurately.
• Must be personally motivated (likes to work and learn or be in charge in groups)
* Leadership vs Management:
• managers are appointed in positions of authority (get people to do what they want)
• Leader should use expertise to make people aware of which course of action they
SHOULD pursue.
• Ideally, managers should also be leaders.
Managers: Dictates Leaders: Inspires
• maintains & focuses on systems • Focuses on people
• accepts the status quo • develops new methods to do things
• Leaders inspire, trust.
• relies on control. • challenges the status quo
• Leads by example
• follows what management says • Emerges anywhere in a business
• Study/apply for a job. • Born skills
• Gets placed in a role
, A Management Styles:
111
Democratic: creative
• Allows subordinates to give input & participate in the decision-making process.
• Also referred to as the participative leadership style.
• Disadvantage: may cause slower decision making.
• Advantage: Everyone feels part of the decision-making process which can be seen as an
advantage (can lead to higher retention and higher morale)
-11
Autocratic: crisis
• often does not allow input from subordinates
• Manager usually makes all the decisions
• Disadvantage: employees have low morale, also have a higher employee turnover as
employees feel undervalued.
• Advantage: decision making process is quicker.
3 Laissez-Faire: Italented employees (
• Manager believes he/she should not interfere in the process of carrying out a task.
• Explains to employees what is required and expected, and then does not interfere.
• The style yields excellent results if the workforce is highly skilled and motivated.
• Disadvantages : if employees are not skilled or motivated work will be dissatisfactory.
• Advantage: employees will not feel micromanaged and have higher morale as they feel
valued.
4 Transactional:
• Manager motivates employees to perform task in return for incentives.
• Disadvantage If employees, do not find the reward sufficient, they may be demotivated.
• Advantage: incentives can make employees more motivated to perform, higher quality,
work which will yields higher profits.
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