General Management
Entrepreneurship vs intrapreneurship
• Entrepreneur: a person that combines the factors of production to start a new business.
• Intrapreneur: “internal entrepreneur”. Works in the business and uses entrepreneurial qualities to transform
innovative ideas into pro t.
• An entrepreneur sees an opportunity in the market and takes on the risk of starting a business. They use their
own or borrowed capital to do so.
• An entrepreneur usually operates at top management level.
• An intrapreneur doesn’t have to be at a top management level but often implements new and pro table ideas
in their departments.
Entrepreneurial qualities
Ability to identify an opportunity with potential and Must be creative and innovative.
pursue it.
Understand the market and the target market through The ability to plan and set goals is crucial.
continous environmental scanning.
Knows who the customers are and their needs in The ability to obtain and coordinate the required
order to develop products to satisfy them. resources in an optimal manner.
An opportunist and can anticipate market trends to A leader that can convince and motivate employees to
take advantage of them. achieve operational goals.
Hard-working and perserverance are key. Evaluates achievements and progress to initiate
corrective action if necessary.
Able to make quick decisions. Can communicate clearly to overcome challenges and
capitalise on opportunities.
Personally motivated and often prefers to work alone
or be in charge of what is going on.
Management vs leadership
• Manager: appointed in a position of authority that enables them to insist on people doing as they instruct.
• Leader: has the expertise to make people aware of the advantages of pursuing a certain course of action.
They create a desire to be followed.
• In order for a manager to be successful, they should be a leader as well.
• Leadership is a skill that can be learned.
Manager Leader
Maintains systems Develops new ways of doing things
Focuses on systems and structures Focuses on people
Relies on control Inspires trust
Accepts the status quo Challenges the status quo
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, Management styles
Democratic
• Allows subordinates to provide input and participate in the decision-making process.
• AKA participative leadership style.
• This management style ensures “buy-in” and committment from people.
• This management style can lead to slower decision mking when the manager allows input from everyone.
Autocratic
• Seldom allows input from subordinates and makes all decisions themselves.
• This is a good approach in crisis situations and when quick decisions need to be made.
• This approach often leads to low employee morale because employees feel under-valued by the manager.
Laissez-faire
• The manager believes they should not interfere in the process of carrying out a task.
• The manager will tell employees what is required from them but will not tell them how to do the task.
• This normally works if the workforce is highly-skilled and motivated.
Transactional
• An approach of “give and take”.
• The manager motivates employees to perform tasks in return for possible rewards.
• The problem with this style is that employees will start to view the reward as insu cient and will then become
demotivated.
Transformational
• Charasmatic by nature.
• Motivates employees by helping them understand the meaning of their work.
• It places an emphasis on teamwork, the manager will explain to the group “why they matter”.
• This builds con dence and trust between the employees and management and individual and group
performance improves.
• People are often so motivated that they exceed their own expectations.
• The manager must lead the team and inspire them to reach their full potential.
Situational
• A combination of all the above management styles.
• The manager will implement the management style that is best suited for a situation.
Motivating employees
• There is no magic formula to motivate employees, what motivates one employee may not motivate another.
The advantages of a motivated workforce:
1. Employees are more likely to provide good customer service.
2. Usually more productive.
3. Lower levels of sta turnover.
4. Less likely to embark on industrial action.
5. Happy workers will say positive things about the business and this improves the
business’ image.
6. Has a positive impact on all departments.
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Entrepreneurship vs intrapreneurship
• Entrepreneur: a person that combines the factors of production to start a new business.
• Intrapreneur: “internal entrepreneur”. Works in the business and uses entrepreneurial qualities to transform
innovative ideas into pro t.
• An entrepreneur sees an opportunity in the market and takes on the risk of starting a business. They use their
own or borrowed capital to do so.
• An entrepreneur usually operates at top management level.
• An intrapreneur doesn’t have to be at a top management level but often implements new and pro table ideas
in their departments.
Entrepreneurial qualities
Ability to identify an opportunity with potential and Must be creative and innovative.
pursue it.
Understand the market and the target market through The ability to plan and set goals is crucial.
continous environmental scanning.
Knows who the customers are and their needs in The ability to obtain and coordinate the required
order to develop products to satisfy them. resources in an optimal manner.
An opportunist and can anticipate market trends to A leader that can convince and motivate employees to
take advantage of them. achieve operational goals.
Hard-working and perserverance are key. Evaluates achievements and progress to initiate
corrective action if necessary.
Able to make quick decisions. Can communicate clearly to overcome challenges and
capitalise on opportunities.
Personally motivated and often prefers to work alone
or be in charge of what is going on.
Management vs leadership
• Manager: appointed in a position of authority that enables them to insist on people doing as they instruct.
• Leader: has the expertise to make people aware of the advantages of pursuing a certain course of action.
They create a desire to be followed.
• In order for a manager to be successful, they should be a leader as well.
• Leadership is a skill that can be learned.
Manager Leader
Maintains systems Develops new ways of doing things
Focuses on systems and structures Focuses on people
Relies on control Inspires trust
Accepts the status quo Challenges the status quo
fi fi
, Management styles
Democratic
• Allows subordinates to provide input and participate in the decision-making process.
• AKA participative leadership style.
• This management style ensures “buy-in” and committment from people.
• This management style can lead to slower decision mking when the manager allows input from everyone.
Autocratic
• Seldom allows input from subordinates and makes all decisions themselves.
• This is a good approach in crisis situations and when quick decisions need to be made.
• This approach often leads to low employee morale because employees feel under-valued by the manager.
Laissez-faire
• The manager believes they should not interfere in the process of carrying out a task.
• The manager will tell employees what is required from them but will not tell them how to do the task.
• This normally works if the workforce is highly-skilled and motivated.
Transactional
• An approach of “give and take”.
• The manager motivates employees to perform tasks in return for possible rewards.
• The problem with this style is that employees will start to view the reward as insu cient and will then become
demotivated.
Transformational
• Charasmatic by nature.
• Motivates employees by helping them understand the meaning of their work.
• It places an emphasis on teamwork, the manager will explain to the group “why they matter”.
• This builds con dence and trust between the employees and management and individual and group
performance improves.
• People are often so motivated that they exceed their own expectations.
• The manager must lead the team and inspire them to reach their full potential.
Situational
• A combination of all the above management styles.
• The manager will implement the management style that is best suited for a situation.
Motivating employees
• There is no magic formula to motivate employees, what motivates one employee may not motivate another.
The advantages of a motivated workforce:
1. Employees are more likely to provide good customer service.
2. Usually more productive.
3. Lower levels of sta turnover.
4. Less likely to embark on industrial action.
5. Happy workers will say positive things about the business and this improves the
business’ image.
6. Has a positive impact on all departments.
fi ff ffi
