MANAGEMENT PRINCIPLES mng2601_notes

MANAGEMENT PRINCIPLES CHAPTER 1 INTRODUCTION TO MANAGEMENT 1.2 ORGANISATIONS AND MANAGERS All the products and services required to satisfy the consumer’s and, ultimately, society’s needs are produced and provided by specialised organisations such as hypermarkets, sports clubs, universities, car manufacturers, banks, guest houses, bicycle shops, hospitals, and airlines to mention but a few. People’s lives are influenced in some way or another by the managers of these numerous business organisations. The following resources are used: • Human resources • Capital or financial resources • Physical resources • Information resources. 1.3 THE NATURE OF MANAGEMENT Managers therefore combine, allocate, coordinate, and deploy resources or inputs in such a way that the organisation’s goals are achieved as productively as possible. In doing so, management follows a specific process. A process is a systematic way of doing things. The entails 4 fundamental management functions: -  Planning  Organizing  Leading  Controlling Resources Human Financial Physical Information Planning Organising Controlling Leading Performance Achieve goals Products Services Productivity Profit THE MANAGEMENT PROCESS COMPRISES PLANNING, ORGANISING, LEADING AND CONTROLLING. A model is a simplification of the real world in order to explain complex relationships in easy-to- understand terms. ...................................................continued................................................