Summary MNG2601

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University of South Africa
Muckleneuk, Pretoria

MNG2601/1/2018–2020

70533954

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,Contents
FOREWORD (viii)


Topic 1: The nature of management 1
Learning unit 1: The management process 3
1.1 MANAGERS AND MANAGEMENT 5
1.2 MANAGEMENT AND THE MANAGEMENT PROCESS 5
1.2.1 Management is a process 5
1.2.2 Working with and through others 6
1.2.3 Achieving organisational objectives 6
1.2.4 Balancing effectiveness and efficiency 7
1.2.5 Making the most of limited and scarce resources 7
1.2.6 Coping with a changing environment 7
1.3 LEVELS AND AREAS OF MANAGEMENT 7
1.3.1 Levels of management 7
1.3.2 Areas of management 8
1.4 THE ROLE DISTRIBUTION OF MANAGERS 8
1.5 MANAGERIAL SKILLS 9
1.6 LEARNING TO MANAGE 9
1.6.1 Management training and development 9
1.6.2 Practical experience 9
1.7 SUMMARY 9
Learning unit 2: Composition of the management environment 15
2.1 THE IMPORTANCE OF THE MANAGEMENT ENVIRONMENT AND
ITS IMPACT ON MANAGERIAL DECISION-MAKING 16
2.2 MANAGEMENT THEORIES AND THE MANAGEMENT
ENVIRONMENT 17
2.3 THE STRUCTURE AND DYNAMICS OF THE MANAGEMENT
ENVIRONMENT 17
2.4 ANALYSIS OF THE MANAGEMENT ENVIRONMENT 19
2.5 SUMMARY 20

Topic 2: Planning 25
Learning unit 3: Principles of planning 27
3.1 THE NATURE AND IMPORTANCE OF PLANNING 29
3.1.1 Determine the organisational vision, mission and goals 30
3.1.2 Identifying ways to achieve the goals 30
3.1.3 Finding the resources needed for the task 30
3.1.4 Planning in a complex environment 31
3.2 THE BENEFITS AND COSTS ASSOCIATED WITH PLANNING 31

MNG2601/1/2018–2020 (iii)

, CONTENTS



3.3 TYPES OF PLANS 31
3.3.1 Strategic, tactical and operational plans 32
3.3.2 Long-term, intermediate and short-term plans 32
3.3.3 Specific and directional plans 33
3.3.4 Single-use, standing and individual plans 33
3.4 BARRIERS TO EFFECTIVE PLANNING 33
3.5 OVERCOMING BARRIERS TO EFFECTIVE PLANNING 34
3.6 SUMMARY 34
Learning unit 4: Strategic management 39
4.1 STRATEGY AND STRATEGIC MANAGEMENT 40
4.2 THE STRATEGIC MANAGEMENT PROCESS 41
4.2.1 Strategic analysis 41
4.2.2 Strategy formulation 43
4.2.3 Strategy implementation 44
4.2.4 Strategic control 44
4.3 SUMMARY 44
Learning unit 5: Decision-making 49
5.1 DECISION-MAKING AND THE MANAGEMENT PROCESS 51
5.2 THE RELATIONSHIP BETWEEN PROBLEMS, PROBLEM-SOLVING
AND DECISION-MAKING 52
5.3 TYPES OF MANAGERIAL DECISIONS 52
5.4 DECISION-MAKING CONDITIONS 52
5.5 DECISION-MAKING MODELS 53
5.5.1 The decision-making process 54
5.6 GROUP DECISION-MAKING 55
5.7 TECHNIQUES FOR IMPROVING GROUP DECISION-MAKING 56
5.8 TOOLS FOR DECISION-MAKING UNDER VARIOUS
CONDITIONS 56
5.8.1 Quantitative tools for decision-making 56
5.8.2 The Kepner-Fourie method 57
5.8.3 Cost-benefit analysis 57
5.9 SUMMARY 57
Learning unit 6: Information management 63
6.1 INFORMATION MANAGEMENT AND THE DECISION-MAKING
PROCESS 65
6.2 MANAGING INFORMATION FOR A SUSTAINABLE COMPETITIVE
ADVANTAGE 65
6.3 THE BASIC FUNCTIONING OF AN INFORMATION SYSTEM 66
6.3.1 Definition of an information system 66
6.3.2 The basic components of an information system 66
6.4 CHARACTERISTICS AND COSTS OF USEFUL INFORMATION 67
6.5 ORGANISING INFORMATION SYSTEMS 67


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