BUSINESS NOTES
GRADE 12
CHAPTER 5: GENERAL MANAGEMENT & CORPORATE
GOVERNANCE
General Manager Levels
Top Management: General Manager
Middle Management: Functional Managers (Admin,
Purchasing, Production, Marketing, Human Capital)
Lower Management: Supervisors
1. Entrepreneurship and Intrapreneurship
Entrepreneur
Combines capital, labour, and raw materials to start a
business
Sees opportunities, takes risks, invests capital for profit
Usually operates at top management level
Intrapreneur
“Inside entrepreneur”
Works within an existing business
Uses entrepreneurial skills and business resources to turn
ideas into profit
Usually implements ideas with manager approval
2. Entrepreneurial Qualities, Characteristics and Skills
Traits can be developed; not only for “born entrepreneurs”
Key Qualities/characteristics:
o Identify opportunities and pursue them (despite risks)
o Understand the target market and scan the
internal/external environment for O & T’s
o Know customer needs (LSM) and adjust business plan
accordingly
1
, o Anticipate market trends, adapt to changing
environments
o Committed and persevering
o Creative and innovative (differentiation strategy)
o Prepare and implement plans; include contingency plans
o Coordinate resources effectively
o Strong leadership skills to inspire and motivate
o Evaluate progress and make corrections
o Make quick decisions on opportunities
o Communicate clearly and accurately
o Self-motivated and often prefers independence or
leadership
o Aware of personal weaknesses and surrounds
themselves with a strong team
3. Leadership vs. Management
Manager
Appointed to a position of authority
Can give instructions and expect compliance
Leader
Has expertise and inspires others to follow willingly
Ideal manager is also a leader
Modern managers value team strengths and contributions
Warren Bennis’ Comparisons:
Manager: Leader:
Maintains systems Develops new methods
Focuses on systems/structure Focuses on people
Relies on control Inspires trust
Challenges the status
Accepts the status quo
quo
2
, 4. Management
4.1 Management styles
4.1.1 Democratic
Participative style
Allows team input in decision-making
Advantage: Buy-in and commitment
Disadvantage: Slower decisions
4.1.2 Autocratic
Makes decisions without input
Useful in: Crises or unpopular decisions
Disadvantage: Low employee morale as they feel
undervalued
4.1.3 Laissez-faire
Non-interfering; sets expectations but allows freedom
Works well with: Skilled and motivated teams
4.1.4 Transactional
“Give and take” approach
Motivation through rewards (salary, bonuses)
Problem: If rewards feel insufficient, demotivation and strikes
may occur
4.1.5 Transformational
Charismatic, inspirational leader
Focuses on purpose and teamwork
Builds trust and confidence
Improves creativity, problem-solving, productivity
Example: Sam Walton (Wal-Mart) – valued appreciation and
praise
3
GRADE 12
CHAPTER 5: GENERAL MANAGEMENT & CORPORATE
GOVERNANCE
General Manager Levels
Top Management: General Manager
Middle Management: Functional Managers (Admin,
Purchasing, Production, Marketing, Human Capital)
Lower Management: Supervisors
1. Entrepreneurship and Intrapreneurship
Entrepreneur
Combines capital, labour, and raw materials to start a
business
Sees opportunities, takes risks, invests capital for profit
Usually operates at top management level
Intrapreneur
“Inside entrepreneur”
Works within an existing business
Uses entrepreneurial skills and business resources to turn
ideas into profit
Usually implements ideas with manager approval
2. Entrepreneurial Qualities, Characteristics and Skills
Traits can be developed; not only for “born entrepreneurs”
Key Qualities/characteristics:
o Identify opportunities and pursue them (despite risks)
o Understand the target market and scan the
internal/external environment for O & T’s
o Know customer needs (LSM) and adjust business plan
accordingly
1
, o Anticipate market trends, adapt to changing
environments
o Committed and persevering
o Creative and innovative (differentiation strategy)
o Prepare and implement plans; include contingency plans
o Coordinate resources effectively
o Strong leadership skills to inspire and motivate
o Evaluate progress and make corrections
o Make quick decisions on opportunities
o Communicate clearly and accurately
o Self-motivated and often prefers independence or
leadership
o Aware of personal weaknesses and surrounds
themselves with a strong team
3. Leadership vs. Management
Manager
Appointed to a position of authority
Can give instructions and expect compliance
Leader
Has expertise and inspires others to follow willingly
Ideal manager is also a leader
Modern managers value team strengths and contributions
Warren Bennis’ Comparisons:
Manager: Leader:
Maintains systems Develops new methods
Focuses on systems/structure Focuses on people
Relies on control Inspires trust
Challenges the status
Accepts the status quo
quo
2
, 4. Management
4.1 Management styles
4.1.1 Democratic
Participative style
Allows team input in decision-making
Advantage: Buy-in and commitment
Disadvantage: Slower decisions
4.1.2 Autocratic
Makes decisions without input
Useful in: Crises or unpopular decisions
Disadvantage: Low employee morale as they feel
undervalued
4.1.3 Laissez-faire
Non-interfering; sets expectations but allows freedom
Works well with: Skilled and motivated teams
4.1.4 Transactional
“Give and take” approach
Motivation through rewards (salary, bonuses)
Problem: If rewards feel insufficient, demotivation and strikes
may occur
4.1.5 Transformational
Charismatic, inspirational leader
Focuses on purpose and teamwork
Builds trust and confidence
Improves creativity, problem-solving, productivity
Example: Sam Walton (Wal-Mart) – valued appreciation and
praise
3
