Summary Introduction to Business Management, ISBN: 9780195992519 MNB 1501Business Management

1.Intro to General Management
1.1.Key concepts
Management approaches, levels of management, management skills required, functions
of management, importance of management moving towards goals and objectives


1.2.Why General Management is needed?
LO1: Explain why Management is needed in the organisation.
Management is a process to accomplish an organisations goals and objectives.
Benefits of Management:

• Gives direction (road map)
o Goals – desired future state over fixed period of time
o Plan – how goals are to be achieved
• Helps with coordination, cohesion and stability of organisation
• Force organisation to look at future & anticipate change
• Reduces impact of change : future-orientated thus minimise threats
• Facilitates control
• Resource planning
• Motivate employees

Main causes of business failure:

• Managerial incompetence
• Lack of managerial experience
• Lack of industry experience
• Lack of clear objectives
• Poor business planning
• Poor cash flow management
• Over expansion
• Poor marketing
• Poor business location
• Economic conditions
• Failure to adapt to changing environment
• Inadequate pricing
• Poor HR relation


1.3.Role of Management
• Directs towards goals
• Sets and Keeps operations on a balanced course
• Keeps the organisation in equilibrium with its environment
• Management is needed to reach the goals at highest level of productivity