Chapter five : General management
There are 3 levels of management :
1.Top management: the General Manager / CEO. Long-term strategic planning.
2.Middle management: functional managers (admin, marketing, production, HC manager etc.).
3.Lower management: supervisors. Day-to-day running.
KEY TERMS :
1. Entrepreneur: combines the factors of production to start a new business and takes the risk of investing his own capital
to make a profit. Usually operates at top management level.
2. Intrapreneur: an “inside entrepreneur” – works within a business and uses its resources to turn innovative ideas into
profit, with the manager’s approval.
3. Corporate governance: the set of rules and processes used by top management to direct and control the business.
4. Sustainability: meeting the current needs of the business without compromising the needs of future generations.
A) Entrepreneurial qualities and skills
Entrepreneurial traits can be learned and developed – no manager can use the excuse “I am not a born entrepreneur”.
1) Identifies an opportunity and pursues it, even if it is risky
2) Takes risks to reap rewards
3) Proactive – keeps scanning the internal and external environment
4) Knows the customers (LSM) and their needs
5) Opportunist – adapts the plan when the market changes
6) Hard work, commitment and perseverance
7) Creativity and innovation – being different from competitors
8) Plans and prepares a contingency plan
9) Obtains and coordinates resources optimally
10) Leadership – convinces and motivates others
11) Evaluates achievements and takes corrective action
, 12) Makes quick decisions
13) Communicates clearly
14) Personally motivated
15) Knows his shortcomings and surrounds himself with a supportive team
B) Leadership vs management
Manager: appointed in a position of authority, which lets him insist people do what he says
Leader: has the expertise to make people aware of the advantages of a course of action, creating the desire to follow him
Ideally a manager must be a leader as well – few people respond to “because I said so”
Differences (Warren Bennis):
1) Manager:
a. Maintains systems
b. Focuses on systems and structure
c. Relies on control
d. Accepts the status quo
2) Leader:
a. Develops new methods
b. Focuses on people
c. Inspires trust
d. Challenges the status quo
C) Management / leadership styles
1) Democratic (participative)
a. Subordinates give input and participate in decisions
b. Advantage: buy-in and commitment from people involved
c. Disadvantage: slower decision making
2) Autocratic
a. Leader makes all decisions, little or no input
b. Best in a crisis or when quick decisions are needed
There are 3 levels of management :
1.Top management: the General Manager / CEO. Long-term strategic planning.
2.Middle management: functional managers (admin, marketing, production, HC manager etc.).
3.Lower management: supervisors. Day-to-day running.
KEY TERMS :
1. Entrepreneur: combines the factors of production to start a new business and takes the risk of investing his own capital
to make a profit. Usually operates at top management level.
2. Intrapreneur: an “inside entrepreneur” – works within a business and uses its resources to turn innovative ideas into
profit, with the manager’s approval.
3. Corporate governance: the set of rules and processes used by top management to direct and control the business.
4. Sustainability: meeting the current needs of the business without compromising the needs of future generations.
A) Entrepreneurial qualities and skills
Entrepreneurial traits can be learned and developed – no manager can use the excuse “I am not a born entrepreneur”.
1) Identifies an opportunity and pursues it, even if it is risky
2) Takes risks to reap rewards
3) Proactive – keeps scanning the internal and external environment
4) Knows the customers (LSM) and their needs
5) Opportunist – adapts the plan when the market changes
6) Hard work, commitment and perseverance
7) Creativity and innovation – being different from competitors
8) Plans and prepares a contingency plan
9) Obtains and coordinates resources optimally
10) Leadership – convinces and motivates others
11) Evaluates achievements and takes corrective action
, 12) Makes quick decisions
13) Communicates clearly
14) Personally motivated
15) Knows his shortcomings and surrounds himself with a supportive team
B) Leadership vs management
Manager: appointed in a position of authority, which lets him insist people do what he says
Leader: has the expertise to make people aware of the advantages of a course of action, creating the desire to follow him
Ideally a manager must be a leader as well – few people respond to “because I said so”
Differences (Warren Bennis):
1) Manager:
a. Maintains systems
b. Focuses on systems and structure
c. Relies on control
d. Accepts the status quo
2) Leader:
a. Develops new methods
b. Focuses on people
c. Inspires trust
d. Challenges the status quo
C) Management / leadership styles
1) Democratic (participative)
a. Subordinates give input and participate in decisions
b. Advantage: buy-in and commitment from people involved
c. Disadvantage: slower decision making
2) Autocratic
a. Leader makes all decisions, little or no input
b. Best in a crisis or when quick decisions are needed
