Chapter 3: Management and entrepreneurship
4 Activities of Management:
• Directing the business
• Using resources to achieve the goals of the business
• Ensuring the business is sustainable; business will operate in future
• Make decisions on how to survive in a constantly changing environment
Management definition:
The process of accepting accountability for the innovative application of resources in
order to achieve business goals.
Levels of management:
• Top management
• Middle management
• Lower management
Top level management
-strategical decisions
Plan for the future of the business, ensuring a sustainable future. They are responsible for
the overall business results and performance within the market place.
Middle level management
-tactical decisions
Interpret top managements decisions and the demands and impact on each business
function. The overall business plan is then implemented by each department ensuing
synergy between the different functional areas in the business
Lower-level management
-operational decisions
Manage operations of the business on a daily basis within the parameters described by
the policies and procedures of the different business functions
10 Managements tasks
• Plan • Coordination
• Leading • Delegation
• Organise • Decision making
• Control • Discipline
• Communication • Motivation
, Planning
Combination of creative and logical thinking used to improve the future performance of
the business.
Principles of effective planning
® Rational process aimed at the future
® Funnel approach
® Flexible
® Planning takes place at all levels in the business
Rational process aimed at the future
Identify a gap between the current status of the business and projections for future plans
of the business. During planning phase decision makers will debate and formulate the
business vision, mission, objectives, policies and procedures. Management has to plan
where and how to obtain the resources
5 Steps in the planning process
1. Establishing objectives
2. Deciding the planning period
3. Considering alternatives
4. Implementing the plan
5. Controlling process
Organising
Identifying activities that should be undertaken in order to ensure the business objectives
are achieved
4 steps involved in organising
1. Considering objectives
2. Identifying and grouping activities
3. Assigning of duties
4. Delegating authority
Advantages of proper organisation
® Patterns of communication
® Authority and responsibility
® Create proper balance
® Stimulate creativity
® Encourage growth
4 Activities of Management:
• Directing the business
• Using resources to achieve the goals of the business
• Ensuring the business is sustainable; business will operate in future
• Make decisions on how to survive in a constantly changing environment
Management definition:
The process of accepting accountability for the innovative application of resources in
order to achieve business goals.
Levels of management:
• Top management
• Middle management
• Lower management
Top level management
-strategical decisions
Plan for the future of the business, ensuring a sustainable future. They are responsible for
the overall business results and performance within the market place.
Middle level management
-tactical decisions
Interpret top managements decisions and the demands and impact on each business
function. The overall business plan is then implemented by each department ensuing
synergy between the different functional areas in the business
Lower-level management
-operational decisions
Manage operations of the business on a daily basis within the parameters described by
the policies and procedures of the different business functions
10 Managements tasks
• Plan • Coordination
• Leading • Delegation
• Organise • Decision making
• Control • Discipline
• Communication • Motivation
, Planning
Combination of creative and logical thinking used to improve the future performance of
the business.
Principles of effective planning
® Rational process aimed at the future
® Funnel approach
® Flexible
® Planning takes place at all levels in the business
Rational process aimed at the future
Identify a gap between the current status of the business and projections for future plans
of the business. During planning phase decision makers will debate and formulate the
business vision, mission, objectives, policies and procedures. Management has to plan
where and how to obtain the resources
5 Steps in the planning process
1. Establishing objectives
2. Deciding the planning period
3. Considering alternatives
4. Implementing the plan
5. Controlling process
Organising
Identifying activities that should be undertaken in order to ensure the business objectives
are achieved
4 steps involved in organising
1. Considering objectives
2. Identifying and grouping activities
3. Assigning of duties
4. Delegating authority
Advantages of proper organisation
® Patterns of communication
® Authority and responsibility
® Create proper balance
® Stimulate creativity
® Encourage growth
