GENERAL MANAGEMENT
Levels of management
• Top level = CEO
• Task: planning
• Decision: strategic
• Middle level = Line managers
• Task: organising
• Planning: tactical (how)
• Lower level = Supervisors
• Task: leading and controlling
• Planning: operational
Types of entrepreneurship
1. Entrepreneur
combines factors of production (land, labour, capital, entrepreneurship) to start a business
sees an opportunity in the market
operates at the top-level management
2. Intrapreneur
uses the business’s resources to transform innovative ideas into pro t
doesn’t have to operate at the top management level
3. Ultrapreneur
wants to achieve maximum return in the shortest time period
multiple business ventures at once
Leader vs manager
LEADER MANAGER
Develops new methods Maintains systems
Focuses on people Focuses on systems and structures
Inspires trust Relies on control
Challenges the status quo Accepts the status quo
Leadership/management styles
Democratic
allows subordinates to provide input
allows subordinates to participate in decision-making
Advantage = buy-in and commitment from sta = higher morale = higher productivity
Disadvantage = slower decision-making
Autocratic
seldom allows subordinates to provide input
he/she makes all decisions
Advantage = during crises, there is quick decision-making
Disadvantage = low morale as employees feel undervalued by the manager
ff fi
, Laissez-faire
the manager believes that he/she should not interfere in the process of carrying out a task
they will tell employees the expectation and allow them to do the task without interference
Advantage = excellent results IF there is a highly skilled workforce
increased motivation as the manager trusts the employees
Disadvantage = lack of awareness
manager may use this style if they are lazy
Transactional
“give and take” approach
motivates employees to perform additional tasks for additional salary, bonus, and bene ts
Advantage = motivation is increased = increased productivity = increased pro t
valued sta members are retained
Disadvantage = employees regard the reward as insu cient over time
it is not always a nancially sustainable technique
Transformational (charismatic)
The manager will motivate employees by helping them understand the meaning of their
work. (Making them WANT to work)
Advantage = builds trust = performance improves
Employees feel empowered to reach their full potential
Disadvantage = can be seen as a personality trait, which means that managers without this trait
will struggle to motivate sta .
Situational
a combination of all previous styles
manager adapts to whatever is required in a speci c situation
Entrepreneurial qualities, characteristics and skills
1. Able to identify an opportunity
2. Understands the target market
3. Anticipates market trends
4. Commitment and perseverance
5. Creativity and innovation
6. Prepare and implement plans
7. Leadership - motivate others
8. Accountability
9. Evaluate achievements/progress = quality control
10. Personally motivated
11. Communication skills
Motivational factors
Advantages of a motivated sta :
- provide good customer service
- Lower levels of absenteeism
- Lower sta turnover
- More productivity = more opportunities = more pro t
- Boosted morale
- Internal marketing
Monetary factors
Salary increases cost-to-company
Performance bonus pension
Pro t-sharing medical aid
Payment on commission company car
fi
ff ff ff
fi ff fi ffi fi fi fi
Levels of management
• Top level = CEO
• Task: planning
• Decision: strategic
• Middle level = Line managers
• Task: organising
• Planning: tactical (how)
• Lower level = Supervisors
• Task: leading and controlling
• Planning: operational
Types of entrepreneurship
1. Entrepreneur
combines factors of production (land, labour, capital, entrepreneurship) to start a business
sees an opportunity in the market
operates at the top-level management
2. Intrapreneur
uses the business’s resources to transform innovative ideas into pro t
doesn’t have to operate at the top management level
3. Ultrapreneur
wants to achieve maximum return in the shortest time period
multiple business ventures at once
Leader vs manager
LEADER MANAGER
Develops new methods Maintains systems
Focuses on people Focuses on systems and structures
Inspires trust Relies on control
Challenges the status quo Accepts the status quo
Leadership/management styles
Democratic
allows subordinates to provide input
allows subordinates to participate in decision-making
Advantage = buy-in and commitment from sta = higher morale = higher productivity
Disadvantage = slower decision-making
Autocratic
seldom allows subordinates to provide input
he/she makes all decisions
Advantage = during crises, there is quick decision-making
Disadvantage = low morale as employees feel undervalued by the manager
ff fi
, Laissez-faire
the manager believes that he/she should not interfere in the process of carrying out a task
they will tell employees the expectation and allow them to do the task without interference
Advantage = excellent results IF there is a highly skilled workforce
increased motivation as the manager trusts the employees
Disadvantage = lack of awareness
manager may use this style if they are lazy
Transactional
“give and take” approach
motivates employees to perform additional tasks for additional salary, bonus, and bene ts
Advantage = motivation is increased = increased productivity = increased pro t
valued sta members are retained
Disadvantage = employees regard the reward as insu cient over time
it is not always a nancially sustainable technique
Transformational (charismatic)
The manager will motivate employees by helping them understand the meaning of their
work. (Making them WANT to work)
Advantage = builds trust = performance improves
Employees feel empowered to reach their full potential
Disadvantage = can be seen as a personality trait, which means that managers without this trait
will struggle to motivate sta .
Situational
a combination of all previous styles
manager adapts to whatever is required in a speci c situation
Entrepreneurial qualities, characteristics and skills
1. Able to identify an opportunity
2. Understands the target market
3. Anticipates market trends
4. Commitment and perseverance
5. Creativity and innovation
6. Prepare and implement plans
7. Leadership - motivate others
8. Accountability
9. Evaluate achievements/progress = quality control
10. Personally motivated
11. Communication skills
Motivational factors
Advantages of a motivated sta :
- provide good customer service
- Lower levels of absenteeism
- Lower sta turnover
- More productivity = more opportunities = more pro t
- Boosted morale
- Internal marketing
Monetary factors
Salary increases cost-to-company
Performance bonus pension
Pro t-sharing medical aid
Payment on commission company car
fi
ff ff ff
fi ff fi ffi fi fi fi
