MANAGEMENT PRINCIPLES study pack

MANAGEMENT PRINCIPLES CHAPTER 1 INTRODUCTION TO MANAGEMENT 1.2 ORGANISATIONS AND MANAGERS All the products and services required to satisfy the consumer’s and, ultimately, society’s needs are produced and provided by specialised organisations such as hypermarkets, sports clubs, universities, car manufacturers, banks, guest houses, bicycle shops, hospitals, and airlines to mention but a few. People’s lives are influenced in some way or another by the managers of these numerous business organisations. The following resources are used:  Human resources  Capital or financial resources  Physical resources  Information resources. 1.3 THE NATURE OF MANAGEMENT Managers therefore combine, allocate, coordinate, and deploy resources or inputs in such a way that the organisation’s goals are achieved as productively as possible. In doing so, management follows a specific process. A process is a systematic way of doing things. The entails 4 fundamental management functions: -  Planning  Organizing  Leading  Controlling THE MANAGEMENT PROCESS COMPRISES PLANNING, ORGANISING, LEADING AND CONTROLLING. A model is a simplification of the real world in order to explain complex relationships in easy-tounderstand terms. 1 | P a g e Organising Controlling Planning Leading Resources Human Financial Physical Information Performance Achieve goals Products Services Productivity Profit The fundamental functions of a manager link up in a specific sequence to form a process. Figure 1.2 illustrates the process as a logical sequence of actions. Planning (Part II) 1.4 A DEFINITION OF MANAGEMENT Management can be defined as the process of planning, organizing, leading, and controlling the resources of the organisation to predetermined stated organisational goals as productively as possible. Planning is the management function that determines the organisation’s vision, mission and goals. It involves identifying ways of reaching the goals and finding the resources needed for the task. Tactical plans are made by functional managers (such as financial, human resources, research and development, marketing, and operations managers) to support the organisation’s long-term plans. Operational plans are made by lower management (often called “first line” or “supervisory management”) to plan ahead for short periods such as weekly and monthly schedule