Business Management Notes - All topics in detail

Business​ ​Management

Nature​ ​of​ ​management

MANAGEMENT:​ ​Working​ ​with​ ​people​ ​and​ ​other​ ​resources​ ​to​ ​achieve​ ​desired​ ​goals.
→​ ​Management​ ​is​ ​the​ ​process​ ​of:
(i)​ ​coordinating​ ​a​ ​business’s​ ​resources​ ​to​ ​achieve​ ​its​ ​goals
(ii)​ ​working​ ​with​ ​and​ ​through​ ​other​ ​people​ ​to​ ​achieve​ ​business​ ​goals​ ​in​ ​a​ ​changing
environment.

❖ Features​ ​of​ ​effective​ ​management

EFFECTIVE:​ ​Measures​ ​the​ ​degree​ ​to​ ​which​ ​a​ ​goal​ ​has​ ​been​ ​achieved.
EFFICIENCY:​ ​compares​ ​the​ ​resources​ ​needed​ ​to​ ​achieve​ ​a​ ​goal​ ​(the​ ​costs)​ ​against​ ​what
was​ ​actually​ ​achieved​ ​(the​ ​benefits).
→​ ​The​ ​role​ ​of​ ​effective​ ​management​ ​is​ ​to​ ​make​ ​sure​ ​the​ ​joint​ ​efforts​ ​of​ ​employees
are​ ​directed​ ​towards​ ​achieving​ ​the​ ​business’s​ ​goals
→​ ​Effective​ ​management​ ​is​ ​usually​ ​the​ ​major​ ​factor​ ​influencing​ ​the​ ​success​ ​or​ ​failure​ ​of​ ​a
business
→​ ​The​ ​typical​ ​manager​ ​is​ ​constantly​ ​interrupted,​ ​with​ ​no​ ​more​ ​than​ ​approximately​ ​10
minutes​ ​spent​ ​on​ ​any​ ​one​ ​activity.​ ​The​ ​manager​ ​takes​ ​on​ ​a​ ​great​ ​deal​ ​and​ ​has​ ​little​ ​time​ ​for
reflection.​ ​If​ ​a​ ​manager​ ​is​ ​able​ ​to​ ​multitask​ ​successfully​ ​the​ ​business​ ​will​ ​follow​ ​suit.
→​ ​They​ ​must​ ​interpret​ ​and​ ​analyse​ ​information,​ ​attend​ ​meetings​ ​and​ ​communicate​ ​regularly
with​ ​other​ ​parts​ ​of​ ​the​ ​business.
→​ ​The​ ​manager’s​ ​job​ ​is​ ​more​ ​art​ ​than​ ​science.​ ​Managers​ ​rely​ ​heavily​ ​on​ ​judgement,​ ​past
experience,​ ​perception​ ​and​ ​intuition.

❖ Skills​ ​of​ ​management
➢ Interpersonal:

INTERPERSONAL:​ ​Are​ ​those​ ​skills​ ​needed​ ​to​ ​work​ ​and​ ​communicate​ ​with​ ​other​ ​people​ ​and
to​ ​understand​ ​their​ ​needs.
→​ ​Centre​ ​on​ ​the​ ​ability​ ​to​ ​relate​ ​to​ ​people,​ ​being​ ​aware​ ​of​ ​and​ ​appreciating​ ​their​ ​needs,​ ​and
showing​ ​genuine​ ​understanding.
→​ ​People​ ​skills​ ​include​ ​the​ ​ability​ ​to​ ​communicate,​ ​motivate,​ ​lead​ ​and​ ​inspire

➢ Communication

COMMUNICATION:​ ​the​ ​exchange​ ​of​ ​information​ ​between​ ​people;​ ​the​ ​sending​ ​and​ ​receiving
of​ ​messages.
→​ ​It’s​ ​not​ ​just​ ​about​ ​what​ ​you​ ​say,​ ​it’s​ ​about​ ​how​ ​you​ ​say​ ​it​ ​and​ ​what​ ​medium​ ​you​ ​choose​ ​to
get​ ​your​ ​message​ ​across.
→​ ​There​ ​is​ ​no​ ​simple​ ​recipe​ ​for​ ​great​ ​communication,​ ​but​ ​the​ ​Chinese​ ​philosopher
Confucius​ ​once​ ​said:​ ​‘Tell​ ​me​ ​and​ ​I’ll​ ​forget.​ ​Show​ ​me​ ​and​ ​I’ll​ ​remember.​ ​Involve​ ​me​ ​and​ ​I’ll
understand.’
→​ ​Managers​ ​who​ ​are​ ​effective​ ​communicators​ ​and​ ​who​ ​are​ ​able​ ​to​ ​share​ ​their​ ​thoughts​ ​and
plans​ ​will​ ​fi​ ​nd​ ​it​ ​easy​ ​to​ ​influence​ ​others
BODY​ ​LANGUAGE:​ ​the​ ​use​ ​of​ ​gestures,​ ​facial​ ​expressions​ ​and​ ​posture​ ​to​ ​communicate.
→​ ​Extreme​ ​care​ ​should​ ​be​ ​taken​ ​with​ ​body​ ​language​ ​communication​ ​because​ ​gestures​ ​can
have​ ​different​ ​meanings​ ​in​ ​different​ ​cultures.

, ➢ Strategic​ ​thinking

STRATEGIC​ ​THINKING:​ ​Allows​ ​a​ ​manager​ ​to​ ​see​ ​the​ ​business​ ​as​ ​a​ ​whole​ ​and​ ​to​ ​take​ ​the
broad,​ ​long-term​ ​view.
→​ ​Strategic​ ​thinking​ ​involves​ ​thinking​ ​about​ ​a​ ​business’s​ ​future​ ​direction​ ​and​ ​what
future​ ​goals​ ​the​ ​business​ ​wants​ ​to​ ​achieve.
→​ ​The​ ​manager​ ​may​ ​then;
- Visualise​ ​how​ ​work​ ​teams​ ​and​ ​individuals​ ​interrelate
- Understand​ ​the​ ​effect​ ​of​ ​any​ ​action​ ​on​ ​the​ ​business
- Gain​ ​insights​ ​into​ ​an​ ​uncertain​ ​future
- See​ ​the​ ​business​ ​in​ ​the​ ​context​ ​of​ ​events​ ​and​ ​trends,​ ​and​ ​identify​ ​opportunities​ ​or
threats.

➢ Vision
VISION:​ ​is​ ​the​ ​clear,​ ​shared​ ​sense​ ​of​ ​direction​ ​that​ ​allows​ ​people​ ​to​ ​attain​ ​a​ ​common​ ​goal.
→​ ​Managers​ ​must​ ​be​ ​able​ ​to​ ​provide​ ​a​ ​vision​ ​as​ ​to​ ​where​ ​the​ ​business​ ​is​ ​headed​ ​and​ ​what
it​ ​is​ ​trying​ ​to​ ​achieve.
→​ ​To​ ​share​ ​their​ ​vision​ ​with​ ​others​ ​and​ ​inspire​ ​them,​ ​managers​ ​will​ ​have​ ​to​ ​display
effective​ ​leadership​ ​qualities

LEADERSHIP:​ ​The​ ​ability​ ​to​ ​influence​ ​people​ ​to​ ​set​ ​and​ ​achieve​ ​specific​ ​goals.

➢ Problem-solving
PROBLEM-SOLVING:​ ​broad​ ​set​ ​of​ ​activities​ ​involved​ ​in​ ​searching​ ​for,​ ​identifying​ ​and​ ​then
implementing​ ​a​ ​course​ ​of​ ​action​ ​to​ ​correct​ ​an​ ​unworkable​ ​situation
→​ ​Managers​ ​must​ ​be​ ​able​ ​to​ ​solve​ ​problems​ ​—​ ​finding​ ​and​ ​then​ ​implementing​ ​a​ ​course​ ​of
action​ ​to​ ​correct​ ​an​ ​unworkable​ ​situation.

➢ Decision-making
DECISION-MAKING:​ ​The​ ​process​ ​of​ ​identifying​ ​the​ ​options​ ​available​ ​and​ ​then​ ​choosing​ ​a
specific​ ​course​ ​of​ ​action​ ​to​ ​solve​ ​a​ ​specific​ ​problem.
→​ ​Managers​ ​must​ ​be​ ​able​ ​to​ ​make​ ​decisions​ ​—​ ​identifying​ ​the​ ​options​ ​available
and​ ​then​ ​choosing​ ​a​ ​specific​ ​course​ ​of​ ​action​ ​to​ ​solve​ ​the​ ​specifi​ ​c​ ​problem

➢ Flexibility
AND
➢ Adaptability​ ​to​ ​change
→​ ​Successful​ ​managers​ ​are​ ​those​ ​who​ ​anticipate​ ​and​ ​adjust​ ​to​ ​changing​ ​circumstances.
→​ ​They​ ​must​ ​be​ ​flexible,​ ​adaptable​ ​and​ ​proactive​ ​rather​ ​than​ ​reactive.
PROACTIVE:​ ​refers​ ​to​ ​a​ ​management​ ​style​ ​that​ ​incorporates​ ​dynamic​ ​action​ ​and​ ​forward
planning​ ​to​ ​achieve​ ​particular​ ​objectives.
→​ ​Businesses​ ​today​ ​are​ ​recruiting​ ​and​ ​selecting​ ​managers​ ​who​ ​can​ ​cope​ ​with​ ​unfamiliar
and​ ​unexpected​ ​circumstances.

➢ Reconciling​ ​the​ ​conflicting​ ​interests​ ​of​ ​stakeholders

→​ ​Stakeholders​ ​are​ ​groups​ ​and​ ​individuals​ ​who​ ​interact​ ​with​ ​the​ ​business​ ​and​ ​thus
have​ ​a​ ​vested​ ​interest​ ​in​ ​its​ ​activities.