BUSINESS MANAGEMENT AND

ADMINISTATION 1(BMA101B)
Tutorial 2
Study Unit 4 – Section 1 : The Concept of General Administration
• Module Outcome : Identify and explain management tasks, namely planning, organising,
leading, motivating and controlling and how they relate to organisational success.

Key Concept
• Explain and define the concept of management and manager.
• Describe the concept of administration in the context of business.
• Identify management skills and areas of management.
• Discuss management roles.
• Identify the various management levels.

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Study Unit 4 - Explain and define the concept of management and manager.

▪ Different organisations need to be managed.

▪ This section will examine the general principles involved in the
management of a business.

▪ Management is indispensable for the following reasons:

❖Management directs a business towards its goals
❖Management sets and keeps the operations of the business on a balanced course
❖Management keeps the organisation in equilibrium with its environment
❖Management is necessary to reach the goals of the organisation at the highest possible
level of productivity
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Study Unit 4 - Explain and define the concept of management and manager.

CAUSES OF BUSINESS FAILURE

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Study Unit 4 - Explain and define the concept of management and manager.

▪ Management is defined as the process followed by managers to

accomplish a business’s goals and objectives.
▪ It is a process of activities that are carried out to enable a business to
accomplish its goals by employing human, financial, financial and
physical resources for that purpose.
▪ Management does four things: planning, organising, leading and
control
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Study Unit 4 - Explain and define the concept of management and manager.

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Study Unit 4 - Explain and define the concept of management and manager.
Top management
• Small group of executives
who control the business and
have the final authority and
responsibility.
• For example board of
directors, partners, managing
director
Middle management
• Responsible for certain
functional areas of the
business and accountable for
executing policies, plans and
strategies determined by top
management
• For example marketing
manager, purchasing
manager, human resources
manager
Lower management
• Supervisory management,
responsible for smaller
segments of business
• For example the marketing
department could have a
product manager, promotions
manager or sales manager.
Supervisors and foremen are
also included in lower
management.
Study Unit 4 - Managerial Roles

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Study Unit 4 - Managerial Skills
3 Vital managerial skills:

1.Conceptual -Analyse a situation, distinguish between cause

and effect. (Cognitive = thinking ahead).

2.Technical - job-specific knowledge and techniques

(doing/hand skills).

3.Human skills -ability to understand, alter, lead, and control

the behaviour of people and groups (“being”/heart skills).
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Study Unit 4- Skills needed at different managerial levels

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STUDY UNIT 4 Section 2: Planning and Organising
Module Outcome : Identify and explain management tasks namely planning, organising,
leading, motivating and controlling and how they relate to organisational success.

Key Concept
• Explain why planning is needed in a business.
• Explain what a goal is.
• Discuss the steps in the planning process.
• Define the term organising.
• Discuss the different forms of authority.
• Distinguish between authority, accountability, responsibility and delegation.
• Explain departmentalisation.
• Describe the factors that influence organisational structure 11
STUDY UNIT 4 Section 2 - PLANNING

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PLANNING

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STUDY UNIT 4 Section 2 :PLANNING - Managerial goals and plans
▪An organisational goal can be defined as a desirable state of
affairs that an organisation aims to achieve at some point in
the future.
▪Goals are the starting point of the planning process
▪Goals flow directly from the mission statement
▪The focus of goals differs because different goals pertain to
different aspects of the organisation
▪Goals may be short, intermediate or long term
▪Goals may be publicly stated or not
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STUDY UNIT 4 Section 2:PLANNING - Managerial goals and plans
The importance of goals
▪ Goals provide guidance and agreement on the direction of the organisation.
▪ Goals facilitate effective planning.
▪ Goals can inspire and motivate employees.
▪ Goals provide a basis for effective evaluation of employee and organisation
performance.

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PLANNING – Steps in the planning process

1. Establish a goal
2. Develop an alternative plan
3. Evaluate the alternative plan
4. Select a plan
5. Implement the plan
6. Do a reactive planning if necessary

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STUDY UNIT 4 Section 2 PLANNING – The planning process

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Study Unit 4 - The planning process

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Organising
▪ Organising is the process of delegating and coordinating tasks, activities and resources in
order to achieve organisational objectives.
▪ Once the blueprint to achieve organisational goals has been formulated, management must
combine human and other resources, such as money, machines, raw materials and
information or knowledge, in the best possible way to achieve the organisational goals.
▪ Provides detailed analysis of the work to be done and resources to be used to accomplish the
goals of the business
▪ Divides the total workload into activities that can comfortably be performed by an individual
or a group
▪ Promotes productive deployment and utilisation of resources.
• Related activities and tasks of individuals are grouped together rationally in specialised
departments
• Development of an organisational structure results in a mechanism that coordinates the
activities of the whole business into a complete, uniform and harmonious unit.
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 Study Unit 4: Organising
Fundamentals of organising
There are five building blocks fundamentals of organising that
managers can use in constructing an organisation:
1. Designing jobs
2. Grouping jobs (departmentalisation)
3. Establishing reporting relationships
4. Establishing authority relationships
5. Co-ordinating activities.

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Study Unit 4: Organising - Fundamentals of organising
Grouping jobs: Departmentalisation
▪ Various organisational structures may be developed through departmentalisation

▪ These include:

❖Functional departmentalisation

❖Product departmentalisation

❖Location departmentalisation

❖Customer departmentalisation

❖Matrix organisational structure

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Study Unit 4: Organising - Fundamentals of organising

• Functional departmentalisation
Study Unit 4: Organising - Fundamentals of organising
• Product departmentalisation
Study Unit 4: Organising - Fundamentals of organising

• Location departmentalisation
Study Unit 4: Organising - Fundamentals of organising
• Customer departmentalisation
Study Unit 4: Organising - Fundamentals of organising
• Matrix organisational structure
 THE END

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