Topic 2a

INSTITUTE OF ACCOUNTANCY ARUSHA
MODULE NAME : INTRODUCTION TO

BUSINESS MANAGEMENT
MODULE CODE : BMT 05106
SEMESTER : I
LEVEL : NTA Level 5
LOCATION : ARUSHA
HOURS PER WEEK: LECTURE 2 Hrs
TUTORIAL 2 Hr
Thursday, December 1, 2022 GLORY MSELE 1
PLANNING FUNCTION AND BUSINESS
RESOURCES
SUB TOPIC
 Various resources needed in business operation
• Explain planning function in business operations
• Identify and explain resources in business operations
• Explain qualities of good leadership and challenges
facing successful utilization of business resources.

PLANNING
Planning Function in Business Operations
Planning
“It is concerned with deciding in advance what to
do, how to do, when to do and who is to do it” by
Koontz & “O” Donell.
Thus, it is a pre-determined course of action to
achieve a specified aim or goal.
Systematic planning precisely considers available
and prospective resources of the business to manage
effective coordination and execution.

Cont…
Activities and importance of planning:
 Creation of goals
 Planning Provides Direction
 Planning Tackles Uncertainty
 Reduces Overlapping and Wasteful Activities
 Promotes Innovative Ideas
 Facilitates Decision Making
 Establishes Standards for Controlling

Cont…
Creation of Goals
Planning involves the process of
creating realistic goals to be achieved.
Thus makes a business goal – oriented
which is the fact that everyone knows
what their end is, and can work
towards it.
A frame work of achieving those goals
known as SMART an acronym that
stands for - specific, measurable,
achievable, realistic and time-based.
Each element of the SMART works
together to create goals that are
carefully planned, clear and trackable.
Cont…
Planning Provides Direction
Planning ensures that goals and objectives are
clearly defined so that, they act as a guide for
deciding what action should be taken and in
which direction.
Planning provides directions where the efforts
should be channelized to achieve the desired
results in the most efficient manner possible.

Cont…
Planning Tackles Uncertainty
Planning helps to Tackles uncertainty because
planners try to foresee the future by making
some assumptions regarding future
keeping in mind their past experiences and
scanning of business environments. The plans
are made to overcome such uncertainties.

Cont…
Planning Reduces Overlapping and
Wasteful Activities
Planning serves as the basis of coordinating
the activities and efforts of different divisions,
departments and individuals. It helps in
avoiding confusion and misunderstanding.
Since planning ensures clarity in thought and
action, work is carried out smoothly without
any interruptions.

Cont…
Promotes Innovative Ideas
Today’s world and markets are growing dynamic
every day, in order to exceed competition, out-of-
the-box ideas are required to manage the
functions of the enterprise.
Not necessarily, does the enterprise need to
discover a new product rather just the idea of
differently managing operations resulting in a lot
of cost-saving

Cont…
Facilitates Decision Making
Planning plays an integral role in making
important decisions.
Whenever an entrepreneur has to make a
decision he has to think about the bearing of
such a decision on the overall plan and the
business’ route.
Thus planning acts as a guide to make
efficient and accurate decisions.

Cont…
Establishes Standards for Controlling
Planning plays an important role in facilitating
the functions of controlling and coordination.
Without a solid objective created by virtue of
plans a business will not be able to scrutinize
where it went wrong.
Similarly without planning within departments
coordination will not be possible. Coordination
involves aligning all the activities of the business
in such a way that the end result is achieved in
an optimum manner.
BUSINESS OPERATIONS
These are core activities that an organization
does to create value and earn profit.
The activities can be optimized to generate
sufficient revenues.
Business operations change as the business
grows, and the management should plan to
accommodate the changes to prevent glitches
occurring in the system.

Cont…
Resources
A resource is considered as a source or
supply from which benefits are produced.
They have got value and used to satisfy
our needs.
The concept of resources has been
applied in various forms such as
economics, commerce, environment and
human society.
Cont…
Resources are essential elements of a
business, including land, capital, material,
machines, time, energy, manpower,
management, knowledge, expertise and
information.
In business, resources are transformed into
usable products or services.

RESOURCES NEEDED IN BUSINESS OPERATIONS
Resources are mainly categorized as follows:-
Physical Resources
Human Resources
Intellectual Resources
Financial Resources
Time resources

Cont…
Physical Resources
These are considered as tangible assets which the
organization uses to create value offering and value
proposition to its customers.
Physical resources may include the equipment's,
buildings, inventory, the manufacturing plant and
distribution network.
Physical resources are important for the
functioning of the organization since without things
like equipment, inventory and manufacturing plant it
is difficult for the business to function.

Cont….
Human Resources
Employees are not considered to be an
important but are the most essential value
assets of any organization.
They are important for the functioning of any
organization without which the activities of an
organization will come to a standstill.
Human resources are also important in
customer service to understand the nature of
the problem the customer and provide
customized solutions
Cont…
Intellectual Resources
 These are the types of business resources
which are non physical and intangible in nature
like patents of the product, brands of the
organization, copyright over important
materials and even the partnerships.
 Customer data and customer knowledge and
even the talent in the organization as a form of
intellectual resource.
 Once they are developed the can offer unique
advantages to the organization.

Cont…
Financial Resources
Financial resources are the monetary resources
necessary to start and operate a business and are
usually the biggest challenge that entrepreneurs
face , these include cash, credit, and lines of credit.
If you don’t have funding, you are not able to
secure your basic resources that is, hire employees,
purchase inventory, furniture, or equipment.
As an entrepreneur you can get fund from:- Bank
Loans, Friends and Family Members or Grants.

Cont…
Time Resources
One of the most badly utilized resources that
various managers have is time.
Many are asking this question themselves “ how
to optimize this critical resources and how do I
get more done in less time with less stress?”
Time is the more valuable resources than
money, the process of using your time more
effectively can lead to accomplishment of
important tasks, priotizing your workload and
meeting the deadlines.
FEATURES OF RESOURCES
Utility: Resources are used to satisfy the
human wants.
Limited availability: Resources are
inadequate (scarce) and limited.
Potential for depletion or consumption:
Resources are gradually reduced as they are
used.

Cont…
Resources are interdependent in nature -
Things depends on each other - For example,
living things that cannot make their own food
must eat other organisms for food.
Alternative uses- more than one uses to which
a resource can be put. For example, land it can
be used to grow crops, it can be used for
buildings and other important activities.

NOTE:
Resources differ according to their origin, such as:-
Renewable resources example - (water)
Non-renewable resources - (coal or nuclear
energy)
Tangible resources - (buildings or Machines)
Intangible resources - (intellectual resources)
 Potential resources - (Uranium in Ladakh)
Actual resources - (Trees)
These assets are essential in the operation of the
business enterprise.
LEADERSHIP
Leadership is the process of
influencing people and providing an
environment for them to achieve
team or organizational objectives.
Leading involves motivating
employees as well as the members of
a business to work toward common
goals.
A few good managers have the
ability to inspire their employees to
reach their goals.

Cont…
Qualities of a Good Leader in Business Operation
Integrity
Ability to delegate
Communication
Self-awareness
Gratitude
Influence
Empathy
Courage
Respect

Cont…
Integrity
Though it may not necessarily be a metric in employee
evaluations, integrity is an essential leadership trait for
the individual and the organization. Make sure your
organization reinforces the importance of honesty and
integrity to leaders at various levels.
Ability to Delegate
Delegating is one of the core responsibilities of a leader,
but it can be tricky to delegate effectively. The best
leaders build trust with employees in order to delegate
more effectively.

Cont…
Communication
The best leaders are skilled communicators
who are able to communicate in a variety of
ways, from transmitting information to inspiring
others.
And must be able to listen to, and communicate
with, a wide range of people across roles, social
identities, and more.
The quality and effectiveness of communication
among leaders across the business directly
affects the success of your business strategy, too.
Cont…
Self-Awareness
While this is a more inwardly focused trait, self-
awareness and humility are paramount for
leadership. The better you understand yourself and
recognize your own strengths and weaknesses, the
more effective you can be as a leader.
Gratitude
Being thankful can lead to higher self-esteem,
reduced depression and anxiety, and better sleep. The
best leaders know how to demonstrate sincere
gratitude in the workplace.

Cont…
Influence
But being able to convince people through logical,
emotional, or cooperative appeals is an important trait
of inspiring, effective leaders. It requires emotional
intelligence and trust.
Empathy
Involves attempting to understand the feelings and
emotions of the employee. This involve gently
encouraging the leader to explain and elaborate
feelings and emotions for improving workplace
conditions for those around you.

Cont…
Courage
Courage is a key trait of good leaders. Rather
than avoiding problems or allowing conflicts to
fester, courage enables leaders to step up and
move things in the right direction.
Respect
Treating people with respect on a daily basis is
one of the most important things a leader can
do. It will ease tensions and conflict, create trust,
and improve effectiveness.
Cont…
Leadership Style Appropriate for Business Operation
Leadership style
Refers to leader’s approach to providing direction,
implementing plans and motivating people. Types of
leadership styles includes:- Autocratic, Bureaucratic,
Laissez-faire and Democratic.
Leadership Style Appropriate for Business Operation
are:- Democratic Leadership and Bureaucratic
Leadership Style.

Cont…
Democratic Leadership
Is a leadership style in which members of
the group take a more participative role in
the decision-making process.
Researchers have found that this learning
style is usually one of the most effective and
lead to higher productivity, better
contributions from group members and
increased group morale.

Cont…
Bureaucratic Leadership Style
This is where the manager manages "by the
book¨ Everything must be done according to
procedure or policy.
This style can be effective when:- Employees
are performing routine tasks over and over,
Employees need to understand certain standards
or procedures, and/or Employees are working
with dangerous or delicate equipment that
requires a definite set of procedures to operate.

CHALLENGES FACING SUCCESSFUL UTILIZATION
OF RESOURCES IN BUSINESS
Resource capacity planning is poor
Resource risks are not assessed
Resource use is not optimized
Unrealistic schedules/deadlines
Inconsistent resources assignment
Too many unplanned requests for resources
Shifting resources in response to unexpected
problems

Cont…
Resource Capacity Planning is Poor
Capacity is the availability of resources to get
the specific task done, or deliver a project on
time and within budget.
Often organizations don’t have any idea how to
measure their capacity and as a result, they are
unable to plan resource allocation.
One way to tackle this is to adopt a purpose-
built resource management tool or management
software.
Cont…
Resource Risks are not Assessed
Many business only assess risks in relation to
processes, technology and/or unforeseen events.
But they don’t always think about the risks
associated with resources.
A business or resources manager should sit down
and create a list of every possible risk and
opportunity they can think of while allocating
resources.

Cont…
Resource use is not optimized
 Sometimes, already allocated resources are
not optimized.
 Either they are working on low priority
activities, rather than activities which meet
organizational goals.
 A project manager needs to be aware of the
project development and be able spot this.

Cont….
Schedules/deadlines are unrealistic
Unrealistic or tight deadlines are the challenge on
business management, they should be avoided at
all costs.
Resources are assigned inconsistently
Allocating resources on a whim without analyzing
incoming demands, understanding the priorities, or
considering the business's goals can be dangerous.
Before assigning resources, it is important to have a
holistic view of incoming demand and available
resource capacity.
Cont…
Shifting resources in response to unexpected
problems
A business that operates complex projects,
unexpected problems and issues do crop up, which
is quite natural.
Even under the most efficient planning, unforeseen
challenges will always be an issue.
That doesn’t mean one should react by shifting
resources here and there sporadically.

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INSTITUTE OF ACCOUNTANCY ARUSHA

MODULE NAME : INTRODUCTION TO

Thursday, December 1, 2022 GLORY MSELE 2

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