English Course revision

Business: It can be defined as any professional, commercial, industrial or craft activity which is
organized and inducted for the supplying for goods and services at a profit.

Types of businesses:

Type Advantages Disadvantages

The sole partnership -You’re your only boss -Unlimited liabilities

-You make your own decisions: name, -If you’re unable of paying your debts,
hiring, firing, working time, holidays… you declare bankruptcy and loose
you’re personal assets as well as your
investment

The partnership -More ideas -Disagreement due to

-Exchange misunderstanding
-Limited liabilities -Conflicts
-Team work -The Unexpected partner
-Large Capital
-If you declare bankruptcy, you only
lose your investment following your
part in the capital

The corporation(private) -Huge capital -Unknown partners that could actually

-Can invest in plants (Factories) and in not participate in the management of
research the business and just take profit of the
-Innovation part of the capital they invested with
-Limited Liabilities

NB:
The Public corporation also known as the non-profit organization are the governmental institutions
The types of partners :

The secret partner : is not known by the

public but does participat in the
Types of partner

management of the business

The silent partner : is known by the public

but does not participate in the
management of the business

Management: It’s the effective and efficient integration and coordination of the resources to
achieve desired goals

What do the managers manage?

+ Work

+ People

+ Production and operations

- The people that have parts in the corporation are called the Shareholders or Stockholders

- The stakeholders : + Internal : CEO, VP, Shareholders, the white and blue collar
+ External: The providers, the bank...
The Classical management cycle:

Investment,
decision, planing

Controling Organizing

Staffing = Looking
Directing
for the staff

The pyramid of management organization:

The Human Resources management: (The stages of HR management)

- Attract a productive working force: they need workers so they advertise, you apply with a CV
or Application letters, they select the best profiles and make a short list of people in order to
have a job interview with them.
- Develop the PWF: with Training (Internal or external), Advise and orientation
- Maintain the PWF: By salary, promotions, Bonuses, Facilities, Rewards...

The Decision Making Process:

- Identify an define the problem

- Develop alternative solutions
- Evaluate those alternative solutions: Risk, certainty and uncertainty
- Select the best alternative solution

Types of management:

- The Coercive Management: Based on Fear, Punishment and Threats

- The collaborative or Participative Management: Based on the Team word, the manager is
taken as a part of the team
- The Calculative Management: Based on ‘’what do I get from it?’’

The difference between a Manager and a Leader:

Manager Leader
Have subordinate Have Followers
Holds Authority Is motivational
Reacts to change Creates Change
Plan Build
Blames Accept Blame
Do it Let’s do it
Tells you what to do Show you how to do

NB: A leader focuses on why and how, a Manager focuses on what and when
 Stages of Team Building:

- Forming
- Storming
- Norming: Setting norms to follow
- Performing

The classical Management Theory:

Theory X (McGregor) Theory Y (McGregor) Theory Z (William Ouchi)

-The primary source of employee -People are not only motivated by -It believes in Long term
motivation is monetary the money. employment

-The best way to motivate people -People can be motivated by their -Concerned with the employees
is by : Threats or money work condition well-being

-People are aware of their -Work under cooperative

responsibilities, they’re creative conditions
and self-directed
-Managers are ought to trust
-We can use the employee’s own their staff
need for fulfillment as the
motivator
 The company Structure:

Name of the Structure Advantages Disadvantages

Chain of Command : -Everybody knows who their boss
One or a group of person at the is and who are their subordinate
top and other people below at
each successive level

Functional Structure : -It helps organizing the companies -People are more concerned
The company is devised in that have much more functions for about the success of their own
department following the them to fit into a single hierarchy department than the company as
functions they have a whole
-There are conflicts between
department

Flattening Hierarchy and -Helps motivating the staff by

Delegating Responsibilities
giving them more responsibilities
-It reduces The chain of command
-Helps companies to reduce a layer
of workers from the structure
6helps small companies owners to
keep control over their business

Matrix Management : -It can become quite Complex so

People report to more than one we sometimes need to give one
superior department priority in decision
making over another one

Teams : -Autonomous groups or teams -Not always good at decision

Autonomous groups or teams responsible for an entire Project making
responsible for an entire Project. -Split up as soon as the project is -They require a Strong Leader
They split up as soon as the completed
project is completed