Professional Documents
Culture Documents
Learning outcomes
□ Define the term management
□ Differentiate between the concepts efficient and effective
□ Discuss the various resources needed for an organisation
□ Illustrate the physical transformation process
□ Explain the four fundamental management functions
□ Explain the six additional management functions
□ Describe each of the management skills required by the different levels
of management
□ Distinguish between the different levels of management
□ Briefly distinguish between all the functions of a business
□ Discuss how general management interacts with other business functions
Key Focus of Business Management
□ Free market principle: satisfaction of multiple human needs.
□ Factors of production/inputs: entrepreneurship, natural resources,
labour and capital.
□ Effectiveness & Efficiency: profit & satisfy needs/wants
□ Managerial Skills & qualities: for navigating through turbulent business
environment & complex problem solving
□ Four (4) fundamental management functions:
- Planning
- Organizing
- Leading
- Control
Need for management
Inputs Outputs
Transformation
(Resources) (Performance)
• Human • Physical • Achievement of
• Financial Transformation goals
Process
• Physical • Products
• Information • Services
• Entrepreneurship • Management
• Productivity
Process
• Job creation
• Profit
1. Human resources
2. Financial resources
Owners’ contribution vs Non-owners’ contribution
SAVINGS
4. Natural resources
SCARCE
LIMITED
❖Provided by nature
❖Examples: crude oil, water, minerals (zinc, copper, iron, gold, diamonds etc.
Need for management -
Organisational resources (inputs)
5. Information resources
❖Skills and abilities to start a new business venture, expand it and manage it successfully
❖Combination of the other 5 resources and taking on RISK in providing goods & services
Need for management
Inputs Outputs
Transformation
(Resources) (Performance)
• Human • Physical • Achievement
• Financial Transformation of goals
• Physical Process
• Products
• Information
• Services
• Entrepreneurship • Management
• Productivity
Process
• Job creation
• Profit
EFFICIENT EFFECTIVE
Using resources Making the right
wisely in a cost- vs decisions &
effective successfully
manner. implementing them.
Inputs Outputs
Transformation
(Resources) (Performance)
• Human • Physical • Achievement of
• Financial Transformation goals
• Physical Process
• Products
• Information • Services
• Entrepreneurship • Management
• Productivity
Process
• Job creation
• Profit
Coordination
A functional unit is created to achieve business
objectives.
Decision-making
Possible solutions are considered to choose the best
solution.
Six (6) additional management functions
Communication
The transfer of messages between the business and its
external and internal environment.
Motivation
When the owner and the manager persuade the
employees to voluntarily do their work very well.
Six (6) additional management functions
Delegation
The tasks are allocated to employees.
Discipline
Conduct that helps to ensure the successful operation of
the business.
Management skills
7. Time management skills Prioritize work to work efficiently and effectively and delegate
responsibility.
Managerial levels
Top
Middle
First-Line
Managerial levels in UFS
Rector
Prof. Francis TOP
Petersen
7. Human Resource
Business 3. Financial
Management Functions Management
6. Marketing 4. Purchasing
Management Management
5. Administrative
Management
8 Business Functions
• All the activities that are necessary to the very important task
General of management on all levels throughout the entire business.
management
Financial
• The management of the business’s financial activities.
management
8 Business Functions
❖ Levels of management
Conceptual
Interpersonal
Communication
Time management
Technical Diagnostic
THE END
OF
CHAPTER 1