MANAGING A

BUSINESS

CHAPTER 5
 LEARNING
OUTCOME

5.1 Function of management

5.2 Levels of management
5.3 Skills of management
5.5 Communication in business
 DEFINITION OF MANAGEMENT

“The process of administering and coordinating

resources effectively, efficiently, and in an effort
to achieve the goals of the organization”
(Lewis)
Manager
• “An organizational member who is responsible
for planning, organizing, leading, and
controlling the activities of the organization so
that its goals are achieved” (Lewis)
 WHAT IS
MANAGEMENT

Management is the
activities and process of
pursuing organizational
goals efficiently and
effectively by planning,
organizing, leading and
controlling the
organization’s resources.
 WHAT IS
ORGANIZATION?

An organization is a
systematic arrangement of
people who work together
to achieve a common
purpose.
 ORGANIZATION
PERFORMANCE
Organization performance is always measured by the
accomplishment of organizational goals in an efficient and
effective manner.

EFFICIENCY
Is the degree if how well resources are used to achieve a goal. It
is about doing the thing right.

EFFECTIVENESS
Is the degree to which an organization achieves its goals,
typically in terms of quantity and as well as quality.
 PROCESS OF
MANAGEMENT

PERFORMANCE
RESOURCES Finished goods
People and /or services
Money Achieve
Materials organizational
Technology goals & objectives
Information effectively &
Machines efficiently
Facilities
 MANAGEMENT
FUNCTION
• Planning involves setting
appropriate objectives &
establishing appropriate
strategies to accomplish
them.

• Two important concepts:

1) Select clear objectives
2) Determine the right
strategies
MANAGEMENT
FUNCTION
• Organizing deals with
activities that result in the
formal assignment of tasks &
authority & a coordination of
effort. It determines:
1) the tasks to be done,
2) how the task are to be
grouped,
3) who is in charge &
4) who report to whom.
MANAGEMENT
FUNCTION

• Leading is a process of
motivating subordinates, &
inspiring others, towards
achieving the organizational
goals.
 MANAGEMENT
FUNCTION

• Controlling is the process

to ensure that
performance is as
planned & taking
necessary correction
actions or changes when
needed.
 LEVELS OF
MANAGEMENT

CEO, Dean

Manager,
Head of Dept.

Supervisors,
executives

Operators,
clerk,
technicians
 TYPES OF MANAGER
1. Top managers
• Individuals who are responsible for making decisions about the
direction of the organization and establishing policies that affect all
organizational members
• Key executives in the organization – BOD, CEO, COO
• Tasks:
• They are generally responsible for interpreting organizations’
purpose and developing its mission
• Determine firm’s strategy, define its major policies and formulate
plans for the organization
• Makes important decisions regarding creation of new products
and stock issues
• Evaluate overall function 13and progress of the whole organization
 TYPES OF MANAGER

2. Middle managers
• Individuals at levels of management between the first-line
manager and top management
• Implement strategy, major policies and long range objectives set
by top management
• Develop tactical operational plans and standard operating
procedures
• Coordinate and supervise the activities of lower level managers
• Job title include HR Manager, Marketing Manager , Plant
Manager .
 TYPES OF MANAGER

3. First-line managers
• Supervisors, heads unit that responsible for directing the day-to-
day activities of operative employees
• Directly report to middle managers
• Coordinate and supervise activities or operating employees day to
day
• Solving day-to-day problem
• Setting employees’ direction and discipline
• Job title such as crew leader, line supervisor & head nurse.
 MANAGEMENT
SKILLS
CONCEPTUAL HUMAN TECHNICAL
SKILL SKILL SKILL
• The ability to • Involves • Involves
think human manager’s
analytically, relations or ability to use
develop ideas the manager’s the tools,
& solve ability to procedures,
problems interact & and techniques
creatively. work well of a
with others. specialized
field, and
understanding
manuals
Relative Skills Needed For Effective Performance At
Different Levels Of Management

Top H T C

H C
Middle
T

C
Lower H T

Human Technical Conceptual

H skill T skill C skill
 Level & skill of management
LEVEL OF MANAGEMENT EXAMPLE OF
MANAGER
TOP LEVEL MANAGEMET Chief Executive Officer
Chief Financial Officer
(Responsible for the overall management of the President
company: prepare plan, policy & guiding the
company interaction with its environment)
SKILL
CONCEPTUAL SKILL
(An ability to analyse & diagnose a
complex situation to determine its
causes & effects from internal &
external environment)

MIDDLE LEVEL MANAGEMENT Finance Manager HUMAN SKILL

Human Resource
( Directs the activities of lower level managers, Manager
implement organizational policies & communicate Marketing Manager (An ability to work effectively with
the respond from the lower level managers to top one’s own work group as other s in an
managers organization: leadership & motivation
style)

LOWER / FIRST LINE LEVEL MANAGEMENT Supervisor TECHNICAL SKILL

Technical Supervisor
(direct & supervise the non managerial workers in (An ability to use job specific
the company. Deal with production of the products knowledge of tools , techniques &
&service of the company) procedures which are specific to a
particular field to perform a task)
 DEFINITION OF
COMMUNICATION

Communication – It is a process of exchanging

information by use of words, letters, symbols or
non-verbal behavior or the process of sharing
information with other individuals.
Communication Process
Components
 Communication Process
• Social Context
The setting in which the communication takes place.
• Sender
The sender initiates the communication process by
encoding his or her meaning and sending the message
through a channel.
Encoding
Encoding translates the sender’s ideas into a systematic set
of symbols or a language expressing the communicator’s
purpose.
• Messages
• The tangible forms of coded symbols that
are intended to give a particular meaning
to the information or data.
• Channel
• The carrier of the message or the means
by which the message is sent.
• Receiver
The receiving person or group must make sense
of the information received.
Decoding the translation of received messages
into interpreted meanings.
• Feedback
The process of verifying messages and the
receiver’s attempts to ensure that the message
he or she decoded is what the sender really
meant to convey.
• Noise
Any internal or external interference
or distraction with the intended
message that can cause distortion in
the sending and receiving of
messages.
 PURPOSE OF
COMMUNICATION:
To influence. To persuade others to work hard and do things that support
organization objectives.

To inform. To make sure others have important information for decision

making and job performance.
Provides facts and data to be used for decision making

To control. To provide clear objectives and monitor progress toward

their accomplishment.
Through communication, work can be coordinated and
integrated, tasks and responsibilities are clarified and records
are kept in order

To inspire. To display values, model positive attitudes and build

commitment to organizational culture.
 IMPORTANT OF
COMMUNICATION
Control employees behavior

Motivates employees

Emotional expression

Disseminating the information

No business can be perform without effective

communication.
 Importance of Communication
 Control employees behavior - when employees are required to
communicate any job-related, to follow their job description, or to
comply with company policies, communication is being used to control.

 Motivates employees - by clarifying to employees what to be done, how

they’re doing, and what can be done to improve performance,
communication is required .

 Emotional expression – for many employees, their work group is primary

source of social interaction. Communication takes place within the group
by which members share frustrations and feeling of satisfaction.

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 Cont’d…
 Disseminating the information - It is owing to the process of
communication that we are able to send and receive information.
Communication helps disseminate all kinds of information of our
company to the public.

Communication is the life blood of any business. No business can be

perform without effective communication. Communication can even get
you deals and contracts that you would otherwise had not got.

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