Objectives of This Chapter

provide an overview of the role of management in business To explain the four fundamental management tasks, namely planning, organising, leading and control as a management process To explain the different levels and kinds of management in the business To examine the various schools of thought in management

Types of Organisations

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businesses schools hospitals sports clubs The point of departure of our discussion is general principles involved in the management of a business

The Role Of Management

An organisation consists of people, resources and certain objectives that have to be attained a squash club endeavours to get to the top of the league Pick ‘n Pay endeavours to make a healthy profit UWC endeavours to……

Statistics of business failures     44 percent: Managerial incompetence Explanation: Inability to run the business 17 percent: Lack of managerial experience Little experience managing employees and other resources before going into business .

experience in the product or service before going into business . purchasing. finance. and production 15 percent: Inexperience of the product Explanation: Little. if any.Statistics of business failure     16 percent: Unbalanced experience Explanation: insufficient experience in marketing.

Statistics of business failure      1% due to neglect Explanation: Too little attention given to the business. or marital difficulties 1% due to fraud or disaster 6% Cause of failure : Unknown . poor health.

the resources.Importance of Management    Management is necessary to direct a business towards its objectives a balance must be maintained between the objectives of the business. the personal objectives of the employees. and the interests of the owners Management is also necessary to keep the organisation in equilibrium with its environment (corporate social investment) .

physical and informational resources are employed efficiently and effectively for the attainment of the objectives of an organisation. .Definition Of Management  management may be formally defined as the process whereby human. financial.

The most important elements in the management process     Planning-setting objectives and determining in advance how objectives will be met Organising-delegating and coordinating tasks and resources to achieve objectives Leading-influencing employees to work toward achieving objectives Control-establishing mechanisms to ascertain whether the tasks have been carried out .

and the resources needed for this task. and guidelines or plans on how that position is to be reached . It includes determining the future position of the business.The Functions of Management  Planning determines the mission and goals of the business. including the ways in which the goals are to be attained.

The Functions of Management   Organising-developing a framework or organisational structure to indicate how personnel. equipment and materials are to be employed to attain the predetermined goals Leading entails giving orders to the human resources of the business and motivating them to direct their actions in conformity with the goals and plans .

The Functions of Management  Control means that managers should constantly check whether the business is properly on course toward the accomplishment of its goals .

The four fundamental management tasks Planning Organizing Leading Control .

The different levels/types of management         Top Management Middle Management Lower Management (supervisors) Marketing management Financial management Operational management Purchasing management Human resources management .

Management Levels Top Management President Middle Management Marketing manager Middle Management Middle Management Operations Manager H R Manager Middle Management Finance Manager Lower Management Lower Management Lower Management Lower Management Lower Management Lower Management Advertising Supervisor Sales Supervisor Product A Supervisor Training Supervisor Accounting Supervisor Finance Supervisor .

The Integrated Management Process Planning Organizing Leading Human resources Financial resources Physical resources Information resources Goals Control .

Function of Top Management   responsible for the business as a whole and for determining its mission and goals is concerned mainly with long-term planning .

Function of Middle Management   accountable for executing the policies. plans and strategies determined by top management responsible for medium.and long-term planning .

Function of Lower Management    responsible for smaller segments of the business day-to-day activities and tasks of a particular section. short-term planning and implementing the plans of middle management guide staff in their own subsections and keep close control over their activities .

such as the allocation of tasks to persons so that certain objectives can be attained Motivating and giving orders to marketing staff to perform their duties and thus accomplish the goals of the business .Functional managers    Planning the activities of the marketing department Organising marketing activities.

human resources management. ensuring that marketing objectives are accomplished as planned In the same way financial management. for example.Functional managers   Controlling marketing activities. lead and control their departments . purchasing management and other functional managements plan. organise.

Three key skills are identified as prerequisites for sound management:    Conceptual skills. The ability to work with other people in teams (Bill Gates) Technical skills. The ability to use the knowledge or techniques of a particular discipline to attain ends (spreadsheet software) . The mental capacity to view the business and its parts in a holistic manner Interpersonal skills.

Planning Conceptual and Decision Making Skills Controlling Technical Skills Organising Human and Communication Skills Leading .

The Role of Managers Interpersonal Role Representative figure Leader Relationships Informational role Entrepreneur Troubleshooter Allocator of resources Negotiator Decision-making Role Monitors Analyses Spokesman .

Interpersonal Role    Representative-takes visitors out to dine Leading-training. promotion. customers) . firing and motivation Relationships-internal (staff) and external (suppliers.

Informational Role    Monitor-gathering of information about opportunities and threats Analyze the data and report meaningful information Spokesperson in the business .

equipment breakdowns etc. Allocation of resources in the business Negotiate goals.Decision-making Role     Managers are entrepreneurial-develop new products Solve problems such as strikes. performance standards and trade union agreements .

management science and integrative theory (systems.The most important schools of thought on management   Existing knowledge about management is derived from a combination of ongoing research by practitioners and researchers 4 schools of thought: the classical school. socio-technical and contingency theories) . the human relations school.

W.Classical Theorists    Focus on the job and management functions to determine the best way to manage in all organisations F. Taylor (1856-1915) increase productivity .

Scientific Management       Develop a procedure for each element of a job Promote job specialisation Scientifically select. train and develop workers Plan and schedule work Establish standard methods and times for tasks Wage incentives schemes .

Scientific Management     Frank and Lillian Gilbreth (1868-1972) Time and motion studies Henry Gant (1861-1919) Method for scheduling work over time .

Administrative Theory        Henri Fayol (1841-1925) French engineer 4 major functions of management Max Weber (1864-1920) Bureaucracy Set of rules and procedures to treat workers fairly McDonalds .

Behavioral Theory  The human relations or behaviourist school came into being because of the failure of the scientific and classical schools to make an adequate study of the human element as an important factor in the effective accomplishment of the goals of a business .

patterns of power. motivation.Behavioral Theory    Mayo (1880-1949) Focus changed from the job to people who perform the job Research into social interaction. organisational design and communications .

Payback Period . Break Even Analysis.Management Science      The quantitative school uses maths to aid in problem solving and decision making Military and logistics problems in WW2 Mathematical models used in finance. operations Facilitated by the use of computers DCF. MIS.

Integrative Perspective     the systems approach considers the business as an integrated system consisting of related systems Conceptual skills Decision making in Finance Dept affects other departments Open systems thinking (Govt laws) .

Socio-technical Theory    Focus on integrating people and technology Another approach is Ouchi's Theory Z. which was developed during the early 1980's in an attempt to explain decreasing productivity the method in this approach is to take the best management practices from American and Japanese businesses and integrate them into one .

Contingency Theory      Focus on the best management approach for a given situation Studied the environment and its effects on the organisation and management systems Stable and innovative Stable-mechanistic/bureaucratic approach Innovative-organic/behavioral approach .

they have dramatically increased the need for businesses to be responsive. flexible and capable of competing in a global market . demographic change and trends toward a service society and the information age. global competition. In particular.Management in the new millennium  Businesses today are exposed to a number of revolutionary forces: technological change. Forces like these have changed the playing field on which businesses must compete.

The "new organisation"    The average business will be smaller and employ fewer people the boundaryless business in which employees do not identify with separate departments. but instead interact with whoever they must to get the job done Employees will be called on to make more and more decisions .

not titles. will be the basis of power .The "new organisation"    Flatter organisations will be the norm Work will be organised around teams and processes Competency and knowledge.

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