Chapter 11 – Managing a Business Unit 2 – Business Organization.
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Transcript of Chapter 11 – Managing a Business Unit 2 – Business Organization.
Chapter 11 – Managing a Business
Unit 2 – Business Organization
You will learn ......................
• What managers do• Why management is necessary in any
business• What is meant by risk-taking • Role of entrepreneurs• Manager’s approach on decision-making• Manager responsibilities of main functional
areas
What do managers do?
• Plan• Organize• Coordinate• Command • Control
What do managers do?
• Planning• Future of the
organization• E.g.
• Setting aims or targets
What do managers do?
“the school will aim to increase its student numbers in the primary school to over 200 in two years time”
Aims or Targets
What do managers do?
“we should plan to increase sales of our fruit juice range by 50% in three years”
Aims or Targets
What do managers do?
• Planning• Future of the
organization• E.g.
• Setting aims or targets
• Organization• Sense of direction• Common feeling• Work towards
• Resource Planning
What do managers do?
Aim/Target
“the school will aim to increase its student numbers in the primary school to over 200 in two years time”
Strategy
“we need to build a new state-of-the-art facility to cater for the increase in student numbers”
What do managers do?
Strategy
“we need to build a new state-of-the-art facilities to cater for the increase in student numbers”
What do managers do?
Aim/Target
“we should plan to increase sales of our fruit juice range by 50% in three years”
Strategy
“increased advertising expenditure will be needed to increase sales”
What do managers do?
Strategy
“increased advertising expenditure will be needed to increase sales”
What do managers do?
• Organizing• People
• Delegation
• Resources• Availability
• Organizational
Chart• Authority• Specialization
Chief Executive (Bill
Murray)
Marketing Director
Store Manager
Assistant Store
managers
Shop Workers
Purchase Manager
Financial Director
Book-keeping
Human Resource Director
Administration Assistant
What do managers do?
• Co-ordinating• “working together”• “bring people in the
organization together”
• Good Manager• Departments achieve
plans set by management
• Regular meetings• Project Teams
Aircraft Design
First Class
Business Class
Premium Economy
Economy
What do managers do?
• Commanding• Guiding• Instructing• Leading• Supervising
• Keep to Targets & Deadlines
What do managers do?
• Controlling• Measure & Evaluate• Individuals & Groups• Remain on Target
• Failing • Identify reasons for
poor performance• Corrective plans
What managers do?
• Organizations need clear and effective management• Managers
• Give a sense of control and direction• Co-ordinate departments
• Reduce wastage of effort• Control the employees
• High output & sales
What makes a good manager?
• Can anyone be a good manager?• Are the qualities of leadership limited to a few people?• Why are some managers more successful than
others?
• Is it that• “good managers are born”• “good managers are made by training”
What makes a good manager?
• Intelligence• Understand difficult ideas• Dealing with different issues
• Initiative• Solutions to problems• Take control of situations
Qualities
What makes a good manager?
• Assertiveness & Determination• Take command of others• Push through ideas & policies• See things to their conclusion
• Communication Skills• Clear ideas and messages to
subordinates• Encourage positive responses
Qualities
What makes a good manager?
• Energy & Enthusiasm• Set high standards of effort
& involvement• Encourage others to act in
similar ways• “be a role model”
Qualities
What makes a good manager?
Styles of
Leadership
Qualities
Types of Decision Making
• Strategic Decisions• Important• Overall success of
business• Not that frequent
• Future plans of business
• Long-term investments• Takeovers, expansion
• Change of Status
Types of Decision Making
• Tactical Decision• Less important• More frequent• Middle-management
• Ways to train new staff• Methods of advertising• Types of machines to
purchase
Types of Decision Making
• Operational Decisions• Day-to-Day• Repetitive • Based on previous
experience• Lower Level
Management
• Staffing levels• Stock levels• Methods of delivery of
goods
Management
• Decision Making• Should we open the
new factory in the north or south of the country?
& Risk-Taking
Management
• Decision Making• What price should we
charge for the new product range?
& Risk-Taking
Management
• Decision Making• Do we buy new
machinery even though this will involve some job losses?
& Risk-Taking
Management
• Decision Making• Do we promote an
internal applicant or recruit from outside the business?
& Risk-Taking
Management
• Decision Making• How much should we
spend on developing new products?
& Risk-Taking
Management
• Decision Making• How do we finance the
take-over of this business?
& Risk-Taking
Management
• Decision Making• How can we measure
the performance of the sales division?
& Risk-Taking
Decisions Making
• Sole Trader
• Entrepreneurs / Risk Takers
• Public Limited Company
• Shareholders capital risk
Risks Accepted
Reducing Risk in
Decision-Making
Process
Decision-Making
Establish the Objectives of the Organization
Identify & Analyze the Problem to be Solved
Collect Data on all possible Alternatives Solutions
Implementing the Decision
Review & Evaluation of the Decision
Case Study – Page 159 Jonas
Case Study – Page 159 Paul
Management Responsibilities in Departments
• Forecasting Staff Needs• Recruiting Staff• Prepare
• Job Descriptions• Job Specifications
• Staff Training Programs• Preparing• Implementing
• Interviewing & Selecting Staff
Human
Resource
Management Responsibilities in Departments
• Negotiations• Workers representatives• Union leaders
• Staff Record Keeping• Disciplining & Warning
Staff
Human
Resource
Management Responsibilities in Departments
Human
Resource
Wrong staff employed
Efforts not made to keep staff
Right staff employed
Efforts made to keep staff
Staff Turnover
Management Responsibilities in Departments
• Research• New & existing markets
• New Product Planning• Research & Development
(R & D)• Production Department
• Marketing Mix• Sale Records
• Extension Strategies, Withdrawal of Products
Marketing
Management Responsibilities in Departments
• Recording Financial Transactions• Firms & individuals
• Collect Data• Regular Accounts Format• Budgeting• Analyze
profitability of new investment projects
Accountig
andFinance
Management Responsibilities in Departments
• Decision-making• Method of finance
• Control Cash-flow
Accountig
andFinance
Management Responsibilities in Departments
• Ordering Stock• Materials, Resources
• Develop & Design new products
• Building Location• Cost-effective area
• Production Methods
& Machinery• Financial Dept
Involved
Production
andOperatio
ns
Management Responsibilities in Departments
• Control Production• Ensure High Levels of
Efficiency• Maintaining the Efficiency
Machinery• Quality Control
Production
andOperatio
ns
Management Responsibilities in Departments
• Clerical & Office Support Services
• Responsibility for the Information Technology System
• Cleaning• Maintenance• Security
Administration
Answer the following……….
• What are the main tasks of managers?• What is involved in decision-making?• What do we mean by “risk-taking”?• How can we reduce risks in the decision-
making process?• Identify and explain the main
responsibilities of managers.