CHAPTER FOUR
BASIC OF BUSINESS MANAGEMENT PREPARED BY :
GatheredSULAIMAN by : Farha Mohd Fadzli RAJA MAHANI BT RAJA 0199031453 farha@polisas.edu.my COMMERCE DEPARTMENT www.polisasjkm.blogspot.com POLISAS KUANTAN
PB201 ENTREPRENEURSHIP G N I N AR E L E RS E U M O O C OUTC
1
Explain clearly the concepts of entrepreneurship, business ownership and procedures in setting up a business in case study given
2
Work cooperatively in group to complete an assign project based on entrepreneurial skills
3
Present creatively a business plan prepared via group based on business knowledge
Learning outcomes 4.1 understand management 4.1.1define management 4.1.2 explain the management functions -planning , organizing , leading , controlling 4.2 know organizational structure 4.2.1 determine organizational structure
Every organization needs to establish several goals and objectives in order to continue competing and existing in the industry.
Management activities can assist organizations achieve these goals and objectives.
Good management practices are the key in determining the success or failure of an organization.
Management practices are the machines that move an organization.
Management is the process involves several work activities and functions that must be followed and completed by managers in order to achieve organization goals. Management as a career refers to the position or rank of individuals holding the designation of managers in the various levels of management along their career progression. CERTO (1997) “Management is defined as a process to accomplish organizational goals by working with humans and other organizational resources.”
Managers must plan to set the right direction of organizations. Planning involves setting appropriate and clear goals (framework > strategies are formulated) and objectives, establishing appropriate strategies to accomplish them. Good planning guides employees’ behaviour and actions towards specific goals.
Strategic planning
◦setting long term goals and objectives ◦Period : 5 years or more
◦Select suitable actions and to allocate organizational resources in order to achieve organizational goals. Tactical planning
◦States the roles and functions of each department in achieving the strategic plan. ◦Period : 1 – 5 years ◦Established and implemented by middle level managers.
Operational planning ◦Short term planning ◦Period : 1 year or less ◦Lists the specific objectives that must be achieved by the relevant parties involved.
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Process of arranging and coordinating organizational resources. (particularly human resources)
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Determines the tasks to be done, how the tasks are to be grouped.
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Allows cooperation between organizational members and motivates members to work together to achieve organizational goals.
Process of motivating subordinates and inspiring others towards achieving organizational goals.
Good leaders lead, guide and inspire people.
To get others to do their best in fulfilling plans and achieving objectives.
Eg.
CEO of the Year Award to recognizes outstanding CEOs
who lead their organizations to higher performance.
Final link in the chain of management functions. Managers evaluate and monitor individuals, groups, departments and their respective organizations as a whole. Effective control systems allow managers to know how well plans are being implemented. If standard is not met, necessary corrective actions or changes need to be carried out.
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Work activities are grouped according to functions For small organizations that have a limited number of products or service Eg. Finance unit, human resources, marketing and production
- Work activities are grouped according to targeted product or market - Managers specialize in one product area and become expert in this area - Be able to focus on one product, it is easier for the unit to understand their customers’ need better
- Units are divided according to location or geographical area. - Suitable when a company has operations or offices in different countries, Regions or states.
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Grouped according to customer type. According to their market segment – higher education, schools, open market To fulfill the needs and demand of their unique customers.
- Employees are hired into a functional department. - A matrix structure is two dimensional reporting structure simultaneously groups people and resources by both function and project. - Allow team members to share members to share information more readily across task boundaries