Chapter 3: Management And Entrepreneurship

Front 1

What is the definition of management?

Back 1

When we think of management we may think of it as directing a business, using resources to achieve the goals of the business and ensuring that the business is sustainable.

Front 2

What are the levels of management?

Back 2

1. Top management

2. Middle management

3. Lower management

Front 3

Top Management:

Back 3

It’s responsible for the strategic decisions of the business and looks at different demands of different groups and still being responsible for the overall business results.

Front 4

Middle Management:

Back 4

It’s responsible for tactical decisions in the business and interprets top management’s decisions in terms of the demands and impact on each business function.

Front 5

Lower Management:

Back 5

It’s responsible for the day to day decisions in the business.

Front 6

Management Tasks:

Back 6

1. Vision/Plan

2. Plan

3. Organise

4. Lead

5. Control

Front 7

Planning:

Back 7

Is a combination of creative thinking and logical thinking used to improve the future performance of the business.

Front 8

Planning is about deciding upfront:

Back 8

1. What should be done?

2. Who should do it?

3. How should it be done?

4. When it should be done?

Front 9

Principles of effective planning:

Back 9

Management has to plan where and how to obtain the resources needed to achieve the objectives and during the planning phase, decision makers will debate, discuss and formulate the businesses vision, mission, objectives, policies and procedures.

Front 10

An effective planning process will follow a funnel approach:

Back 10

Management has to acknowledge that the business is one role player within the macro and market environment, this means the business may be influenced by various factors such as politics, competitors, suppliers and the economy.

Front 11

Plans have to be flexible:

Back 11

Flexibility means that the business needs to adapt to internal and external pressures and business had to remember that it will be limited to resources that the business has at its disposal.

Front 12

Planning takes place at all level in the business.

Back 12

Top level management should communicate the long term direction of the business to ensure and understanding and buy in from lower levels of managements.

Each manager should receive guidance from their supervisor in planning to ensure plans are realistic and will be held accountable for plans and the implementation thereof.

Front 13

Importance of planning:

Back 13

Planning ensures attention is focused on the guess.

Well thought plans will minimise risks on the business.

And facilitates control.

Front 14

Steps in the planning process:

Back 14

1. Establishing objectives

2. Deciding the planning period

3. Considering alternatives

4. Implementing the plan

5. Control process

Front 15

Establishing objectives:

Back 15

Top management sets overall direction for the business, in doing so the vision, mission and long term objectives will be developed, keeping external and internal resources in mind.

Once objectives have been defined it’s important that management communicates these objectives to the different functional managers.

Front 16

Deciding on the planning period:

Back 16

Some plans will be aimed at achieving long term objectives, while others may have a short time period. The business will plan for a period that is reasonably anticipated.

Front 17

Establishing objectives:

Back 17

Top management sets overall direction for the business, in doing so the vision, mission and long term objectives will be developed, keeping external and internal resources in mind.

Once objectives have been defined it’s important that management communicates these objectives to the different functional managers.

Front 18

Deciding on the planning period:

Back 18

Some plans will be aimed at achieving long term objectives, while others may have a short time period. The business will plan for a period that is reasonably anticipated.

Front 19

Considering alternatives:

Back 19

Business identifies alternative plans to evaluate white objectives are achievable and will assess each alternative but it must also have a plan B in case original plans doesn’t yield the desired results.

Front 20

Implementing the plan:

Back 20

Once alternatives have been selected, the business will decide on the implementation of the plan and will need to allocate the necessary resources to support the plan.

Front 21

Controlling process:

Back 21

Business will need to put the necessary controlling mechanisms in place to ensure that the objectives are achieved.