Professional Documents
Culture Documents
5.1- Introduction
- Achieving goals
- Management approach
- Management process
- Management and change
Traditional definition of management: Process of coordinating a businesss resources to
achieve goals
Manager: someone who co-ordinates the businesss limited resources in order to achieve
goals
Aspects of management:
working with/ through others
getting most from limited resources
coping with rapid changing environment
balancing effectiveness and efficiency
achieving realistic goals
Effectiveness: measures degree to which a goal can be achieved
Efficiency: compares resources to achieve goals (costs) to what was achieved (benefits)
5.2 Skills of Management
Skill: ability which comes from the knowledge, practise, talent to do something well
Skill of management includes:
formality with business experience
organisation
risk takers- entrepreneurs
social skills
dedication
communication
confidence
intellect
managers- P.O.L.C: Plan, Lead, Organise, Contribute
5.3 Managers
effective mangers are those who:
I. posses a range of management skills
II. able to use skills in different situations
The two fundamental changes in business structure are:
1. Movement away from tall hierarchical structure (traditional) with multiple layers of
management (flatter)
2. development of self managing work teams
Interpersonal (people) skills
Interpersonal skills: skills needed to work and communicate with others and understand their
needs
A manager who;
lacks empathy
is arrogant/ opinionated
unable to communication/relate
will develop a negative relationship with employees
- employees work more efficiently when manager is absent as reduction of
fear/intimidation/victimisation
5.4- The features of effective management
management- fundamental- ability to make business function
management is the process of;
- coordinating a business resource to achieve goals
- working with others- to achieve goals in changing environment
Stakeholders- groups and individuals who interact with the business and thus have vested
interest in its activity
Businesses are to be enterprising, complied with law, socially gusted and economically
sustained
businesses now are sensitive to a public opinion
all stakeholders have different demands, some are compatible, others are not
Shareholders, society and the physical Environment
Shares are purchased for a short period of time
speculators- not worried about businesss long term strategies. They are motivated by quick
return on investment.
Other shareholders are concerned with long term business goals
Responsibility of business- to act as responsible, corporate citizens. They want to account
long-term impacts on businesses
The triple bottom line refers to the economic,social and environmental performance of a
business
Shareholders versus employees
Employees- share acquisition schemes- opportunity to purchase shares at a reduced price
Training and professional development- offered to employee creating education and a skilled
workforce
Productivity results- rising profit- pleased shareholders
Stakeholder Engagement
Refers to businesses sharing information with and seeking input from stakeholders, and
involving them in decision making