Presentation on theme: "Chapter 11 – Managing a Business"— Presentation transcript:
1 Chapter 11 – Managing a Business Unit 2 – Business Organization
2 Why management is necessary in any business You will learnWhat managers doWhy management is necessary in any businessWhat is meant by risk-takingRole of entrepreneursManager’s approach on decision-makingManager responsibilities of main functional areas
3 What do managers do?PlanOrganizeCoordinateCommandControl
4 Planning Future of the organization E.g. Setting aims or targets What do managers do?PlanningFuture of the organizationE.g.Setting aims or targets
5 What do managers do?Aims or Targets“the school will aim to increase its student numbers in the primary school to over 200 in two years time”
6 What do managers do?Aims or Targets“we should plan to increase sales of our fruit juice range by 50% in three years”
7 Planning Organization Resource Planning What do managers do? Future of the organizationE.g.Setting aims or targetsOrganizationSense of directionCommon feelingWork towardsResource Planning
8 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”
9 What do managers do?Strategy “we need to build a new state-of-the-art facilities to cater for the increase in student numbers”
10 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”
11 What do managers do?Strategy “increased advertising expenditure will be needed to increase sales”
12 Organizing Organizational Chart What do managers do? People Resources Chief Executive (Bill Murray)Marketing DirectorStore ManagerAssistant Store managersShop WorkersPurchase ManagerFinancial DirectorBook-keepingHuman Resource DirectorAdministration AssistantOrganizingPeopleDelegationResourcesAvailabilityOrganizationalChartAuthoritySpecialization
13 Co-ordinating Good Manager What do managers do? “working together” “bring people in the organization together”Good ManagerDepartments achieve plans set by managementRegular meetingsProject Teams
15 Keep to Targets & Deadlines What do managers do?CommandingGuidingInstructingLeadingSupervisingKeep to Targets & Deadlines
16 Controlling Failing What do managers do? Measure & Evaluate Individuals & GroupsRemain on TargetFailingIdentify reasons for poor performanceCorrective plans
17 Organizations need clear and effective management Managers What managers do?Organizations need clear and effective managementManagersGive a sense of control and directionCo-ordinate departmentsReduce wastage of effortControl the employeesHigh output & sales
18 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”
19 What makes a good manager? QualitiesIntelligenceUnderstand difficult ideasDealing with different issuesInitiativeSolutions to problemsTake control of situations
20 What makes a good manager? QualitiesAssertiveness & DeterminationTake command of othersPush through ideas & policiesSee things to their conclusionCommunication SkillsClear ideas and messages to subordinatesEncourage positive responses
21 What makes a good manager? QualitiesEnergy & EnthusiasmSet high standards of effort & involvementEncourage others to act in similar ways“be a role model”
22 What makes a good manager? QualitiesStyles of Leadership
23 Types of Decision Making Strategic DecisionsImportantOverall success of businessNot that frequentFuture plans of businessLong-term investmentsTakeovers, expansionChange of Status
24 Types of Decision Making Tactical DecisionLess importantMore frequentMiddle-managementWays to train new staffMethods of advertisingTypes of machines to purchase
25 Types of Decision Making Operational DecisionsDay-to-DayRepetitiveBased on previous experienceLower Level ManagementStaffing levelsStock levelsMethods of delivery of goods
26 Management & Risk-Taking Decision Making Should we open the new factory in the north or south of the country?
27 Management & Risk-Taking Decision Making What price should we charge for the new product range?
28 Management & Risk-Taking Decision Making Do we buy new machinery even though this will involve some job losses?
29 Management & Risk-Taking Decision Making Do we promote an internal applicant or recruit from outside the business?
30 Management & Risk-Taking Decision Making How much should we spend on developing new products?
31 Management & Risk-Taking Decision Making How do we finance the take-over of this business?
32 Management & Risk-Taking Decision Making How can we measure the performance of the sales division?
33 Decisions Making Risks Accepted Sole Trader Entrepreneurs / Risk TakersPublic Limited CompanyShareholders capital risk
34 Reducing Risk in Decision-Making Decision-Making Process Establish the Objectives of the OrganizationIdentify & Analyze the Problem to be SolvedCollect Data on all possible Alternatives SolutionsImplementing the DecisionReview & Evaluation of the Decision
41 Management Responsibilities in Departments AccountigFinanceandRecording Financial TransactionsFirms & individualsCollect DataRegular Accounts FormatBudgetingAnalyzeprofitability of new investment projects
42 Management Responsibilities in Departments AccountigFinanceandDecision-makingMethod of financeControl Cash-flow
43 Management Responsibilities in Departments ProductionOperationsandOrdering StockMaterials, ResourcesDevelop & Design new productsBuilding LocationCost-effective areaProduction Methods& MachineryFinancial DeptInvolved
44 Management Responsibilities in Departments ProductionOperationsandControl ProductionEnsure High Levels of EfficiencyMaintaining the Efficiency MachineryQuality Control
45 Management Responsibilities in Departments AdministrationClerical & Office Support ServicesResponsibility for the Information Technology SystemCleaningMaintenanceSecurity
46 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.