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Chapter 11 – Managing a Business Unit 2 – Business Organization.

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Presentation on theme: "Chapter 11 – Managing a Business Unit 2 – Business Organization."— Presentation transcript:

1 Chapter 11 – Managing a Business Unit 2 – Business Organization

2 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

3 What do managers do? Plan Organize Coordinate Command Control

4 What do managers do? Planning Future of the organization E.g. Setting aims or targets

5 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

6 What do managers do? “we should plan to increase sales of our fruit juice range by 50% in three years” Aims or Targets

7 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

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 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

13 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

14 Aircraft Design First Class Business Class Premium Economy Economy

15 What do managers do? Commanding Guiding Instructing Leading Supervising Keep to Targets & Deadlines

16 What do managers do? Controlling Measure & Evaluate Individuals & Groups Remain on Target Failing Identify reasons for poor performance Corrective plans

17 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

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 Intelligence Understand difficult ideas Dealing with different issues Initiative Solutions to problems Take control of situations Qualities

20 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

21 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

22 What makes a good manager? Styles of Leadership Qualities

23 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

24 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

25 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

26 Management Decision Making Should we open the new factory in the north or south of the country? & Risk-Taking

27 Management Decision Making What price should we charge for the new product range? & Risk-Taking

28 Management Decision Making Do we buy new machinery even though this will involve some job losses? & Risk-Taking

29 Management Decision Making Do we promote an internal applicant or recruit from outside the business? & Risk-Taking

30 Management Decision Making How much should we spend on developing new products? & Risk-Taking

31 Management Decision Making How do we finance the take-over of this business? & Risk-Taking

32 Management Decision Making How can we measure the performance of the sales division? & Risk-Taking

33 Decisions Making Sole Trader Entrepreneurs / Risk Takers Public Limited Company Shareholders capital risk Risks Accepted

34 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

35 Case Study – Page 159 Jonas

36 Case Study – Page 159 Paul

37 Management Responsibilities in Departments Forecasting Staff Needs Recruiting Staff Prepare Job Descriptions Job Specifications Staff Training Programs Preparing Implementing Interviewing & Selecting Staff

38 Management Responsibilities in Departments Negotiations Workers representatives Union leaders Staff Record Keeping Disciplining & Warning Staff

39 Management Responsibilities in Departments Wrong staff employed Efforts not made to keep staff Right staff employed Efforts made to keep staff Staff Turnover

40 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

41 Management Responsibilities in Departments Recording Financial Transactions Firms & individuals Collect Data Regular Accounts Format Budgeting Analyze profitability of new investment projects

42 Management Responsibilities in Departments Decision-making Method of finance Control Cash-flow

43 Management Responsibilities in Departments Ordering Stock Materials, Resources Develop & Design new products Building Location Cost-effective area Production Methods & Machinery Financial Dept Involved

44 Management Responsibilities in Departments Control Production Ensure High Levels of Efficiency Maintaining the Efficiency Machinery Quality Control

45 Management Responsibilities in Departments Clerical & Office Support Services Responsibility for the Information Technology System Cleaning Maintenance Security

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.


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