BUSINESS MANAGEMENT

BY
EUPHRASIA NG’ANDWE –MUKWASA (MRS)
MBA, BALIS, CERPT, CERTBP
 BRIEF COURSE CONTENTS

 Management Functions- Planning, Leading, Organising, Controlling,.

Organisational structure
Human Resource Management
Change
Competition
 competing in a Global Marketplace
Production and Operations Mnagement
Policy and Strategy Formulation
Marketing
Business Plan
 Management defined

• Peter F. Drucker defines, "management is an organ; organs can be described and

defined only through their functions".
• According to Terry, "Management is not people; it is an activity like walking, reading,
swimming or running. People who perform Management can be designated as members,
members of Management or executive leaders.
• Ralph C. Davis has defined Management as, "Management is the function of executive
leadership anywhere.“
• Therefore, various definitions of management do not run contrary to one another.
Management is the sum-total of all those activities that (i) determine objectives, plans,
policies and programmes; (ii) secure men, material, machinery cheaply (iii) put all
these resources into operations through sound organization (iv) direct and motivate the
men at work, (v) supervises and control their performance and (iv) provide maximum
prosperity and happiness for both employer and employees and public at large.
 Management Functions

• Management is a general term, which covers all the situations where people working
together interact in an attempt to accomplish goals and objectives.
• There are different types of management positions designed to handle all aspects of
business. The perspective from which you consider management will produce
different interpretations of who and what managers do
• As such, this course will focus on the perspective of management which views
specific functions that managers perform. These functions are often classified as:
•  Planning: set objectives and map the strategy to achieve the objectives;
•  Organizing: secure financial resources and implement the plan;
•  Staffing: recruit the best people possible for the tasks;
•  Directing: create written directives and train individuals
•  Controlling: monitor performance of individuals and the entire project
Management Functions

Planning : Planning is the most fundamental and the most pervasive

of all management functions.
• It is deciding in the present about the future objectives and the
courses of action for their achievement. It thus involves:
• (a) determination of long and short-range objectives;
• (b) development of strategies and courses of actions to be
followed for the achievement of these objectives; and
• (c) formulation of policies, procedures, and rules, etc., for the
implementation of strategies, and plans.
 Management Functions

• Organizing : Organizing involves identification of activities required for the achievement of

enterprise objectives and implementation of plans; grouping of activities into jobs; assignment of
these jobs and activities to departments and individuals; delegation of responsibility and authority
for performance, and provision for vertical and horizontal coordination of activities.
• Organizing thus involves the following sub-functions :
• (a) Identification of activities required for the achievement of objectives and implementation of
plans.
• (b) Grouping the activities so as to create self-contained jobs.
• (c) Assignment of jobs to employees.
• (d) Delegation of authority so as to enable them to perform their jobs and to command the
resources needed for their performance.
• (e) Establishment of a network of coordinating relationships.
• Organizing process results in a structure of the organization
 Management Functions
• Staffing : Staffing is a continuous and vital function of management. After the objectives have
been determined, strategies, policies, programmes, procedures and rules formulated for their
achievement, activities for the implementation of strategies, policies, programmes, etc.
identified and grouped into jobs, the next logical step in the 15 management process is to
procure suitable personnel for manning the jobs
• It comprises several sub functions :
• (a) Manpower planning involving determination of the number and the kind of personnel required.
• (b) Recruitment for attracting adequate number of potential employees to seek jobs in the
enterprise.
• (c) Selection of the most suitable persons for the jobs under consideration.
• (d) Placement, induction and orientation.
• (e) Transfers, promotions, termination and layoff.
• (f) Training and development of employees.
 Management Functions

• Directing: Directing is the function of leading the employees to perform efficiently,

and contribute their optimum to the achievement of organizational objectives.
Jobs assigned to subordinates have to be explained and clarified, they have to be
provided guidance in job performance and they are to be motivated to contribute
their 16 optimum performance with zeal and enthusiasm.
• The function of directing thus involves the following sub-functions :
• (a) Communication
• (b) Motivation
• (c) Leadership
 Management Function
• Coordination : Coordinating is the function of establishing such relationships
among various parts of the organization that they all together pull in the direction
of organizational objectives. It is thus the process of tying together all the
organizational decisions, operations, activities and efforts so as to achieve unity of
action for the accomplishment of organizational objectives.
• Coordination, as a management function, involves the following sub-functions:
• (a) Clear definition of authority-responsibility relationships
• (b) Unity of direction
• (c) Unity of command
• (d) Effective communication
• (e) Effective leadership
 Management Function
• Controlling : Controlling is the function of ensuring that the divisional, departmental,
sectional and individual performances are consistent with the predetermined objectives
and goals. Deviations from objectives and plans have to be identified and investigated,
and correction action taken.
• Thus, controlling involves the following process :
• (a) Measurement of performance against predetermined goals.
• (b) Identification of deviations from these goals.
• (c) Corrective action to rectify deviations.
• It may be pointed out that although management functions have been discussed in a
particular sequence-planning, organizing, staffing, directing, coordinating and controlling
– they are not performed in a sequential order.
• Management is an integral process and it is difficult to put its functions neatly in separate
boxes.
 ORGANISATIONAL STRUCTURE
• The objectives of structure may be summarised as to provide for:
• ■ the economic and efficient performance of the organisation and the level of resource
utilisation; ■ monitoring the activities of the organisation;
• ■ accountability for areas of work undertaken by groups and individual members of the
organisation;
■ co-ordination of different parts of the organisation and different areas of work;
■ flexibility in order to respond to future demands and developments, and to adapt to changing
environmental influences; and
■ the social satisfaction of members working in the organisation.
These objectives provide the criteria for structural effectiveness. Structure, though, is not an end
in itself but a means of improving organisational performance.
For example, as Heller points out: No amount of reorganising and reshuffling will increase the long-
term capability of a business unless you suit the organisation to the people and to a genuinely
shared purpose
 Organisation Structure

• Levels of Organisation: Organisations are layered. The determination of

policy and decision-making, the execution of work, and the exercise of
authority and responsibility are carried out by different people at varying
levels of seniority throughout the organisation structure.
• It is possible to look at organisations in terms of three broad interrelated
levels in the hierarchical structure: the technical level, the managerial level
and the cooperate level. These last two levels are often referred to as
middle management and senior management.
 Organisational structure
• The technical level is concerned with specific operations and discrete tasks, with the
actual job or tasks to be done, and with performance of the technical function. Examples
are: the physical production of goods in a manufacturing firm; administrative processes
giving direct service to the public in government departments; the actual process of
teaching in an educational establishment.
• The technical level interrelates with the managerial level, or organisational level, which is
concerned with the co-ordination and integration of work at the technical level.
• Decisions at the managerial level relate to the resources necessary for performance of the
technical function, and to the beneficiaries of the products or services provided. Decisions
will be concerned with:
• (i) mediating between the organisation and its external environment, such as the users of
the organisation’s products or services, and the procurement of resources; and
• (ii) the ‘administration’ of the internal affairs of the organisation including the control of
the operations of the technical function
 Organisational Structure

• Cooperate level or institutional level, concerned with broad objectives and the
work of the organisation as a whole. Decisions at the community level will be
concerned with the selection of operations, and the development of the
organisation in relation to external agencies and the wider social environment.
• Examples of the community level within organisations are: the board of directors
of joint stock companies; governing bodies of educational establishments which
include external representatives; and trustees of non-profit organisations. Such
bodies provide a mediating link between the managerial organisation and
coordination of work of the technical organisation, and the wider community
interests.
The importance of Hierarchy