Principles of Management Chapter 4

Study Notes

Importance of Management

Management is an indispensable element in an organisation that directs resources and activities towards achieving goals.
Without effective management, organisations would fail due to lack of direction and waste of resources.

Causes of Business Failure

Bad management/managerial incompetence is one of the main causes of business failure.
Other common causes of business failure include lack of managerial experience, poor business planning, poor cash flow management, and failure to adapt to a changing environment.

Role of Management

Management involves directing an organisation's resources and activities towards achieving predetermined goals.
The purpose of an organisation is to achieve goals that would be difficult or impossible for an individual to achieve alone.
Examples of organisational goals include a squash club trying to reach the top of the league, a hospital trying to make its services more productive, and a business trying to make a profit.

Effective Management in Practice

Woolworths' success can be attributed to its sound management principles, practices, and managers at all levels of the organisation.
Effective management is essential for the performance and success of an organisation, whether large or small, profit-making or non-profit making, private or public.

Description

This quiz assesses your understanding of the general principles involved in the management of different types of business organisations and other institutions. Test your knowledge of management principles and their application in various settings.