Principles of Management Module BM1012

Course Expectations

• Students are expected to be prepared for class, including reading materials and completing assignments.
• Students should be ready to discuss and ask questions about course content.
• Students need to focus on the class; cell phones, laptops, and tablets should be used for course-related work only.
• Students should be respectful to classmates and the instructor.
• Punctuality is expected; leaving early requires prior discussion with the instructor.
• If a student misses a class, they are expected to review the missed lecture before the following class.

Module Outline

• Module Name: Principles of Management
• Module Code: BM1012
• Year/Level: 01
• Credit Points: 03
• Pre-requisites: None
• Co-requisites: None
• Methods of Delivery: Lectures (face-to-face), Tutorials, Laboratories
• Course Website: http://courseweb.sliit.lk
• Version No.: 2021-0
• Semester: 01
• Lectures: 2 hours per week
• Tutorials: 1 hour per week
• Laboratories: 0 hours per fortnight

Module Description

• Aim: Expose students to management concepts and theories to understand key management functions (planning, organizing, leading, controlling).
• Learning Outcomes:
  • Identify the nature of a business organization.
  • Demonstrate the nature of management, managers, and their importance to contemporary business organizations.
  • Develop an understanding of managerial functions (planning, organizing, leading, controlling).
  • Apply knowledge in analyzing scenarios and real-world situations.
• Assessment Criteria:
  • One group assignment
  • One individual assignment
  • A comprehensive exam covering lecture materials.

Assessment Details

• Mid-Semester Examination: 50% (covering LO1-LO3)

• Assignments/Laboratories: 50% (covering LO1-LO4)

• End of Semester Examination: 50% (covering LO1-LO4)

• Total: 100%

• Estimated Student Workload:

  • Contact Hours: 28 hours of lectures, 14 hours of tutorials, 0 hours of labs
  • Time Allocated for Assessments: 38 hours
  • Mid-Semester Examination: 0 hours
  • End of Semester Examination: 2 hours

• Reading and Independent Study: 68 hours

• Total: 150 hours

• Module Pass Requirements: 45% or higher (to obtain at least a "C" grade)

• Recommended Texts: Provided in the document.

Learning Outcomes

• At the end of the session, students will be able to:
  • Identify the nature of a Business Organization.
  • Identify the basic economic problem and need for management.
  • Learn the basic functions of management.

What is a Business Organization?

• A group of people working together to satisfy human needs and wants by producing goods and services with a common objective, often profit maximization.

Principal Forms of Business Organizations

• Sole proprietorship
• Partnerships
• Companies (corporations)
• Non-profit organizations

Sole Proprietorships

• Ownership: Owned and operated by a single individual.
• Setup: Simple legal formalities and paperwork.
• Profit Retention: Owner retains all profits.
• Liability: Unlimited personal liability for business debts.
• Taxation: Profits are taxed as the owner's personal income.

Advantages and Disadvantages of Sole Proprietorship

• Advantages: Full control, ease of decision-making, tax benefits, flexibility.
• Disadvantages: Unlimited liability, limited capital, limited expertise, continuity concerns

Partnerships

• Ownership: Two or more individuals share ownership, responsibilities, and profits.
• Types: General partnerships (equal liability) and Limited partnerships (limited liability for some partners).
• Agreement: Detailed roles and responsibilities laid out in a partnership agreement.
• Taxation: Profits are passed through to partners' personal income tax.
• Legal Personality: No legal personality.

General vs. Limited Partnerships

• General Partnerships: Partners contribute capital and expertise and are subject to unlimited liability.
• Limited Partnerships: Partners only contribute capital and have limited liability; they don't manage or control the business.

Advantages and Disadvantages of Partnerships

• Advantages: Shared responsibility, complementary skills, capital access, tax benefits.
• Disadvantages: Unlimited liability (in general partnerships), conflict risks, limited life span, and management issues.

Limited Liability Company (LLC)

• Blend of partnerships and corporations.
• Limited liability for owners/members.
• Flexible management structure.
• Profits pass through to members' personal income.

Types of Limited Companies

• Private Limited Companies
• Public Limited Companies

Private Limited Companies

• Maximum 50 shareholders.
• Shareholders' consent required for share transfer.
• No offers of shares to the general public.

Public Limited Companies

• No limit on the maximum number of shareholders.
• Shares offered to the general public.
• Ability to raise funds through debentures.

Non-profit Making Organizations

• Organizations focusing on specific social causes, serving members, or the public at large.
• Revenue from donations, fundraising, activities, or membership fees, or products/services.
• Aim to support their objective, typically not to generate profit

Goal-Directed Behavior

• Students are asked to list goals of a business organization.

Types of Business Goals

• Financial: Specific financial target.
• Growth: Expand business.
• Employee: Career advancements, work-life balance.
• Process: Improve business procedures.
• Social: Promoting diversity or setting sustainability goals.
• Time-based: Applying a timeline to accomplish a task.