Fundamentals of Entrepreneurship (Group 5) Research Notes PDF

**A312 FUNDAMENTALS OF ENTREPRENEURSHIP** **GROUP 5** ASUNCION, GOLDWIN CORPUZ, HANNAH FERRER, ANGELA MAE GAMA, DIANA GUARDIANA, GLORY ANN MARINAS, ALJAN RAMAS, DIANA ROSS SEBASTIAN, ROBELYN URBINO, MARJORIE **RESEARCH NOTES:** **CHAPTER 5** **MANAGEMENT FUNCTIONS** **LEARNING OBJECTIV...

**A312 FUNDAMENTALS OF ENTREPRENEURSHIP** **GROUP 5** ASUNCION, GOLDWIN CORPUZ, HANNAH FERRER, ANGELA MAE GAMA, DIANA GUARDIANA, GLORY ANN MARINAS, ALJAN RAMAS, DIANA ROSS SEBASTIAN, ROBELYN URBINO, MARJORIE **RESEARCH NOTES:** **CHAPTER 5** **MANAGEMENT FUNCTIONS** **LEARNING OBJECTIVES:** - Describe and explain the basic concepts related to management; - Identify the different level and type of management; and - Recognize various methods of staffing. **TABLE OF CONTENTS** Management..........................................................................................\....1 Planning\...\.................................................................................................2 Types of Plan.........................................................................................\...2 Organizing..............................................................................................\...3 Levels of Management................................................................................4 Steps in Staffing..........................................................................................4 Controlling and Directing...........................................................................\.....7 **INTRODUCTION** **What is MANAGEMENT?** **Management is a process of bringing into use different resources to achieve a desired result.** It is the process of planning, organizing, staffing, directing, and controlling resources to achieve organizational goals. It involves working with people, influencing their behavior, and fostering collaboration to achieve a common objective. \- Planning: Setting goals and objectives, developing strategies and action plans to achieve them. \- Organizing: Structuring resources (people, finances, technology) to support the organization\'s goals. This includes assigning tasks, delegating responsibilities, and creating a clear chain of command. \- Staffing: Recruiting, hiring, training, and developing employees to fulfill the organization\'s needs. \- Directing: Leading and motivating employees to achieve organizational goals. This involves communication, delegation, and providing guidance and support. \- Controlling: Monitoring performance, evaluating progress, and taking corrective action to ensure that the organization stays on track to achieve its goals. So Management is both a science and an art. It requires applying scientific principles and methodologies, but also creativity, intuition, and adaptability to specific situations. Align So here is a Key elements of management: \- People: Management focuses on working with people, understanding their motivations, and fostering teamwork. \- Resources: Management involves effectively utilizing resources, including financial, human, and technological resources. \- Goals: Management is directed towards achieving specific organizational goals, whether they are financial, operational, or social in nature. \- Process: Management is a continuous process that involves planning, organizing, staffing, directing, and controlling. **PLANNING** **Plans are the means by which managers achieve their objectives. Plans cannot be prepared without setting an objective or target. Objectives cannot be set without business scanning or analyzing external and internal environment.** Planning is the foundation of all management. Understanding what planning is, how it works and why it\'s important can help you appreciate the plans you deal with each day. A good understanding of planning can also help you create your own plans and succeed in a management role. Planning is essential for setting objectives and developing strategies to achieve them. It helps in determining the cause of action to be followed. Without planning, organization or a business would struggle to align their activities with their goals. *Example:* If you want to buy a car. So, you have to plan for this project, you want a white or red, blue or a silver car. You are also planning if you want a car that good for mountain or good for normal streets. So, in planning step, you will decide what will be done. IMPORTANCE OF PLANNING: - It clearly outlines what the business expects so employees can focus their efforts on moving towards the goal. - It helps unify teams around a common purpose and program. - It boosts employee motivation by giving them a purpose and a clear set of instructions for success. - It helps businesses use their resources more effectively. **DIFFERENT TYPES OF PLAN** 1. The **short-range plans**, or those that covers one year of operation. It focuses on day to day operations and immediate tasks. This plans are specific, actionable and closely monitored. Short-term planning involves making plans for the immediate future. *Example:* A company might set a weekly sales targets. Planning how to train a new intake of employees is an example of short-term planning. As businesses act on short-term planning quickly, it\'s easy to assess their success. **ORGANIZING** **The resources of the business firm such as raw materials, factory space money people and the firm itself should be organized in such a way as to facilitate their optimum utilization.** **TYPES OF ORGANIZATIONAL CHARTS** 1. **Line Structure** The simplest organizational structure characterized by vertical link between various levels of management. In this organization, authority comes from the top and moves downward. It is also called as military. The direct link facilitates decision. making and prevents **\"finger pointing\"** or **\"buck passing".** **Chart 1.1** 2. **Line and Staff Structure** results when staff are added to the line organization. While those in the line functions are directly involved in the operation of the firm, the staff simply serves as adviser or consultant to them.  **Chart 1.2** **LEVELS OF MANAGEMENT** **1. Senior Management** - This top-tier level includes executives and directors such as the corporation\'s CEO and CFO, who determine the overall strategic direction. They make strategic judgements about policies, objectives, and long-term strategies. A corporation\'s CEO and CFO make decisions about big events, strategic partnerships, and new business projects. **2. Middle Management -** Managers at this level carry out the policies and plans developed by higher management. They are responsible for organising operations, managing resources, and ensuring that departmental objectives are in line with organizational aims. **3. Supervisory Management -** This level is in charge of overseeing day-to-day operations and directly managing frontline staff. Their responsibilities include staffing, directing, and ensuring that activities are accomplished efficiently. a\. **Staffing and Directing** 1. **Screening** **Screening** is the process of eliminating unqualified applicants and trimming down the list of those who qualify. 2. **Preliminary** A preliminary interview may be conducted to select the best candidates for the position and decide who will move to the next step of hiring process. 3. **Testing** - Cognitive Tests: Assess reasoning, memory, perceptual speed, and accuracy. - Physical Ability Tests: Measure the physical ability to perform specific tasks or general strength and stamina. - Personality Tests: These tests evaluate traits that may predict job performance and compatibility with the company culture. They can provide insights into an applicant's behavior, motivation, and interpersonal skills. - Skill Tests: These tests measure specific job-related skills, such as typing speed, software proficiency, or technical knowledge. - Aptitude Tests: These tests assess an applicant's potential to learn and perform tasks. They are often used for entry-level positions or roles that require specific training. 4. **Reference Checking** Reference checking involves contacting former employers, teachers, friends, or even credit companies to gather additional information about an applicant. This step helps verify the applicant's past performance, reliability, and suitability for the position. Key Aspects Of Reference Checking: - Verification of Information: Confirming the accuracy of the information provided by the applicant, such as employment history, job titles, and responsibilities. - Performance Evaluation: Gathering insights into the applicant's work habits, strengths, weaknesses, and overall job performance. - Understanding how the applicant interacted with colleagues, handled stress, and contributed to team dynamics. - Character Assessment: Evaluating the applicant's integrity, reliability, and professional conduct. 5. **Employment Interview** 6. **Physical Usually** **CONTROLLING AND DIRECTING** You must realize that no matter how good your plan is, your organization may not function as you thought it would. To avoid encountering this problem, you must be able to monitor the operation of the company to find out why it isn\'t working the way you planned to. Controlling is knowing what is actually happening and making the necessary corrections in case it doesn\'t meet the predetermined standards or goals. 1. Controlling - It is a function of management that helps to check errors and take corrective actions. This is done to minimize deviation from standards and ensure that the stated goals of the organization are achieved in a desired manner. 2. Importance of Monitoring: - To know what is actually happening and help to identify areas for improvement in order to achieve better results. - Continuous monitoring helps identify issues and apply necessary corrections to align with predetermined standards or goals There are two types of control methods that a manager looks into. One is the behavior control where supervisors direct and monitor employees\' behavior at work. The second type is the output control which tracks production and sales. Control Methods: 1\. Behavior Control: \- Supervisors monitor and direct employees\' actions in the workplace. \- Ensures that employees follow company policies and work efficiently. 2\. Output Control: \- Focuses on tracking the outcomes such as production rates, sales, and other performance metrics. \- Allows management to assess whether goals are being met in terms of deliverables. Good management entails that you should be able to kept track of these areas of organization: 1. ***Facilities*** This is the physical area of the organization. It includes the buildings, equipment or machinery, tools, cars, office furniture, and stocks of goods. The proper use of computers, telephone and maintenance of the equipment should be periodically monitored. 2. ***People Personnel*** evaluation and training is important to assess and improve the productivity of your manpower. Employees\' survey can also help rate their job satisfaction. Personality tests and drug tests can also be used to monitor employees\' behavior. 3. ***Information*** This is data that holds value, meaning, and significance of a business. It allows a company or business to create well-informed economic business decisions. It can be identified as quantitative information or qualitative information. Quantitative information is information expressed in numbers, quantities, or units. Qualitative information is information expressed in words or descriptive forms. 4. ***Finances*** Finances are the procedures, policies, and means by which an organization monitors and controls the direction, allocation, and usage of its financial resources. Financial controls are at the very core of resource management and operational efficiency in any organization. Money matters must be controlled to avoid losses and question on the company\'s credibility in the long run. Liabilities, bills, payrol and suppliers should be paid on time. 5. ***Work Process*** Work Process is a written document of the standard procedures of how to handle or perform a work. The Work Process defines required tools, systems, and resources as well as an organisational role and responsibility. Companies often create company or industry-specific work processes to accomplish tasks 6. ***Organizational Structure*** How you arranged the organization chart should also b periodically assessed to determine whether it still fits current operation or not. An organization that is highly governed by rules and regulations is bureaucratic and may not serve its purpose in the long run and must be rearranged into a decentralized one.