Management and Entrepreneurship Chapter 3 PDF

## Management and Entrepreneurship: Chapter 3 ### Management The process of accepting accountability for the innovative application of resources in order to achieve business goals. ### Levels of Management * **Upper Management:** Responsible for the strategic decisions of the business, such as lon...

## Management and Entrepreneurship: Chapter 3 ### Management The process of accepting accountability for the innovative application of resources in order to achieve business goals. ### Levels of Management * **Upper Management:** Responsible for the strategic decisions of the business, such as long-term goals, products, markets, and business organizing. * Examples include CEO, COO, CFO, CTO, and VP of Marketing. * **Middle Management:** Responsible for the tactical decisions of the business, such as interpreting plans and setting actions. * Examples include regional managers and plant managers. * **Lower Management:** Responsible for the day-to-day decisions of the business, such as implementing plans and working on the floor. * Examples include team leaders, assistant managers, foremen, and shift managers. Management on all levels in the business performs the same basic tasks. The degree to which it is performed by each level varies according to the seniority of the manager. ### POLC: Management Tasks * **Vision, Mission** * **Planning** * Creates vision and mission * Sets goals * Formulates strategies * **Organizing** * Designs organizational structures * Fosters organizational culture * **Leading** * Provides leadership * Makes decisions * Communicates * Works in teams * Motivates people * **Controlling** * Manages human resources * Measures performance ### Planning The first function of management where a combination of creative and logical thinking is used to improve the future performance of the business. #### Principles of Effective Planning * Planning is a rational process aimed at your future. * The future is anticipated in order to identify and bridge the gap between the current status of the business. * Decision makers will debate, discuss, and formulate the business' vision, mission, objectives, policies, and procedures. * Management has to plan where and how to obtain the resources needed to achieve the objectives. ### Organizing Identifying activities that should be undertaken in order to ensure the business' objectives are achieved. #### Steps Involved in Organizing 1. Considering Objectives 2. Identifying and grouping activities 3. Assigning of duties 4. Delegating authorities #### Advantages of proper organization: * Encourages growth * Stimulates creativity * Authority and responsibility * Creates project balance ### Leading Leadership is what encourages the workforce to perform accordingly. #### Principles of Leading * Harmony of objectives * Effective communication * Unity of direction * Direct supervision * Follow up #### Sound Leadership * Planner - able to make decisions and guide people * Encourages others * Takes initiative * Mediator and arbitrator ### Leadership | Management Styles * **Autocratic Leadership (Direct):** Only one leader. * **Democratic Leadership (Participative):** * **Laissez Faire Leadership (Free-rein):** Not micro-managing ### Control Checking the current performance against the predetermined standards that were set in the planning phase to ensure there is progress. #### Steps in the Controlling Process * Establish standards * Measure actual performance * Corrective action #### Components of a good control system: * Suitable * Flexible * Motivates staff * Aimed at the future * Economical ### Communication The process of exchanging information, opinion, views, and ideas between staff members and management. ### Coordination Vital for any business to exceed, as management deals with a variety of different perceptions, opinions, interests, and opinions of internal and external stakeholders. #### Principles of Coordination * Clear Objectives * Liaison between departments * Chain of command * Comprehensive policies * Induction ### Delegation The allocation of responsibility and authority to subordinates. ### Discipline Improves the future behavior of the employees. * Guided by the Labour Relations Act ### Decision-making Making decisions about the most appropriate course of action. ### Motivation "Pushing" employees to perform according to certain expectations. * Ability + willingness = Performance ### Motivational Theories * **Maslow's Hierarchy of Needs** * Self-actualisation * Esteem needs * Social needs * Security needs * Physiological needs * **Adam's Equity Theory** * **Balance or Imbalance of Rewards** * **Inequitable rewards** * **Equitable rewards** * More than equitable rewards ### Entrepreneurship #### Entrepreneurial Characteristics * Initiative * Planner * Persistence * Concern for quality * Risk taker * Self-confidence * Assertiveness * Experience * Information gatherer * Problem solver * Credibility #### Differences between a manager and an entrepreneur #### Activities of an entrepreneur * **Idea generation** * **Activities of an entrepreneur** * Project Implementation * Market Research * Raising of Funds * **Procurement** * **Recruitment** #### Intrapreneur An employee in a large company who creates new ideas and converts them into ideas. #### Ultropreneur Identifies a viable business opportunity and then establishes a business. Procures a management team of people to develop, produce, and market the idea.