TOPIC 2 BUSINESS MANAGEMENT

Nature of Management

Management Approaches

Management Process

Managing Change

Nature of management

Features of effective management

Skills of management

• interpersonal, communication, strategic thinking, vision, problem-solving, decision-making, flexibility, adaptability to change, reconciling the conflicting interests of stakeholders

Achieving business goals

• profits, market share, growth, share price, social, environmental
• achieving a mix of the above goals
• staff involvement - innovation, motivation, mentoring, training

Management approaches

Classical approach

• management as planning, organising and controlling
• hierarchical organisation structure
• autocratic leadership

Behavioural approach

• management as leading, motivating, communicating
• teams
• participative/democratic leadership style

Contingency approach

• adapting to changing circumstances

Management process

Coordinating key business functions and resources

Operations

• goods and/or services
• the production process
• quality management

Marketing

• identification of the target market
• marketing mix

Finance

• cash flow statement
• income statement
• balance sheet

Human resources

• recruitment
• training
• employment contracts
• separation - voluntary/involuntary

Ethical business behaviour

Management and change

Responding to internal and external influences

Managing change effectively

• identifying the need for change - business information systems
• setting achievable goals
• resistance to change
• management consultants