Management and Entrepreneurship levels and Management Tasks

Hierarchical Business Management Levels

• Hierarchical systems arrange employees according to varying levels of authority and responsibility.

• Top management is responsible for strategic decisions, planning for the business's future, and integrating demands of different interest groups.

• Lower management manages daily operations within the parameters of business policies and procedures.

• All levels of management perform the same basic tasks: planning, organizing, leading, and controlling (POLC).

• Tasks may vary according to the level of seniority of the manager.

Management Tasks: Planning

Planning Overview

• Planning is the first function of management, combining creative and logical thinking to improve future performance.

• It involves deciding what, how, when, and who should be doing it.

Principles of Effective Planning

• Planning is a rational process aimed at the future, identifying and bridging the gap between the current status and future plans.

• Decision makers debate, discuss, and formulate the business’ vision, mission, objectives, policies, and procedures.

• Management must plan where and how to obtain the resources needed to achieve the objectives.

Flatness in Plans

• Plans must be flexible, allowing the business to adapt to internal or external pressures.

• Flexibility is limited to the resources the business has at its disposal.

• Planning takes place at all levels in the business, with clear communication of the long-term direction of the business and guidance for lower levels.

Importance of Planning

• Planning ensures focus on business objectives, minimizes risks and uncertainty, prepares for changes in both external and internal environments, integrates different business functions, and facilitates control.

Steps in the Planning Process

• Establishing objectives: Top management sets the overall direction for the business, with the vision, mission, and long-term objectives developed.

• Deciding on the planning period: Some plans aim at achieving long-term objectives, while others may have a shorter time period.

• Considering alternatives: The business identifies several alternative plans to evaluate which objectives are achievable.

• Implementing the plan: Once the most suitable alternatives are selected, the business decides on the implementation of the plan and allocates necessary resources.

• Controlling process: The business must put in place the necessary controlling mechanisms to ensure the objectives are achieved.

Management Tasks: Organising

Management Tasks:

• Organizing involves identifying activities to achieve business goals.
• It involves arranging resources to meet goals and objectives.
• It involves organizing jobs within specific functions or departments.

Steps in organizing:

1. Considering objectives: Ensure everyone understands the objectives and why they are important.
2. Identifying and grouping activities: Identify activities to avoid duplication and resource wastage.
3. Assigning of duties: Clearly define and describe tasks to ensure the workforce understands expectations.
4. Delegating authority: Delegate necessary responsibility and authority to subordinates to ensure activities align with objectives.

Advantages of Proper Organization:

• Facilitates communication between different levels of management, departments, and teams.
• Identifies key internal stakeholders for responsibility and authority allocation.
• Creates balance in the business by grouping activities of similar importance.
• Stimulates creative thinking and encourages growth.
• Assists in putting necessary structures in place to encourage growth.

Leading or Activating Staff Members:

• Leadership encourages the workforce to perform accordingly.
• The manager provides direction to subordinates to implement plans and organize resources.

Principles of Leading:

• Understanding the needs, motives, and attitudes of the workforce.
• Clear communication: Ensure all employees understand the plan, policies, and procedures.
• Unity of Direction: Ensure each employee knows to whom they should report and who will give instructions.
• Personal touch style: Boost employee morale by asking about personal details.
• Adapting to challenges and difficulties: Make necessary adjustments to tasks or employees' skills.

Management Tasks: Leadership

Differences Between Leader and Manager

• A manager is appointed in a specific position within the business, while a leader influences people to do what they need.
• A manager has formal power, while a leader has informal power.

Key Leading information

• A leader is future-oriented, planning for future and long-term business goals.
• A leader is not afraid to make decisions based on the situation.
• A leader guides subordinates to implement plans to meet objectives.
• A leader is the "captain of the ship" and should encourage team improvement.
• A leader encourages, rewards, and disciplines employees, ensuring they are treated fairly and consistently.
• A leader is initiative, not afraid to get their hands dirty to get the job done.

Leadership Styles

• Autocratic leadership:

Formulates all objectives, policies, and procedures without asking for input.

• Democratic leadership:

Encourages joint decision making, boosting the workforce's confidence and performance.

• laissez faire leadership:

Provides employees with necessary information and resources to set and achieve objectives.
• This style is effective if the workforce consists of independent thinkers with high levels of integrity.

Management Tasks: Control

• Control is a management task that checks current performance against predetermined standards to ensure progress towards business objectives.
• Proper planning, organizing, and leadership make control tasks easier.

Steps in the Controlling Process:

• Establishing standards forms part of planning.
• Measuring actual performance involves evaluating activities against required standards.
• Corrective action is taken by implementing necessary plans and resources to rectify deviations.

Components of a Good Control System:

• Control systems should be suitable for the business and the level of employee function.
• A functional control system should be flexible and employee-centered.
• The control system should monitor processes for deviations and identify flaws and errors to prevent future repeats.
• An efficient control system is economical, with the cost not exceeding the benefits gained from the system.