HSC BUSINESS STUDIES TOPIC 1
BUSINESS MANAGEMENT & CHANGE
1. The Nature Of Management
Managers need a range of skills to be effective in managing all the resources of a business.
Management – the coordination of resources, including human, physical, information and financial resources, to ensure efficient and effective completion of tasks to meet the business’ goals. It is about getting things done with and through people using the four basic functions.
The functions that need to be performed and adjusted as necessary by management are:
➢ Planning – establish strategic, tactical and operational plans by allocating resources in a way that works towards the goals of a business
➢ Organising – implementing the plans through establishing procedures to make the plans a reality
➢ Leading – motivating employees to achieve the goals of the business
➢ Controlling – monitoring and evaluating performance and adjusting plans and procedures where necessary
Managers are held accountable for their actions and therefore aim to be both effective and efficient:
o Effectiveness – the degree to which a goal has been achieved by making the right decisions at the right time.
o Efficiency – looks at the amount of resources needed to achieve a goal. It is often the result of effective management by maximising output with minimal inputs (productivity).
An effective manager will be proactive and can use a limited amount of resources in a changing environment by making the right decisions at the right time. This is more essential today given the increased competitiveness in international markets. Effective management is more likely to impact on the success of a business than external factors.
• Management Roles
Managers have a number of roles that can be grouped together as:
➢ Interpersonal – duties that involve dealing with people and the relationships between people. It is about communicating, leading and...