Managing a Business

Chapter 11

What do Managers Do?

  • Plan
  • Organize
  • Coordinate
  • Command
  • Make Decisions
  • Take Risks
  • Control
  • Without managers, a business would lack:
    A sense of control and direction
    Coordination between departments, leading to wastage of time, money & effort
    Control of employees
    Organization of resources, leading to low output and sales

What Makes a Good Manager?

  • Intelligence
  • Initiative
  • Self-confidence
  • Assertiveness
  • Determination
  • Communication skills
  • Energy
  • Enthusiasm

Types of Decisions

  • Strategic Decisions: very important decisions which can affect the overall success of the business
  • Tactical Decisions: decisions which are taken more frequently and are less important
  • Operational Decisions: day-to-day decisions which will be taken by a lower level of management

How Managers Reduce Risks While Taking Decisions

  • Establish the objectives of the organization
  • Identify and analyze the problem at hand
  • Collect data on all possible alternative solutions
  • Make the final decision
  • Implement the decision
  • Evaluate and review the decision

Management Responsibilities

Human Resources Department:

  • Forecasting staffing needs
  • Recruiting staff
  • Preparing job descriptions and job specifications
  • Planning and implementing staff training
  • Interviewing and selecting staff
  • Negotiating with union leaders
  • Keeping staff records
  • Disciplining and warning staff
  • Manage people fairly and firmly
  • Aim for low staff turnover
  • Ensure the compliance with all employment laws

Marketing Department:

  • Market research into existing or new market in order to find market opportunities
  • Planning new products
  • Find best marketing-mix
  • Keeping records of sales
  • Key role in keeping in contact with customers

Accounting and Finance Department:

  • Recording all financial transactions
  • Collecting and presenting data
  • Preparing budgets
  • Analyzing the profitability of business decisions
  • Deciding the best method of finance
  • Keeping control of the cash flow

Production Department:

  • Ordering stock material and other resources
  • Developing and designing new products
  • Locating buildings in the most cost-effective areas
  • Deciding on production methods and machinery
  • Controlling production for efficiency
  • Maintaining efficiency of machinery
  • Keeps the quality of the product

Administration Department [Under HR, Supporting Department]:

  • Clerical and office support services
  • Responsibility for the IT system
  • Cleaning, maintenance and security

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