5. Introduction to Management
Learning Outcomes from This Chapter
- Define management
- Differentiate between enterprise and management
- Explain the contribution of both managers and entrepreneurs to business
- List the characteristics of managers
- Identify the importance of management skills in areas such as home, school, local community, government departments and business start-up
Definition of Management
The process of organising resources in order to achieve objectives efficiently and effectively
Difference between Management and Enterprise
| Difference | Manager | Entrepreneur |
|---|---|---|
| Level of risk | Possibly loses their job if they underperform or if the business fails | Bears the financial and personal risk of the business failing |
| Future focus | Focuses on the day-to-day operations of the business, directing and delegating to their staff | Focuses on starting and expanding the business in the future |
| Level of reward | Paid a set salary, with bonuses or profit-sharing options for good performance | Rewarded by keeping all the profit made by the business |
| Idea creation | Implements the entrepreneur’s ideas or manages people (intrapreneurs) who develop more ideas; does not have to create ideas | The creator and innovator – sees a gap in the market, which they can exploit; may continue to create new ideas as they look to expand |
Characteristics of Managers
| Characteristics | Explanation |
|---|---|
| Use initiative | Proactive |
| Decisive | Acts quickly and decisively |
| Charismatic | Inspiring, passionate |
| Flexible | Adaptable; able to change course if necessary |
| Problem-solver | Analyses problems; makes them manageable |
Introduction to Management Skills
| Skills | Explanation |
|---|---|
| Leading | Directing/delegating: guide employees to achieve tasks |
| Motivating | Energising/inspiring people: Maslow’s Hierarchy of Needs, McGregor’s Theory X, McGregor’s Theory Y |
| Communicating | Transferring info from manager to subordinate and vice versa: improves instruction, clears orders, removes barriers (noise, jargon, cost), considers factors (urgency, cost) |