Business Notes: Nature of a Business
Nature of Management
• Coordinating a business’ resources to achieve goals.
• Working with/through others to achieve goals in a changing environment.
Features of effective Management
• Joint efforts of employees are directed towards achieving the business’ goals.
• Major factor influencing success or failure.
Skills of Management
• Ability to do something well.
• Effective managers possess a range of skills and are able to use them in different situations.
1. Interpersonal
• Work and communicate with others and understand their needs.
• Ability to communicate, motivate, lead and inspire.
• Communication – exchange of information between people.
• Communicating business goals and strategies is crucial to success.
• Managers who can communicate will find it easy to influence.
• Miscommunication can lead to serious harm to the business.
• Important for manager to be aware of the power for non-verbal communication e.g. body language.
2. Strategic Thinking
• Thinking about the future direction and goals.
• Allows manager to see the business as a whole and to look at it in a long term perspective.
3. Vision
• Clear, sense of direction, allowing people to attain a common goal.
• Share vision, inspire others, managers will have to display leadership qualities.
• Leadership – ability to influence people to set and achieve specific goals.
4. Problem Solving and Decision Making.
• Problem solving – finding then implementing a course of action to correct an unworkable situation.
• This task involves decision making.
• Decision making – identifying options available and choosing a specific course of action to solve the problem.
5. Flexibility and Adaptability To Change.
• Managers must be:
- Flexible – able to be persuaded of influenced.
- Adaptable – able to change according to circumstances.
- Proactive – dynamic action and forward planning.
Reconciling the Conflicting Interests of Stakeholders.
• Stakeholders
• Coordinating a business’ resources to achieve goals.
• Working with/through others to achieve goals in a changing environment.
Features of effective Management
• Joint efforts of employees are directed towards achieving the business’ goals.
• Major factor influencing success or failure.
Skills of Management
• Ability to do something well.
• Effective managers possess a range of skills and are able to use them in different situations.
1. Interpersonal
• Work and communicate with others and understand their needs.
• Ability to communicate, motivate, lead and inspire.
• Communication – exchange of information between people.
• Communicating business goals and strategies is crucial to success.
• Managers who can communicate will find it easy to influence.
• Miscommunication can lead to serious harm to the business.
• Important for manager to be aware of the power for non-verbal communication e.g. body language.
2. Strategic Thinking
• Thinking about the future direction and goals.
• Allows manager to see the business as a whole and to look at it in a long term perspective.
3. Vision
• Clear, sense of direction, allowing people to attain a common goal.
• Share vision, inspire others, managers will have to display leadership qualities.
• Leadership – ability to influence people to set and achieve specific goals.
4. Problem Solving and Decision Making.
• Problem solving – finding then implementing a course of action to correct an unworkable situation.
• This task involves decision making.
• Decision making – identifying options available and choosing a specific course of action to solve the problem.
5. Flexibility and Adaptability To Change.
• Managers must be:
- Flexible – able to be persuaded of influenced.
- Adaptable – able to change according to circumstances.
- Proactive – dynamic action and forward planning.
Reconciling the Conflicting Interests of Stakeholders.
• Stakeholders