TOPIC 1: FUNCTIONAL AREAS OF BUSINESS Departments in a business organization are structured according to certain functions. The departments of various organizations will differ depending on the type of business. Below are four main functions that tend to be general to most organizations. Production - The production department is responsible for transforming raw materials into finished products. They are also responsible for quality control to ensure that required standards are met. Finance/Accounts - The accounts department makes and receives all payments on behalf of the business and records all financial transactions Marketing - This department creates awareness for the firm products and motivates consumers to buy. They also carry out market research to identify customer’s needs Human Resources/Personnel - The human resource department recruits and selects staff for the business organization. They are also responsible for staff training and welfare.
TOPIC 3: FUNCTIONS OF MANAGEMENT
Management is the organization and coordination of the activities of a business in order to achieve defined objectives. It involves the collective effort of all managers working towards achieving the organization’s goal.
Planning - All managers must plan, that is, setting out steps for the attainment of future organizational objectives. It involves formulating the policies and programmes for the firm. Organizing - Organization reduces cost, time, chaos and conflicts. Managers must obtain all the necessary tools, machinery and personnel for each task and arrange all tasks so that they are done in the most efficient manner. Directing - Managers must guide subordinates by giving them instructions to perform the tasks assigned. Delegating -Delegating duties involves giving others (e.g. supervisors) the authority to have specific tasks completed through the management of others. Therefore, supervisors will ensure that workers complete tasks assigned. Delegation reduces the workload of the manager. Controlling - Managers must continually measure the activities of subordinates, ensuring that all activities conform to plan. Coordinating - Managers must bring together all the various organizational tasks so that the organization may function harmoniously. Motivating- Managers must inspire workers to perform their tasks well. Staffing – Selecting staff/personnel
Activity: Classify the following management tasks into planning, organising, leading, motivating, controlling, coordinating. The first one is done for you.
Establishing overall goals and budgets – Planning
Ensuring that costs are kept within limits and waste is avoided.
Bringing together all the different processes and activities to achieve goals.
Instructing employees on ways to maintaining high level of production
Influencing workers to do their best
Establishing the company’s long-term goals
Rewarding employees for performing above the standards
Assigning tasks to subordinates
TOPIC: 3 RESPONSIBILITIES OF MANAGEMENT Management must be aware of their responsibilities to the various groups that they interact with for the successful running of the business. 1. To the owners of the business (this also includes shareholders) Managers are expected to ensure efficiency in all areas of the business. 2. To employees – Managers must pay adequate wages and provide good working conditions. 3. To customers – Managers must ensure that products are of good quality and are reasonably priced. 4. To the society – Managers must find ways to reduce harmful air pollution and the discharge of harmful waste created by the production process into rivers and seas. 5. To the government – Management should adhere to various government legislation and regulation.
Activity: This activity will help you understand the responsibilities of Management to the various stakeholders. Identify to whom Management of the organization has the following responsibilities. The first one is done for you.