FORM SIX COMMERCE – ORGANIZATION AND MANAGEMENT OF A BUSINESS

MANAGEMENT

Management as a process: A process of employing human and physical resource to the accomplishment of pre- determined objectives of a firm.

Or

Is a process consisting of activities involved in the planning and controlling of performance to the attainment of stated objectives using human and other physical resources.

Or

Management is a process by which managers create, direct, maintain and operate organizations through systematic coordinated and cooperative human efforts.

Management as a group.

A group of personnel who perform different functions for the accomplishment of certain goals. These people are known as managers.

A manager: is a person who performs the managerial functions of planning, organizing staffing, directing, controlling and coordinating.

Management as a discipline: Is both a science and an art.

As a science: The knowledge and principles which managers use in managing is referred to as the field of management science.

As an art: The performance of managerial functions requires certain skills and tactics which are personal possession.

MANAGEMENT AS A SCIENCE

Management has a systematic body of knowledge.

• Management has concepts hypothesis, theories, experimentation and principles.
• Management principles are universally accepted among other characteristics of science discipline example.
• It should have a systematic body of knowledge including concept principles and theories.
• It should establish course and effect of relationship.
• It should have a method of scientific inquiry.
• Its principles should be verifiable.
• It should ensure predict results.
• It should have a universal application.

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Management as an art

Art is bringing the desired result through application of knowledge and skills.

Note: Science seeks knowledge and art use knowledge to achieve results.

Art has the following features.

• It needs personal skills
• It signifies practical knowledge
• It help in achieving results
• It is creative in nature

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Note: Every manager apply certain knowledge skills and personal creativity while dealing with people to achieve the desired results.

MANAGEMENT AS PROFESSION

To be judged as profession must have the following criteria

1. A body of knowledge: knowledge that can be learnt through illustrations for reasonable long time
2. Competent application: utilization of knowledge in solving complex and important problems.
3. Social responsibilities: Desire to serve others and the community
4. Community sanction: High community respect based upon society’s recognition of the first three criteria
5. Self control: Established code of conduct enforced by professional membership

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OBJECTIVES OF MANAGEMENT

The main objective of any business is to earn profit by providing wants and satisfying goods and services to customers

In order to attain that aim a firms management should fulfill the following

1.  Produce and distribute goods to customers
2. Keep customers satisfied with good services and quality products
3.  Build a team of knowledgable competent workers who are well taken care and happy.
4. Achieve workers cooperation for the attainment of organization’s goals
5.  Maintain and achieve good relations with suppliers of raw- materials and finance so that production can continue
6. Build a favorable public image of the firm and its product
7. Use resources economically by avoiding wastage
8.  Improve the welfare of people surrounding the firm by maintaining environment and provision of services

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CHARACTERISTICS OF MANAGEMENT:

1.    Management is milt-disciplinary

It takes the help of social sciences such as sociology, psychology and economics i.e much of management literature is the result of the association of those disciplines.

2.    Management is a universal activity: The principles and practice of management are universal in use.

3.    Management is activity based. The task of management is based upon a given productive based activity

4.    Management makes things happen: managers focuses their attention and efforts in bringing about successful results i.e They known where to start, what to do to keep things moving.

5.    Management is accomplished by with and through the efforts of others. It is the ability of the person in getting work accomplished through people at work

6.    Management is an integrative process. Management is the integration of human and other resources that lead to effective performance.

7.    Management is intangible. Management is unseen force, its presence is evidenced by the result of its efforts like adequate work output and good spirit of workers

8.    Management is an art and a science. Managers use scientific and artistic way in dealing with the human and physical resources of a company.

LEVELS OF MANAGEMENT

Refers to a line of democracy between various management positions in an organization

The number of levels increase when the size of the business and work force increase.

But there are generally three levels of management

1.    Top management

2.    Middle level management

3.    Lower lever or first line management

NOTE: Management is best studied into three groups:

1.    Managerial qualities.

2.    General principles of management.

3.    Elements of management(functions of management).

MANAGERIAL QUALITIES

The following are qualities required by managerial personnel.

1.    Physical. Includes health, vigor and appearance

      2.    Moral: willingness to accept responsibilities, initiative, loyalty and dignity

      3.    General education

      4.    Special knowledge: knowledge and skills to functions performed

      5.    Qualities of experience. Knowledge and skills arising from the work.

Managerial skills

All managers have similar skills in three important areas .

1. Conceptual skills: Ability to solve long term problems. It involves looking at organization problems from broad conceptual base and making decisions more consistent with organizational objectives.
2. Human skills: ability to work effectively, ensure interpersonal relations motivate and influence other to achieve organizational goals.
3. Technical skills: ability to use tools, apply specialized knowledge and manage processes.

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PRINCIPLES OF MANAGEMENT

A principle is a fundamental statement of truth providing guide to the thought and action.

The management principles therefore enable the manager to approach problems systematically.

The principles serve as a guide for managerial activity.These principles include:

1. Division of work: To achieve efficiency, work must be divided for workers to specialize.
2. Authority and responsibility must be as par

           i) Authority: is the right to give orders to subordinates.

         ii) Responsibility: Duty which the subordinate is expected to perform by virtue of his position in the organization.

         iii) Authority and responsibility co exist and they must go hand in hand.

3. Discipline: This implies obedience, respect of authority and observance of established rules and regulations
4. Unity of command: an employee should receive orders from one superior and only one superior at a time.
5. Unity of direction: There should be one head and one plan for a group of activities having the same objectives
6. Subordination of individual common interest or interest to general of the company i.e Constant supervision is necessary to prevent promotion of personal. Interest at the cost of the organization.
7. Remuneration of personnel: method of remuneration payable to personnel should be fair, reasonable and rewarding of effort.
8. Centralization: centralization of authority to the management.Centralization and decentralization is a matter of proportion.This proportion should be decided keeping in view the circumstance of the particular case.
9. Scalar chain: Chain of superiors ranging from the ultimate authority to the lowest rank.It is unbroken chain or line of command from the top to the bottom of the organization
10. Equity : There should be equity of treatment in dealing with subordinates and no discrimination.
11. Stability and tenure: This help to develop loyalty and attachment on the part of employees.
12. There must be spirit and coordination among members of an organization. Unity is strength and strength of the company lies in the cooperation and harmony in individual efforts.

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MANAGERIAL FUNCTION OR ELEMENTS/FUNCTIONS OF MANAGEMENT

Elements of Management common to all broadly are grouped into the following

                  i.            Planning

                  ii.           Organizing

                  iii.          Staffing

                  iv.          Directing

                  v.           Coordinating

                  vi.          Controlling

           Operative functions

                    i.            Production management.

                    ii.           Purchasing management.

                    iii.          Marketing management.

                    iv.           Financing management.

                    v.            Personnel management.

1.PLANNING

Is deciding in advance what is to be done. It involves the selection of objectives policies procedures and programmes from among alternatives.

A Plan: is a per-determined course of action which helps to provide direction for members of a business organization.

Purpose of planning

1. Establish the goals of the organization.
2. Provide sense of security for managers and workers.
3. Establish a sense of direction future activities of the organization as a whole.
4. Coordinate activities in pursuit of objectives.
5. Enable a firm to respond to anticipated events.
6. Intervene and act positively in situations rather than react to them.
7. Synthesize and utilize data for the future use.
8. Reduce the gap between objectives and performance
9. Handle changes.
10. Review objects and determine priorities.

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Requirement/Principles of a good plan

1. The plan should be simple:Simple to be understood and be worked upon by individuals and groups in an organization.
2. The plan should be specific rather than general: objectives and goals should be clearly stated and defined and the means of carrying out the plan should be specifically detailed.
3. The plan should be logical and practical: the facts and figure used should appeal and make sense to those who use it.
4. The plan should be flexible in nature: the plan should accommodate changes if necessary .
5. The plan should be complete and integrated: The plan must be comprehensive

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