Business Management & Change

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Business Studies Notes
Topic 1 – Business Management and Change

The Nature of Management
The importance of Effective Management * Management = process of coordinating and integrating work activities in order to achieve goals and objectives of the business. * Planning: 1. Strategic plans – long term (3-5 yrs), responsibility of senior management
Eg. Expand overseas, new product development, diversify. 2. Tactical plans – medium terms (6 months – 3 yrs), responsibility of middle management
Eg. Increasing market share, implementing strategic plans 3. Operational plan – short term (1 week – 6 months), responsibility of department heads
Eg. Rosters, ordering supplies * Organising = establishing the structure of
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Vision mission statement goals and objectives strategies

* Flexibility and Adaptability to change = managers must adapt to changes in the internal and external environment (eg changes in tech, society, competition).
- manager must be proactive (anticipate) and reactive (adapt) * Self Managing skills = must be able to manage own affairs and increasingly establish self managed teams. This encourages teamwork and a sense of belonging which can transfer into higher productivity or profits. * Teamwork = having common goals rather than individual goals eliminating competition between staff. This creates a sense of belonging. * Complex Problem solving and Decision Making = must be able to define a problem, generate alternative solutions, evaluate and select one alternative and then implement and follow up on the solution. * Ethical and Personal Standards = must be beyond reproach regarding moral and ethical behaviour, responsible for developing codes of practice for the business which they must abide by.
- ways to ensure ethical practice: select people for employment with high personal standards and ethics & develop codes of ethics for the business.

Responsibility to Stakeholders
Internal
* Employees/managers
- safe working environment
- fair wages
- equal employment opportunity
- follow all legal requirements
- training * Shareholders
- dividends
- conduct ethical/moral
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