MANAGEMENT

What is Management?

Management is essential for an organized life and necessary to run all types of management.
Good management is the backbone of successful organizations. Managing life means getting
things done to achieve life’s objectives and managing an organization means getting things done
with and through other people to achieve its objectives.

Whether management is an art or science, will continue to be a subject of debate.

1. Planning

Planning is looking ahead. According to Henri Fayol, drawing up a good plan of action is the
hardest of the five functions of management. This requires an active participation of the entire
organization. With respect to time and implementation, planning must be linked to and
coordinated on different levels. Planning must take the organization’s available resources and
flexibility of personnel into consideration as this will guarantee continuity.
2. Organizing

An organization can only function well if it is well-organized. This means that there must be
sufficient capital, staff and raw materials so that the organization can run smoothly and that it
can build a good working structure. The organizational structure with a good division of
functions and tasks is of crucial importance. When the number of functions increases, the
organization will expand both horizontally and vertically. This requires a different type of
leadership. Organizing is an important function of the five functions of management.

3. Commanding

When given orders and clear working instructions, employees will know exactly what is required
of them. Return from all employees will be optimized if they are given concrete instructions with
respect to the activities that must be carried out by them. Successful managers have integrity,
communicate clearly and base their decisions on regular audits. They are capable of motivating a
team and encouraging employees to take initiative.

4. Coordinating

When all activities are harmonized, the organization will function better. Positive influencing of
employees behaviour is important in this. Coordination therefore aims at stimulating motivation
and discipline within the group dynamics. This requires clear communication and good
leadership. Only through positive employee behaviour management can the intended objectives
be achieved.

5. Controlling

By verifying whether everything is going according to plan, the organization knows exactly
whether the activities are carried out in conformity with the plan.

Control takes place in a four-step process:

1. Establish performance standards based on organizational objectives

2. Measure and report on actual performance
3. Compare results with performance and standards
4. Take corrective or preventive measures as needed
Business Plan
A written document that describes in detail how a business is going to
achieve its goals. A business plan provides direction, keeping you on track
and is usually a requirement when seeking finance.

The Importance of a business plan

1. It serves as a guide you can use to focus your energy company’s goals.
2. It allows the company to measure its progressagainst set goals.
3. It serves as a roadmap and timetable for achieving your goals and
objectives.
4. It serves as a handbook for new employees describing who you are and
what your company is all about
5. It serves as a résumé you can use to introduce your business to
suppliers, vendors, lenders, and other
6. It serves as a backup on business loan application
7. It serves as an opportunity to test out a new idea to see if it holds real
promise of success

Procedures for Drawing up Business Plan

1. Business Profile - This is typically called the management plan or
operations plan. It covers details about your business including
structure, skills and experience of management team, location and
premises, staff strength, products/services, turnover and profit margins.
2. Market and Sales- This is the marketing plan. It should outline the
market or industry you are entering, your customers and your
competitors. This section should also cover your key marketing targets
and your strategies for delivering on these targets.
3. Finances - The financial plan includes how you will finance your
business, costing (calculation of break-even point), and financial
projections (Cash flow forecast/prediction).
4. SWOT Analyses: You have to examine your strength, weaknesses,
opportunities and Threats.
5. About your future - This section covers your plans for the future and
can include a vision statement, business goals and key business
milestones.
6. When you have finished your business plan
a. Review it regularly. Business planning is an ongoing business
activity. As your business changes many of the strategies in your plan
will need to change to ensure your business is still heading in the
right direction. Having your plan up to date can keep you focused on
where you are heading and ensure you are ready when you need it
again.
b. Distribute your plan. A business plan is a blueprint for how your
business will run and reveals what future direction your business will
take. Reasonably you will want to be careful who you show your plan
to and avoid your competitors seeing it.
 c. Protect your plan. Having an understanding with third parties when
distributing a plan could be enough protection for some businesses.
However, others who have innovative business practices or products
or services may wish to go further and sign a confidentiality
agreement with each person to protect their innovations. It may also
be a good idea to include some words in your plan asking the reader
not to disclose the details of your plan.

Setting Simple Business Goals

Meaning of Business Goals: Business goals describe

what a business is expected to achieve throughout the
year. Setting business goals helps to establish the
vision a business owner sees for the future. Business
goals can either be a short-term goal or long-term
goal. A short-term goal is something you want to do in
the near future. It is a goal you can achieve in 12 months
or less. Long-term goals usually take 12 months or more
to achieve.

In setting business goals, Businesses should analyse

those internal and external factors which are either
favourable or unfavourable to the achieving of the
business goals. The analyses of the internal and external
factors are referred to as SWOT analysis.

SWOT Analysis
SWOT stands for Strengths, Weaknesses, Opportunities
and Threats, and a SWOT analysis examines these
factors for a given business, project, or personal
objective. The idea is to define a goal and then use the
analysis to determine what internal and external factors
may support or hinder that objective. Strengths and
weaknesses represent the internal factors affecting an
individual or organization, while opportunities and
threats constitute external, environmental factors. A
SWOT analysis helps to measure risks and rewards while
also identifying the key factors related to accomplishing
the stated objective. If done effectively, a SWOT analysis
should lead to a strategy for dealing with negative
factors while maximizing strengths and opportunities.
The more precise your SWOT analysis, the easier it will
be to create an action plan for accomplishing your goals.

SWOT Analysis Template

Strengths Weaknesses
What advantages does What are people in your
your organization have? market likely to see as
 Unique marketing skill weaknesses?
 Lower cost of resources  Poor marketing skill
 Strong leadership style  High cost of resources
 Competent and  Poor leadership style
qualified staff  Incompetent and
 More sources of finance unqualified staff
 High quality products  Limited sources of
 Compliance to finance
environmental laws  Low quality products
 Non-compliance to
environmental laws
 No Safety measures
Opportunities Threats
What good opportunities What obstacles do you
can you spot? face?
 Introduction of  Bad debt or cash-flow
automated machines problems
 Exporting your product  Introduction of
or entering into new alternative product by
market. Competitors
 Employment of  New environmental
competent and laws
qualified staff  New government
 Changes in government Policies
policy related to your  Technological changes
field.  Trade Union
 Will adopt Safety
measures

How to Set Business Goals

Exercises before Setting Business Goal

1. Complete a SWOT analysis.
2.Run internal and competitive benchmarking. This
exercise will help you compare performance in
departments in your organization, and with your
competitors’ organizations. This information will be
helpful during the business goal-setting process by
showcasing where you are strong or weak.
3.Do a market analysis. What will be the market share
of the company in 10years time from now? What is
trending for organizations in your industry? A
 thorough market analysis will help you answer these
questions.
4.Review your past performance: Without knowing
where you have come from, it is hard to decide where
you should be heading. Past performance can help
inform a number of your future business goals.
5.Solicit input from employees: Gaining insight from
employees is a smart strategy, as it will give your
leadership team insight from those on the “ground
floor” of the organization.
6.Determine who will participate in the goal-setting
exercise.
7.Give all participants some pre-reading homework
so they can come prepared.

Exercises During Setting Business Goal

1.Be sure every goal ties back to your mission

(assignment/ task, duty) and your vision.

A mission statement is a short statement of why an

organization exists, what its overall goal is, identifying
the goal of its operations: what kind of product or
service it provides, its primary customers or market, and
its geographical region of operation.It may include a
short statement of such fundamental matters as the
organization's values or philosophies, a business's main
competitive advantages, or a desired future state—the
"vision".

2.Make your goals descriptive: The more specific and

descriptive your goals are, the more likely that
everyone understands each goal in the same way.
3.Be certain your goals are realistic.
4.Consider whether your goals are measurable. It
is important that you are certain that your goals can
be tracked, measured, and analyzed in some way.
5.Consider what actions you will take to achieve
these goals (Action plans). Sometimes, avoiding
conflicts across your goals is easier said than done.
For example, one goal might be to have 100%
customer satisfaction while another might be to
maximize profit. These two things may be unrelated.
6.Examine who will be responsible for each of your
goals.
Who will ensure everyone stays on track? Who will
ensure that reporting on progress takes place each
month or each quarter? Consider the roles and
responsibilities required to assure continuous
advancement.
7.Identify the resources you will need to achieve
these goals.
For example, if one of your goals is to develop and use
a customer relationship management (CRM) system,
do you have the funds budgeted for it? Budgetary
limitations should also be considered during the goal-
setting process.

Exercises After Setting Business Goal

1.Meet regularly to check in on your progress.
This ensures everyone involved stays on-task no
matter how much time goes by. Keep in mind that
some adjustments may be required as your team starts
to pursue these goals. Don’t be afraid to adjust as
needed!
2.Communicate your goals internally (and possibly
externally). Does everyone in your organization
 understand the goals? The entire company is involved
in reaching them, so every department and every
individual should understand how their performance
impacts on the goals and therefore, the overall success
of the company.
3.Make sure you have good data for the related
measures.
Once your goals have been set, select measures (also
known as key performance indicators) that will help
you monitor performance toward each goal.
4.Don’t forget to reward your organization as you
hit your goals! The process of business goal setting
can be challenging, but actually realizing a business
goal is even more so! So when your organization
achieves a goal, take time to acknowledge it. Knowing
that the ‘wins’ are celebrated, not overlooked, will
bring renewed motivation to everyone involved.

Importance of a business Goals

1. They provide guidance and direction.
2. Goals help planning.
3. Goals motivate and inspire employees.
4. Goals help organizations evaluate and control
performance.
5. Goals improve group unity
6. It provides focus: When organizations set goals for
employees, it shows employees the organization's
priorities.