BUSINESS MANAGEMENT AND

ADMINISTATION 1(BMA101B)
Tutor Slides 3
STUDY UNIT 4 Section 3: Leading and Motivation
Learning Outcome
Identify and explain management tasks namely planning, organising, leading,
motivating and controlling and how they relate to organisational success.
Key Concept
Define leadership and discuss the leadership process.
Discuss the importance of leading as one of the five management functions.
Discuss leadership theories.
Recognise leadership’s tools of the trade.
Identify some problems and trends connected with leadership.
Understand how individual differences have an effect on motivation.
Discuss motivational theories.
Choose useful strategies to motivate employees in an organisation
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Leading
• Leadership -The ability to influence a group toward the achievement
of goals
• Management - Use of authority inherent in designated formal rank to
obtain compliance from organizational members
• The world is changing and leadership is needed to force enterprises to
adapt their strategies to manage uncertainty.
• The majority of leadership has yet to become aware of the need for
change.
• The quality of leadership does not relate to individual leaders but
should be a characteristic of an entire organisation.
• Challenges requiring leadership changes can be separated into two
categories.
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Leading
 Leadership -The ability to influence a group toward the
achievement of goals
The world is changing and leadership is needed to force
enterprises to adapt their strategies to manage uncertainty.
The majority of leadership has yet to become aware of the
need for change.
The quality of leadership does not relate to individual leaders
but should be a characteristic of an entire organisation.
Challenges requiring leadership changes can be separated
into two categories.

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Leading – Components of Leadership
The integration of leadership and management

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Leading – Components of Leadership
The components of leadership entails the following
1.Authority – The right if a manager to give commands to and
demand action from employees
2. Power – the managers ability to influence the behavior of
employees
3. Responsibility - the obligation to achieve organizational goals
by performing required activities
4. Delegation – the process of assigning responsibility and
authority for achieving organizational goals
5. Accountability - the evaluation of how individuals meet their
responsibility 6
Leadership Theories
• Three main traditional theories

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Leading – Contemporary approaches to leadership

Trust is a vital component of effective leadership

Five dimensions of trust:

Integrity
Competence
Consistency
Loyalty
Openness.

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Leading – Contemporary approaches to leadership
• Contemporary approaches to leadership
• Charismatic leadership
• Visionary leadership
• Transactional and transformational leadership.
• New approaches to leadership
• Ethical leadership
• Cross-cultural leadership
• Managing diversity
• Servant leadership
• Peer to peer leadership
• Agile leadership

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Motivation
Motivation can be defined as the desire and willingness of employees to
reach the goals of the business.
• This is an inner desire. For this reason a manager can not motivate an
employee, but they can create an environment where the employee
can find motivation.
• Motivated employees are crucial to an organisations performance and
success.
• Motivated employees tend to be more productive and perform better.
They are also more likely to set measurable and specific goals.
• Demotivated employees are more likely to complain about small
things. And are also more likely to be negative, lack interest, contribute
fewer innovative ideas.
• Performance = Ability x Motivation x Resources
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Motivation - Communication

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STUDY UNIT 4 Section 4: Controlling
Learning Outcome
Identify and explain management tasks namely planning,
organising, leading, motivating and controlling and how they
relate to organisational success.
Key Concept

Define the term control.

Explain why controlling is an important management task.
 Identify the different types of control.
Describe the steps in the control process.

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Controlling – Characteristics of effective control system
Control is part of an active management process that is used to monitor
planning and support leadership
• Integration - integrate with planning when it is flexible , accurate,
objective timely and simple
• Accurate- objective and provide a true picture of the situation
• Flexibility - accommodate changes
• Timely -Managers have to evaluate their organisations from time to
time. This enables them to compare their own performance from other
periods and other organisations performance of the same period.
• Simplicity - too much information especially if irrelevant makes great
demand on the time and attention of management which means that
control process becomes expensive
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 The purpose of control
A control process is necessary for the following reasons:
Linked with planning, organising and leading
Helps companies adapt to environmental change
Helps limit the accumulation of error
Helps companies cope with increasing organisational size
and complexity
Helps minimise costs.
The control process
Operations Management – Introduction
The nature of operations – An operation is something that produces, works, is in
action and has a value adding effect. Any activity where inputs are transformed to an
output. The engine or core of an organization
OM Activities include:
Design of products and services to provide for changing needs of customers.
Demand and capacity planning to ensure matching capacity with demand.
Production system design to enable the organisation to use the best system for the
job to be done.
Production planning and control.
Improvement, problem solving and maintenance of operations.

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STUDY UNIT 5: Operations Management
Learning Outcome
Demonstrate knowledge and understanding of various business
functions as well as how they contribute to organisational
success.
Key Concept
Describe the background, developments and importance of
operations management as a core organisational function.
Define and explain operations strategy and design.
 Explain operations processes, planning and control.
 Describe improvement and quality management.
 Understand the importance of project management
. 17
Operations Management Defined
Operations is the transformation function. Comprises of inputs, transformation
process and output e.g. Bakery. Process management not just for the factory. All
business functions involve process management.
 Operations management (OM) is for those who want to be creative and make
things happen, and not for those who just dream, watch things happen and
wonder what happened
 Operations management is the activity of managing the resources devoted
towards the creation and delivering of products and services
 The broad definition of operations management (OM) is all those value-adding
actions, activities and processes needed for the fulfillment of customer
expectations, requests and needs

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Importance of Operations Management
It can reduce the costs of making the products or offering the services.
 It can increase the revenue the business receives for offering its
products and services to its customers.
 It can reduce the amount of investment needed to manufacture the
type and quantity of products or to offer the services required.
It can provide the impetus for a new innovation by using its solid base
of operational skills and knowledge to develop new products and
services.
Operations can improve productivity.
Operations management can help a business to satisfy the needs of its
customers more effectively.
Operations can be decisive for the general reputation of the business

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The transformation Process

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Example of transformation process
Transformed input resources Description Examples

Material Materials are transformed from one Manufacturing, construction,

form to another and/or moved from transport, food and drinks.
one place to another.

Information processing Information is transformed from one Radio and TV newscasts,

form to another and/or moved from newspapers, banking,
one place to another. attending a lecture,
consulting a doctor

Customer processing The customer is transformed by the Hairdressers, hospitals,

operation education

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Classification of Process types
 There are two groups of operations processes. function for product production and those
that function for service provision. This is due to the different characteristics of products
and services as we discussed earlier.
 For Manufacturing Processes
 Project systems – This process is suitable for producing a single product that is usually highly customised.
Examples are construction sites and large scale manufacturing plants.
 Job-lot process – This comprises low volume production on a small scale. Jewellery production falls into
this category.
 Batch production – These are operations that involve the manufacture of similar products in batches.
Examples are the manufacture of domestic appliances such as toasters and irons.
 Mass production –Production takes place in high volume and a relatively narrow variety. Examples are
bread baking, bottling and canning plants.
 Continuous production – This is a highly inflexible, capital-intensive process for the manufacturing of
extremely high volumes of standardised products. Examples are an oil refinery, steel cable manufacturer
and paper making

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Classification of Process types
Service provider processes.
Professional services – These require formal academic qualifications such
as a degree or diploma. They range from a doctorate to practice medicine
to a degree to consult.
Service shops – These represent a category that falls between professional
and mass services. There is some client contact and standardization.
Examples are banks and retail stores.
Mass services – These represent many client transactions, little contact,
and high levels of standardization. Examples are television broadcasting
and railway transportation

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 Operations Planning and Control
 Operations planning is governed by OM policy based on the operation strategy. Aimed
at achieving continuity and consistency with the overall business plan.
 Planning and control of the operational process are activities to reconcile supply and
demand in terms of volume, timing and quality
 The supply side refers to the literal supply of materials and so on while the demand side
refers to the level of demand from the customer. In any operation the supply of resources
is limited. The limitations within which the planning and control of activities take place
are as follows:
 Cost limitations – products and services must be produced within a specific
budget.
 Capacity limitations – products and services must be produced within the
designed capacity limits of the operation.
 Timing limitations – products and services must be produced in good time so that
they will have value for customers.
 Quality limitations – products and services must conform to all requirements of
quality

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 Operations Planning and Control
 Reconciling supply with demand is completed in terms of three dimensions; namely
 volume,
 timing,
 and quality.
 Volume and timing dimensions are reconciled by loading tasks to particular work centres,
sequencing those tasks to be completed in a specific order, and scheduling them so that
they are completed in the most efficient manner.
 An operations manager is responsible for activities such as capacity and quality. Capacity
refers to the total quantity a factory can produce within a given period. For example, a
motor vehicle assembly plant can produce a certain number of cars per day, per month,
and per annum.
 The marketing function is generally the provider of total demand. This is then matched
with capacity and a middle ground. In cases of mass produced items, it is usual to
measure capacity in terms of the output of volumes.

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 Operations planning and control
Planning and control of the operations process
 Finding the most efficient way of manufacturing goods and services to satisfy
customers needs.
 2 aspects :Supply and demand
 Capacity planning and control
 Measuring capacity
 Adapting capacity to changes in demand
 Determine total demand and required capacity
 Identify alternative capacity plans.
 Choice of capacity planning and control approach.
 Moving average demand forecasting
 Cumulative representations of demand and capacity
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 Operations planning and control
Quality planning and control
 Quality planning and control are so important today that their execution is not
confined to one functional area of the business.
 Quality is one of the main ways of adding value to products and obtaining a
competitive advantage.
 Quality impacts directly on the profits of a business and its chances of survival and
growth.
 It can be defined as ‘the absolute best’ or ‘meeting customer expectations.’
It is regarded as being vital for an organisation’s existence and growth.
Steps in quality planning and control
 Define the quality characteristics of the product or service
 Measure the quality characteristics
 Set standards for each quality characteristic
 Control quality against set standards
 Identify and rectify the causes of poor quality
 Continuously improve quality
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 THE END

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