MANAGING THE ENTERPRISE

What is Management?

-It is a process by which a cooperative group directs action toward common goals

-It is the process of coordinating the resources of the organization in order to achieve common goal.

-It is both an art and science

Production Resources

-Material Resources -Human Resources -Financial Resources -Information Resources

Material Resources

-Determine the materials that are indigenous to the area and abundant quantities.

-Study the possibilities of making money out these abundant resources, either through gathering trading
or partial processing, manufacturing products.

Human Resources

-People who plan and implement business activities, some have specialized skills that can be used or
developed for commercial purposes.

Financial Resources

With sufficient funds business can implement their projects

Information Resources

*Good and exact information is possible to formulate good plans and in decision making, facts are very
important.

*The entrepreneur must know the needs of his or her Business rivals’ technological developments and
business policies of the government.

Basic Function of Management

1. Establish goals of the enterprise and develop plans to attain goals

2. Organize people and other resources to achieve goals

3. Lead and motivate people towards the goals of the enterprise

4. Maintain sufficient control system to ensure that the enterprise is moving well towards its goals.

Characteristics of Successful Managers

Set Goals- manager should be well organized allocate priorities, establish their short term and long-term
goals, then ensure all effort to achieve them.

Good Communicator- it is important for a manager to understand the needs of customers, active
listening, helps managers gather relevant information.
A manager is talented in networking, socializing, and contacting and interacting with others are source
of in structured managerial information and a tool developing a good reputation.

Manager should be a good negotiator-one of the requirements is to negotiate with superiors,

subordinates, customers and suppliers.

Theories of Management

-Classical management Theory -Behavioral Management Theory and -Modern Management Theory.

Classical Management Theory-is the oldest management theory. Classical Management Theory focuses
on operations and the creation of standards to increase production output.

Behavioral Management Theory-Increasingly complex industries and organizations gave rise to more
human interests in the workplace. Management theories began to include more people-oriented
methods.

Modern Management Theory -seeks to incorporate these elements with human and traditional
theories. A manager practicing Modern Management Theory might use statistics to measure
performance and encourage cross-functional cooperation. It is actually comprised of three other
management theories.

Quantitative theory-this is a simple number-based theory that relies on calculating the risks, benefits
and drawbacks of any action before it is taken.

System theory-this theory states that all parts of a company, form CEO to entry level employee must
work in harmony for the company to survive.

Contingency theory- created by Fred Fiedler, this theory states that it is up to the leaders of a company
to assess a situation and use the best leadership strategy.

Business Risks

What Is Business Risk?

-is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail.
Anything that threatens a company's ability to achieve its financial goals is considered a business risk.

Example of business risks

1.Burglary-there is a need to protect inventories, supplies, equipment, by providing safety facilities.

2.Robbery-installation of proper alarm devices, lighting facilities and other preventive measures can
eliminate robbery.

3. shoplifting- children pick goods without knowing they are committing a crime. Mirrors and store
layout can detect shoplifting.

4.Employee theft- avoid temptations for employees, such as open storage rooms, desks, cash register.
There are should be strict hiring policy for personnel involved, in the handling of money and products.