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LESSON 4
MANAGEMENT ASPECTS FOR ENTREPRENEURS
Every entrepreneur's ability is determined by his or her managerial abilities. As a
result, it is most appropriate to consider business management abilities to be the foundation
of entrepreneurship. Managing a firm entail overseeing many different entities. Management
is described as a set of well-defined and methodical skills that are taught to persons who
aspire to be managers. This knowledge has evolved over time and is always changing and
expanding. In addition, these concepts and principles are applied to a variety of business
scenarios. This knowledge is taught in a variety of institutes and colleges, as well as through
books and periodicals. A profession has admission requirements. However, management
fails to meet this need in a satisfactory manner. Medicine, for example, necessitates the
presence of a practicing physician. Surprisingly, no comparable prerequisites exist in the
management sphere. Regardless of their educational qualifications, anyone can be labeled a
manager in an organization. Furthermore, there is no specific degree that a person must
possess to be considered a manager. Having educational knowledge from reputable
management institutes, on the other hand, is a significant feature and sought attribute.
We will study about the concept of management and its relationship to
entrepreneurship in this class. The concept will give an understanding of management's
emphasis and how it might help an entrepreneur achieve his or her aim of entering the
current business world.

Learning Objectives:
At the end of the lesson the student will be able to:

 Define management and understand its functions;

 Realize the value of management skills and management’s role in attaining business
goals;
 Read organization structures;
 Compare leaders with managers.

What Is Management?

 Is the attainment of organizational goals in an effective and efficient manner through

planning, organizing, leading and controlling organizational resources.

Characteristics Of Management

Management is a distinct activity with the following distinguishing characteristics:

1. Economic Resource: Management is one of the components of production, along

with land, labor, and capital. The demand for managers grows in tandem with the
development of industrialization. Efficiency in management is the most important
input in the success of any organized group activity since it assembles and integrates
other production elements such as labor, capital, and materials. Labor, capital, and

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 resources alone are insufficient to ensure production; instead, the catalyst of
management is required to produce the commodities and services that society
requires. As a result, management is an important part of every firm.
2. Purposeful: Management is a goal-oriented activity; thus, it must be purposeful. It
coordinates employee efforts to achieve the organization's goals. Managerial
success is measured by the extent to which organizational goals are realized. All
levels of management must be aware of and understand the company's objectives.
3. Separate Process: Planning, organizing, staffing, directing, and managing are alI
separate processes in management. These functions are so intertwined that it's
impossible to pinpoint the order in which they occur or their relative importance.
4. Integrative Force: The essence of management is the integration of human and
non-human resources in order to accomplish the desired outcomes. All of these
resources are available to those in charge. To get the best results from their staff,
managers combine non-human resources with their skills, experience, and
management concepts. Individual desires are also aligned with organizational goals
by managers.
5. Authority System: A command-and-control system hierarchy is represented by
management as a group of managers. Managers have diverse degrees of authority
at various levels. The degree of authority rapidly decreases as we proceed down the
managerial structure. Managers can execute their jobs more efficiently when they
have authority.
6. Management has evolved as a field of study (i.e., discipline) with the support of a
variety of other disciplines, including engineering, anthropology, sociology, and
psychology. The combination of these disciplines has resulted in a large amount of
management literature. Productivity orientation, for example, is based on industrial
engineering, while human relations orientation is based on psychology. In the same
way, sociology and operations research have aided the advancement of
management science.
7. Universal Applicability: Management is applicable to everyone. Management
principles and approaches can be used in a variety of settings, including business,
education, the military, government, and hospitals. Henri Fayol proposed that
management concepts would apply in almost every situation. The principles are
flexible and adaptable working standards that can be used to any organization where
human efforts are to be coordinated.

Management Functions
Planning, organizing, staffing, directing, coordinating, and controlling will be
designated as management functions for our purposes.

1. PLANNING: Of all the management functions, planning is the most basic and
ubiquitous. If people working in groups are expected to perform well, they must
understand what has to be done, what tasks they must conduct in order to complete the
task, and when it must be completed. Performance planning is concerned with the, "how,
and 'when' It entails making decisions in the present regarding future goals and strategies
for achieving them. It entails the following:

a. determining long and short-term objectives;

b. developing strategies and courses of action for achieving these objectives; and
c. formulating policies, procedures, and rules, among other things, for putting
strategies and plans into effect.

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 Top management determines the organization's goals and objectives in light of the
organization's fundamental purpose and mission, as well as environmental considerations,
business predictions, and available and potential resources. These goals are both long-term
and short-term in nature. There are 13 objectives or goals, separated into divisional,
departmental, sectional, and individual aims. Following that, strategies and plans of action
are developed to be implemented at various levels of management and in various parts of
the organization. Policies, procedures, and rules establish the framework for decision-
making as well as the method and order in which decisions are made and implemented.

2. ORGANIZING: Organizing entails identifying the activities required to meet corporate

objectives and carry out plans, grouping those activities into jobs, assigning these jobs
and activities to departments and individuals, delegating responsibility and authority for
performance, and providing support for activity synchronization on both a vertical and
horizontal level. Each manager must determine what actions must be carried out in his or
her department or sector in order to achieve the objectives. Every manager must
determine what actions must be carried out in his or her department or sector in order to
achieve the objectives. In order to complete jobs, he must group identical or comparable
activities, assign these jobs or sets of activities to subordinates, and delegate authority to
them so that they can make decisions and initiate actions. The sub-functions of
organizing are as follows: a. Identifying the activities needed to meet goals and put plans
into action

a. Organizing the actions into self-contained jobs

b. Employee job assignments.
c. Delegation of authority allows them to do their duties and command the
resources they require.
d. Creating a network of coordinating relationships.

The structure of the organization is the consequence of the organizing process. It

consists of a network of roles and authority-responsibility linkages, as well as organizational
positions, duties, and responsibilities.

Organizing is the basic process of combining and integrating human, physical,

organizational goals being met.

3. STAFFING: Permanent staffing is a vital management function. The next he tasks

after determining objectives, formulating strategies, policies, programs, procedures, and
rules to achieve them, and identifying and grouping activities for the implementation of
strategies, policies, programs, and so on. Because the efficiency and success of an
organization are significantly dependent on the quality of its workers, and because it is
one of the key functions of management to identify competent and trained people, staffing
has been acknowledged as a distinct function of management.
a. The process of determining the quantity and type of workers required is
known as staffing planning.
b. Recruitment to attract a sufficient number of potential employees to apply for
jobs in the company
c. Identifying the best qualified candidates for the open
d. positions Placement, orientation, and induction
e. Transfers, promotions, terminations, and layoffs are all examples of b.
f. Employee development and training.

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 Staffing is becoming accepted as a distinct management function as the relevance of the
human aspect in organizational efficiency is increasingly recognized. It hardly needs to be
stated that no organization can ever be better than its people, and managers must treat
hiring as seriously as any other function.

4. DIRECTING is the process of motivating people to do their best work and contribute
their full potential to the attainment of corporate objectives. The jobs of subordinates must
be explained and defined, they must be coached in work performance, and they must be
inspired to put up their best efforts with passion and zeal. The guiding function entails the
following sub-functions: a. Communication
a. Motivation
b. Leadership

5. COORDINATING: The process of establishing relationships between various sectors

of an organization so that they all pull in the same direction is known as coordination. As
a result, it is the process of connecting all of an organization's decisions, operations,
activities, and efforts in order to achieve organizational goals through unity of action. Mary
Parker Follet has emphasized the importance of coordinating process. According to her, a
manager should make sure that his company is "coordinated, so moving together in their
closely-knit and adjusting. actions, so linking, interlocking, and interacting that they
constitute a working unit, which is not congeries of individuals."

a. Relationships of authority and duty are clearly defined.

b. Directional consistency
c. Command consistency
d. Effective communication
e. Effective leadership

6. CONTROLLING: Controlling ensures that divisional, departmental, sectional, and

individual results are in line with predetermined goals and objectives. Goals and plans
must be monitored for deviations, which must be identified, investigated, and corrected.
When plans and objectives aren't accomplished, managers are given feedback, and all
other management procedures, such as planning, organizing, staffing, leading, and
coordinating, are assessed and revised as needed. Employees and their managers
should be aware of the objectives, targets, and performance standards. It also suggests a
flexible and dynamic organization that can adapt to changes in goals, plans, programs,
strategies, policies, and organizational structure. As a result, controlling entails the
following steps:
a. Performance evaluation against predefined objectives.
b. Identifying departures from these objectives.
c. Corrective activity to correct errors.

Although the management responsibilities of planning, organizing, staffing, directing,

coordinating, and controlling have been articulated in a specific order, they are not
performed in that order. Management is an essential process, and categorizing its functions
into neat boxes is difficult. Management functions tend to meld together, making it difficult to
distinguish one from the other. It's difficult to tell whether a production manager is directing,
developing, or interacting with one of his employees, or whether he's doing all these things
at once. Furthermore, managers frequently do multiple functions at the same time.

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What Are Planning, Goals, Mission And Vision?

 Planning – is the defining of goals for future organizational performance and

deciding on the task resources needed to attain them.
 Goals – are what the organization wants to achieve.
 Vision- is a dream, the organization wants to achieve.  Mission- is what the
business is doing.

What Are The Guidelines For Getting Goals?

Goals should be SMART.
S- Specific. To be specific, goals should be expressed in quantitative terms.
M- Measurable. The target is exact.
A- Achievable. Given increasing population, a stable economy, peace and order
situation and other environmental factors.
R- Realistic.
T- Time-based. “last year” and “this year”.

What Is The Purpose Of Planning?

1. Establishes coordinated effort- gives direction, helps the organization towards its
objectives or goals;
2. Helps the organization to look ahead to anticipate or expect changes, to address or
provide solutions to problems that may arise from changes or uncertainties;
3. Reduces duplications, overlapping and wasteful activities;
4. Sets standards for control
5. Serves as reference—planners refer to previous plans for guidance.

What Is Leading And Leadership?

Leading is the use of influence to motivate employees to achieve organizational
goals.
Leadership is the quality that inspires and motivates people beyond their normal
levels of performance.

Leaders come in different types such as:

SERVANT LEADER

INTERACTIVE LEADER

TRANSFORMATIONAL LEADER

CHARISMATIC LEADER

TRANSACTIONAL LEADER

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 1. Transactional leader- is the one who classifies subordinate’s role and task,
requirements, initiates strictures, provides rewards and displays consideration for
subordinates.
2. Charismatic leader- is a leader who has the ability to motivate subordinates to
transcend their expected performance.
3. Transformational leader- is a leader distinguished by a special ability to bring about
innovation.
4. Interactive leader- is a leader who is concerned with consensus building, is a open
and inclusive ad encourages participation.
5. Servant leader- is a leader who works to fulfil subordinates needs and goals as well
as to achieve the organizations larger mission.

Comparison Of Manager and Leader

Manager Leader

(1) Appointed (a) appointed or emerge within the

(2) Ability to influence is based on groups
the formal authority inherent in (b) can influence other to perform
their position. beyond the action by formal
authority

Assessment Task

Guide Questions

Group Activity

1.Identify the business that you want to put up.

a. Write the Mission and Vision of the Business
b. Draw an organizational chart for your business

References:

 Entrepreneurship By Cristina B. Banastao And Solita A. Frrias.

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