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Lecturer: Hove Stanley

082 ± 476 - 2846
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ourse Overview
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¢ Ô e business world and business

management
¢ Entrepreneurs ip
¢ Ô e establis ment of a business
¢ Ô e business environment
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¢ ^eneral management
¢ Ô e basic elements of planning
¢ Organising management activities
¢ Leaders ip: leading people in
organisation
¢ Human resource requirements and
developing effectiveness in HR
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¢ ›otivating and managing uman

resources
¢ Ô e legal environment and uman
resources
¢ ontrolling t e management
process
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¢ Ô e marketing process
¢ Ô e marketing instruments
¢ Ô e integrated marketing strategy
¢ Public relations
¢ Ô e financial function and financial
management
¢ Asset management: t e investment
decision
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¢ èinancing decisions
¢ Ô e operations management
function
¢ Operations management: activities,
tec niques and met ods
¢ Purc asing and supply management
¢ Sourcing activities

 






 

¢ ›anagement c allenges

 

 

¢ ïntroduction to Business
›anagement , editors ronje; Du
Ôoit; ›arais and ›otlatla. 6t
Edition, Oxford University Press
2003
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¢ Business ›anagement , second

edition , editors; S ›arx , D Van
Rooyen , JK Bosc and HJJ
Reynders. J L van Sc aik Publis ers
1998
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Ô e Business World And

Business ›anagement
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¢ Ô e role of business in society

¢ Needs and need satisfaction
¢ Ô e main economic systems
¢ Ô e need satisfying institutions of
t e free market
¢ Ô e nature of business
management
¢ Ô e development of business
management
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¢ Ôransformation of resources into
products and services
¢ ›eet t e needs of t e people
¢ Business activity involves uman
activities. People manage activity
¢ Business activity involve
production-
manufacturing,retailing,mining and
services
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¢ Business produce products and

services for money
¢ Business involve profit ± t e reward
for meeting t e needs of t e people
and means for an organisation to
pay for resources
¢ Ô e prevailing c aracteristic of t e
business world is called t e market
economy
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¢ Ô e market economy compromise small

and large business organisation
¢ Needs in a country determine t e
complexity of its business environment
¢ Business creates wealt . Wealt results in
a country¶s economic growt
¢ Ô e businessperson or entrepreneur is at
t e eart of t e business world.
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¢ Society as certain expectation

toward business
¢ ontrol is t roug regulations and
legislation
¢ Some examples ± competition
policy, employment equity , skills
development act and black
economic empowerment legislation
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¢ Social responsibility
¢ Business et ics ± exploitation of
workers and consumers
¢ Affirmative action
¢ Environmental damage
¢ onsumerism
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¢ A need may ave p ysical ,

psyc ological or social origin. All
needs require satisfaction
¢ According to Abra am H. ›aslow
uman needs range in a definite
order from t e most essential for
survival to t e least necessary
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Unlimited needs Limited resources

¢ Self ± realisation ¢ Natural resources

¢ Esteem needs ¢ Human resources

¢ Social needs ¢ apital resources

¢ Security needs ¢ Entrepreneurs ip/

¢ P ysiological management
needs
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¢ Resources are production factors
¢ Natural resources can not be
increased ± land , minerals , forests
and water
¢ Human resources ± labour and
related skills
¢ apital ± buildings , mac inery ,
computers etc.
¢ Entrepreneurs ip ±risk takers.
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¢ ommunity decides w ic
institutions s ould produce and
distribute products and services
¢ Ô e community determines t roug
political process t e economic
system in w ic necessary need
satisfying institutions are
establis ed
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¢ Ô e free market economy ± most

products and services are supplied
by private organisations seeking
profit
¢ ommand economy ± communism,
t e state owns and control factors
of production
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¢ Socialism ± compromise between

pure market and pure command.
State controls t e principal industry.
¢ Socialism ± strategic resources
belong to every citizen. Ô e rest of
t e business and consumers
operate wit in free market
environment
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¢ Private owners ip
¢ èreedom of c oice
¢ èree competition
¢ Profit and reward according to
ability
¢ ›anagement environment ± private
business
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¢ èree to c oose career

¢ èree c oice of job , union and strike
¢ onsumer freedom and c oice
¢ Economic freedom and private
initiative
¢ Unstable environment- cyclical
flactuations
   

¢ State owns and controls all

industries and agriculture
¢ No competition
¢ Profit not allowed
¢ ›anagement are party members
¢ Limited c oice of work
¢ Limited c oice of products
   


¢ State can control / concentrate

resources towards particular ends
¢ Low productivity & standard of
living
¢ Planning difficult or impossible
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¢ Basic industries owned by state

¢ èreedom of c oice
¢ Limited competition
¢ Profit motive recognised
¢ Decisions restricted to government
policy in state ± owned
organisations
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¢ èree to c oose job and employer

¢ Limited rig t to strike in state
enterprises
¢ onsumers ave freedom of c oice
except on state products
¢ Possibility of full employment
¢ State stabilises economic
fluctuations
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¢ Ô ere is little incentives in state

organisations
¢ Unproductive state organisations
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¢ Business organisations ± mobilise

t e resources in a country at t e
risk of a loss and in seeking a profit
¢ Business organisations refer and
mean private enterprises
¢ ^overnment orgnisations ±
protection and creation of collective
non-profit seeking facilities and
services ; education , ealt etc.
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¢ ^overnment organisations like

education and ealt are need
satisfying organisations t at operate
wit out a profit motive
¢ ›anagement of government
organisations fall under t e subject
of public administration an
independent science
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¢ Ô e state may control and own

business organisations in t e form
of public corporation i.e.. Eskom,
Ôransnet and Ôelkom
¢ Non ± profit seeking organisations
provide seek a surplus of income
over expenditure
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¢ Economics as a social science

studies ow umans and society
exercise c oices concerning
different ways of using t eir scarce
resources for products and services
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¢ Business management as an applied

science is concerned wit t e study
of t ose institutions in a particular
economic system t at satisfies t e
needs of a community
¢ Economics studies t e entire
economic system of a country w ile
business management look at t e
individual organisation
 
 





 

¢ Obtain t e ig est possible output (

products and services) at t e least
possible input ( lowest cost)
¢ Examine factors , met ods and
principles t at enable a business
organisation to maximise its profits
and ac ieve its objectives
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¢ ›iddle Ages ± AD 1000 subsistence

economies feudal and manorial
system
¢ Renaissance ± birt of
mercantilism; simple urban
industries , territorial specialisation
and t e development of banking
and book-keeping
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¢ Early capitalism followed t e

renaissance ± Adam Smit and t e
growt of cities ± t e industrial
revolution
¢ 19t entury saw t e appearance of
t e company
¢ Ô e demand for professional
management broug t business
management into being
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¢ 1900 emp asis on production

management ± resulting in
overproduction
¢ 1930s emp asis on sales
management in an attempt to get
rid of t e excess
¢ 1950s emp asis on t e marketing
concept
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¢ 1970s & 1980s focused on strategic

management
¢ 1990s globalisation of business
management
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¢ Scientific sc ool
¢ lassical sc ool
¢ Human relations sc ool
¢ ontemporaray management
t inking
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¢ Business management is a young

applied science t at sets out to
study t e ways in w ic a business
can ac ieve its prime objective ,
w ic is to make a profit.
Successful management is often
regarded as an art as well as a
science.
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¢ Ant ropology- culture , be aviour

and diversity
¢ Economics ± environment , markets
location etc.
¢ Engineering ± product development
factory lay out and employee safety
¢ Law- formation of a business ,
employment conditions and contract
development
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¢ omputer science ± information

management , e-marketing etc.
¢ Accounting ± control systems ,
budgets , cost analysis etc.
¢ Psyc ology ± leaders ip ,
negotiation communication etc.
¢ Sociology ± organisational
be aviour and et ics
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¢ ›at ematics ± decision models ,

planning models , market measure,
financial models , uman resource
models etc.
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¢ ^eneral management
¢ ›arketing
¢ Public relations
¢ èinancial management
¢ Production/ Operational
¢ Purc asing