Careers Development Training

Institute

Certificate in
Business Management
 Table of Content

 What is Management?
 Dynamic Business Environments
 The PESTLE framework
 SWOT Analysis
 Organization and Types of Businesses
 Human Resources Management
 Job Analysis
 SOP
 What is Marketing?
 Product Life Cycle (PLC)
 Sale Strategy
 Customer Service
 Supply Chain Management
 Corporate Social Responsibility (CSR)
What is Management? 1

Management
The Planning, Organizing, Leading and Controlling of human and other
resources to achieve organizational goals effectively and efficiently.

Tasks of Management
• Getting things done effectively and efficiently through and with other people.
• To increase the productivity.

Resources are organizational assets

• Human resources (people)
• Physical resources (Machinery, Premises, Facilities)
• Financial resources (Financial Capital)
Four Functions of Management 2

*Planning*
Choose appropriate
organizational goals and courses
of action to best achieve those
goals

*Controlling* *Leading*
Establish accurate measuring and Motivate, coordinate, and
monitoring systems to evaluate energize individuals and groups
how well the organization has to work together to achieve
achieve its goals organizational goal

*Organizing*
Establish task and authority
relationships that allow people to
work together to achieve goals
Planning 3

• Define goals
• Establish strategies for achieving
• Develop plans to integrate and coordinate activities

Setting goals and plans (how to achieve them)

Organizing
 Determine
• What tasks are to be done?
• Who is to do them?
• How tasks are to be grouped?
• Who reports to whom?
• Where decisions are to be made?
Arrange tasks and other resources to accomplish organization’s goals

Leading
• Motivate subordinates (lower position)
• Help resolve group conflicts
• Influence individuals or teams as they work
• Select the most effective communication channel
• Deal with employee behavior issues
Hire, train, motivate (lead) people
Controlling 4

• Monitor activities performance

• Compare actual performance with the set goals
• Evaluate activities performance whether things are going as planned
• Correct any disturbance to get work back on track and achieve the set goals
Ensure all activities are accomplished as planned

Effectiveness and Efficiency

Effectively
• Effective is high achievement of organizational goals.

Efficiently
• Efficient is minimum use of organizational resources to achieve
organizational goals.
Being a Manager

High Variety Fragmentation

Managerial Problems

Brevity
Management Skills 5

Conceptual Skills
• The ability to analyze and diagnose a situation and distinguish between cause
and effect.

Human Skills
• The ability to understand, alter, lead, and control the behavior of other
individuals and groups.

Technical Skills
• The specific knowledge and techniques required to perform an organizational
role.
Level of Management 6

Lowest level of Management (First-Line Mangers)

• Responsible for day-to-day operations. Supervise people performing activities
required to make the goods or services.
• They are - Supervisor, department manager, office manager, district manager.

Middle level of Management (Middle Managers)

• Supervise first-line managers. Are responsible to find the best way to use
departmental resources to achieve goals.
• They are – regional manager, store manager, division manager.

Upper level of Management (Top Managers)

• Establish organizational plans, goals and monitor middle managers.
Responsible for making organization wide decisions.
• They are – president, vice president, managing director, CEO, COO.

Levels of Management

Top Managers

Middle Managers

First-Line Managers
Scientific Management 7

 F W Taylor
• Father of Scientific Management
• Best way to maximize job performance

 Frank and Lillian Gilbreth

• Work efficiency (motion study)

 Henry Gantt
• Work scheduling

Administrative Theory
 Henri Fayol
• Father of Modern Management/Administrative management.
• Principles and Function of Management.

 Chester Barnard
• Authority and power in organizations

 Mary Parker
• Worker participation
 Behavioral Theory (Human Relation Theory) 8

 Elton Mayo
• Hawthome Studies
• Focus on People to determine the best way to manage in all organization

 Abrham Maslow
• Hierarchy of needs theory
• Basic needs
• Social needs
• Individual needs

Fayol’s Management Vs Today Management

• Fayol – Management is planning, organizing, commanding, coordinating,
controlling.
• Now – planning, organizing, leading, controlling.
(use the word leading/ directing)
Types of Business 9

 Sole Trader
 Partnership
 Private Company
 Public Company

Sole Trader
• A business owned and operated by one person. The owner is responsible for
all operations of the business and assumes all the risk.

Partnership
• A form of business organization in which two or more people own and operate
the business.

Private and Public Company

• A private company is a closely held one and requires at least two or more
persons, for its formation.

• A public company is owned and traded publicly. It requires 7 or more

persons for its set up.
Dynamic Business Environments 10
Microeconomics and Macroeconomics 11

• Microeconomic is the study of economic behavior of individual aspects of an

economy, e.g. people, firms or households. It studies the interrelationships
between these aspects in determining patterns of production and distribution
of goods and services.
• Macroeconomic is the study of economic aggregates (grand totals). An
example of this would be the overall level of output, prices and employment in
the economy.

Economic measures
• Gross national product (GNP)
• Gross domestic product (GDP)
• Balance of payments (BOP)
• Low unemployment
• Low inflation
Sources of information 12

• Governments – In many countries, Central Government have the role of

collecting and publishing statistics related to the economy, population and
society.
• News sources – A news source is individual, publication, document or record
that seeks to provide timely information.
• Industry experts – Industry experts are likely to have worked or be involved
in that particular area.
• Trade associations – An organization founded and funded by organizations
from within a specific sector.

Business Competition
Perfect Competition – The model of perfect competition is formed on four
assumptions.
1. Firms being ‘price takers’
2. Complete freedom of entry
3. Identical products
4. Perfect market knowledge
Monopoly – A pure monopoly is a market structure where there is only one firm
in an industry. This means that there is no competition from within the industry.
Oligopoly – An oligopoly is a market structure where there are several firms to
put up barriers to restrict and prevent new firms entering the market.
Monopolistic competition – This is a market structure, where similarly to
perfect competition, there are many firms and freedom of entry into the industry.
However, in monopolistic competition each firm produces a different product
and therefore has some control over price.
The PESTLE framework 13

• Political
• Economic
• Social
• Technological
• Legal

• Environment
PESTLE Analysis
 PESTLE framework is one which organizations or personally can use to gain a
greater understanding of the external environment and to therefore increase its
capability to strategically plan and react to accommodate change.
Political factors 14

• Political stability
• Political beliefs of a government
• Political involvement in wars, terrorism and conflicts
• Relationship with others countries

Economic factors
• The level of economic recession or relative prosperty
• Unemployment
• Inflation
• Economic growth
• Taxation
• Exchange rate/ Imports and Exports

Social factors
• Demographic Trends
• Lifestyle Trends
• Age distribution
• Major events

Technological factors
• Technological innovation
• The increasing range of technological communication channels

Legal factors
• Workers’ rights
• Consumer protection
• Discrimination law
• Equal opportunities
• Tax regulations

Environmental factors
• Environmental regulations
• Sustainability
 SWOT Analysis 15

What is SWOT analysis?

• SWOT analysis is the examination of your situation by looking at Strengths,
Weaknesses, Opportunities and Threats. A SWOT analysis is an incredibly
simple, yet powerful tool to help you develop your business strategy. SWOT
analysis is a simple but powerful framework that helps you assess your
strengths, weaknesses, opportunities, and threats.
Personal SWOT Analysis 16

Activity
Activity
Activity
Activity
Activity
Activity
Activity
Activity
Organization and Types of Businesses 17

What is an organization?
• A formal and coordinated group of people who function to achieve particular
goals. And these goals cannot be achieved by individuals acting alone.

Organizational Structure
• Formal - the network of information systems in an
enterprise, the official channel through which information passes.
• Informal - cannot be represented on an organization chart.
Formal Communication Channels 18

• Downward information flow. (From superior to the subordinate)

• Upward information flow. (From subordinate to the superior)
• Horizontal information flow. (From one employee to another)

Informal Communication Channels

• Informal networks are faster, richer, and often more accurate, and
communication is more likely to be face-to-face.
• Informal networks are unofficial channels through which information passes
in an organization.
Human Resources Management 19

Human resource management can be defined as the process of recruiting and

mobilizing human resources in such a way that they contribute to achieving the
goals of the organization. HRM deals with the human dimension in management,
which considers the recruitment and selection, development, motivation and
maintenance of human resources in an organization.

Important of HRM
Human Resource Management is important to all Managers despite their various
functions because of the following reasons
1. Hire the right person for the job
2. Low attrition rate
3. Ensure people do their best
4. Time saved is not conducting useless interview
5. Safety law are not ignored
6. Equity towards employee in relation to salary etc.
7. Effective Training
8. Avoid unfair labor practices
HRM Functions 20

 Human Resources Planning

Acquiring and Engaging
 Recruitment & Selection

 Performance Management Appropriate for the job and

 Training & Development concerned developing

 Compensation & Benefits Maintenance and Utilization

 Industrial Relation

-Human Resources Planning

Human resource planning (HRP) is the continuous process of systematic
planning to achieve optimum use of an organization's most valuable asset—
quality employees. Human Resources Planning ensures the best fit between
employees and jobs while avoiding manpower shortages or surpluses.

-Recruitment & Selection

Recruitment
Recruitment is the process of finding out candidates, who are engaged to apply.
Selection
Selection is the process of choosing some out of many candidates. Selection
follows to recruitment.
 21

-Performance Management
Performance management can reward people by recognize through feedback, the
provision of opportunities to achieve, the scope to develop skills, and guidance
on Career Paths.

-Training & Development

Training is a short term process utilizing a systematic and organized procedure
by which non managerial personnel acquire technical knowledge and skills for a
definite purpose. Development focuses on broad knowledge and insights that
may be required for adaptation to environment demands in the future.

-Compensation & Benefits

Compensation and benefits refer to the benefits a firm provides to its employees
in exchange for their labor. Compensation and benefits are thus a key part of
Human Resource Management. Compensation and benefits have long been key
drivers in recruiting, attracting and retaining employees.

-Industrial Relation
Industrial relation refers to a relationship between the employers and employees.
It also refers to a field of study that examines these types of relationships,
especially groups of workers in unions.
Job Analysis 22

Human resource management in organizations virtually always requires an in-

depth understanding of the work that people do in that organization. The process
by which this understanding is developed is a job analysis; a job description is
the documentation of the results of that analysis. While these two terms are often
used interchangeably, we strongly recommend against such usage, as job analysis
is a process and a job description is a product of that process. Simply put, a job
analysis is a systematic process for collecting and analyzing information about a
job.

Methods of Job Analysis

Five different methods of collecting job analysis data. They are (1) self-reports;
(2) direct observations; (3) interviews; (4) document reviews: and (5)
questionnaires and surveys.
Questionnaires
Structured or unstructured questionnaires may be used to obtain job analysis 23
information. Questionnaires can be a quick, efficient way of gathering
information from a large number of employees. But, developing and testing a
questionnaire can be expensive and time consuming.

Observation
Direct observations are useful when jobs consist of mainly observable physical
activity as opposed to mental activity. Managers often use direct observation and
interviewing together.

Interviews
Using an interview is simple, quick, and more comprehensive because the
interviewer can unearth activities that may never appear in written form. The
main problem is distortion, which may arise from the jobholder’s need to impress
the perceptions of others.

Employee Recording
The employee records every activity he/she engages in, in a diary or work log
along with the amount of time to perform each activity to produce a complete
picture of the job.

Combination of Methods
Of all the traditional approaches to job analysis, a combination method is
probably the best because it minimizes the disadvantages and maximizes the
advantages of any one approach used by itself. Of the possible combination
approaches, the most common are (1) Questionnaires and interviews, and (2)
Questionnaires, interviews, and observations.
Standard Operation Procedure 24

A Standard Operating Procedure

(SOP) is a set of written
instructions that describes the
step-by-step process that must be
followed routinely for the
performance of designated
operations or in designated
situations. SOPs aim to achieve
efficiency, quality output, and
uniformity of performance, while
reducing miscommunication and
failure to comply with industry
regulations, provincial laws, or
business standards.
What is Marketing? 25

Marketing refers to activities a company undertakes to promote the buying or

selling of a product or service. Marketing includes advertising, selling, and
delivering products to consumers or other businesses.

Marketing 8P Mix
The product marketing mix comprises the 4Ps of product, price, place &
promotion.

The service marketing mix comprises the 4Ps of physical evidence, processes,
people and planet.
 26

Marketing Process
-Create Value
Product Management: ensuring that product performance meets or exceeds
customer expectations.
-Communication Value
Brand management: values of the product, company and that of the customers.
-Deliver Value
Customer Management: creating and managing lasting relationships with
customers.
-Value
Ensuring benefits far outweigh costs & balancing it for all stakeholders.
-Profit
Obtained in a socially, ethically and environmentally responsible manner.
-Target Market
Matching the chosen target market with the company’s offerings and serving
them exceptionally well.
6 – Step Marketing Plan 27
The four Marketing Management Philosophies 28

Orientation Focus is on….

Production Internal capabilities of the firm

Sales Aggressive sales techniques and belief high sales result in high profits

Market Satisfying customer needs and wants while meeting objectives

Societal Satisfying customer needs and wants while enhancing individual and

societal well - being

Product Life Cycle (PLC) 29
Sale Strategy 30

Old Product Old Customer

Promotion

New Product New Customer

B2B & B2C Strategy
31

Raw Material
Business to Business (B2B)

Manufacture

Distributor

Business to Customer (B2C)

Retailer

B2B can save at least 6

times more than B2C
Customer
Customer Service 32

 Smile Ever

 Eye Contact

 Respect to All

 Value to Guest

 Interest Showing

 Creative Service

 End with “Thanks” Customer Service?

Target Customers 33

 Income
 Age
 Sex
 Culture and Religion
 Geographical Location
 Market Share
 Demand

-5 kinds of Customers
• Suspicious (Polite)
• Talkative (Close Type Question)
• Angry (Listen)
• Know it All (Praise)
• Indecisive (instruct)
Supply Chain Management 34

A Supply chain consists of all parties involved directly or indirectly, in

fulfilling a customer request.

Key Business Process in SCM

Identify the six key processes of excellent supply chain management and
discuss how each of these processes impacts the end customer.
1. Customer Relationship Management
2. Customer Service Management
3. Demand Management
4. Order Fulfillment
5. Manufacturing Flow Management
6. Supplier Relation Management
Five Functions of Supply Chain Management 35

The five functions of supply chain management include the following:

1. Purchasing
The first function of supply chain management is purchasing. In the
manufacturing process, raw materials are required to produce goods and
products. It is important that these materials are procured and delivered
on time so that production can begin. For this to occur, coordination
with suppliers and delivery companies will be required to avoid any
potential delays.

2. Operations
Demand planning and forecasting are usually required before materials can
be procured, as the demand market will dictate how many units to be
produced and how much material is required for production. This function
is important in supply chain management as organizations must accurately
forecast demand to avoid having too much or too little inventory that will
lead to losses in revenue. Therefore, demand planning and forecasting must
be tied in with inventory management, production, and shipping to avoid
such mistakes.

3. Logistics
Logistics is the part of supply chain management that coordinates all aspects
of planning, purchasing, production, warehousing, and transportation so that
the products will reach the end-consumer without any hindrances. It is helpful
to have adequate communication between multiple departments so that
products can be shipped to customers quickly and at the lowest cost.

4. Resource Management
Production consumes raw materials, technology, time, and labor. Resource
management ensures that the right resources are allocated to the right activities
in an optimized manner.
5. Information Workflow 36
Information sharing and distribution is what keeps all of the other functions of
supply chain management on track. If the information workflow and
communication are poor, it could break apart the entire chain. Many
disruptions that arise in supply chains can be prevented by increased visibility
and communication. Having a consistent system that is used by all
departments will ensure that everyone is working with the same set of data and
will prevent miscommunications and time spent updating everyone on new
developments.
Corporate Social Responsibility (CSR) 37

Corporate social responsibility (CSR) is a company-driven business model that

seeks to maximize its positive impact on society and the environment.