Ibm Lecture Notes

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Introduction To Business Management
Picking out of topics: (Paper total of 8 questions, answer 4) Total topics in Lecture: 16, choose 9 to focus
The Business Organisation (Page 1,2,3)
Business & Management (Page 4,5)
Evolution of Management Theory (Page 6,7,8,9)
Managers & Management * Focus More (Page 10,11,12)
Decision-Making in Business (Page 13)
Business Strategy (Page 14,15)
Organisation Structure (Page 16,17)
Organisation Culture (Page 18,19)

Topic 1: The Business Organisation:
What is an organisation?
An organisation is a social entity that provides the necessary structures to achieve specific aims. An entity that is both commercial and social, which provides the necessary structures to achieve the central objective of trades in goods and services. Non-business, Social organisations: NKF

Basic Components of an Organisation:
Operating component: people who actually undertake the work of producing the products or provide the services. Administrative component: managers and analysts.
Further analyse the work organisation in terms of five basic components: -Operational core: Direct performance (E.g.: repairing cars, treating patient) -Operational support: Closely related to the actual flow of organisation work (E.g.: storeokeeping) -Organisation support: Concerned with provision of services for the whole organisation (E.g.: Cafeteria) -Top Management: Concerned with broad objectives and policy, strategic decisions (E.g.: Directors) -Middle Management: Concerned with coordination and integration of activities. It is Link between operational core and top management.

Formal VS Informal Organisation:
The Formal Organisation:
A formal organisation is “the planned coordination of the activities of a number of people for the achievement of some common, explicit purpose or goal, through division of labour and function, and through a hierarchy of authority and responsibility. An organisation is a pattern of roles and blueprint for their coordination. A Formal organisation is:

Deliberately planned and created
Concerned with the coordination of the activities
Hierarchically Structured with stated objectives
Based on certain principles and tasks, and defined relationships of authority and responsibility. Functions:
Facilitates the accomplishment of goals of the organisation. Facilitates the coordination of various activities.
-Aids the establishment of logical authority relationships.
Permits the application of the concept of specialization and division of labour.

The Informal Organisation:
The informal organisation arises from the interactions of people working in the organisation. An Informal organisation is:
Flexible and loosely structured.
Relationships may be left undefined.
Membership is spontaneous and with varying degrees of involvement. Functions:
Provides social satisfaction needs (Sense of identity and belonging). Provides for additional channels of communication
Provides a means of motivation.
Provides a feeling of stability and security
Provides a means of highlighting deficiencies or weaknesses in the formal organisation. *Key differences between FORMAL & INFORMAL:
- The degree to which they are structured.
- Formal organisation structure are planned, rational whereas informal organisations are spontaneous and emotion. -Formal organisation are profitability or member satisfaction and influence by position & authority whereas informal organisations are more to service to society and influence by personality & power. COMPARING FORMAL & INFORMAL ORGANISATIONS:

Characteristic
Formal Organisation
Informal Organisation
1 STRUCTURE

Origin
Rationale
Characteristics
Planned
Rational
Stable
Spontaneous
Emotional
2 POSITION TERMINOLOGY
Job
Role
3 GOALS
Profitability or Member satisfaction
Service to society
4 INFLUENCE

Base
Type
Flow
Position
Authority
Top-down
Personality
Power
Bottom-up
5 CONTROL MECHANISMS
Threat of firing
Physical sanctions...
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