What does Successful Business Management Look Like?
Organisation: structured group of people working together to achieve common goals
Three Key elements
o Human interaction
o Goal directed activities
Sample Organisational Chart
Shows lines of formal authority-who’s in charge
o Shows who is responsible for whom Departmentalization
The process of dividing work activities into units w/in the organisation
Product departmentalization: Organized based on the goods and services a company offers. E.g
car firms may organize based of different their different models
Geographical departmentalization: Organized by geographical regions within a country or, for a
multinational firm, by region throughout the world.
Customer departmentalization: Organized by the different types of customers the organization
serves. E.g IT company may have organize themselves based on military and civilian customers
Functional departmentalization: Organized by business functions such as finance, marketing,
human resources, and production. Traditional way of organising
Process departmentalization: Organized by work processes necessary to complete production
of goods or services. i.e what part of the value chain that you may be in
Different Forms of Departmentalisation
Delegating Work Assignment
Delegation: The managerial process assigning work to employees. Person delegates has the
accountability to and the employee is responsible to the delegator
Providing employees w/ the responsibility and necessary authority for competing tasks
Employees have accountability, or responsibility, for their actions and decisions
Span of management is the number of employees a supervisor manages i.e. how many employees you
manage. Delayering has led to end of middle management and span of control has increased
Centralization means that decision-making is retained at the top of the management hierarchy.
Decentralization means that decision-making is shifted to the lower levels. Many firms believe it
enhances their flexibility and responsiveness to customer needs. Types of Organizational Structures
Oldest and simplest form; direct flow of authority from CEO to employees.
Chain of command indicates who directs which activities and who reports to whom.
Combines line departments and staff departments.
Line departments participate directly in decisions that affect the core operations of the
Staff departments lend specialized technical
Don’t necessarily have to power to delegate in staff relationships
Authority and responsibility are in the hands of a group of individuals.
Often part of a line-and-staff structure.
Often develop new products.
Tend to act slowly and conservatively.
Often make decisions by compromising conflicting interests rather than choosing best
Employee may have to report to two individuals w/ differing opinions which may lead to later
Project management structure that links employees from different parts of the organization to
work together on specific projects.
Employees report to both a line manager and a project manager.
Flexibility in adapting to changes.
Focus on major problems or products.
Outlet for employees’ creativity and initiative.
Integrating skills of many specialists into a coordinated team. Team members’ permanent functional managers must adjust the employees’ regular workloads.
May be hard to free up time which may lead to project taking longer than expected
Starting Your Own Business: The Entrepreneurship Alternative
What is Entrepreneurship?
Entrepreneur: A person who seeks a profitable opportunity and takes the necessary risks to set
up and operate a business
Differ from many small-business owners in their strong desire to make their business grow
Differ from managers through their overriding responsibility to use the resources of the
organization to accomplish their goals
Willing to take risks
An entrepreneur is willing to use their resources and take risks to accomplish their goals
Behaviour = function of personality and environment
Categories of Entrepreneurs
Classic entrepreneurs: person who builds a business from scratch and sticks w/ it
Serial entrepreneurs: Entrepreneurs likes starting up and business and making sure its stable
before moving on Social entrepreneurs: this type of entrepreneur likes to start up a business/project w/ an aim to
do a good thing
Reasons to Choose Entrepreneurship as a Career Path
In an average month, Canadians start approximately 23,000 new businesses.
Recent decades have shown a heightened interest in entrepreneurial careers.
People choose entrepreneurship for many reasons
o Dissatisfaction with traditional work
o Their ideas fulfill customer needs
o Freedom to make own decisions
Reasons to Choose Entrepreneurship as a career Path
Being Your Own Boss
o Self-management is the motivation that drives many entrepreneurs.
o Entrepreneurs are wealth creators and idea generators.
o Over the past ten years, large companies have eliminated more jobs than they have
o Not necessarily that secure because most businesses collapse in their first year
Quality of Life
o Starting a business gives the founder some choice over when, where, and how to work.
The Environment of Entrepreneurs
The rapid globalization of business has created many opportunities for entrepreneurs.
Most of the fastest-growing small Canadian companies have international sales (most to the
Entrepreneurship is growing worldwide; levels vary by country. Education
Students at many colleges and universities can take a major in entrepreneurship. Dozens
of other colleges and universities offer an emphasis in entrepreneurship and hundreds
more offer one or two courses in how to start a business.
Many schools offer internships with start-ups.
Demographic & Economic Trends
Two groups are most likely to start their own businesses
o Immigrants to North America
o People between the ages of 55 and 64 (have access to retirement savings/home
equity; want to keep working after retirement)
Flexible, adaptable entrepreneurs will have most success
Technology has given entrepreneurs tools that help them compete.
Entrepreneurs have used information technology to revolutionize industries.
Characteristics of Entrepreneurs
Vision: an overall idea for how to make business ideas successful
High energy level: a willingness to work hard
Need to achieve: want to excel and achieve difficult goals
Self-confidence: fearlessness in the face of difficult odds
Tolerance for failure: not easily discouraged
Creativity: devise innovative ways to overcome difficult problems and situations; have new
ideas for good and services
Tolerance for ambiguity: take business uncertainties in stride
Internal locus of control: belief in control of own fates; specific concept; how we view ourselves
in terms of our environment; i.e. when something bad happens, do you environment and take