Organization & Management
Business Principles, Leadership, and Planning
In This Lesson
Management Functions (POLC)
What is Management?
The process of planning, organizing, leading, and controlling resources to achieve organizational goals efficiently and effectively.
1. Planning
Setting goals and deciding how to achieve them.
- Define objectives
- Develop strategies
- Create action plans
- Allocate resources
Types: Strategic, Tactical, Operational
2. Organizing
Arranging resources and tasks to achieve goals.
- Define roles and responsibilities
- Group activities (departmentalization)
- Establish authority relationships
- Coordinate efforts
3. Leading
Motivating and directing people toward goals.
- Communicate vision
- Motivate employees
- Build teams
- Resolve conflicts
4. Controlling
Monitoring performance and taking corrective action.
- Set performance standards
- Measure actual performance
- Compare to standards
- Take corrective action
Leadership Styles
Leadership vs. Management
Leadership: Inspiring, visioning, change
Management: Planning, organizing, controlling
Autocratic Leadership
Leader makes decisions alone without subordinate input.
Pros: Quick decisions, clear direction
Cons: Low morale, no creativity
Best for: Emergencies, inexperienced workers
Democratic Leadership
Leader involves team members in decision-making.
Pros: High morale, creativity, buy-in
Cons: Slower decisions, potential conflicts
Best for: Creative work, experienced teams
Laissez-Faire Leadership
Leader gives full freedom with minimal supervision.
Pros: Autonomy, empowerment
Cons: Lack of direction, accountability
Best for: Highly skilled, self-motivated experts
Transformational Leadership
Leader inspires extraordinary outcomes through vision.
- Idealized influence (role model)
- Inspirational motivation
- Intellectual stimulation
- Individualized consideration
Organizational Structure
Functional Structure
Groups employees by specialized functions.
Departments: Marketing, Finance, HR, Operations
Best for: Small to medium businesses
Divisional Structure
Groups by product, geography, or customer type.
- Product Division (Electronics, Appliances)
- Geographic Division (Asia, Europe)
- Customer Division (Retail, Enterprise)
Matrix Structure
Combines functional and divisional; dual reporting.
Challenge: Two bosses, potential confusion
Key Concepts
- Chain of Command: Line of authority from top to bottom
- Span of Control: Number of subordinates a manager supervises
- Centralization: Decision-making at top levels
- Decentralization: Decision-making distributed to lower levels
- Delegation: Assigning authority and responsibility
Business Planning
Levels of Planning
- Strategic: Long-term (3-5 years), top management, vision/mission
- Tactical: Medium-term (1-3 years), middle management, department goals
- Operational: Short-term (daily/weekly), supervisors, day-to-day tasks
SWOT Analysis
Strengths (Internal)
What we do well
Weaknesses (Internal)
Areas for improvement
Opportunities (External)
External chances for growth
Threats (External)
External challenges
SMART Goals
- S - Specific: Clear and well-defined
- M - Measurable: Quantifiable indicators
- A - Achievable: Realistic and attainable
- R - Relevant: Aligned with objectives
- T - Time-bound: Has a deadline
Business Plan Components
- Executive Summary
- Company Description
- Market Analysis
- Organization & Management
- Products/Services
- Marketing Strategy
- Financial Projections