Principle of Business

• The functions of business are; Production, Marketing, Finance, Personnel, Research & Development.
• Production function = Make sure you have enough materials to produce goods & services
• Marketing function = promote the product, transporting products to customers, taking customers orders.
• Finance function = required to form a business and to fund its operations.
• Personnel function = required to provide employment
• Research & Development function = ensures that they keep abreast of what is happening.
• The functions of management are; Planning, Organizing, Directing, Controlling, Co-ordinating, Delegating, Motivating, Industrial relations.
• Planning = involves looking ahead; making decisions and formulating policy on intentions and objectives of the organization.
• Organizing = ensuring that workers can get on with their job by making sure that people, materials and machinery are available in the right place.
• Directing = giving instructions to workers so that they're clear as to how their work should be done.
• Controlling = supervising and checking the activities and performance of subordinates to ensure that instructions are being carried out properly
• Co-ordinating = directing and integrating the activities of the team under management's direct supervision.
• Delegating = involves assigning tasks or goals to subordinates whilst at the same time granting them necessary authority to carry out the tasks.
• Motivating = encouraging other members of the organization to carry out their tasks properly and effectively.
• Industrial relations = relationship between employees and employers.
• The management is responsible for customers, employees, the boss, and shareholders.
• The two types of groups are informal and formal
• A group depends on the leader, individuals and the objective of the group.
• The types of leadership are: Authoritarian, Participative, Laissez-faire, and Charismatic
• Authoritarian leadership has one main leader of the group and doesn't take advice.
• Participative leadership is when the leader takes advice
• Laissez-faire leadership allows those being lead to make the decisions
• Charismatic leadership is when a leader leads their group based on a usually strong personality.
• Teamwork is people working together in a group to achieve a common goal
• Teamwork is important in the workplace to ensure workers work in a pleasant environment and to achieve the company's goals quicker
• The levels of management are; Employees, Supervisory, Middle and Senior Management. (bottom to top)
• A chain of command is a pyramid that shows the lines of communication between the person in the supervisory position and their subordinates.
• A span of control is the number of subordinates a manager supervises or the effective limit to the number of others that a manager can supervise efficiently.
• Internal economies of scale occur because of various factors within the business, and these factors are related to its size. External scale refers to the benefits gained by all the businesses in a particular industry.