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• Management


  Co-ordinated activities (forecasting, planning, leading, controlling) to direct and control an organisation towards a goal
• Management (as defined by Mary Parker Follet)


  The art of getting things done through the efforts of other people
• Managerial work is the lifeblood of most organizations because it serves to co-ordinate and motivate individuals to do achieve results
• Every business/organization that seek to improve must be concerned with the knowledge and application of management theories
• Organization


  A group of people with a common purpose who work together to achieve shared goals, it is also described as the framework of management i.e without the organization they wouldn't be a need for management
• Types of organizations


  • Formal - Work groups consciously designed by management to maximize efficiency and achieve organizational goals
  • Informal - Network of relationships between members of an organization formed on their own accord(choice) based on common interests and friendships
• Types of business organizations

  • Business - Exists to provide goods and services for profit
  • Public Service/Charitable
• Sole Trader


  The simplest form of business, one person in business on his own (man and wife sometimes), the business entity which legally has no separate existence from its owner, owners fully liable for any business debts, minimal legal requirements to set up, ownership and control are combined, profits subject to personal income tax instead of corporate tax, no formal accounts published
• Advantages of Sole Trader

  • Easy to start
  • Total control to run company according to owners wishes
  • Profit belongs to owner
  • Various business expenses are allowable against income tax
  • No public disclosure of accounts (apart from tax authorities)
• Disadvantages of Sole Trader

  • Sole trader fully liable for debts
  • Owners fully responsible for all facets of the business (sales, marketing, finance, HR, etc.)
• Partnership


  More than one owner, profit and losses shared between owners, minimal legal requirements to set up but advisable to have a legal partnership agreement drawn by a lawyer, agreement can stipulate rights and obligation of each partner, changes in partnership in case of death or retirement, owners responsible for liabilities, common with Professionals (doctors, accountants and lawyers)
• Advantages of Partnership


  • Easy to start
  • Sharing of partners knowledge and skills
  • Sharing of management of business
  • No obligations to publish accounts
  • Sharing of profits (and losses) of business
  • More sources of capital
  • Greater borrowing capacity
  • High Caliber employees can be made partners
  • Income can be split for tax savings
• Disadvantages of Partnership


  • Each Partner liable for debts of partnership even if caused by other partners
  • Risk of friction and disputes can easily break up partnership
  • Death or bankruptcy of 1 partner dissolves the partnership unless otherwise provided for in a partnership agreement
  • Actions of other partners affect the whole partnership
  • Can't easily change partners e.g. firing and hiring
• Cooperative


  Business organization that is owned, operated and controlled by a group of individuals (members) who also use the services of the cooperative for their mutual benefit, it's a non-profit e.g. chamaas in Kenya and golf clubs or social societies
• Advantages of Cooperatives


  • Provides opportunity for pooling of capital
  • It's a legal entity on its own (liability not extended to personal assets of members apart from what is invested)
  • Improves bargaining power e.g. in purchases
  • Encourages active corporation between all sections of workforce due to mutual benefit to be incurred
  • Enables decisions to be made democratically (voting)
  • Provided limited liability (if registered)
• Disadvantages of Cooperatives


  • Less likelihood of a level profitability and growth than in a ltd company
  • Relationships can deteriorate due to frictions among members
  • Decision making can be lengthy
  • Less professionally run
• Limited Company


  When a limited company is formed it is "incorporated" i.e. given a separate body or entity separate from its members, the incorporated company has rights and can sue or be sued, own properties and more, liabilities limited to company and not to personal shareholders, they can only lose their investment in the company, this encourages outsiders and wealthy people to invest in companies without risking their personal wealth beyond the invested amounts, limited companies must have at least 2 members and 1 director, before incorporation limited companies require: the Memorandum of association - stipulates the purpose of the company, Articles of Association - Regulates the internal affairs of the company
• Types of Limited Companies

  • Public Limited Companies (PLCs) - Shares available to general public for purchasing
  • Private Limited Companies - Shares not available to public but can be transferred among the private shareholders, the name of the Private company must end with the word 'limited'
• Advantages of Limited Companies


  • In the event of failure, shareholders are protected up to nominal value of their shareholding
  • The separate legal person of the company exists independently of the members
  • Shares in (plc) are easily transferable
  • Easier to raise capital
  • More professionally run
  • Death of a shareholder does not spell doom to the company
• Disadvantages of Limited Companies

  • Might face difficulty raising money from banks because liability is limited to share holding
  • More legal procedures in setting up
  • Expensive to run as they Requires professionals to run it to keep up with statutory requirements and shareholders expectations
• Company Directors


  The directors of a company are by law its agent and are accountable for the conduct of the company's affairs, they must abide by the terms of the company's memorandum and articles of association, they are appointed by shareholders and must act on decisions made by shareholders, every directory has a fiduciary duty to act in the best interest of the company, employees and other stake holders, directors might be Executive directors - normally full time employees with operational and strategic responsibilities, None-executive directors - Usually work part-time and can sit on many boards
• Chief Executive Officer (CEO)


  The principal director is the Chairman of the board followed by a Chief Executive Officer (sometimes both roles are held by the same person), the CEO is responsible for: Implementing policies and strategy, Building and motivating senior managers, Ensuring proper running of the company
• Triple Bottom Line


  Traditionally companies had a view of just one purpose: To maximize profits and Shareholders wealth, Recently companies have expanded needs to not only care for shareholders but also for the stakeholders (those affected by the company's operations), stakeholders include: Shareholders, Employees, Customers, Suppliers, The environment, The general society, as a result of this new approach, companies' effectiveness and measure of success have evolved from just profit making as the only bottom line to include: Economic Bottom line - Financial Well being
• Stakeholders


  • Directors - normally full time employees with operational and strategic responsibilities
  • None-executive directors - Usually work part-time and can sit on many boards
• Company Directors


  • The principal director is the Chairman of the board followed by a Chief Executive Officer (sometimes both roles are held by the same person)
  • The CEO is responsible for: Implementing policies and strategy, Building and motivating senior managers, Ensuring proper running of the company
• Limited companies


  Business organizations
• Triple bottom line


  • Traditionally companies had a view of just one purpose: To maximize profits and Shareholders wealth
  • Recently companies have expanded needs to not only care for shareholders but also for the stakeholders (those affected by the company's operations)
  • Stakeholders include: Shareholders, Employees, Customers, Suppliers, The environment, The general society
  • As a result of this new approach, Companies' effectiveness and measure of success have evolved from just profit making as the only bottom line to include: Economic Bottom line - Financial Well being, Environmental performance - Impact and influence of the company activities on the environment, Social performance - Impact and influence of the company in improving the general society
• Corporate Governance


  • The system by which companies are directed and controlled
  • The purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver long-term success for the company
  • A governance framework - describes whom the organization is there to serve, the purpose of the organization and the priorities of the organization
  • A good corporate governance code should include: Leadership - every company should be headed by an effective board which is collectively responsible for the long-term success of the company, Accountability - The board is responsible for determining the nature and extent of the significant risks it is willing to take in achieving its strategic objectives, Remuneration - Formal and transparent procedures on executive remuneration, Shareholders relations - use of AGM and other methods to communicate and encourage shareholders participation
• Corporate culture


  • Shared way of thinking and behaving (uniformity)
  • Developed from Practices - accepted method of doing things
  • A set of values, beliefs, goals, norms, rituals and assumptions that members of an organization share
  • Learned by new recruits, and Transmitted from one generation of workers to the next
  • Becomes established when a shared understanding achieves a dominance in the collective thinking of the members of the organization
  • Can be used as a way to unify employees in an organization and bring a measure of self-regulation to employees
  • Self-regulation can reduce costs by reducing supervision and bureaucracies
• Factors that can form/affect an organizations culture

  • Mission statement
  • Policy statement
  • Symbols
  • Heroes
  • Rituals
  • Values
• Mission statement


  A statement of the overriding direction and purpose of an organization
• Strathmore Mission statement


  • "To provide all round quality education in an atmosphere of freedom and responsibility excellence in teaching, research and scholarship, ethical and social development and service to the society"
• Johann Wolfgang von Goethe: 'It is easier to perceive error than to find truth, for the former lies on the surface and is easily seen, while the latter lies in the depth, where few are willing to search for it.'
• Faith and Reason


  A reasoned faith or Theology
• Clan Culture


  Friendly working environment, people have a lot in common, similar to a large family, leaders/executives are seen as mentors or father figures, organization is held together by loyalty and tradition, great involvement, emphasizes long-term Human Resource development and bonds colleagues by morals, success is defined within the framework of addressing the needs of the clients and caring for the people, promotes teamwork, participation, and consensus
• Fr. Jude Karuhanga | [e-mail]
• Scheme


  • Nature of theology
  • Human reason
  • Divine Revelation
  • The problem of the existence of God
  • Science and religion
  • Sacred Scripture and Tradition
  • The Bible
• Clan Culture


  • Leader Type: facilitator, mentor, team builder
  • Value Drivers: Commitment, communication, development
  • Theory of Effectiveness: Human Resource development and participation are effective
  • Quality Improvement Strategy: Empowerment, team building, employee involvement, Human Resource development, open communication
• Adhocracy Culture


  Dynamic and creative working environment, employees take risks, leaders are seen as innovators and risk takers, experiments and innovation are the bonding materials within the organization, prominence is emphasized, long-term goal is to grow and create new resources, availability of new products or services is seen as success, promotes individual initiative and freedom
• Saint John Paul II, Fides et ratio, 29: 'The thirst for truth is so rooted in the human heart that to be obliged to ignore it would cast our existence into jeopardy. Everyday life shows well enough how each one of us is preoccupied by the pressure of a few fundamental questions and how in the soul of each of us there is at least an outline of the answers. One reason why the truth of these answers convinces is that they are no different in substance from the answers to which many others have come. To be sure, not every truth to which we come has the same value. But the sum of the results achieved confirms that in principle the human being can arrive at the truth.'