TABLE OF CONTENTS TOPICPAGES 1. 1 Variables in the microenvironment2 1. 2 Ways to departmentalize the business2-3 1. 3 Management functions3-4 2. 1 Operations functions5 2. 2 Qualities of leaders5 2. 3 Charismatic qualities5 2. 4 Leadership competences6 2. 5 Formal communication7 2. 6 Empowerment characteristics7-8 3. 1 Social responsibility9 3. 2 Manage resistance to change strategies9 3. 3 Change process phases10 3. 4 Characteristic of a change manager10 REFFERENCES11 QUESTION 1 1. 1 Variables in the internal environment 1. 1. 1 Mission statement and goal of the business

A mission statement defines what an organization is, why it exists and its reason for being. Briefly it is a clear brief description of the business, what is the business and what does if offer. 1. 1. 2 The organization function For an organization to be able to function there must be specific functions e. g. Planning, Organizing, etc. All of these functions are important and one cannot function well without the others. 1. 1. 3 The factors of production of the organization Factors of Production are various types of resources used in the production f goods and services. The factors of production are basic inputs that are used to produce goods and service. 1. 2 Ways to departmentalize the business 1. 3. 1 General Management General Manager oversees the day to day running of the organization. Ensure that all the department perfumes their daily duties and that all the functional area perfume as expected. * There was poor management of production process within the organization. 1. 3. 2 Operation Management The operation manager ensures that stock is ordered and that the stock is of good quality. The operation department did not have clear objectives and they had no clear goals of what to achieve. They did not produce what the public demanded. 1. 3. 3 Marketing Management Marketing manager duty of the Marketing team to ensure that all products are of good quality and products are marketed to the community. * The public needs were not met at all, due to the poor service rendered by Rainbow Communicating Computers. They produce bad quality computers. Market manager is expected to be more creative, take advantage of dates such as Christmas, Valentine etc. to do promotions. 1. 2. Financial Management Financial Manager is responsible for allocating and management of finances of the organization this includes effective planning organizing and control of all financial activities. The failing and succeeding of the organization depend on how the organization finances are handled. * There was no proper system placed on financial management issues. Raphael and the shareholders use the organization finances irresponsible. There was a need for a proper and stable financial management. 1. 3 Management Functions 1. 4. 4 Organizing To put together in an orderly, functional, and structured.

Managers are responsible for organization of the business and this includes organizing people and resources. Without an organized workplace the manager won’t be able to achieve the mission and goals of the organization. 1. 4. 5 Planning A manager must determine what the organization goals are and how to achieve those goals. Ensuring that the plans do links to other plans of the organization. Planning tasks, precedes the controlling task, and therefore without planning no controlling can take place. 1. 4. 6 Leading Managers ensure that tasks are completed on time and policies are followed.

Leading refers to the way in which managers help people to achieve planned objectives. 1. 3. 4 Controlling Controlling involves monitoring the progress to make sure goals are being met, this progress must be shared with employees, and this will builds trust and a feeling of involvement for the employees. If instructions are not carried out according to plan, all manager can still manager can still exercise control by making the necessary corrections or adjustment. QUESTION 2 2. 1 Operation function * Communicating with the market community to understand and know what they expect from the organization. Good planning or plan ahead, to ensure that the right stock is ordered in time and doing promotions to improve sales. * Organizing the business properly by setting objectives and targets for both the business and the people. * Studying your business environment is one way to achieve your goal. * Know your target market can help you to be able to stock what the public what. * Selecting different types of products (range) you want to sell, and determine the right price of the product. 2. 2 Qualities of leaders Charismatic leader, one of the charismatic leaders is vision and the ability o explain vision. Raphael was able to formulate and draw up the organization mission statements without any problem. He was able to identify and explain the vision and mission of the organization. 2. 3 Charismatic leader qualities 2. 3. 1 Self confidence 2. 3. 2 Vision 2. 3. 3 Strong convictions about their vision 2. 3. 4 Unusual conduct 2. 3. 5 Seen as agents of change 2. 4 Leadership competences. 2. 4. 1 Management of attention Leaders must have the power to draw people to them because they have a vision, a dream and a set of intentions.

The ability to sell their dreams to their employer and believe in their dreams. 2. 4. 2 Management of meaning To make dreams clear to other and align people with the dreams, leaders must communicate the dreams and vision to the people. The vision and mission must be clear to avoid confusion. It also requires a good communication between the employer and employee. A leader needs to be communicating their vision and intent effectively and continuously to involve people and to create feeling security in terms of to know where they are going. . 4. 3 Management of trust The ability to promote an environment of mutual confidence, trust and belief in the performance outcome of workplace associates. It is important for people to feel that they are trusted to gain their confidence and commitment it is evident why self knowledge is so important for leaders. Honesty and integrity, openness, respect for human dignity equal opportunities, quality in everything we do, mutual trust and respect should be combined with team work, recognition for performance, participation and empowerment.

Leaders should therefore have the capacity to trust people by giving them responsibility as well as the necessary support when they require it. 2. 4. 4 Management of self Managers know themselves; they know their strengths and care for them. 2. 5 Four formal channel of communication 2. 4. 1 Vertical communication Takes place between workers and management at different levels of the organization. Examples of vertical communication are newsletters to workers, meetings, grievance procedures and memos. 2. 4. 2 Horizontal communication Takes place across departments between people at about the same level of authority.

For example Raphael as management was supposed to interact with the consultants to ensure that all objective of the company are formulated. This could have done in interdepartmental meetings, promoting interpersonal relationships between group members with various function or team building exercised and business lunches. 2. 4. 3 Downward communication This flows from the superiors to the subordinates. Information flowing from the top of the organizational management hierarchy and telling people in the organization what important (mission) is and what is a valued (policies) .

Some example of downward communication includes notices, circulars, instruction orders, letter, memos, bulletins etc. In the case study it was clear that the staff and the manager within the functional area did not know what to do as there was no clear downward communication. 2. 4. 4 Upward communication Information flows from the lower levels to the upper level. The employees in the lower level are the one who deals with clients on a daily basis and they know their needs, before 2. 6 Empowerment characteristics 2. 6. 1 People feel significant

Everyone feels that he/she makes a difference to the success of the organization. One of the manager’s job is to make his people feel ten feet tall, strong, powerful, self confident, willing to take risk. 2. 6. 2 Learning and competence matter As knowledge increase becomes the key strategic resources of the future, the need for the manager to develop a wide understanding of the new knowledge management economy is becoming ever more critical. 2. 6. 3 People are part of a community The manager’s world is to engage the community in the process of co-creating its own future.

This process must be done jointly or else the people involved will not feel that they own the results and are not responsible for the successes or failures. 2. 6. 4 Work is exciting Organization is about people. People breathe life into organization through their commitment and positive energy. Given the right environment, people will self organize to create a dynamic, thriving, successful organization. QUESTION 3 3. 1 Social responsibility 3. 1 Legal responsibility These are about the laws that organizations and government have to obey.

It implies that they are responsible to ensure that their employees obey the laws of the country. 3. 1. 2 Ethical responsibility It has to do with the actions undertaken by organizations and the way in which they behave towards people, communities and society. 3. 1. 3 Economic responsibility These types of responsibility is about an organization obliged to produce goods and provide service needed by society at a price that benefits business white at the same time satisfying its obligations to investors. 3. 1. 4 Voluntary responsibility These activities are guided by business’s desire to engage in social ctivities that are not mandated, not required by law and not generally expected of business in an ethical sense. 3. 2 Manage resistance to change strategies 3. 2. 1 Force-coercion strategy This strategy uses the power bases of legitimacy, rewards and punishments as the primary inducement to change. This involves the exercise of formal authority or legitimate power, offering special rewards and threatening punishment. 3. 2. 2 Rational persuasion Rational persuasion strategy attempt to bring about change through persuasion backed by special knowledge, empirical data, and rational argument.

Although this strategy is slower than the force-coercion, it can result in longer-lasting and more internalized change. 3. 2. 3 Shared power This strategy engage people in a collaborative process of identifying values, assumptions, and goals from which support for change will naturally emerge. This process is slow, but it is likely to yield high commitment. 3. 3 Three phases of the change process 3. 3. 1 Unfreezing 3. 3. 2 Changing 3. 3. 3 Refreezing 3. 4 Five Characteristic to be a successful change manager 3. 4. 1 Sufficient self confidence to lead 3. 4. The ability to communicate clearly and listen effectively 3. 4. 3 The ability to make decisions 3. 4. 4 Trusting and respecting other people 3. 4. 5 Adequate knowledge of the field in which they have. REFFERENCES 1. Lisel E. Erasmus, Albin Bowler& Donavon Goliath: Effective Communication 4th Edition, 1998. 2. D. Plaatjies, P. Bruwer. Entrepreneurship & Business Management, 1997. 3. www. suite101. com (Four Management Functions) 4. Focus on Management Principles a generic approach,2004 5. Focus on Management Principles Management A( Unisa study guide)2010