Management functions
| Function | What managers do | Example in a café chain |
|---|---|---|
| Planning | Set objectives and decide how to achieve them | Aim to open 3 branches next year |
| Organising | Arrange tasks, people and resources; set up the structure | Assign a manager and staff to each branch |
| Leading | Direct, motivate and communicate with staff | Encourage staff to give better service |
| Controlling | Set standards, measure performance, compare and take corrective action | Compare each branch's sales with its target |
Good objectives are SMART: specific, measurable, achievable, relevant and time-bound.
Principles of effective management
- Division of work: each employee specialises in certain tasks.
- Unity of command: each employee receives orders from one superior only.
- Unity of direction: activities with the same objective are under one manager and one plan.
- Balancing authority and responsibility: a manager given responsibility for a task must have enough authority to carry it out.
Organisation
- Span of control: the number of subordinates directly supervised by one manager. A narrow span gives a tall structure with more levels; a wide span gives a flat structure.
- Chain of command: the line of authority from the top to the bottom.
- Centralisation keeps decisions at the top; decentralisation passes decision-making authority to lower levels.
- Delegation: assigning authority to a subordinate; the manager remains accountable.
Key business functions
Human resources management, financial management, operations management, marketing management, information management and risk management.
Small and medium enterprises (SMEs)
In Hong Kong, an SME is a manufacturing business with fewer than 100 employees or a non-manufacturing business with fewer than 50 employees.
- SMEs make up the great majority of businesses and employ about half of the private-sector workforce.
- Strengths: flexible, quick decisions, close relationships with customers.
- Difficulties: limited capital and difficulty borrowing, high rents, competition from large firms.
Entrepreneurs identify business opportunities, take risks and organise resources to start a business.