Most small business owners have their hands full with a wide variety of important things to do. However, business finance risk management falls into the category of high priority actions that must be accomplished without delay. The module provides insight into the different possibilities for reframing, recontextualising and reworking management and organizing in contemporary societies. How these are applied will vary depending on what level of management a particular manager is involved in (high, middle, low) and the organisation. Correct planning ensures there is a degree of focus, while also providing a structured timeline that relevant stakeholders can adhere too.
Regardless of these two factors all management decisions focus on the efficient and effective use of resources for the benefit of the organisation, in the direction of its desired goals and/or objectives. The second stage is organising, this is where management prepares for the task ahead by delegating resources and responsibilities, as efficiently and effectively as possible (Pakhare, 2011).
During this stage management would consider the different departments and divisions within its organisation and provide authority and tasks as necessary. Davidson, P. Simon, A. Woods, P & Griffin, R.W. 2009, Management: Core concepts and applications, 2nd edition, Wiley, Brisbane. As middle class jobs are being outsourced, the middle class is quickly dwindling.
Leading requires a manager to have a positive influence on people while also inspiring them to complete their jobs (making this vital in low-middle management), this in turn improves their job performance through a positive work environment (Expert Manage, 2011). These technical skills are used mostly at the lower levels of management and are obtained through experience and training.
The final stage in the function of management is controlling, this stage is important in the establishment of performance standards and ensuring these standards are adhered too while also taking corrective actions against deviation. While a solid grasp of management functions is important management should also have a sound skill base, a report by Hay’s Group suggests this is a weak area for most individuals in management and is one of the biggest threats to business success (Financial Advisor, 2007).