Extended Response On The Classical Management - 1223 Words

SECTION 4 Extended Response: Management has been practiced for thousands of years. The management approaches are there to help individuals that want to set up their own business. It gives them a variety of views from all different angles to help them start off. The most common management approaches include Classical, Behavioural and Contingency. The Classical Management is the most useful approach out of the three. It produces two different ideas with both ideas similar to the other. The first idea they had was the Classical Scientific Approach which focuses on the best way of organising the workers and the production procedures. Then after the Scientific Approach came the Classical Bureaucratic Approach which explains how the business†¦show more content†¦Weber and Fayol’s three main functions or use of management is planning, organising and controlling so it will help provide the type of ‘job description’ for managers. â€Å"A goal is a desired outcome (target) that an individual or business intends to achieve within a certain time frame† Chapman Devenish 2006. The motivation to found a business is often a result of a goal the entrepreneur strives to achieve. Goals should be specific, measurable, achievable, and realistic and time bound. This is known as the SMART technique. Goals should be straight forward and specific to the business. They need to be measurable and accurate with a realistic time frame to achieve it. Business goals can help motivate and challenge employees by providing them with a target to aim for. The following are the many forms of goals business’ use. Maximise profit happens when there is a maximum change between the total revenue (The amount of sales made multiplied by the price of the object) coming into the business and after all cost being paid out: Total sales x price = Total Revenue (TR) Total expenses incurred in operating the business = Total Cost (TC) Profit = TR – TC Maximum profit = TR at maximum difference from TC The best way of maximising profit is to increase sales. The best strategy to increase sales is to decrease the price so consumers buy more