Lessons 24 · 1 lessons · U. G‘afurov, Q. Sharipov. Basics of Entrepreneurship: textbook for Grade 11 of general secondary schools and for secondary specialised and vocational institutions. 1st edition. “O‘zbekiston” publishing house, Tashkent, 2018
24
Managing an enterprise
Textbook: pp. 111–114
GoalExplain the goal and tasks of management, the functions and methods of management, and do a simple calculation of how a plan was fulfilled.
New words
management: the set of methods and principles of running a business successfully · Menejmentmanager: a hired specialist who manages a business or part of it · Menejermotivation (qiziqtirish): creating employees’ interest in reaching the business’s goals · Motivatsiyacontrol: comparing the work done with the set norms and plans · Nazorat
Explanation
Management is the set of methods and principles for running a business successfully. Its main goal is to ensure the business’s profitability and a stable place in the market. Its tasks are to organise production that matches market demand, attract skilled employees, raise labour productivity by improving working conditions and pay, set ways of development and control how the work is done. The person or group that manages is the subject of management, and the things that are managed (employees, finance, production, supply) are its object. Management has five functions: analysis, planning, organising, motivation and control. It has three methods: organisational-administrative (orders, instructions), economic (wages, bonuses) and social-psychological (respect, team atmosphere). A small business can be managed by the entrepreneur alone, while a large one has separate specialists for production, finance, staff and sales.
Worked examples
In an imaginary sewing shop the monthly plan is 400 shirts and 460 were made. Fulfilment = 460 / 400 × 100 = 115 %. The manager sees this result through the control function and gives the team a bonus as motivation.
Examples of methods: announcing the work-time schedule is organisational-administrative; an extra payment for quality work is economic; recognising good work at a team meeting is a social-psychological method.
Class activity
Class business: a group writes one specific action for each of the five management functions for an imaginary small business (for example a local cleaning service) and gives one example for each of the three methods.
Practice
1
What is the difference between the subject and the object of management?
The subject is the person or group that manages, and the object is what is managed: employees, finance, processes and so on.
2
Which management method is “an extra payment is added to wages”?
The economic method.
3
The plan was 250 units and 300 were made. What per cent of the plan was fulfilled?
120
4
Monthly revenue is 8 000 000 so‘m and the bonus fund is 3 % of revenue. How many so‘m is the bonus fund?