BUSINESS AND WORK LIFE - COURSE NOTES
1. BUSINESS AND WORK LIFE
1.1. What is Business?
An organization that brings resources together to achieve commercial goals.
A field of study that prepares individuals for business life and deals with various
functions related to it.
A set of activities and commercial transactions carried out with a specific purpose.
Definition: An organization where activities are carried out to provide goods and services to
society, not always for profit.
The most basic activity of a business is the exchange between buyer and seller to meet needs.
Goods: Tangible items bought and sold in the economy to meet human needs and wants.
Service: An intangible activity provided by one party to another, not resulting in ownership of
anything.
Product: The form of goods and services offered to the market to meet customer needs.
Profit: The positive outcome of businesses providing products that meet society’s needs and
wants.
Resource: Inputs used in the process of producing goods and services.
INPUT → OUTPUT
Resources → Goods/Services → Products
Organization/Institution: A community of people consciously created to work systematically
for a specific purpose.
2. ENTREPRENEUR – MANAGER – EMPLOYEE
2.1. Entrepreneur
Definition: A person who establishes a business by taking risks to provide goods/services needed
by society and aims to make a profit in return.
Driving factor: The gaps they identify in meeting societal needs and the possibility of earning
income (and usually profit) while filling these gaps.
Qualities of an Entrepreneur:
- Being one’s own boss
- Creativity
- Internal locus of control
- Self-confidence
- Optimism
- Energetic personality
- Visionary mindset
- Patience
- Ability to work under uncertainty
- Desire to achieve
2.2. Managers
Definition: A person who uses tangible and intangible resources effectively and efficiently to
reach desired goals.
Role: Knows how the work should be done but does not physically participate in the process.
Ensures that tasks are carried out by others under their responsibility.
Managers direct employees on what, how, and when tasks should be done by fulfilling
management functions.
Management Functions (P-O-L-C):
Planning: Defines what needs to be done and the desired outcomes. Plans HOW they will be
achieved.
Organizing: Structuring resources to achieve objectives.
Leading: Matching jobs with people, motivating them, and leading to ensure work execution.
Controlling: Checking whether activities are carried out in accordance with the plan.
2.2.1. Management Levels
Top Level: Responsible for managing units properly and ensuring coordination between them.
Examples: General Manager, CEO, Rector.
Middle Level: Acts as a communication bridge between top and lower management. Translates
strategies defined by top management into actionable plans for lower management.
Lower Level: Does not participate in managerial functions directly. Examples: foreman,
supervisor.
Managerial Skills
Conceptual Skill: Ability to see the whole picture, define the mission, and create a vision by
viewing the business with its internal and external environment. Important for top-level
managers.
Human Relations Skill: Ability to work with other people. Equally important at all levels of
management. Directly related to motivation, communication, coordination, and conflict
resolution.
Technical Skill: Ability to perform technically the tasks that require expertise in the manager's
responsibility area. Becomes more important at lower levels.
Managerial Roles
Informational Role: Collecting and disseminating information to enable managerial functions.
Includes monitor, disseminator, spokesperson.
Interpersonal Role: Communication with the internal and external environment of the business.
Includes representative, leader, liaison.
Decisional Role: Making decisions while performing managerial functions. Includes
entrepreneur, problem solver, resource allocator, negotiator.
2.3. Employees
Definition: Individuals who perform tasks either as part of a team or individually without
managerial responsibility in a business.
Blue-collar: Workers in production and operations requiring physical effort.
White-collar: Workers who use intellectual effort and knowledge.
3. BUSINESS EXTERNAL ENVIRONMENT
Definition: All external conditions that affect the operations of businesses.
Importance: While managers have the power to change, control, and manage the internal
environment, they lack such power in the external environment. This increases the importance of
the external environment for businesses.
General Environment (PESTEL): Political & Legal, Economic, Socio-cultural, Demographic,
International, Technological
Sectoral Environment (MICRT): Customers, Substitute Products, Competitors, Workforce,
Suppliers
Political & Legal Environment: Related to the use and distribution of power. Includes the laws,
regulations, rules, and procedures of the societies where the business operates.
Economic Environment: Includes all factors related to the structure and direction of the economy
where the business operates. Variables include interest rates, inflation rate, money supply,
unemployment rate, foreign trade, balance of payments, budget deficits/surpluses, gross national
product, energy resources, etc.