FACULTY OF INFORMATION TECHNOLOGY
BUSINESS MANAGEMENT 621
1ST SEMESTER ASSIGNMENT
Name & Surname: Caroline Kau
Qualification: DIT
621
ICAS No: 402005364
Semester: 1
Module Name: Business Management
Date Submitted: 12.05.2021
ASSESSMENT CRITERIA
QUESTION ONE
QUESTION TWO
QUESTION THREE
TOTAL MARKS
MARK
ALLOCATI
ON
MARKS FOR CONTENT
30
30
30
EXAMIN
ER
MARKS
MODERAT
OR MARKS
90
MARKS FOR TECHNICAL ASPECTS
1. TABLE OF CONTENTS
Accurate numbering according to the numbering
2
in text
and page numbers.
2. LAYOUT AND SPELLING
Font – Calibri
3
12 Line
Spacing – 1.0
Margin should be justified.
3. REFERENCE
5
According to the Harvard Method
TOTAL MARKS
10
TOTAL MARKS FOR ASSIGNMENT
100
Examiner’s Comments:
Moderator’s Comments:
Signature of Examiner:
Signature of Moderator:
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Contents
QUESTION ONE
(30 MARKS)........................................................................................................................ 2
...... 8
QUESTION TWO
(30 MARKS)........................................................................................................................ 8
QUESTION THREE (30 MARKS) ....................................................................................................................... 9
References: ..................................................................................................................................................... 13
QUESTIONS
QUESTION ONE
90 MARKS
(30 MARKS)
IMPORTANCE OF ENTREPRENEURSHIP
As one of the four factors of production, entrepreneurship is a very scarce resource. The
entrepreneur serves the nation’s economy by providing jobs and producing goods and
services by utilizing the other three factors of production namely human, capital and natural
resources. Many successful large businesses today were started as small entrepreneurial
ventures.
Being an entrepreneur or small business owner can be very rewarding; profits are good even
if risks are high. South Africa has a total population of 44 million people of which only 12, 9
million are employed. Of these only 1, 9 million are self-employed and many of these
operate in the informal sector.
We can therefore guess that South Africa has just over 1 million people who could be
classified as entrepreneurial businesspeople. But can all small businesses be classified as
entrepreneurial? No, many small entrepreneurial concerns go on to be large companies
requiring extensive managerial skills. An entrepreneurial business is also one that utilizes
many of the same innovative thinking skills found in the smaller one-man start-up operation.
REQUIRED:
1.1 What are the psychological factors that distinguish an entrepreneur from a normal
individual? Justify your answer with theory and practical examples.
(10)

Passion:
Entrepreneurs are not in it for the money. While that may be a bonus, the true benefit is
doing what they love. Building a business takes a lot of time and effort. It means putting in
longer hours and doing extra work. If you do not love what you do, you are not going to
want to do what it takes to achieve success.
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Entrepreneurs are not afraid of hard work because they are so focused on their dream and
their vision. They do not give up when a challenge arises. They stick with their passion and
see it through.

Motivation:
Entrepreneurs are dedicated to their work. They are not reliant on a manager or colleague
to push them toward their goals or to get their work done. Their drive comes from within
and allows them to motivate others in turn.
In his book, “Leaders Eat Last: Why Some Teams Pull Together and Others Don’t,”
motivational speaker Simon Sinek writes, “If your actions inspire others to dream more,
learn more, do more and become more, you are a leader.”
Entrepreneurs know how to communicate their dream and inspire others to join them on
their journey to achieving it.

Optimism:
When you are just starting out, it can seem like getting your business off the ground will
never happen. But entrepreneurs do not think like that. They are optimistic about the
future and are always looking ahead.
In his essay “Thoughts on Various Subjects,” Jonathan Swift wrote, “Vision is the art of
seeing things invisible.” Entrepreneurs have a vision they share with others. Their team
understands why they do what they do, what the goal is and what their role is on the path
to success.

Creativity:
Entrepreneurs do not think the same way as everyone else. They see the world differently
and think outside the box. Businesses are built on big ideas, and those big ideas need to
come from a place of creativity, from a way of thinking that differs from everyone else’s
thinking.
In “Conversations with Maya Angelou,” Jeffrey M. Elliot quoted Maya Angelou as saying,
“You can’t use up creativity. The more you use, the more you have.”
Entrepreneurs are always looking for new ways of doing things and how they can make
them better. They are not satisfied with the status quo. By being creative, they come up
with ideas that change the world.

Risk Takers:
Risk taking is par for the course when you are starting a new business. But taking risks
should not scare you. It is necessary to achieve your goals, and successful entrepreneurs
understand this.
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In his book “The Four-Hour Workweek” entrepreneur and author Tim Ferriss writes, “What
we fear doing most is usually what we most need to do.”
If you are afraid to take the leap, you will never get anywhere. Staying complacent will
never allow you to achieve greatness. Entrepreneurs do not let uncertainty and potential
failure stop them from doing what needs to be done. Instead, entrepreneurs look at
challenges and risks as opportunities, not as problems.
As businessman Robert Kiyosaki wrote on Twitter, “Everyone can tell you the risk. An
entrepreneur can see the reward.
1.2 Describe the factors influencing the entrepreneurial performance. Support your answer
with theory.
(10)
Entrepreneurship is influenced by four distinct factors: economic development, culture,
technological development, and education.

The economic factors that affect the growth of entrepreneurship are the following:
 Capital
Capital is one of the most important factors of production for the establishment of an
enterprise. Increase in capital investment in viable projects results in increase in profits
which help in accelerating the process of capital formation. Entrepreneurship activity too
gets a boost with the easy availability of funds for investment.
 Labour
Easy availability of right type of workers also effects entrepreneurship. The quality rather
than quantity of labour influences the emergence and growth of entrepreneurship. The
problem of labour immobility can be solved by providing infrastructural facilities including
efficient transportation.
 Market
The role and importance of market and marketing is very important for the growth of
entrepreneurship. In modern competitive world no entrepreneur can think of surviving in
the absence of latest knowledge about market and various marketing techniques.

The main components of social environment are as follows:
 Family Background
This factor includes size of family, type of family and economic status of family. In a study
by Hadimani, it has been revealed that Zamindar family helped to gain access to political
power and exhibit higher level of entrepreneurship.
Background of a family in manufacturing provided a source of industrial entrepreneurship.
Occupational and social status of the family influenced mobility. There are certain
circumstances where very few people would have to be venturesome. For example, in a
society where the joint family system is in vogue, those members of joint family who gain
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wealth by their hard work denied the opportunity to enjoy the fruits of their labour
because they have to share their wealth with the other members of the family.
 Education
Education enables one to understand the outside world and equips him with the basic
knowledge and skills to deal with day-to-day problems. In any society, the system of
education has a significant role to play in inculcating entrepreneurial values.
 Cultural Value
Motives impel men to action. Entrepreneurial growth requires proper motives like profitmaking, acquisition of prestige and attainment of social status. Ambitious and talented
men would take risks and innovate if these motives are strong. The strength of these
motives depends upon the culture of the society.

Many entrepreneurial theorists have propounded theories of entrepreneurship that
concentrate especially upon psychological factors. These are as follows:
 Need Achievement
The most important psychological theories of entrepreneurship were put forward in the
early) 960s by David McClelland. According to McClelland ‘need achievement’ is social
motive to excel that tends to characterise successful entrepreneurs, especially when
reinforced by cultural factors. He found that certain kinds of people, especially those who
became entrepreneurs, had this characteristic. Moreover, some societies tend to
reproduce a larger percentage of people with high ‘need achievement’ than other
societies. McClelland attributed this to sociological factors. Differences among societies
and individuals accounted for ‘need achievement’ being greater in some societies and less
in certain others.
The theory states that people with high need-achievement are distinctive in several ways.
They like to take risks and these risks stimulate them to greater effort. The theory
identifies the factors that produce such people. Initially McClelland attributed the role of
parents, especially the mother, in mustering her son or daughter to be masterful and selfreliant. Later he put less emphasis on the parent-child relationship and gave more
importance to social and cultural factors. He concluded that the ‘need achievement’ is
conditioned more by social and cultural reinforcement rather than by parental influence
and such related factors.
 Motives
Other psychological theories of entrepreneurship stress the motives or goals of the
entrepreneur. Cole is of the opinion that besides wealth, entrepreneurs seek power,
prestige, security, and service to society. Stepanek points particularly to non-monetary
aspects such as independence, persons’ self-esteem, power, and regard of the society.
 Withdrawal of Status Respect
There are several other researchers who have tried to understand the psychological roots
of entrepreneurship. One such individual is Everett Hagen who stresses the-psychological
consequences of social change. Hagen says, at some point many social groups experience
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



a radical loss of status. Hagen attributed the withdrawal of status respect of a group to the
genesis of entrepreneurship.
Hage believes that the initial condition leading to eventual entrepreneurial behaviour is
the loss of status by a group. He postulates that four types of events can produce status
withdrawal:
The group may be displaced by force.
It may have its valued symbols denigrated.
It may drift into a situation of status inconsistency; and
It may not be accepted the expected status on migration in a new society.
1.3 “The delegation process is essential to every manager, for this is how a manager gets
others to share in the organisation’s drive performance. A common failing of less effective
managers is that they try to be responsible for everything. In so doing, they are over-loaded
and not very efficient managers. This phenomenon is evident in South African managers, due
to the shortage of suitably qualified managers. Consequently, the subordinate suffers
because of the manager’s failure to delegate and develop the subordinate.”
With reference to the cited paragraph, briefly explain the principles of delegation that the
managers can follow to succeed in delegating duties or responsibilities to their subordinates.
(10)

Step 1 – Identify the task
Clarify what tasks should be delegated. What has been on your list a long time, what is
causing you frustration or boredom, and what are you doing that is of lower importance or
better done by someone at a lower pay grade?

Step 2 – Choose who to delegate the task to
Consider who the best person is to do this task. Is there someone who may be even better
and faster than you are at doing it? Who has the skill set already? If there is no one, who
has the aptitude to learn the skills needed to complete the task? Has the person you
chose established that they are capable, trustworthy, and can follow through? Do they
have the time for the task?

Step 3 – Confirm level of interest.
Highly motivated employees will usually be excited that they have been selected for a task
and feel empowered by you asking them. If they are not interested, or only express
lukewarm interest, it may be an indicator of a larger issue related to workload, aptitude, or
what brings them satisfaction. Make sure they are committed and on board with the
project.

Step 4 – Clearly define the task.
Begin with the end in mind and clearly articulate desired results. When clarifying task
specifics, be sure to focus on the result, not the how-to part. It is often helpful to offer
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general suggestions on how they might proceed along with appropriate training but be
clear that they oversee how they get to the desired outcome. When people are unclear
about a desired outcome, they will often underperform rather than risk making a mistake.

Step 5 – Clarify level of responsibility, authority, and accountability.
Name the level of responsibility, authority, and accountability you are giving them. Clearly
set out these levels at the beginning of the process. What are the reasons that they
should come to you for feedback and approval? This will vary from person to person and
from task to task. Ask and assess if they are comfortable with the level of responsibility,
authority, and level of resourcing.

Step 6 – Establish timeframes and completion date.
Clearly agree upon a task completion date and when certain phases of the task should be
completed. Consider having this in written format to avoid misinterpretation or
confusion. Be clear about what completion looks like, and that both of you agree to these
timeframes. Be sure to discuss how much time each day or week is appropriate to give to
the task. Consider how the time needed for this new task will impact their other work.

Step 7 – Express confidence
Let employees know that you believe in them and their ability to do this task. People
typically live up to – or down to – the expectations we place upon them. One of the most
powerful ways to build confidence in your employees is to express your positive
expectations of them. Using phrases like “I know that with dedication and hard work you
will be able to do this.” while simple and brief, can be inspiring to the person hearing these
words.

Step 8 – Monitor progress and give feedback.
Follow through on the timeframes agreed upon in Step 6. Establish a process of receiving
periodic updates. This helps to hold the employee accountable. Stay close enough to be
available for questions and to ensure everything goes well, but not so close that you are
the one making the decisions. Be sure to avoid micro-managing the tasks as this
undermines the authority you have handed over.

Step 9 – Give credit
Whatever you do, do not take the credit yourself. When the task is completed give credit
where credit is due. Giving credit for a job well done inspires loyalty and continued
commitment to new tasks. When possible, give public praise and recognition for a job well
done.

Step 10 – Review
Once you have delegated a task and it has been completed, pay attention to the results
and learn from mistakes. Change the way you approach things and tweak your approach
as needed. Once someone has succeeded at one task, consider if they are ready for a
more significant on
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QUESTION TWO
(30 MARKS)
2.1 Over the years, countries and communities have approached need satisfaction in
different ways. There are three main approaches that are still followed by communities for
the solution of their economic problems. Using examples, discuss the basic economic
systems to provide for the economicmodels of basics of economy. (15)
 The Command economy:
In a command economic system, a large part of the economic system is controlled by a
centralized power. For example, in the USSR most decisions were made by the central
government. This type of economy was the core of the communist philosophy.
Since the government is such a central feature of the economy, it is often involved in
everything from planning to redistributing resources. A command economy can create a
healthy supply of its resources, and it rewards its people with affordable prices.
This capability also means that the government usually owns all the critical industries like
utilities, aviation, and railroad.

The Free Market economy:
In a free-market economy, firms and households act in self-interest to determine how
resources get allocated, what goods get produced and who buys the goods. This is
opposite to how a command economy works, where the central government gets to keep
the profits.
There is no government intervention in a pure market economy (“laissez-faire“). However,
no truly free market economy exists in the world. For example, while America is a
capitalist nation, their government still regulates (or attempts to control) fair trade,
government programs, honest business, monopolies, etc.
In this type of economy, there is a separation between the government and the market.
This separation prevents the government from becoming too powerful and keeps their
interests aligned with that of the markets.
Historically, Hong Kong is considered an example of a free market society.

The Socialism:
Socialist means the system under which economic system is controlled and regulated by
the government to ensure welfare and equal opportunity to the people in a society.
The idea of socialism is first introduced by Karl Marx and Fredric Engles in their book, ‘The
Communist Manifesto’.
The word socialism means ‘all things to all men’. According to Samuelson, “Socialism refers
to the government ownership of the means of production, planning by the government
and income distribution”.

The Mixed economy:
A mixed economy is a combination of different types of economic systems. This economic
system is a cross between a market economy and command economy. In the most
common types of mixed economies, the market is free of government ownership except
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for a few key areas like transportation or sensitive industries like defence and railroad.
However, the government is also usually involved in the regulation of private businesses.
The idea behind a mixed economy was to use the best of both worlds – incorporate
policies that are socialist and capitalist.
To a certain extent, most countries have a mixed economic system. For example, India and
France are mixed economies.
2.2 Discuss the nature and the purpose of Business Management as a Science. In your answer
highlight the factors, methods and the principles that enable the business to function
effectively. Where possible justify your response with theory.
(15)
The four management functions are:
1. Planning:
Planning involves deciding where to take a company and selecting steps to get there. It
first requires managers to be aware of challenges facing their businesses, and it then it
requires managers to forecast future business and economic conditions. They then
formulate objectives to reach by certain deadlines and decide on steps to reach them.
They re-evaluate their plans as conditions change and adjust, as necessary. Planning helps
allocate resources and reduce waste as well.
2. Organizing:
Managers organize by bringing together physical, human, and financial resources to
achieve objectives. They identify activities to be accomplished, classify activities, assign
activities to groups or individuals, create responsibility and delegate authority. They then
coordinate the relationships of responsibility and authority.
3. Leading:
Leading requires managers to motivate employees to achieve business objectives and
goals. It requires the use of authority to achieve those ends as well as the ability to
communicate effectively. Effective leaders are students of human personalities,
motivation, and communication. They can influence their personnel to view situations
from their perspectives. Leading also involves supervision of employees and their work.
4. Controlling:
Controlling is a function of management that involves measuring achievement against
established objectives and goals. It also requires managers to be able to identify sources of
deviation from successful accomplishment and to provide a corrective course of action.
Managers first establish objectives and goals, then measure achievement of them, identify
anything that is keeping the company from achieving them, and provide means of
correction if necessary.
Controlling does not necessarily involve achieving only monetary goals and objectives. It
can also relate to nontangible goals and objectives like meeting a production quota or
reducing customer complaints by a certain amount
QUESTION THREE
(30 MARKS)
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



THE YEAR 2021?
Almost no one will be exempt from change – most of us will be primarily
information workers.
Technologies will compete against each other as they are developed.
The “big four” information technologies (artificial intelligence, computer networks,
imaging technology and massive data storage) will become fundamental tools for
most workers and will have revolutionary effects on occupations.
Information technologies will eliminate many jobs, create new ones, and radically
change others.
Against this background, write an argumentative essay about change in the business industry
from conducting business activities manually to conducting business activities using
computerised systems.

NB: Your essay must include the following subtitles:
 Introduction
 Defining and describing change
 Types of change
 How to handle change situations
 Steps in encouraging creativity
 Understanding resistance to change
 Conclusion
(30)
The year 2021 and the impact of modern technology.
Introduction: Impact of modern technology on the work environment
Innovation and change are becoming a way of life for most people. We cannot think of a better
life without using modern technology. In a sense, technology has become a part of our daily life,
be it either at home or at the workplace.
It has changed the way we communicate, use media, work in an office or in the factory. Terms
that until recently were unknown even in western societies such as e. mail, e. commerce, the
internet, fax, microwave, etc. have become commonplace.
Defining and describing change:
In economics, a technological change is an increase in the efficiency of a product or process that
results in an increase in output, without an increase in input. In other words, someone invents or
improves a product or process, which is then used to get a bigger reward for the same amount of
work.
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The telephone is an example of a product that has undergone a technological change. It has
undergone many different changes over the years that have made it more efficient. Processes or
products, such as the telephone, move through technological change in three stages:



Invention - the creation of a new product or process
Innovation - the application of the invention for the first time
Diffusion - how fast others begin to adopt the innovation.
Types of change:

Creates new products and processes.
When telephones were first invented, the object was to be able to verbally communicate with
someone. Due to technological changes, we have multiple ways to communicate using our
phones, such as text, email, or talk.

Increases efficiency, lower costs.
Technology makes it possible to perform everyday tasks faster and with less energy on our part.
For instance, some people have a vacuum cleaning robot. Instead of spending 30 minutes
vacuuming, they push a button and go do something else. That is efficiency.

Helps economies evolve.
People can increase the ways in which they create wealth. It also has a ripple effect. When one
technological change occurs, it changes how we live. With the integration of technology, societies
evolved from traditional hunting and gathering to industrialized. So that fewer people are growing
crops, and more are moving into other industries.
Almost every industry, such as aviation, education, or the medical field, have been improved by
technological change.

Decreases self-reliance.
As technology changed over time, so too did our role in society. We are less self-reliant today, as
we rely more and more on technology than our ancestors did.

Negatively affects the value of workers.
While technology has its benefits, it also has its drawbacks. The proliferation of smartphones
and text messaging, for example, makes communication faster and more accessible. Working
millennials send about 110 personal text messages every day. Any messages they send and
receive at work can distract them from the job at hand, leading to a lack of focus and reduced
efficiency. Companies that forbid text messaging during working hours often find that employee
morale suffers.
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How to handle change situations:
First be optimistic about change. Adapt to the new ways of doing things. Learn new skills and how
you can use them in your current job.
Employers should find ways to incorporate technological change with the skills of the workers
instead of replacing workers with new technology.
Steps in encouraging creativity:
Although technology is sometimes viewed as an unwelcome distraction in educational settings
and the workplace, it also has huge potential to help us think in new ways and stumble on original
ideas.
 Try to be open to new things.
Although it’s human nature to feel uncomfortable with new things, one important
characteristic of creative people is openness to new experiences, ideas and opportunities.
So, if you are hoping to use technology as a tool for creativity, try not to get too
comfortable with what you already know or close yourself off to new resources, apps, and
tools.

Blur the line between work and play.
One important thing that creative people tend to do differently is blurring the line
between work and play. While on the surface this might seem like a bad thing,
understanding that work and fun do not have to be mutually exclusive is the key to a
better work/life balance.
Once you accept that you can have fun while you are working, and that it’s possible to
have brilliant work-related ideas in your downtime, you’ll be more open to new ways of
thinking and ideas. So rather than approaching technology with a “this is for work and
this is for play” attitude, look for ways to use it creatively in all areas of your life,
whether you are at work, at home or on the go.

Encourage research.
Along with encouraging your team to experiment, encourage them to do their own
research as well. Let your employees’ personal interests and passions do the leading as
they investigate new technologies, reading articles and writing reports for your
company.
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
Be a progressive leader.
Lastly, there is no better way to encourage innovation in your company than to lead by
example. Innovation starts at the top -- leaders should be role models for workplace
passion, positive outlook, clear direction, and vision, and of course, embracing change.
Understanding resistance to change:
It is completely normal for people to be resistant to change, especially in their work life.
Employees value the stability and the predictable nature of a daily work routine and might be
alarmed by the introduction of anything new, especially about technology. Veteran employees,
for example, may have been doing things the same way for the last 10 years. They may feel that
things have been working fine all that time, and any new change that is introduced might make
them anxious about their future at the company. They may also have a “fear of the unknown,”
fear that they may not have the competence to use new technologies, particularly if they have
had a bad experience in the past. The ultimate fear of many employees is that such changes might
end up rendering them expendable, and that they could lose their jobs.
Timing of the change is important. Employers might be tempted to implement technological
change too quickly, and this will probably be met with strong resistance from employees. Instead,
changes should be introduced gradually, so that staff can slowly become used to change. If
employers introduce change in small doses, employees will be able to adapt more easily, and the
productivity of the company will not be interrupted.
Conclusion:
It may be asserted that by the next decade most of us will be information workers and the ‘Big
Four’ information technologies-artificial intelligence, computer networks, imaging technology,
and massive data storage-will become fundamental tools for most employees and will have
revolutionary effects on occupations.
References:
https://www.entrepreneur.com/article/298650
https://relivingmbadays.wordpress.com/2012/12/26/factors-affecting-entrepreneurship-development/
https://ca.achievecentre.com/blog/10-steps-effective-delegation/
https://www.intelligenteconomist.com/economic-systems/
https://www.economicsdiscussion.net/economy/socialist-economy-meaning-and-features-of-socialisteconomy/2070
https://smallbusiness.chron.com/four-basic-functions-make-up-management-process-23852.html
https://www.opencolleges.edu.au/informed/features/8-ways-boost-creativity-technology/
TOTAL MARKS: 100
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