COVER PAGE
ADMINISTRATIVE MANAGEMENT IB
ADB1602
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Open Rubric
TABLE OF CONTENT
LESSON ONE: BASICS OF COMMUNICATION………………………………4-23
LESSON TWO: WRITTEN COMMUNICATION.………………………………24-38
LESSON THREE: ELECTRONIC COMMUNICATION…………………….….39-46
LESSON FOUR: BUSINESS MANAGEMENT PRINCIPLES.………………47-62
LESSON FIVE: CLASSIFICATION OF THE BUSINESS AND ITS
ENVIRONMENT……………………………………………………………………63-77
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OVERVIEW
The aim of this module is to introduce you to the field of Administrative Management
in the organisation. The field of Administrative Management is dynamic and
challenging. The learning outcomes and assignments contained in this module will
provide you with opportunities to explore the latest developments in the field. They will
also help you discover the field of Administrative Management as it is practised today.
You should be able to demonstrate an understanding of the function of communication
and its management in an office/administrative environment. This understanding will
enable you to create and manage communication channels and describe the different
skills of an administrative manager in communication, the business management
principles and the classification of the business and its environment.
PRESCRIBED TEXTBOOK
The prescribed book for Administrative Management IB is:
Ferreira, EJ, Erasmus, A & Groenewald, D (eds). 2020. Administrative management.
5th edition. Cape Town: Juta (ISBN: 9781485130963).
OTHER READING
De Beer, AA & Erasmus, AW (eds). 2016. The business and office environment. 2nd
edition. Cape Town: Juta (ISBN: 9781485111801).
STRUCTURE OF THE STUDY GUIDE
This study guide consists of five lessons which are extracted from the above
readings.
STRUCTURE OF EACH LESSON
Each lesson is structured with a brief introduction, the learning outcomes and key
concepts which are facilitated by sections within a chapter. Also, it has sections on
activities and feedback.
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LESSON ONE: THE BASICS OF COMMUNICATION
1.1 INTRODUCTION
The administrative manager has an important duty to communicate clearly with his
subordinates/employees in such a way that the workers will understand the facts
communicated to them and be able to interpret these facts in the context of their
normal work environment. This entails that the new employee must be taught what to
do and how to do it, and then should be requested to perform that task. For example,
this could be through workshops or trainings relevant to the job. Cooperation must
also be encouraged in the work environment by both the managers and supervisors
(Quible 2015).
1.2 LEARNING OUTCOMES
After studying this topic, you should be able to do the following:
•
Explain the elements of the communication process.
•
List, describe and distinguish between the various communication channels.
•
Identify various communication mediums and specify which medium is
appropriate for which situation.
•
Discuss the barriers to effective communication.
•
List guidelines to improve effective communication.
1.3 KEY CONCEPTS
The following are the key concepts used in this study guide:
•
Importance of good communication
•
Elements of the communication process
•
Communication channels
•
Communication mediums
•
Non-verbal communication
•
Multicultural communication
•
Effective communication
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1.4 THE IMPORTANCE AND ADVANTAGES OF COMMUNICATION
Effective communication is an essential tool in achieving productivity and in
maintaining a strong working relationship at all levels in the organisation. Managers
and supervisors who invest time and energy in delivering clear lines of communication
will rapidly build up levels of trust among employees. This will lead to an increase in
productivity, output and morale in general. However, poor communication in the
workplace will unavoidably lead to unmotivated staff that may begin to question their
confidence and abilities and inevitably lead to poor productivity in the organisation.
Much of the success of managers depends on communications effectiveness (Marotti
& Glackin 2015).
Good communication can contribute to the following:
Increase in efficiency
Technology is very important. If companies are to be competitive, they must change
their way of doing things, be innovative and keep on sending their employees for
training to adapt to change.
Improvement in quality
Quality is important for any organisation. Products of high quality are essential to the
organisation in order to be competitive.
Helps to increase responsiveness
Customers’ needs to keep changing; therefore, organisations need to conduct a needs
analysis in order to establish the customers’ needs and as a result manufacture
products that will meet the customer needs.
To be effectively innovative
Innovation needs an enabling environment and good communication within involved
parties.
The above information is explained in detail in your prescribed textbook.
https://www.youtube.com/watch?v=kaH4xfodN3w
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Study chapter 5, section 5.1, in the prescribed book.
The following are the activities which you are expected to perform. The answers to the
following activities are found in learning unit 1 of the study guide and chapter 5 of your
prescribed textbook.
Now do activity 1.1 of topic 1 on the importance of communication below:
ACTIVITY 1.1 [15]
To answer the below questions also watch the above shared video. Your answer
should be two paragraphs in length.
1.1 Discuss in detail the importance of good communication regarding the following:
(a)
From the above scenario or video identify some of the above-mentioned
contributions of good communication. You may expand on other reasons why good
communication is important in the organisation (5)
(b)
The quality of your communication (5)
(c)
How efficiency leads to effective communication (5)
FEEDBACK
Study chapter 5, section 5.1, in the prescribed book.
Consult the prescribed book for more information on the importance of good
communication. Also, watch the above shared video through the provided link.
We are now turning to section 2 of lesson 1. You will learn about the barriers of
communication mediums.
1.5 THE COMMUNICATION PROCESS
This section explains and discusses the communication process. The communication
process includes various elements:
The communication process starts when the source or communicator (Miss
Khumalo) is the originator of the message. It is the sender’s/originator’s decision to
communicate with the receiver.
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The message consists of the ideas and information, a thought that the sender wishes
to communicate, or a bit of information to transmit, instructions that the source
transmits to the recipient (the recipients are the employees in the scenario).
Messages comprise signs and symbols and words which have a certain meaning
(e.g. the employees must smile to customers and update the shop’s activities).
Encoding is the process that involves translating the thoughts or information into
words, signs or symbols. It can be written, spoken, facial expression, gestures,
pictures and so forth (Miss Khumalo spoke to the employees in the meeting).
Decoding is the translation of stimuli into a meaning. It is the process, which is
essentially the opposite of encoding – it occurs when the receiver (the receivers are
the employees of the company) interprets the meaning and gives it a meaning from
her/his own perspective.
A channel is the means by which a message travels from a source to a recipient
(verbal communication channel). The recipient is the person at whom the message
is directed (e.g. employees verbally spoken to in the in the meeting).
Feedback enables the sender to determine how much of the message was actually
received and whether it was accurately interpreted by the person receiving the
message. It is the measure of the effectiveness of the communication. It can either be
positive or negative. The action of the employees, for example, by coming to work on
time and by being nice and professional to the positive feedback. However, being
rude to the customers will be a negative feedback (Nel & de Beer 2014).
Now that you have read about the communication process, try to explain the process
by using your own examples and do activity 1.2 below.
Now do the following activity of topic 1, learning unit 1 by explaining communication.
ACTIVITY 1.2 [10]
You must read the scenario and apply the scenario in the communication process.
Scenario: Miss Khumalo’s Spaza Shop
Miss Khumalo’s Spaza Shop
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Miss Khumalo owns a Spaza shop (tuck shop) in Tembisa next to a school, its target
market. The shop opens at 8 am and closes at 9 pm. She has seven employees,
including her sister who is the second person in charge, a driver, a cashier, a cleaner
and three ladies who prepare/cook skopo (cows head), amagwinya (fat cakes), fried
chips and sphahlo (bunny chow). Miss Khumalo is not fully present in the spaza
shop all the time, thus her sister takes over. She is concerned with throwing away
of leftovers. Now she instructed her sister to inform other employees that they may
take leftovers home with them afterwork. One day in a week afterwork the sister
requested an immediate meeting with the employees. The meeting was to formally
inform the employees about the above decision, which Miss Khumalo asked her to
communicate it to them. The employees were very happy about the decision. Some
employees indicated that they do not have to worry about cooking when they get
home.
Based on the above scenario describe the communication process. Extract practical
examples from the scenario (10)
FEEDBACK
Your answer should be five paragraphs in length.
Study chapter 5, the introduction and section 5.2, in the prescribed textbook.
Read the above scenario in order give practical examples.
We are now turning to section 3 of lesson 1. You will learn about the communication
channels
1.6 COMMUNICATION CHANNELS
There are five communication channels that we will discuss below:
Downward communication channels
From the word “down” you must understand it means something coming from the top
going down. This form of communication is normally used by managers, for example,
the administrative manager by keeping their subordinates informed, giving them job
related instructions and providing feedback regarding their performance. It is formal –
Miss Khumalo instructs the staff to be on time.
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Upward communication channel
From the word “up”, you must understand it means something that is going up from
the employees to Miss Khumalo. This type of communication provides the function of
feedback, information from lower levels in the organisation to upper management
levels. The administrative manager can use the input of the employees to assess the
effectiveness of its communication practices. This kind of channel is formal – the staff
can also provide Miss Khumalo feedback and suggestions about the Spaza shop.
Horizontal (lateral) communication channels
This communication type is more informal; it occurs between individuals of equal
hierarchical ranks. It helps individuals to solve their own problems before others
become involved in the personal entanglements. This communication takes place
face-to-face or in small groups. The employees of Khumalo’s shop talk among
themselves, for example the cleaner, the driver, the cashier and the ladies who cook
in the spaza shop.
Diagonal communication channels
This takes place across different levels of authority inside the organisation. For
example, the cleaner who is at low level in Miss Khumalo’s shop talks to the cashier
who is at an upper level.
Grapevine communication channels
This describes communication that travels along channels other than those formally
designed by the organisation. This type of channel also involves the employees of the
shop, who might talk about the boss, Miss Khumalo. Grapevine is an informal channel
of communication for both information and rumours (Marotti & Glackin 2015).
Formal communication
This is the type of communication which takes place through various official channels
within a formal body of the organisation. Formal communication can take place both
in writing or through oral forms. There are also two different types of formal
communications.
Informal communication
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This type of communication includes all sorts of communications which take place
without the structure of a formal body of the organisation. There are many experts who
refer to this type of communication as having a “grapevine” structure.
To add on the above topics watch the video below.
https://www.youtube.com/watch?v=egtyq2ccCIA
ACTIVITY 1.4 [10]
Explain to your friend the different communication channels in your own words and
give your own examples. (10)
FEEDBACK
Your answer should be five paragraphs in length. (2 marks per communication
channel). Study chapter 5, section 5.3, in the prescribed textbook.
Watch the above shared video. This will allow you to understand the communication
channels and you will be able explain them in your own words.
We are now turning to section 4 of lesson 1. You will learn about the barriers to
communication mediums.
1.7 COMMUNICATION MEDIUMS
There are five types of communication mediums, which are discussed below.
Verbal communication: It requires the sender to encode the message or words that
he will convey correctly/accurately to the recipient. The sender must convey the
message in a well-organised manner so that the receiver can understand the
message. Miss Khumalo uses verbal communication when she talks to the employees
face-to-face in the meeting.
Written communication: Such messages are written down for the employees. It can
be in the form of a memorandum or letters of increment for the employees. For
example, the cashier writes a report of the money made for the day.
Electronic communication: In today’s digitised world, data rules, new technologies
are rapid methods of communication available to managers and employees. These
technologies are changing the manner in which employees communicate with each
other and the way in which they make decisions. The cashier writes a report using the
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on the computer and sends via e-mails. She can also search for information using the
internet.
Non-verbal: All messages not spoken or written are referred to as non-verbal
communication.
Examples of non-verbal communication are the siren signalling the time for starting
work, lunch and time to stop working; the employees who serve the customers smile
and use other forms of facial expression, gestures and body language when talking to
the customers.
Multicultural communication: Miss Khumalo must have the skills and know-how to
deal and interact with people of different cultures. Cultural diversity must be dealt with
in organisations to ensure that the employees are happy and become productive. It
also enables them to be more cooperative.
The employees must also be taught how to resolve their differences.
Now do the following activity of topic 1, learning unit 1 on communication media.
ACTIVITY 1.5 [20]
Can you memorise the communication mediums without looking at your study
material? List and explain the different types of communication media. (10)
FEEDBACK
Your answer should be in five paragraphs in length. (2 marks per communication
medium listed and discussed).
Study chapter 5, section 5.4, in the prescribed textbook.
We are now turning to section 5 of lesson 1. You will learn about the barriers affecting
effective communication.
We are now turning to section 6 of lesson 1. You will learn about the barriers to
communication mediums.
1.8 THE BARRIERS AFFECTING EFFECTIVE COMMUNICATION
There are organisational and interpersonal barriers that affect effective communication
in many organisations. Let us now look at these barriers:
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1.8.1 Organisational barriers to effective communication
Irrespective of our position in life generally, we continually aspire to work at being
effective in communication and to be better communicators. To improve our
communication skills, we need to be aware of the barriers in communication. We
should not take things for granted, for example by assuming that the recipient or the
listener has background information about a problematic situation when in reality, the
person has little or no information at all. Think of a conversation with your friend –
when you talk you normally make sure that he/she understands. The friend will ask a
question or ask for more information if he/she does not understand you. A
communication barrier can also be created by, amongst others, semantics and
perceptions (Quible 2015).
Now do the following activity of section 1.8, learning unit 2 on communication barriers.
ACTIVITY 1.6 [15]
Your friend was reading your textbook and came across the term “communication
barriers”. Tell your friend about the barriers to effective communication from the
aforementioned discussion. (15)
FEEDBACK
Check whether your answer is correct by referring to learning unit 2. Study chapter 5,
section 5.6 in the prescribed textbook. Your answer should be three paragraphs in
length.
1.8.2 Barriers to communication
There are several obstacles that tend to distort the flow of messages. Such distortion
leads to misunderstanding and frictions among the members of the organisation.
These barriers do not allow healthy human relationships and they are injurious to
teamwork and morale. Therefore, it is necessary to analyse and remove the barriers
to communication. The various barriers to communication may be described under
three headings, which are organisational barriers, mechanical barriers and personal
barriers (Vaijayanthi et al 2010).
(a) Organisational barriers
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Organisational barriers arise due to inadequate or improper policies, rules and facilities
regarding communication:
•
Ambiguous policies, rules and procedures
•
Status patterns
•
Long chain of command
•
Inadequate facilities
(b) Mechanical barriers
Mechanical barriers arise due to problems in communication channels. These barriers
are as follow:
•
Overloading
•
Semantic barriers
•
Noise
(c) Personal barriers
Most of the failures in communication arise due to faults on the part of the sender or
receiver of the message. The important personal or human barriers are given below.
•
Lack of attention or interest
•
Failure to communicate (Vaijayanthi et al 2010)
Now do the following activity of topic 1, learning unit 2, on mechanical barriers.
ACTIVITY 1.7 [15]
Discuss the mechanical barriers to communication under the following headings:
•
Overloading (5)
•
Semantic barriers (5)
•
Noise (5)
FEEDBACK
Your answer should be two paragraphs in length. Study chapter 5, section 5.7 in the
prescribed textbook. Following is an explanation of the six organisational barriers to
effective communication. Organisational barriers include the following:
Hierarchical levels
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The more levels there are in the organisation, the more the message changes by the
time it reaches the recipient. For example, the lecturer reports the message to the
head of department (HOD), the HOD reports it to the director, the director reports it to
the deputy executive (DE), the DE in turn reports the message to the dean, lastly the
dean reports it to the principal. These numbers of levels can negatively affect the
communication process. If a lecturer has a problem with the chair of department
(COD), then the matter will be escalated to the next level, the Director, and if not
happy, it will be escalated to the consecutive levels above. By the time it reaches the
Principal, some important facts carried in the message could be lost along the
communication channel.
Managerial authority
Supervisors can be a barrier to effective communication, because they can change
the message. By the time it reaches the boss, it is not what you exactly said. They can
distort/change the message.
Specialisation
As knowledge becomes more specialised, professionals in many fields develop their
own jargon and the use of incomprehensible jargon makes communication
exceedingly difficult. The language that doctors use is such that we can’t understand
it. The same applies to the language that teenagers use on Facebook or WhatsApp. I
personally don’t understand the language they use, but they understand one another.
My son once said to me I am a BBC. When I, asked what it means, he said born before
computers.
Network disruptions
The communication process can be interrupted through disruptions in the network, for
example glitches in the network or the network not working properly or even slower,
or the network can shut down or have too many users. For example, the due date for
assignments number one, is normally the same for many modules of the University.
Since many students want to submit on this particular date all at once, the server
becomes overloaded and some students find it difficult to submit their assignments on
time, due to network disruption.
Information overload
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This takes place, when we are given a lot of information, and it becomes too much for
us to cope with. For example, if you attend a workshop for one day, which normally
will be scheduled for three days, then the presenter will give us a lot of information,
some of which we will not understand, or if a Unisa lecturer conducts a discussion
class for one day only for a particular semester, the information would be too much for
the students to cope with.
Time pressure
The instructions we get from our seniors or top management must receive attention
during a particular time period. If we are pressed for time we seem to misunderstand
and miss out on good communication. For example, if our seniors expect a number of
tasks to be done within a short time span, this causes tension and stress. (Ferreira,
Erasmus & Groenewald, 2016).
Now do the following activity of topic 1, learning unit 2, on organisational barriers to
effective communication.
ACTIVITY 1.8 [25]
Your relative hears people talking about barriers to communication at work. Knowing
that you are a student at Unisa, he/she asks you if you know anything about this.
Discuss the organisational barriers to communication in the workplace to your relative.
(25)
FEEDBACK
Your answer should be five paragraphs in length. (Five marks per barrier to
communication discussed)
Study chapter 5, section 5.7.1, in the prescribed textbook.
1.8.3 Interpersonal barriers to effective communication
People differ from each other, due to, among others, our different backgrounds and
the different languages that we speak. Generally, we misunderstand one another due
to different languages and customs. I speak Zulu and I live in Pretoria, an area which
is predominantly Sotho speaking. I often experience problems when shopping at
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certain stores because I misunderstand some comments. I cannot communicate
effectively due to language differences.
Let us then look at the five major interpersonal barriers mentioned in your prescribed
textbook.
Stereotypes
This happens when we judge people by their behaviour and start saying bad or good
things about an individual. For example, taxi drivers are generally known as bad
drivers. Due to stereotyping, each time we see a taxi driver, we think of someone who
is rude and a reckless driver.
Perception
This can occur when we take things for granted. For example, we can assume that the
graduates know everything, which is not a good perception as it might happen that
some graduates will have no information on some topics.
Halo effects
This occurs when we judge people based on first impression by looking at one aspect.
For example, a new employee who arrives late to work on his first day. We might
conclude and say this guy is a late comer, whereas it was only for that day.
Selectivity
In the townships when you party, they see you as westernised, but when you don’t,
you are classified as backwards. This is selectivity because these people who party
value partying and they believe it is the correct thing to do. They judge people based
on selective information.
Projection
This takes place mainly when we make assumptions. For example, I will expect
everyone who visits my house to eat tripe because I love it and comment positively
about this kind of meat. Chances are that some people or some of my visitors might
not like it. People do not necessarily have the same values. We must try to put
ourselves in other people’s shoes in order to understand them well. See things from
their point of view.
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The status of the communicator
If a person occupies a respectable position in the society, we tend to have high respect
for them. For example, we tend to believe everything that the priests say, because we
think they are holier than thou. We don’t question their messages, but we must know
that they are also human; they can make mistakes or pass wrong messages.
Defensive behaviour
This can also happen in meetings when people want to say and listen to what they
believe. They defend their views, which exclude other people’s opinions. This is not
good, as some people can come up with good suggestions that are different but
helpful.
Differences semantics
Many words may say different things, especially in South Africa with eleven official
languages. We have words that mean one thing in one language and something else
in another language. The word “kusasa” in Zulu means the next day, whereas in Xhosa
it means early in the morning. When a Zulu speaks to a Xhosa person the meaning of
this word will be interpreted in a different way by both parties.
The listening skills
Listening is a skill and we need to make sure that we listen carefully to what is said.
We must listen with understanding and be certain of what is said, so that we can
respond as we are expected to do. We must listen actively. Using active listening skills
– focusing solely on what the other person is saying in a conversation and then
validating understanding of the content and meaning will significantly improve your
verbal communication effectiveness (Marotti & Glackin 2015). Five rules for active
listening are mentioned in your prescribed textbook.
Now do the following activity of topic 1, learning unit 2, on interpersonal barriers to
communication.
ACTIVITY 1.9 [20]
Prepare a lecture in which you are going to present the interpersonal barriers to
communication. (20)
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FEEDBACK
Your answer should be four paragraphs in length.
Study chapter 5, section 5.1–5.7.2 in the prescribed textbook. (Five marks per
interpersonal barrier to communication discussed.)
Overcoming barriers and guidelines to effective communication is discussed at
length in your prescribed textbook.
Now do the following activity of topic 1, learning unit 2, on how to overcome barriers
to effective communication.
ACTIVITY 2.5 [20]
How would you overcome the barriers to effective communication? (20)
FEEDBACK
Your answer should be two paragraphs in length. (Five marks per barrier to effective
communication discussed).
Study chapter 5, section 5.8, in the prescribed textbook.
Overcoming barriers and guidelines to effective communication is discussed at
length in your prescribed textbook.
Study chapter 5, section 5.8–5.9, in the prescribed textbook to do the following
activities. I will provide answers to the activities below.
ACTIVITIES
Read sub-section 5.2–5.9 in the prescribed textbook and answer the following two
questions.
Read the following scenario and answer the questions that follow:
The chief executive officer (CEO), Miss Ngubane, calls Mr Shenge who is the work
supervisor, to her office. When Mr Shenge walks in a minute or two later, the CEO
is busy with what appears to be an unexpected but very important telephone
conversation. In due course, she replaces the receiver, but her mind, clearly, is still
very much on what he had just heard.
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“Hi Mr Shenge. Please sit down. This is why I called you: at the moment, we have
an official lunch break lasting one hour. As from the first of next month, I want to
reduce this lunch break to 30 minutes only, and bring the afternoon quitting time
forward by half an hour. No doubt, the staff will appreciate the opportunity to get
home earlier. Will you please inform everyone concerned? Thanks for your time.”
Miss Ngubane begins to examine some papers on her desk and waves with her
hand to indicate that she has nothing further to tell the supervisor.
The supervisor, in turn, opens his mouth as if starting to say something, but thinks
better of it and all he utters is a weak: “OK, Miss Ngubane.”
Question 1 [24]
All the components of the communication process are illustrated in the above scenario.
Apply this scenario by explaining the following concepts:
1.1
Sender
1.2
Message
1.3
Signs and symbols
1.4
Channel of communication from sender to
recipient
1.5
Recipient
1.6
Channel of communication from recipient to
sender
1.7
Feedback
(7)
Question 2
A communication channel is the medium through which a message is conveyed from
a sender to a recipient. Indicate what kind of communication channel is used in the
following scenarios:
2.1
The
operational
manager
requests
the
marketing assistant to assist him
with the marketing plan, before it is submitted.
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2.2
A few ladies gather in the tearoom and
speculate about the bosses’ new
affair
2.3
Scott, the administrative assistant, gives a few
new ideas to improve productivity
in the administrative office to the administrative
manager.
2.4
The management committee (consisting of the
managers of the various
departments) discusses a new sales strategy
2.5
The financial manager instructs the employees
about the proper budgeting
procedure to follow.
2.6
A team of people from various departments get
together to plan the year-end function.
2.7
During lunchtime the staff complains about the
new performance appraisal
structure.
Question 3
Various barriers to communication exist. Indicate what type of communication barrier
is illustrated in the following scenarios. Also indicate what can be done to overcome
these barriers.
Draw a table on your answer sheet to answer this question. Remember to number it
correctly.
3.1
Management providing staff with policies and
procedures, with endless follow-up meetings
and e-mails.
3.2
The management committee gives
feedback to the middle managers, who
give instructions to the supervisors that
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need to get the floor managers together
for a meeting so that they can give
the instructions to the operations staff.
3.3
Mary,
the
executive
secretary
to
the
administrative director has a bad habit of not
reading her e-mails timely and therefore not
being able to give the director timely information.
3.4
Sarah is thinking of what she needs to cook
tonight, while her supervisor is giving her
instructions.
3.5
All males can’t do two things at the same time,
so when you talk to them you must insist that
they look you in the eye.
FEEDBACK
Question 1
1.1
Sender
Miss Ngubane, CEO
1.2
Message
Lunch break is changing
from 1 hour to 30 minutes
and employees can leave
30 minutes earlier in the
afternoon.
1.3
Signs and symbols
Verbal and hand signal
1.4
Channel of communication from sender to Downwards
recipient
1.5
Recipient
Mr Shenge, the supervisor
1.6
Channel of communication from recipient to Upwards
sender
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1.7
Feedback
None
Question 2 [7]
2.1 Diagonal
2.2 Informal (grapevine)
2.3 Upward
2.4 Horizontal
2.5 Downwards
2.6 Horizontal
2.7 Informal (grapevine)
Scenario Communication overcoming
The
communication
barrier
3.1
Information overload
Regulate
the
flow
of
flow
of
information.
3.2
Hierarchical levels
Regulate
the
information and simplify
the
language
of
the
message.
3.3
Network disruptions
Use technology wisely
and prioritise.
3.4
Listening skills
Listen actively and give
full
attention
when
someone is talking.
3.5
Stereotypes
Value all people in terms
of their gender,
age,
ethnicity, race and other
factors.
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References
1. Ferreira, EJ, Erasmus, A & Groenewald, D (eds). 2016. Administrative
management. 4th edition. Cape Town: Juta.
2. Marotti S & Glackin G. 2015. Entrepreneurship and small business management.
2nd edition. Pearson.
3. Ones, R & George, JM. 2008. Contemporary management. 5th edition. New York:
McGraw-HillIrwin.
4. Quible, ZK. 2015. Administrative office management an introduction. 8th edition.
New Jersey: Pearson Education.
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LESSON TWO: WRITTEN COMMUNICATION
2.1 Introduction
Written communication involves any type of message that uses the written word.
Written communication is the most effective and important of any mode of business
communication. In this topic you will learn about written communication, the steps
involved in written communication, internal and external communication, as well as the
advantages and disadvantages of written communication. We will also discuss the
skills you will need to become an effective writer. Finally, you will learn about the
examples of written communication, such as business letters, reports and
memorandums. It is very important that your written message is clearly crafted to avoid
misunderstanding. If the written communication is poorly drafted it may cause some
confusion and conflict.
2.2 LEARNING OUTCOMES
After studying this topic, you should be able to do the following:
•
Demonstrate to the management of an organisation the different steps in the
written communication process.
•
Distinguish between internal and external communication.
•
Draft and compile a business letter.
•
Explain the importance and purpose of the written report.
•
Distinguish between an informal and a formal report.
•
Apply the requirements for an effective report.
•
Compile a memorandum.
2.3 KEY CONCEPTS
The following are the key concepts used in this study guide:
•
Written communication
•
Internal and external communication
•
Formal and informal communication
•
Report
•
Memorandum
24
2.3 INTRODUCTION
Written communication is conducted through written words in the form of reports,
memorandums, letters, manuals and so forth. Managers often use written
communication daily in line with performing their functions. It is mostly used to issue
specific instructions and orders to employees of the organisation. Written
communication is recorded messages by which information is transmitted from sender
to receiver. Organisations are becoming more and more aware that written
communication is important. This learning unit focuses on written communication. I will
now introduce you to written communication
2.4 WRITTEN COMMUNICATION
Thinking about and planning a piece of writing is often referred to as prewriting. The
time you spend before you begin writing sentences and paragraphs is not time wasted.
Indeed, once you have thought about what you want to say and the way you want to
order your ideas, you can focus on writing fluently and convincingly (Mischke 2007).
In all the steps you must ask yourself relevant questions before you attempt any
writing. Please consider the following before you attempt any writing:
•
Who are you writing for?
•
Who is my reader?
•
What does my reader know about my topic?
•
What is my reader’s background?
•
What is my reader’s attitude toward me and the topic about which I am writing?
•
Who else may read what I write?
•
Could anything be misconstrued by unknown readers and reflect unfavourably
on me or the company/organisation?
Any form of written communication goes through many steps. There are eight steps
that most written communication will go through (Ferreira 2016).
2.5 THE STEPS IN THE WRITTEN COMMUNICATION PROCESS
The steps in the written communication process are as follows:
(a) Define the problem
25
What do you want your reader(s) to do after reading your document, what do you
intend writing about and what format will you use in your writing?
(b) Determine the audience
You should know to whom you are writing this communication. Look at things like their
social standing in society, position or level of education.
(c) Do your research
You must verify your reader’s knowledge and the context within which they operate.
This will help you to decide on the information you will include in your communication.
(d) Consider your layout and other elements
You must create an attractive document that will engage and inform your reader.
Letters, memorandums and reports have different uses and layouts; thus, it is
important to know the relevant layout and other elements such colour of ink used, use
of illustrations and graphics and quality of appearance
(e) Draft your project
Effective writing normally takes more than one attempt. Thus, you need to look and
relook at your document to make sure it is appropriate and you are likely to have a
draft and then revise it.
(f) Revise, edit and proofread
Relook at your document by a revising, proof reading and editing your writing. This will
give you fresh thoughts on the subject at hand and allow a different perspective to
emerge.
(g) Produce the finished package
In this step you can make changes if necessary. This may include the retyping of your
manuscript, changing the design and layout.
(h) Conduct a post-written evaluation
Since you have transmitted the message, how would you change it? What mistakes
did you encounter and how did you address and how would you avoid these mistakes
in the future? This helps to perfect your writing skills.
26
Let us now look at the advantages and disadvantages of written communication.
2.5.1 Written communication provides the following advantages:
(a) Effectiveness
Written communication is more clearer and to the point. Mostly written
communications are self-explanatory because one follows a certain logic to have their
point or idea across.
(b) Lengthy messages
Written communication is more appropriate when the message is very lengthy or
where the message is to be communicated to many people at the same time.
(c) Repetition
Written communication can be stored and reused again at a later stage. For example,
a report or business can be used multiply times, given that it is targeted to the same
audience. Compare to verbal communication where you could tell people the same
over and over but with written communication you may resend and it keeps the original
meaning.
(d) Permanent record
Written communication can be kept as a record to provide evidence in future. Also, the
writer may use it for future reference. Compare to verbal communication where it may
not be recorded you cannot use for future reference.
(e) Better response
Response to written communication is normally good because the recipients have
enough time to read and understand the communication before they can respond
(Vaijayanthi et al 2010).
2.5.2 The disadvantages of written communication are:
(a) Time consuming
27
Written communication requires you to have enough time to prepare your message
and to send it and you need to follow the above steps in order to have well-constructed
message and this may take longer.
(b) Expensive
Written communication is costly when it comes to sending business letters,
memorandums and reports in a long-distance instance. This may include mail posting
costs.
(c) Inflexibility
Written communication is not flexible in a sense that you may not be able to recall
mistakes or miscommunications. Compare to verbal communication where you may
immediate correct yourself. Written communication cannot be stopped or recalled
once it has been sent. If you discover any mistakes after sending the written
communication, you unfortunately cannot do anything about it.
(d) Lack of secrecy
When the message is on paper, anyone who has access to the message can read it,
for example when you send a letter to one person and multiple persons have access
to your letter, then your secret is out. For instance, if you send a resignation letter to
the CEO of the company you might have to send it through the secretary and she
might read that letter (Vaijayanthi et al 2010).
External and internal communication will be discussed in the next section.
2.6 EXTERNAL WRITTEN COMMUNICATION
2.6.1 External written communication
External written communication is communication conducted in writing, with people or
organisations outside the organisation. Examples are the business letter, quotations,
orders, annual reports and so forth.
2.6.2 Internal written communication
Internal written communication is communication which is conducted in writing
between the staff of the organisation. Examples are memorandums, minutes, reports,
agendas and so forth (Quible 2015).
28
Read the scenario below and complete the following activities:
ACTIVITY 2.1 [26]
Scenario
Nonjabulo, born in KwaZulu-Natal (KZN) and working in a manufacturing company
as a supervisor, was unaware that she was making her colleagues in her section
angry. They believed she behaved arrogantly and that she seemed to think that she
is better than them. No one wanted to work with her. This puzzled her because she
did not understand why people around her were so unfriendly. Nonjabulo speaks
her mind, calling a spade a spade and saying exactly what is on her mind in her
writings and correspondence to her colleagues. Her writing is not professional. She
mixes issues and the tone of her messages in her letters, and often does not adhere
to business etiquette, both when she writes to her colleagues and external clients
such as suppliers and customers.
1.
Advise Nonjabulo on the steps of written communication, using examples. (10)
2.
Indicate to Nonjabulo the advantages and disadvantages of written
communication to improve her writing. (10)
3.
Inform Nonjabulo how she can apply internal and external written
communication.
(6)
We now look at the writing techniques. They are very important, therefore apply them
in your writing.
2.6.5 Effective written communication skills
Written communication is very common in business situations. Therefore, it is
important for everyone in an organisation, from the employee to the CEO, to develop
effective written communication skills. These may include business letter, reports and
memorandums.
29
We have come to the end of learning unit. I am now going to move to learning unit 2,
where you are going to learn about the business letter, reports and memorandums
(Quible 2015 & Ferreira 2016).
Now do the following activity.
ACTIVITY 2.2 [20]
Show Themba which writing techniques must be considered and applied when writing
a report. Use the scenario in activity 2.1. (20)
FEEDBACK
Your answer should be four paragraphs in length.
Study chapter 6, section 6.7, in the prescribed book.
We will now introduce you to learning unit 4.
2.7 BUSINESS LETTER, REPORT AND MEMORANDUM
In this learning unit, the business letter, report and memorandum will be discussed.
After studying this learning unit, you should be able to write a business letter, a
professional memorandum and a good report. Let us start with a business letter.
2.7.1 Business letter
A business letter is usually a letter from one company to another, or between such
organisations and their customers, clients and other external parties. The overall style
of a letter depends on the relationship between the parties concerned.
Format of a business letter
A business letter format can be a problematic subject, one that you really need to look
at before you fully understand it. Regarding a business letter format, there are different
options and styles that you can select in order to create a suitable letter for the situation
and occasion for which you are writing the business letter.
A business letter must be written in a professional manner. For you to be professional
in writing the business letter, you must be careful when writing and always pay
attention to the formatting. Use the sample business letter format ideas in your
prescribed textbook (Ferreira, 2016) and the below shared video:
30
https://www.youtube.com/watch?v=gMMaDoBacoU
2.7.2 Guidelines when writing a business letter
You must take note of the following:
•
Write simply and clearly
•
Write in the same way that you speak
•
Check twice
•
Create a favourable impression
•
Be courteous and polite (Ferreira 2016)
Study chapter 6, section 6.3.1 in the prescribed textbook, see/read the textbook for an
example of the business letter.
2.7.3 Layout of the business letter
Layout of the business letter should contain the following:
1.
Organisation’s letter head
2.
Name and address of the organisation
3.
Reference
4.
Date (month, day and year.)
5.
Prof/ Dr/Mr/Mr/Ms and full name of the recipient.
6.
Title/position of the recipient.
7.
Company’s name
8.
Recipient's address (postal)
9.
Recipient's address (physical)
10. Dear Ms/Mrs/Mr plus surname:
11. Subject: title of the subject
12. Body paragraph/s
13. Closing (Faithfully/Sincerely/Kind regards
14. Signature
15. Name
16. Title
17. Enclosures/attachments
ACTIVITY 2.3 [20]
31
An ordinary business letter can be used for a variety of different purposes. Discuss the
uses of a business letter. (10)
FEEDBACK
Your answer should be five paragraphs in length.
Study chapter 6, section 6.3 in the prescribed textbook.
Let us now look at the guidelines you can use to write a business letter.
Now do the following activity.
ACTIVITY 2.4 [25]
There is a tuckshop in your area selling stationery. You work at this tuckshop as a
buyer. You placed an order for stationery from your supplier, known as Madiba
Stationery Specialists. You ordered cartridges. They delivered cartridges of poor
quality. Write a letter to your supplier, Madiba Stationery Specialists, complaining
about the poor quality of the cartridges. (25)
FEEDBACK
Your answer should be one page in length.
Study chapter 6, section 6.3.2, and figure 6.1 in the prescribed textbook.
Listen to the above shared video.
2.8 REPORT WRITING
A report is normally written with a clear purpose and directed to a particular audience.
Specific information and the evidence are normally presented, analysed and applied
to a particular situation or problem. The information should be presented in a clearly
structured format. You must use headings so that the information is easy to follow and
understand (Ferreira 2016).
Now do the following activity.
ACTIVITY 2.5 [10]
2.5.1 What must be considered when writing a report? (5)
2.5.2 What is the purpose of writing a report? (5)
32
FEEDBACK
2.5.1 Requirements of writing a report.
Your answer should five sentences.
Study chapter 6, section 6.4.2, in the prescribed textbook.
2.5.2 The purposes of writing a report
Study chapter 6, section 6.3.1, in the prescribed textbook,
For the information on the purposes of writing a report. Now do the following activity.
ACTIVITY 2.6 [10]
Your sister was tasked by her manager to write a report on the company’s performance
over the last three months. Advise her on the purposes of writing a report and how she
can apply the purposes of report writing in her report. (10)
FEEDBACK
Your answer should be five paragraphs in length.
Study chapter 6, section 6.4.1, in the prescribed book.
We now look at the requirements of effective report writing.
2.8.1 Requirements for effective report writing
The following requirements are important:
The layout
Reports follow a particular format, which depends on the purpose of the report and the
structure.
The objective reporting
To write a report in such a way that it is not subjective, to have an objective point of
view, and not your own. The report must be accurate, relevant and no emotions should
be involved.
The concise and clear reporting
33
The report should be short and to the point, avoid unnecessary information and stick
to the relevant facts.
The language usage
The tone must be formal, using a simple language that can be understood. Avoid using
big words unnecessarily.
The tenses
Reports are normally written in order to report on something after a particular event
took place. Therefore, it is advisable to write it in the past tense. Reports are also
written in order to make recommendations, in which case future tense should be used
(Ferreira 2016).
Study chapter 6, section 6.3.1, in the prescribed textbook.
Formal and informal reports
Formal reports are based on a particular structure, which is introduction, body and
conclusion. Whereas, informal reports can be in any form of structure. Formal reports
have a formal tone and they use the third-person, whereas informal reports use firstor second-person narrative. Some of the informal reports use a professional tone,
although it is not required in many instances.
Another difference is the scope of both informal and formal reports. Formal reports
deal with the analysis of a specific topic in detail. Informal reports are normally brief
and include only relevant information.
Formal reports provide evidence to support the information in the report. Information
in informal reports includes no evidence, because informal reports are brief. Formal
reports cite the sources used in the report, while informal reports site no resources
(Ferreira 2016).
Study chapter 6, section 6.4.3, in the prescribed textbook.
Now do the following activity.
ACTIVITY 2.7 [25]
Your manager wants to change the lunch hour in your organisation from 12 am to 1
pm. The manager requests you as the supervisor to gather information from the staff
34
members regarding their feelings about the changes. Write a report, providing the
manager with feedback on the feelings of the staff members towards the proposed
change to the lunch hour. (Apply the requirements for effective report writing). (25)
FEEDBACK
Your answer should be one page.
Study chapter 6, section 6.4.2 and 6.3 in the prescribed textbook.
Practical hints when giving a presentation: Study chapter 6, section 6.5.2 in your
prescribed book for more information.
There are twelve hints to be considered when giving a presentation (Ferreira 2016).
Study chapter 6, section 6.5.2 in the prescribed textbook.
Now do the following activity.
ACTIVITY 2.8 [18]
Prepare a presentation for your manager. The manager would like to make a
presentation for your company’s customers to inform them about a new product to be
introduced to the market. Apply the twelve hints of writing a presentation in your
preparation of the presentation. (18)
FEEDBACK
Your answer should be one page. (Six marks for the discussion and one mark per hint
mentioned).
Study chapter 6, section 6.5.2, in the prescribed book.
We now look at the memorandum.
2.9 A MEMORANDUM
For more information study chapter 6, section 6.6 of your prescribed textbook.
A memorandum is an informal written brief, record note, summary or a reminder that
is used as a form of communication (Ferreira 2016).
Now do the following activity.
ACTIVITY 2.9 [6]
35
Write five sentences, using the term or word “memorandum.” (6)
FEEDBACK
Your answer must consist of five sentences.
Study chapter 6, section 6.6, in the prescribed textbook.
Style and layout of the memorandum: Study chapter 6, section 6.6.1–6.6.2 in the
prescribed textbook.
ACTIVITY 4.8 [20]
What is the difference between a memorandum and report? Include the advantages
of both the memorandum and the report in your answer. (20)
FEEDBACK
Your answer should be four paragraphs in length.
Study chapter 6, section 6.4–6.6 in the prescribed textbook.
2.10 EFFECTIVE WRITING TECHNIQUES
Ferreira et al (2016) suggests the use of the five Cs to check if your writing is effective.
These are:
Complete
The information must be sufficient for the reader for the message to be understood or
enable the reader to act or respond on the information given.
Clear
The reader must not be confused by your message; the reader must not have doubts
or misinterpret your message.
Concise
The style must help the reader to understand and to be able to respond on the
information given.
Coherent
36
The message must be in a logical and consistent manner for the reader to be able to
react on the information.
Correct
The information must be edited to avoid mistakes.
Study chapter 6, section 6.7, in the prescribed book.
Now do the following activity.
ACTIVITY 2.10 [15]
You want to buy cell phones for the employees in your organisation. Write a letter to
the cell phone company requesting a catalogue and a price list. Apply the five Cs in
your writing to check if you are writing effectively. (15)
FEEDBACK
Your answer should be two paragraphs
Study chapter 6, section 6., in the prescribed book.
ACTIVITY 2.11
Read section 10.1 and sub-sections 10.1.1–10.1.3 in the prescribed textbook and
answer the following questions.
1. Briefly explain the difference between internal and external communication, and
give examples of each. [6]
(Three √√√ marks for explaining internal communication and three √√√ marks for
explaining external communication).
2. List the practical hints for giving a successful presentation. [10]
(One √ mark per point).
3. Discuss the memorandum’s primary function as a communication source? [10]
FEEDBACK
1. Internal written communication
It is created and used within the organisation √
37
It is used between management and employees at various levels of the organisation
in order to reach organisational goals, √ for example interoffice memorandums, reports
and working-related papers, written procedures and office manuals √
External communication
This is sent to recipients outside the organisation, √ for example business letters, √
fax messages, advertisements and press releases √
2. Practical hints
•
Prepare information in the form of key points √
•
Prepare written communication in such a way that it is suitable for oral
presentation√
•
Read the message at the same rate as you would have spoken it √
•
Practise beforehand by reading the presentation loud √
•
Concentrate on pronunciation √
•
Pause slightly before starting a new sentence √
•
Try to make eye contact √
•
Lower your tone √
•
Hold your notes in such a way that there is no visual or acoustic barrier √
•
Project your voice clearly √
3. Primary functions of memorandums
● To convey information√
● To give to subordinates √
● To make proposals for the future√
● To remind the receiver √
● For authorising √
● To instruct the receiver √
● To inform the receiver √
● To request something for internal use √
38
(√ denotes one mark)
References
1. Ferreira, EJ, Erasmus, A & Groenewald, D (eds). 2016. Administrative
management. 4th edition. Cape Town: Juta.
2. Quible, ZK. 2015. Administrative office management an introduction. 8th
edition. New Jersey: Pearson Education.
3. Vajajanthi, D, Zehraja MA, Ravindran, NR & Sahayam, J. 2010. Management
practice (Sectretaryship). 1st edition. Tamilnadu: Chennai.
39
LESSON THREE: ELECTRONIC COMMUNICATION
Introduction
This lesson deals with electronic communication. Electronic communication has
become the new mode of organisational communication among employees in one
building, in regions, in other countries and even with customers globally. This includes
telecommunication systems, analogue and digital signals, various telecommunication
transmission modes, various networks connections, communication media, the
internet, intranets and extranets, and various modes of electronic communication
environment. Today, offices are automated and people are able to communicate and
work electronically via the network. Files and data can be transferred from one location
to another. The network is seen as the main contributor to the existence of the virtual
office.
In this lesson we differentiate between the traditional office and the electronic office
and discuss the benefits of an electronic office. This lesson is divided into three
learning units. In the first learning unit, we will explain more about the electronic
communication. In learning unit two you will learn about telecommunication networks
and the third learning unit is about modes of electronic communication. There will be
activities that you are required to do. Most of the answers are in your prescribed
textbook. I will refer you to the sections for answers. Answers will be included in the
final activity.
3.1 LEARNING OUTCOMES
After studying this topic, you should be able to do the following:
•
Explain and describe the purpose of telecommunication systems
•
Highlight the benefits and dangers of the virtual office
•
Conduct a study to determine the feasibility of the virtual office
•
Explain the features of the virtual office
3.2 KEY CONCEPTS
The following are the key concepts used in this study guide:
•
Telecommunication systems star topology
40
•
Network topologies systems
•
Bus topology ring topology
•
Network internet
•
Intranet extranet
•
Electronic mail instant messaging
•
Internet telephony voicemail
•
Groupware teleconferencing data conferencing
•
Video conferencing wikis
•
Podcast
3.4 INTRODUCTION
Computer supported cooperative work is one of the most important areas of the
current and future office application domain. It includes many kinds of office application
and presents sophisticated requirements concerning communication and distributed
systems support, document management and storage, and multimedia information
exchange (Sutherland, 2016). According to Laudon and Laudon (2011), a
telecommunication system consists of five components. Throughout the topic you will
be required to do various activities. The answers are in your prescribed textbook,
please refer.
Provide some teaching and background content in brief explanation(s) relating to
subtopics ahead of the readings below.
3.5 TELECOMMUNICATION SYSTEMS
3.5.1 Types of signals
Data is technologically communicated in either of the following two modes, namely
digital and analog (Quible 2015).
The difference between the two is as follows:
Digital: most business computers are digital in nature; they transmit data as digital
signals.
Analog: transmits data as low- and high-pitched sounds (Quible 2005).
41
Detail information appears in your prescribed textbook about the digital and analogue
signals.
Read chapter 7, section 7.1.1, in the prescribed book.
ACTIVITY 3.1 [15]
1. List some of the electronic devices that you use in your organisation. (10)
2. Is the cell phone an electronic device? Substantiate your answer. (5)
FEEDBACK
Your answer should be two paragraphs in length.
Study chapter 7, section 7.1, in the prescribed textbook.
ACTIVITY 3.2 [20]
Your brother is interested in electronics. He heard on the news that the minister of
communications said our televisions will migrate from analogue to digital. Explain to
your brother about analogue and digital signals and use examples in your answer.
Describe how these signals work and the advantage of migrating from analogue to
digital. (20)
FEEDBACK
Your answer should be two to three paragraphs in length.
Study chapter 7, section 7.1.1, in the prescribed book.
3.5.2 Communication media
A communication media can use different types of telecommunication transmissions.
(Ferreira et al 2016).
The examples described in your textbook are:
Twisted wire, coaxial cable, fibre-optic cable, optical network and wireless
transmissions.
(a) Twisted wire
Twisted pair is the ordinary copper wire that connects home and business computers
to the telephone company. To reduce crosstalk or electromagnetic induction between
42
pairs of wires, two insulated copper wires are twisted around each other. The wires
are twisted to reduce electromagnetic interference (EMI), which can alter voice and
date and make them clear.
(b) Coaxial cable
The coaxial cable is made two conductors, but they are constructed differently in order
to allow operation over a wider range of frequency.
(c) Fibre-optic cable
Fibre optic technology uses light instead of electricity to represent bits.
(d) Optical network
Optic networks provide reliable and fast medium for telecommunication.
(e) Wireless transmissions
Wireless transmission sends signals through air or space without being tied to a
physical line.
ACTIVITY 3.3 [10]
Your company would like to install a telecommunication transmission.
Discuss the different types of telecommunication transmission and advise your
manager on the best telecommunication transmission. (10)
FEEDBACK
Your answer should be two paragraphs in length.
Study chapter 7, section 7.2, in the prescribed textbook.
This learning unit discussed telecommunication systems. This is followed by a
discussion on telecommunication networks in learning unit 6.
3.6 TELECOMMUNICATION NETWORKS
Telecommunications, which is essential to today’s smooth business operations, is the
transmittal of data and information from one point to another. Network topology is the
physical layout of nodes in a network, which often dictates the type of communication
43
protocol used by the network. I will now, talk about the telecommunication networks
and the type of networks.
The next section describes these topologies, their advantages and disadvantages.
The availability of communication networks has facilitated the development of the
automated office systems (Quible 2015). Networks such as:
(a) A star network acts as a switcher for various functions that are performed.
Data files and networks are stored in the host computer.
Advantages of the star network are:
Data and information as well as software and certain hardware devices are
centralised. Users can be given the type of terminal that best meets their demands.
Disadvantages of a star network are:
•
Significant amounts of cables must be installed in the floor, walls and ceilings.
•
If the host computer fails, the devices that depend on the host for their operative
intelligence will be inoperative.
(b) The bus network: Computers and peripheral devices are connected to a network
cable.
The advantages of the bus network are:
•
The reduced amount of network cable that is required.
•
Its ability to function without a host
Disadvantages of the bus network are:
•
Timing or scheduling the transmitted data and information through the channel.
•
Mistiming can result in data collision.
(iii) The ring network interconnects several devices to a continuous network cable.
Advantages of the ring network are:
•
It is reliable.
•
The network does not require a host computer.
Disadvantages of the ring network are:
44
•
It needs special care.
•
It is difficult to identify the cause of a problem (Ferreira et al 2016)
(v) Hierarchical topology
The hierarchical topology is also known as tree topology, which is divided into different
levels connected with the help of twisted pair, coaxial cable or fiber optics.
Advantages of hierarchical topology are:
•
The hierarchical topology is generally supported by most hardware and
software.
•
In the hierarchical topology, data is received by all the nodes efficiently
because of point-to-point link.
The following are the disadvantages of hierarchical topology:
•
In the hierarchical topology, when the root node fails, the whole network
crashes.
•
The hierarchical topology is difficult to configure.
ACTIVITY 3.4 [18]
1.
Differentiate between the star and bus networks and list four advantages of each
network. (10)
2.
What type of network connection is illustrated in the diagram? Substantiate your
answer. (8)
FEEDBACK
1.
Your answer should be three paragraphs in length. (Five marks per network, 2
marks for the differentiation and four marks for the advantages of each network.
Study chapter 7, section 7.2.1, in the prescribed textbook.
2.
Your answer should be one paragraph in length. Two marks for identified type of
network and eight marks for substantiating.
Study chapter 7, section 7.2.1, in the prescribed textbook.
45
The next section describes the types of networks.
3.6.1 Types of networks
There are two types of networks, namely local area networks (commonly known as
LAN) and wide area networks (WANs) although we also have metropolitan area
networks, wireless and mobile networks. But the most important are the WANs and
the LANs.
LANs are used to interconnect computers and peripheral equipment located up to a
few hundred kilometres from one another. WANs are used to interconnect computers
and peripheral devices located thousands of kilometres from one another. There is a
greater need for LANs than for the WANs.
Uses of LANs and WANs
There are several uses of both LANs and WANs that are described in your prescribed
textbook.
Uses of LAN
•
Accelerated communication
•
Sharing computer and peripheral devices
•
Sharing computer files
•
Reduced software costs
Uses of WAN
•
Centralised electronic filing
•
Remote data entry
•
Centralised software storage
•
Electronic communication (Ferreira et al 2013).
Study chapter 7, section 7.2.2, in the prescribed textbook.
3.6.2 Key consideration for communication media
The following should be regarded as important for the communication media: capacity,
reliability, cost and distance (Haag et al 2004).
ACTIVITY 3.5 [20]
46
A network must be installed for the organisation where you work. Because your
manager knows you are studying Administrative Management at Unisa, she asks for
your advice. Which type of network connection would you recommend for the
organisation? Substantiate your answer by writing a memo to your manager. (20)
FEEDBACK
Your answer should be four paragraphs in length.
Study chapter 7, section 7.2.2, figures 7.6, 7.7 and 7.8, in the prescribed textbook.
3.7 THE INTERNET
The internet is the global system of interconnected computer networks that uses the
internet protocol to link many devices throughout the world. It is a network of networks
that consists of millions of public, private, academic and business systems. It also
includes government networks. The internet carries different types of information,
services and resources.
The intranet
An intranet is a network based on TCP/IP protocols (an internet) belonging to an
organisation, usually a corporation, accessible only by the organisation’s members,
employees, or others with authorisation.
The extranet
An extranet is a network that applies the internet technology and the public
telecommunication system to share some business information or operations with its
suppliers, buyers, customers, partners and other businesses.
ACTIVITY 3.6 [10]
How is fixed wireless communication used for internet connection? (10)
FEEDBACK
Your answer should be two paragraphs in length.
Study chapter 7, section 7.3–7.3.2, in the prescribed book.
3.8 MODES OF ELECTRONIC COMMUNICATION
47
Let us now look at the most common forms of electronic communication that can be
used in the organisation. These common forms of electronic communication are the
following:
Electronic mail
Electronic mail is a method of exchanging digital messages between computer users;
such messaging first entered substantial use in the 1960s and by the 1970s had taken
the form now recognised as e-mail. E-mail operates across computer networks, now
primarily the internet.
E-mail can be used for the following:
Transition of documents
Transferring of documents
Documentation
Transactions (Nel 2000)
Advantages and disadvantages of e-mails
Almost everything in life has advantages and disadvantages. E-mails are almost
instantaneous and can be sent to many recipients at once. One of the disadvantages
is that it can spread computer viruses. Nel (2000) identifies ten advantages of e-mails
and five disadvantages of e-mails. For detail information on the advantages and
disadvantages of e-mails, read chapter 7, table 7.1, in your prescribed textbook.
ACTIVITY 3.7 [15]
Discuss the ten advantages and five disadvantages of e-mails. (15)
FEEDBACK
Your answer should be two paragraphs in length/your answer should be 15 sentences,
(1 mark per advantage and disadvantage discussed).
Study chapter 7, section 7.4 and table 7.1, in the prescribed textbook.
Instant messaging
48
Instant messaging refers to short messages that are sent in real time over the internet.
The messages can include multimedia items, such as pictures, videos and voice
recordings.
Advantages of instant messaging
•
Messages are free to send.
•
Messages are received directly after being sent.
•
You can see if the message has been delivered.
•
You can see when your message has been read.
•
You can send a variety of messages; including text messages, pictures, videos,
music and web links.
•
You can create group conversations in order to discuss a specific topic or plan
events.
Disadvantages of instant messaging
•
Messages are not always saved.
•
It is an informal method of communication and might not be suited for businessrelated communications.
•
There is a pressure to respond immediately as people can see when you read
their messages.
•
Can be distracting as one message can lead to a whole conversation.
•
Low security, as instant messaging services, use a public networks.
Voicemail
Voicemail are normally through a telephone or cell phone and your contacts or anyone
can leave you a message through a voice note. One can use the network to leave
messages. The messages are stored and can be retrieved by the recipient at a later
stage. Think of a cellphone when it says the user is not available please leave a
message. You can then leave a message and the recipient can listen to it later and
respond to your message. Productive use of the message could be as a CEO you may
49
not have time to take messages/call due to your busy schedule, but you stored them
you can listen to them later when you are free.
ACTIVITY 3.8 [10]
Advice the staff on how they can use a voicemail productively in your organisation.
(10)
FEEDBACK
Study chapter 7, section 7.4.4, in the prescribed textbook.
Your answer should be two paragraphs in length.
Fax
When I was at my first job at Sasol II, I was asked by my boss to go and fax some
documents. I spent more than 15 minutes looking at the machine, because I did not
know what it was. It was the first time I saw it. It is a helpful communication tool that
you can use to send documents over a long distance. You insert the documents and
dial the number to which documents are sent and transmitted electronically to the
recipient. The recipient can receive the documents almost immediately. You need a
cover page, the recipient name, company name and the fax number. It is also
advisable to include your particulars on the document as well.
Groupware electronic communication
This can be used by a group working on a particular project to enable the group to
communicate easily among themselves. The groupware has six capabilities, namely:
Group writing
Electronic mail
Meeting and appointment scheduling
Shared timelines
Electronic meetings
Shared databases
Read chapter 7, section 7.4.6, in your prescribed textbook.
50
ACTIVITY 3.9 [15]
A new employee starts working at your company. The manager asks you to teach the
new employee how to operate the fax machine.
Discuss how the fax machine operates and how it can be used to benefit the
organisation. (15)
FEEDBACK
Your answer should be two paragraphs in length.
Study chapter 7, section 7.4.5, in the prescribed textbook.
Teleconferencing
A teleconference is a telephone meeting among two or more participants involving
technology more sophisticated than a simple two-way phone connection. At its
simplest, a teleconference can be an audio conference with one or both ends of the
conference sharing a speaker phone. With considerably more equipment and special
arrangements, a teleconference can be a conference, called a videoconference, in
which the participants can see still or motion video images of each other. Because of
the high bandwidth of video and the opportunity for larger and multiple display screens,
a videoconference requires special telecommunication arrangements and a special
room at each end. As equipment and high-bandwidth cabling become more
commonplace, it is possible that videoconferences can be held from your own
computer or even in a mobile setting.
Data conferencing
Data conferencing is sharing data interactively among several users in different
locations. Data conferencing consists of whiteboards and application sharing and are
often used in conjunction with an audio or videoconferencing connection (Ferreira
2013).
Video conferencing
Video conferencing allows two or more people to communicate simultaneously
through the two-way video and audio transmissions. It is also called “visual
collaboration” and it is a type of groupware.
51
Videoconferencing differs from videophone calls in that it is designed to serve a
conference or with the introduction of relatively low cost, high capacity broadband
telecommunication services in the late 1990s, coupled with powerful computing
processors and video compression techniques, has made significant inroads into
business, education, medicine and the media.
Blogs
Blogs are about events; they are updated often with the latest information appearing
at the top of the screen. Blogs are mostly used to disseminate information.
Podcasts
Users can subscribe to a podcast. Subscribers use it to get information and
accessibility to information. Companies also use it to inform its customers of their
products and services. This is mostly multi-media companies such as radio stations,
and tv channels.
Cellular phones
Almost everyone, even school kids, have a cellular phone. Cellphones are convenient
to own. They have become a necessity more than a convenience. People can reach
you anywhere as long as there is a network signal. If you have a roaming facility you
can be reached anywhere in the world.
ACTIVITY 3.10 [8]
You are a manager in your company based in KwaZulu-Natal. You want to interview
a candidate for a position in your company. The candidate is in Cape Town. Which
electronic communication will you use? (8)
FEEDBACK
Your answer should be two paragraphs in length.
Study chapter 7, section 7.4.8–7.4.10, in the prescribed textbook.
ACTIVITY 3.11 [10]
Discuss why you chose to use the type of an electronic communication chosen above
in activity 9. (10)
52
FEEDBACK
Your answer should be two paragraphs in length.
Study chapter 7, section 7.4.1–7.4.15, in the prescribed textbook.
Electronic communication has been installed in Tshabalala Retailers and it is used in
all its offices throughout the country. Top management asked you to teach the staff
about the different types of electronic communication.
Distinguish between the following types of electronic communication to be used by
Mpungose Retailers staff members:
•
Teleconference
•
Data conference
•
Video conferencing
(Three marks each for teleconferencing, data conferencing and video conferencing.)
(9)
ACTIVITY 3.11 [10]
Read sub-sections 7.1–7.4.15 in the prescribed textbook and answer the following
questions.
1. Describe a telecommunication system and its components. (12)
2. List eight reasons why an electronic mail (e-mail) is used. (8)
FEEDBACK
Answer 1
Telecommunication is the communication of information by electronic means, usually
over some distance. The telecommunication environment provides connectivity on
demand by providing communication channels for text, voice and video images. The
telecommunication system is described as a collection of compatible hardware and
software arranged to communicate information from one location to another. √√
A telecommunication system consists of the following components:
•
Computers that are needed to process the information. √√
53
•
Terminals or other input/output devices whereby data is sent or received, for
example, a fax machine. √√
•
Communication channels which are the links by which data or a voice is
transmitted.
•
Sending and receiving devices in a network, communication channels use
various communication media, for example telephone lines. √√
•
Communication processors that provide support functions for data transmission
and reception.
•
Communication software which controls input and output activities and
manages other functions of the communications network. √√
Two (2) marks for describing telecommunication system and ten marks for the
components.
Answer 2 (Table)
•
To transmit documentation between an organisation and its major clients √
•
To transfer accounting documents, for example, monthly financial statements
between the head office and the branches √
•
To document payrolls, employment and salaries √
•
To document transactions between an organisation and its banks √
•
Any documentation that moves regularly from one point to another √
•
To transmit documents when time and safety of documents are critical √
•
To transmit documents that would normally have been sent by post √
•
Sales orders √
One (1) mark per point mentioned
Answer 3
Teleconferencing
Teleconferencing is electronic communication between two or more people at two or
more locations. In its simplest form, it is the telephone conference call, which has been
available for many years. With speakerphones in each office, the number of
participants can be greatly increased. When using a two-way call, all participants can
speak to all other participants. √√√
54
Data conferencing
Data conferencing is teleconferencing that enables two or more people to
communicate at the same time. With data conferencing, users at distant locations are
able to edit and modify data files (text files, such as word processing documents and
graphic files). √√√
Video conferencing
This includes televised pictures of the participants, either as still shots or in full, like an
ordinary TV. It can be either one-way or two-way, with several variations of each. It
requires special video rooms and equipment, which can be expensive. It can promote
remote collaboration from different locations or fill in personnel expertise gaps. √√√
(Two marks for the theory and one mark for the example). The allocation of marks will
assist and guide in the length of your answer for your activities, assignments and most
importantly your examinations.
References
1. Ferreira, EJ, Erasmus, A & Groenewald, D (eds). 2016. Administrative
management. 4th edition. Cape Town: Juta.
2. Laudon, KC & Laudon, JP. 2011. Management information systems: managing the
digit firm.12th edition. New Jersey: Prentice-Hall.
3. Nel, R. 2000. Office practice for management assistance. Book 2. Sandton:
Heinemann.
4. De Beer, AA & Erasmus, AW (eds). 2016. The business and office environment.
2nd edition. Cape Town: Juta (ISBN:9781485111801).
5. Oz, E. 2004. Management information system. 4th edition. Boston: Thomson
Learning
6. Prinsloo, D. 2015. The contemporary office. 1st edition. Cape Town: Juta.
7. Quible, Z. 2015. Administrative office management an introduction. 8th edition. New
Jersey: Pearson Education.
8. Schill, A. 1995. Cooperative office systems. 1st edition. New Jersey: Prentice-Hall.
55
9. Sutherland, E. 2016. “The case study in telecommunications policy research”. Info,
18(1): 16-30.
10. Vajajanthi, D, Zehraja, MA, Ravindran, NR & Sahayam, J. 2010. Management
practice (Secretaryship). 1st edition. Tamilnadu: Chennai.
56
LESSON 4: BUSINESS MANAGEMENT PRINCIPLES
Lesson 4 is extracted from the below reading:
De Beer, AA & Erasmus, AW (eds). 2016. The business and office environment. 2nd
edition. Cape Town: Juta (ISBN:9781485111801).
4.1 INTRODUCTION
In this topic you will learn about business management, the levels of management, the
relationship between business and establishment and factors of production. We will
also provide you with the understanding of business organisations, specific knowledge
of the different management functions and we will cover management principles and
the different sectors in which the enterprises operate. You will develop an
understanding of business organisations. Although there are many different definitions
of management, they all amount to management being a process of planning,
organising, leading, co-ordinating and controlling people and resources to achieve the
objectives of the business efficiently and effectively. The business world is a complex
system of individuals and business organisations that involves the activity of
transforming resources into products and services in order to meet the needs of the
people (Nel 2014).
4.2 LEARNING OUTCOMES
After studying this topic, you should be able to do the following:
•
Discuss the scope of business management.
•
Discuss how human needs can be satisfied.
•
Explain the factors of production.
•
Distinguish between the business and an establishment.
•
Discuss the relationship between the business functions.
•
Distinguish between the sectors in which the business operates.
4.3 KEY CONCEPTS
The following are the key concepts used in this study guide:
•
Business management levels of management
57
•
Business function manager
•
Enterprise operations management
•
Establishment office management
•
Factors of production public management
•
Financial management purchasing management
•
General management satisfaction of need sector
4.4 BUSINESS MANAGEMENT
Business management can be described as a science that concerns itself with our
profit-oriented market system. It studies what business is, how to establish the
business and manage it in an effective and efficient way to ensure the highest profit
for business (Nel 2014).
4.4.1 The levels of management
There are three levels of management that are found in most organisations, namely
top management, middle-level management and low-level management. If you can
distinguish between the three levels of management, you should be able to understand
what management does at each level. The manager will be in one of the
abovementioned levels in an organisation and will be expected to perform managerial
tasks. The managerial tasks performed at different management levels are not exactly
the same. Students should have a good understanding of and be able to differentiate
between different levels of management in an analytical and conceptual manner.
58
Source: www.shutterstock.com
Top management
Responsible for controlling and overseeing the whole organisation. They formulate
strategy, policies, long-term plans and objectives. They make strategic decisions.
Middle management
They formulate tactical plans and objectives, provide functional strategy and provide
guidelines for first line mangers.
Lower management
They implement the operational plans and objectives, make on-spot decisions, and
deal with transactions of day to day operations (Ferreira 2016).
Now do the following activity.
ACTIVITY 4.1 [5]
Take an organisation of your choice and explain the scope of business management
of the organisation.
ACTIVITY: Discussion forum
Topic about the organogram
59
FEEDBACK
Your answer should be a maximum of five paragraphs in length. Refer to the study
guide for the answer.
Refer to the below additional reading, chapter 1, section 1.4–1.5:
De Beer, AA & Erasmus, AW (eds). 2016. The business and office environment. 2nd
edition. Cape Town: Juta (ISBN: 9781485111801).
4.4.2 Management tasks
All managers, including tactical managers, engage in certain interrelated activities to
achieve desired business goals. These entail four fundamental management
functions, namely planning, organising, leading and controlling.
Planning: is typically the starting point in the management process. In its simplest
form, planning means determining the future position of the business and deciding on
the strategies needed to reach that position. During the planning phase, the vision,
mission and goals are determined, as well as the resources needed for the task. In
terms of your portfolio, once you have identified a problem or opportunity, you will need
to determine the resources available to assist you in negating the problem or
capitalising on the opportunity. The availability, or lack of these resources will inform
the possible solutions to your problem or opportunity.
Organising: is the second step in the management process. A manager must design
and develop an organisational system to implement the plans. Organising can
therefore be defined as the process of delegating and co-ordinating tasks and
allocating resources to achieve goals and objectives. Organising also involves
developing a framework or organisational structure to indicate how and when people
and other resources should be deployed in order to achieve goals.
The success of a business lies in directing the different resources towards the
achievement of a common set of goals.
Leading: A manager must lead employees as they perform their daily tasks. Leading
is the process of influencing employees – who also are resources – to work willingly
towards achieving goals.
60
Not all employees do the things they say they will do and the things that they are
supposed to do. Therefore, goals will not be met without follow-up processes.
Controlling: is the fourth and last process of establishing and implementing
mechanisms to ensure achieving goals that are set during planning stage. An
important part of controlling is measuring progress towards achieving an objective and
taking corrective action when necessary. Moreover, it provides the feedback results
that are an important aspect of control and serves as an input for the planning process.
Monitoring and control: is one of the functions of a manager, which ensures that all
the functions work together to attain the organisation’s overall goals. Your
department’s activities in achieving these goals need to be monitored so that
corrective action can immediately take place. Tactical or functional control can be
applied to all the major functional areas in the organisation, namely finance, human
resources, physical resources and information. Should a plan require correction, all
functional areas may need to take action (Nel 2014).
To add on the above topic watch the video below:
https://www.youtube.com/watch?v=eSXP7VgGcz0
Now do the following activity.
ACTIVITY 4.3 [15]
Your company would like to get a new photocopy machine. They want to either buy or
rent it. Explain how management can apply the management tasks in deciding
whether to rent or buy.
FEEDBACK
Your answer should be five paragraphs in length.
Refer to the study guide for the answer.
Refer to the above shared video for the answer.
4.5 FACTORS OF PRODUCTION
Factors of production refer to an economic term to describe the inputs that are used
in the production of goods or services in the attempt to make an economic profit. The
factors of production include land, labour, capital and entrepreneurship. The resources
61
of any community are scarce, and they can easily be exceeded by its multiple needs.
Resources are therefore the basic inputs in the production of products and services,
and they are known as production factors (Nel 2014).
The following factors of production can be identified:
Natural resources
They are also known as production factor of land and include agricultural land,
industrial sites, residential stands, minerals, forests, water and all such resources that
nature puts at our disposal. These natural resources cannot be multiplied as they are
limited and known as scarce resources for any country (Du Toit 2010).
Human resources
This involves people applying their labour, skills and talents and who are employed by
organisations to create services and products, produced by that particular organisation
that employs them. In return the organisation pays their employees for their labour (Du
Toit 2010).
Capital
This does not necessarily represent money. It includes the buildings, machines,
computers and any resources used by the employees to offer services or to produce
the products. The owners or suppliers of capital are paid in the form of rent or interest
(Du Toit 2010).
Entrepreneurship
Frederick, O'Connor and Kuratko (2018) defined entrepreneurship as “a process of
creating value by bringing together a unique package of resources to exploit an
opportunity’’. Entrepreneurs are those individuals who are prepared to take risks in
providing services and goods for their society (Du Toit 2010).
Now do the following activity.
ACTIVITY 4.2 [12]
62
Read the following case study and answer the questions that follow.
COVID-19 and the national lockdown in South Africa have had a devastating
impact on small businesses. As a result, many are taking the decision to look
elsewhere, rather than starting over again in a country deep in recession.
Businesses in the tourism and hospitality industry have been particularly hard-hit,
given the uncertainty of around future travel. Many restaurants and bars were
forced to close permanently over the past six months, forcing owners to
contemplate the future. Bloomberg’s Misery Index, which relies on the age-old
concept that low inflation and unemployment levels show how good a country’s
residents feel, ranks South Africa as the third-worst country among major
economies (BusinessTech 2020).
Your answer should be a maximum of ten paragraphs in length. Refer to the study
guide for the answer.
4.2.1 According to Business Management, factors of production are identified as
methods to satisfy needs. Discuss factors of production. (8)
4.2.2 Based on the above COVID-19 case study, identify the most affected factor of
production. Motivate your answer. (3)
FEEDBACK
Read the above case study to answer the above question.
Refer to the study guide for answers.
Refer to the below additional reading, chapter 1, section 1.4–1.5.
De Beer, AA & Erasmus, AW (eds). 2016. The business and office environment. 2nd
edition. Cape Town: Juta (ISBN: 9781485111801).
63
LESSON 5: CLASSIFICATION OF THE BUSINESS AND ITS ENVIRONMENT
Lesson 5 is extracted from the below reading:
De Beer, AA & Erasmus, AW (eds). 2016. The business and office environment. 2nd
edition. Cape Town: Juta (ISBN: 9781485111801).
5.1 INTRODUCTION
In this topic you will understand that the field of management is undergoing a revolution
that asks managers to do more with less, to engage employees, to see change rather
than stability as a measure of things. You will also understand to possess a vision and
cultural values that allow people to create a truly collaborative workplace. In the
previous lesson 4 you learned about the business world is a complex system of
individuals and businesses, which in a market economy, transforms limited resources
into products and services in order to meet the unlimited needs and wants of people.
All these happen in the turbulent, continuously changing environment. Resources that
a business needs as inputs are taken from the environment and the outputs that a
business produce are “given” back to the environment.
Therefore, a business can be thought of as an interdependent open system in the way
it depends on the environment in which it operates. The system approach to
management offers a framework in which the various sub-systems of an organisation
can be studied separately and in terms of the organisation as a whole (Nel 2014).
In this topic you will learn about the business management environment, the
characteristics of the business environment, customer, competitor, environment and
market analysis, the internal and external environment and the macro environment.
You will also learn about the influence of management on the micro-environment, the
market-environment, competition, suppliers of resources and services, economic
environment, physical environment and value chain.
5.2 LEARNING OUTCOMES
After studying this topic, you should be able to do the following:
•
Describe the micro-environment of the business.
•
Explain the market-environment.
64
•
Explain the variables that influence the business’ growth and existence.
•
Identify the macro-environment.
•
Identify all the forces and influences that affect the business.
5.3 KEY CONCEPTS
The following are the key concepts used in this study guide:
•
Business management
•
Environment
•
Characteristics
•
Competitor analysis
•
Customer analysis
•
Internal environment
•
External environment
•
Macro-environment
•
Market analysis
•
Micro-environment
•
Market-environment
•
Competition
•
Suppliers
•
Resources
•
Services
•
Economic environment
•
Physical environment
5.4 CHARACTERISTICS OF THE BUSINESS ENVIRONMENT
You should note the following characteristics:
● The business environment changes constantly
Today, change is a constant in most businesses simply because of the dynamic nature
of the management environment. Changes in the environment impact in different ways
on business (Nel 2014). South Africa is a member of the global economy. For example,
a change in a country which is our trading partner, that change will affect our economy
65
and thus the business. If the value of the rand losses its buying power as we witness
recently, business will be affected.
● The business must be in step with the changing environment.
In the past the emphasis was on the protection of the ozone layer. Most businesses
adapted to this call and today ozone friendly products are available on many shop
shelves (De Beer et al 2016).
SWOT ANALYSIS
In business there is an acronym used which is called SWOT, it denotes strengths,
weaknesses, opportunities and threats. Strengths and weaknesses refer to internal
factors, which imply that resources and experience are readily available to business.
Examples are: Financial resources, such as funding, sources of income and
investment opportunities. Physical resources, such as your company's location,
facilities and equipment. Human resources, such as employees, volunteers and target
audiences, opportunities and threats are referred to as external forces such as
government offering business incentives (Opportunity) and social unrest such the
looting that happened in 2021 (Threats).
Opportunities and threats arise as a result of certain occurrences in the environment
and they influence the functioning of the business whereas, an opportunity is a
favourable situation for the business (De Beer et al 2016), a threat is an unfavourable
situation for the business.
●
The establishment, growth and continued existence of the business are directly
influenced by the business environment. Businesses analysing the environment
from time to time; they must keep abreast of the new developments. Technology
is developing at an increasing tempo and business must adapt to change in order
to be competitive in the business world. Failure to do so, might result in the
business shutting down (De Beer et al 2016).
●
The business environment influences the future of the business.
Management should adapt and make changes in the strategy of the businesses in
order to survive. The business must keep on surveying the environment and make
adjustments accordingly (De Beer et al 2016).
66
ACTIVITY 5.1 [20]
Your sister has opened a clothing company in the township. She employed 13 people
that include a driver, a cleaner and a cashier. She has bought a building at the
business site. She orders raw material in town. She makes payment for raw material
at the end of the month and pays her staff on a fortnight basis. The products such as
jeans, skirts, shirts, jerseys and socks are sold to the people in the township. Her target
market is the poor communities.
Describe to your sister the business characteristics that affect the business’ ability to
serve its customers. Use examples from the above scenario.
FEEDBACK
Your answer should be five paragraphs in length.
Answer can be found in this study guide.
Refer to the below additional reading, chapter 2, section 2.4–2.6.
De Beer, AA & Erasmus, AW (eds). 2016. The business and office environment. 2nd
edition. Cape Town: Juta (ISBN:9781485111801.
5.4.2 The internal and external environments
The internal environment is also known as the micro-environment, over which the
business has control. The micro-environment is expressed in the mission and
objectives of the business. The reason for the existence of the business is indicated
by its mission. The mission is the statement that defines the most important activities
of the business for the present and particularly in the future.
The second component of the internal environment is the management of the
business, and the various functions of the business. We explained the various function
of the business in the previous topic.
The third component is the resources of the business that interface with the external
environment which must be determined. In this case the strengths and weaknesses of
the business are determined.
The external environment
67
The external environment is also known as the macro-environment. The business
does not have control over the macro-environment. This environment exists outside
the business and it affects the growth of the business, it consists of the market and
macro-environments.
Customer analysis
Different consumers have different needs for particular products and services. The
best way to determine the needs of consumers in terms of opportunities for and threats
to the business is through market segmentation. Market segmentation means that the
market is divided into efficient and profitable segments. Once the target market
segment has been selected, the business must decide how best to compete effectively
in it (Cant 2013).
Competitor analysis
Competitor analysis refers to the strategy followed by management when analysing
its customers so that their buying behaviour can be understood and the customer
group on whom the strategy would have the most favourable effect can be identified.
It is also a very useful instrument for helping the business to determine its weaknesses
and strengths and consequently point out the potential opportunity. It is seldom, if ever,
that a product or service will not experience competition. The result of the analysis will,
at the end of the day, determine the price at which a product will be sold (Cant 2013).
Analysis of environmental trends
This is about environmental forces outside the business that are discussed under the
macroenvironment.
Analysis of the market
This has to do with the business examining the supply and demand of the product or
services.
ACTIVITY 5.2 [15]
Differentiate between the internal and external environments and indicate how the
external environment can be analysed.
FEEDBACK
68
Your answer should be four paragraphs in length.
In the next sections we are going to discuss the micro-, macro- and marketenvironments.
5.5 MICRO-ENVIRONMENT
This environment includes all those internal variables that can be controlled by
management, such as the staff to be appointed, funds to be used, the mission and the
marketing objectives of the organisation. The micro-environment is the heart of the
business. Management has direct control and influence over the mission of the
business (Cant 2018). The following are variables in the micro-environment:
Mission statement and objectives of the business
The mission statement is the reason why a business exists and what its goals are, and
how it can accomplish its goals and objectives. A mission addresses the fundamental
purpose that sets a company apart from others of its kind and identifies the scope of
its operations in product and market terms. Under this heading grouped the strategy,
policies, long term plans and objectives of the business.
The business functions
For a business to function properly, it must be structured in terms of divisions,
departments or functions such as administration, human resource management,
finance, production, public relations, to name but a few.
The production factors of the business
The business cannot function without resources. It needs the resources for production
purposes. Production factors include labour, raw material (natural resources such as
minerals, timber and water), capital and entrepreneurship (Nel 2014).
ACTIVITY 5.3 [10]
Discuss and advice your sister on the environmental forces that affect the business’
ability to serve its customers. (Use examples from the above scenario).
FEEDBACK
Your answer should be two paragraphs in length. For answers refer to the study guide.
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5.6 MARKET-ENVIRONMENT
The market environment is the sum-total of all factors and/or variables that exist
externally and can positively or negatively influence the growth or decline and
existence of the business (Ferreira 2011). The business has limited control over, but
in some cases can influence the market environment.
To understand the interaction between the business and its market-environment, we
need to discuss the variables in the market-environment in detail. The following are
the variables in the market-environment.
5.6.1 Suppliers of resources and services
Businesses need certain inputs in order to provide outputs. These inputs are, for
example capital, raw material and labour, which are obtained from suppliers. Inputs
from suppliers are therefore very important and the business must obtain inputs of the
right quality, price and quantities in order to be really and truly competitive. Raw
material is required by all the business in the manufacturing or production sector. The
business must therefore obtain the raw material from the suppliers as an ongoing
process or regularly. Businesses obtain funding from shareholders, banks and so
forth. Labour is obtained by employing people, who will be trained to produce the
business’ products.
5.6.2 CONSUMERS
The business comes into existence because of consumers and without consumers
there can be no businesses. The consumers have certain needs that businesses want
to satisfy in exchange for their money. Businesses must conduct a need analysis and
produce the products or offer the services that will satisfy the consumers’ needs in
exchange for their money. Consumers have the purchasing power.
•
Market
A market is the set of actual and potential buyers of a product. These buyers share a
particular need or want that can be satisfied through the exchange relationship with
the business (Armstrong 2009).
•
Examples of consumers
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A vegetable and fruit store mostly sells vegetables and fruit. Therefore, consumers or
buyers who need vegetables or fruit will visit this store to buy its’ products in order to
satisfy their needs.
A liquor store sells liquor. A consumer/buyer who wants beer or wine will go to this
store to buy liquor in order to satisfy his/her need. Butcheries sell meat. A customer
who needs meat will enter this store in order to buy meat. From the above examples,
we can identify more than one type of market.
The business operates in the following customer markets:
•
The consumer market
It consists of consumers that buy goods and services in order to satisfy their personal
needs or for personal consumption.
•
Business market
The buying of goods and services is done in order to be used in producing other goods
sold by the business that purchased the goods or services in the first place.
•
Reseller market
A business may buy goods and services wholesale in order to resell those goods and
services on a retail basis in order to make a profit.
•
The government market
The government buys goods and services from the private sector in order to provide
services to the communities.
•
The international market
It consists of all the buyers in other countries, producers, resellers and governments.
Consumers have certain rights in their interaction with the business within the
marketplace. The Consumer Council focuses on informing the consumers of their
rights and makes them aware of these rights. It can challenge the business if
consumers’ rights are violated.
The rights of the consumer are summarised as follows:
●
The right to be truthfully informed-about the product and services offered.
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●
The right to exercise their personal choice; consumers have a right to select the
product or services for which they are prepared to pay.
●
The right to be heard; consumers must be respected and be allowed to lodge a
complaint if they are dissatisfied with the product or service.
●
The right to be protected; consumers must be protected, and their safety must be
exercised. It is therefore extremely important for businesses to explore every
aspect concerning the consumers’/buyers’ needs, buying power and purchasing
behaviour. You should remember that the variables in the macro-environment
influence the variables in the market-environment (Cant 2013).
•
Competition
As a variable in the market-environment, competition can be described as ‘a situation
in the market-environment in which several businesses offering more or less the same
product or service compete for the patronage of the same consumer. Competition
creates an environment whereby a certain business would like to be the best in the
market by offering the best services and/or products. Businesses offering the same
product or service tend to compete with each other for customers by claiming that they
are the best at offering good quality products or services. They try to convince the
consumers to buy their products and use their services, instead of going somewhere
else for these goods or services. Competition exists in many products. We can see
and hear many advertisements on TV and radio, as many businesses try to outdo one
another in order to convince the consumer to use their products or services.
We can look at the car market:
BMW and Mercedes Benz compete for customers. The mere fact that there are many
businesses offering the same product is enough reason for competition to exist. The
business must provide better customer satisfaction and value for their money than its
competitors. Businesses must strive to satisfy the consumer’s needs. Businesses
must keep on conducting market research in order to check on consumers’ needs and
strategise and accordingly produce the best product and offer the best service more
so than that of their competitors. Businesses compete with one another’s products or
services, and distinction can be made between the following types of competition:
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•
Competition between the needs of the consumer
A father or mother may take his family to a shopping mall, ready to spend a certain
amount of money for his kids. He/she can take them for lunch in the one of the
restaurants in the mall and later buy them clothes. This is called competing for the
disposable income of the consumer between the various businesses that sell the same
product or service.
•
Competition between the various means in which needs can be satisfied
Let us assume that a person has a study in his house. The person would like to be
comfortable when in the study, and he may buy a comfortable table, chair and might
install the air conditioner, so that it is warm in winter and cool in summer.
•
Competition between product forms
A mother who wants to buy kitchen products, purchases pots, dishes, cutlery or a
kettle.
•
Competition between trademarks
A mother who buys washing powder must now choose between the different
trademarks or brands, such as OMO or SURF washing powder (Nel 2013).
•
Public groups
The business market-environment includes different groups of the public as well. A
public group is any group that has an actual or potential interest in or impact on an
organisation’s ability to achieve its objective (Armstrong 2009).
The public groups are:
•
Financial public groups like banks and investment houses.
•
Media public groups such as newspapers and magazines.
•
Government public laws.
•
Citizen action groups, for example non-government organisation.
•
Local public institutions like community organisations and community watches.
•
General public groups, the consumers and general public.
•
Internal public the employees and board of directors and so forth (Armstrong
2009).
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ACTIVITY 5.4 [20]
1. Explain the role of business in the customer markets in which it operates under
the following headings (add examples to each heading): (12)
•
consumer market
•
business market
•
international market
2. Discuss how businesses can react to the market-environment (8)
FEEDBACK
For each activity, your answer should be four paragraphs in length.
You can find the answer in this study guide.
Refer to the below additional reading, chapter 2, section 2.6.
De Beer, AA & Erasmus, AW (eds). 2016. The business and office environment. 2nd
edition. Cape Town: Juta (ISBN: 9781485111801.
5.7 MACRO-ENVIRONMENT
The third and last component of the marketing-environment is the macro-environment.
The macro-environment is very much dynamic; it changes rapidly in the global market.
The effect of the changes is very rapidly felt by businesses.
Let us now look at the variables or sub-environments of the macro-environment:
•
Political and legal environment
Politics have major impacts on business. If the country is stable then investors from
within or outside the business can invest more money in the business. If the situation
in the country is unstable then this will have a negative impact as people outside and
inside the country may be hesitant to invest and this may result in higher interest rates,
inflation, unemployment and a possible low rating of the country. The government
must also pass laws and regulations that will make it attractive for investors. The
government of the day has an influence on business through the fiscal and monetary
policies of the country.
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•
International environment
Businesses should also look at the international environment and not only the local
environment because factors in the international environment play a role in the
existence and growth of the business.
•
Physical environment
The physical environment refers to the natural resources that the business utilises in
their production and in offering a service. These natural resources are water, oil, coal,
uranium, gold and other minerals. These natural resources are not available in
abundance and will not be available forever. They diminish over time and get
expensive as well. Business should be aware of these factors.
•
Technological
Technology is so advanced and keeps changing almost every day. Businesses should
pace themselves in order to cope with the changes in this sub-environment. The
technological environment embraces numerous aspects that give rise to new products
and services made available to the market. The microwave oven is so convenient
today to an average household and it was unknown in the previous generation.
•
Economic environment
The economic environment includes the following:
•
Inflation
•
Interest rate
•
Unemployment
•
Consumer income
•
Exchange rate
•
Monetary policy
•
Business cycle (Cant 2013)
This environment affects everyone, consumers or businesses. The economic factors
in a country in general and in a specific area in which the business operates will have
some implications for the business.
o The role of business in society
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Over and above providing products and services, businesses are also under pressure
regarding social responsibility, affirmative action, business ethics, consumerisms and
environmental damage. A discussion of these factors follows:
o Affirmative action
This was as a result of the democratic era in South Africa, after 1994. The purpose
was to create equal employment opportunities for all employees such that the
composition of the workforce is proportionate to the groups that make up the
population as a whole.
o Business ethics
Business ethics although closely related to social responsibility, specifically focuses
on the ethical behaviour of managers and executives in the business environment.
o Consumerisms
This entails the social force that protects consumers from unsafe products and poor
service as well as malpractices of businesses to the customers by exerting moral and
economic pressure on businesses that commit any form of malpractices. For example,
a malpractice can be the manufacturing and selling of dangerous products. We have
groups like Treatment Action Campaign (TAC) and Right2know in South Africa. We
also have the South African National Union (SANU) that acts as a consumer
watchdog. We also have the Consumer Act (no 68 of 2008) as a means for consumer
protection.
o Environmental damage
Many businesses are responsible for pollution. They pollute water, air and soil in their
production processes. Communities often form pressure groups in order to protect the
environment.
o Social responsibility
This will include factors such as the provision of housing, employment, safe workplace,
concern about health issues, environmental awareness and the empowerment of
previously disadvantaged individuals, economically and managerially (Du Toit 2010).
To add on the above topic watch the below shared video:
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https://www.youtube.com/watch?v=Gv5fza6wHE4
ACTIVITY 13.1 [20]
Mr Zama is a sole trader who operates a welding business based in Soshanguve.
However, Mr Zama is contemplating to become a private company and he is willing to
expand into a new location in Lesotho. Identify and explain macro-environment
forces that Mr Zama should consider as a legal entity and expanding to a new location
outside of South Africa. (20)
FEEDBACK
Your answer should be two paragraphs in length for each activity and 10 marks
maximum will be allocated for each paragraph.
You can find the answer in this study guide.
Refer to the video above for more clarity.
Refer to the below additional reading, chapter 2, section 2.7.
De Beer, AA & Erasmus, AW (eds). 2016. The business and office environment. 2nd
edition. Cape Town: Juta (ISBN: 9781485111801).
References
1. Armstrong, G & Kotler, P. 2009. Marketing: an introduction. 9th edition. Pearson:
Prentice-Hall.
2. Cant, M. 2013. Marketing: an introduction. 2nd edition. Cape Town: Juta.
3. Cronje, GJ, du Toit, GS, Motlatla, MDC & Marais, AK. 2007. Introduction to business
management. 8th edition. South Africa: Oxford University Press.
4. De Beer, AA & Erasmus, AW. 2016. The business and office environment. 1st
edition. Cape Town: Juta.
5. Du Toit, GS, Erasmus, BJ & Strydom, JW. 2010. Introduction to business
management. 8th edition. South Africa: Oxford University Press.
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6. Ferreira, EJ, Erasmus, A & Groenewald, D (eds). 2016. Administrative
management. 3rd edition. Cape Town: Juta.
7. Ferreira, EJ. 2011. Office management. 1st edition. Cape Town: Juta.
8. Nel, J & Rossouw, D. 2014. Business management: an introduction approach. 2nd
edition. Cape Town: Juta.
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