Text 8 why management is needed

Management is needed whenever people work together in an organization and to reach organizational objectives. The objective of most firms and companies is to provide services for people and to make a profit for the owners. If the firm stops giving service, people will no longer patronize it. If there are no profits, the company will soon be unable to perform the needed service.

To achieve objectives, managers need to maintain the balance among the conflicting demands of the stakeholders of an organization. Stakeholders are all those, who have a stake in an organizational success, including employees, owners, customers, creditors and others. Owners seek a satisfactory return on their investment; employees want good pay and comfortable working conditions; management must also please his customers, for without them the company will have little purpose; creditors, suppliers, trade associations should also be considered. So, management must balance the interests of different groups.

Management is also needed to achieve efficiency and effectiveness. Efficiency is the ability to get things done correctly. An efficient manager is the one, who gets higher output relative to the inputs (labour, materials, money, machines and time). Effectiveness is the ability to choose the most suitable goals and proper steps to achieve them. That is, effective managers select the right things to do and the right methods for getting them done.

Text 9 managing director

Managing Director is the person appointed by the Board of Directors to be responsible for the management team that runs a business on a day-to-day basis. The managing director will also be a member of the Board, and this will be important in passing policy decisions down to management and providing information from management to the Board. The managing director might have worked his/her way up the company, or might have been appointed from outside the company if the directors wished to bring new blood to the management team. He/she will be an employee of the company possibly also owning shares in the company.

Management techniques. A variety of approaches that have been introduced into decision-making help to improve the quality of the final outcome. Some are based on taking a certain approach to decision-making, e.g. management by objectives or human relations management. Other approaches are based on the use of models and statistical techniques, such as forecasting methods, operations research and ratio analysis. These techniques are used as aids to decision-making and still require managers to weigh up the results in the light of other experience.

The good team, positive working relationship within the company, competent managers, the proper chosen management techniques introducing right decision-making - all these taken together make a successful company.

Text 10 requirements for obtaining a loan

When making a loan for some business most banks want additional information. The complete list of such information is given below. It includes the business ability of a borrower, his past experience, his chances of success in the future, the need and purpose of the loan, etc.

There are 10 items:

1. Proper identification. 2. Nature of business. 3. How the business is organized, its ownership, and any special agreements. 4. Personal data on all principal owners as to age, connection with the business, connection with other businesses, life insurance, banking connections, and civic activities. 5. Other financial relations of the business, such as other bank connections and indebtedness. 6. The amount, the purpose, the need, and the plan for repaying the loan that is requested. 7. A detailed balance sheet showing the assets, liabilities, and ownership of the business. 8. A detailed income and expense statement showing the income and expenditures of the business. 9. Detailed information in regard to liabilities and claims, such as unpaid taxes and other business debts that are due or will become due. 10. Proof as to the future prospects and business plans.