IJMB 2025 BUSINESS MANAGEMENT PAPER I
*IJMB BUSINESS MANAGEMENT*
*NUMBER 1*
*Abraham Maslow’s Hierarchy of Needs Theory*
Maslow’s theory proposes that human beings have different levels of needs, which must be fulfilled in a particular order for a person to reach their full potential. The hierarchy consists of:
“`(1)“` *Physiological Needs:* Basic needs such as food, water, shelter, and sleep.
“`(2)“` *Safety Needs:* Security, stability, and protection from harm.
“`(3)“` *Love and Belonging Needs:* Social connections, relationships, and a sense of belonging.
“`(4)“` *Esteem Needs:* Self-esteem, recognition, and respect from others.
“`(5)“` *Self-Actualization Needs:* Personal growth, creativity, and realizing one’s full potential.
According to Maslow, individuals are motivated to fulfill their basic needs first, and then move up the hierarchy to satisfy higher-level needs.
*Frederick Herzberg’s Theory*
(Hygiene-Motivation Theory)
Herzberg’s theory proposes that there are two types of factors that influence motivation:
Hygiene Factors
“`(1)“` *Salary and benefits*
“`(2)“` *Working conditions*
“`(3)“` *Company policies*
“`(4)“` *Job security*
These factors can lead to dissatisfaction if they are inadequate, but do not necessarily motivate employees if they are adequate.
Motivator Factors
“`(1)“` *Recognition*
“`(2)“` *Achievement*
“`(3)“` *Growth opportunities*
“`(4)“` *Responsibility*
These factors can motivate employees to work harder and be more productive.
Herzberg’s theory suggests that hygiene factors must be met to prevent dissatisfaction, while motivator factors can drive employee satisfaction and motivation.
*IJMB BUSINESS MANAGEMENT*
*NUMBER 2*
An organizational structure is a system that guides how certain activities are directed to achieve the goals of an organization. The organizational structure also determines how information flows between levels within the company. Decisions flow from the top down in a centralized structure. Decision-making power is distributed among various levels of the organization in a decentralized structure. Having an organizational structure in place allows companies to remain efficient and focused.
Organizational structure refers to the formal framework that defines the roles, responsibilities, and relationships among employees within an organization. It outlines the hierarchy, communication channels, and decision-making processes.
*Four Common Types of Organizational Structure:*
“`(1)“` Functional Structure : It is organized by function, with departments for each functional area (e.g., marketing, finance, Human Resource)
*Merits:*
“`(1)“` *Specialization:* Allows for specialized skills and expertise within each department.
“`(2)“` *Efficiency:* Can lead to efficient use of resources and streamlined processes.
“`(2)“` Divisional Structure: It is organized by product, market, or geographic region, with each division operating as a separate unit.
*Merits:*
“`(1)“` *Autonomy:* Allows divisions to respond quickly to changing market conditions.
“`(2)“` *Accountability:* Enables clear accountability for performance within each division.
“`(3)“` Matrix Structure: it Combines functional and project-based structures, with employees reporting to multiple managers.
*Merits:*
“`(1)“` *Flexibility:* Allows for flexible allocation of resources and expertise across projects.
“`(2)“` *Collaboration:* Fosters collaboration and communication among different departments and teams.
“`(4)“` Flat Structure: It simply deals with minimal hierarchical levels, with decision-making authority distributed among employees.
*Merits:*
“`(1)“` *Agility:* Enables fast decision-making and response to changing circumstances.
“`(2)“` *Empowerment:* Encourages employee autonomy and empowerment.
*IJMB BUSINESS MANAGEMENT*
*NUMBER 7*
Difference between Management and Administration
*Management:* It focuses on planning, organizing, leading, and controlling resources to achieve organizational goals. Management is concerned with the internal operations of an organization while *Administration:* refers to the overall direction and governance of an organization, often involving policy-making, strategic planning, and high-level decision-making. Administration is concerned with the broader context and long-term goals of an organization.
*Attributes of a Successful Manager:*
“`(1)“` *Strong Communication Skills:* Effective managers can clearly articulate goals, expectations, and feedback to team members.
“`(2)“` *Strategic Thinking:* Successful managers can analyze complex situations, make informed decisions, and develop plans to achieve organizational objectives.
“`(3)“` *Leadership Skills:* Managers should be able to motivate, inspire, and empower team members to achieve their best work.
“`(4)“` *Problem-Solving Skills:* Effective managers can identify problems, analyze data, and develop creative solutions.
“`(5)“` *Emotional Intelligence:* Successful managers can understand and manage their own emotions, as well as empathize with and support their team members.
“`(6)“` *Adaptability:* Managers should be flexible and able to adjust to changing circumstances, priorities, and deadlines.
“`(7)“` *Coaching and Development:* Effective managers can identify areas for growth and development in their team members and provide guidance and support to help them improve.
“`(8)“` *Accountability:* Successful managers take ownership of their decisions and actions, and are accountable for the performance of their team.
“`(9)“` *Time Management:* Effective managers can prioritize tasks, manage their time, and meet deadlines.
“`(10)“` *Integrity:* Successful managers operate with integrity, ethics, and transparency, building trust with their team members and stakeholders.
*IJMB BUSINESS MANAGEMENT*
*NUMBER 8*
Difference between Economic and Business Environment
*Economic Environment:* It refers to the external economic factors that affect business operations, such as inflation, interest rates, and economic growth while *Business Environment:* Encompasses both internal and external factors that impact business operations, including economic, political, social, and technological factors.
*Five Elements of Economic Environment that Influence Business Management:*
“`(1)“` *Interest Rates:* Changes in interest rates can affect borrowing costs, consumer spending, and business investment.
“`(2)“` *Inflation Rate:* High inflation can increase production costs, reduce purchasing power, and impact business profitability.
“`(3)“` *Economic Growth:* A growing economy can create opportunities for business expansion, while a recession can lead to reduced demand and revenue.
“`(4)“` *Government Fiscal Policy:* Government spending and taxation policies can influence aggregate demand, economic growth, and business profitability.
“`(5)“` *Exchange Rates:* Fluctuations in exchange rates can impact import and export costs, affecting businesses involved in international trade.
IJMB 2025 BUSINESS MANAGEMENT PAPER I