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2 Chapter 7 Business Management Section 7.1 Management Functions

3 Read to Learn Describe the overall purpose of management. Discuss the four functions of management.

4 The Main Idea The purpose of management is to set goals for the company and to help meet those goals as efficiently and effectively as possible. There are four functions of management: planning, organizing, leading, and controlling.

5 Key Concepts Introduction to Management The Four Functions of Management

6 Introduction to Management If a firm has employees, then some type of management is necessary. management the process or functions of planning, organizing, leading, and controlling

7 Graphic Organizer Management Responsibilities Focusing on Goals Meeting Goals Efficiently Profit Made

8 The Four Functions of Management The four functions of management are: 1. Planning 2. Organizing 3. Leading 4. Controlling Some managers may primarily focus on one or two of these functions.

9 Figure 7.1 Management Functions

10 The Four Functions of Management A challenge for many managers is dealing with multiple objectives, each at a different functional level. Communicating with employees at all times helps assure that objectives are met.

11 Planning Planning involves figuring out the resources that are needed and the standards that must be met. planning the act or process of creating goals and objectives as well as strategies to meet them

12 Organizing and Staffing A manager is responsible for organizing people, work processes, and equipment. organizing getting the resources arranged in an orderly and functional way to accomplish goals and objectives

13 Organizing and Staffing A manager may be involved in creating an organizational chart. organizational chart a chart that shows how the firm is structured and who is in charge of whom

14 Organizing and Staffing A small firm may have only one top-level manager. top-level manager a manager who is responsible for setting goals and planning for the future as well as leading and controlling the work of others

15 Organizing and Staffing Middle managers are often responsible for various departments in a business. middle manager a manager who carries out the decisions of top managers

16 Organizing and Staffing Supervisors, office managers, and crew leaders are types of operational managers. operational manager a manager who is responsible for the daily operations of a business

17 Leading Leading involves: Setting standards Delegating work Enforcing policies Resolving conflicts leading providing direction and vision

18 Graphic Organizer How Good Managers Lead by Example Showing Respect Showing Honesty Showing Loyalty Showing Courtesy Showing a Strong Work Ethic Showing Motivation Showing Initiative Showing Cooperation Showing Punctuality

19 Controlling Controlling involves several tasks, including monitoring customer satisfaction. controlling keeping the company on track and making sure goals are met

20 Graphic Organizer Controlling Keeping track of budgets Keeping track of schedules Monitoring the quality of products or services Monitoring and reviewing employee performance Taking corrective action when goals are not met Monitoring customer satisfaction

21 Incentive Plans Some companies try to motivate employees with incentives such as on-site child care and bonuses.

22 1. What is management? The aspect of business that involves planning, organizing, leading, and controlling.

23 2. What are three levels of management? top, middle, and operational

24 3. Which of the three levels is most involved in the day-to-day supervision of employees? operational management

25 End of Chapter 7 Business Management Section 7.1 Management Functions

26 Click here to advance to the next slide.

27 Chapter 7 Business Management Section 7.1 Management Functions

28 Read to Learn Identify the differences between management structures. Name six skills necessary for effective management.

29 The Main Idea Businesses have many different management structures that they can adopt. People who are interested in management should pay attention to the skills and knowledge needed to be an effective manager.

30 Key Concepts Managerial Structures Is Being a Manager for You?

31 Managerial Structures An advantage of the line authority structure is that authority is clearly defined. line authority an organizational structure with managers on one level are in charge of those beneath them

32 Managerial Structures The line and staff authority structure enables managers to get advice. It can also lead to overstaffing. line and staff authority an organizational structure in which has a direct line of authority as well as staff who advise the line personnel

33 Figure 7.2 Line and Staff Authority Organization Chart

34 Managerial Structures Decentralized organizations are often found in international businesses. decentralized organization an organization that gives authority to a number of different managers

35 Formal Structure Formal structures usually employ departmentalization. departmentalization an organizational structure that divides responsibility among specific units, or departments

36 Informal Structure A business can be run informally if it does not need a big marketing or distribution network. Informal structures are more flexible than formal structures.

37 Employee Input Forward-looking companies are on a new track to encourage worker participation, new ways of thinking, and a move away from formal structure.

38 Is a Manager s Job for You? Most managers begin their career in an entry-level job. entry-level job a beginner-level position

39 Graphic Organizer Promotion Gain Experience Entry Level

40 Graphic Organizer Skills Needed by Managers Task- Oriented Keep Accurate Records Work Under Pressure Manage Time Effectively Communicate Well Human Relations Understanding the Business

41 Graphic Organizer More control over time More money Advantages of Being a Manager Greater influence Respect Prestige

42 Graphic Organizer Blamed when things go wrong Disadvantages of Being a Manager Mistakes are costly Pressure

43 1. What is an advantage of a line and staff authority organization structure over a line authority organization? Line and staff authority structure enables management to get advice from staff personnel.

44 2. Why do some businesses use a decentralized organization? They allow decisions to be made at the local level where managers are more familiar with the problems and have the resources to solve them.

45 3. What are some characteristics of an effective manager? task-oriented, able to work under pressure, effective communicator, works well with others, and technical knowledge

46 End of Chapter 7 Business Management Section 7.1 Management Functions