Transcript Introduction to Business

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Chapter 7
Business
Management
Section 7.1
Management
Functions
Read to Learn
Describe the overall purpose of management.
Discuss the four functions of management.
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.
Key Concepts
Introduction to Management
The Four Functions of Management
Key Term
the process or functions of planning,
management
organizing, leading, and controlling
planning
the act or process of creating goals
and objectives as well as the
strategies to meet them
Key Term
organizing
getting the resources arranged in
an orderly and functional way to
accomplish goals and objectives
a chart that shows how the firm is
organizational
structured and who is in charge of
chart
whom
Key Term
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
Key Term
middle
manager
a manager who carries out the
decisions of top management
operational
manager
a manager who is responsible for
the daily operations of a business
Key Term
leading
providing direction and vision
keeping the company on track and
controlling
making sure goals are met
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
Graphic Organizer
Management Responsibilities
Focusing on
Goals
Meeting
Goals
Efficiently
Profit
Made
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.
Figure 7.1
Management
Functions
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.
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
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
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
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
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
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
Leading
Leading involves:
Setting standards
Delegating work
Enforcing policies
Resolving conflicts
leading
providing direction and
vision
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
Controlling
Controlling involves
several tasks,
including monitoring
customer satisfaction.
controlling
keeping the company on
track and making sure
goals are met
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
Incentive Plans
Some companies try to motivate employees
with incentives such as on-site child care and
bonuses.
You and your friend, Jeremiah, were helping your
little brother figure out how to make molded cars
from melted crayons using a kit you gave him. You
decide to sell the cars at a local toy shop. Jeremiah
wants to be a partner in your business.
Decision Making Since Jeremiah was involved in
the initial experiment, do you have an obligation to
make him a partner? What about your little brother?
Answer
Students might suggest that both Jeremiah’s and
the little brother’s input into the process of making
the cars should be rewarded in some way,
especially if their ideas result in sales and profits.
Having partners can help an entrepreneur launch
and grow a business. However, disagreement
among partners can sometimes present significant
roadblocks to success.
1. What is management?
The aspect of business that involves planning,
organizing, leading, and controlling.
2. What are three levels of management?
top, middle, and operational
3. Which of the three levels is most involved in
the day-to-day supervision of employees?
operational management
End of
Chapter 7
Business
Management
Section 7.1
Management
Functions