BBI2O Introduction to Business

1. BBI2OIntroduction to Business Unit 2: Functions of Business 2.C Management

2. Functions of Management • There are 4 functions of management • Planning • Organizing • Leading • Controlling

3. Functions of Management con’t • Planning – to set the direction • Decide where you want to go • Decide how to best go about it • Organizing – to create structures • Divide up work • Arrange resources • Coordinate Activities

4. Functions of Management con’t • Leading – to inspire effort • Build enthusiasm • Communicate the vision • Maintain momentum • Controlling – to ensure results • Measure performance • Take corrective action

5. Levels of Management • Mgmt is classified to three basic levels: • Top (or Upper) Mgmt • Middle Mgmt • Lower Mgmt Top mgmt has more responsibility than Lower mgmt, they also operate on a longer-term basis. Top mgmt sets the goals and vision of the organization. To be effective, the vision must be consistent at each managerial level

6. Managerial Skills con’t • The three basic managerial skills are conceptual, human & technical skills. • Higher level managers need more conceptual skills and fewer technical skills • Lower level managers need more technical skills and fewer conceptual skills • Human skills are needed at all levels

7. Managerial Skills

8. Types of Managerial Problems • 5 main types • Routine – arise periodically, standard response • Non Routine – unique situations • Expected – anticipated situations • Unexpected – not anticipated, usually dealt with ‘after the fact’ (reactionary) • Crisis – can lead to disaster (natural disaster, criminal act, lawsuit)

9. Leadership Styles • 3 main styles: Autocratic, Laissez-Faire, Democratic • Autocratic • Leader controls situation • No input from employees • Best when quick, or unpopular decisions needed • Too much can lead to employee discontentment • Laissez-Faire • Leaves employees alone to do their jobs • Good when employees are mature, experienced • Too much can lead to unmotivated, directionless employees

10. Leadership Styles con’t • Democratic • Employees contribute to decision making, by sharing their input, information and creativity • Employees feel appreciated, and work harder because they know their contributions are valued • Most effective leadership style in most situations Excellent leaders know when to apply each of these styles, and can seamlessly change between all three, as situations require

11. Study Guide • Can you name: • The 4 functions of management? • The 3 levels of mgmt? • The 3 managerial skills? • The 5 types of managerial problems? • The 3 leadership styles?