Business Management

1. Business Management Intro to Business Chapter 7

2. Managing Functions • Section 7-1 - Management Functions • Describe the overall purpose of management • Discuss the four functions of management • Relate the following terms to your own life: • Planning • Organizing • Leading • Controlling 6-1

3. Managing Functions • Introduction to Management • Management • Includes the process or functions of planning, organizing, leading and controlling • People who are in charge of running a business • Helps businesses focus on setting and meeting goals efficiently and effectively so that a profit can be made. • Managers • Need a thorough understanding of business operations • Develop objective for firms and departments. 6-1

4. Managing Functions • The Four Functions of Management • Planning • The act or process of creating goals (short and long term) and objectives as well as the strategies to meet them. • Find out what resources are needed and standards that must be met • Organizing and Staffing • Organizing- Getting the resources arranged in an orderly and functional way to accomplish goals and objectives. • Staffing – Hire, train and evaluate employees • Fire them when necessary 6-1

5. Managing Functions • Levels of Management • Organizational Chart – Shows the structure of the business and who is in charge. • Top – Level Manager • Responsible for setting goals • Planning for the future • Leading and controlling the work of others • Middle Manager • Carries out the decisions of the top management • Responsible for various Departments (production, marketing, accounting) • Operational Manager • Responsible for daily operations of business • Supervisors, office managers, crew leaders • Oversee workers and meet deadlines 6-1

6. Managing Functions • Leading • Providing direction and vision • Set standards, such as deadlines and sales quota • Delegate work, enforce policies, time management, provide feedback • Good Managers lead by example • Controlling • Keeping the company on track and making sure goals are met • Keep track of budget, schedule, and quality of the products or services they provide 6-1

7. Questions • What is management? • What are the three levels of management? • Which of the three levels is most involved in the day-to-day supervision of employees? • Some people think that the planning function is the most important one for a manager. Why might that be true? • Some companies are using fewer middle managers, how have the jobs of top-level management and operational managers changed?

8. Learning Targets • Section 7.2: Management Structures • Identify the differences between management structures • Name the six skills necessary for effective management

9. Management Structures • Management Structures • Ways to organize a business • Line Authority • Organizational Structure in which managers on one level are in charge of those beneath them • Advantage - Authority is clearly defined, know who reports to who • Disadvantage - Managers have few specialists who help with their responsibilities • Line and Staff Authority • Shows direct line authority as well as who advises the line personnel • Advantage - Enables managers to get advice • Disadvantage - Can lead to overstaffing 7-2

10. Line and Staff Authority

11. Management Structures • Centralized Organization • Puts management in one place (top management) • Helps management be consistent in decision making • Decentralized Organization • Gives authority to a number of different managers • Number of managers have authority • Decisions can be made at local level where managers are more familiar with the problems

12. Management Structures • Formal Structure • Departmentalized • Divides responsibilities among specific units, or departments. • Can be divided by: • Geographic location • Function • Customer Groups • Product • Informal Structure • Usually used in smaller businesses • Employees can be more flexible and share duties • Partners can work alone or together on projects

13. Management Structures • Is a Manager’s Job for You? • Most managers begin in entry – level jobs (beginner level) • Gain experience and show certain qualities can be promoted • Skills needed by managers • Task oriented – handle many tasks at one time • Plan your time – Decide which tasks are more important • Keep Accurate business records • Be able to work under pressure and solve problems • Time Management skills • Good communication skills (listening is important) • Human relations skills • Must have knowledge about the technical aspects of their business

14. Management Structures • Advantages of Being a Manager • Earn more money • Have the ability to lead • Good leaders are respected • More influence and Authority • Greater Control over time • Disadvantages of Being a Manager • Blamed when things go wrong • Mistakes can be costly to the company • Under a lot of pressure

15. Questions • What is an advantage of a line and staff authority organization structure over a line authority organization? • Why do some businesses use a decentralized organization? • What are some characteristics of an effective manager? • Why do you think it is a good idea for workers to have more decision-making duties and provide input to managers? • Why might a manager decide to change an informally structured organization into a formally structured one?