Business: Chapter 7: Business Management

4 Functions of management

Planning Organizing Leading Controlling

Advantages of being a Manager

Usually earn more money than non-management employees Good leaders and respected Have more influence and authority than other people

Departmentalization

divides responsibility among specific units, or departments

Organizing

getting the resources arranged in an orderly and functional way to accomplish goals and objectives

Decentralized organization

gives authority to a number of different managers ~Often evident in international businesses

Skills needed by Managers

~Managers are task-oriented, meaning they can handle many tasks at a time ~They have to plan their time and prioritize ~Often has to work under pressure and problem solve ~They have to keep accurate business records ~Must have time management, listening, communication, and human relations skills ~Most of a manager's day is spent interacting with other people ~Must have some knowledge about the technical aspects of their business ~Higher-level managers have to know what's happening in the world and in their sector of the business world

Organizational chart

shows how the firm is structured and who is in charge of whom

Management

(includes the processes or functions of planning, organizing, leading and controlling.) it refers to the people who are in charge of running a business Management helps businesses focus on setting and meeting goals efficiently and effectively so that a profit can be made.

Middle manager

Carries out the decisions of top-management ~Often responsible for various depts. ~Perform the organizing function as well as leading and controlling the work of others ~Carry out the plans made by the top-managers

Controlling

Means keeping the company on track and making sure goals are met ~Keep track of the budget, schedule, and the quality of g/s ~Monitor their employees and review their performance according to standards ~Taking corrective action when goals are not met ~Monitoring customers satisfaction

Leading

Means providing directions and vision ~Create a vision on of the company to inspire your employees ~Set standards, such as deadlines and sales quotas ~Must delegate work, enforce policies, oversee management, and provide feedback on employees' work ~Resolving conflicts between workers

Disadvantages of being a manager

Often blamed when things go wrong, even if they did not cause the problem Mistakes can be costly to a company

Entry-level job

a beginner-level position

Planning

act or process of creating goals and objectives as well as the strategies to meet them Involves figuring out the resources needed and the standards that must be met

Line authority

an organizational structure in which managers on one level are in charge of those beneath them +: authority is clearly defined -: the managers have a few specialists who help with their responsibilities

Line and staff authority

organizational chart shows the direct line of authority and the staff who advise the line personnel +: Enables managers to get advice -: it can lead to overstaffing which is costly

Centralized organization

puts authority in one place-with top management ~This helps managers throughout the firm to be consistent in decision making

Top-level manager

responsible for setting goals and planning for the future as well as leading and controlling the work of others

Operational manager

responsible for the daily operations of a business