Chapter 7; Business Management

What are the advantages of being a manager?

* earn more money than employees in non management jobs. * ability to lead * good managers are respected, which builds prestige. * more influence and authority than other employees because they plan, organize, direct, and control company resources. * greater control over their time.

What are the skills needed to be a manager?

* multitask * plan their time * prioritize * keep accurate business records * be able to work under pressure * problem solve * time-management * good communication/good listener * interact with other people * human relations skills * have some knowledge about the technical aspects of their business * understand how various parts of the company relate to the whole business * knowledge of what's happening in their sector of the business world

What are the disadvantages of being a manager?

* often blamed when things go wrong, even if they did not cause the problem. * mistakes can be very costly to a company * under a lot of pressure to make the right decisions.

What is an advantage of running an informal business?

Employees can be more flexible and share duties.

When doesn't a business need a lot of managers?

If a business does not need a big marketing or distribution network.

What type of business can be run informally?

Small Business

entry-level job

a beginner-level position; where managers start out.

In larger firms, top-level management can be composed of...

a chief executive officer (or CEO), a president, and at least one vice president.

Line and Staff Authority

an organizational chart that shows the direct line of authority (indicated by solid lines) as well as staff who advise the line personnel (indicated by dotted lines).

Line Authority

an organizational structure in which managers on one level are in charge of those beneath them.

What is an advantage of line authority?

authority is clearly defined; each employee knows to whom she or he reports.

What is a disadvantage of line and staff authority?

can lead to overstaffing, which can be costly.

Middle Manager

carries out the decisions of top management. Often responsible for various departments in a business, such as the production, marketing, and accounting departments. Also responsible for the organizing function as well as leading and controlling the work of others. Although they do some planning, they are usually responsible for carrying out plans made by top management.

What is a challenge for many managers?

dealing with multiple objectives, each at a different functional level.

departmentalization

divides responsibility among specific units, or departments which can be organized many different ways, such as by geographical location, function, customer groups, and product.

Good managers lead by...

example.

What structures are usually departmentalized?

formal business structures

Organizing

getting the resources arranged in an orderly and functional way to accomplish goals and objectives. A manager must organize people, work processes, and equipment so that the work is well coordinated, as well hire, train and fire employees when needed. They are responsible for making sure employees have all the tools they need to do their jobs well.

decentralized organization

gives authority to a number of different managers; often evident in international businesses.

Good management requires...

good leadership

Management

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

Controlling

keeping the company on track and making sure goals are met. Keep track of the budget, the schedule, quality of the products or services they provide, monitor their employees and review their performance according to standards, take corrective action when goals are not met is another management task, and involves monitoring customer satisfaction.

What is an example of an entry-level job?

mailroom (the old fashioned start in the day)

What is a disadvantage of line authority?

managers have few specialists who help with their responsibilities.

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

operational manager

What order do the functions occur?

planning, organizing, leading and controlling (must plan before you organize, organize before you lead, and lead before control)

What are the four functions of management?

planning, organizing, leading, and controlling

Leading

providing direction and vision; not just giving orders. Create a vision, set standards, such as deadlines and sales quotas, delegate work, enforce policies, oversee time management, and provide feedback on employees' work. Resolving conflicts between workers is also a leadership task.

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. Supervisors, office managers, and crew leaders are examples of these. Operational managers also do some planning and organizing, but main duties include overseeing workers and meeting deadlines (leading and controlling)

Organizational Chart

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

What is an advantage of line and staff authority?

structure enables managers to get advice.

Planning

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

Who do entrepreneurs manage?

themselves

What type of manager is a CEO considered?

top-level manager

What do managers do?

with a thorough understanding of business operations, which involve all the activities of a company, they develop the objectives for a firm or a department and then figure out how to meet those objectives through people, work processes, and equipment.