Chapter 7- Business Management

What must a manger be able to do?

Multitask is the most crucial skill to posses, followed by communicating with employees

decentralized organization

an organization that gives authority to a number of different managers - Decentralized organizations are often found in international businesses.

centralized organization

an organizational structure in which authority is with top management. - There is not a lot of flexibility in a centralized organization.

line and staff authority

an organizational structure in which has a direct line of authority as well as staff who advise the line personnel. Staff authority do not have decision making power. They provide expertise and advice. - The line and staff authority structure enables managers to get advice. It can also lead to overstaffing. Staff authority are specialists, who can advise, but not command others.

departmentalization

an organizational structure that divides responsibility among specific units, or departments. - Formal structures usually employ departmentalization.

line authority

an organizational structure with managers on one level are in charge of those beneath them - An advantage of the line authority structure is that authority is clearly defined.

Controlling

keeping the company on track and making sure goals are met - Controlling involves several tasks, including monitoring customer satisfaction.

What is management?

the process, or functions of planning, organizing, leading ,and controlling. - If a firm has employees, then some type of management is necessary.

Managerial Structures-Line Authority

•Top-down approach where the decisions are made by the top management and communicated to the lower level staff •Line managers are assigned to manage teams that operate with the intention of achieving an intended result. •Organizations with line authority allow better exertion of unified control.

Disadvantages of Being a Manager

- Blamed when things go wrong - Mistakes are costly - Pressure

Controlling involves

- Keeping track of budgets - Monitoring and reviewing employee performance - Keeping track of schedules - Taking corrective action when goals are not met - Monitoring the quality of products or services - Monitoring customer satisfaction

Advantages of Being a Manager

- More control over time - Greater influence - Prestige - respect - More Money

How Good Managers Lead by Example

- Showing Respect - Showing Courtesy - Showing Initiative - Showing Honesty - Showing a Strong Work Ethic - Showing Cooperation - Showing Loyalty - Showing Motivation - Showing Punctuality

Organizing is...

- To break down the tasks into a specific department or section; - Assign responsibilities associated with individual role; - Establish relationships between teams and departments; - Establish formal lines of authority; and Allocate organizational resources.

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.)

informal structure

A business can be run informally if it does not need a big marketing or distribution network. Informal structures are more flexible than formal structures. Informal structures usually exist in small businesses.

Ways to Create Organizational Structure

By product (Nike: sneakers, apparel) By area (geographically) By function (Marketing, Finance, Sales, HR) By customer (Children, Adult, by sport) UNUM: combination of area and customer (group or individual insurance)

Most of a manager's day is spent :

Interacting with people

What is an advantage of a line and staff authority organization structure over a line authority organization?

Line and staff authority structure enables management to get advice from staff personnel

Difference between line authority and line and staff authority

Line managers direct the work of subordinates and make important decisions, while staff managers advise those with line authority. Moreover, line managers are directly accountable for sales and production target achievement, whereas staff managers extend support to help them achieve their goals.

Leading involves:

Setting standards Delegating work Enforcing policies Resolving conflicts

Skills needed by managers

Task-Oriented Communicate Well Keep Accurate Records Human Relations Work Under Pressure Understanding the Business Manage Time Effectively MULTITASKING

2.Why do some businesses use a decentralized organization?

They allow decisions to be made at the local level where managers are more familiar with the problems and have the resources to solve them.

entry-level job

a beginner-level position - Most managers begin their career in an entry-level job. Most people enter the job market in an entry-level job.

organizational chart

a chart that shows how the firm is structured and who is in charge of whom - A manager may be involved in creating an organizational chart.

Middle Managers

a manager who carries out the decisions of top managers. General managers, branch managers, and department managers are all examples of middle-level managers. - Middle managers are often responsible for various departments in a business. They provide guidance to lower-level managers.

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. - A small firm may have only one top-level manager. An example of a top-level manager is a chief operating officer or president of a company.

operational managers

a manager who is responsible for the daily/day-to-day operations of a business. - Supervisors, office managers, and crew leaders are types of operational managers.

Management Responsibilities

focusing on goals, meeting goals efficiently, profit made

Organizing

getting the resources arranged in an orderly and functional way to accomplish goals and objectives - A manager is responsible for organizing people, work processes, and equipment.

leading

providing direction and vision; Good managers have the ability to lead

What are some characteristics of an effective manager?

task-oriented, able to work under pressure, effective communicator, works well with others, and technical knowledge

Planning

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