Business Management Functions - Loudoun County Public Schools

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Chapter 7

Business Management

Section 7.1

Management Functions

Read to Learn Describe the overall purpose of management.

Discuss the four functions of management.

The Main Idea

The purpose of management is to set goals for the company and to help meet those goals as efficiently and effectively as possible. There are four functions of management: planning, organizing, leading, and controlling.

Key Concepts Introduction to Management

The Four Functions of Management

Key Term

management

the process or functions of planning, organizing, leading, and controlling

planning

the act or process of creating goals and objectives as well as the strategies to meet them

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Key Term organizing

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

a chart that shows how the firm is

organizational structured and who is in charge of

chart

whom

Key Term

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

Key Term

middle manager

a manager who carries out the decisions of top management

operational a manager who is responsible for manager the daily operations of a business

Key Term

leading

providing direction and vision

controlling

keeping the company on track and making sure goals are met

Introduction to Management

If a firm has employees, then some type of management is necessary.

management the process or functions of planning, organizing, leading, and controlling

Graphic Organizer Management Responsibilities

Focusing on Goals

Meeting Goals Efficiently

Profit Made

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The Four Functions of Management

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.

Figure 7.1

Management Functions

The Four Functions of Management

A challenge for many managers is dealing with multiple objectives, each at a different functional level.

Communicating with employees at all times helps assure that objectives are met.

Planning

Planning involves figuring out the resources that are needed and the standards that must be met.

planning the act or process of creating goals and objectives as well as strategies to meet them

Organizing and Staffing

A manager is responsible for organizing people, work processes, and equipment.

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

Organizing and Staffing

A manager may be involved in creating an organizational chart.

organizational chart a chart that shows how the firm is structured and who is in charge of whom

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Organizing and Staffing

A small firm may have only one top-level manager.

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

Organizing and Staffing

Middle managers are often responsible for various departments in a business.

middle manager a manager who carries out the decisions of top managers

Organizing and Staffing

Supervisors, office managers, and crew leaders are types of operational managers.

operational manager a manager who is responsible for the daily operations of a business

Leading

Leading involves: Setting standards Delegating work Enforcing policies Resolving conflicts

leading providing direction and vision

Graphic Organizer

How Good Managers Lead by Example

Showing Respect

Showing Honesty

Showing Loyalty

Showing Courtesy

Showing a Strong Work

Ethic

Showing Motivation

Showing Initiative

Showing Cooperation

Showing Punctuality

Controlling

Controlling involves several tasks, including monitoring customer satisfaction.

controlling keeping the company on track and making sure goals are met

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Graphic Organizer

Controlling

Keeping track of budgets

Keeping track of schedules

Monitoring the quality of

products or services

Monitoring and reviewing

employee performance

Taking corrective action when goals are

not met

Monitoring customer satisfaction

Incentive Plans

Some companies try to motivate employees with incentives such as on-site child care and bonuses.

You and your friend, Jeremiah, were helping your little brother figure out how to make molded cars from melted crayons using a kit you gave him. You decide to sell the cars at a local toy shop. Jeremiah wants to be a partner in your business.

Decision Making Since Jeremiah was involved in the initial experiment, do you have an obligation to make him a partner? What about your little brother?

Answer

Students might suggest that both Jeremiah's and the little brother's input into the process of making the cars should be rewarded in some way, especially if their ideas result in sales and profits. Having partners can help an entrepreneur launch and grow a business. However, disagreement among partners can sometimes present significant roadblocks to success.

1. What is management?

The aspect of business that involves planning, organizing, leading, and controlling.

2. What are three levels of management? top, middle, and operational

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