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Chapter 7

BusinessManagement

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

planning

the process or functions of planning,

organizing, leading, and controlling

the act or process of creating goals

and objectives as well as the

strategies to meet them

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Key Term

organizing

organizational

chart

getting the resources arranged in

an orderly and functional way to

accomplish goals and objectives

a chart that shows how the firm is

structured and who is in charge of

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

operational

manager

a manager who carries out the

decisions of top management

a manager who is responsible for

the daily operations of a business

Key Term

leading

controlling

providing direction and vision

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.

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

Graphic Organizer

Management Responsibilities

Focusing onGoals

MeetingGoals

Efficiently

ProfitMade

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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.

ManagementFunctions

Figure 7.1

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.

planningthe 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.

organizinggetting 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 charta 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 managera 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 managera manager who carries out the decisions of top managers

Organizing and Staffing

Supervisors, office

managers, and crew

leaders are types of

operational

managers.

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

Leading

Leading involves:

Setting standards

Delegating work

Enforcing policies

Resolving conflicts

leadingproviding direction and vision

Graphic Organizer

ShowingRespect

ShowingHonesty

ShowingLoyalty

Showing

Courtesy

Showing a

Strong WorkEthic

Showing

Motivation

Showing

Initiative

Showing

Cooperation

Showing

Punctuality

How Good Managers Lead by Example

Controlling

Controlling involves

several tasks,

including monitoring

customer satisfaction.

controllingkeeping the company on track and making sure goals are met

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Graphic Organizer

Keeping track of budgets

Controlling

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

operational management

Chapter 7

BusinessManagement

Section 7.1

Management

Functions

End of