Chapter 7 Business Management 7 1 Management Functions

Chapter 7 Business Management • 7. 1: Management Functions • Describe the overall purpose of management • Discuss the four functions of management • 7. 2: Management structures • Identify the differences between management structures • Name six skills necessary for effective management

Key Vocabulary • Management • Planning • Organizational chart • Top-level manager • Middle manager • Operational Manager • Leading • Controlling

Introduction to Management • Entrepreneurs who start and run their own business do not have to manage themselves but once they start hiring, they are the new manager • Management- includes the processes or functions of planning, organizing, leading, and controlling • Comic book company • Managers supervise and direct the employees to tasks to benefit the company

Introduction to Management • Help businesses focus on setting and meeting goals effectively and efficiently so a profit can be made • Refers to the people who are in charge of running a business • Need to know the overall goals to help employees accomplish them

Career research • Research the requirements for a management major at RCGC or Rowan University • Determine the types of courses that students must take. • Write a. 5 - 1 page paper describing the required course work

Four Functions of Management • The four levels are: • Planning, Organizing, Leading, and Controlling • These are listed in order of occurrence • Usually divide managers among these four functions • Trouble is there are usually multiple objectives at each of the four levels going on simultaneously • Suppose your company’s manager discusses plans to produce a new comic book with marketing and production teams. The manager directs the marketing team to research the national and global markets for comic books. The manager also tells the production team to prepare and produce the new product • It is up to the managers to make sure these project are completed in a timely matter

Planning • Is the act or process of creating goals and objectives as well as strategies to meet them • Also need to determine resources needed and standards to be met. • Some people believe that the planning function is the most important one for a manager. Why might that be true?

Organizing and Staffing • Getting the resources arranged in an orderly and functional way to accomplish goals and objectives • Must be organized to maintain efficiency and reduce down time • Must be trained properly and fit the position • Make sure the employees have the tools needed to succeed.

Levels of Management • An Organizational chart shows how the firm is structured and who is in charge of whom • Top-level management-responsible for setting goals and planning for the future as well as leading and controlling the work of others • In small businesses maybe only one or two people, in corporations there be as many as 10 -20 • Middle-management- carries out the decisions of top-management • Responsible for the departments of the business such as production, marketing, and accounting

Levels of Management • Operational Management- responsible for the daily operations of the business. • Supervisors, office managers, and crew leaders

Critical Thinking • Since companies are using fewer middle managers, how have the jobs to top-level management and operational managers changed?

Leading • Means providing direction and vision • Vision will help inspire employees to work • Apple or Google • Direction will set the standard of work and who is working toward what goal • Good leaders can delegate work, enforce policies, oversee time management, and provide feedback on employees’ work • Practice what you preach can also help to motivate employees

Controlling • Keeping the company on track and making sure that the goals are met. • Budget, employee work schedule, and quality of product or service • Monitor employees and customers to create the best experience for everyone.

Assignment • Imagine you are in charge of the next school dance, fundraiser, or school function. • In one page indicate some of the tasks you would need to complete in each of the functions of management.

Review • What is Management? • What are three levels of management? • Which of the three levels is most involved in day to day supervision of employees? • You are a delivery manager at Blue Bag, a wholesale bakery. The bakery employs two drivers and owns two trucks. Each truck can deliver up to 175 crates of bread per day. The bakery has standing orders for 340 crates per day, but a new supermarket is opening up, and you expect orders to increase 225%. If you hire two more drivers, will it be enough to cover the increase in orders?

7. 2 Management Structure • Identify the differences between management structures • Name six skills necessary for effective management

Key Vocabulary • Line authority • Line and staff authority • Centralized organization • Decentralized organization • Departmentalization • Entry-level job

Managerial Structures • Line authority- is an organizational structure in which managers on one level are in charge of those beneath them • An advantage would be that authority is clearly defined • A disadvantage is that managers have few specialists to consult with for help • Line and staff authority- shows the direct line of authority as well as staff who advise the line personnel. • An advantage would be allowing management to get advice • A disadvantage is that this could lead to over-staffing

Managerial Structures • Centralized Organization- put authority in one place, usually at the top • Help managers be consistent in decision making • Decentralized Organization- gives authority to a number of different managers • More common in international business due to the expanded scope of business and an expertise in a certain area.

Managerial Structures • Formal structures • Departmentalization- divides the responsibility among specific units or departments • Geographic location, function, customer groups, product • Informal structure • Smaller businesses can function with less organization • Less units and scope means you need less people • Employees must be more flexible and able to multi-task

Critical Thinking • What are the pros and cons for working under formal management? • What about informal management? • If you had your ideal choice in management, which would you choose to work for? • If you were manager, how would you manage?

Science and Tech Trends • http: //levine. sscnet. ucla. edu/general/whatis. htm • http: //www. gametheory. net/professionals. html • http: //plato. stanford. edu/entries/game-theory/ • http: //www. mgmtguru. com/mgt 301/301_Lecture 1 Page 13. htm • Use page 117 of your text books and these four websites to create a 1. 5 - 2 page paper on game theory and the science of decision making in business.

Is a Manager’s Job for You? • Most managers start on the bottom level • Entry-level jobs- are considered beginners jobs and get your foot in the door • Used to gain experience and find a niche in the company to be successful (or fired)

Skills Needed to Manage • Ability to multi-task and triage decision making • Solve Macro problems in the business but still manage the day-to-day issues • Communication is also very important • People can’t do what they don’t know or don’t understand • Listening is the same thing as communication, managers need to be effective at both • Need to deal with all types of people with all types of attitudes

Skills Needed to Manage • Must understand how various parts of the business add up to whole sum of the business • Understand outside influence on the business such as economic conditions or competition with other businesses

Advantages of Being a Manager • Usually earn more money than non-management employees • Highest level manager (CEO) usually highest paid manager • How many CEOs’ annual salary is only $1? • People look to you for your leadership • Good leaders inspire and influence employees to strive for greatness • Less people to report to • More leisure time and you can choose what to work on

Disadvantages of Being a Manager • Usually gets blamed when things go wrong • Under a lot of pressure to get the job done right, cost effectively, and hopefully earlier than expected.

Find your Dream Job • Go to the Occupational Outlook Handbook • Click on the OOH Search/ A-Z index and search for “medical and health services manager” • Write a one page paper describing the occupation, how to prepare for it, and the future prospects of its availability.

Critical Thinking • Describe your ideal manager.

Review • What is an advantage of a line and staff authority organization structure over a line authority organization? • Why do some businesses use a decentralized organization? • What are some characteristics of an effective manager?