2. Read to Learn
Describe the overall purpose of management.
Discuss the four functions of management.

3. 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.

4. Key Concepts
Introduction to Management
The Four Functions of Management

5. Key Term
the process or functions of planning, organizing, leading, and controlling
management
the act or process of creating goals and objectives as well as the strategies to meet them
planning

6. Key Term
getting the resources arranged in an orderly and functional way to accomplish goals and objectives
organizing
a chart that shows how the firm is structured and who is in charge of whom
organizational chart

7. Key Term
a manager who is responsible for setting goals and planning for the future as well as leading and controlling the work of others
top-level manager

8. Key Term
middle manager
a manager who carries out the decisions of top management
operational manager
a manager who is responsible for the daily operations of a business

9. Key Term
leading
providing direction and vision
keeping the company on track and making sure goals are met
controlling

10. 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

11. Management Responsibilities Meeting Goals Efficiently
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Management Responsibilities
Meeting Goals Efficiently
Focusing on Goals
Profit Made

12. The Four Functions of Management
The four functions of management are:
Planning
Organizing
Leading
Controlling
Some managers may primarily focus on one or two of these functions.

13. Figure 7.1
Management Functions

14. 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.

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. Leading Leading involves: Setting standards Delegating work
Enforcing policies
Resolving conflicts
leading
providing direction and vision

22. Showing a Strong Work Ethic
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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

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

24. 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

25. What is management?
The aspect of business that involves planning, organizing, leading, and controlling.

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

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

29. Read to Learn
Identify the differences between management structures.
Name six skills necessary for effective management.

30. The Main Idea
Businesses have many different management structures that they can adopt. People who are interested in management should pay attention to the skills and knowledge needed to be an effective manager.

31. Key Concepts
Managerial Structures
Is Being a Manager for You?

32. Key Term
an organizational structure in which managers on one level are in charge of those beneath them
line authority
an organizational structure with a direct line of authority as well as staff who advise the line personnel
line and staff authority

33. Key Term
an organizational structure in which authority is with top management
centralized organization
an organizational structure that gives authority to a number of different managers
decentralized organization

34. Key Term
an organizational structure that divides responsibility among specific units, or departments
departmentalization
entry-level job
a beginner-level position

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

36. Managerial Structures
The line and staff authority structure enables managers to get advice. It can also lead to overstaffing.
line and staff authority
an organizational structure in which has a direct line of authority as well as staff who advise the line personnel

37. Line and Staff Authority Organization Chart
Figure 7.2
Line and Staff Authority Organization Chart

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

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

40. 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.

41. Is a Manager’s Job for You?
Most managers begin their career in an entry-level job.
entry-level job
a beginner-level position

42. Graphic Organizer
Promotion
Gain Experience
Entry Level

43. Manage Time Effectively Understanding the Business
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Skills Needed by Managers
Keep Accurate Records
Task- Oriented
Work Under Pressure
Manage Time Effectively
Communicate Well
Human Relations
Understanding the Business

44. Advantages of Being a Manager
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More control over time
Greater influence
More money
Advantages of Being a Manager
Respect
Prestige

45. Blamed when things go wrong Disadvantages of Being a Manager
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Blamed when things go wrong
Disadvantages of Being a Manager
Mistakes are costly
Pressure

46. 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.

47. 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.

48. What are some characteristics of an effective manager?
task-oriented, able to work under pressure,
effective communicator, works well with others, and technical knowledge

49. End of