1. 1.05 Recognize management’s role to understand its contribution to business success.

2. a. Define the following terms: management, planning, organizing, staffing, directing, and controlling. Management: the process of accomplishing the goals of an organization through the effective use of people and other resources. Emerging trends in management include assertions that leading is different than managing, and that the nature of how the four functions is carried out must change to accommodate a "new paradigm" in management.

3. a. Define the following terms: management, planning, organizing, staffing, directing, and controlling. planning: determine objectives in advance and the methods to achieve them organizing: establish a structure of authority for all work staffing: recruit, hire and train workers; maintain favorable working conditions directing: make decisions, issue orders and directives coordinating: interrelate all sectors of the organization

4. b. Explain the role of managers in business organizations. Managers direct the activities of other people in the organization Management is both art and science. It is the art of making people more effective than they would have been without you. The science is in how you do that. A manager wears many hats. Not only is a manager a team leader, but he or she is also a planner, organizer, cheerleader, coach, problem solver, and decision maker — all rolled into one. And these are just a few of a manager's roles. In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a set of ten roles that a manager fills. These roles fall into three categories: Interpersonal: This role involves human interaction. Informational: This role involves the sharing and analyzing of information. Decisional: This role involves decision making.

6. c. Describe the categories of resources managed by businesses. Natural resources are raw materials produced by nature. Many natural resources are nonrenewable (oil, coal, gems). Renewable resources are trees, wind, water, crops, and plants. Human resources are the people who contribute physical and mental energy to the production process. Capital resources are the tools, equipment, and buildings that are used to produce goods and services.

7. d. Explain the responsibilities of each level of management.

8. Top Level of Management - Administrative level It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions. The role of the top management can be summarized as follows - Top management lays down the objectives and broad policies of the enterprise. It issues necessary instructions for preparation of department budgets, procedures, schedules etc. It prepares strategic plans & policies for the enterprise. It appoints the executive for middle level i.e. departmental managers. It controls & coordinates the activities of all the departments. It is also responsible for maintaining a contact with the outside world. It provides guidance and direction. The top management is also responsible towards the shareholders for the performance of the enterprise.

9. d. Explain the responsibilities of each level of management. Middle Level of Management The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as - They execute the plans of the organization in accordance with the policies and directives of the top management. They make plans for the sub-units of the organization. They participate in employment & training of lower level management. They interpret and explain policies from top level management to lower level. They are responsible for coordinating the activities within the division or department. It also sends important reports and other important data to top level management. They evaluate performance of junior managers. They are also responsible for inspiring lower level managers towards better performance.

10. d. Explain the responsibilities of each level of management. Lower Level of Management - Supervisory / Operative / First-line managers Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees”. In other words, they are concerned with direction and controlling function of management. Their activities include - Assigning of jobs and tasks to various workers. They guide and instruct workers for day to day activities. They are responsible for the quality as well as quantity of production. They are also entrusted with the responsibility of maintaining good relation in the organization. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers. They help to solve the grievances of the workers. They supervise & guide the sub-ordinates. They are responsible for providing training to the workers. They arrange necessary materials, machines, tools etc for getting the things done. They prepare periodical reports about the performance of the workers. They ensure discipline in the enterprise. They motivate workers. They are the image builders of the enterprise because they are in direct contact with the workers.

11. Student Activity: e. Identify management functions. Workbook: page 95, Questions 1-17 and page 96 Questions 1-8 f. Describe the purposes of management functions. Review the following sites: http://www.managementhelp.org/mng_thry/mng_thry.htm http://www.cliffsnotes.com/study_guide/Management-and- Organizations.topicArticleId-8944,articleId-8847.html http://www.cliffsnotes.com/study_guide/Management-and- Organizations.topicArticleId-8944,articleId-8847.html

12. a. Explain the importance of planning to business. A plan is a blueprint for goal achievement that specifies the necessary resource allocations, schedules, tasks, and other actions. A goal is a desired future state that the organization attempts to realize. Goals are important because an organization exists for a purpose, and goals define and state that purpose. Goals specify future ends; plans specify today's means. The word planning incorporates both ideas: It means determining the organization's goals and defining the means for achieving them. Planning allows managers the opportunity to adjust to the environment instead of merely reacting to it. Planning increases the possibility of survival in business by actively anticipating and managing the risks that may occur in the future. In short, planning is preparing for tomorrow, today. It's the activity that allows managers to determine what they want and how they will achieve it.

13. b. Describe a planning process. Establishment of objectives Planning starts with the setting of goals and objectives to be achieved. Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts. Moreover objectives focus the attention of managers on the end results to be achieved. Hence objectives should be practical, acceptable, workable and achievable. Establishment of Planning Premises Planning premises are the assumptions about the lively shape of events in future. They serve as a basis of planning. Planning premises may be internal or external. Internal includes capital investment policy, management labor relations, philosophy of management, etc. Whereas external includes socio- economic, political and economical changes. Internal premises are controllable whereas external are non- controllable. Choice of alternative course of action When forecast are available and premises are established, a number of alternative course of actions have to be considered. For this purpose, each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization. Formulation of derivative plans Derivative plans are the sub plans or secondary plans which help in the achievement of main plan. These detail plans include policies, procedures, rules, programmers, budgets, schedules, etc. For example, if profit maximization is the main aim of the enterprise, derivative plans will include sales maximization, production maximization, and cost minimization. Securing Co-operation After the plans have been determined, it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence. Follow up/Appraisal of plans After choosing a particular course of action, it is put into action. The follow up must go side by side the implementation of plans so that in the light of observations made, future plans can be made more realistic.

14. c. Discuss barriers to effective planning (e.g., trouble making accurate forecasts, time and cost factors, internal and external inflexibilities, and rapid change). (1) Corporate planning is not integrated into the total management system, (2) There is a lack of understanding of the different steps of planning process, (3) Management at different levels in the organization has not properly engaged in or contributed to planning activities, (4) Responsibility for planning is wrongly vested solely in the planning department, (5) Management expects that plans developed will be realized with little effort, (6) In starting formal planning, too much is attempted at once, (7) Management fails to operate by the plan, (8) Management fails to grasp the overall planning process, (9) Financial projections are confused with planning, (10) Inadequate inputs are used in planning.

15. d. Explain characteristics associated with effective planning (e.g., simplicity, flexibility, linked to long-term objectives, consistency, feasibility, direction for action). (1) Develop accurate forecasts (2) Gain acceptance for the plan (3) Make sure the plan is sound (4) Assign responsibility for planning (5) Be objective (6) Keep the plan flexible (7) Revise your long- term plan every year (8) Make sure that the plan fits the situation

16. e. Explain why planning is generally considered the first, or primary, management function. It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources.

17. Student Activity: f. Distinguish among strategic, tactical, contingency, and managerial planning. Use the following site: http://www.cliffsnotes.com/study_guide/Detailing-Types-of-Plans.topicArticleId- 8944,articleId-8871.html http://www.cliffsnotes.com/study_guide/Detailing-Types-of-Plans.topicArticleId- 8944,articleId-8871.html