Presentation on theme: "Intro to Business Chapter 7"— Presentation transcript:
1 Intro to Business Chapter 7 Business ManagementIntro to BusinessChapter 7
2 Managing Functions Section 7-1 - Management Functions Describe the overall purpose of managementDiscuss the four functions of managementRelate the following terms to your own life:PlanningOrganizingLeadingControlling6-1
3 Managing Functions Introduction to Management Management Managers Includes the process or functions of planning, organizing, leading and controllingPeople who are in charge of running a businessHelps businesses focus on setting and meeting goals efficiently and effectively so that a profit can be made.ManagersNeed a thorough understanding of business operationsDevelop objective for firms and departments.6-1
4 Managing Functions The Four Functions of Management Planning The act or process of creating goals (short and long term)and objectives as well as the strategies to meet them.Find out what resources are needed and standards that must be metOrganizing and StaffingOrganizing- Getting the resources arranged in an orderly and functional way to accomplish goals and objectives.Staffing – Hire, train and evaluate employeesFire them when necessary6-1
5 Managing Functions Levels of Management Organizational Chart – Shows the structure of the business and who is in charge.Top – Level ManagerResponsible for setting goalsPlanning for the futureLeading and controlling the work of othersMiddle ManagerCarries out the decisions of the top managementResponsible for various Departments (production, marketing, accounting)Operational ManagerResponsible for daily operations of businessSupervisors, office managers, crew leadersOversee workers and meet deadlines6-1
6 Managing Functions John Smith Mary Jones Jay Addison Thomas Williams President, CEOMary JonesVice PresidentJay AddisonManagerThomas WilliamsJo Ann CoxMark GreenLinda Bradley
7 Managing Functions Leading Controlling Providing direction and vision Set standards, such as deadlines and sales quotaDelegate work, enforce policies, time management, provide feedbackGood Managers lead by exampleControllingKeeping the company on track and making sure goals are metKeep track of budget, schedule, and quality of the products or services they provide6-1
8 Questions What is management? What are the three levels of management? Which of the three levels is most involved in the day-to-day supervision of employees?Some people think that the planning function is the most important one for a manager. Why might that be true?Some companies are using fewer middle managers, how have the jobs of top-level management and operational managers changed?
9 Learning Targets Section 7.2: Management Structures Identify the differences between management structuresName the six skills necessary for effective management
10 Management Structures Ways to organize a businessLine AuthorityOrganizational Structure in which managers on one level are in charge of those beneath themAdvantage - Authority is clearly defined, know who reports to whoDisadvantage - Managers have few specialists who help with their responsibilitiesLine and Staff AuthorityShows direct line authority as well as who advises the line personnelAdvantage - Enables managers to get adviceDisadvantage - Can lead to overstaffing7-2
12 Management Structures Centralized OrganizationPuts management in one place (top management)Helps management be consistent in decision makingDecentralized OrganizationGives authority to a number of different managersNumber of managers have authorityDecisions can be made at local level where managers are more familiar with the problems
13 Management Structures Formal StructureDepartmentalizedDivides responsibilities among specific units, or departments.Can be divided by:Geographic locationFunctionCustomer GroupsProductInformal StructureUsually used in smaller businessesEmployees can be more flexible and share dutiesPartners can work alone or together on projects
14 Management Structures Is a Manager’s Job for You?Most managers begin in entry – level jobs (beginner level)Gain experience and show certain qualities can be promotedSkills needed by managersTask oriented – handle many tasks at one timePlan your time – Decide which tasks are more importantKeep Accurate business recordsBe able to work under pressure and solve problemsTime Management skillsGood communication skills (listening is important)Human relations skillsMust have knowledge about the technical aspects of their business
15 Management Structures Advantages of Being a ManagerEarn more moneyHave the ability to leadGood leaders are respectedMore influence and AuthorityGreater Control over timeDisadvantages of Being a ManagerBlamed when things go wrongMistakes can be costly to the companyUnder a lot of pressure
16 QuestionsWhat 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?Why do you think it is a good idea for workers to have more decision-making duties and provide input to managers?Why might a manager decide to change an informally structured organization into a formally structured one?