Presentation on theme: "1 Chapter 7: Management How Management Functions To achieve organizational goals, management decides how to utilize human, financial, and material resources."— Presentation transcript:
1 Chapter 7: Management How Management Functions To achieve organizational goals, management decides how to utilize human, financial, and material resources. The four major functions of management are planning, organizing, leading, and controlling. Planning Planning is the process of setting short- and long-term goals and deciding how to achieve them. Organizing Organizing is arranging people and tasks to carry out the business’s plans and objectives. The three levels of management are upper management, middle management, and lower-level management.
2 How Management Functions Leading Through leadership, managers achieve organizational goals by motivating, communicating, and encouraging participation. Controlling Controlling involves activities, such as employee discipline, performance appraisals, and budgeting. Managers use these methods to increase, maintain, or decrease the resources that are allocated to them.
5 Chapter 7: Management Managing Resources Businesses often have different managers for each resource area. Purchasing Purchasing managers negotiate with suppliers for the supply and delivery of raw materials, equipment, supplies, and goods for resale. Production Activities of a production manager range from processing the raw materials into a final product to packaging and storing the same product. Marketing and Distribution Using sales strategies, marketing and distribution managers ensure that the company’s products are sold.
6 Chapter 7: Management Managing Resources Research and Development Research and Development (R&D) departments create new products or services or develop new and improved ways to produce the original product or service. Finance Often an accountant, the comptroller who manages the financial department is responsible for keeping records of the company’s financial transactions and money control.
7 Managers make decisions that guide the social responsibility, moral, and ethical behaviour of a business. Management and Employees Managers are role models in an organization. When managers treat others with respect and dignity, their behaviour is perpetuated throughout the organization. Management and the Environment Businesses need to be aware that their decisions impact the environment. Good decisions minimize environmental damage; bad decisions accelerate it. Using environmentally friendly practices creates a positive public image for the company that may improve its bottom line.
8 Management and the Community Ethical decisions that impact local communities are made on a daily basis by a company’s management. Contributing to charitable organizations such as the United Way is one way that companies make a difference in their communities. Teamwork in Companies A team is a collection of individuals with complementary skills who work together to pursue a common goal. Depending on the purpose and duration of the group, different types of teams are used to obtain organizational objectives.
The Six Types of Teams Committee: people form different organizational areas who work on an ongoing basis on a specific task, such as; social committee or an employee benefits committee. Task Force: formed to accomplish a specific task then disbanded such as; a team to design a new building or to design a new product.
Cross-functional Team: allowing diversity of input and quick decision making, this team has members form different functional areas such as accounting departments, marketing departments, HR departments, etc. Self-managed Work Team: responsible for their own work, including hiring, training, developing, and scheduling, this team has no official leader.
Virtual Team: a team structure where individuals work via computer communications and often over long distances, this style can save time and money. Informal Team: present in all organizations, these groups are not formed by management but arise from the relationships among employees, examples include a car pool, sports team, or lunch group. See Table 7.2, “Advantages and Disadvantages Teamwork” on page 220.
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