1. Chapter 7 - Management

2. Functions of Management

3. Four Major Functions of Management
1. Leading
Motivating, communicating, and encouraging participation.
2. Controlling
Employee discipline, performance appraisals, budgeting, etc.
Use these methods to increase, maintain, or decrease the resources that are allocated to them.
CONTROLLING
A budget determines the number of employees in a department, the amount of money the department receives, and the amount of physical supplies it gets.
When departments do not reach goals financial and physical resources may be cut.
When goals are achieved budgets may be increased.
LEADING
Managers need to be skilled at motivating individuals and teams, they need to communicate effectively, and be able to hand conflict and stress.
Motivating: Skillful managers understand that different rewards, such as money, fixtures, work assignments, verbal praise, trust, etc. motivate different people. Through this understanding managers can increase productivity and achieve organizational goals.
Communicating: good leaders communicate directions, urgency, corporate values, plans, and goals efficiently and effectively. When employees do not receive information as it is intended by the sender, tasks have to be redone and time and money are wasted and damage to reputation is done.
Encouraging Participation: Business decisions and moral can be improved when stakeholders (employees) are involved in decision making (participative planning).

4. Four Major Functions of Management
3. Planning
set short- and long-term goals
decide how to achieve them.
4. Organizing
arranging people and tasks
three levels of management
upper management
middle management
lower-level management.
PLANNING
Managers are people who get things done by directing others.
Short-term goals are often expressed as a sales or income target.
Long-term economic goals are to maximize profit.
Managers must clearly understand these goal, and they range from department to department, and develop strategies to achieve them.
ORGANIZING
Each department within company has its own manager who determines tasks and duties, establishes and maintains relationships with other departments.
To accomplish these goals managers hire employees and write the necessary job descriptions.
The three levels of management are (see Figure 7.1, “Levels of Management”, on page 211):
Upper managements: Positions such as CEO (chief executive officer), COO (chief operating officer), CFO (chief financial officer), vice-president of marketing, and vice-president of human resources sets long-term goals.
Middle Management: Positions such as plant manager and regional manager interprets plans from upper management and puts them into action
Lowe-level management: Positions such as team leader, foreperson, and assistant manager implement plans from above.

5. Different Resource Managers
Purchasing Manager
Sets up the supply and delivery of raw materials, equipment, supplies, and goods for resale.
Production Manager
Processing the raw materials into a final product
Marketing and Distribution Manager
Ensures that the company’s products are sold using sales strategies
PURCHASING
Raw materials are the ingredients that are transformed into another product.
Just-in-time (JIT) is a process by which required items are delivered immediately before they are needed, rather than kept on hand, thereby reducing shipping cost and warehouse needs (space and staff).
PRODUCTION
Production managers ensure that the business makes what it is supposed to make.
Production managers arrange and coordinated maintenance, shift scheduling, machinery repair, and technological improvements.
MARKETING AND DISTRIBUTION
Sales strategies include advertising, promotional activities, and publicity.
Distribution managers attempt to improve product distribution through direct sales (sales representatives) or indirect sales (vending machines, catalogues, and Internet sales).

6. Different Resource Managers
Research and Development Manager
creates new products or services
develops new and improved ways
Finance Manager
Comptroller responsible for keeping records of the company’s financial transactions and money control (accountant)
RESEARCH AND DEVELOPMENT
Consumers often provide businesses with feedback conveying likes and dislikes about product and services. They will also provide information about new products and services that they want or need.
R&D managers provide reports containing valuable information for purchasing, production, and marketing managers that allow them to make better decisions.
FINANCE
Financial controllers and managers set budgets for departments in conjunction with the department managers.

7. Watch Under Cover Boss!
While watching, note the management style and the feedback that the boss is receiving to improve his/her business