Test #4 Review Forms of Business Resources & Management

The Functions of Management Management is the process of: 1. Planning 2. Organizing 3. Leadership 4. Control of people and resources in order to reach a series of goals.

1. Planning Is the processes of setting short and long range goals and to decide on how to achieve them 2. Organizing Organize the operation of the venture, bringing together the human, material, financial and technological resources needed to meet goals

3. Leading Motivating followers to achieve a common goal. Case Study - Portrait of Muhammad Yunus - Media Player at No - Flash Player InstallationPortrait of Muhammad Yunus - Media Player at No - Flash Player Installation Managers must direct, lead and motivate people to perform to the best of their ability: YouTube - Miracle - Coach Brooks Addresses Team Pre Game Leaders have a vision YouTube - Martin Luther King, Jr.: I Have a DreamYouTube - Martin Luther King, Jr.: I Have a Dream\ YouTube - Obama Speech on Victory (Part 4) Good leaders depend on others to help them achieve their goals

???Organizing vs Leading??? Organizers: Find the right people Decide who should do what Organize resources to achieve a goal Leaders: Motivate others to achieve a goal Inspire people to give their best Provide direction

How to Motivate In order to motivate people you need to know what motivates them. Is it money (many times yes)? Is it praise? A leader must understand the hierarchy of needs in order to know what motivation is needed to get the job done. Marriott = Pizza

Types of Leaders Autocratic – Entirely goal oriented and make all the decisions, Hitler Democratic – Employees are encouraged to participate in decision making. Justin Trudeau Collegial – Democratic and regard everyone as equals Laissez Fair – Concentrate on giving employees freedom. This is typical of professional organizations or places where intellectual property is important (creativity)

Types of Leaders Autocratic Leaders: Entirely goal oriented Make all decisions for the company and expect employees to “do as they are told.” Clash with “free thinkers” May alienate staff May be valuable in companies where decisions need to be made very quickly Democratic Leaders: Encourage employees to have some say Workers feel ownership of the organization Delegate the authority to make decisions to subordinates and foster an atmosphere of trust People in higher positions have more say in terms of final decisions

Collegial Leaders: Democratic leaders who tend to regard everyone as equal, rather than part of a hierarchy Encourage all people to have say in decisions Laissez-faire leaders Very “hands off” style of leadership Leadership responsibilities are shared by all Employees given the freedom to determine what they should so and how they should do it. Great in organizations where creative ideas are valued Can be highly motivational Can make decision making time- consuming Organization may lack direction

Communication Break down What makes a good communicator? ie Verbal, Written, Artistic In a business, communication is essential and depending on the type of business it could be the most important factor Communication can come from the top down and from the bottom up. The beliefs and policies of the organization come from the top and every day processes consider this. Listening is important as well and an organization can fail if it does not listen to its workers and customers.

Thrasher Example in the text

4. Controlling Controlling is the process of monitoring all functions of an organization to ensure that plans are being implemented effectively Includes addressing and readdressing all plans, goals and strategies at regular intervals

Inventory control Monitoring that inventory is at required levels Tracking Production Controls Assuring production quantity and quality are consistent and up to standards Financial controls Monitor business financial success and failure Cash flow 4. Controlling

Business Resources Fixed Costs are the costs that are the same each month or year or quarter. Examples are salaries, rent, lease payments on equipment, dues and licenses Variable Costs are costs that change from month to month. Examples are electricity, fuel, raw materials, repairs.

Business Resources Human Resources – the people who make the venture operate Internal Human Resources – people within the organization like designers, writers, customer service External Human Resources – people outside the organization like accountants, lawyers, marketing advisers