Chapter 7: Business Management Introduction to Business Unit 2: Business Ownership

Section 7.1: Management Functions Planning Organizing Leading Controlling

Planning Organizing Leading Controlling Management Most managers carry out four different functions of management. Some managers may primarily focus on one or two of these functions. A challenge for many managers, especially those in small businesses, is dealing with multiple objectives at different functional levels. Balancing and managing interdependent functions Allocating scarce resources to multiple areas of the business

Planning Planning = act or process of creating goals and objectives – Where are we going? Strategies to meet goals and objectives (long- and short-term) – How will we get there? Requires manager to identify Resources needed (e.g. time, money, manpower, etc.) Standards that must be met (e.g. goals, quality requirements)

Organizing Organizing = obtaining and coordinating resources so that a business’s goals and objectives can be met Resources include People (Staffing): hire, train, schedule, and manage employees Work Processes: design workflow and coordinate schedules Equipment: obtain and schedule necessary machinery and other tools

Organizing: Levels of Management Organizing also involves determining how different individuals in the firm relate to one another. Organizational chart = graphic showing how a firm is structured and who is in charge of whom

Organizing: Levels of Management Top-Level Manager Middle Manager Operational Manager Goal-setting and planning for business; determine vision and strategies; leading and controlling Carries out decisions of top management; responsible for departments or divisions; organizing, leading, and controlling, with some planning Responsible for daily operations; some planning and organizing, but mostly leading and controlling

Fast Break: Group Discussion Some people believe that the planning function is the most important one for a manager. Do you agree? Why or why not? How do you use the organizing function when you are assigned a group project? Do students tend to do this together or select a group member to act as a manager? Is that a good strategy? Why or why not? Many businesses make the organizational chart available for review by employees. How do you think having easy access to the organizational chart makes work flow more smoothly?

Leading Leading = influencing, guiding, and directing people under one’s management to carry out their assigned tasks Means providing direction and vision Also includes Setting standards (e.g. deadlines, sales quotas) Delegating work = assigning tasks to subordinates Enforcing policies Overseeing time management Providing feedback on employees’ work (e.g. approval, constructive criticism, performance evaluations) Resolving conflicts Good managers lead by example.

Controlling Controlling = keeping the company on track and making sure goals are met Involves Setting standards for work Evaluating performance Solving problems that interfere with performance Tracking and monitoring progress Taking corrective action when necessary

Controlling: Some Areas to Monitor Budgets Schedules and Deadlines Quality Employee Performance Customer Satisfaction Sales and Other Indicators

Fast Break: Teacher as Manager An important aspect of teaching is classroom management. Brainstorm a list of the things your teachers have to do to keep class running smoothly. Then, create a chart like this one and sort the tasks on your list into the different functions of managers. Functions of Managers Planning Organizing Leading Controlling