1. 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.

2. Planning Planning is the process of setting short- and long-term goals and deciding how to achieve them. 2

3. 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. 3

4. 4 Chapter 7: Management How Management Functions Leading Through leadership, managers achieve organizational goals by motivating, communicating, and encouraging participation.

5. 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

6. 6 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.

7. 7 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.

8. 8 Chapter 7: Management Leadership Styles Leaders have different styles. The style of leadership used is dependent on the situation and the manager’s personality. Autocratic Leadership Autocratic leaders make all the decisions and do not allow for employee participation. Autocratic leadership is often used when quick decisions are necessary, such as lay-offs or company closures. However, if this type of leadership is used all the time, it causes too much discontentment among staff.

9. Laissez-faire Leadership A laissez-faire leader leaves employees alone to do their work. This can be beneficial to those employees who like independence. But it can be difficult for new workers or those who require more direction. 9

10. 10 Chapter 7: Management Leadership Styles Democratic Leadership Democratic leaders encourage employees to have a say in the decision-making process. This type of leadership encourages employees to contribute their ideas and creativity to the job. It also recognizes employees’ achievements and increases team spirit and morale. Democratic leadership is the most effective of the three styles to keep employees content and to increase productivity.

11. 11 Chapter 7: Management Ethical Behaviour and Management 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.

12. 12 Chapter 7: Management Ethical Behaviour and Management 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. Types of Teams Task force Self-managed work team Informal team Committee Cross-functional team Virtual team