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3. Read to Learn
Describe the overall purpose of management.
Discuss the four functions of management.

4. The Main Idea
The purpose of management is to set goals for the company and to help meet those goals as efficiently and effectively as possible. There are four functions of management: planning, organizing, leading, and controlling.

5. Key Concepts
Introduction to Management
The Four Functions of Management

6. Key Term
the process or functions of planning, organizing, leading, and controlling
management
the act or process of creating goals and objectives as well as the strategies to meet them
planning

7. Key Term
getting the resources arranged in an orderly and functional way to accomplish goals and objectives
organizing
a chart that shows how the firm is structured and who is in charge of whom
organizational chart

8. Key Term
a manager who is responsible for setting goals and planning for the future as well as leading and controlling the work of others
top-level manager

9. Key Term
middle manager
a manager who carries out the decisions of top management
operational manager
a manager who is responsible for the daily operations of a business

10. Key Term
leading
providing direction and vision
keeping the company on track and making sure goals are met
controlling

11. Introduction to Management
If a firm has employees, then some type of management is necessary.
management
the process or functions of planning, organizing, leading, and controlling

12. Management Responsibilities Meeting Goals Efficiently
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Management Responsibilities
Meeting Goals Efficiently
Focusing on Goals
Profit Made

13. The Four Functions of Management
The four functions of management are:
Planning
Organizing
Leading
Controlling
Some managers may primarily focus on one or two of these functions.

14. Figure 7.1
Management Functions

15. The Four Functions of Management
A challenge for many managers is dealing with multiple objectives, each at a different functional level.
Communicating with employees at all times helps assure that objectives are met.

16. Planning
Planning involves figuring out the resources that are needed and the standards that must be met.
planning
the act or process of creating goals and objectives as well as strategies to meet them

17. Organizing and Staffing
A manager is responsible for organizing people, work processes, and equipment.
organizing
getting the resources arranged in an orderly and functional way to accomplish goals and objectives

18. Organizing and Staffing
A manager may be involved in creating an organizational chart.
organizational chart
a chart that shows how the firm is structured and who is in charge of whom

19. Organizing and Staffing
A small firm may have only one top-level manager.
top-level manager
a manager who is responsible for setting goals and planning for the future as well as leading and controlling the work of others

20. Organizing and Staffing
Middle managers are often responsible for various departments in a business.
middle manager
a manager who carries out the decisions of top managers

21. Organizing and Staffing
Supervisors, office managers, and crew leaders are types of operational managers.
operational manager
a manager who is responsible for the daily operations of a business

22. Leading Leading involves: Setting standards Delegating work
Enforcing policies
Resolving conflicts
leading
providing direction and vision

23. Showing a Strong Work Ethic
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How Good Managers Lead by Example
Showing Respect
Showing Honesty
Showing Loyalty
Showing Courtesy
Showing a Strong Work Ethic
Showing Motivation
Showing Initiative
Showing Cooperation
Showing Punctuality

24. Controlling
Controlling involves several tasks, including monitoring customer satisfaction.
controlling
keeping the company on track and making sure goals are met

25. Graphic Organizer Controlling Keeping track of budgets
Keeping track of schedules
Monitoring the quality of products or services
Monitoring and reviewing employee performance
Taking corrective action when goals are not met
Monitoring customer satisfaction

26. Incentive Plans
Some companies try to motivate employees with incentives such as on-site child care and bonuses.

27. You and your friend, Jeremiah, were helping your little brother figure out how to make molded cars from melted crayons using a kit you gave him. You decide to sell the cars at a local toy shop. Jeremiah wants to be a partner in your business.
Decision Making Since Jeremiah was involved in the initial experiment, do you have an obligation to make him a partner? What about your little brother?

28. Answer
Students might suggest that both Jeremiah’s and the little brother’s input into the process of making the cars should be rewarded in some way, especially if their ideas result in sales and profits. Having partners can help an entrepreneur launch and grow a business. However, disagreement among partners can sometimes present significant roadblocks to success.

29. What is management?
The aspect of business that involves planning, organizing, leading, and controlling.

30. What are three levels of management?
top, middle, and operational

31. Which of the three levels is most involved in the day-to-day supervision of employees?
operational management

32. End of