1. Chapter 7 Business Management
7.1: Management Functions
Describe the overall purpose of management
Discuss the four functions of management
7.2: Management structures
Identify the differences between management structures
Name six skills necessary for effective management

2. Key Vocabulary Management Planning Organizing Organizational chart
Top-level manager
Middle manager
Operational Manager
Leading
Controlling

3. Introduction to Management
Entrepreneurs who start and run their own business do not have to manage themselves but once they start hiring, they are the new manager
Management- includes the processes or functions of planning, organizing, leading, and controlling
Comic book company
Managers supervise and direct the employees to tasks to benefit the company

4. Introduction to Management
Help businesses focus on setting and meeting goals effectively and efficiently so a profit can be made
Refers to the people who are in charge of running a business
Need to know the overall goals to help employees accomplish them

5. Career research
Research the requirements for a management major at RCGC or Rowan University
Determine the types of courses that students must take.
Write a page paper describing the required course work

6. Four Functions of Management
The four levels are:
Planning, Organizing, Leading, and Controlling
These are listed in order of occurrence
Usually divide managers among these four functions
Trouble is there are usually multiple objectives at each of the four levels going on simultaneously
Suppose your company’s manager discusses plans to produce a new comic book with marketing and production teams. The manager directs the marketing team to research the national and global markets for comic books. The manager also tells the production team to prepare and produce the new product
It is up to the managers to make sure these project are completed in a timely matter

7. Planning
Is the act or process of creating goals and objectives as well as strategies to meet them
Also need to determine resources needed and standards to be met.
Some people believe that the planning function is the most important one for a manager. Why might that be true?

8. Organizing and Staffing
Getting the resources arranged in an orderly and functional way to accomplish goals and objectives
Must be organized to maintain efficiency and reduce down time
Must be trained properly and fit the position
Make sure the employees have the tools needed to succeed.

9. Levels of Management
An Organizational chart shows how the firm is structured and who is in charge of whom
Top-level management-responsible for setting goals and planning for the future as well as leading and controlling the work of others
In small businesses maybe only one or two people, in corporations there be as many as 10-20
Middle-management- carries out the decisions of top-management
Responsible for the departments of the business such as production, marketing, and accounting

10. Levels of Management
Operational Management- responsible for the daily operations of the business.
Supervisors, office managers, and crew leaders

11. Critical Thinking
Since companies are using fewer middle managers, how have the jobs to top-level management and operational managers changed?

12. Leading Means providing direction and vision
Vision will help inspire employees to work
Apple or Google
Direction will set the standard of work and who is working toward what goal
Good leaders can delegate work, enforce policies, oversee time management, and provide feedback on employees’ work
Practice what you preach can also help to motivate employees

13. Controlling
Keeping the company on track and making sure that the goals are met.
Budget, employee work schedule, and quality of product or service
Monitor employees and customers to create the best experience for everyone.

14. Assignment
Imagine you are in charge of the next school dance, fundraiser, or school function.
In one page indicate some of the tasks you would need to complete in each of the functions of management.

15. Review What is Management? What are the three levels of management?
Which of the three levels is most involved in day to day supervision of employees?
You are a delivery manager at Blue Bag, a wholesale bakery. The bakery employs two drivers and owns two trucks. Each truck can deliver up to 175 crates of bread per day. The bakery has standing orders for 340 crates per day, but a new supermarket is opening up, and you expect orders to increase 225%. If you hire two more drivers, will it be enough to cover the increase in orders?

16. 7.2 Management Structure
Identify the differences between management structures
Name six skills necessary for effective management

17. Key Vocabulary Line authority Line and staff authority
Centralized organization
Decentralized organization
Departmentalization
Entry-level job

18. Managerial Structures
Line authority- is an organizational structure in which managers on one level are in charge of those beneath them
An advantage would be that authority is clearly defined
A disadvantage is that managers have few specialists to consult with for help
Line and staff authority- shows the direct line of authority as well as staff who advise the line personnel.
An advantage would be allowing management to get advice
A disadvantage is that this could lead to over-staffing

19. Managerial Structures
Centralized Organization- put authority in one place, usually at the top
Help managers be consistent in decision making
Decentralized Organization- gives authority to a number of different managers
More common in international business due to the expanded scope of business and an expertise in a certain area.

20. Managerial Structures
Formal structures
Departmentalization- divides the responsibility among specific units or departments
Geographic location, function, customer groups, product
Informal structure
Smaller businesses can function with less organization
Less units and scope means you need less people
Employees must be more flexible and able to multi-task

21. Critical Thinking
What are the pros and cons for working under formal management?
What about informal management?
If you had your ideal choice in management, which would you choose to work for?
If you were manager, how would you manage?

22. Science and Tech Trends
Use page 117 of your text books and these four websites to create a page paper on game theory and the science of decision making in business.

23. Is a Manager’s Job for You?
Most managers start on the bottom level
Entry-level jobs- are considered beginners jobs and get your foot in the door
Used to gain experience and find a niche in the company to be successful (or fired)

24. Skills Needed to Manage
Ability to multi-task and triage decision making
Solve Macro problems in the business but still manage the day-to-day issues
Communication is also very important
People can’t do what they don’t know or don’t understand
Listening is the same thing as communication, managers need to be effective at both
Need to deal with all types of people with all types of attitudes

25. Skills Needed to Manage
Must understand how various parts of the business add up to whole sum of the business
Understand outside influence on the business such as economic conditions or competition with other businesses

26. Advantages of Being a Manager
Usually earn more money than non-management employees
Highest level manager (CEO) usually highest paid manager
How many CEOs’ annual salary is only $1?
People look to you for your leadership
Good leaders inspire and influence employees to strive for greatness
Less people to report to
More leisure time and you can choose what to work on

27. Disadvantages of Being a Manager
Usually gets blamed when things go wrong
Under a lot of pressure to get the job done right, cost effectively, and hopefully earlier than expected.

28. Find your Dream Job Go to the Occupational Outlook Handbook
Click on the OOH Search/ A-Z index and search for “medical and health services manager”
Write a one page paper describing the occupation, how to prepare for it, and the future prospects of its availability.

29. Critical Thinking
Describe your ideal manager.

30. Review
What is an advantage of a line and staff authority organization structure over a line authority organization?
Why do some businesses use a decentralized organization?
What are some characteristics of an effective manager?