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

2. Section 7.1: Management Functions
Planning
Organizing
Leading
Controlling

3. 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

4. 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)

5. 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

6. 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

7. 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

8. 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?

9. 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.

10. 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

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

12. 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