1. Intro to Business Chapter 7
Business Management
Intro to Business
Chapter 7

2. Managing Functions Section 7-1 - Management Functions
Describe the overall purpose of management
Discuss the four functions of management
Relate the following terms to your own life:
Planning
Organizing
Leading
Controlling
6-1

3. Managing Functions Introduction to Management Management Managers
Includes the process or functions of planning, organizing, leading and controlling
People who are in charge of running a business
Helps businesses focus on setting and meeting goals efficiently and effectively so that a profit can be made.
Managers
Need a thorough understanding of business operations
Develop objective for firms and departments.
6-1

4. Managing Functions The Four Functions of Management Planning
The act or process of creating goals (short and long term)
and objectives as well as the strategies to meet them.
Find out what resources are needed and standards that must be met
Organizing and Staffing
Organizing- Getting the resources arranged in an orderly and functional way to accomplish goals and objectives.
Staffing – Hire, train and evaluate employees
Fire them when necessary
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5. Managing Functions Levels of Management
Organizational Chart – Shows the structure of the business and who is in charge.
Top – Level Manager
Responsible for setting goals
Planning for the future
Leading and controlling the work of others
Middle Manager
Carries out the decisions of the top management
Responsible for various Departments (production, marketing, accounting)
Operational Manager
Responsible for daily operations of business
Supervisors, office managers, crew leaders
Oversee workers and meet deadlines
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6. Managing Functions John Smith Mary Jones Jay Addison Thomas Williams
President, CEO
Mary Jones
Vice President
Jay Addison
Manager
Thomas Williams
Jo Ann Cox
Mark Green
Linda Bradley

7. Managing Functions Leading Controlling Providing direction and vision
Set standards, such as deadlines and sales quota
Delegate work, enforce policies, time management, provide feedback
Good Managers lead by example
Controlling
Keeping the company on track and making sure goals are met
Keep track of budget, schedule, and quality of the products or services they provide
6-1

8. Questions What is management? What are the three levels of management?
Which of the three levels is most involved in the day-to-day supervision of employees?
Some people think that the planning function is the most important one for a manager. Why might that be true?
Some companies are using fewer middle managers, how have the jobs of top-level management and operational managers changed?

9. Learning Targets Section 7.2: Management Structures
Identify the differences between management structures
Name the six skills necessary for effective management

10. Management Structures
Ways to organize a business
Line Authority
Organizational Structure in which managers on one level are in charge of those beneath them
Advantage - Authority is clearly defined, know who reports to who
Disadvantage - Managers have few specialists who help with their responsibilities
Line and Staff Authority
Shows direct line authority as well as who advises the line personnel
Advantage - Enables managers to get advice
Disadvantage - Can lead to overstaffing
7-2

11. Line and Staff Authority

12. Management Structures
Centralized Organization
Puts management in one place (top management)
Helps management be consistent in decision making
Decentralized Organization
Gives authority to a number of different managers
Number of managers have authority
Decisions can be made at local level where managers are more familiar with the problems

13. Management Structures
Formal Structure
Departmentalized
Divides responsibilities among specific units, or departments.
Can be divided by:
Geographic location
Function
Customer Groups
Product
Informal Structure
Usually used in smaller businesses
Employees can be more flexible and share duties
Partners can work alone or together on projects

14. Management Structures
Is a Manager’s Job for You?
Most managers begin in entry – level jobs (beginner level)
Gain experience and show certain qualities can be promoted
Skills needed by managers
Task oriented – handle many tasks at one time
Plan your time – Decide which tasks are more important
Keep Accurate business records
Be able to work under pressure and solve problems
Time Management skills
Good communication skills (listening is important)
Human relations skills
Must have knowledge about the technical aspects of their business

15. Management Structures
Advantages of Being a Manager
Earn more money
Have the ability to lead
Good leaders are respected
More influence and Authority
Greater Control over time
Disadvantages of Being a Manager
Blamed when things go wrong
Mistakes can be costly to the company
Under a lot of pressure

16. Questions
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?
Why do you think it is a good idea for workers to have more decision-making duties and provide input to managers?
Why might a manager decide to change an informally structured organization into a formally structured one?