CHAPTER 7: BUSINESS MANAGEMENTIntroduction to Business

Unit 2: Business Ownership

SECTION 7.1:MANAGEMENT FUNCTIONS

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

Planning

Organizin

g

Leading

Controlling

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)

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

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

Organizing: Levels of Management

Top-Level Manager

Middle Manager

Operational

Manager

Operational

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

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?

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.

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

Controlling: Some Areas to Monitor

BudgetsSchedules and

DeadlinesQuality

Employee Performance

Customer Satisfaction

Sales and Other Indicators

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