Chapter 7: Management How Management Functions
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1 Chapter 7: Management How Management Functions To achieve organizational goals, management decides how to utilize human, financial, and material resources. The four major functions of management are planning, organizing, leading, and controlling. Planning Planning is the process of setting short- and long- term goals and deciding how to achieve them. Organizing Organizing is arranging people and tasks to carry out the business’s plans and objectives. The three levels of management are upper management, middle management, and lower-level management.
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Chapter 7: Management How Management Functions Leading Through leadership, managers achieve organizational goals by motivating, communicating, and encouraging participation. Controlling Controlling involves activities, such as employee discipline, performance appraisals, and budgeting. Managers use these methods to increase, maintain, or decrease the resources that are allocated to them. CONTROLLING A budget determines the number of employees in a department, the amount of money the department receives, and the amount of physical supplies it gets. When departments do not reach goals financial and physical resources may be cut. When goals are achieved budgets may be increased. LEADING Managers need to be skilled at motivating individuals and teams, they need to communicate effectively, and be able to hand conflict and stress. Motivating: Skillful managers understand that different rewards, such as money, fixtures, work assignments, verbal praise, trust, etc. motivate different people. Through this understanding managers can increase productivity and achieve organizational goals. Communicating: good leaders communicate directions, urgency, corporate values, plans, and goals efficiently and effectively. When employees do not receive information as it is intended by the sender, tasks have to be redone and time and money are wasted and damage to reputation is done. Encouraging Participation: Business decisions and moral can be improved when stakeholders (employees) are involved in decision making (participative planning).
Transcript of Chapter 7: Management How Management Functions
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Chapter 7: ManagementHow Management Functions
To achieve organizational goals, management decides how to utilize human, financial, and material resources. The four major functions of management are planning, organizing, leading, and controlling.
PlanningPlanning is the process of setting short- and long-term goals and deciding how to achieve them.
OrganizingOrganizing is arranging people and tasks to carry out the business’s plans and objectives. The three levels of management are upper management, middle management, and lower-level management.
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Chapter 7: Management How Management Functions
LeadingThrough leadership, managers achieve organizational goals by motivating, communicating, and encouraging participation.
ControllingControlling involves activities, such as employee discipline, performance appraisals, and budgeting. Managers use these methods to increase, maintain, or decrease the resources that are allocated to them.
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Chapter 7: ManagementManaging Resources
Businesses often have different managers for each resource area.
PurchasingPurchasing managers negotiate with suppliers for the supply and delivery of raw materials, equipment, supplies, and goods for resale.
ProductionActivities of a production manager range from processing the raw materials into a final product to packaging and storing the same product.
Marketing and DistributionUsing sales strategies, marketing and distribution managers ensure that the company’s products are sold.
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Chapter 7: ManagementManaging Resources
Research and DevelopmentResearch and Development (R&D) departments create new products or services or develop new and improved ways to produce the original product or service.
FinanceOften an accountant, the comptroller who manages the financial department is responsible for keeping records of the company’s financial transactions and money control.
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Chapter 7: ManagementLeadership StylesLeaders have different styles. The style of leadership used is dependent on the situation and the manager’s personality.
Autocratic LeadershipAutocratic leaders make all the decisions and do not allow for employee participation. Autocratic leadership is often used when quick decisions are necessary, such as lay-offs or company closures. However, if this type of leadership is used all the time, it causes too much discontentment among staff.
Laissez-faire LeadershipA laissez-faire leader leaves employees alone to do their work. This can be beneficial to those employees who like independence. But it can be difficult for new workers or those who require more direction.
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Chapter 7: ManagementLeadership Styles
Democratic LeadershipDemocratic leaders encourage employees to have a say in the decision-making process. This type of leadership encourages employees to contribute their ideas and creativity to the job. It also recognizes employees’ achievements and increases team spirit and morale. Democratic leadership is the most effective of the three styles to keep employees content and to increase productivity.
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Chapter 7: ManagementEthical Behaviour andManagement
Managers make decisions that guide the social responsibility, moral, and ethical behaviour of a business.
Management and EmployeesManagers are role models in an organization. When managers treat others with respect and dignity, their behaviour is perpetuated throughout the organization. Management and the EnvironmentBusinesses need to be aware that their decisions impact the environment. Good decisions minimize environmental damage; bad decisions accelerate it. Using environmentally friendly practices creates a positive public image for the company that may improve its bottom line.
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Chapter 7: ManagementEthical Behaviour andManagementManagement and the CommunityEthical decisions that impact local communities are made on a daily basis by a company’s management. Contributing to charitable organizations such as the United Way is one way that companies make a difference in their communities.
Teamwork in CompaniesA team is a collection of individuals with complementary skills who work together to pursue a common goal. Depending on the purpose and duration of the group, different types of teams are used to obtain organizational objectives.
Types of Teams
• Task force• Self-managed work team• Informal team
•Committee•Cross-functional team•Virtual team
