3. Business and management functions

Business Functions

Essential activities required for operating a business

Management

Process of planning, organizing, leading and controlling resources to achieve goals

Management Functions

POLC

1. Planning

2. Organizing

3. Leading

4. Controlling

Planning

Determining goals, strategies and resources needed to achieve objectives

Vision

Broad explanation of why an organization exists and where it is heading

Goal

Broad long-term accomplishment an organization wants to achieve

Objective

Specific short-term statement explaining how goals will be achieved

SWOT Analysis

Analysis of strengths, weaknesses, opportunities and threats

Strengths

Internal advantages of an organization

Weaknesses

Internal limitations or disadvantages of an organization

Opportunities

External factors that may benefit an organization

Threats

External factors that may harm an organization

Strategic Planning

Defining major goals and strategies for achieving them

Tactical Planning

Developing detailed short-term plans about what, who and how

Operational Planning

Setting work standards and schedules to carry out tactical plans

Contingency Planning

Preparing alternative actions if primary plans fail

Organizing

Arranging resources and assigning tasks to achieve objectives

Organization Chart

Diagram showing relationships, responsibilities and authority within an organization

Management Levels

Different layers of managers within an organization

Technical Skills

Ability to perform specialized tasks in a specific field

Human Relations Skills

Ability to communicate, motivate and work with people

Conceptual Skills

Ability to understand the organization as a whole

Leading

Motivating and directing people toward organizational goals

Leader

Person who influences and guides others toward objectives

Corporate Values

Principles and beliefs that guide an organization

Corporate Ethics

Standards of right and wrong behavior in business

Autocratic Leadership

Leadership style where decisions are made without consulting others

Participative Leadership

Leadership style involving employees in decision-making

Democratic Leadership

Leadership style based on collective decision-making

Free-Rein Leadership

Leadership style where employees have freedom in achieving objectives

Controlling

Monitoring performance and correcting deviations from plans

Performance Standards

Expected levels of performance against which results are measured

Monitoring

Tracking and recording actual performance

Corrective Action

Steps taken to fix performance problems and deviations

Controlling Process

1. Establish Performance Standards

2. Monitor Performance

3. Compare Results with Standards

4. Communicate Results and Deviations

5. Take Corrective Action