business

  • CHAPTER 7 How management functions 

  • To achieve organization goals 

  • Planning organizing leading controlling

Planning 

  • Planning is the process of setting short

Organizing 

  • Organizing is arranging people and tasks to carry out the business’s plans and objective 

  • The three levels of management are.. 

    • Upper management

    • Middle management

    • Lower-level management 

(PG.211)

UPPER MANAGEMENT 

Sets long-term company goals, such as developing new products, entering new markets, and selling off parts of the business 

Job titles are: CEOs, COO’s, CFO’s
MIDDLE MANAGEMENT
Interpret plans from upper management and puts them into acton 

Job titles are: Plant manager, regional manager, etc.
Regional managers give reports, they might control stores of the franchise maybe 10 or whatever. 

LOWER-LEVEL MANAGEMENT 

Implement plans from above. 

Job titles are: Team leader, foreperson, assistant manager, store manager 

Leading. 

Through leadership, managers achieve organizational goals by.. 

Motivating

Communicating

Encouraging participation 

Controlling 

Involves activities such as employee discipline, performance appraisals and budgeting. 

Managers use these methods to increase, maintain, or decrease the resources allocated to them. 

Managing Resources 

Businesses often have different managers for each resource area. 

Purchasing

  • Purchasing managers negotiate with suppliers for the supply, delivery of raw materials, equipment, supplies and goods for resale. 

Production

  • Activities of a production manager range from processing the raw materials into a final product to package and store the same product.

Marketing and distribution

  • Using sales strategies, marketing and distribution managers ensure that the company’s products are sold 

Research and development

  • This department creates new products or services or develops new and improved ways to produce the original product or service 

Finance 

  • Often an accountant, the comptroller manages the financial department. They are responsible for keeping records of the company’s financial transactions and money control 

Leadership Styles 

  • Leaders have different styles. The style of leadership used is dependent on the situation and the manager’s personality. 

Autocratic Leadership

  • Autocratic 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 Leadership


A laissez-faire leader leaves employees alone to do their work 

  • This can be beneficial to those employees who like independence - it’s giving autonomy 

  • But it can be difficult for new workers or those who require more direction 

Democratic leadership

  • Democratic leaders encourage employees to have a say in the decision-making process 

  • Encourages employees to contribute their ideas and creativity to the job 

  • Recognizes employees’ achievements and increases team spirit and morale. 

  • Most effective of the three styles to keep employees content and to increase productivity

Teamwork In companies 

  • A team is a collection of individuals with complementary skills (go hand in hand) who work together to pursue a common goal 

Types of teams.. 

  • Committee
    - Made up of people from different areas who do ongoing work on a specific task. Examples are.. Social committees, or an employee benefit committee

  • Cross-functional team
    - Members from different functional areas. Examples are.. Car-development team consisting of engineers, salespeople, accountants, and R&D representatives. This allows for a diversity of input and quick decision making. 

  • Virtual team
    - Works together across long distances through computer communication instead of face-to-face meetings. This decision-making process can save time and travel expenses.

  • Task force
    - Established to accomplish a specific task, after which it is disbanded. Examples are.. A task force for a new building design or product design. 

  • Self-managed work team
    - There is no official leader. 

- These teams manage their own hiring, training, developing, and scheduling
- The team is also responsible for all their own work

Examples are… Grade teachers. 

  • Informal team 

- Not put together by management, forms naturally. Examples include a car pool, a company softball team, or a lunch group.