1.1: introduction to business management

business management

• the role of a manager is to determine what will or won’t happen in a business
  • they choose the people and resources needed to operate the business
  • they turn ideas into real products and services
• managers make up a small percentage of overall employees
• common levels of management
  • supervisors (lowest level): directly oversee work of employees
  • eg. Starbucks store manager
  • middle managers: work in one specialized area of a business
  • eg. regional outreach coordinator for the Midwest
  • executives (highest level): top-level managers who make company-wide strategic decisions
  • led by the “C-Suite” (CEO, CFO, CMO, etc.)
  • the CEO (Chief Operating Officer) is the highest manager at most companies

functions and responsibilities of managers

• planning: analyze information, make decisions about what needs to be done to pursue the company’s goals
• organizing: determine how plans can be accomplished most effectively, arrange resources to complete work
• implementing: focus on carrying out the plan as efficiently as possible, helping employees work more effectively in relation to the overarching business plan
• controlling: evaluate results to determine if objectives have been met, restructure or continue work

the industrial revolution

• the United States moved from a primarily agrarian subsistence economy to an industrialized economy
  • prioritizing and developing the use of machinery
• beginning of WIDESPREAD STANDARDIZATION
• created the need for more complex oversight, analysis, strategy, etc. — necessitated the development of managerial techniques and theories
• business is a relatively recent field of study; the Wharton Business School at the University of Pennsylvania was the first post-secondary business institution (founded in 1881)

theories of management

• classical management: the application of science to business (focus on process)
• administrative management: the prioritization of efficient organizational structures and effective use of resources
• behavioral management: the prioritization of employee’s senses of value, contribution, and safety/security in their job; perception of care
• quality management: the prioritization of training, participation, and commitment of employees to ensure the highest quality product/service possible is being offered by the company

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