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.
• 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 businesss 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.

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Chapter 7 ManagementManaging Resources

• Businesses often have different managers for each
  resource area.
• Purchasing
• Purchasing managers negotiate with suppliers for
  the supply and 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 packaging and storing the same product.
• Marketing and Distribution
• Using sales strategies, marketing and
  distribution managers ensure that the companys
  products are sold.

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Chapter 7 ManagementManaging Resources

• Research and Development
• Research and Development (RD) departments create
  new products or services or develop new and
  improved ways to produce the original product or
  service.
• Finance
• Often an accountant, the comptroller who manages
  the financial department is responsible for
  keeping records of the companys financial
  transactions and money control.

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Chapter 7 ManagementLeadership Styles

• Leaders have different styles. The style of
  leadership used is dependent on the situation and
  the managers 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. But it can be
  difficult for new workers or those who require
  more direction.

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Chapter 7 ManagementLeadership Styles

• Democratic Leadership
• Democratic 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 Employees
• Managers are role models in an organization. When
  managers treat others with respect and dignity,
  their behaviour is perpetuated throughout the
  organization.
• Management and the Environment
• Businesses 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
andManagement

• Management and the Community
• Ethical decisions that impact local communities
  are made on a daily basis by a companys
  management. Contributing to charitable
  organizations such as the United Way is one way
  that companies make a difference in their
  communities.
• Teamwork in Companies
• A 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