BUSINESS MANAGEMENT

1
INTRODUCTION TO MANAGEMENT

• CHAPTER 1
• BUSINESS MANAGEMENT
• REAL WORLD APPLICATIONS
• CONNECTIONS

2
LEARNING OBJECTIVES

• Discuss changes taking place in the business
  world today.
• Define management and the management process.
• Understand the three levels of management.
• Explain the three types of management skills.
• Explain the importance of management.
• Define entrepreneurship.
• Understand the term glass ceiling and how it
  applies to the role of women and minorities in
  management.
• Define a principle.

3
THE IMPORTANCE OF BUSINESS MANAGEMENT

• Business today operate in a world of constant
  change
• Technology and society are changing more rapidly
  than ever before
• Concern for the environment has forced companies
  to think about how their actions affect the
  quality of the air, land, and water

4
THE IMPORTANCE OF BUSINESS MANAGEMENT Cont

• Competition is fiercer than ever before because
  companies from all over the world now try to sell
  their products and services to the same
  customers.
• Workplaces have become increasingly diverse as
  minorities, women, and new immigrants participate
  in growing numbers.
• All these changes have created new challenges for
  managersthe people who manage businesses.

5
WHAT IS MANAGEMENT?

• Management is the process of deciding how best to
  use a businesss resources to produce goods or
  provide services. A businesss resources include
  its
• Employees
• Money (capital)
• Equipment
• All organizations, from one person businesses to
  giant corporations, need managers.

6
SENIOR MANAGEMENT

• The highest level of managementtop level
• First, it establishes the goals or objectives of
  the business
• Second, it decides what actions are necessary to
  meet those goals
• Finally, it decides how to use the companys
  resources.
• This level of management usually includes the
  chairperson of the board of directors, the CEO,
  COO, and the companys senior vice presidents.

7
OTHER TYPES OF MANAGEMENT

• Middle management is responsible for achieving
  the goals set by senior management. Middle
  management includes the following
• Company department heads
• District sales managers
• Supervisory management is responsible for the
  people who physically produce the companys
  products or provide its services. They include
• Forepersons (floor supervisors)
• Crew leaders
• Store managers

8
ORGANIZATION

• The term organization refers to an entity that
  has a distinct purpose, has people or members,
  and has a systematic structure.
• An organization is a systematic arrangement of
  people brought together to accomplish some
  specific purpose.
• Purpose
• People
• Systematic Structure

9
MANAGEMENT TASKS

• Managers in all organizationsfrom small
  businesses to large corporationsengage in some
  basic activities. These activities can be
  divided into four main categories.
• 1. Planninga manager decides on company goals
  (objectives) and the actions the company must
  take to meet them. This is the job of the CEO.
• 2. Leadinga manager provides the guidance
  employees (people) need to perform their tasks.
  This helps to ensure that company goals are met.
• 3. Organizinga manager groups related activities
  (tasks) together and assigns employees to perform
  them.
• 4. Controllinga manager measures how the
  business performs to ensure that financial goals
  are being met. (performance)

10
Definitions of Management Roles

• Interpersonal Roles (managers relationships with
  people)
• Figurehead Manager serves as official
  representative of the organization of unit.
• Relationship Builder Manager interacts with
  peers and with people outside the organization to
  gain information.
• Leader Manager guides and motivates staff and
  acts as positive influence in the workplace.

11
Information-Related Roles

• Monitor Manager receives and collects
  information.
• Communicator Manager distributes information
  within the organization.
• Spokesperson Manager distributes information
  outside the organization.

12
Decision-Making Roles

• Entrepreneur Manager initiates change.
• Disturbance Handler Manager decides how
  conflicts between subordinates should be resolved
  and steps in when a subordinate suddenly leaves
  or an important customer is lost.
• Resource Director Manager decides how the
  organization will use its resources.
• Negotiator Manager decides to negotiate major
  contracts with other organizations or individuals.

13
Management Skills

• Conceptual Skills
• The skills that help managers understand how
  different parts of a business relate to one
  another and to the business as a whole. Decision
  making, planning, and organizing are managerial
  activities that require conceptual skills.

14
Human Relations Skills

• INTERPERSONAL SKILLS
• The skills managers need to understand and work
  well with people. Interviewing job applicants,
  forming partnerships with other businesses, and
  resolving conflicts all require good human
  relations skills.

15
Technical Skills

• The specific abilities that people use to perform
  their jobs, such as operating a word processing
  program, designing a brochure, using Simply
  Accounting, and training people to use a new
  budgeting system are all technical skills.

16
Political Skills

• Having the right connections at the various
  levels of government or with businesses within a
  community not considered a good business
  practice, but helps anyway. In business, as in
  life, Its not about what you know its who you
  know. It helps to have friends in high places
  or with the right connections. i.e., rich people
  hang out or socialize with other rich people.

17
Principles of Management

• A Principle is a basic truth or law
• Management principles are more likely to change
  than physical principles
• They are more likely to be interpreted
  differently by different people.
• Management principles are best viewed as guides
  to action rather than rigid laws.
• Being able to change and adapt during times of
  uncertainty is an important management skill.
• A dress code is an example of a mgmt. principle

18
Women Minorities in Management in the Past

• In the past managers of most large and
  medium-sized US businesses were almost
  exclusively white males.
• In the 1950s and 1960s women in the workforce
  provided mostly service roles, such as
  secretaries, teachers, sales clerks, waitresses,
  etc.
• Many minority workers, especially those with
  little education, were confined to menial jobs
  such as custodial work and manual labor

19
Women Minorities Today

• Women and minorities now serve as CEOs of some of
  the most prestigious businesses including Avon,
  eBay, and Lucent.
• In 1999, Hewlett-Packard was the first of the 30
  largest US companies to appoint a woman as
  CEOCarleton Fiorina
• In 2000 women held 44 of the managerial
  positions in the field of public administration
• In 2002 women had made up 25 of the Senior
  Executive Service, the federal governments
  highest- ranking managers.

20
Entrepreneur

• Entrepreneurs are people who launch and run their
  own businesses. When they start out, they must
  perform many of the basic management functions
  that professional managers perform. As their
  companies grow, they sometimes hire professional
  managers.
• Professional managers are paid to perform
  management functions within a company they do
  not own the business.

21
Entrepreneurs

• Without entrepreneurs, there would be no new
  businesses and fewer exciting developments, or
  innovations in business and industry.
• Being an entrepreneur is much riskier than being
  a professional manager.
• Entrepreneurs tend to be more independent than
  managers.
• Entrepreneurs tend to have less formal education.
• Some entrepreneurs jump from job to job before
  starting their own businesses.

22
Entrepreneurs, contd.

• Start with an idea for creating or modifying a
  product or service that they believe in.
• Like the idea of making decisions and being their
  own bosses.
• They often find tremendous satisfaction in their
  work, and their financial rewards can be great.
• They work long hours and make decisions about
  every aspect of the business.
• They invest money in their businesses and risk
  losing all of it.

23
Entrepreneurs

• Entrepreneurs own their businesses, but they can
  choose among different types of ownership.
• Sole proprietorship Own and run a business
  single-handedly.
• Partnership One or more partners may supply the
  money while another runs the business or two or
  more people may run a business together.
• Corporation Formed to avoid being held
  personally responsible.
• Franchise some entrepreneurs choose to own
  franchises.