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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.

PlanningPlanning is the process of setting short- and long-term goals and deciding how to achieve them.

OrganizingOrganizing is arranging people and tasks to carry out the business’s 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

LeadingThrough leadership, managers achieve organizational goals by motivating, communicating, and encouraging participation.

ControllingControlling 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.

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

ProductionActivities of a production manager range from processing the raw materials into a final product to packaging and storing the same product.

Marketing and DistributionUsing sales strategies, marketing and distribution managers ensure that the company’s products are sold.

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Chapter 7: ManagementManaging Resources

Research and Development

Research and Development (R&D) 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 company’s financial transactions and money control.

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Chapter 7: ManagementLeadership Styles

Separate presentation to follow

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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 EmployeesManagers are role models in an organization. When managers treat others with respect and dignity, their behaviour is perpetuated throughout the organization. Management and the EnvironmentBusinesses 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 CommunityEthical decisions that impact local communities are made on a daily basis by a company’s management. Contributing to charitable organizations such as the United Way is one way that companies make a difference in their communities.

Teamwork in CompaniesA 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

Types of Teams

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