BBI2OIntroduction to Business

Unit 2: Functions of Business

2.C Management

Functions of Management

There are 4 functions of managementPlanningOrganizingLeadingControlling

Functions of Management con’t

Planning – to set the direction Decide where you want to go Decide how to best go about it

Organizing – to create structures Divide up work Arrange resources Coordinate Activities

Functions of Management con’t

Leading – to inspire effort Build enthusiasmCommunicate the visionMaintain momentum

Controlling – to ensure results Measure performance Take corrective action

Levels of Management

Mgmt is classified to three basic levels:Top (or Upper) MgmtMiddle MgmtLower Mgmt

Top mgmt has more responsibility than Lower mgmt, they also operate on a longer-term basis. Top mgmt sets the goals and vision of the organization. To be effective, the vision must be consistent at each managerial level

Managerial Skills con’t

The three basic managerial skills are conceptual, human & technical skills.

Higher level managers need more conceptual skills and fewer technical skills

Lower level managers need more technical skills and fewer conceptual skills

Human skills are needed at all levels

Managerial Skills

Types of Managerial Problems

5 main typesRoutine – arise periodically, standard responseNon Routine – unique situationsExpected – anticipated situationsUnexpected – not anticipated, usually dealt with

‘after the fact’ (reactionary)Crisis – can lead to disaster (natural disaster,

criminal act, lawsuit)

Leadership Styles 3 main styles:

Autocratic, Laissez-Faire, Democratic Autocratic

Leader controls situation No input from employees Best when quick, or unpopular decisions needed Too much can lead to employee discontentment

Laissez-Faire Leaves employees alone to do their jobs Good when employees are mature, experienced Too much can lead to unmotivated, directionless employees

Leadership Styles con’t

Democratic Employees contribute to decision making, by

sharing their input, information and creativity Employees feel appreciated, and work harder

because they know their contributions are valued Most effective leadership style in most situations

Excellent leaders know when to apply each of these styles, and can seamlessly change between all three, as situations require

Study Guide

Can you name: The 4 functions of management? The 3 levels of mgmt? The 3 managerial skills? The 5 types of managerial problems? The 3 leadership styles?