Chapter 7

Nikki Opel

The Overall Purpose of Management

Management helps businesses focus on setting and meeting goals efficiently and effectively so that a profit can be made.

The Four Functions of Management

Planning is the act or process of creating goals and objectives as well as the strategies to meet those goals and objectives

Organizing is getting resources arranged in an orderly and functional way to accomplish goals and objectives. Managers also hire and train employees-and fire them when necessary.

Leading is providing direction and vision.

Controlling is keeping the company on track and making sure goals are met.

Managerial Structures

Line Authority is an organizational structure in which managers at the top of the line are in charge of those beneath them, and so on.

Line and Staff Authority is an organizational structure with direct lines of authority as well as staff who advise line personnel

Centralized Organization is an organization that puts authority in one place - with top management

Decentralized Organization is an organization that gives authority to a number of different managers

Departmentalization is dividing responsibility among specific units, or departments

effective management

  • task-oriented
  • keep accurate business records
  • knowledge of business
  • communicate well
  • human relations skills
  • problem solving

advantages/disadvantages of being a manager

Managers usually earn more money than employees in non-management jobs. Managers who are good leaders are respected. Managers have more influence and authority than other employees because they plan, organize, direct, and control company resources.

There are several disadvantages to being a manager. Managers are often blamed when things go wrong, even if they did not cause the problem. Their mistakes can be very costly to a company so they are under a lot of pressure to make the right decisions.

Is a manager's job for me?

I personally do not do well under stress and tend to mess up when I feel pressured so I would say that a management position is not for me.