Business Management

Chapter 7

Purpose of management

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

The word management refers to the people who are in charge of running a business.

Functions of management

  • Planning: the act or process of creating goals and objectives as well as strategies to meet them.
  • Organizing: getting the resources arranged in an orderly and functional way to accomplish goals and objectives.
  • Leading: providing direction and vision.
  • Controlling: keeping the company on track and making sure goals are met.

Managerial structures

  • Line authority: managers on one level are in charge of those beneath them.
  • Centralized organization: puts authority with top management.
  • Decentralized organization: gives authority to a number of different managers.
  • Departmentalization: divides responsibility among specific units or departments.

Six necessary skills for effective management

  1. Can handle many tasks at the same time
  2. Keep accurate business records
  3. Work under pressure
  4. Good problem-solving and time management skills
  5. Good communicator
  6. Human relation skills.

Advantages and disadvantages of a business manager

1. Advantages:
  • managers usually earn more money than employees in non-management jobs
  • Usually good leaders
  • managers have more influence and authority than other employees
  • Greater control over time.

2. Disadvantages:

  • Often blamed when things go wrong
  • Mistakes can be very costly to the company
  • Under a lot of pressure to make the right decision

Is a manager's job for you? Why?I

I don't think I could be a good manager because I lack many of the skills needed. For example, I am really bad at communicating. Also, I don't work good under pressure and I don't think I could keep up accurate business records. I also don't like having to put all the weight of the business on my shoulders because I know I'm gonna mess up.