This document provides an overview of management and the management functions. It explains that management involves coordinating resources to accomplish organizational goals. The main management functions are planning, organizing, staffing, directing, and controlling. Planning involves deciding what work will be done and how. Organizing establishes how work will be structured and reported. Staffing finds and assigns employees. Directing provides guidance to employees. Controlling monitors performance to ensure goals are met. The document also distinguishes between different management levels and their responsibilities, and discusses the key resources managed - human, financial, material, and information.

1. Manage
This!
Business Administration LAP 6

2. Objectives
Explain management and the
management functions.
Explain management levels
and responsibilities.

3. Objective A
Explain management and the
management functions.

4. There are many opportunities to be a manager.
• More than seven million people employed in management
positions
• In industries from advertising to zoology
Managers earn more than any other category of worker.
• Average annual salary for managers is $70,800.
• Some top executives earn in the millions.
You are involved in management every day.
• Follow your supervisor’s instructions
• Organize your own workload

5. What Is
This Thing
Called
Management?
The logical process
of coordinating
resources, such as
money and
employees, in order
to accomplish an
organization’s goals
Nothing would get
done in business
without management.

6. Managers are responsible
for management.
They decide how to
use the business’s
resources to
accomplish an
organization’s goals
and make sure the
work gets done.

7. Managers don’t usually do the work themselves.
• Make sure there are enough
employees to perform tasks
• Get the resources for
employees to use and
goods for customers to buy

8. Managers do their own work.
• Handle finances
• Deal with suppliers
• Arrange for advertising
• Hire and train employees
• Supervise overall operation
Managers need to understand the
jobs of the workers.
They need to:
• Know how workers should do
their jobs.
• Be realistic about what
workers can do.
• Set standards, encourage
employees to be productive
and do their best.

9. Controlling Directing
Staffing
Organizing
Planning

10. Planning
Deciding what work will be done
and how it will be accomplished
Example: As the owner of a health spa, you might set
a goal of increasing sales.
Goal: Increase sales
Planning lays the
groundwork for the
other management
functions.

11. Organizing
Setting up the way the business’s work will be done
• Determining the jobs that
need to be performed
• Grouping jobs into
departments and
establishing lines
of authority
• Making sure employees
know their jobs and who
their supervisors are
Organizing is a big job in large businesses.
• There are many
departments, many
employees, and a great
deal of work to do.
• A lot of managers must
work together to make the
best use of resources.
Organizing is also important in small
businesses, but easier.
• Only a few employees
• Only a limited number
of jobs that need done

12. Staffing
Finding employees who know how to
do the necessary work
• Identifying the types of skills
that employees need
• Developing ways to recruit/hire
the most qualified people
• Assigning new employees to a
work area
• Deciding what skills will be
needed for the future
• Planning training for new and
current employees

13. Directing
Providing guidance to workers and work projects
• Setting direction for the
business
• Influencing employees
to follow that direction
• Guiding workers in
carrying out the work
Developing a
team spirit among
employees
Rewarding employees
for hard work
through bonuses or
incentive plans
Directing also involves motivating and leading
workers to accomplish company goals.

14. Controlling
Monitoring the work effort
• Coordinating the
business’s activities
• Making sure the
company is performing
effectively and
achieving its goals

15. Strong link between planning
and controlling
Planning sets the goals.
Controlling makes sure the goals
are being met.

16. Controlling involves monitoring and measuring
employees’ performance and correcting problem areas.
• Managers set standards and evaluate
employees against those standards.
• If managers find problems, they
make corrections.

17. Skills managers need:
Communication
skills Relationship
skills
Decision-making
skills
Technical
skills

18. Communication Skills
• Managers and owners
must clearly communicate
with employees.
• Communication must be
specific and easy to
understand.
• Workers can’t accomplish
the business’s goals if
they don’t know what they
are or what procedures
to follow.

19. Relationship Skills
• Managers work with others to
be successful.
• They need to interact and
build relationships.
• Building relationships
involves:
• Treating employees fairly
• Listening to their concerns
• Understanding that they
are important
• There is no need for
managers without
employees.

20. Decision-making Skills
• Managers gather and analyze
information to make decisions.
• They must make decisions
quickly to solve immediate
problems.
• Need to understand available
information so they can:
• Identify various options
• Decide which course to take
for the good of the business

21. Technical Skills
• Managers need to understand the
technical aspects of the business,
although they don’t perform the
specific tasks.
• They need to answer questions,
give directions, and solve
problems.
• They don’t need to be experts, but
they need an overall knowledge of
the business’s work.

22. Objective B
Explain management levels
and responsibilities.

23. All businesses have managers.
Small
businesses
may only have
one manager.
Top-level
(executive)
Mid-level
(middle)
First-line
(supervisory)

24. Top-level, or executive, management
• Responsible for the operation
of the entire organization
• There are only a few top
managers because they are at
the highest level of the business.
These managers . . .
are also the ones who are
blamed if the business has a
bad year and profits are down.
goalsovertime
•Monitorthebusiness’s
performance

25. Mid-level, or middle, management
Responsible for implementing the goals set by
top management
Examples of
mid-level
managers:
Sales
managers
Middle managers report to top managers and
have lower level managers who report to them.
They are
considered
the link
between
top-level
and
first-line
managemen
t.
Middle managers identify
strategies to achieve the
business’s goals.
• Plan actions the business
will take on short-term basis
from decisions made by top
management
• Figure out how to make
top management’s vision
a reality

26. First-line, or
supervisory, management
They make the vision happen by carrying out the
actions identified by middle management.
Examples of
first-line
managers:
Office
manager
Shift
supervisor
Head
cashier
• They are responsible for the
day-to-day activities of the
employees they supervise.
• There are more managers at
this level than any other
level of management.
• Competent employees who
perform well are often
promoted to supervisory
positions.

27. Human
Financial
MaterialInformation

28. Human Resources
All of the business’s
employees who work
to produce goods
and services
Many businesses believe employees are the most
important resource; without them, the business
couldn’t function.
Managing human
resources is a very
important area of
management for
most businesses.

29. Human Resources
Top-level
(executive)
Mid-level
(middle)
First-line
(supervisory)
All levels of management are involved with human resources.
Top managers are
mainly concerned that
there are enough
employees to meet the
business’s needs.
Middle and supervisory
managers are responsible
for the daily human
resources issues.

30. Financial Resources
Are all the sources of money
available to the business
• Cash business has on hand
• Income from sales or investments
• A line of credit for borrowing funds
• Money owed by customers
• Any other source from which the
business can obtain funds
Businesses use financial resources to . . .
buy supplies and materials.
pay employees.

31. Financial Resources
The way managers handle financial resources often
determines the business’s success.
Smart Co.
Clueless
Corp.

32. Financial Resources
Different managers have different financial responsibilities.
Top managers have final
responsibility for
profitability of the
business.

33. Material Resources
The equipment and supplies that businesses need to
produce and/or sell their goods and services
Managing material
resources involves
purchasing/maintaining
the right type and amount
of equipment and supplies
for workers to use.
Regional managers
or branch
managers
often are the ones
who decide what’s
needed and
purchase the
materials.
First-line managers give middle managers information
about the equipment/supplies workers need.

34. Information
Includes facts, statistics, and opinions
There are two types of information:
External information is from outside the company.
• What’s going on in the industry
• State of the economy
• Activities of the competition
• Changes in government
regulations and consumer trends

35. Information from within the
business, e.g., sales and
efficiency reports
Internal

36. Information
Managers get information from many sources.
Top managers can
receive information
from consulting firms
and middle managers.
Middle managers
get information from
first-line managers
and pass it on to
top-level managers.
Managers and owners are better able to make decisions
when they have a lot of information.

37. Human
Financial
Material
Information
Businesses must effectively
manage all resources.

38. • Use management information to better understand
your supervisor’s role and responsibilities.
• Use management information to manage yourself.
• Use management information to evaluate your
management skills.

39. Requires all management levels to carry out
their responsibilities and work together

40. A human resources manager must lay off one
employee, but there are no procedures to follow.
• Identifies two employees who were most
recently hired
• The manager knows one employee better
than the other.
• Which factors should the manager consider?

41. MarkED
Acknowledgements
Original Developer
Christopher C. Burke, MarkED
Version 1.0
Copyright  2003
MarkED Resource Center

42. Digital-based photography sources:
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Women’s Life
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DIGITAL STOCK CORP.;
Diversity in Business
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Diversity in Business 2
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Manufacturing and Industry
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44. Digital-based photography sources:
PHOTODISC, INC.;
Meetings and Groups Vol 69
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