Business Management Study Guide
Chapter 1 Managing and Management Responsibilities
Lesson 1.1: The Role and Work of Managers
The Changing Nature of Management
- Managers determine how companies will do and how well they will perform
- Turn ideas into products and services
- Make up a small percentage of all company employees
- There are several levels of managers in an organization
- Some are directly responsible for day-to-day operations and the employees
working to complete them
- Higher level managers are not directly responsible for daily operations
- They spend time planning, problem solving, and making decisions for the
good of the company
- The nature of management and way managers interact with employees have changed over
time
- In the past, managers exerted control and authority
- Employees were given strict orders and had little information about what
they were doing
- Relationships between managers and employees were formal and
sometimes antagonistic
- Now, managers work closer with employees
- Employees are constantly informed of performance and changes in the
company
- Help with important decisions as well
- There is more respect in the company and communication as well as cooperation
is much stronger
Management Activities
- There are many different kinds of managers
, - Some control large corporations and others only focus on a small business with
few employees
- Managers are in control of many aspects of the company including:
- Purchasing
- Sales
- Communication
- Technology
- Management - the procedure of achieving the goals of an
organization through the effective use of people and other
resources
- Those resources include money, facilities, equipment,
and materials
- Different types of managers make it difficult to identify exactly what they do
- But there are certain activities that all managers must always perform. These
activities fall under four categories:
- Planning - Analyzing information and making decisions about what needs
to be done
- Organizing - Determining how plans can be accomplished most
effectively and arranging resources to complete work
- Implementing - Carrying out the plans and helping employees to work
effectively
- Controlling - Evaluating results to determine if the company’s objectives
have been accomplished as planned
- Operating any business is a complex process, so if managers are not prepared, problems
could easily develop
Managers and Nonmanagement Employees
- Employees often complete tasks that could be considered management activities
- Develop plans to accomplish assignments
, - Organize their workspace and the materials they use to complete their work
efficiently
- May lead a group project or help evaluate the completed project
- Provides opportunities for employees to participate in activities that were once in
the domain of managers
- New knowledge and skills help employees understand the work of managers and prepare
for possible promotions
- Manager - Completes all four management functions on a regular basis and has authority
over other jobs and people
Levels of Management
- Most companies have more than one level of management
- Small companies have 2-3 levels while large companies have 5-6 management
classifications
- Management Pyramid - The levels of management in
an organization
- There are more managers at the lower levels and
fewer at higher levels
- The chief executive or owner who heads the
business is at the top of the pyramid
- Supervisor - A manager whose main job is to direct the work of employees
- Are the first level of management in a company
- Often perform non-managerial activities in addition to overseeing the work of
others
- At the bottom of the management pyramid
- Supervisors work most directly with employees so they devote most of their time
implementing and monitoring results of their work team
- Executive - Top-level who spends almost all of his or her time on management functions
and decisions that affect the entire company
- Have other managers reporting to them
- At the top of the management pyramid
, - Executives spend most of their time on planning and organizing because they
work with other managers and are responsible for the business’ overall success
- Middle Manager - Completes all of the management functions, but spends most of the
time completing specialized work in one management function or is responsible for a
specific part of the company’s operations
- May complete detailed planning activities, manage a specific product line, or be
responsible for a specialized division
- The amount of time devoted to each management function differs depending on
the management level
Lesson 1.2: The Historical Development of Management
Management Through the Ages
- In order to make decisions about how work would be completed, managers have to ask
questions such as:
- What resources do we need to complete the work?
- How and where will we get the resources?
- Who will be responsible for various tasks?
- How will we decide if the completed work is satisfactory?
The Earliest Forms of Management
- The first managers had to rely on their instincts, intuition, and experience to decide how
to organize work and operate their businesses
- Some of the earliest civilizations organized organized large numbers of people to
accomplish difficult tasks
- They organized vast agricultural enterprises and developed systems of commerce
and finance
- Up until the development of technology and machines, most work was completed
using manual labor
The Industrial Revolution
- Industrial Revolution - The era of the eighteenth and nineteenth centuries in which
machine power replaced human and animal power in the production process, leading to
major business and social changes
Chapter 1 Managing and Management Responsibilities
Lesson 1.1: The Role and Work of Managers
The Changing Nature of Management
- Managers determine how companies will do and how well they will perform
- Turn ideas into products and services
- Make up a small percentage of all company employees
- There are several levels of managers in an organization
- Some are directly responsible for day-to-day operations and the employees
working to complete them
- Higher level managers are not directly responsible for daily operations
- They spend time planning, problem solving, and making decisions for the
good of the company
- The nature of management and way managers interact with employees have changed over
time
- In the past, managers exerted control and authority
- Employees were given strict orders and had little information about what
they were doing
- Relationships between managers and employees were formal and
sometimes antagonistic
- Now, managers work closer with employees
- Employees are constantly informed of performance and changes in the
company
- Help with important decisions as well
- There is more respect in the company and communication as well as cooperation
is much stronger
Management Activities
- There are many different kinds of managers
, - Some control large corporations and others only focus on a small business with
few employees
- Managers are in control of many aspects of the company including:
- Purchasing
- Sales
- Communication
- Technology
- Management - the procedure of achieving the goals of an
organization through the effective use of people and other
resources
- Those resources include money, facilities, equipment,
and materials
- Different types of managers make it difficult to identify exactly what they do
- But there are certain activities that all managers must always perform. These
activities fall under four categories:
- Planning - Analyzing information and making decisions about what needs
to be done
- Organizing - Determining how plans can be accomplished most
effectively and arranging resources to complete work
- Implementing - Carrying out the plans and helping employees to work
effectively
- Controlling - Evaluating results to determine if the company’s objectives
have been accomplished as planned
- Operating any business is a complex process, so if managers are not prepared, problems
could easily develop
Managers and Nonmanagement Employees
- Employees often complete tasks that could be considered management activities
- Develop plans to accomplish assignments
, - Organize their workspace and the materials they use to complete their work
efficiently
- May lead a group project or help evaluate the completed project
- Provides opportunities for employees to participate in activities that were once in
the domain of managers
- New knowledge and skills help employees understand the work of managers and prepare
for possible promotions
- Manager - Completes all four management functions on a regular basis and has authority
over other jobs and people
Levels of Management
- Most companies have more than one level of management
- Small companies have 2-3 levels while large companies have 5-6 management
classifications
- Management Pyramid - The levels of management in
an organization
- There are more managers at the lower levels and
fewer at higher levels
- The chief executive or owner who heads the
business is at the top of the pyramid
- Supervisor - A manager whose main job is to direct the work of employees
- Are the first level of management in a company
- Often perform non-managerial activities in addition to overseeing the work of
others
- At the bottom of the management pyramid
- Supervisors work most directly with employees so they devote most of their time
implementing and monitoring results of their work team
- Executive - Top-level who spends almost all of his or her time on management functions
and decisions that affect the entire company
- Have other managers reporting to them
- At the top of the management pyramid
, - Executives spend most of their time on planning and organizing because they
work with other managers and are responsible for the business’ overall success
- Middle Manager - Completes all of the management functions, but spends most of the
time completing specialized work in one management function or is responsible for a
specific part of the company’s operations
- May complete detailed planning activities, manage a specific product line, or be
responsible for a specialized division
- The amount of time devoted to each management function differs depending on
the management level
Lesson 1.2: The Historical Development of Management
Management Through the Ages
- In order to make decisions about how work would be completed, managers have to ask
questions such as:
- What resources do we need to complete the work?
- How and where will we get the resources?
- Who will be responsible for various tasks?
- How will we decide if the completed work is satisfactory?
The Earliest Forms of Management
- The first managers had to rely on their instincts, intuition, and experience to decide how
to organize work and operate their businesses
- Some of the earliest civilizations organized organized large numbers of people to
accomplish difficult tasks
- They organized vast agricultural enterprises and developed systems of commerce
and finance
- Up until the development of technology and machines, most work was completed
using manual labor
The Industrial Revolution
- Industrial Revolution - The era of the eighteenth and nineteenth centuries in which
machine power replaced human and animal power in the production process, leading to
major business and social changes
