Business Management Chapter 7 Quiz

Introduction to Business Management - BBA-PT XXXIV

• Course name: BBA-PT XXXIV Business Management
• Instructor: Milaika Capella Ras, MBA
• Instructor Email: [email protected]
• Session date: January 23, 2025
• Textbook: Introduction to Business 4e by Jeff Madura

Chapter 7: Managing Effectively

• Chapter focus: Strategies for effective management
• Key topics outlined:
  • Levels of management
  • Key functions of managers
  • Managerial skills
  • Time management

Functional Components of Effective Management

• Effective management is a crucial process involving:
  • Planning: Includes proper and effective planning of tasks
  • Organizing: Involves proper organization of tasks and communication to employees about job tasks
  • Communication: Essential to properly communicating job tasks and expectations to employees
  • Control: Involves proper control over tasks during execution
• Key outcomes resulting from effective management:
  • Firm's revenues and expenses
  • Firm's earnings
  • Firm's value

Management Definition

• Management is the process of allocating all resources (human and other) to achieve an organization's plans and objectives.

Levels of Management

• Top management: Responsible for long-term firm objectives.
• Middle management: Responsible for intermediate and short-term decisions; closer to production processes.
• First-line management: Supervisory managers closely involved with day-to-day production.

Managerial Decisions by Title

• Top Management (President, CFO):
  • Creating new products
  • Expanding the business, possibly through acquisitions
  • Borrowing funds/investing available funds
• Middle Management (Regional Sales Manager, Plant Manager):
  • Boosting sales in a specific region/city
  • Resolving customer complaints
  • Hiring additional staff
  • Revising assembly line structures/installing new equipment
• Supervisory Management (Account Manager, Supervisor):
  • Motivating workers involved in payment processing
  • Resolving conflicts among workers
  • Assessing quality of assembly-line workers
  • Assigning assembly-line tasks to workers
  • Handling customer complaints

Management Responsibilities by Level

• Top Management: Setting the plan for expansion and communicating it.
• Middle and Top Management: Deciding on hiring, pricing strategies, advertising, and funding.
• Supervisory Management: Providing job assignments and schedules for new hires.

Functions of Management

• Planning: Preparing for the future
  • Strategic, Tactical, Operational, Contingency plans.
• Organizing: Arranging resources to achieve objectives
  • Creating new jobs, reassigning jobs.
• Leading: Influencing employees to accomplish goals
  • Communicating job assignments, serving as a role model, motivating and delegating tasks.
• Controlling: Monitoring performance and taking corrective action
  • Comparing performance with expectations
  • Taking corrective actions based on deficiencies.

Managerial Skills

• Conceptual: Analytical skills, understanding tasks' relationships
• Interpersonal: Communication skills for employees and customers
• Technical: Skills needed for daily tasks
• Decision-making: Using info to allocate resources intelligently

Decision-Making Steps

• Identify potential decisions
• Gather information about each
• Estimate costs and benefits
• Make and implement a decision
• Periodically evaluate for improvements

Leadership Styles

• Autocratic: High control, limited employee input
• Democratic: Collaborative, encourages input
• Laissez-Faire: Minimal intervention, promotes innovation, but risks lack of direction
• Transformational: Inspiring, visionary, focuses on growth
• Transactional: Performance-driven, uses rewards/penalties

Leadership Styles and Employee Experience

• Leadership style varies with employee experience and individual personalities.

Business Functions and Strategic Plan

• Business functions such as management, marketing, and finance are used to achieve the strategic plan outlined.
• Management affects high production efficiency, quality, customer satisfaction, etc.
• Marketing affects customer satisfaction, market share, and innovation.
• Finance affects reducing financial costs and efficient resource use.

Contingency Planning

• Situations: Overbooked reservations, minor/major airplane repair needs
• Contingency Plans: Offering round-trip tickets, having engineers/rerouting flights.

How Planning Functions Interrelate

• Long-term planning: Outlines the mission and strategic plan
• Tactical planning: Sets goals aligned with strategic plans for the next year.
• Operational planning: Details how business functions can achieve tactical goals.
• Contingency planning: Creates alternative plans to handle unforeseen events.