GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 1.1 The Importance of Business Management In this section: The many changes in the business world today are creating new challenges for people who operate, or manage, those businesses This section discusses: • The Business World Today • What Is Management? • Levels of Management • The Management Process • The Principles of Management • Women and Minorities in Management Copyright © Glencoe/McGraw-Hill Slide of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 1.1 The Importance of Business Management What You’ll Learn • • • • • • What management is The three levels of management The management types Three types of management skills The principles of management The role of women and minorities in management Copyright © Glencoe/McGraw-Hill Slide of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 1.1 The Importance of Business Management Why It’s Important To understand how businesses make decisions, you will need to understand how management works Copyright © Glencoe/McGraw-Hill Slide of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 1.1 The Importance of Business Management Key Terms management human relations skills senior management technical skills middle management principle supervisory management glass ceiling role conceptual skills Copyright © Glencoe/McGraw-Hill Slide of 15 The Management Pyramid GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 1.1 The Importance of Business Management The Management Process What a manager does can be examined in three different ways • The tasks performed • The roles taken on • Type of skills required Copyright © Glencoe/McGraw-Hill Slide of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 1.1 The Importance of Business Management Management Tasks • Planning • Organizing • Staffing • Leading • Controlling Copyright © Glencoe/McGraw-Hill Slide of 15 Relative Amount of Emphasis Placed on Each Function of Management GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section Management Roles The Importance of Business Management Interpersonal Roles Information-Related Roles 1.1 Figurehead Relationship Builder Leader Monitor Communicator Spokesperson Decision-Making Roles Entrepreneur Negotiator Disturbance Handler Resource Director Copyright © Glencoe/McGraw-Hill Slide of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section Management Skills The Importance of Business Management 1.1 • Conceptual Skills • Human Relations Skills • Technical Skills Copyright © Glencoe/McGraw-Hill Slide 10 of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section Mix of Skills Used at Different Levels of Management 1.1 The Importance of Business Management Copyright © Glencoe/McGraw-Hill Slide 11 of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 1.1 The Importance of Business Management Principles of Management • A principle is a truth or law • Management principles are rules by which managers make decisions • Scientists proved scientific principles through controlled experiments • Most management principles are developed through observation and deduction • Management principles are more likely to change than specific principles • When management principles need to be changed, it is important for a manager to be able to change and adapt • Arriving to work at the same time every day and wearing certain kinds of clothes to work are examples of management principles that are changing Copyright © Glencoe/McGraw-Hill Slide 12 of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section Women and Minorities in Management The Importance of Business Management 1.1 • Until the 1980’s and 90’s, managers of most large and medium-sized U.S businesses were almost exclusively white males • Women and minorities filled primarily service, support, and menial jobs • Management principles regarding women and minorities are changing, and they are now serving in senior management such as CEO • Women and minorities often face a glass-ceiling – an invisible barrier that prevents them from moving up in the world of business • Women and minorities who are promoted can also provide more opportunities to promote women and minorities Copyright © Glencoe/McGraw-Hill Slide 13 of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 1.1 Fact of Idea Review The Importance and Business Management How have changes in modern business created challenges for managers? Which management level is responsible for: a Establishing a business partnership? b Resolving disputes between employees? c Designing a plan to meet a company goal? Cont Copyright © Glencoe/McGraw-Hill Slide 14 of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 1.1 Fact and Idea Review cont The Importance of Business Management Which role does a manager fill when resolving a dispute? Or when holding a staff meeting? List the three types of management skills and explain why each is important Can a management principle be proven just like a scientific principle? Explain Copyright © Glencoe/McGraw-Hill Slide 15 of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section Entrepreneurship In this section: The Importance 1.1 of Business Management Professional managers are paid to manage companies, but they don’t own them Businesses are started and run by entrepreneurs This section discusses: • What Is an Entrepreneur? • Entrepreneurs in Large and Medium-Sized Businesses • The Importance of Small Businesses Copyright © Glencoe/McGraw-Hill Slide 16 of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 1.1 The Importance of Business Management What You’ll Learn • What entrepreneurs • The difference between managers and entrepreneurs • The need for entrepreneurship and innovation in large and medium-size companies • The importance of small businesses Copyright © Glencoe/McGraw-Hill Slide 17 of 15 GLENCOE BUSINESS MANAGEMENT Real-World Why It’s Important Applications & Connections Section 1.1 The Importance of Business Management Knowing what is involved in starting and running a business will help you decide whether you want to start your own company some day Copyright © Glencoe/McGraw-Hill Slide 18 of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 1.1 The Importance of Business Management Key Terms • professional manager • entrepreneur • small business Copyright © Glencoe/McGraw-Hill Slide 19 of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 1.1 The Importance of Business Management What Is an Entrepreneur? • • • • Entrepreneurs are people who launch and run their own businesses Being an entrepreneur is much riskier than being a professional manager They can lose all the money invested in their business if the business fails Entrepreneurs tend to be more independent than managers and may have less formal education They start with an idea for creating or modifying a product or service that they believe in Copyright © Glencoe/McGraw-Hill Slide 20 of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & The Importance of Small Businesses Connections Section 1.1 The Importance of Business Management • A small business is a company that is independently owned and operated • According to the Small Business Administration, a small business has fewer than 100 employees • Owners of small businesses often perform all management tasks • More that 98 percent of the businesses in the United States are small businesses Copyright © Glencoe/McGraw-Hill Slide 21 of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & The Importance of Small Business Connections Section 1.1 The Importance of Business Management • They play an important role in the U.S economy because they employ millions of workers and sell billions of dollars of products and services • Small businesses tend to produce more innovations than larger businesses Copyright © Glencoe/McGraw-Hill Slide 22 of 15 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Fact and Idea Review Section 1.1 The Importance of Business Management List three personal characteristics shared by many entrepreneurs Being an entrepreneur is easier than being a professional manager—true or false? Explain Describe two things companies can to encourage their managers to think more like entrepreneurs Name two important roles small business play in the economy Copyright © Glencoe/McGraw-Hill Slide 23 of 15