Check Your Progress Chapter 6
1.
Why is management so important and what is its purpose?
Management is the process designed to achieve an organizations objectives by using its
resources effectively and efficiently in a changing environment. This is important because it will run
the whole business once these few items are into placed.
2.
Explain why the American Heart Association would need management, even though its goal is not
profit related.
AHA still needs management even though they are a nonprofit organization. This is because even
though they don’t make money they still have to set deadlines for activities and fundraisers.
Without management in a company there is no happy medium, everyone will be stressed out. You
won’t know who’s in charge of what when it comes to the money and the rest of the normal
business structure.
3.
Why must a company have financial resources before it can use human and physical resources?
A company must have financial resources before it can use human and physical resources. This is
because without the financial resources you do not have the ability to have human or physical
resources. Without the money resource how are you going to buy anything to produce the products
when there is no material.
4.
Name the five functions of management, and briefly describe each function.
Planning-activities to achieve the organizations objectives.
Organizing- resources and activities to achieve the organizations objectives.
Staffing- the organization with qualified people.
Directing- employees activities toward achievement of objectives.
Controlling- the organizations activities to keep it on course.
5.
Identify the three levels of management. What is the focus of managers at each level?
First Line Management- foreman, supervisors, office managers.
Middle Management- plant managers, division managers, department managers.
Top Management- president, CEO, executive, vice presidents.
6.
In what areas can managers specialize? From what area do top managers typically come?
Managers can specialize in finance, production, and operations, human resources, marketing, and
administration. Top managers typically come from many years of varied experience and command
top salaries.
7.
What skills do managers need? Give examples of how managers use these skills to do their jobs.
Leadership- They can influence their employees, effective in interpersonal relationships,
communicate effectively (person, e-mail, ect.), understand the financial
Technical Expertise- Have the knowledge and training needed to perform jobs that are related to
particular areas of management.
Conceptual Skills- have the ability to think in abstract terms and to see how parts fit together to
form the whole.
Analytical- have the ability to identify relevant issues, recognize their importance, understand the
relationships between them, and perceive the underlying causes of a situation.
Human Relations Skills- have the ability to deal with people, both inside and outside organization.
8.
What are three styles of leadership? Describe situations in which each style would be
appropriate.
Autocratic Leaders- Make all the decisions and then tell employees what must be done and how to
do it.
Democratic Leaders- Involve their employees in decisions. The manager presents a situation and
encourages their subordinates to express opinions and contribute ideas.
Free-rein Leaders- Let their employees work without interference. The manager sets performance
standards and allows employees to find their own ways to meet them.
9.
Explain the steps in the decision-making process.
Recognize and Define the Decision Situation- Figure out what is wrong and decide what you have
planned to fix it.
Develop Options- Build a list of options.
Analyze Options- Analyze the practically and appropriateness of each options.
Select the Best Option- Select the best choice for the business.
Implement the Decision- Options that you chose must be put into action.
Monitor the Consequences- Must see if the decision you made was good or bad. If the result was
good then it was right but if there is still a problem just go back to select best option step and pick
another way out.
10. What is the mathematical formula for perfect management? What do managers spend most of
their time doing?
There is no mathematical formula. Managers plan, organize, staff, direct, and control.