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 1 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 2 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 3 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 4 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 6 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 7 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 9 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
Minorities in Management
Theand
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
Fact and
Idea Review Management
Importance
of Business
1.1
The
1. How have changes in modern business created challenges for managers?
2. 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
Review cont.Management
The Importance
ofIdea
Business
3. Which role does a manager fill when resolving a dispute? Or when
holding a staff meeting?
4. List the three types of management skills and explain why each is
important.
5. 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
Thesection:
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 do.
• 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 Applications & Connections
Why It’s Important
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
& Connections
The Importance
of Small
Businesses
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-WorldFact
Applications
Connections
and Idea &
Review
Section
1.1
The Importance of Business Management
1.
List three personal characteristics shared by many entrepreneurs.
2.
Being an entrepreneur is easier than being a professional
manager—true or false? Explain.
3.
Describe two things companies can do to encourage their
managers to think more like entrepreneurs.
4.
Name two important roles small business play in the economy.
Copyright © Glencoe/McGraw-Hill
Slide 23 of 15