10. Management of Business Organizations (Additional topic)

Management plays an important role in any business. Management is composed of a team of managers who are responsible for organization at all levels. Their duties are: to make sure that company objectives are met and to see that the business operates efficiently. Most managers perform four basic functions:

1) planning;

2) organizing;

3) directing;

4) controlling.

Planning is the first management function because the others depend on it. Planning is determining all company objectives and deciding how these goals can be achieved.

Organizing, the second management function, is the process of putting the plan into action. This involves allocating resources, especially human resources. In this phase managers decide what positions to create and determine duties of employees. Staffing or choosing the right person for the right job, is also a part of the organizing function.

Direction and day-to-day supervision of employees is the third management function. In directing, managers guide, teach, and motivate workers so that they reach their potential abilities and achieve the established company goals. Effective direction or supervision requires constant communication with employees.

Controlling, the last management function, means that managers evaluate how well company objectives are met. In order to complete this evaluation, managers must look at the objectives established in the planning phase and at how well the tasks are completed. If managers have problems and organization goals are not achieved, then they make changes in organizational or managerial structure of the company. Making changes, managers go back and replan, reorganize, and redirect.

In order to perform these management functions efficiently, managers need interpersonal, organizational, and technical skills. Although all four functions are managerial duties, the importance of each may vary, depending on the situation. Effective managers meet the objectives of the company through a successful combination of planning, organizing, directing, and controlling.

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Answer the questions.

1. Does management play an important role in any business?

2. What is management?

3. What are the main duties of managers?

4. What are the four basic functions most managers perform?

5. What is planning?

6. What does organizing involve?

7. Describe the third management function.

9. What do managers do if organization goals are not achieved?

10. What do managers need to have to perform their functions efficiently?