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Copyright
© Glencoe/McGraw
-
Hill

Slide
1

of 15

BUSINESS MANAGEMENT

Real
-
World Applications & Connections

GLENCOE

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
2

of 15

BUSINESS MANAGEMENT

Real
-
World Applications & Connections

GLENCOE

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
3

of 15

BUSINESS MANAGEMENT

Real
-
World Applications & Connections

GLENCOE

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
4

of 15

BUSINESS MANAGEMENT

Real
-
World Applications & Connections

GLENCOE

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






The Management Pyramid

Copyright
© Glencoe/McGraw
-
Hill

Slide
6

of 15

BUSINESS MANAGEMENT

Real
-
World Applications & Connections

GLENCOE

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
7

of 15

BUSINESS MANAGEMENT

Real
-
World Applications & Connections

GLENCOE

Section

1.1

The Importance of Business Management

Management Tasks


Planning


Organizing


Staffing


Leading


Controlling


Relative Amount of Emphasis Placed on Each Function of
Management

Copyright
© Glencoe/McGraw
-
Hill

Slide
9

of 15

BUSINESS MANAGEMENT

Real
-
World Applications & Connections

GLENCOE

Section

1.1

The Importance of Business Management

Management Roles


Interpersonal Roles



Information
-
Related Roles


Figurehead




Monitor


Relationship Builder



Communicator


Leader





Spokesperson



Decision
-
Making Roles


Entrepreneur


Negotiator



Disturbance Handler


Resource Director

Copyright
© Glencoe/McGraw
-
Hill

Slide
10

of 15

BUSINESS MANAGEMENT

Real
-
World Applications & Connections

GLENCOE

Section

1.1

The Importance of Business Management

Management Skills




Conceptual Skills



Human Relations Skills



Technical Skills

Copyright
© Glencoe/McGraw
-
Hill

Slide
11

of 15

BUSINESS MANAGEMENT

Real
-
World Applications & Connections

GLENCOE

Section

1.1

The Importance of Business Management


Mix of Skills Used at Different Levels of Management



Copyright
© Glencoe/McGraw
-
Hill

Slide
12

of 15

BUSINESS MANAGEMENT

Real
-
World Applications & Connections

GLENCOE

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
13

of 15

BUSINESS MANAGEMENT

Real
-
World Applications & Connections

GLENCOE

Section

1.1

The Importance of Business Management

Women and Minorities in Management


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
14

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BUSINESS MANAGEMENT

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World Applications & Connections

GLENCOE

Section

1.1

The Importance of Business Management

Fact and Idea Review



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

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BUSINESS MANAGEMENT

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World Applications & Connections

GLENCOE

Section

1.1

The Importance of Business Management

Fact and Idea Review cont.


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

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BUSINESS MANAGEMENT

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World Applications & Connections

GLENCOE

Section

1.1

The Importance of Business Management


Entrepreneurship

In this section:


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
17

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BUSINESS MANAGEMENT

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World Applications & Connections

GLENCOE

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
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BUSINESS MANAGEMENT

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World Applications & Connections

GLENCOE

Section

1.1

The Importance of Business Management

Why It’s Important


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

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BUSINESS MANAGEMENT

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World Applications & Connections

GLENCOE

Section

1.1

The Importance of Business Management



Key Terms



professional manager







entrepreneur



small business




Copyright
© Glencoe/McGraw
-
Hill

Slide
20

of 15

BUSINESS MANAGEMENT

Real
-
World Applications & Connections

GLENCOE

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
21

of 15

BUSINESS MANAGEMENT

Real
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World Applications & Connections

GLENCOE

Section

1.1

The Importance of Business Management

The Importance of Small Businesses


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
22

of 15

BUSINESS MANAGEMENT

Real
-
World Applications & Connections

GLENCOE

Section

1.1

The Importance of Business Management

The Importance of Small Business


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
23

of 15

BUSINESS MANAGEMENT

Real
-
World Applications & Connections

GLENCOE

Section

1.1

The Importance of Business Management

Fact and Idea Review

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.