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Introduction to Business
Chapter 6: Management and Leadership in Today’s Organizations
6.1 The Role of Management
Management is the process of guiding the development, maintenance, and allocation of
resources to attain organizational goals. Managers are the people in the organization
responsible for developing and carrying out this management process. The four primary
functions of managers are planning, organizing, leading, and controlling. By using the four
functions, managers work to increase the efficiency and effectiveness of their employees,
processes, projects, and organizations as a whole.
Planning
Set objectives and state mission
Examine alternatives
Determine needed resources
Create strategies to reach objectives
Leading
Lead and motivate employees to accomplish organizational goals
Communicate with employees
Resolve conflicts
Manage change
Organizing
Design jobs and specify tasks
Create organizational structure
Staff positions
Coordinate work activities
Set policies and procedures
Allocate resources
Controlling
Measure performance
Compare performance to standards
Take necessary action to improve performance
6.1 Review Questions
1. What do managers guide in order to attain organizational goals?
2. Is management considered dynamic or static?
3. Who are managers?
For more free, peer-reviewed, openly licensed resources visit OpenStax.org.
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4. Describe the managerial process.
a. How many functions are there?
b. Are the functions interdependent or do they operate independently?
5. Define the following terms:
a. Efficiency
b. Effectiveness
6. Define effectiveness What is the relationship between the four managerial functions
and efficiency and effectiveness?
7. Why do managers need to be both efficient and effective?
6.2 Planning
Planning is deciding what needs to be done, identifying when and how it will be done, and
determining who should do it. Managers use four different types of planning: strategic, tactical,
operational, and contingency planning. Strategic planning involves creating long-range (one to
five years), broad goals and determining the necessary resources to accomplish those goals.
Tactical planning has a shorter time frame (less than one year) and more specific objectives that
support the broader strategic goals. Operational planning creates specific standards, methods,
policies, and procedures that are used in specific functional areas of the organization.
Contingency plans identify alternative courses of action for very unusual or crisis situations.
For more free, peer-reviewed, openly licensed resources visit OpenStax.org.
Introduction to Business
Chapter 6: Management and Leadership in Today’s Organizations
6.1 The Role of Management
Management is the process of guiding the development, maintenance, and allocation of
resources to attain organizational goals. Managers are the people in the organization
responsible for developing and carrying out this management process. The four primary
functions of managers are planning, organizing, leading, and controlling. By using the four
functions, managers work to increase the efficiency and effectiveness of their employees,
processes, projects, and organizations as a whole.
Planning
Set objectives and state mission
Examine alternatives
Determine needed resources
Create strategies to reach objectives
Leading
Lead and motivate employees to accomplish organizational goals
Communicate with employees
Resolve conflicts
Manage change
Organizing
Design jobs and specify tasks
Create organizational structure
Staff positions
Coordinate work activities
Set policies and procedures
Allocate resources
Controlling
Measure performance
Compare performance to standards
Take necessary action to improve performance
6.1 Review Questions
1. What do managers guide in order to attain organizational goals?
2. Is management considered dynamic or static?
3. Who are managers?
For more free, peer-reviewed, openly licensed resources visit OpenStax.org.
, 2
4. Describe the managerial process.
a. How many functions are there?
b. Are the functions interdependent or do they operate independently?
5. Define the following terms:
a. Efficiency
b. Effectiveness
6. Define effectiveness What is the relationship between the four managerial functions
and efficiency and effectiveness?
7. Why do managers need to be both efficient and effective?
6.2 Planning
Planning is deciding what needs to be done, identifying when and how it will be done, and
determining who should do it. Managers use four different types of planning: strategic, tactical,
operational, and contingency planning. Strategic planning involves creating long-range (one to
five years), broad goals and determining the necessary resources to accomplish those goals.
Tactical planning has a shorter time frame (less than one year) and more specific objectives that
support the broader strategic goals. Operational planning creates specific standards, methods,
policies, and procedures that are used in specific functional areas of the organization.
Contingency plans identify alternative courses of action for very unusual or crisis situations.
For more free, peer-reviewed, openly licensed resources visit OpenStax.org.
