BUS 1050 Foundation of business

•

Planning

- process of determining an organization’s

objectives and deciding how to accomplish them.

•

Organizing

- structuring of resources and activities to

accomplish objectives in an effective and efficient manner.

•

Directing

- motivating and leading employees to achieve

organizational objectives.

•

Controlling

- process of evaluating and correcting

activities to keep organization on course (toward

accomplishing objectives).

•

Staffing

- hiring of people to carry out the work of the

organization.

Foundations of Business Thought

Functions of Management

The Executive Functions

I. The Maintenance of Organization Communication

A. The Scheme of Organization (

Organizing

)

B. Personnel (

Controlling

)

C. Informal Executive Organizations

II. The Securing of Essential Services from Individuals

A. Bringing of Persons into Cooperative Relationship

with the Organization

B. The Eliciting of Services After Such Persons Have Been

Brought Into That Relationship

III. The Formulation of Purpose and Objectives

A. Formulate and Define Purposes, Objectives, Ends of the

Organization (

Planning

)

B. The Delegation of Objective Authority (

Directing

)

Chester Barnard’s,

The Functions of the Executive

(1920 )

Foundations of Business Thought

“An industry, when all is said, is, in its essence, nothing

more mysterious than a body of men associated, in various

degrees of competition and co-operation, to win their living

by providing the community with some service which it

requires. Organize it as you will, let it be a group of

craftsmen laboring with hammer and chisel, or peasants

plowing their own fields, or armies of mechanics of a

hundred different trades constructing ships which are

miracles of complexity with machines which are the

climax of centuries of invention, its function is service, its

method is association. Because its function is service, an

industry as a whole has rights and duties towards the

community, the abrogation of which involves privilege.

Because its method is association, the different parties

within it have rights and duties towards each other; and the

neglect or perversion of these involves oppression.”

R.H. Tawney,

The Acquisitive Society

( )

Foundations of Business Thought

The ability to inspire others to exceptional performance.

The ability to influence others to direct their best

efforts toward organizational goals.

Managers

Do things right

Command & Control

Seek stability and

predictability

Focus internally

Leaders

Do the right things

Inspire & empower

Seek flexibility and

change

Focus externally

vs

Foundations of Business Thought

Leadership

Leaders should:

1. Have a

vision

2. Establish company

values

3. Emphasize company

ethics

4. Embrace

change

Foundations of Business Thought

Effective Leadership

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Under 5 years

5 years

6 to 11 years

12 to 14 years

15 years

16 and 17 years

18 to 24 years25 to 34 years35 to 44 years45 to 54 years55 to 64 years65 to 74 years

75 years and over

% Below Poverty

Male

Female

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

195019601970198019901997

Number of New Incorporations

Line

- direct line of authority; top to bottom

Functional

- authority delegated by function

Line & Staff

- like line but with specialized staff

managers to assist line managers

Multidivisional

- delegation of authority by

divisions (groups of departments)

Matrix

- teams from different departments

creating intersecting lines of authority

Foundations of Business Thought

Forms of Organizational Structure

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Executive-level

Mid-level

First-line level

Staffing

Organizing

Directing

Controlling

Planning

Problem Solving & Decision Making

•

Identify problems and potential solutions

•

Evaluate alternatives

•

Select optimal solutions

•

Delegate

Communication Skills

•

Listen

•

Clear and concise writing

•

Good computer skills

•

Effective speaker

Interpersonal Skills

•

Ethical behavior

•

Resolves conflict

•

Good leader

•

Shows empathy

Goal-setting Skills

•

Sets priorities & meaningful objectives

•

Evaluates success

•

Establishes reward systems

Foundations of Business Thought

Key Management Skills

P E O P L E

Foundations of Business Thought

Personalized

positive

reinforcement

Accept only

good

performance

Outline

objectives

Empathy

Interpersonal

relationships

2.

Just knowing I've

done something well

I don't need praise

from others.

5

4

3

2

1

3.

Being happy is more

important to me than

making money.

5

4

3

2

1

4.

I need a lot of time by

myself.

5

4

3

2

1

5.

My first priority is

high income and job

security.

5

4

3

2

1

6.

I don't believe people

should waste their

time pursuing

dreams.

5

4

3

2

1

7.

I feel disgusted if

someone else gets

credit for my

accomplishments.

5

4

3

2

1

8.

I'm more concerned

enjoy my work than

what I get paid for

doing it.

5

4

3

2

1

Question

Agree

Agree

Neither

Disagree

Disagree

1.

I value friendship

more than almost

anything else.

5

4

3

2

1

gives me satisfaction;

with whether or not I

Foundations of Business Thought

What Motivates You?