What do you think of when you hear the word management? Learning Objectives LO 1.1-1 Define the term management. LO 1.1-2 Summarize the functions of management. LO 1.1-3 Identify three levels of management. Key Terms management organization resource efficiency effectiveness productivity delegate authority micromanagement planning plan organizing staffing leading controlling senior management middle management supervisory management Section 1.1 Management Responsibilities LO 1.1-1 LO 1.1-1 Management Overview Management is a term that is used frequently in the workplace and has different meanings to different people. For some people, it might mean someone with authority who tells others what to do, whereas others look at management as a person who coaches employees to be successful. Management is the process of controlling and making decisions about an organization, as well as overseeing others to ensure activities are performed efficiently and effectively. Management is the way work is accomplished in an organization through the efforts of other people. An organization is a body of people that come together for a specific purpose. Your school, Netflix, and Old Navy are examples of organizations. They each have a group of people who have come together in a structured manner to accomplish a purpose. Resources To be effective, an organization must have a management team that understands how to allocate resources in a way that enables its goals to be met. A resource is a supply of money, labor, materials, and other items that a person or organization can draw from in order to meet needs. Organizational resources include capital resources, raw materials, human resources, monetary resources, and informational technology, as illustrated in Figure 1-1. • Capital resources are tangible items needed to operate an organization. They include items such as equipment, computers, and buildings. • Raw materials are natural or man-made materials that become part of a manufactured product. Raw materials include wood, minerals, metal, plastic, and other substances. • Human resources are the employees of an organization. Many organizations view employees as their most valuable resource. It is people who have knowledge and ideas needed to perform tasks and expand operations. Copyright Goodheart-Willcox Co., Inc. 6