Management

What is management?
- Complex, there are various definitions
- Organizing people, planning, communicating tasks to employees
- Keeping people motivated is important
- Measuring performance, evaluating achievements
Functions of Business Management
- Deals with all operations of organizations
- Managing human, financial and physical resources
Management style
- Shows how managers behave, how they communicate, etc.
- It will differ
- Dictatorial: they prefer giving commands; not interested in others’ ideas, etc.
- Bureaucratic: lots of paperwork and emails, zero flexibility, exact order is important
- Consultative: maybe the most effective – BUT: manager should have the last word
- Delegating: sets the tasks but let employees perform them
- Laissez-faire: not effective and supporting, “let it be”
- Abdicatorial: avoids all kinds of responsibility
Management techniques
- Good communication → build loyalty, work for some goals
- Delegation of work and responsibility
Organigram
- The organizational structure of a company
- 3 types:
o Corporate pyramid:
 Everything is well-defined
 Less people at the top
o Networked organization
 Everyone is connected, share tasks and knowledge
o Mixture

Organizational structures
- Line:
o Clear line: the chain of command
o Small companies
- Functional:
o Each employee reports to one supervisor
o Groups / departments (marketing, sales, finance…)
o Hard to do projects
o Speed of communication is faster
 o Lack of flexibility
- Matrix
o The employees report to more than one supervisor
o More groups work together
o Easier to organize projects
- Staff
o Good for big companies
o Guidelines for employees
o E.g. assistants
o No decisions to make
o Specified functional help to the managers
- Sometimes it is necessary to restructure a company + reorganize it
o In the case of a problem, a merger, a takeover or an acquisition

The management structure of a typical company

- Board of Directors: CEO, CFO, CMO
- Senior managers
- Middle management
- Teams / groups
- Individuals
Board of Directors
- Appointed by the shareholders at the AGM
- Makes policy decisions
- There are chairs and board members in the Board
o Chair
o Vice-chair: works with the chair, substitutes the chair
o Committee chair
o Board secretary
o Board treasurer
o Board members keep informed about the business
o Planning + evaluating
o Attending meetings
o Secretary
o Treasurer: finances, annual budget (approved by the Board)
- Directions the company should take
- Making sure the company has enough funds
- Appoint key staff
- Decides on the organizational structure
AGM
- Shareholders get the overall picture of the company’s current situation + they appoint
members of the Board of Directors
Managing Director
 - Day-to-day running of the business
- Responsible for carrying out all the decisions
Senior management
- Regularly meets the Managing Director
- Responsible for their own department
Departments
- Production
- Finance and accounts
- Legal
- Marketing & PR
- Research & Development
- IT
- Human Resources
- Sales
- QAQC: Quality Assurance and Quality Control
- Purchasing
Middle Management
- Team leaders
- Allocate tasks between the team members
Mission Statement
- Küldetésnyilatkozat
- Every company should have one
- Present and future
- Founders determine its content
- Objectives, aim