1.

) (1) Management’s four major functions are planning, organizing,

leading and controlling. Planning is the process of setting
realistic goals for a business both short-term and long-term.
Goals are occasionally social and always economic. Organizing
is arranging people and tasks to carry out the business’s
plans. Each department within a company has its own manager
who is responsible for organizing the department. Leading is
another important function of management in which managers
focus on employees achieving objectives and motivating
employees to accomplish their goals. Controlling is the method
managers use to increase, maintain, or decrease the
resources they are allocated.

2.) (3) Compensation can be a strong motivating factor. Some

employees work harder to receive a pay increase, promotion,
or a well-situated office. Others work hard because their
managers appreciate them, provide challenging work, and
trust them to do a good job.

3.) (4) Not only can employee participation result in better

decisions, it can also improve staff motivation. Many
employees enjoy the sense of purpose that comes from being
involved in making decisions.

4.) (6) The autocratic leader takes control of the situation. He or

she doesn’t allow employees to participate in decision making.
The laissez-faire leader leaves employees alone to do their
jobs and make their own decisions. The democratic leader
provides opportunities for employees to contribute to the
decision-making process. Employees provide input, information
and creativity to the department’s goals.

5.) (8) The democratic leadership would be effective most of the

time because it is a good mix of the autocratic and laissez-
faire styles, but as mentioned in the text, a good leader should
know when to use which type of leadership style. This is key to
running a successful business.