GLENCOE

BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
In this section:
The many changes in the business world today are creating new
challenges for people who operate, or manage, those businesses. This
section discusses:
• The Business World Today
• What Is Management?
• Levels of Management
• The Management Process
• The Principles of Management
• Women and Minorities in Management
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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
What You’ll Learn
• What management is.
• The three levels of management.
• The management types.
• Three types of management skills.
• The principles of management.
• The role of women and minorities in management.

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
Why It’s Important
To understand how businesses make decisions, you will need to
understand how management works.

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
Key Terms
management human relations skills
senior management technical skills
middle management principle
supervisory management glass ceiling
role
conceptual skills

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
The Management Pyramid

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
The Management Process
What a manager does can be examined in three different ways.
• The tasks performed.
• The roles taken on.
• Type of skills required.

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
Management Tasks

• Planning
• Organizing
• Staffing
• Leading
• Controlling

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
Relative Amount of Emphasis Placed on Each Function of
Management

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
Management Roles
Interpersonal Roles Information-Related Roles
Figurehead Monitor
Relationship Builder Communicator
Leader Spokesperson

Decision-Making Roles
Entrepreneur Negotiator
Disturbance Handler
Resource Director

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
Management Skills

• Conceptual Skills
• Human Relations Skills
• Technical Skills

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
Mix of Skills Used at Different Levels of Management

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
Principles of Management
● A principle is a truth or law.
● Management principles are rules by which managers make decisions.
● Scientists proved scientific principles through controlled experiments.
● Most management principles are developed through observation and deduction.
● Management principles are more likely to change than specific principles.
● When management principles need to be changed, it is important for a manager to be able
to change and adapt.
● Arriving to work at the same time every day and wearing certain kinds of clothes to work
are examples of management principles that are changing.

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
Women and Minorities in Management
• Until the 1980’s and 90’s, managers of most large and medium-sized U.S. businesses were
almost exclusively white males.
• Women and minorities filled primarily service, support, and menial jobs.
• Management principles regarding women and minorities are changing, and they are now
serving in senior management such as CEO.
• Women and minorities often face a glass-ceiling – an invisible barrier that prevents them
from moving up in the world of business.
• Women and minorities who are promoted can also provide more opportunities to promote
women and minorities.

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
Fact and Idea Review

1. How have changes in modern business created challenges for managers?

2. Which management level is responsible for:

a. Establishing a business partnership?
b.Resolving disputes between employees?
c. Designing a plan to meet a company goal?
Cont.

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 GLENCOE
BUSINESS MANAGEMENT
Real-World Applications & Connections
Section 1.1
The Importance of Business Management
Fact and Idea Review cont.

3. Which role does a manager fill when resolving a dispute? Or when holding a
staff meeting?

4. List the three types of management skills and explain why each is important.

5. Can a management principle be proven just like a scientific principle?

Explain.

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