Business Essentials, 12/e

Summary of Learning Objectives

Objective 5-1

1. Describe the nature of management and identify the four basic functions that constitute the management process.

Management is the process of planning, organizing, leading, and controlling a firm’s resources to achieve its goals. Planning is determining what the organization needs to do and how best to get it done. The process of arranging resources and activities into a coherent structure is called organizing. When leading, a manager guides and motivates employees to meet the firm’s objectives. Controlling is the process of monitoring performance to make sure that a firm is meeting its goals.

Effective management is a blend of both science and art. Many management problems and issues can be approached ...