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A definition:(1)
Management is creative problem solving. This creative problem solving is accomplished
through four functions of management: planning, organizing, leading and controlling. The
intended result is the use of an organizations resources in a way that accomplishes its
mission and objectives. (Figure 1.1, From Higgins, page 7)
In Management Excel, this standard definition is modified to align more closely with our
teaching objectives and to communicate more clearly the content of the organizing
function. Organizing is divided into organizing and staffing so that the importance of
staffing in small businesses receives emphasis along side organizing. In the management
literature, directing and leading are used interchangeably. (Note figure of Management
Excel wheel)
Planning is the ongoing process of developing the business mission and objectives and
determining how they will be accomplished. Planning includes both the broadest view of
the organization, e.g., its mission, and the narrowest, e.g., a tactic for accomplishing a
specific goal.
Organizing is establishing the internal organizational structure of the organization. The
focus is on division, coordination, and control of tasks and the flow of information within
the organization. It is in this function that managers distribute authority to job holders.
Staffing is filling and keeping filled with qualified people all positions in the business.
Recruiting, hiring, training, evaluating and compensating are the specific activities
included in the function. In the family business, staffing includes all paid and unpaid
positions held by family members including the owner/operators.
Directing is influencing peoples behavior through motivation, communication, group
