Business acumen: keenness and speed in understanding and deciding on a
Management: the art of getting things done through people
Henri Fayol – management had 5 main functions:
This has shortened to 4 Functions:
1. Planning: A formal process whereby managers choose goals, identify
actions to attain those goals, allocate responsibility for implementing
actions to specific individuals or units, measure the success of actions
by comparing actual results against the goals, and revise plans
2. Organizing: The process of deciding who within an organization will
perform what tasks, where decisions will be made, who reports to
whom, and how different parts of the organization will coordinate their
activities to pursue a common goal. In a business, organizing typically
involves dividing the enterprise into subunits based on functional tasks
—such as procurement, R&D, production, marketing, sales, customer
service, human resources, accounting, and finance—and deciding how
much decision-making authority to give each subunit.
3. Controlling: The process of monitoring performance against goals,
intervening when goals are not met, and taking corrective action.
Drafting plans is the first step in controlling an organization. Controlling
requires managers to compare performance against the plans to
monitor how successful an organization is at implementing a strategy.
Incentive: A factor, monetary or nonmonetary, that motivates
individuals to pursue a particular course of action.
4. Leading: The process of motivating, influencing, and directing others in
the organization to work productively in pursuit of organization goals.
Developing employees: The task of hiring, training, mentoring, and
rewarding employees in an organization, including other managers. Leading and developing employees are in many ways the core connection
among planning and strategizing, organizing, controlling, and creating
incentives. Skilled leaders
• Drive strategic thinking (strategizing) deep within the organization
while articulating their own vision for the organization.
• Have a plan for their organization and push others to develop plans.
• Structure the organization proactively to implement their chosen
• Exercise control with a deft hand, never seeming too overbearing or
demanding, while at the same time never taking their eyes off the
• Put the right kinds of incentives in place.
• Get the best out of people by persuading them that a task is worthy of
• Build a high-quality team of other managers and employees through
which they can work to get things done.
Strategy: An action that managers take to attain the goals of an
Strategizing: The process of thinking through on a continual basis what
strategies an organization should pursue to attain its goals.
Human capital: The knowledge, skills, and capabilities embedded in
General Managers: Managers responsible for the overall performance of an
organization or one of its major self-contained subunits or divisions.
Business-level general managers lead their divisions—motivating,
influencing, and directing their subordinates—and are responsible for
divisional performance. Corporate-level general managers translate the
overall strategic vision for the corporation into concrete strategies and plans
for their units.
Functional managers: Managers responsible for leading a particular function
or a subunit within a function. Below general managers we find functional
managers, who are responsible for specific business functions that constitute
a company or one of its divisions. Thus a functional manager’s sphere of
responsibility is generally confined to one organizational activity (purchasing,
marketing, production, or the like), whereas gen