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49) Identify the five basic functions of management, and describe each function.
Answer: The five basic functions of management are planning, organizing, motivating, staffing,
and controlling. Planning consists of all those managerial activities related to preparing for the
future, such as forecasting, establishing objectives, devising strategies, and developing policies.
Organizing includes all those managerial activities that result in a structure of task and authority
relationships, such as organizational design, job specialization, job descriptions, span of control,
coordination, job design, and job analysis. Motivating involves efforts directed toward shaping
human behavior. Specific topics include leadership, communication, work groups, behavior
modification, delegation of authority, job enrichment, job satisfaction, needs fulfillment,
organizational change, employee morale, and managerial morale. Staffing refers to human
resource (HR) activities, such as wage and salary administration, employee benefits,
interviewing, hiring, firing, training, management development, employee safety, equal
employment opportunity, and union relations. Controlling refers to all those managerial activities
directed toward ensuring that actual results are consistent with planned results. Key areas of
concern include quality control, financial control, sales control, inventory control, expense
control, analysis of variances, rewards, and sanctions.
Diff: 3
LO: 4.3: Identify the basic functions (activities) that make up management and their relevance in
formulating strategies.
AACSB: Written and oral communication
50) Describe the controlling function of management. Include the four basic steps that comprise
this function in your description.
Answer: The controlling function of management includes all of those activities undertaken to
ensure that actual operations conform to planned operations, and is particularly important for
effective strategy evaluation. Controlling consists of four basic steps: 1) establishing
performance standards; 2) measuring individual and organizational performance; 3) comparing
actual performance to planned performance standards; and 4) taking corrective actions.
Diff: 2
LO: 4.3: Identify the basic functions (activities) that make up management and their relevance in
formulating strategies.
AACSB: Written and oral communication
51) Pricing is one of the basic functions of
A) marketing.
B) finance/accounting.
C) management information systems.
D) production/operations.
E) research and development.
Answer: A
Diff: 2
LO: 4.4: Identify the basic functions of marketing and their relevance in formulating strategies.
AACSB: Written and oral communication