chapter 6 understanding the management process. copyright © cengage learning. all rights reserved....

Chapter 6

Understanding theManagement Process

Copyright © Cengage Learning. All rights reserved. Chapter 6 | Slide 2

Learning Objectives

1. Define what management is.

2. Describe the four basic management functions: planning, organizing, leading and motivating, and controlling.

3. Distinguish among the various kinds of managers in terms of both level and area of management.

4. Identify the key management skills and the managerial roles.

5. Explain the different types of leadership.

6. Discuss the steps in the managerial decision-making process.

7. Describe how organizations benefit from total quality management.

8. Summarize what it takes to become a successful manager today.


Management

…the process of coordinating peopleand other resources to achieve the

goals of an organization.


Figure 6.1: The Four MainResources of Management


Organizational Resources

Material ─ tangible physical resources

Human ─ people, most important asset

Financial ─ funds organization uses to meetobligations to investors and creditors

Informational ─ knowledge about changes in the industry


Figure 6.2: The Management Process


Planning

…establishing organizational goalsand deciding how to accomplish them.


Planning

MissionA statement of the basic purpose that makes an organization different from others.

Strategic planningThe process of establishing an organization’s major goals and objectives and allocating the resources to achieve them.


EstablishingGoals and Objectives

GoalAn end result an organization is expected to achieve over a one- to ten-year period. Set at every level of company Must be consistent among levels Optimization = balancing process

Objective A specific statement detailing what the organization intends to accomplish over a shorter period of time.


Plan

…an outline of the actions by whichan organization intends to accomplish

its goals and objectives.


Figure 6.3: Types of Plans


Strategic Plan

…an organization’s broadest plan, developed as a guide for major policy

setting and decision making.


Tactical Plan

…a smaller-scale plan developedto implement a strategy.


Operational Plan

…a type of plan designed to implement

tactical plans.


Contingency Plan

…a plan that outlines alternativecourses of action that may be takenif an organization’s other plans are

disrupted or become ineffective.


Organizing

…the grouping of resources andactivities to accomplish some end result

in an efficient and effective manner.


Leading and Motivating

Leading ─ influencing people to work toward a common goal

Motivating ─ providing reasons for people to work in best interests of an organization; people’s motivations vary

Leading + Motivating = DirectingLeading + Motivating = Directing


Controlling

…the process of evaluating andregulating ongoing activities to ensure

that goals are achieved.


Figure 6.4: The Control Function


Managers’ Classifications

Level in organization

Area of management


Levels of Management

Top ManagerGuides/controls overall fortunes of an organization

Middle ManagerImplements the strategy and major policies developed by top management

First-Line ManagerSupervises the activities of operating employees


Figure 6.5: Management LevelsFound in Most Companies


Figure 6.6: Areas ofManagement Specialization

SpotlightHow Much Do Executives in Selected Business Areas Earn Yearly?

Source: www.execunet.com, accessed November 25, 2008.


Manager Specialists

Financial ManagerResponsible for financial resources

Operations ManagerManages systems that convert resources into goods/services

Marketing ManagerFacilitates exchange of products between organization and its customers/clients

Human Resources ManagerManages employee programs and employment practices

Administrative ManagerNot associated with any specific function; provides overall administrative guidance/leadership


Effective Managers

Possess certain important skills

Are able to use those skills in a number of managerial roles


Key Management Skills

Technicalability to accomplish a specialized activity

Conceptual ability to think in abstract terms

Interpersonalability to deal effectively with people inside and outside organization


Role

…a set of expectations that one must fulfill.


Managerial Roles

Decisional ─ involves aspects of decision making

Interpersonal ─ deals with people

Informational ─ gathers or provides information


Decisional Roles

Entrepreneur ─ voluntary initiator of change

Disturbance Handler ─ resolves emotional differences

Resource Allocator ─ decides how resources should be distributed in the organization

Negotiator ─ brings resolution to conflicting points of view


Figurehead

Liaison

Leader

Interpersonal Roles


Monitor

Disseminator

Spokesperson

Informational Roles


Leadership

…the ability to influence others.

Formal Informal


Styles of Leadership

Authoritarian

Laissez-faire

Democratic


The ‘best’ leadership seems to occur when the leader’s style

matches the situation.

Best Leadership Style?


Rules for Leaders

1. Audit your company cultures.

2. Informed people don’t fear change.

3. Beware “Aspirational Accounting.”

4. Empower your people─turn them loose.

5. Prevent erosion of human assets.

6. Be generous with what you know.

7. Expand your roster.

8. Don’t judge a man by the size of his wallet.

9. Harness your skills for good.

10.Groom your people for success.

Fast Company, “25 Rules for Leaders,” http://www.fastcompany.com/articles/2002/05/rtsd_quotes.html.

Janet Young

These are taken verbatim from the source. Permission needed?


Figure 6.7: Major Steps in Decision Making

…the act of choosing one alternativefrom a set of alternatives.


Problem

…the discrepancy between an actual condition and a desired condition.


Rules of Decision Making

Know what decision should accomplish Allow time to make decision “Sleep on” critical/complex decisions Ask the right questions Seek other opinions Understand the risks Be aware of resources Obtain new information


Generating Alternatives

1. Brainstorm

2. “Blast! Then Refine.”

3. Trial and Error


“Satisfice”

…describes a solution that is only adequate and not ideal.


Implementation Requires

Time

Planning

Preparation of personnel

Evaluation of results


Total Quality Management

…the coordination of efforts directed at improving customer satisfaction, increasing employee

participation, strengthening supplier partnerships, and facilitating an organizational atmosphere of

continuous quality improvement.


Components of TQM

Customer Satisfaction

Employee Participation

Strengthening Supplier Partnerships

Continuous Quality Improvement


Critical IssuesThat Affect TQM Success

Top management must give it top priority and frequent attention

Management must coordinate specific elements of TQM to work in harmony with each other


Financial Benefits of TQM

Lower operating costs

Higher return on sales/investments

Ability to use premium pricing


Successful Manager Today

Long work hours

Time spent getting information from individuals

Personal skills

• Oral communication• Written communication• Computer• Critical thinking


Highest Paid CEOs, 2008

Source: Forbes.com, “CEO Compensation,” http://www.forbes.com/lists/2008/12/lead_bestbosses08_CEO-Compensation_Rank.html.


1. People in an organization are what type of resources?

a) Materialb) Informationalc) Inventoryd) Humane) Financial

Chapter Quiz


2. In executing their functions, managers must first

a) organize activities.b) establish goals.c) motivate employees.d) evaluate activities.e) select employees.

Chapter Quiz (cont.)


3. Roles such as entrepreneur, disturbance handler, and resource allocator are types of _____________roles.

a) interpersonalb) informationalc) decisionald) leadershipe) ownership



4. One type of leadership style is

a) laissez-faire.b) CEO.c) entrepreneur.d) negotiator.e) bureaucratic.



5. All of the following are reasons for a greater focus on quality by U.S. firms except

a) competition from foreign firms.b) customers that are more demanding.c) unpredictability on Wall Street.d) poorer financial performance.e) reduced market share.


chapter 6 understanding the management process. copyright © cengage learning. all rights reserved....

Documents

learning objectivesdefine

area of management

organization different

organizations major

basic management functions

key management skills

total quality management

contingency plana plan