Presentation on theme: "Understanding the Management Process"— Presentation transcript:
1 Understanding the Management Process Chapter SixUnderstanding the Management Process
2 Learning Objectives Define management Describe the four basic management functions: planning, organizing, leading/motivating, and controllingDistinguish between various kinds of managers, with regard to level and area of managementIdentify key management skills and managerial rolesDiscuss different types of leadershipAnalyze the steps in the managerial decision-making process
3 Learning ObjectivesDescribe how organizations benefit from total quality managementSummarize the criteria for becoming a successful manager today
4 CEO Pay Compared to Average Worker Pay Source: Trends in CEO Pay, accessed 2/8/09.
5 What Is Management?The process of coordinating people and other resources to achieve the goals of an organizationMaterial resourcesThe tangible physical resources an organization usesHuman resourcesThe people who staff the organization and use the other resources to achieve the goals of the organizationFinancial resourcesThe funds the organization uses to meet its obligations to investors and creditorsInformation resourcesThe information about internal and external business environmental conditions that the firm uses to its competitive advantage
7 Basic Management Functions The Management Process
8 Planning Planning Mission Strategic planning Establishing organizational goals and deciding how to accomplish themMissionA statement of the basic purpose that makes an organization different from othersStrategic planningThe process of establishing an organization’s major goals and objectives and allocating the resources to achieve them
9 Planning Establishing goals and objectives Goals/Objectives An end result that the organization is expected to achieve over a period of timeLong-term versus short-termProperly set goals areSet at every level in the organizationConsistent (supportive) with each otherOptimized (balanced) to reduce conflicts between goals
10 Organizing the Enterprise The grouping of resources and activities to accomplish some end result in an efficient and effective mannerLeading and motivatingLeadingInfluencing people to work toward a common goalMotivatingProviding reasons for people to work in the best interests of the organizationDirectingThe combined processes of leading and motivating
11 Controlling Ongoing Activities Evaluating and regulating ongoing activities to ensure that goals are achievedControl function
12 Kinds of Managers Levels of management Top manager—guides and controls the overall fortunes of the organization; responsible for the performance of all departmentsMiddle manager—implements the strategy and major policies developed by top management; responsible for finding the best way(s) to organize human and other resources to achieve organizational goalsFirst-line manager—coordinates and supervises the activities of operating (nonmanagerial) employeesThe coordinated effort of all three levels of managers is required to implement the goals of any company
13 Areas of Management Specialization Financial managersResponsible for the organization’s financial resourcesOperations managersManage the systems that convert resources into goods and servicesMarketing managersResponsible for facilitating the exchange of products between the organization and its customers or clientsHuman resources managersManage the organization’s human resources programsAdministrative managers (general managers)Not associated with any specific functional area; provide overall administrative guidance and leadership
14 Areas of Management Specialization Other areas may have to be added depending on the nature of the firm and the industry
15 What Makes Effective Managers? Key management skillsTechnical skillA special skill needed to accomplish a specialized activityConceptual skillThe ability to think in abstract termsInterpersonal skillThe ability to deal effectively with other people
16 What Makes Effective Managers? Managerial rolesDecisional rolesInvolve various aspects of management decision makingEntrepreneur, disturbance handler, resource allocator, negotiatorInterpersonal rolesThe manager deals with peopleFigurehead, liaison, leaderInformational rolesA manager either gathers or provides informationMonitor, disseminator, spokesperson
17 Rules for Leaders Audit your company cultures Stay informed—informed people don’t fear changeBeware of “aspirational” accounting (e.g. Enron)Empower your people — turn them loosePrevent erosion of human assetsBe generous with what you knowSource: “25 Rules for Leaders, 2006,” Fast Company,
18 Class ExerciseFor each skill, provide an example of how a manager could use it in a real-world situation.Technical skillConceptual skillInterpersonal skill
19 Leadership The ability to influence others Formal leadership Legitimate power of position is the basis for authorityInformal leadershipNot recognized formally by the organization authority
20 Styles of Leadership Authoritarian Laissez-faire Democratic Holds all authority and responsibility, with communication usually moving from top to bottomLaissez-faireGives authority to employees and allows subordinates to work as they choose with a minimum of interference; communication flows horizontally among group membersDemocraticHolds final responsibility but also delegates authority to others, who help determine work assignments; communication is active upward and downward
21 Debate Issue: Should Managers Use the Authoritarian Leadership Style? YESSome employees need the close supervision that authoritarian leaders provide.When authoritarian leadership is used, communication moves from top (supervisor) to bottom (employees).An authoritarian leader assigns workers to specific tasks and expects precise results, so workers know exactly what is expected.NOWorkers resent the close supervision that results from the authoritarian leadership style.The democratic and laissez-faire leadership styles allow workers to communicate with the supervisor and other members of their group.Authoritarian leaders stifle the workers’ creativity and their ability to solve problems.
22 Which Leadership Style Is Best? Matching style to the situationEffective leadership depends onInteraction among the employeesCharacteristics of the work situationThe manager’s personality
23 CEOs’ Top ConcernsSource: Data from The Conference Board 2006; Challenge survey of 658 CEOs and chairmen.
24 Managerial Decision Making The act of choosing one alternative from among a set of alternativesMajor steps in the managerial decision-making process
25 Managerial Decision Making Identifying the problem or opportunityProblemThe discrepancy between an actual condition and a desired conditionOpportunityA “positive” problemProblem-solving impedimentsPreconceptions about the problemFocusing on unimportant matters while overlooking significant issuesAnalyzing symptoms rather than causesFailing to look ahead
26 Managerial Decision-Making Process Generating alternativesBrainstormingEncouraging participants to come up with new ideas“Blast! then refine”Reevaluating objectives, modifying them if necessary, and devising a new solutionSelecting an alternativeSatisficingChoosing an alternative that is not the best possible solution, but one that adequately solves the problem
27 Managerial Decision-Making Process Implementing and evaluating the solutionRequires time, planning, preparation of personnel, and evaluation of the resultsAn effective decision removes the difference between the actual condition and the desired conditionIf a problem still exists, managers mayDecide to give the chosen alternative more timeAdopt a different alternativeStart the process all over again
28 Managing Total Quality Total Quality Management (TQM)The coordination of efforts directed atImproving customer satisfactionIncreasing employee participationStrengthening supplier partnershipsFacilitating an organizational atmosphere of continuous quality improvementIssues crucial to TQMTop management commitmentCoordination of efforts
29 What It Takes to Become a Successful Manager Personal skillsOral communicationWritten communicationComputer skillsCritical thinkingEducation and experienceA solid academic backgroundPractical work experience
30 Chapter Quiz People in an organization are what type of resources? MaterialInformationalInventoryHumanFinancialIn executing their functions, managers must firstorganize activities.establish goals.motivate employees.evaluate activities.select employees.
31 Chapter QuizRoles such as entrepreneur, disturbance handler, and resource allocator are types of _______ roles.interpersonalinformationaldecisionalleadershipownershipOne type of leadership style islaissez-faire.CEO.entrepreneur.negotiator.bureaucratic.
32 Chapter QuizAll of the following are reasons for a greater focus on quality by U.S. firms exceptcompetition from foreign firms.customers that are more demanding.unpredictability on Wall Street.poorer financial performance.reduced market share.
33 Answers to Chapter Quiz People in an organization are what type of resources?MaterialInformationalInventoryHuman (Correct)FinancialIn executing their functions, managers must firstorganize activities.establish goals. (Correct)motivate employees.evaluate activities.select employees.
34 Answers to Chapter Quiz Roles such as entrepreneur, disturbance handler, and resource allocator are types of _____________roles.interpersonalinformationaldecisional (Correct)leadershipownershipOne type of leadership style islaissez-faire. (Correct)CEO.entrepreneur.negotiator.bureaucratic.
35 Answers to Chapter Quiz All of the following are reasons for a greater focus on quality by U.S. firms exceptcompetition from foreign firms.customers that are more demanding.unpredictability on Wall Street. (Correct)poorer financial performance.reduced market share.