3Learning Objectives Define what management is. Describe the four basic management functions: planning, organizing, leading and motivating, and controlling.Distinguish among the various kinds of managers in terms of both level and area of management.Identify the key management skills of successful managers.Explain the different types of leadership.Discuss the steps in the managerial decision-making process.Describe how organizations benefit from total quality management.
4The Four Main Resources of Management Managers coordinate an organization’s resources to achieve the goals of the organization.
5What 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 an organization and use the other resources to achieve the goals of the organizationFinancial resourcesThe funds an organization uses to meet its obligations to investors and creditorsInformation resourcesThe information about external business environmental conditions that a firm uses to its competitive advantage
7Planning 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
8Establishing goals and objectives Planning (cont.)Establishing goals and objectivesGoalAn end result that an organization is expected to achieve over a one- to ten-year periodObjectiveA specific statement detailing what an organization intends to accomplish over a shorter period of timeProperly set goals areSet at every level in the organizationConsistent with (supportive of) each otherOptimized (balanced) to reduce conflicts between goals
9Planning (cont.) SWOT analysis Core competencies The identification and evaluation of a firm’sStrengthsWeaknessesOpportunitiesThreatsCore competenciesApproaches and processes that a company performs well and may give it an advantage over its competitors
11Planning (cont.) Types of plans Plan Strategic plan Tactical plan An outline of the actions by which an organization intends to accomplish its goals and objectivesStrategic planAn organization’s broadest plan, a guide for major policy setting and decision makingTactical planA smaller-scale plan to implement a strategyOperational planA plan to implement a tactical planContingency planA plan of alternative courses of action if the organization’s other plans are disrupted or become ineffective
13Organizing 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 an organizationDirectingThe combined processes of leading and motivating
14The Control Function Controlling Control function Evaluating and regulating ongoing activities to ensure that goals are achievedControl function
15Kinds of Managers Levels of management Top manager—guides and controls the overall fortunes of an organizationMiddle manager—implements the strategy and major policies developed by top managementFirst-line manager—coordinates and supervises the activities of operating employeesThe coordinated effort of all three levels of managers is required to implement the goals of any company.
16Areas of Management Specialization Other areas may have to be added, depending on the nature of the firm and the industry.
17Areas of Management Specialization (cont.) Financial managersResponsible for an organization’s financial resourcesOperations managersManage the systems that convert resources into goods and servicesMarketing managersResponsible for facilitating the exchange of products between an organization and its customers or clientsHuman resources managersManage an organization’s human resources programsAdministrative managers (general managers)Not associated with any specific functional area; provide overall administrative guidance and leadership
19Key Skills of Successful Managers (cont.) Key management skillsConceptual skillsAbility to think in abstract termsAnalytic skillsAbility to identify problems, generate alternative solutions, and select the best solutionInterpersonal skillsAbility to deal effectively with other peopleTechnical skillsNeeded to accomplish a specialized activity
20Key Skills of Successful Managers (cont.) Key management skills (cont.)Communication skillsAbility to speak, listen, and write effectively
21The ability to influence others Leadership versus management Formal leadershipLegitimate power of position is the basis for authorityInformal leadershipNot recognized formally by the organization authority
22Styles of Leadership Autocratic Participative Entrepreneurial A task-oriented style. Workers are told what to do and how to do it, and they have no say in the decision-making process.ParticipativeAll members of a team are involved in identifying essential goals and developing strategies to reach those goals.EntrepreneurialA personality-based style. The manager seeks to inspire workers with a vision of what can be accomplished to benefit all stakeholders.
23Which Leadership Style Is Best? Matching style to the situationEffective leadership depends onInteraction among the employeesCharacteristics of the work situationThe manager’s personality
25Managerial Decision Making The act of choosing one alternative from among a set of alternativesMajor steps in the managerial decision-making process
26Managerial Decision Making (cont.) 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
27Managerial Decision Making (cont.) Generating alternativesBrainstormingEncouraging participants to come up with new ideas“Blast! then refine”Reevaluating objectives, modifying them if necessary, and devising a new solution to a recurring problemTrial and errorSelecting an alternativeSatisficingChoosing an alternative that is not the best possible solution, but one that adequately solves the problem
28Managerial Decision Making (cont.) 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
29Managing Total Quality Total Quality Management (TQM)The coordination of efforts directed atImproving customer satisfactionIncreasing employee participationStrengthening supplier partnershipsFacilitating an organizational atmosphere of continuous quality improvementBenchmarking—evaluating another organization that is superior in order to improve qualityIssues crucial to TQMTop management commitmentCoordination of efforts