1. Understanding the Management Process
Chapter Seven
Understanding the Management Process

2. What Is Management?
The process of coordinating people and other resources to achieve the goals of an organization
Material resources
The tangible physical resources an organization uses
Human resources
The people who staff the organization and use the other resources to achieve the goals of the organization
Financial resources
The funds the organization uses to meet its obligations to investors and creditors
Information resources
The information about internal and external business environmental conditions that the firm uses to its competitive advantage

3. Basic Management Functions
The Management Process

4. Planning Planning Mission Strategic planning
Establishing organizational goals and deciding how to accomplish them
Mission
A statement of the basic purpose that makes an organization different from others
Strategic planning
The process of establishing an organization’s major goals and objectives and allocating the resources to achieve them

5. Planning (cont’d) Establishing goals and objectives Goal Objective
An end result that the organization is expected to achieve over a one-to-ten year period
Objective
A specific statement detailing what the organization intends to accomplish over a shorter period of time
Properly set goals are
Set at every level in the organization
Consistent (supportive) with each other
Optimized (balanced) to reduce conflicts between goals

6. Planning (cont’d)
Establishing plans to accomplish goals and objectives
An outline of the actions by which the organization intends to accomplish its goals and objectives
Strategy
An organization’s broadest set of plans, a guide for major policy setting and decision making
Tactical plan
A smaller-scale plan to implement a strategy
Operational plan
A plan to implement a tactical plan
Contingency plan
A plan of alternative courses of action if the organization’s other plans are disrupted or become ineffective

7. Organizing the Enterprise
The grouping of resources and activities 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 the best interests of the organization
Directing
The combined processes of leading and motivating

8. Controlling Ongoing Activities
Evaluating and regulating ongoing activities to ensure that goals are achieved
The Control Function

9. Kinds of Managers Levels of Management
Top manager—guides and controls the overall fortunes of the organization
Middle manager—implements the strategy and major policies developed by top management
First-line manager—coordinates and supervises the activities of operating employees
The coordinated effort of all three levels of managers is required to implement the goals of any company

10. Areas of Management Financial Managers Operations Managers
Responsible for the organization’s financial resources
Operations Managers
Manage the systems that convert resources into goods and services
Marketing Managers
Responsible for facilitating the exchange of products between the organization and its customers or clients
Human Resources Managers
Manage the organization’s human resources programs
Administrative Managers (General Managers)
Not associated with any specific functional area; provide overall administrative guidance and leadership

11. What Makes Effective Managers?
Key Management Skills
Technical skill
A special skill needed to accomplish a specialized activity
Conceptual skill
The ability to think in abstract terms
Interpersonal skill
The ability to deal effectively with other people

12. What Makes Effective Managers? (cont’d)
Managerial Roles
Decisional roles
Involve various aspects of management decision making
Entrepreneur, disturbance handler, resource allocator, negotiator
Interpersonal roles
The manager deals with people
Figurehead, liaison, leader
Informational roles
A manager either gathers or provides information
Monitor, disseminator, spokesperson

13. The ability to influence others Leadership vs. management
Formal leadership
Legitimate power of position is the basis for authority
Informal leadership
Not recognized formally by the organization

14. Styles of Leadership Authoritarian Laissez-faire Democratic
Holds all authority and responsibility, with communication usually moving from top to bottom
Laissez-faire
Gives authority to employees and allows subordinates to work as they choose with a minimum of of interference; communication flows horizontally among group members
Democratic
Holds final responsibility but also delegates authority to others, who help determine work assignments; communication is active upward and downward

15. Which Leadership Style Is Best?
Matching style to the situation
Effective leadership depends on
Interaction among the employees
Characteristics of the work situation
The manager’s personality

16. Managerial Decision Making
The act of choosing one alternative from among a set of alternatives
Major steps in the managerial decision-making process

17. The Managerial Decision-Making Process
Identifying the problem or opportunity
Problem
The discrepancy between an actual condition and a desired condition
Opportunity
A “positive” problem
Problem-solving impediments
Preconceptions about the problem
Focusing on unimportant matters while overlooking significant issues
Analyzing symptoms rather than causes
Failing to look ahead

18. Managerial Decision-Making Process (cont’d)
Generating alternatives
Brainstorming
Encouraging participants to come up with new ideas
“Blast! Then Refine”
Reevaluating objectives, modifying them if necessary, and devising a new solution
Selecting an alternative
Satisficing
Choosing an alternative that is not the best possible solution, but one that adequately solves the problem

19. Managerial Decision-Making Process (cont’d)
Implementing and evaluating the solution
Requires time, planning, preparation of personnel, and evaluation of the results
An effective decision removes the difference between the actual condition and the desired condition
If a problem still exists, managers may
Decide to give the chosen alternative more time
Adopt a different alternative
Start the process all over again

20. What It Takes to Become a Successful Manager
Personal Skills
Oral communication
Written communication
Computer
Critical thinking
Education and Experience
A solid academic background
Practical work experience