1. Management Roles, Functions, and Skills
Chapter 7

2. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Learning Objectives
Explain the importance of management and identify the three vital management roles
Describe the planning function and outline the strategic planning process
Describe the organizing function and differentiate among top, middle, and first-line management
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

3. Learning Objectives (cont.)
Describe the leading function, leadership style, and organizational culture
Describe the controlling function and explain the four steps in the control cycle
Identify and explain four important types of managerial skills
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

4. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Management
Management
The process of planning, organizing, leading, and controlling to meet organizational goals
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

5. The Roles of Management
Managerial Roles
Behavioral patterns and activities involved in carrying out the functions of management; includes interpersonal, informational, and decision making roles
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

6. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
The Planning Function
Planning
Establishing objectives and goals for an organization and determining the best ways to accomplish them
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

7. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
The Planning Function
Strategic plans
Plans that establish the actions and the resource allocation required to accomplish strategic goals
Usually defined for periods of two to five years and developed by top managers
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

8. Defining the Mission, Vision, and Values
Mission statement
A brief statement of why an organization exists; in other words, what the organization aims to accomplish for customers, investors, and other stakeholders
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

9. Defining the Mission, Vision, and Values
Vision statement
A brief and inspirational expression of what a company aspires to be
Values statement
A brief articulation of the principles that guide a company’s decisions and behaviors
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

10. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
SWOT Analysis
Strengths are positive internal factors that contribute to a company’s success
Weaknesses are negative internal factors that inhibit the company’s success
Opportunities are positive situations that represent the possibility of generating new revenue
Threats are negative forces that could inhibit a firm’s ability to achieve its objectives,
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

11. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Developing Forecasts
Quantitative Forecasts
typically based on historical data or tests and often involve complex statistical computations
Qualitative Forecasts
based on intuitive judgments
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

12. Establishing Goals and Objectives
A broad, long-range target or aim
Objective
A specific, short-range target or aim
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

13. Establishing Goals and Objectives
Specific
Measurable
Attainable
Relevant
Time limited
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

14. The Organizing Function
The process of arranging resources to carry out the organization’s plans
Management Pyramid
An organizational structure divided into top, middle, and first-line management
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

15. The Management Pyramid
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

16. The Management Pyramid
Top Managers
Those at the highest level of the organization’s management hierarchy
Responsible for setting strategic goals, and they have the most power and responsibility in the organization
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

17. The Management Pyramid (cont.)
Middle Managers
Those in the middle of the management hierarchy
they develop plans to implement the goals of top managers and coordinate the work of first-line managers
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

18. The Management Pyramid (cont.)
First-line Managers
Those at the lowest level of the management hierarchy
They supervise the operating employees and implement the plans set at the higher management levels
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

19. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
The Leading Function
Leading
The process of guiding and motivating people to work toward organizational goals
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

20. The Leading Function (cont.)
Cognitive Intelligence
involves reasoning, problem solving, memorization, and other rational skills
Emotional Intelligence
measure of a person’s awareness of and ability to manage his or her own emotions
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

21. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
The Leading Function
Social intelligence
involves looking outward to understand the dynamics of social situations and the emotions of other people, in addition to your own
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

22. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Leadership Styles
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

23. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Leadership Styles
Participative Management
A philosophy of allowing employees to take part in planning and decision making
Employee Empowerment
Granting decision-making and problem-solving authorities to employees so they can act without getting approval from management
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

24. Coaching and Mentoring
Helping employees reach their highest potential by meeting with them, discussing problems that hinder their ability to work effectively, and offering suggestions and encouragement to overcome these problems
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

25. Coaching and Mentoring
A process in which experienced managers guide less-experienced colleagues in the nuances of office politics, serving as a role model for appropriate business behavior, and helping to negotiate the corporate structure
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

26. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
Managing Change
Identify everything that needs to change
Identify the forces acting for and against a change
Choose the approach best suited to the situation
Reinforce changed behavior and monitor continued progress
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

27. Building a Positive Organizational Culture
A set of shared values and norms that support the management system and that guide management and employee behavior
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

28. Creating the Ideal Culture in Your Company
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

29. Creating the Ideal Culture in Your Company
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

30. The Controlling Function
The process of measuring progress against goals and objectives and correcting deviations if results are not as expected
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

31. Establishing Performance Standards
Criteria against which performance is measured
Benchmarking
Collecting and comparing process and performance data from other companies
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

32. Essential Management Skills
Interpersonal Skills
Skills required to understand other people and to interact effectively with them
Technical Skills
The ability and knowledge to perform the mechanics of a particular job
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

33. Essential Management Skills
Administrative Skills
Technical skills in information gathering, data analysis, planning, organizing, and other aspects of managerial work
Conceptual Skills
The ability to understand the relationship of parts to the whole
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

34. Essential Management Skills
Decision-Making Skills
The ability to identify a decision situation, analyze the problem, weigh the alternatives, choose an alternative, implement it, and to evaluate the results
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

35. Applying What You’ve Learned
Explain the importance of management and identify the three vital management roles
Describe the planning function and outline the strategic planning process
Describe the organizing function and differentiate among top, middle, and first-line management
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall

36. Applying What You’ve Learned (cont.)
Describe the leading function, leadership style, and organizational culture
Describe the controlling function and explain the four steps in the control cycle
Identify and explain four important types of managerial skills
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall