1. ©2007 Prentice Hall 12-1 Management Functions and Skills Chapter 12

2. Chapter 12 Objectives After studying this chapter, you will be able to: Define the four basic management functions Outline the strategic planning process Explain the purpose of a mission statement Discuss the benefits of SWOT analysis Explain the importance of setting long-term goals and objectives ©2007 Prentice Hall 12-2

3. Chapter 12 Objectives, cont. Cite three common leadership styles and explain why no one style is best Identify and explain four important types of managerial skills Summarize the six steps involved in the decision-making process ©2007 Prentice Hall 12-3

4. Managerial Functions ©2007 Prentice Hall 12-4 Planning Controlling Organizing Leading

5. Managerial Roles ©2007 Prentice Hall 12-5 Interpersonal Informational Decisional

6. Planning ©2007 Prentice Hall 12-6 Develop Strategies For Success Develop Strategies For Success Set Goals and Objectives Set Goals and Objectives Develop Action Plans Develop Action Plans

7. Strategic Plans ©2007 Prentice Hall 12-7 Market Standing Innovation Human Resources Financial Resources Physical Resources Productivity Social Responsibility Financial Performance

8. Strategic Planning Process ©2007 Prentice Hall 12-8 5. Goals and Objectives 4. Competitive Analysis 1. Clarity of Vision 3. Forecasting 2. Mission Statement 6. Action Plans

9. Develop a Clear Vision ©2007 Prentice Hall 12-9 Development Execution Modification Communication

10. Vision to Mission Statement ©2007 Prentice Hall 12-10 ObjectivesGoalsPhilosophies Product or Service Primary Market Survival, Growth, Profitability Managerial Philosophy Level of Quality Social Responsibility

11. SWOT ©2007 Prentice Hall 12-11 StrengthsWeaknesses OpportunitiesThreats

12. Forecasts ©2007 Prentice Hall 12-12 QualitativeForecastingQualitativeForecastingQuantitativeForecastingQuantitativeForecasting StatisticalComputationsStatisticalComputationsIntuitiveJudgmentsIntuitiveJudgmentsConsumerResearchConsumerResearchHistoricalDataHistoricalData

13. Competitive Analysis ©2007 Prentice Hall 12-13 Differentiation Cost Leadership Focus

14. Company Goals / Objectives ©2007 Prentice Hall 12-14 Sets Standards Boosts Motivation Guides Activity Clarifies Expectations Broad, Long-Range Target or Aim Broad, Long-Range Target or Aim Goals ObjectivesObjectives Specific, Short-Range Target or Aim Specific, Short-Range Target or Aim

15. Action Plans ©2007 Prentice Hall 12-15 Tactical Operational

16. Crisis Planning ©2007 Prentice Hall 12-16 Contingency Plans Open Communication Corporate Power Struggles Environmental Accidents Operational Breakdowns Product Failures

17. Organizing ©2007 Prentice Hall 12-17 Employee Activities Facilities and Equipment Decision Making Supervision Resource Distribution

18. The Management Pyramid ©2007 Prentice Hall 12-18 First-line Managers Middle Managers TopManagers

19. Leading ©2007 Prentice Hall 12-19 Influencing Motivating Obtaining Corporate Goals Obtaining Corporate Goals

20. Are You a Leader? Can you listen? Can you communicate? Can you lead by example? Are you dedicated to the organization’s success above your own? Do you know what makes other people tick? Do you manage yourself well? ©2007 Prentice Hall 12-20

21. Are You a Leader? Are you willing to accept responsibility? Can you face reality? Can you solve problems but stay focused on opportunities? Are you willing to trust your employees? ©2007 Prentice Hall 12-21

22. ©2007 Prentice Hall 12-22 Leadership Skills Emotional Quotient (EQ) Self-Awareness Self-Regulation Motivation Empathy Social Skills

23. Leadership Styles ©2007 Prentice Hall 12-23 Autocratic Contingency Democratic Laissez-faire

24. Types of Leaders ©2007 Prentice Hall 12-24 TransactionalTransformational Meeting Established Goals Clarifying Organizational Roles Securing Correct Resources Inspiring Employees Finding Creative Solutions Promoting Success

25. Leadership Functions ©2007 Prentice Hall 12-25 CoachingMentoring Meeting with employees Meeting with employees Discussing problems Discussing problems Offering suggestions Offering suggestions Encouraging solutions Encouraging solutions Guiding employees Guiding employees Explaining office politics Explaining office politics Serving as role models Serving as role models Providing valuable advice Providing valuable advice

26. Managing Change ©2007 Prentice Hall 12-26 Present Situation Process of Change New Situation Identify What Needs to Change Identify Forces For and Against Change Select the Best Approach Reinforce and Monitor Behavior

27. Organizational Culture ©2007 Prentice Hall 12-27 EmployeeInteractionsEmployeeInteractionsCommunicationPatternsCommunicationPatternsBusinessConductBusinessConduct Attitudes About Work Attitudes AppropriateAttireAppropriateAttire

28. The Controlling Function ©2007 Prentice Hall 12-28 Monitoring Progress Resetting The Course Correcting Deviations

29. The Control Cycle ©2007 Prentice Hall 12-29 Set Strategic Goals Goals 4. Adequate No Action 4. Adequate No Action 3. Compare To Standard 3. Compare To Standard 4. Inadequate Take Action 4. Inadequate Take Action 1. Set Standards Standards 2. Measure Performance Performance ReevaluateStandardsReevaluateStandardsCorrectPerformanceCorrectPerformance

30. TQM ©2007 Prentice Hall 12-30 Employee Involvement Benchmarking Customer Focus Continuous Improvement

31. ©2007 Prentice Hall 12-31 ManagementSkills The Five Basics Interpersonal Technical Administrative Conceptual Decision-Making