1. Chapter Seven Understanding the Management Process

2. Copyright © Houghton Mifflin Company. All rights reserved.7 - 2 Leader vs. Manager Define Leader Leader – A person who has the ability to influence others. Makes the plan Composer Thermostat

3. Copyright © Houghton Mifflin Company. All rights reserved.7 - 3 Leader vs. Manager (Con’t) Define Manager Manager – A person who gets work done through others. Carries out the plan Conductor Thermometer

4. Copyright © Houghton Mifflin Company. All rights reserved.7 - 4 Think Describe a good leader you know. What are the qualities of this person? Describe a good manager you know. What are the qualities of this person?

5. Copyright © Houghton Mifflin Company. All rights reserved.7 - 5 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

6. Copyright © Houghton Mifflin Company. All rights reserved.7 - 6 Basic Management Functions The Management Process

7. Copyright © Houghton Mifflin Company. All rights reserved.7 - 7 Planning –Establishing organizational goals and deciding how to accomplish them –If you fail to plan – you plan to fail Mission –A statement of the basic purpose that makes an organization different from others –The Why Strategic planning –The process of establishing an organization’s major goals and objectives and allocating the resources to achieve them –The What and the How

8. Copyright © Houghton Mifflin Company. All rights reserved.7 - 8 The mission statement conveys the basic purpose of the organization What do you think is the mission statement of “Microsoft”?

9. Copyright © Houghton Mifflin Company. All rights reserved.7 - 9 “At Microsoft, we work to help people and businesses throughout the world realize their full potential.”

10. Copyright © Houghton Mifflin Company. All rights reserved.7 - 10 Organizing –The grouping of resources and activities to accomplish some end result in an efficient and effective manner

11. Copyright © Houghton Mifflin Company. All rights reserved.7 - 11 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

12. Copyright © Houghton Mifflin Company. All rights reserved.7 - 12 Controlling The process of regulating ongoing activities to ensure that goals are achieved. –Quality control –Performance evaluation

13. Copyright © Houghton Mifflin Company. All rights reserved.7 - 13 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

14. Copyright © Houghton Mifflin Company. All rights reserved.7 - 14 Areas of Management Financial 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

15. Copyright © Houghton Mifflin Company. All rights reserved.7 - 15 “So much of what we call management consists in making it difficult for people to work.” -Peter Drucker Founding father of the study of Management

16. Copyright © Houghton Mifflin Company. All rights reserved.7 - 16 Successful Leaders Go first Develop priorities Ask, “What needs to be done?” NOT “What do I do?” Are mission driven Ask, “What do I hope to achieve if I take this assignment?”

17. Copyright © Houghton Mifflin Company. All rights reserved.7 - 17 Successful Managers Prepare and Free people to perform

18. Copyright © Houghton Mifflin Company. All rights reserved.7 - 18 What is your skill assessment? Technical skill –A special skill needed to accomplish an activity Conceptual skill –The ability to think in abstract terms Interpersonal skill –The ability to deal effectively with other people Key Management Skills (p. 228) Personal Skills (p. 235) Oral Communication –Speaking an listening Written Communication –Writing Computer literacy –The ability to use the computer to generate reports Critical-thinking –Make decisions, identify problems, and generate solutions Rate yourself (p. 242)

19. Copyright © Houghton Mifflin Company. All rights reserved.7 - 19 What about you? What is your personality type? Where do you see yourself? Leader or manager? How would you adjust your behavior to motivate people you lead who have a different personality type than you own?