Download Management Overview

6
Understanding the
Management
Process
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What Is Management?
Management is the process of coordinating
people and other resources to achieve the goals
of an organization
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distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Management Resources
 Material resources are the tangible, physical resources
an organization uses
 Human resources are the people
who staff an organization and use
the other resources to achieve
the goals of the organization
 Financial resources are the funds an organization uses
to meet its obligations to investors and creditors
 Information resources refers to the information about
the external business environment the firm uses to its
competitive advantage
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Today’s Managers
• Younger and more
progressive.
- Growing numbers of women.
- Fewer from elite universities.
• Emphasis is on teams and
team building.
• Managers need to be skilled
communicators and team
players.
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Basic Management Functions
How well managers perform these key
management process functions determines
whether a business is successful
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Four Functions of Management: An
Overview
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The Planning Function
The first step in creating a strategic plan is to establish a
corporate purpose
• Planning: Establishing organizational goals and deciding
how to go about accomplishing them
• Mission statement: A statement of the basic business
purpose that make an organization different from others;
Outlines the organization’s fundamental purposes. It
includes:
•
the organization’s self–concept
its philosophy
long–term survival needs
customer needs
social responsibility
nature of the product or service
Strategic planning: The process of establishing an
organization’s major goals and objectives and allocating the
resources to achieve them
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Planning: Strategic Planning Process
 Without knowing “what” you want to be, how can you properly
set your goals and objectives?
 Establishing goals and objectives
• Goal
 An end result that an organization is expected to achieve
over a one- to ten-year period
• Objective
 A specific statement detailing what an 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
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SWOT Analysis Components
 SWOT analysis is the identification and
evaluation of a firm’s:
•
•
•
•
Strengths
Weaknesses
Opportunities
Threats
 Core competencies
• Approaches and processes that a company
performs well and may give it an advantage over its
competitors
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distributed with a certain product or service or otherwise on a password-protected website for classroom use.
SWOT Analysis
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Types of Plans
Plan: An outline of the actions by
which an organization intends to
accomplish its goals and objectives
Types:
 Strategic plan: An
organization’s broadest plan, 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
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The Organizing Function
 Organizing
• The grouping of resources and activities to
accomplish some end result in an efficient and
effective manner
 Organizing an enterprise: Putting the pieces
of the puzzle together
 We’ll learn more about Organizing in Ch. 7
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The Leading and Motivating Function

Leading and motivating
•
•
•

Leading
 Influencing people to work toward a common
goal
Motivating
 Providing reasons for people to work in the best
interests of an organization
Directing
 The combined processes of leading and
motivating
Leaders must:
• Communicate a vision and rally others around that
vision.
• Establish corporate values.
• Promote corporate ethics.
• Embrace change.
• Stress accountability and responsibility
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Leadership
 Leadership is the ability to influence others
 Manager vs. Leader:
• A manager may have to depend on coercion
• A leader strives for voluntary cooperation
 Formal leadership
• Legitimate power of position is the basis for authority
 Informal leadership
• Not recognized formally by the organization
authority
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Styles of Leadership



Autocratic
• Task-oriented style; workers are told what
to do and how to do it, they have no say in
the decision making process
Participative (Democratic)
• All members of a team are involved in
identifying essential goals and developing
strategies to reach those goals
Entrepreneurial (Free-Rein)
• Personality-based, the manager seeks to
inspire workers with a vision of what can
be accomplished to benefit all
stakeholders…Managers set objectives
and employees are free to do whatever is
appropriate to accomplish those objectives
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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
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The Controlling Function
 Controlling is the process of evaluating and
regulating ongoing activities to ensure that
goals are achieved
 Requires constant monitoring and adjusting
 Control function
• Set standards
• Measure performance
• Take corrective action
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Kinds of Managers
 Levels of management
• Top manager—guides and
controls the overall fortunes
of an 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
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Areas of Management Specialization
Organizational structure can be divided into areas
of specialization
 Finance
 Operations
 Marketing
 Human Resources
 Administration
 Other (R&D)
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Areas of Management
Specialization Defined
 Financial managers
• Responsible for an 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 an organization and its customers or clients
 Human resources managers
• Manage an organization’s human resources programs
 Administrative managers (general managers)
• Not associated with any specific functional area; provide
overall administrative guidance and leadership
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Key Skills of Successful Managers
 Conceptual skills
• Ability to think in abstract terms
 Analytic skills
• Ability to identify problems,
generate alternative solutions,
and select the best solution
 Interpersonal skills
• Ability to deal effectively with
other people
 Technical skills
• Needed to accomplish a
specialized activity
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Managerial Decision Making
 Decision making is the act of choosing one
alternative from a set of alternatives
 Managers require a systematic method for
solving problems in a variety of situations
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Managerial Decision-Making Process:
Identifying the Problem of 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
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Managerial Decision-Making Process:
Generating and Selecting Alternatives
 Techniques
• Brainstorming
 Encouraging participants to come up with new ideas
• “Blast! Then refine.”
 Reevaluating objectives, modifying them if necessary,
and devising a new solution to a recurring problem
• Trial and error
 Selecting an alternative
• Satisfice
 Choosing an alternative that is not the best possible
solution, but one that adequately solves the problem
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Managerial Decision-Making Process:
Implementation and Evaluation
 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
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Managing Total Quality
 Total Quality Management (TQM) is the
coordination of efforts directed at:
• Improving customer satisfaction
• Increasing employee participation
• Strengthening supplier partnerships
• Facilitating an organizational atmosphere of
continuous quality improvement
 Benchmarking: Evaluating another organization
that is superior in order to improve quality
 Issues crucial to TQM:
• Top management commitment
• Coordination of efforts
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distributed with a certain product or service or otherwise on a password-protected website for classroom use.