Copyright © Cengage Learning. All rights reserved.6 | 1 Chapter Six Understanding the Management Process
Copyright © Cengage Learning. All rights reserved. 6 | 2 Learning Objectives 1.Define what management is. 2.Describe the four basic management functions: planning, organizing, leading and motivating, and controlling. 3.Distinguish among the various kinds of managers, in terms of both level and area of management. 4.Identify the key management skills and the managerial roles. 5.Explain the different types of leadership. 6.Discuss the steps in the managerial decision- making process.
Copyright © Cengage Learning. All rights reserved. 6 | 3 Learning Objectives (cont’d) 7.Describe how organizations benefit from total quality management. 8.Summarize what it takes to become a successful manager today.
Chapter 6 Outline –What Is Management? –Basic Management Functions Planning Organizing the Enterprise Leading and Motivating Controlling Ongoing Activities –Kinds of Managers Levels of Management Areas of Management Specialization –What Makes Effective Managers? Key Management Skills Managerial Roles
Chapter 6 Outline (cont.) –Leadership Formal and Informal Leadership Styles of Leadership Which Managerial Leadership Style Is Best? –Managerial Decision Making Identifying the Problem or Opportunity Generating Alternatives Selecting an Alternative Implementing and Evaluating the Solution –Managing Total Quality –What It Takes to Become a Successful Manager Today A Day in the Life of a Manager Skills Required for Success The Importance of Education and Experience
Copyright © Cengage Learning. All rights reserved.6 | 6 What Is Management? The process of coordinating people and other resources to achieve the goals of an organization –Material resources –Human resources –Financial resources –Information resources
Copyright © Cengage Learning. All rights reserved. 6 | 7 Planning –Goal –Objective –Properly set goals are Mission Strategic planning
Copyright © Cengage Learning. All rights reserved. 6 | 8 Planning (cont’d) Establishing plans to accomplish goals and objectives –Plan –Strategic plan –Tactical plan –Operational plan –Contingency plan
Copyright © Cengage Learning. All rights reserved. 6 | 9 Organizing the Enterprise Organizing Leading and motivating –Leading –Motivating –Directing
Copyright © Cengage Learning. All rights reserved. 6 | 10 Controlling Ongoing Activities Controlling Control function
Copyright © Cengage Learning. All rights reserved. 6 | 11 Kinds of Managers Levels of management The coordinated effort of all three levels of managers is required to implement the goals of any company
Copyright © Cengage Learning. All rights reserved. 6| 12 Areas of Management Specialization Financial managers Operations managers Marketing managers Human resources managers Administrative managers (general managers)
Copyright © Cengage Learning. All rights reserved. 6 | 13 Areas of Management Specialization Other areas may have to be added depending on the nature of the firm and the industry –Finance –Operations –Marketing –Human Resources –Administration –Other (e.g. research and development)
Copyright © Cengage Learning. All rights reserved. 6 | 14 What Makes Effective Managers? Key management skills –Technical skill –Conceptual skill –Interpersonal skill
Copyright © Cengage Learning. All rights reserved. 6 | 15 What Makes Effective Managers? (cont’d) Managerial roles –Decisional roles –Interpersonal roles –Informational roles
Copyright © Cengage Learning. All rights reserved. 6 | 16 Leadership The ability to influence others Leadership versus management Formal leadership Informal leadership
Copyright © Cengage Learning. All rights reserved. 6 | 17 Styles of Leadership Authoritarian Laissez-faire Democratic
Copyright © Cengage Learning. All rights reserved. 6 | 18 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
Copyright © Cengage Learning. All rights reserved. 6 | 19 Managerial Decision Making The act of choosing one alternative from among a set of alternatives Major steps in the managerial decision- making process
Copyright © Cengage Learning. All rights reserved. 6 | 20 Managerial Decision Making (cont’d) Identifying the problem or opportunity –Problem –Opportunity –Problem-solving impediments
Copyright © Cengage Learning. All rights reserved. 6 | 21 Managerial Decision-Making Process (cont’d) Generating alternatives –Brainstorming –“Blast! then refine” Selecting an alternative –Satisficing Implementing and evaluating the solution
Copyright © Cengage Learning. All rights reserved. 6 | 22 Managing Total Quality Total Quality Management (TQM) Issues crucial to TQM
Copyright © Cengage Learning. All rights reserved. 6 | 23 What It Takes to Become a Successful Manager Personal skills Education and experience