Understanding the Management Process Chapter Seven Understanding the Management Process

Learning Objectives Define what management is. Describe the four basic management functions: planning, organizing, leading and motivating, and controlling. Distinguish among the various kinds of managers, in terms of both level and area of management. Identify the key management skills and the managerial roles. Explain the different types of leadership. Discuss the steps in the managerial decision-making process. Copyright © Houghton Mifflin Company. All rights reserved.

Learning Objectives (cont’d) Describe how organizations benefit from total quality management. Summarize what it takes to become a successful manager today. Copyright © Houghton Mifflin Company. All rights reserved.

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 Copyright © Houghton Mifflin Company. All rights reserved.

The Four Main Resources of Management Copyright © Houghton Mifflin Company. All rights reserved.

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

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

Planning (cont’d) Establishing goals and objectives Goal Objective An end result that the organization is expected to achieve over a one-to-ten year period Objective A specific statement detailing what the 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 Copyright © Houghton Mifflin Company. All rights reserved.

Planning (cont’d) Establishing plans to accomplish goals and objectives Plan An outline of the actions by which the organization intends to accomplish its goals and objectives Strategy An organization’s broadest set of plans, 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 Copyright © Houghton Mifflin Company. All rights reserved.

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

Controlling Ongoing Activities Evaluating and regulating ongoing activities to ensure that goals are achieved The Control Function Copyright © Houghton Mifflin Company. All rights reserved.

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 Copyright © Houghton Mifflin Company. All rights reserved.

Areas of Management Financial Managers Operations 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 Copyright © Houghton Mifflin Company. All rights reserved.

Areas of Management Specialization Other areas may have to be added depending on the nature of the firm and the industry Copyright © Houghton Mifflin Company. All rights reserved.

Class Exercise For each skill provide an example of how a manager could use it in a real-world situation. Technical skill Conceptual skill Interpersonal skill Copyright © Houghton Mifflin Company. All rights reserved.

Chapter Quiz An organization’s most important resource is its __________ resources. material human financial information technical __________ is the “first” management function because all other management functions depend on it. Leading Organizing Controlling Planning Motivating Copyright © Houghton Mifflin Company. All rights reserved.

Chapter Quiz The roles managers must fulfill may be classified into three categories: decisional, interpersonal, and financial. conceptual. analytical. technical. informational. The manager of a McDonald’s restaurant is an example of a(n) __________ manager. top operations middle first-line administrative Copyright © Houghton Mifflin Company. All rights reserved.

Chapter Quiz (cont’d) What is a disadvantage associate with the democratic style of leadership? It does not give employees the opportunity to express their views. The decision making process is time-consuming. Employees are usually unmotivated to carry out decisions. The communication is always from top to bottom. There is very limited structure involved. Copyright © Houghton Mifflin Company. All rights reserved.

Answers to Chapter Quiz An organization’s most important resource is its __________ resources. material human financial information technical __________ is the “first” management function because all other management functions depend on it. Leading Organizing Controlling Planning Motivating Copyright © Houghton Mifflin Company. All rights reserved.

Answers to Chapter Quiz The roles managers must fulfill may be classified into three categories: decisional, interpersonal, and financial. conceptual. analytical. technical. informational. The manager of a McDonald’s restaurant is an example of a(n) __________ manager. top operations middle first-line administrative Copyright © Houghton Mifflin Company. All rights reserved.

Chapter Quiz (cont’d) What is a disadvantage associate with the democratic style of leadership? It does not give employees the opportunity to express their views. The decision making process is time-consuming. Employees are usually unmotivated to carry out decisions. The communication is always from top to bottom. There is very limited structure involved. Copyright © Houghton Mifflin Company. All rights reserved.