Chapter Seven – Management and Leadership PART THREE: MANAGEMENT

Chapter Learning Objectives Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-2  Management: What It Is, How You Do It  Planning: You Set Goals and Decide How to Achieve Them  Organizing: You Arrange Tasks, People and Other Resources to Get Things Done  Leading: You Motivate People to Work to Achieve Important Goals  Controlling: You Monitor Performance, Compare It with Goals, and Take Corrective Action

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-3  Need for Management  Effectiveness – realizing goals  Efficiency – means of realizing goals  Four Things Managers Must Do  Planning  Organizing  Leading  Controlling Management: The 4 Essential Functions

4 Functions of Management Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-4 Planning: You need to set goals and decide how to achieve them Organizing: You need to arrange tasks, people, and other resources to accomplish the work Leading: You need to motivate people to work hard to achieve the organization’s goals Controlling: You need to monitor performance, compare it with goals, and take corrective action as needed.....so as to accomplish the firm’s goals. You need to do these tasks to achieve the organization’s goals effectively and efficiently

The Levels of Management Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-5

Decision Making Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-6 Phase 1 Identify the problem or opportunity Phase 2 Dream up possible solutions Phase 3 Weigh alternative solutions and select one Phase 4 Implement the solution, then evaluate it

Planning: Goals and Achievement  Four benefits of planning  Dealing with uncertainty  Thinking ahead  Coordinating activities  Evaluate progress  Basis for Planning: Vision and Mission  Vision – what you want to become  Mission – fundamental purposes Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-7

Three Types of Planning Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-8 TypeWho does it?Time Frame StrategicTop Managers1-5 years TacticalMiddle Managers6-24 months OperationalSupervisory Managers1-52 weeks

SWOT Analysis Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-9

Organizing: The Org Chart Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-10

Management Skills 1. Technical Skills: The ability to perform a specific job 2. Human Skills: The ability to interact well with people 3. Conceptual Skills: The ability to think analytically Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-11

 Leader vs. Manager  Dealing with Change vs. Complexity  Leadership Styles  Autocratic  Participative (Democratic) Leadership  Free-rein Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-12 Leading: Motivation towards Goals

Transaction vs. Transformational Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-13  Transactional Leaders  Transformational Leaders  Inspire motivation by promoting a grand design  Inspire trust by expressing their integrity  Encourage employee development  Communicate a strong sense of purpose

Controlling Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-14  Why is controlling needed?  To deal with changes and uncertainties  To become aware of opportunities  To detect errors and irregularities  To increase productivity, eliminate waste, reduce costs or to add value  To deal with complexity  To decentralize decision making and facilitate teamwork

Control Process Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-15 Establish StandardsMonitor Performance Compare performance against standards Take corrective action, if needed

Learning Objectives Summary  Management: What It is, How You Do it  Planning: You Set Goals and Decide How to Achieve Them  Organizing: You Arrange Tasks, People & Other Resources to Get Things Done  Leading: You Motivate People to Work to Achieve Important Goals  Controlling: You Monitor Performance, Compare it with Goals & Take Corrective Action. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-16

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7-17