1. Foundations of Business 3e
Pride, Hughes, & Kapoor

2. Understanding the Management Process
Chapter 6

3. 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 of successful managers.
Explain the different types of leadership.
Discuss the steps in the managerial decision-making process.
Describe how organizations benefit from total quality management.

4. Question
What resources are each of you using to accomplish the educational goals you have set for yourself and the educational goals set by your family?

5. The Four Main Resources of Management
Managers coordinate an organization’s resources to achieve the goals of the organization.

6. 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 an organization and use the other resources to achieve the goals of the organization
Financial resources
The funds an organization uses to meet its obligations to investors and creditors
Information resources
The information about external business environmental conditions that a firm uses to its competitive advantage

7. Basic Management Functions

8. Management Function 1 Planning
Planning Purpose
To establish organizational goals and deciding how to accomplish them
Mission Statement
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. These are long term and abstract

9. Name the mission statement
“Our mission is to organize the world's information and make it universally accessible and useful.”
GOOGLE
“Our company strives to be a worldwide leader in automotive and automotive-related products and services as well as in newer industries such as aerospace, communications and financial services. Our mission is to improve continually our products and services to meet our customers’ needs, allowing us to prosper as a business and to provide a reasonable return for our stockholders, the owners of our business.”
FORD MOTOR COMPANY

10. Name the mission statement
“Our mission is to be our customers' favorite place and way to eat.” McDonald’s “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” Starbucks This group of companies strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. Adidas

11. Establishing using goals and objectives
Planning (cont.)
Establishing using 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 with (supportive of) each other
Optimized (balanced) to reduce conflicts between goals

12. Goals vs. Objectives
Evaluate the following statements. Are these statements goals or objectives.
1. I plan to be a success in business. (goal)
2. I plan to graduate in four years with a 3.5 or better GPA (objective).
3. I plan to become a world-class tennis player and win Wimbledon next year (unrealistic objective).

13. Planning (cont.) SWOT analysis Core competencies
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

14. Elements and Examples of SWOT Analysis

15. Four types of plans formulated by managers A plan is…
Planning (cont.)
Four types of plans formulated by managers
A plan is…
An outline of the actions by which an organization intends to accomplish its goals and objectives
Strategic plan
An organization’s broadest plan, a guide for major policy setting and decision making (let’s be the best)
Tactical plan
A smaller-scale plan to start implementing long term strategies (lets get the best coach, and build new stadium)
Operational plan
A day to day plan to implement the tactical plan (daily practice)
Contingency plan
A plan of alternative courses of action if the organization’s other plans are disrupted or become ineffective (plan B)

16. Contingency Plan Exercise
What do we do if? Week long power failure at York College in January.

17. Types of Plans

18. Management Function 2 : Organizing the Enterprise
The grouping of resources and activities to accomplish some end result in an efficient and effective manner
Developing the Chain of Command
Job Descriptions
Organizational Charts
Covered in detail in chapter 7

19. Management Function 3 Leading and Motivating
Leading (inspiring)
Influencing people to work toward a common goal
Motivating (positive and negative)
Providing reasons for people to work in the best interests of an organization
Directing
The combined processes of leading and motivating
elated

20. Management Function 4 The Control Function
Controlling
Evaluating and regulating ongoing activities to ensure that goals are achieved
Control function
“Quality Control”

21. Let look at: 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.

22. Areas of Management Specialization
Other areas may have to be added, depending on the nature of the firm and the industry.

23. Areas of Management Specialization (cont.)
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

24. Question: Who was your favorite coach?
Was the team successful? How?
Did everyone like the coach? Why
What leadership qualities did they possess?

25. Key Skills of Successful Managers

26. Key Skills of Successful Managers (cont.)
Key management skills
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
Communication skills
Ability to speak, listen, and write effectively

27. How valuable is good management? Highest-Paid CEOs, 2010
Rank
Name
Company
Pay ($mil) 1
H. Lawrence Culp, Jr.
Danaher
141.36 2
Lawrence J. Ellison
Oracle
130.23 3
Aubrey K. McClendon
Chesapeake Energy
114.29 4
Ray R. Irani
Occidental Petroleum
103.07 5
David C. Novak
Yum Brands
76.49 6
John C. Martin
Gilead Sciences
60.40 7
Sol J. Barer
Celgene
59.31 8
Keith A. Hutton
XTO Energy
54.78 9
Richard C. Adkerson
Freeport Copper
48.75 10
Jen-Hsun Huang
Nvidia
31.40

28. What is Leadership? Leadership is the ability to influence others
How is leadership and management different? Shepherds verses Cowboys
Formal leadership
Legitimate power of position is the basis for authority
Informal leadership
Not recognized formally by the organization authority

29. Types or Styles of Leadership
Autocratic Leadership
A task-oriented style. Workers are told what to do and how to do it, and they have no say in the decision-making process.
Participative Leadership
All members of a team are involved in identifying essential goals and developing strategies to reach those goals.
Entrepreneurial Leadership
A personality-based style. The manager seeks to inspire workers with a vision of what can be accomplished to benefit all stakeholders.

30. Debate Issue: Should Managers Use the Autocratic Leadership Style?
Yes
Some employees need the close supervision that autocratic leaders provide.
When autocratic leadership is used, communication moves from top (supervisor) to bottom (employees).
An autocratic leader assigns workers to specific tasks and expects precise results, so workers know exactly what is expected. No
Workers resent the constraints that result from the autocratic leadership style.
The participative leadership style allows workers to communicate with the supervisor and other members of their group.
Autocratic leaders stifle the workers’ creativity and their ability to solve problems.

31. 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

32. Tips for Successful Leadership

33. Managerial Decision Making Process
The act of choosing one alternative from among a set of alternatives
Major steps in the managerial decision-making process

34. Managerial Decision Making (cont.)
Identifying the problem or 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

35. Managerial Decision Making (cont.)
Generating alternatives
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
Satisficing
Choosing an alternative that is not the best possible solution, but one that adequately solves the problem

36. Managerial Decision Making (cont.)
Implementing and evaluating the solution
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

37. Chapter Quiz People in an organization are what type of resource?
Material
Informational
Inventory
Human
Financial

38. Chapter Quiz In executing their functions, managers must first
organize activities.
establish goals.
motivate employees.
evaluate activities.
select employees.

39. Chapter Quiz
Roles such as entrepreneur, disturbance handler, and resource allocator are types of _______ roles.
interpersonal
informational
decisional
leadership
ownership

40. Chapter Quiz One type of leadership style is laissez-faire. CEO.
entrepreneur.
negotiator.
bureaucratic.

41. Chapter Quiz
All of the following are reasons for a greater focus on quality by U.S. firms except
competition from foreign firms.
customers that are more demanding.
unpredictability on Wall Street.
poorer financial performance.
reduced market share.