1. Understanding the Management Process
Chapter Seven
Understanding the Management Process

2. 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.
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3. Learning Objectives (cont’d)
Describe how organizations benefit from total quality management.
Summarize what it takes to become a successful manager today.
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4. 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
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5. The Four Main Resources of Management
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6. Basic Management Functions
The Management Process
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7. 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
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8. 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
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9. 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
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10. 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
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11. Controlling Ongoing Activities
Evaluating and regulating ongoing activities to ensure that goals are achieved
The Control Function
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12. 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
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13. 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
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14. Areas of Management Specialization
Other areas may have to be added depending on the nature of the firm and the industry
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15. 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
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16. 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
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17. 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
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18. 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.
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19. 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.

20. 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.

21. 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.