Chapter Six Understanding the Management Process reserved. 6 1 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 decisionmaking process. reserved. 6 2
Learning Objectives (cont d) 7. Describe how organizations benefit from total t quality management. 8. Summarize what it takes to become a successful manager today. reserved. 6 3 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 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 reserved. 6 6
Planning Planning Goal Objective Properly set goals are Mission Strategic planning reserved. 6 7 Planning (cont d) Establishing plans to accomplish goals and objectives Plan Strategic plan Tactical plan Operational plan Contingency plan reserved. 6 8
Organizing Organizing the Enterprise Leading and motivating Leading Motivating Directing reserved. 6 9 Controlling Ongoing Activities Controlling Control function reserved. 6 10
Levels of management Kinds of Managers The coordinated effort of all three levels of managers is required to implement the goals of any company reserved. 6 11 Areas of Management Specialization Financial managers Operations managers Marketing managers Human resources managers Administrative managers (general managers) reserved. 6 12
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) reserved. 6 13 What Makes Effective Managers? Key management skills Technical skill Conceptual skill Interpersonal skill reserved. 6 14
What Makes Effective Managers? (cont d) Managerial roles Decisional roles Interpersonal roles Informational roles reserved. 6 15 Leadership The ability to influence others Leadership versus management Formal leadership Informal leadership reserved. 6 16
Authoritarian Styles of Leadership Laissez faire Democratic reserved. 6 17 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 reserved. 6 18
Managerial Decision Making The act of choosing one alternative from among a set of alternatives Major steps in the managerial decisionmaking process reserved. 6 19 Managerial Decision Making (cont d) Identifying the problem or opportunity Problem Opportunity Problem solving impediments reserved. 6 20
Managerial Decision Making Process (cont d) Generating alternatives Brainstorming i Blast! then refine Selecting an alternative Satisficing Implementing and evaluating the solution reserved. 6 21 Managing Total Quality Total Quality Management (TQM) Issues crucial to TQM reserved. 6 22
What It Takes to Become a Successful Manager Personal skills Education and experience reserved. 6 23
Figure 6.1 The Four Main Resources of Management 68 The Four Main Resources of Management MANAGEMENT Material resources Human resources Financial resources Informational resources Organizational goals 3768X_06_ch06_p068-083.indd 68 3/6/09 6:51:36 PM
Figure 6.2 The Management Process 69 The Management Process Planning Organizing Leading and motivating Controlling Review and modify 3768X_06_ch06_p068-083.indd 69 3/6/09 6:51:36 PM
Figure 6.3 Types of Plans 70 Types of Plans STRATEGIC PLANS Broad guide for major policy setting Designed to achieve long-term goals Set by board of directors and top management TACTICAL PLANS Smaller-scale plan to implement strategic plan May be updated periodically Easier to change than strategic plans Types of Plans OPERATIONAL PLANS Designed to implement tactical plans Plan is one year or less Deals with how to accomplish specific objectives CONTINGENCY PLANS Outline of alternative courses of action if other plans are disrupted or noneffective Used in conjunction with strategic, tactical, and operational plans 3768X_06_ch06_p068-083.indd 70 3/6/09 6:51:37 PM
Figure 6.4 The Control Function 71 The Control Function 1 Setting standards 2 Measuring actual performance 3 Taking corrective action 3768X_06_ch06_p068-083.indd 71 3/6/09 6:51:37 PM
Figure 6.5 Management Levels Found in Most Companies 72 Management Levels Found in Most Companies Top management Middle management First-line management 3768X_06_ch06_p068-083.indd 72 3/6/09 6:51:38 PM
Figure 6.6 Areas of Management Specialization 73 Areas of Management Specialization Finance Operations Marketing Human resources Administration Other (e.g., research and development) 3768X_06_ch06_p068-083.indd 73 3/6/09 6:51:38 PM
Figure 6.7 Major Steps in the Managerial Decision-Making Process 74 Major Steps in the Managerial Decision-Making Process Identifying the problem or opportunity Generating alternatives Selecting an alternative Implementing and evaluating the solution 3768X_06_ch06_p068-083.indd 74 3/6/09 6:51:39 PM
Figure 6.A Chapter Outline 75 Chapter 6 Outline Understanding the Management Process 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 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 3768X_06_ch06_p068-083.indd 75 3/6/09 6:51:39 PM
Figure 6.B Class Exercise 76 Class Exercise The skills that typify effective managers tend to fall into three general categories: technical, conceptual, and interpersonal. For each skill listed below, define the skill and provide an example of how a manager could use it in a real-world situation. Skill Definition How It Could Be Used 1. Technical skill 2. Conceptual skill 3. Interpersonal skill 3768X_06_ch06_p068-083.indd 76 3/6/09 6:51:39 PM
Figure 6.C Debate Issue 77 Debate Issue Should managers use the authoritarian leadership style? YES Some employees need the close supervision that authoritarian leaders provide. When authoritarian leadership is used, communication moves from top (supervisor) to bottom (employees). An authoritarian leader assigns workers to specific tasks and expects precise results, so workers know exactly what is expected. NO Workers resent the close supervision that results from the authoritarian leadership style. The democratic and laissez-faire leadership styles allow workers to communicate with the supervisor and other members of their group. Authoritarian leaders stifle the workers creativity and their ability to solve problems. 3768X_06_ch06_p068-083.indd 77 3/6/09 6:51:39 PM
Figure 6.D Chapter Quiz 78 Chapter Quiz 1. People in an organization are what type of resources? a. Material b. Informational c. Inventory d. Human e. Financial 2. In executing their functions, managers must first a. organize activities. b. establish goals. c. motivate employees. d. evaluate activities. e. select employees. 3. Roles such as entrepreneur, disturbance handler, and resource allocator are types of roles. a. interpersonal b. informational c. decisional d. leadership e. ownership 4. One type of leadership style is a. laissez-faire. b. CEO. c. entrepreneur. d. negotiator. e. bureaucratic. 5. All of the following are reasons for a greater focus on quality by U.S. firms except a. competition from foreign firms. b. customers that are more demanding. c. unpredictability on Wall Street. d. poorer financial performance. e. reduced market share. 3768X_06_ch06_p068-083.indd 78 3/6/09 6:51:39 PM
Figure 6.E Management Levels Found in Most Companies 79 Management Levels Found in Most Companies 3768X_06_ch06_p068-083.indd 79 3/6/09 6:51:39 PM
Figure 6.F Areas of Management Specialization 80 Areas of Management Specialization 3768X_06_ch06_p068-083.indd 80 3/6/09 6:51:46 PM
Figure 6.G Definition of Management 81 MANAGEMENT The process of coordinating people and other resources to achieve the goals of the organization 3768X_06_ch06_p068-083.indd 81 3/6/09 6:51:53 PM
Figure 6.H Key Management Skills 82 Key Management Skills TECHNICAL SKILL A specific skill needed to accomplish a specialized activity CONCEPTUAL SKILL The ability to think in abstract terms and see the big picture INTERPERSONAL SKILL The ability to deal effectively with other people, both inside and outside the organization 3768X_06_ch06_p068-083.indd 82 3/6/09 6:51:53 PM
Figure 6.I What Are CEOs Greatest Concerns? 83 CEOs Top Concerns Source: Data from The Conference Board 2006 CEO Challenge survey of 658 CEOs and chairmen. 3768X_06_ch06_p068-083.indd 83 3/6/09 6:51:53 PM