© Prentice Hall, 2004Business In Action 2eChapter 6 - 1 Understanding the Functions and Roles of Management.

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 1

Understanding the Understanding the Functions and Roles of Functions and Roles of

ManagementManagement

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 2

Managerial FunctionsManagerial Functions

• Planning

• Organizing

• Leading

• Controlling

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 3

The Roles of The Roles of ManagementManagement

• Interpersonal

• Informational

• Decisional

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 4

Function 1: Planning Function 1: Planning

• Develop strategies for success

• Set goals and objectives

• Develop action plans

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 5

Strategic PlanningStrategic Planning

Market standing

Innovation

Human resources

Financial

resources

Physical resources

Productivity

Social responsibility

Financial

performance

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 6

Six-Step Planning Six-Step Planning ProcessProcess

• Develop a clear vision

• Create a mission statement

• Develop forecasts

• Analyze the competition

• Set goals and objectives

• Develop action plans

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 7

Clarity of VisionClarity of Vision

• Development

• Communication

• Modification

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 8

The Mission StatementThe Mission Statement

• Purpose

• Goals

• Philosophies

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 9

Managerial ForecastsManagerial Forecasts

• Qualitative forecasting

• Quantitative forecasting

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 10

Competitive AnalysisCompetitive Analysis

• Differentiation strategy

• Cost leadership strategy

• Focus strategy

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 11

Company Goals and Company Goals and ObjectivesObjectives

• Goals– Broad, long-range

• Objectives– Specific, short-range

• Benefits– Boosts motivation– Sets standards– Guides activity– Clarifies expectations

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 12

Action PlansAction Plans

• Tactical plans

• Operational plans

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 13

Crisis ManagementCrisis Management

• Minimize damage

• Maintain operations

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 14

Function 2: OrganizingFunction 2: Organizing

• Employee activities

• Facilities and equipment

• Decision making

• Supervision

• Resource distribution

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 15

The Management The Management PyramidPyramid

• Top managers

• Middle managers

• First-line managers

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 16

Function 3: LeadingFunction 3: Leading

• Influencing people

• Motivating people

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 17

Leadership SkillsLeadership Skills

• Self-awareness

• Self-regulation

• Motivation

• Empathy

• Social skills

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 18

Leadership StylesLeadership Styles

• Autocratic

• Democratic

• Laissez-faire

• Contingency

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 19

Continuum of Leader Continuum of Leader BehaviorBehavior

• Manager makes decision

• Manager sells decision

• Manager presents ideas

• Manager makes tentative decision

• Manager presents problem

• Manager sets decision limits

• Employees make decision

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 20

Additional Leadership Additional Leadership FunctionsFunctions

• Coaching

• Mentoring

• Managing change

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 21

Corporate CultureCorporate Culture

• Company values

• People

• Communication

• Community involvement

• Employee performance

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 22

Function 4: ControllingFunction 4: Controlling

• Monitoring progress

• Resetting the course

• Correcting deviations

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 23

The Control CycleThe Control Cycle

• Set strategic goals1 . Set standards2 . Measure performance3 . Compare to standard4 . Inadequate take action–Correct performance–Reevaluate standards

4 . Adequate take no action

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 24

What Is Total Quality What Is Total Quality Management? Management?

• Employee involvement

• Customer focus

• Benchmarking

• Continuous improvement

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 25

Important Points of TQMImportant Points of TQM

• Create constancy of purpose for improvement

• Reject mistakes and negativism

• Cease dependence on mass inspection

• Do not award business on price alone

• Constantly improve production and service

• Institute training

• Institute leadership

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 26

Important Points of TQMImportant Points of TQM

• Drive out fear

• Break down barriers between units

• Eliminate slogans, exhortations, and targets

• Eliminate numerical quotas

• Remove barriers to pride in work

• Institute rigorous education and training

• Take action to accomplish the transformation

© Prentice Hall, 2004 Business In Action 2e Chapter 6 - 27

Management SkillsManagement Skills

• Interpersonal

• Technical

• Administrative

• Conceptual