BA 101 Introduction to Business 7. The Functions of Management.

BA 101 Introduction to Business

7. The Functions of Management

Managerial Functions

PlanningPlanning

ControllingControlling

OrganizingOrganizing

Leading Leading

Roles of Management

InformationalInformationalInformationalInformational

InterpersonalInterpersonalInterpersonalInterpersonal

DecisionalDecisionalDecisionalDecisional

The Planning Function

Develop Strategies for Success

Set Goalsand Objectives

Develop Action Plans

22Write Mission Write Mission

StatementStatement

33PerformPerform

SWOT AnalysisSWOT Analysis

77DevelopDevelop

Action PlansAction Plans

66Set GoalsSet Goals

And ObjectivesAnd Objectives

11DevelopDevelopA VisionA Vision

44DevelopDevelop

ForecastsForecasts

55AnalyzeAnalyze

CompetitionCompetition

Strategic Planning Process

Clarity of Vision

DevelopmentDevelopment

ExecutionExecution

ModificationModification

CommunicationCommunication

Mission Statement

Objectives Goals Philosophies

Productor Service

PrimaryMarket

Survival, Growth,Profitability

ManagerialPhilosophy

Level ofQuality

SocialResponsibility

WeaknessesWeaknessesStrengthsStrengths

OpportunitiesOpportunities ThreatsThreats

SWOTSWOTAnalysisAnalysis

Managerial Forecasts

QualitativeQualitativeForecastingForecastingQualitativeQualitativeForecastingForecasting

QuantitativeQuantitativeForecastingForecastingQuantitativeQuantitativeForecastingForecasting

StatisticalStatisticalComputationsComputations

StatisticalStatisticalComputationsComputations

IntuitiveIntuitiveJudgmentsJudgments

IntuitiveIntuitiveJudgmentsJudgments

ConsumerConsumerResearchResearchConsumerConsumerResearchResearch

HistoricalHistoricalDataData

HistoricalHistoricalDataData

Competitive Analysis

Differentiation Differentiation

Cost Leadership Cost Leadership

FocusFocus

Company Goals andObjectivesCompany Goals andObjectives

Sets StandardsSets Standards

Boosts MotivationBoosts Motivation

Gui

des

Act

ivity

Gui

des

Act

ivity

Clarifies ExpectationsClarifies Expectations

Broad, Long-Range Broad, Long-Range Target or AimTarget or Aim

Broad, Long-Range Broad, Long-Range Target or AimTarget or Aim

GoalsGoals ObjectivesObjectivesObjectivesObjectives

Specific, Short-Range Specific, Short-Range Target or AimTarget or Aim

Specific, Short-Range Specific, Short-Range Target or AimTarget or Aim

Tactical Plans

Operational Plans

One-Three Years

Less Than a Year

MiddleManagers

First-Line Managers

Ma

na

ge

men

tTim

e F

ram

e

Crisis Management

MaintainMaintainOperationsOperationsMaintainMaintain

OperationsOperationsMinimizeMinimizeDamageDamageMinimizeMinimizeDamageDamage

OpenOpenCommunicationCommunication

OpenOpenCommunicationCommunication

Contingency Contingency PlansPlans

Contingency Contingency PlansPlans

The Organizing Function

Employee ActivitiesEmployee Activities

Facilities and EquipmentFacilities and Equipment

Decision MakingDecision Making

SupervisionSupervision

Resource DistributionResource Distribution

The Management Pyramid

First-lineFirst-lineManagersManagers

MiddleMiddleManagersManagers

TopTopManagersManagers

The Management Pyramid

First-lineFirst-lineManagersManagers

MiddleMiddleManagersManagers

TopTopManagersManagers

President, CEO, VP •Make long-range plans•Establish policies•Represent the company

The Management Pyramid

First-lineFirst-lineManagersManagers

MiddleMiddleManagersManagers

TopTopManagersManagers

•Implement goals•Make decisions•Direct first-line managers

Controller, MarketingManager, Sales Manager

The Management Pyramid

First-lineFirst-lineManagersManagers

MiddleMiddleManagersManagers

TopTopManagersManagers

•Implement plans•Oversee workers•Assist middle managers

Office Manager, Supervisor, Foreman,Department Head

The Leading Function

Managers Leaders

Position PowerPosition Power

IntellectualIntellectualRationalRational PracticalPractical VisionaryVisionaryInspirationalInspirational EmotionalEmotional

Personal PowerPersonal Power

Leadership Qualities

Social Quotient (SQ)Social Quotient (SQ)

Change Quotient (CQ)Change Quotient (CQ)

Intelligence Quotient (IQ)Intelligence Quotient (IQ)

Emotional Quotient (EQ)Emotional Quotient (EQ)

Leadership Styles

AutocraticAutocraticAutocraticAutocratic

Laissez-FaireLaissez-Faire

DemocraticDemocraticDemocraticDemocratic

ContingencyContingencyContingencyContingency

Leader Behavior Continuum

Management-CenteredManagement-CenteredLeadershipLeadership

Employee-CenteredEmployee-CenteredLeadershipLeadership

AuthorityAuthorityof Managerof Manager

Freedom Freedom For WorkersFor Workers

ManagerManagerMakesMakes

DecisionDecision

ManagerManager““Sells”Sells”

DecisionDecision

ManagerManagerPresentsPresents

IdeasIdeas

ManagerManagerMakesMakes

TentativeTentativeDecisionDecision

ManagerManagerPresentsPresentsProblemProblem

Manager Manager SetsSets

DecisionDecisionLimitsLimits

EmployeesEmployeesMakeMake

DecisionDecision

Types of Leaders

Transactional Transformational

Meeting Established GoalsMeeting Established Goals

Clarifying Organizational RolesClarifying Organizational Roles

Securing Correct ResourcesSecuring Correct Resources

Inspiring EmployeesInspiring Employees

Finding Creative SolutionsFinding Creative Solutions

Promoting SuccessPromoting Success

Additional Leadership Functions

CoachingCoaching MentoringMentoring

Meeting with employeesMeeting with employees

Discussing problemsDiscussing problems

Offering suggestionsOffering suggestions

Encouraging solutionsEncouraging solutions

Guiding employeesGuiding employees

Explaining office politicsExplaining office politics

Serving as role modelsServing as role models

Providing valuable adviceProviding valuable advice

Managing Change

PresentSituation

Processof Change

NewSituation

Identify WhatNeeds to Change

Identify Forces For and Against Change

Select the BestApproach

Reinforce andMonitor Behavior

Organizational Culture

EmployeeEmployeeInteractionsInteractions

EmployeeEmployeeInteractionsInteractions

CommunicationCommunicationPatternsPatterns

CommunicationCommunicationPatternsPatterns

BusinessBusinessConductConduct

BusinessBusinessConductConduct

AttitudesAttitudesAbout WorkAbout Work

AttitudesAttitudesAbout WorkAbout Work

AppropriateAppropriateAttireAttire

AppropriateAppropriateAttireAttire

The Controlling Function

Monitoring Progress

Resetting The Course

Correcting Deviations

The Quality Control Cycle

4. Adequate 4. Adequate No ActionNo Action

4. Adequate 4. Adequate No ActionNo Action

3. Compare3. CompareTo StandardTo Standard3. Compare3. CompareTo StandardTo Standard

4. Inadequate 4. Inadequate Take ActionTake Action

4. Inadequate 4. Inadequate Take ActionTake Action

1. Set 1. Set StandardsStandards

1. Set 1. Set StandardsStandards

2. Measure2. MeasurePerformancePerformance2. Measure2. Measure

PerformancePerformance

ReevaluateReevaluateStandardsStandardsReevaluateReevaluateStandardsStandards

CorrectCorrectPerformancePerformance

CorrectCorrectPerformancePerformance

Set StrategicSet StrategicGoalsGoals

Set StrategicSet StrategicGoalsGoals

ManagementManagementSkillsSkills

InterpersonalInterpersonal

TechnicalTechnical

AdministrativeAdministrative

ConceptualConceptual

Decision-MakingDecision-Making

The Decision-Making Process

Recognize andDefine the Situation

Recognize andDefine the Situation Identify OptionsIdentify Options Analyze OptionsAnalyze Options

Select the BestOption

Select the BestOption

Implement the Decision

Implement the Decision

Monitor and Evaluate the Results

Monitor and Evaluate the Results