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© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 1
The Functions of The Functions of ManagementManagement
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 2
Managerial Managerial FunctionsFunctions
PlanningPlanning
ControllingControlling
OrganizingOrganizing
Leading Leading
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 3
Roles of ManagementRoles of Management
InformationalInformationalInformationalInformational
InterpersonalInterpersonalInterpersonalInterpersonal
DecisionalDecisionalDecisionalDecisional
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 4
The Planning FunctionThe Planning Function
Develop Strategies for Success
Set Goalsand Objectives
Develop Action Plans
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 5
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
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 6
Clarity of VisionClarity of Vision
DevelopmentDevelopment
ExecutionExecution
ModificationModification
CommunicationCommunication
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 7
Mission StatementMission Statement
Objectives Goals Philosophies
Productor Service
PrimaryMarket
Survival, Growth,Profitability
ManagerialPhilosophy
Level ofQuality
SocialResponsibility
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 8
WeaknessesWeaknessesStrengthsStrengths
OpportunitiesOpportunities ThreatsThreats
SWOTSWOTAnalysisAnalysis
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 9
Managerial ForecastsManagerial Forecasts
QualitativeQualitativeForecastingForecastingQualitativeQualitativeForecastingForecasting
QuantitativeQuantitativeForecastingForecastingQuantitativeQuantitativeForecastingForecasting
StatisticalStatisticalComputationsComputations
StatisticalStatisticalComputationsComputations
IntuitiveIntuitiveJudgmentsJudgments
IntuitiveIntuitiveJudgmentsJudgments
ConsumerConsumerResearchResearchConsumerConsumerResearchResearch
HistoricalHistoricalDataData
HistoricalHistoricalDataData
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 10
Competitive Competitive AnalysisAnalysis
Differentiation Differentiation
Cost Leadership Cost Leadership
FocusFocus
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 11
Company Goals andCompany Goals andObjectivesObjectives
Company Goals andCompany Goals andObjectivesObjectives
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
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 12
Tactical Plans
Operational Plans
One-Three Years
Less Than a Year
MiddleManagers
First-Line Managers
Ma
na
ge
men
tTim
e F
ram
e
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 13
Crisis ManagementCrisis Management
MaintainMaintainOperationsOperationsMaintainMaintain
OperationsOperationsMinimizeMinimizeDamageDamageMinimizeMinimizeDamageDamage
OpenOpenCommunicationCommunication
OpenOpenCommunicationCommunication
Contingency Contingency PlansPlans
Contingency Contingency PlansPlans
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 14
The Organizing The Organizing FunctionFunction
Employee ActivitiesEmployee Activities
Facilities and EquipmentFacilities and Equipment
Decision MakingDecision Making
SupervisionSupervision
Resource DistributionResource Distribution
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 15
The Management The Management PyramidPyramid
First-lineFirst-lineManagersManagers
MiddleMiddleManagersManagers
TopTopManagersManagers
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 16
The Management The Management PyramidPyramid
First-lineFirst-lineManagersManagers
MiddleMiddleManagersManagers
TopTopManagersManagers
President, CEO, VP •Make long-range plans•Establish policies•Represent the company
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 17
The Management The Management PyramidPyramid
First-lineFirst-lineManagersManagers
MiddleMiddleManagersManagers
TopTopManagersManagers
•Implement goals•Make decisions•Direct first-line managers
Controller, MarketingManager, Sales Manager
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 18
The Management The Management PyramidPyramid
First-lineFirst-lineManagersManagers
MiddleMiddleManagersManagers
TopTopManagersManagers
•Implement plans•Oversee workers•Assist middle managers
Office Manager, Supervisor, Foreman,Department Head
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 19
The Leading FunctionThe Leading Function
Managers Leaders
Position PowerPosition Power
IntellectualIntellectualRationalRational PracticalPractical VisionaryVisionaryInspirationalInspirational EmotionalEmotional
Personal PowerPersonal Power
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 20
Leadership QualitiesLeadership 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)
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 21
Leadership StylesLeadership Styles
AutocraticAutocraticAutocraticAutocratic
Laissez-FaireLaissez-Faire
DemocraticDemocraticDemocraticDemocratic
ContingencyContingencyContingencyContingency
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 22
Leader Behavior Leader Behavior ContinuumContinuum
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
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 23
Types of LeadersTypes 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
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 24
Additional Additional Leadership FunctionsLeadership 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
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 25
Managing ChangeManaging Change
PresentSituation
Processof Change
NewSituation
Identify WhatNeeds to Change
Identify Forces For and Against Change
Select the BestApproach
Reinforce andMonitor Behavior
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 26
Organizational CultureOrganizational Culture
EmployeeEmployeeInteractionsInteractions
EmployeeEmployeeInteractionsInteractions
CommunicationCommunicationPatternsPatterns
CommunicationCommunicationPatternsPatterns
BusinessBusinessConductConduct
BusinessBusinessConductConduct
AttitudesAttitudesAbout WorkAbout Work
AttitudesAttitudesAbout WorkAbout Work
AppropriateAppropriateAttireAttire
AppropriateAppropriateAttireAttire
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 27
The Controlling The Controlling
FunctionFunctionMonitoring Progress
Resetting The Course
Correcting Deviations
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 28
The Quality Control CycleThe 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
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 29
ManagementManagementSkillsSkills
InterpersonalInterpersonal
TechnicalTechnical
AdministrativeAdministrative
ConceptualConceptual
Decision-MakingDecision-Making
© Prentice Hall, 2007 Excellence in Business, 3e Chapter 6 - 30
The Decision-Making The Decision-Making ProcessProcess
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