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Management Roles, Functions,

and SkillsChapter 7

Chapter 7 Objectives

After studying this chapter, you will be able to:

• Explain the importance of management and identify the three vital management roles.

• Describe the planning function and outline the strategic process.

• Describe the organizing function and differentiate among top, middle, and first-line management.

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Chapter 7 Objectives Cont.

• Describe the leading function, leadership style, and organizational culture.

• Describe the controlling function and explain the four steps in the control cycle.

• Identify and explain five important types of managerial skills.

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Managerial Functions

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PlanningPlanning

ControllingControlling

OrganizingOrganizing

Leading Leading

Managerial Roles

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InterpersonalInterpersonal

InformationalInformational

DecisionalDecisional

Managerial Roles

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Interpersonal roles:

Management is largely a question of getting work accomplished through the efforts of other people. Including;

Providing leadership to employees

Building relationships

Acting as a liaison between groups and individuals both inside and outside the company

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Managerial Roles

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Informational roles:

Managers spend a fair amount of time gathering

information from sources both inside and outside the

organization. They also distribute information to

employees, other managers, and other stakeholders.

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Executive Dashboards

12-81-8

Managerial Roles

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Decisional roles:

From deciding how to respond to a customer

complaint to deciding whether to acquire another

company or develop a new product line, managers up

and down the organizational ladder face an endless

stream of decisions.

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The Planning Function

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Develop Strategiesor Success

Develop Strategiesor Success

Set Goals andObjectives

Set Goals andObjectives

Develop ActionPlans

Develop ActionPlans

Planning: Establishing objectives and goals for an organization and determining the best ways to accomplish them.

Strategic Planning Process

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Define Mission, Vision, and Values

• Mission StatementA brief statement of why an organization exists; in other words, what the organization aims to accomplish for customers, investors, and other stakeholders

• Vision StatementA brief and inspirational expression of what a company aspires to be

• Values StatementA brief articulation of the principles that guide a company’s

decisions and behaviors

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SWOT Analysis

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SWOT

©2007 Prentice Hall12-14

Strengths are positive internal factors that contribute

to a company’s success

Weaknesses are negative internal factors that inhibit

the company’s success

Opportunities are positive external situations that

represent the possibility of generating new revenue

Threats are negative forces that could inhibit a firm’s

ability to achieve its objectives

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Develop Forecasts

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QualitativeQualitativeForecastingForecastingQualitativeQualitativeForecastingForecasting

QuantitativeQuantitativeForecastingForecastingQuantitativeQuantitativeForecastingForecasting

StatisticalStatisticalComputationsComputations

StatisticalStatisticalComputationsComputations

IntuitiveIntuitiveJudgmentsJudgments

IntuitiveIntuitiveJudgmentsJudgments

ConsumerConsumerResearchResearchConsumerConsumerResearchResearch

HistoricalHistoricalDataData

HistoricalHistoricalDataData

Quantitative Forecasts:Typically based on historical data or tests and often involve complex statistical computations

Qualitative Forecasts Based on intuitive judgments

Competitive Analysis

SWOT Analysis

Internal• Strengths• Weaknesses

External• Opportunities• Threats

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Establishing Goals and Objectives

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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

Establishing Goals and Objectives

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SMART

Develop Action Plans

• Tactical Plans: Plans that define the actions and the resource allocation necessary to achieve tactical objectives and to support strategic plans.

• Operational Plans: Plans that lay out the actions and the resource allocation needed to achieve operational objectives and to support tactical plans.

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Action Plans

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Tactical(1 – 3 years)

Tactical(1 – 3 years)

Operational(less than 1 year)

Operational(less than 1 year)

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Organizing

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Employee Activities

Facilities and Equipment

Decision Making

Supervision

Resource Distribution

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Organizing: The process of arranging resources to carry out the organization’s plans.

The Management Pyramid

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The Management Pyramid (cont.)

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Top Managers: Those at the highest level of the organization’s

management hierarchy. Responsible for setting strategic goals, and

they have the most power and responsibility in the organization.

Middle Managers: Those in the middle of the management

hierarchy. They develop plans to implement the goals of top

managers and coordinate the work of first-line managers.

First-line Managers: Those at the lowest level of the

management hierarchy. They supervise the operating employees

and implement the plans set at the higher management levels.

Leading

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Cognitive Intelligence: Involves reasoning, problem

solving, memorization, and other rational skills.

Emotional Intelligence: Measure of a person’s

awareness of and ability to manage his or her own

emotions.

Social intelligence: Involves looking outward to

understand the dynamics of social situations and the

emotions of other people, in addition to your own.

Leadership Styles

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Leadership Styles (cont.)

©2007 Prentice Hall12-26

Autocratic leaders make decisions without consulting

others. “My way or the highway” summarizes this style.

Democratic leaders delegate authority and involve

employees in decision making.

Laissez-faire leaders take the role of consultants,

encouraging employees’ ideas and offering insights or

opinions when asked.

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Leadership Styles (cont.)

©2007 Prentice Hall12-271-27

• Participative Management :A philosophy of allowing employees to take part in planning and decision making.

• Employee EmpowermentGranting decision-making and problem-solving authorities to employees so they can act without getting approval from management.

Leadership Tasks

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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

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PresentSituation

Processof Change

NewSituation

Identify WhatNeeds to Change

Identify ForcesFor and Against

Change

Select the BestApproach

Reinforce andMonitor Behavior

Organizational Culture

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CommunityCommunityCommunityCommunity CommunicationCommunicationCommunicationCommunication Employee Employee PerformancePerformance

Employee Employee PerformancePerformance

Company ValuesCompany ValuesCompany ValuesCompany Values PeoplePeoplePeoplePeople

Organizational Culture: A set of shared values and norms that support the management system and that guide management and employee behavior.

Creating the Ideal Culture in Your Company

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Creating the Ideal Culture in Your Company

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The Controlling Function

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Monitoring Progress

Resetting The Course

Correcting Deviations

Controlling: The process of measuring progress against goals and objectives and correcting deviations if results are not as expected.

The Controlling Cycle

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Standards: Criteria against which performance is measured

Benchmarking: Collecting and comparing process and performance data from other companies

Crisis Planning

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Con

tinge

ncy

Plan

s Open

Com

munication

CorporatePower Struggles

EnvironmentalAccidents

OperationalBreakdowns

Product Failures

Essential Management Skills• Interpersonal Skills: Skills required to understand other

people and to interact effectively with them.

• Technical Skills: The ability and knowledge to perform the mechanics of a particular job.

• Administrative Skills: Technical skills in information gathering, data analysis, planning, organizing, and other aspects of managerial work.

• Conceptual Skills: The ability to understand the relationship of parts to the whole.

• Decision Making Skills: The ability to identify a decision situation, analyze the problem, weigh the alternatives, choose an alternative, implement it, and to evaluate the results.

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Decision-Making Process

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Applying What You’ve Learned

1. Explain the importance of management and identify the three vital management roles

2. Describe the planning function and outline the strategic planning process

3. Describe the organizing function and differentiate among top, middle, and first-line management

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Applying What You’ve Learned (cont.)

4. Describe the leading function, leadership style, and organizational culture

5. Describe the controlling function and explain the four steps in the control cycle

6. Identify and explain five important types of managerial skills

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