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This slide show complements NCV 4 Management Practice Hands-On Training by Bert Eksteen & Anthony Hill, published by Future Managers Pty Ltd. For more information visit our website www.futuremanagers.net
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Management Practice 4
Module 4: Management functions
Module 4: Management functions
• After completing this module, you will be able to:– apply the decision-making process to make a
managerial decision
– apply the general management functions to a selected organisation
1. APPLY THE DECISION-MAKING PROCESS TO A MANAGEMENT DECISION
After completing this outcome, you will be able to:• Explain the steps to be followed in making a decision
with reference to authentic workplace situation
• Use the decision-making process to make a management decision
• Compile a written report on the result of the management decision taken
Introduction• The managing process consists of 4 functions:– Planning– Organising– Leading– Controlling
• Decision-making is a central aspect of all four fundamental management functions
• Successful organisations “out-decide” their competitors in at least three ways:– they make better decisions– they make decisions faster– they implement decisions more
Decision-making
• A decision implies that managers are faced with either a threat or an opportunity
• The course of history has been shaped by decisions
Types of managerial decisions
Programmed
Structured
Unprogrammed
Unstructured
Activity 1• Are the following decisions an example of a programmed
or non-programmed decision?– McDonalds had to pay wages at the end of the month.– McDonalds decide to enter a new market.– McDonalds decide to re-engineer their cheese burger, that
was for more than ten years on the market, with excellent sales over the years
– McDonalds want to add scones with strawberry jam and cream to their menu.
– McDonalds decide to continue with their “drive-thru” section – after concerns about the effect of the fuel price on this section.
Decision-making conditions
Certainty Risk Uncertainty
Outcome of options
predictable
Outcome of options
unpredictable
Probability
• Objective probability– Based on historical evidence
• Subjective probability– Historical evidence not available
Decision-making conditions and levels of uncertainty
Certainty Risk Uncertainty
Decision maker has complete certainty
Decision maker has some certainty
Decision maker has complete uncertainty
Available options and the benefits or costs of each are known
Outcome of each alternative is not known in advance
Outcome of each alternative is unpredictable
No element of change intervenes between the option and its outcome
Probability can be assigned to each alternative outcome
Probability cannot be assigned to each alternative outcome
Decision is a sure thing Decision is a “gamble” Decision requires “guts” or based on your “gut feeling”
Activity 2
• If you are the manager of a McDonald’s franchise nearby you, lists the decisions that you will make.
• Divide these decisions into decisions where the outcome is certain, decisions where there is risk involved (and mention the risk) and decisions with a lot of uncertainty.
1.1 Use the decision-making process to make a management decision
Stage 1Stage 1
Stage 2Stage 2
Stage 3Stage 3
Stage 4Stage 4
Stage 5Stage 5
Stage 6Stage 6
Stage 7Stage 7
Recognise, classify and define the problem or opportunity
Recognise, classify and define the problem or opportunity
Set goals and criteriaSet goals and criteria
Generate creative alternative courses of actionGenerate creative alternative courses of action
Evaluate alternative courses of actionEvaluate alternative courses of action
Select the best optionSelect the best option
Implement the chose optionImplement the chose option
Conduct follow up evaluationConduct follow up evaluation
Group decision making
Group decision making
Quantitative tools – Cost
benefit analysis
Quantitative tools – Cost
benefit analysis
Activity 3
• Ask somebody to bring a copy of a McDonald’s menu – if the facilitator has access to a menu, bring it for the learners to study
• Divide into groups of 3 – 5 members and discuss changes to the menu
• Write down your decision-making process that you followed in the changing of the menu
2. APPLY THE GENERAL MANAGEMENT FUNCTIONS TO A SELECTED ORGANISATION• After completing this outcome, you will be able to:• List the management functions in an organisation
• Identify who in the organisation is responsible for each function
• Explain the way in which each management function is addressed in an organisation, with reference to the organogram
• Outline the role of the team leader or low level manager in the management of an organisation with reference to the basic management functions and tasks
• Explain the advantages and disadvantages of different styles of leadership
• Describe the application of the various leadership styles
• Identify the leadership style evident in an organisation according to the organogram with examples
Management functions
Organising
ControllingPlanning
Leading
ResourcesHuman
FinancialPhysical
Information
PerformanceAchieve goals
ProductsServices
ProductivityProfit
Effective planning
Steps in the control process
Standards
Supervision
Input resources Output results
Conditions Conversion process(Activities and conditions)
Output results
Steps in the control process
How decision making and management functions link
Planning and decision makingManagers determine the organisation’s vision, mission and goals and decide on
a strategy to achieve them
Planning and decision makingManagers determine the organisation’s vision, mission and goals and decide on
a strategy to achieve them
LeadingManagers direct and motivate
members of the organisation to achieve the mission and goals
LeadingManagers direct and motivate
members of the organisation to achieve the mission and goals
OrganisingManager’s group
activities together, establish authority,
allocate resources and delegate
OrganisingManager’s group
activities together, establish authority,
allocate resources and delegate
ControllingManagers monitor progress and take corrective steps to
reach the mission and goals
ControllingManagers monitor progress and take corrective steps to
reach the mission and goals
How the four functions of management differ for the three
management levels
Activity 4
• Group discussion between the facilitator and the learners
• Visualise a McDonald’s Franchise – make a list of all the possible staff positions
• Draw a rough diagram to illustrate the different managerial positions of the McDonald's
• List the responsibilities of each position in McDonald's
The importance of leadership
Survey results have revealed that academics and practitioners alike agree that leadership is the most important topic within the realm of organisational behaviour. According to a leadership study of more than 25 000 employees, 69% of employee job satisfaction stems from the leadership skills of the employee’s manager. The major reason for employee failure is poor leadership. Management experts believe that leadership could be the number one strategic concern of business in the twenty-first century.
Important aspects of successful leadership
• Leaders deal with followers or individuals in the organisation, and unless they understand the basic behaviour of followers and the relationship between followers and the organisation, they will not be able to exercise their leadership role effectively.
• The leader will find that he or she also has groups as followers in the organisation
• Leadership is often defined as the management function that activates people to things willingly. This means that leaders must know how to motivate their followers.
• Leaders have to communicate their vision, strategies, and expectations to followers.
Different styles of leadership
Activity 5
• In your groups, decide on the leadership style for a McDonald's
• Write down the qualities and characteristics of such leadership style
• Write down , one or two, key points/qualities a McDonald's manager should have to make a success of his franchise