Management Function and Styles

1. Management Function and Styles Chap 6

2. Learning Objectives • Define management. • Explain the four functions of management. • Understand the use of three tools: SMART, SWOT, and PEST analysis. • Understand the basics of organizational structure. • Describe various management styles and know when they are appropriate. • Explain the challenges for management in the new century.

3. What is Management? • Effective management and leadership are the foundation of a flourishing business. • Management is an appointed position with a title, while leaders do not necessarily have to be managers. • Management is a position of power, a position that is granted to individuals because they are capable

4. What is Management? • Managers are expected to make decisions and make sure organizational tasks are accomplished • A manager’s job is to ensure goals are met and tasks are completed

5. Functions of management • All managers are charged with four key functions: • Planning • Organizing • Leading • Controlling

6. Functions of management

7. Functions of management • Planning • This includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives • One objective is to please customers • Planning is a key management function because the other functions depend heavily on having a good plan, no matter what the size of the business

8. Functions of management • Organizing • This includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization’s goals and objectives • Organizations must remain flexible and adaptable because customer needs change

9. Functions of management • Leading • Creating a vision for the organization and communicating, guiding, training, coaching and motivating others to work effectively to achieve the organization’s goals and objectives • The trend is to empower employees, giving them as much freedom as possible, so that they become self-directed and self motivated

10. Functions of management • Controlling • This involves establishing clear standards to determine whether an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not

11. Planning • As we have seen this is the first management function, and involves setting the organizational vision, mission, goals and objectives • Part of planning involves creation of a vision and a mission statement

12. Planning • Vision is a forward looking statement, provides a detailed explanation of why the organization exists and where it is headed in the future • Mission statement is an outline of the organization’s fundamental purposes • With the mission statement an organization describes ‘what business we are in”

13. Planning • A meaningful mission statement should have the following parts: • Customer needs • Company philosophy • The organization’s self concept • Long term survival • The nature of the company’s products or services • Social responsibility • Care for the employee

14. Planning • The mission statement becomes the foundation for setting specific goals • Goals – these are the broad, long term accomplishments an organization wishes to accomplish or achieve • Objectives – these are specific short term statements detailing how to achieve the organization’s goals

15. Planning • SWOT analysis • This is used to determine how well the organization is doing at any point in time • S – Strength • W – Weaknesses • 0 – Opportunities • T – Threats

16. SWOT analysis • Strengths and weakness come from inside the organization, • Opportunities and threats come from the external environment. • By performing a SWOT analysis, a company can better develop goals and objectives because manager can see the entire picture of their business

17. Example of SWOT analysis

18. PEST analysis • A tool specifically useful in understanding and analyzing the macro environment • PEST stands for Political, Economic, Social, and Technological.

19. Guidelines for setting SMART Objectives • Specific – make sure the objective is specific, • Measurable – a company must be able to easily see if the goal is met. Better customer service is hard goal to measure • Achievable – are the objectives achievable and attainable? • Realistic – can the company achieve the goal with the resources available? Has it enough staff • Time – What is the deadline for achieving goals? Is it 6 months, one year? Make sure it is realistic.

20. Forms of Planning • Strategic, • Tactical, • Operational, • Contingency

21. Strategic planning • Strategic planning goals have to do with the long term growth of the company or new product offerings • It provides the foundation for the policies, procedures, and strategies for obtaining and using resources to achieve these goals

22. Tactical Planning • This is the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done • These objectives are the short term goals that must be achieved in order to meet the strategic plans and goals

23. Operational Planning • Scheduling, budgeting, and any other necessary plans used to meet the tactical objectives • This is the process of setting work standards and schedules necessary to implement the company’s tactical objectives • The operational plan is the manager’s tool for daily and weekly operations

24. Contingency Planning • This is planning for “what if” scenarios or situations and secondary plans in case the original ones do not work

25. Organizing • Operationally, organizing means allocating resources (such as funds for various functions within departments), giving tasks to people to do, and establishing procedures for accomplishing the organizational objectives

26. Organizing • An organization chart is a visual diagram that shows relationships among people and divides the organization’s work. It shows who is responsible for certain work and who reports to whom

27. Organizing

28. Tasks and skills at different levels of management • A manager must have 3 categories or types of skills: • Technical skills, • Human relations skills • Conceptual skills

29. Tasks and skills at different levels of management • Technical skills • the skills required to do a specific job such as selling a product

30. Tasks and skills at different levels of management • Human relations skills • This is the ability to communicate and work closely with others, they include leadership, coaching, morale building, delegating, training and developing

31. Tasks and skills at different levels of management • Conceptual skills • Conceptual skills – these involve the ability to picture the organization as a whole and the relationships among its various parts • Conceptual skills are needed in planning, organizing, controlling, systems development, problem analysis, decision making, coordinating and delegating • This skill is needed by top level managers

32. An organization structure • This is the way a company is organized and where all employees fit into the bigger picture of the company • A manager must thoroughly understand what kind of structure her/his company has • Line and staff structure • A line and staff structure is one where the staff personnel advise and assit the line personnel in meeting the goals of the organization

33. An organization structure • A matrix organization teams arepeople from various departments to accomplish a common goal, such as getting a project done for a client • Departmentalization This means to ‘group’ related jobs or work processes into separate units • The traditional way to departmentalise is by functions

36. Organizing • Staffing: This involves recruiting, hiring, motivating and retaining the best people available to accomplish the company’s objectives • Managing diversity is also part of organizing. This is managing different people from different backgrounds in the pursuit of a common goal

37. Leading • A leader is a person who can provide guidance to employees through establishment of values and ethics but also manage change through vision

38. Leading • The key to good leadership includes: • communicate a vision and rally others around that vision • establish company values • promote corporate ethics • embrace change

39. Controlling • This involves measuring performance relative to the planned objectives and standards, rewarding people for work well done, and then taking corrective action if work is not well done • it provides the feedback that enables managers and workers to adjust to any changes in plans or in the environment that have affected performance

40. The Control Process • Establishing clear performance standards for employees so they know what is expected off them • Monitoring and recording actual performance • Comparing results against plans and standards • Communicating results and deviations or problems to employees involved • Taking corrective action when needed and giving positive feedback when necessary

41. What else do managers do? • Establish ethical frameworks for the employees • Create work-life balance: the idea that an individual should have control over interactions between work and home • Total Quality Management