Understanding the Management Process

1. Understanding the Management Process Chapter 6

2. The Four Main Resources of Management Managers coordinate an organization’s resources to achieve the goals of the organization.

3. Basic Management Functions

4. Planning • Planning • Establishing goals and deciding how to accomplish them • Mission • A statement of the basic purpose that makes an organization different from others • Example: Starbucks mission statement- • “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”

5. Planning (cont.) • Establishing goals and objectives • Goal • An end result that an organization is expected to achieve over a one- to ten-year period • Example: We will be the world leader in laptop computers. • Objective • A specific statement detailing what an organization intends to accomplish over a shorter period of time • Example: We will sell 1 million laptops by the end of the third quarter this year. • Good objectives are specific, measurable, achievable and in writing.

6. Planning (cont.) • SWOT analysis • The identification and evaluation of a firm’s • Strengths • Weaknesses • Opportunities • Threats

7. Organizing, Leading • Organizing • The grouping of resources and activities to accomplish some end result in an efficient and effective manner • Leading and motivating • Leading • Influencing people to work toward a common goal • Motivating • Providing reasons for people to work in the best interests of an organization

8. Controlling • Controlling • Evaluating and regulating ongoing activities to ensure that goals are achieved

9. Kinds of Managers • Levels of management • Top manager—guides and controls the overall fortunes of an organization • Middle manager—implements the strategy and major policies developed by top management • First-line manager—coordinates and supervises the activities of operating employees • The coordinated effort of all three levels of managers is required to implement the goals of any company.

10. Key Skills of Successful Managers

11. Key Skills of Successful Managers (cont.) • Key management skills • Conceptual skills • Ability to think in abstract terms • Analytic skills • Ability to identify problems, generate alternative solutions, and select the best solution • Interpersonal skills • Ability to deal effectively with other people • Technical skills • Needed to accomplish a specialized activity • Communication skills • The ability to speak, listen, and write effectively

12. Leadership • The ability to influence others • Leadership versus management-good leaders don’t necessarily make good managers; good managers don’t necessarily make good leaders. • Formal leadership • Legitimate power of position is the basis for authority • Informal leadership • Not recognized formally by the organization authority

13. Styles of Leadership • Autocratic • A task-oriented style. Workers are told what to do and how to do it. Workers have no say in the decision-making process. • Participative • Leaders consult workers before making decisions. • All members of a team are involved in identifying goals and developing strategies to reach those goals. • Example: Google co-founders, Larry Page and Sergey Brin • Entrepreneurial • A personality-based style. The manager seeks to inspire workers with a vision. Is very passionate, enthusiastic, charismatic, a “visionary.” • Example: Steve Jobs of Apple • No one leadership style is best. • Good managers match their style to the situation.

14. Tips for Successful Leadership

15. Chapter Quiz • People in an organization are what type of resource? • Material • Informational • Inventory • Human • Financial

16. Chapter Quiz • In executing their functions, managers must first • organize activities. • establish goals. • motivate employees. • evaluate activities. • select employees.

17. Chapter Quiz • One type of leadership style is • Autocratic. • CEO. • Bullying. • Negotiator. • Bureaucratic.