copyright © 2009 pearson education canada6-1 chapter 6 understanding the functions and roles of...
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Copyright © 2009 Pearson Education Canada 6-1
Chapter 6Chapter 6 Understanding Understanding
the Functions the Functions and Roles of and Roles of ManagementManagement
Copyright © 2009 Pearson Education Canada 6-2
Managerial Managerial FunctionsFunctions
Planning
Controlling
Organizing
Leading
Copyright © 2009 Pearson Education Canada 6-3
InformationalInformational
DecisionalDecisional
InterpersonalInterpersonal
The Roles ofThe Roles ofManagementManagement
Copyright © 2009 Pearson Education Canada 6-4
Function 1: PlanningFunction 1: PlanningDevelop strategies
for successSet goals
and objectivesDevelop
action plans
Copyright © 2009 Pearson Education Canada 6-5
Strategic PlanningStrategic Planning
• Market standing• Innovation• Human resources• Financial
resources
• Physical resources• Productivity• Social responsibility• Financial
performance
Copyright © 2009 Pearson Education Canada 6-6
Six-Step Planning Six-Step Planning ProcessProcess
Develop a clear vision
1
Developforecasts
3
Goals and objectives
5
Mission Statement
2
Competitive analysis
4
Action plans6
Copyright © 2009 Pearson Education Canada 6-7
Clarity of VisionClarity of VisionDevelopmentDevelopment
CommunicationCommunication
ModificationModification
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The Mission StatementThe Mission Statement
Purpose Goals Philosophies
Productor Service
PrimaryMarket
Survival, Growth,Profitability
ManagerialPhilosophy
Level ofQuality
SocialResponsibility
Copyright © 2009 Pearson Education Canada 6-9
Managerial ForecastsManagerial Forecasts
QualitativeQualitativeForecastingForecasting
QuantitativeQuantitativeForecastingForecasting
StatisticalStatisticalcomputationscomputations
IntuitiveIntuitivejudgmentsjudgments
ConsumerConsumerresearchresearch
HistoricalHistoricaldatadata
Copyright © 2009 Pearson Education Canada 6-10
Competitive Competitive AnalysisAnalysisSWOTSWOTDifferentiation Differentiation
strategystrategyCost leadership Cost leadership
strategystrategy
Focus strategyFocus strategy
Copyright © 2009 Pearson Education Canada 6-11
Company Goals andCompany Goals andObjectivesObjectives
Boosts MotivationBoosts Motivation
Guid
es A
ctiv
ityGu
ides
Act
ivitySets StandardsSets Standards
Clarifies ExpectationsClarifies Expectations
Broad, long-range Broad, long-range target or aimtarget or aim
GoalsGoals ObjectivesObjectives
Specific, short-range Specific, short-range Target or aimTarget or aim
Copyright © 2009 Pearson Education Canada 6-12
Tactical Plans
Operational Plans
One-Three Years
Less Than a Year
MiddleManagers
First-Line Managers
Managem
entTi
me
Fram
e
Copyright © 2009 Pearson Education Canada 6-13
Crisis ManagementCrisis Management
MaintainMaintainoperationsoperations
MinimizeMinimizedamagedamage
OpenOpencommunicationcommunication
Contingency Contingency plansplans
Copyright © 2009 Pearson Education Canada 6-14
Function 2: Function 2: OrganizingOrganizing
Employee activitiesEmployee activities
Facilities and equipmentFacilities and equipment
Decision makingDecision making
SupervisionSupervision
Resource distributionResource distribution
Copyright © 2009 Pearson Education Canada 6-15
The Management The Management PyramidPyramid
First-lineFirst-lineManagersManagers
MiddleMiddleManagersManagers
TopTopManagersManagers
President, CEO, VP •Make long-range plans•Establish policies•Represent the company
Copyright © 2009 Pearson Education Canada 6-16
The Management The Management PyramidPyramid
First-lineFirst-lineManagersManagers
MiddleMiddleManagersManagers
TopTopManagersManagers
•Implement goals•Make decisions•Direct first-line managers
Controller, MarketingManager, Sales Manager
Copyright © 2009 Pearson Education Canada 6-17
The Management The Management PyramidPyramid
First-lineFirst-lineManagersManagers
MiddleMiddleManagersManagers
TopTopManagersManagers
•Implement plans•Oversee workers•Assist middle managers
Office Manager, Supervisor, Foreman,Department Head
Copyright © 2009 Pearson Education Canada 6-18
Function 3: Function 3: LeadingLeading
InfluencingInfluencingPeoplePeople
MotivatingMotivatingPeoplePeople
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LeadershipLeadershipSkillsSkills
EmotionalEmotionalQuotient (EQ)Quotient (EQ)
Self-awarenessSelf-awareness
Self-regulationSelf-regulation
MotivationMotivation
EmpathyEmpathy
Social skillsSocial skills
Copyright © 2009 Pearson Education Canada 6-20
ContingencyContingency
DemocraticDemocraticAutocraticAutocratic
Laissez-faireLaissez-faire
LeadershipLeadershipStylesStyles
Copyright © 2009 Pearson Education Canada 6-21
Continuum of Leader BehaviorContinuum of Leader Behavior
Manager sells decision
Manager presents ideas
Manager makes tentative decision
Manager presents problem
Manager sets decision limits
Employees make decision
Manager makes decision Boss-centered
Employee-centered
Authority of Managers
Freedom for Workers
Copyright © 2009 Pearson Education Canada 6-22
AdditionalAdditionalLeadership FunctionsLeadership Functions
CoachingCoaching MentoringMentoringManagingManagingChangeChange
Copyright © 2009 Pearson Education Canada 6-23
Corporate CultureCorporate Culture
EmployeeEmployeeperformanceperformance CommunicationCommunication CommunityCommunity
involvementinvolvement
PeoplePeople CompanyCompanyValuesValues
Copyright © 2009 Pearson Education Canada 6-24
Function 4: Function 4: ControllingControlling
Monitoring progress
Resetting the course
Correcting deviations
Copyright © 2009 Pearson Education Canada 6-25
The Control CycleThe Control CycleSet strategicSet strategic
goalsgoals
4. Adequate 4. Adequate no actionno action
3. Compare3. Compareto standardto standard
4. Inadequate 4. Inadequate take actiontake action
1. Set 1. Set standardsstandards
2. Measure2. Measureperformanceperformance
ReevaluateReevaluatestandardsstandards
CorrectCorrectperformanceperformance
Copyright © 2009 Pearson Education Canada 6-26
TotalTotalQuality ManagementQuality Management
Employeeinvolvement
Benchmarking
Customerfocus
Continuousimprovement
Copyright © 2009 Pearson Education Canada 6-27
Important Points of TQMImportant Points of TQM• Create constancy of purpose • Adopt a new philosophy• Cease mass inspection• Create long-term relationships• Constantly improve • Institute training• Institute leadership
Copyright © 2009 Pearson Education Canada 6-28
Important Points of TQMImportant Points of TQM• Drive out fear• Break down barriers • Eliminate slogans and targets• Eliminate numerical quotas• Remove barriers to pride in
work• Institute education and training• Take action and make changes
Copyright © 2009 Pearson Education Canada 6-29
Management SkillsManagement Skills
InterpersonalInterpersonal
AdministrativeAdministrative
TechnicalTechnical
ConceptualConceptual
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