Chapter 11

Management Function and Decision Making

Nature of Management

• Definition: Management is the process of accomplishing the goals of an organization through the effective us of people and other resources.

Four Functions of Management

• Planning

• Organizing

• Implementing

• Controlling

Planning

– Analyzing information

–Making decisions

Organizing

– Determining how plans can be accomplished most effectively.

– Arranging resources to complete work.

Implementing

– Carrying out plans.

– Helping employees work effectively.

Controlling

– Evaluating results.

– Determine the company’s objective have been accomplished as planned.

Management and Non-Management Employees

Manager

–Managers complete all four management functions on a regular basis.

–Managers have authority over other jobs and people.

Types of Managers

• Supervisor

• Mid-Manager

• Executive

Supervisor

• Typically first (or beginning) level of management in a company.

• Main job is to work directly with employees.

• Often have many non-managerial activities to perform.

Mid-manager

• Completes all of the management functions, but usually spends most of the time on one management function.

• Usually responsible for a specific part of the company’s operations.

Executive

• Top-level manager who spend almost all of her or his time on management functions.

• Usually have other managers reporting directly to them.

Supervision

The Supervisors Job

Supervisors Job Traits

• Responsible for:– Planning

• Usually promoted from the area where they work.

• Usually selected from among the most experiences and most skilled workers.

• Responsible for the day-to-day activities of the company’s employees.

Supervisors

• Need to understand and work with both employees and management.

• Implement the decisions of management.

• Must solve problems and present employee concerns to management.

Factors outlining effectiveness of a supervisor’s job.

• The quality of work of the supervised employees.

• Effective use of company resources.

• The satisfaction of supervisor’s employees.

Responsibilities of Supervisors

– Communicate the goals and directions of management to employees.

– Explain employee concerns and ideas to management.

– Evaluate and improve employee performance.

– Encourage employees to do their best work.

– Use resources efficiently.

Day-to-day Management

Planning

– Identify the task to be done.

– Use of work schedules

Organizing

– Identify the timeframe for completion of each task. • Determine what work need to be done.

• Set priority for work.

Implementing and Controlling

– Ensure work is completed properly and on time.

– Communicate with employees and managers.

– Oversee execution of work.

– Oversee quality control.

Improving Supervisory Skills

• Rely on employees to do their job.

• Help employees grow in their job skills.

• Take advantage of training programs.

• Use of mentor programs.

Using Management Information

Business Research

– Conducted to aid in decision making.

–Most business research is done by the business itself.

– Some companies use research centers and faculty in universities.

–Most companies will use trade and professional organizations.

– Companies may also use research organizations or individual consultants.

Decision Making

Problems and Decision Making

• Generally a problem is a difficult situation requiring a solution.

• Problems usually do not have one single solution.

• A supervisor’s or manager’s job is to find the best possible solution for the problem.

Steps in problem solving

• Identify the problem.– Manager must recognize that the problem exists.

» Managers must review plans and performance regularly.

» Managers must recognize evidence of a problem rather then ignore it.

» It is better to review symptoms and determine that there is no problem than to wait until problems are so bid they are difficult to correct.

Manager must be careful to identify the problem, and NOT identify a symptom

as the problem.

• Determine possible solutions.– Managers must list all possible solutions.

» Managers should not overlook any reasonable solutions.

» Use techniques such as brainstorming, input from employees, other managers, outside experts, past solutions, etc…

Analyze the solutions.

– Study each possible solution carefully.

– Reduce the number for possible solutions to the best two or three.

– Study each solution thoroughly and objectively.

– Study strengths as weaknesses.

– Compare solutions and classify in some way.

Select the best solution.

– After the best possible solution is chosen a manger needs to implement the solution.

– Monitor the results of the decision and be prepared to make changes if the problem is not corrected.