© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 1

From Planning to From Planning to Inspiration:Inspiration:

The Functions of The Functions of ManagementManagement

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 2

Managerial FunctionsManagerial Functions

• Planning• Organizing• Leading • Controlling

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 3

The Roles of The Roles of ManagementManagement

• Interpersonal• Informational• Decisional

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 4

The Planning FunctionThe Planning Function

• Develop strategies for success• Set goals and objectives• Develop action plans

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 5

The Planning ProcessThe Planning Process

• Develop a clear vision• Create a mission statement• Perform SWOT analysis• Develop forecasts• Analyze the competition• Set goals and objectives• Develop action plans

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 6

Clarity of VisionClarity of Vision

• Development• Communication• Execution• Modification

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 7

The Mission StatementThe Mission Statement

• Objectives• Goals• Philosophies

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 8

SWOT AnalysisSWOT Analysis

• Strengths• Weaknesses• Opportunities• Threats

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 9

Managerial ForecastsManagerial Forecasts

• Qualitative forecasting– Intuitive judgments–Consumer research

• Quantitative forecasting–Historical data–Statistical computations

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 10

Competitive AnalysisCompetitive Analysis

• Differentiation strategy• Cost leadership strategy• Focus strategy

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 11

Company Goals and Company Goals and ObjectivesObjectives

• Goals– Broad, long-range

• Objectives– Specific, short-range

• Benefits– Boosts motivation– Sets standards– Guides activity– Clarifies expectations

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 12

Action PlansAction Plans

• Tactical plans• Operational plans

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 13

Planning for a CrisisPlanning for a Crisis

• Minimize damage–Contingency plans

• Maintain operations–Open communications

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 14

The Organizing FunctionThe Organizing Function

• Employee activities• Facilities and equipment• Decision making• Supervision• Resource distribution

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 15

The Management The Management PyramidPyramid

• Top managers• Middle managers• First-line managers

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 16

The Leading FunctionThe Leading Function

• Managers–Position power

• Leaders–Personal power

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 17

Leadership QualitiesLeadership Qualities

• Intelligence quotient (IQ)• Emotional quotient (EQ)• Social quotient (SQ)• Change quotient (CQ)

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 18

Leadership StylesLeadership Styles

• Autocratic• Democratic• Laissez-faire• Contingency

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 19

Continuum of Leader Continuum of Leader BehaviorBehavior

• Manager makes decision• Manager sells decision• Manager presents ideas• Manager makes tentative decision• Manager presents problem• Manager sets decision limits• Employees make decision

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 20

Types of LeadersTypes of Leaders• Transactional–Meeting established goals– Clarifying organizational roles– Securing correct resources

• Transformational– Inspiring employees– Finding creative solutions– Promoting success

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 21

Additional Leadership Additional Leadership FunctionsFunctions

• Coaching• Mentoring

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 22

Managing ChangeManaging Change

• Identify what needs to change• Identify forces for and against change• Select the best approach• Reinforce and monitor behavior

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 23

Organizational CultureOrganizational Culture

• Attitudes about work• Appropriate attire• Employee interactions• Communication patterns• Business conduct

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 24

The Controlling FunctionThe Controlling Function

• Monitoring progress• Resetting the course• Correcting deviations

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 25

The Control CycleThe Control Cycle• Set strategic goals1 . Set standards2 . Measure performance3 . Compare to standard4 . Inadequate take action–Correct performance–Reevaluate standards

4 . Adequate take no action

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 26

Management SkillsManagement Skills

• Interpersonal• Technical• Administrative• Conceptual• Decision-making

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 7 - 27

The Decision-Making The Decision-Making ProcessProcess

• Recognize and define situation• Identify options• Analyze options• Select the best option• Implement the decision• Monitor and evaluate the results