© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 1

Understanding the Management Process

Chapter

6

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 2

The Four Main Resources of Management

Managers coordinate an organization’s resources to achieve the goals of the organization.

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 3

Basic Management Functions

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 4

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.”

Planning

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 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.

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 6

Planning (cont.)

SWOT analysis• The identification and evaluation of a firm’s

– Strengths– Weaknesses– Opportunities– Threats

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 7

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

Organizing, Leading

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 8

Controlling• Evaluating and regulating ongoing activities

to ensure that goals are achieved

Controlling

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 9

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.

Kinds of Managers

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 10

Key Skills of Successful Managers

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 11

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

Key Skills of Successful Managers (cont.)

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 12

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

Leadership

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 13

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.

Styles of Leadership

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 14

Tips for Successful Leadership

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 15

Chapter Quiz

1. People in an organization are what type of resource?

A. MaterialB. InformationalC. InventoryD. HumanE. Financial

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 16

Chapter Quiz

2. In executing their functions, managers must first

A. organize activities.B. establish goals.C. motivate employees.D. evaluate activities.E. select employees.

© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 6 | Slide 17

Chapter Quiz

3. One type of leadership style is

A. Autocratic.B. CEO.C. Bullying.D. Negotiator.E. Bureaucratic.