Chapter 7 Outline Managers Roles are Evolving Management has become more progressive More emphasis on team building and teamwork as opposed to discipline and order giving Management is experiencing a revolution Management will soon demand a new kind of person a skilled communicator a team player coordinator organizer and supervisor Functions of Management Managers give direction provide leadership and decide how to use resources to accomplish goals Management The process used to accomplish organizational goals through planning organizing leading controlling people and other organizational resources Planning A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives o Setting organizational goals o Developing strategies to reach those goals o Determining resources needed o Setting precise standards Organizing A management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve organization s goals and objectives o Allocating resources assigning tasks and establishing procedures for accomplishing goals o Preparing a structure showing lines of authority and responsibility o Recruiting selecting training and developing employees o Placing employees where they ll be most effective Leading Creating a vision for the organization and guiding training coaching and motivating others to work effectively to achieve organization s goals and objectives o Guiding and motivating employees to work effectively to accomplish organizational goals and objectives o Giving assignments o Explaining routines o Providing feedback on performance Controlling A management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives rewarding people for doing a good job and taking corrective action if they are not o Measuring results against corporate objectives o Monitoring performance relative to standards o Rewarding outstanding performance o Taking corrective action when necessary Planning Creating a Vision Based on Values Executives rate planning as the most valuable tool in the workbench Vision An encompassing explanation of why the organization exists and where it s trying to head A vision gives the organization a sense of purpose and a set of values that together unite workers in a common destiny Mission Statement An outline of the fundamental purposes of an o Becomes the foundation for setting specific goals and selecting and organization motivating employees o Should Address Organization s self concept Company philosophy Long term survival Customer needs The nature of the company s product or service Goals The broad long term accomplishments an organization wishes to Social responsibility attain a team process Goals need to be mutually agreed on by workers and management it is often Objectives Specific short term statements detailing how to achieve the organization s goals SWOT Analysis A planning tool used to analyze an organizations strengths weaknesses opportunities and threats o Process begins with analysis of the business environment o Then identifies strengths and weaknesses o After analysis of business environment company is able to identify opportunities and threats Strategic Planning The process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals o During the strategic planning stage companies decide which customers to serve what products or services to sell and the geographic areas in which the firm will compete o With rapidly changing economy companies are making shorter term plans that allow quick responses to customers needs and requests The goal is to be flexible and responsive to the market o Usually developed by top managers of the firm Tactical Planning The process of developing detailed shorter term statements about what is to be done who is to do it and how it is to be done o Normally done by managers or teams of managers at lower levels of the organizations o Involves setting budgets and deciding on other details and activities necessary to meet the strategic objectives Operation Planning Is the process of setting work standards and schedules necessary to implement the company s tactical objectives o Operational planning focuses on specific supervisors department managers and individual employees Contingency Planning The process of preparing alternative courses of action that may be used if the primary plans don t achieve the organization s objectives o Because of the constant changes in the economy it is always wise for companies to have several contingency plans Backup plans Stay flexible listen to customers and seize opportunities when they come whether or not those opportunities were expected Opportunities must fit into the company s overall goals and objectives or the company could lose its focus Decision Making Finding the Best Alternative Decision Making Choosing among tow or more alternatives o Seven D s of decision making Define the situation Describe and collect needed information Develop alternatives Develop agreement among those involved Decide which alternative is best Do what is indicated Determine whether the decision was a good one and follow up Problem Solving The process of solving everyday problems that occur Problem solving is less formal than decision making and usually calls for quicker action Brainstorming Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas PMI Listing all the pluses for a solution in one column and all the minuses in another and the implication in the third column Organizing Creating A Unified System Managers must organize the firm to accomplish goals Organizing allocating resources assigning tasks and establishing procedures for accomplishing the organizational objectives Organization Chart A visual device that shows relationships among people and divides the organization s work it shows who is accountable for the completion of specific work and who reports to whom Top Management Highest level of management consisting of president and other key company executives who develop strategic plans CEO s COO CFO CIO CKO etc The CEO is often the president of the fir and is responsible for all top level decisions in the firm The
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