CHAPTER 12 & 13
Understanding the Functions and Roles of
Management & Organizing and Working in Teams
READ THE FOLLOWING VERY CAREFULLY
Learning Objectives
1.
2.
3.
4.
5.
6.
Define the four basic management functions
Outline the tasks involved in the strategic planning process
Explain the purpose of a mission statement
List the benefits of setting long-term goals and objectives
Cite three leadership styles and explain why no one style is best
Clarify how total quality management (TQM) is changing the way organizations
are managed
7. Identify and explain the three types of managerial skills
8. Discuss the function of a company’s organization structure
9. Explain the concepts of accountability, authority, and delegation
10. Define four types of departmentalization
11. Describe the five most common forms of teams
12. Highlight the advantages and disadvantages of working in teams
13. List the characteristics of effective teams
14. Review the five stages of team development
15. Highlight six causes of team conflict and three styles of conflict resolution
Summary of Learning Objectives
1. Define the four basic management functions.
The four management functions are (1) planning—establishing objectives and
goals for the organization and translating them into action plans; (2)
organizing—arranging resources to carry out the organization’s plans; (3)
leading—influencing and motivating people to work effectively and willingly
toward company goals; and (4) controlling—monitoring progress toward
organizational goals, resetting the course if goals or objectives change in
response to shifting conditions, and correcting deviations if goals or objectives
are not being attained.
2. Outline the tasks involved in the strategic planning process.
The strategic planning process begins with a clear vision for the company’s
future. This vision is then translated into a mission statement so it can be shared
with all members of the organization. Next, managers develop forecasts about
future trends that impact their industry and products; then they analyze the
competition—paying close attention to their strengths and weaknesses so they
can use this information to gain a competitive edge. With an eye on the
company’s vision and mission as well as on competition, managers establish
company goals and objectives. Finally they translate these goals and objectives
into action plans.
3. Explain the purpose of a mission statement.
A mission statement defines why the organization exists, what it does, what it
hopes to achieve, and the principles it will abide by to meet its goals. It is used
to bring clarity of focus to members of the organization and to provide
guidelines for the adoption of future projects.
4. List the benefits of setting long-term goals and objectives.
Goals and objectives establish long- and short-range targets that help managers
fulfill the company’s mission. Setting appropriate goals increases employee
motivation, establishes standards by which individual and group performance
can be measured, guides employee activity, and clarifies management’s
expectations.
5. Cite three leadership styles and explain why no one style is best.
Three leadership styles are autocratic, democratic, and laissez-faire (also called
free-rein). Each may work best in a different situation: autocratic when quick
decisions are needed, democratic when employee participation in decision
making is desirable, and laissez-faire when fostering creativity is a priority.
Good leaders are flexible enough to respond with the best approach for the
situation.
6. Clarify how total quality management (TQM) is changing the way
organizations are managed.
Total quality management is both a management philosophy and a management
process that focuses on delivering quality to customers. TQM redirects
management to focus on four key elements: (1) Employee involvement includes
team building and soliciting employee input on decisions. (2) Customer focus
involves gathering customer feedback and then acting on that feedback to better
serve customers. (3) Benchmarking involves measuring the company’s
standards against the standards of industry leaders. (4) Continuous improvement
requires an ongoing commitment to reducing defects, cutting costs, slashing
production and delivery times, and offering customers innovative products.
7. Identify and explain the three types of managerial skills.
Managers use (1) interpersonal skills to communicate with other people, work
effectively with them, and lead them; (2) technical skills to perform the
mechanics of a particular job; and (3) conceptual skills (including decision
making) to see the organization as a whole, to see it in the context of its
environment, and to understand how the various parts interrelate.
8-Discuss the function of a company’s organization structure.
An organization structure provides a framework through which a company can
coordinate and control the work, divide responsibilities, distribute authority, and hold
employees accountable. An organization chart provides a visual representation of this
framework.
9-Explain the concepts of accountability, authority, and delegation.
Accountability is the obligation to report work results to supervisors or team
members and to justify any outcomes that fall below expectations. Authority is
the power to make decisions, issue orders, carry out actions, and allocate
resources to achieve the organization’s goals. Delegation is the assignment of
work and the transfer of authority and responsibility to complete that work.
10-Define four types of departmentalization.
Companies may departmentalize in any combination of four ways: (1) by
function, which groups employees according to their skills, resource use, and
expertise; (2) by division, which establishes self-contained departments formed
according to similarities in product, process, customer, or geography; (3) by
matrix, which assigns employees from functional departments to
interdisciplinary project teams and requires them to report to both a department
head and a team leader; and (4) by network, which connects separate companies
that perform selected tasks for a headquarters organization.
11-Describe the five most common forms of teams.
The five most common forms of teams are (1) problem-solving teams, which
seek ways to improve a situation and then submit their recommendation to
management; (2) self-managed teams, which manage their own activities and
seldom require supervision; (3) functional teams, which are composed of
employees within a single functional department; (4) cross-functional teams,
which draw together employees from various departments and expertise in a
number of formats such as task forces, special-purpose teams, and committees;
and (5) virtual teams, which bring together employees from distant locations.
12-Highlight the advantages and disadvantages of working in teams.
Teamwork has the potential to increase creativity, motivation, performance, and
satisfaction of workers and thereby can lead to greater company efficiency,
flexibility, and cost savings. The potential disadvantages of working in teams
include the difficulties of managing employees’ changing roles, the possibilities
of free riders and groupthink, and the costs and time needed to coordinate
members’ schedules and project parts.
13-List the characteristics of effective teams.
Effective teams have a clear sense of purpose, communicate openly and
honestly, build a sense of fairness in decision making, think creatively, stay
focused on key issues, manage conflict constructively, and select team members
wisely by involving stakeholders, creative thinkers, and members with a
diversity of views. Moreover, effective teams have an optimal size of between 5
and 12 members.
14-Review the five stages of team development.
Teams typically go through five stages of development. In the forming stage,
team members become acquainted with each other and with the group’s
purpose. In the storming stage, conflict often arises as coalitions and power
struggles develop. In the norming stage, conflicts are resolved and harmony
develops. In the performing stage, members focus on achieving the team’s
goals. In the adjourning stage, the team dissolves upon completion of its task.
15-Highlight six causes of team conflict and three styles of conflict
resolution.
Conflict can arise from competition for scarce resources; confusion over task
responsibility; poor communication and misinformation; differences in values,
attitudes, and personalities; power struggles; and goal incongruity. Conflict can
be resolved by avoiding it and hoping that it will go away; by defusing it—
downplaying team member differences or focusing on member similarities; or
by confronting it and working hard to resolve the issues at hand.
PLEASE DO THE FOLLOWING TEST AND
ANSWER THE ESSAY QUESTIONS (50 POINTS )
MULTIPLE CHOICE QUESTIONS
1.
Which of the following is NOT considered a basic managerial function?
a) Controlling
b) Evaluating (page 139, Level 2, Moderate)
c) Leading
d) Planning
2.
Jorma Ollila became CEO of Nokia when the company was losing 80 million
dollars a year. He realized to transform the company he would need the very
best managers. He believes that when managers possess the right combination
of vision, skill, experience, and determination, they can lead an organization to
success. Ollila also knows ______.
a) Not everyone is equipped to be an effective manager (page 139,
Level 2, Moderate)
b) The four basic functions of management
c) Autocratic leadership is necessary in the mobile phone industry
d) How to maximize profits
3.
Patricia plans, organizes, leads, and controls resources to achieve organizational
goals. Which of the following best describes Patricia's role?
a) Capitalist
b) Leader
c) Manager (page 139, Level 2, Moderate)
d) Saint
4- Joe Smith, a human resource manager, surveys the competition’s benefit plans.
Joe then distributes an intra-office survey in his own company to determine employee
satisfaction with their existing plan. In this case, the human resource manager is fulfilling
which of the following roles?
a) Decisional
b) Informational (page 140, Level 3, Moderate)
c) Interpersonal
d) Technical
5Joe Smith, a human resource manager, uses information gathered in a
survey to draft a proposal for a new employee benefit plan. While encouraging innovation or
avoiding potential problems, the human resource manager is fulfilling the _____ role.
a) Decisional (page 140, Level 3, Moderate)
b) Informational
c) Interpersonal
d) Technical
6-Which characteristic is NOT essential to developing a vision?
a) Realistic
b) Creditable
c) Cost effectiveness (page 141, Level 1, Easy)
d) Attainable
7- When a small private college hires a new president, the new president drafts a
document defining why he believes the college should exist, what it seeks to
accomplish, and whom it should primarily serve. In this case, the president is
drafting a new _____.
a) Goals and objectives statement
b) Mission statement (page 141, Level 3, Moderate)
c) Vision
d) Tactical plan
8- Managers should not rely solely on published forecasts to interpret external
environments because published forecasts _____.
a) Are equally available to competitors (page 142, Level H, Difficult)
b) Cost too much to receive regularly
c) Generally have poor reputations for accuracy
d) Include too many key variables specific to individual companies
9-Josie is expanding her business into a new area and needs demographic profiles on
potential customers. By using this type of information, Josie is doing what type
of forecasting?
a) Qualitative
b) Differentiation
c) Quantitative (page 142, Level H, Difficult)
d) Benchmarking
10- Debbie wants to sell homegrown tomatoes from her garden at a local farmer’s
market. To determine the likelihood of her success, she would be wise to
______.
a) Grow the biggest tomatoes
b) Pass out samples
c) Size up the competition
d) All of the above (page 142, Level 3, Moderate)
11- For Virgin Atlantic, a(n) _____ might be to offer more daily trans-Atlantic
flights, and a(n) _____ might be to add three new trans-Atlantic flights by year's
end.
a) Goal; objective (page 143, Level 3, Moderate)
b) Objective; goal
c) Objective; task
d) Task; goal
12. Annie drafts her company's statements that focus on broad organizational issues
and aim to enhance company performance. Which of the following does she
develop?
a) Operational plans
b) Strategic goals (page 143, Level H, Difficult)
c) Tactical plans
d) Tactical goals
13- A crisis management plan should include all of the following EXCEPT:
a) How to keep the company operating smoothly during a crisis
b) Identify ahead of time who will be the spokesperson
c) Wait and see how the public responds before issuing a public statement
(page 143, Level 2, Moderate)
d) Keep top managers visible immediately after a crisis
14-Management pyramids are necessary because _____.
a) Managers are more productive when upward mobility is possible
b) Managers work more effectively in rigid corporate hierarchies
c) More than one manager is necessary to guide all but the smallest
organizations
(page 145, Level H, Difficult)
d) Most free-market economies guarantee employment to citizens; pyramids
increase employment
15-Sigrid, a middle manager in a global corporation, is particularly effective at
motivating people from different backgrounds to cooperate to achieve
organizational goals. In which of the following managerial functions does she
excel?
a) Controlling
b) Leading (page 145, Level 3, Moderate)
c) Organizing
d) Planning
16- Which of the following statements is NOT true about democratic leadership?
a) Its decision-making process is slower than autocratic leadership's.
b) Its decisions reflect the input of people who are knowledgeable about the
issues.
c) It emphasizes adjusting leadership styles to suit current business
circumstances.
(page 147, Level 2, Moderate)
d) It is gaining popularity as more organizations adopt teamwork principles.
17-The first step in the control cycle involves _____ and is most closely related to the
_____ function.
a) Assessing performance; evaluating
b) Assessing performance; planning
c) Establishing evaluation criteria; leading
d) Establishing evaluation criteria; planning (page 150, Level 1, Easy)
18-Product quality is a measure of _____.
a) How closely a product conforms to predetermined standards and customer
expectations (page 150, Level 2, Moderate)
b) How well a product sells compared to its closest competing products
c) The product's durability
d) The product's serviceability