Management Functions &
Decision Making
UNIT 4: CHAPTER 11
Nature of Management

Managers make things happen in
business. From the original idea for a
business, through accumulating and
determining the best ways to use the
resources needed to operate the
business, to managing people,
managers are responsible for the
success or failure of the company!
Management Activities
Because there are so many types of
managers, it is difficult to identify exactly
what they do. However, there are a
number of activities that all managers
must perform no matter what part of the
business they work.
 Management is the process of
accomplishing the goals of an
organization through the effective use of
people and other resources.

Management Activities

The primary work of all managers can be
grouped into four functions:
1.
2.
3.
4.
Planning: involves analyzing information and
making decisions about what needs to be done.
Organizing: is concerned with determining how
plans can be accomplished most effectively and
arranging resources to complete work.
Implementing: carrying out the plans and helping
employees to work effectively
Controlling: evaluating results to determine if the
company’s objectives have been accomplished
Management and NonManagement Employees

A manager completes all four management
functions on a regular basis and has authority
over other jobs and people.

A manager whose main job is to direct the
work of employees is called a supervisor.
They are typically the first level of
management in a company and often have
many non-managerial activities to perform as
well.
Continued


An executive is a top-level manager who
spends almost all of his or her time on
management functions. They have other
managers reporting to them. Between an
exec. and a supervisor there will be several
levels of mid-managers.
A mid-manager completes all of the
management functions, but spends most of
the time on one management function such as
planning or controlling, or is responsible for a
specific part of the company’s operations.
Effectiveness of Supervisors

The effectiveness of a supervisors job
is determined by three factors:
1.
2.
3.
Quality of work of supervised employees
Efficient use of the company’s resources
Satisfaction of supervisors employees
Responsibilities of Supervisors

Communicate the goals and directions

Keeping management informed

Evaluating and improving employee
performance

Motivating Employees

Using Resources Wisely
Problems and Decision Making

A problem is a difficult situation requiring
a solution. Problems usually do not
have single solutions. Instead they have
a series of possible solutions. There
may be several good solutions, but there
may also be several poor solutions.
Steps in Problem Solving

There are FOUR steps to Problem Solving
1. Identify the Problem
2. Determine Possible Solutions
3. Analyze the Solutions
4. Select Best Solution
Strategic VS. Operational

Strategic Planning: is long term and
provides broad goals and direction for
the entire business

Operational Planning: is short term and
identifies specific activities for each area
of the business
SWOT Analysis

Internal
Strengths
 Weaknesses


External
Opportunities
 Threats

Opportunities and Threats

Companies want to identify any
opportunities for expanding and
improving the business and any threats
the company faces from competition,
changes in the economy, new laws and
regulations and other factors outside the
company.
Strengths and Weakness

Companies want to evaluate their own
capabilities and weaknesses.

They want to reduce weaknesses and
build on strengths.
Mission Statements

A mission statement is a short, specific
statement of the business’s purpose and
direction.

The mission flows out of a broad,
lasting, and often inspirational vision of
the company’s reason for existing.