Management Functions and
Skills
Chapter 12
12-1
©2007 Prentice Hall
Chapter 12 Objectives
After studying this chapter, you will be able to:
• Define the four basic management functions
• Outline the strategic planning process
• Explain the purpose of a mission statement
• Discuss the benefits of SWOT analysis
• Explain the importance of setting long-term
goals and objectives
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Chapter 12 Objectives, cont.
• Cite three common leadership styles and explain
why no one style is best
• Identify and explain four important types of
managerial skills
• Summarize the six steps involved in the
decision-making process
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Managerial Functions
Planning
Organizing
Leading
Controlling
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Managerial Roles
Interpersonal
Informational
Decisional
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Planning
Develop Strategies
For Success
Set Goals and
Objectives
Develop Action
Plans
12-6
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Strategic Plans
Market Standing
Physical Resources
Innovation
Productivity
Human Resources
Social Responsibility
Financial Resources
Financial Performance
12-7
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Strategic Planning Process
1. Clarity of Vision
2. Mission Statement
3. Forecasting
4. Competitive Analysis
5. Goals and Objectives
6. Action Plans
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Develop a Clear Vision
Development
Communication
Execution
Modification
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Vision to Mission Statement
Objectives
Goals
Philosophies
Product
or Service
Primary
Market
Survival, Growth,
Profitability
Managerial
Philosophy
Level of
Quality
Social
Responsibility
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SWOT
Strengths
Weaknesses
Opportunities
Threats
12-11
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Forecasts
Qualitative
Forecasting
Intuitive
Judgments
Quantitative
Forecasting
Consumer
Research
Historical
Data
Statistical
Computations
12-12
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Competitive Analysis
Differentiation
Cost Leadership
Focus
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Company Goals / Objectives
Goals
Objectives
Broad, Long-Range
Target or Aim
Specific, Short-Range
Target or Aim
Sets Standards
Guides Activity
Boosts Motivation
Clarifies Expectations
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Action Plans
Tactical
Operational
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Crisis Planning
Operational
Breakdowns
Product
Failures
Environmental
Accidents
Contingency
Plans
Open
Communication
Corporate
Power Struggles
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Organizing
Employee Activities
Facilities and Equipment
Decision Making
Supervision
Resource Distribution
12-17
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The Management Pyramid
Top
Managers
Middle Managers
First-line Managers
12-18
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Leading
Influencing
Motivating
Obtaining
Corporate Goals
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Are You a Leader?
•
•
•
•
Can you listen?
Can you communicate?
Can you lead by example?
Are you dedicated to the organization’s
success above your own?
• Do you know what makes other people
tick?
• Do you manage yourself well?
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Are You a Leader?
• Are you willing to accept responsibility?
• Can you face reality?
• Can you solve problems but stay focused
on opportunities?
• Are you willing to trust your employees?
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Self-Awareness
Self-Regulation
Leadership
Skills
Motivation
Empathy
Emotional
Quotient (EQ)
Social Skills
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Leadership Styles
Autocratic
Democratic
Laissez-faire
Contingency
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Types of Leaders
Transactional
Transformational
Meeting Established Goals
Inspiring Employees
Clarifying Organizational Roles
Finding Creative Solutions
Securing Correct Resources
Promoting Success
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Leadership Functions
Coaching
Mentoring
Meeting with employees
Guiding employees
Discussing problems
Explaining office politics
Offering suggestions
Serving as role models
Encouraging solutions
Providing valuable advice
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Managing Change
Present
Situation
Identify What
Needs to Change
Process
of Change
Identify Forces
For and Against
Change
Select the Best
Approach
New
Situation
Reinforce and
Monitor Behavior
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Organizational Culture
Attitudes
About Work
Employee
Interactions
Appropriate
Attire
Communication
Patterns
Business
Conduct
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The Controlling Function
Monitoring Progress
Resetting The Course
Correcting Deviations
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The Control Cycle
Set Strategic
Goals
1. Set
Standards
2. Measure
Performance
Reevaluate
Standards
Correct
Performance
4. Inadequate
Take Action
3. Compare
To Standard
4. Adequate
No Action
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TQM
Employee
Involvement
Customer
Focus
Benchmarking
Continuous
Improvement
12-30
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Management
Skills
Interpersonal
Technical
Administrative
Conceptual
Decision-Making
The Five Basics
12-31
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