The Functions of
Management
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 1
Managerial Functions
Planning
Organizing
Leading
Controlling
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 2
Roles of Management
Interpersonal
Informational
Decisional
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 3
The Planning Function
Develop Strategies
for Success
Set Goals
and Objectives
Develop
Action Plans
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 4
Strategic Planning Process
1
Develop
A Vision
7
Develop
Action Plans
2
Write Mission
Statement
6
Set Goals
And Objectives
3
Perform
SWOT Analysis
5
Analyze
Competition
© Prentice Hall, 2007
4
Develop
Forecasts
Excellence in Business, 3e
Chapter 6 - 5
Clarity of Vision
Development
Communication
Execution
Modification
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 6
Mission Statement
Objectives
Goals
Philosophies
Product
or Service
Primary
Market
Survival, Growth,
Profitability
Managerial
Philosophy
Level of
Quality
Social
Responsibility
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 7
Strengths
Weaknesses
SWOT
Analysis
Opportunities
© Prentice Hall, 2007
Threats
Excellence in Business, 3e
Chapter 6 - 8
Managerial Forecasts
Qualitative
Forecasting
Intuitive
Judgments
© Prentice Hall, 2007
Quantitative
Forecasting
Consumer
Research
Historical
Data
Excellence in Business, 3e
Statistical
Computations
Chapter 6 - 9
Competitive Analysis
Differentiation
Cost Leadership
Focus
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 10
Company Goals and
Objectives
Goals
Objectives
Broad, Long-Range
Target or Aim
Specific, Short-Range
Target or Aim
Sets Standards
Guides Activity
Boosts Motivation
Clarifies Expectations
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 11
One-Three
Years
Middle
Managers
Operational Plans
First-Line
Managers
Time Frame
Management
Tactical Plans
Less Than
a Year
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 12
Crisis Management
Minimize
Damage
Maintain
Operations
Contingency
Plans
Open
Communication
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 13
The Organizing Function
Employee Activities
Facilities and Equipment
Decision Making
Supervision
Resource Distribution
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 14
The Management Pyramid
Top
Managers
Middle
Managers
First-line
Managers
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 15
The Management Pyramid
President, CEO, VP
Top
Managers
•Make long-range plans
•Establish policies
•Represent the company
Middle
Managers
First-line
Managers
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 16
The Management Pyramid
Controller, Marketing
Manager, Sales Manager
Top
Managers
•Implement goals
•Make decisions
•Direct first-line managers
Middle
Managers
First-line
Managers
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 17
The Management Pyramid
Office Manager,
Supervisor, Foreman,
Department Head
Top
Managers
•Implement plans
•Oversee workers
•Assist middle managers
Middle
Managers
First-line
Managers
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 18
The Leading Function
Rational
Managers
Leaders
Position Power
Personal Power
Intellectual
© Prentice Hall, 2007
Practical
Inspirational
Excellence in Business, 3e
Visionary
Emotional
Chapter 6 - 19
Leadership Qualities
Intelligence Quotient (IQ)
Emotional Quotient (EQ)
Social Quotient (SQ)
Change Quotient (CQ)
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 20
Leadership Styles
Autocratic
Democratic
Laissez-Faire
Contingency
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 21
Leader Behavior Continuum
Management-Centered
Leadership
Employee-Centered
Leadership
Authority
of Manager
Freedom
For Workers
Manager
Makes
Decision
Manager
“Sells”
Decision
© Prentice Hall, 2007
Manager
Presents
Ideas
Manager
Makes
Tentative
Decision
Manager
Presents
Problem
Excellence in Business, 3e
Manager
Sets
Decision
Limits
Employees
Make
Decision
Chapter 6 - 22
Types of Leaders
Transactional
Transformational
Meeting Established Goals
Inspiring Employees
Clarifying Organizational Roles
Finding Creative Solutions
Securing Correct Resources
Promoting Success
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 23
Additional
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
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 24
Managing Change
Present
Situation
Identify What
Needs to Change
© Prentice Hall, 2007
Process
of Change
Identify Forces For
and Against Change
Select the Best
Approach
Excellence in Business, 3e
New
Situation
Reinforce and
Monitor Behavior
Chapter 6 - 25
Organizational Culture
Attitudes
About Work
Employee
Interactions
© Prentice Hall, 2007
Appropriate
Attire
Communication
Patterns
Excellence in Business, 3e
Business
Conduct
Chapter 6 - 26
The Controlling Function
Monitoring Progress
Resetting The Course
Correcting Deviations
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 27
The Quality Control Cycle
Set Strategic
Goals
1. Set
Standards
2. Measure
Performance
Reevaluate
Standards
Correct
Performance
4. Inadequate
Take Action
© Prentice Hall, 2007
3. Compare
To Standard
Excellence in Business, 3e
4. Adequate
No Action
Chapter 6 - 28
Interpersonal
Management
Skills
Technical
Administrative
Conceptual
Decision-Making
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 29
The Decision-Making Process
Recognize and
Define the Situation
Identify Options
Analyze Options
Select the Best
Option
Implement
the Decision
Monitor and
Evaluate the Results
© Prentice Hall, 2007
Excellence in Business, 3e
Chapter 6 - 30