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Business in Action 8th Edition Chapter 7: Management Roles, Functions, and Skills

Management involves planning, organizing, leading, and controlling organizational processes to achieve goals. Managers fulfill interpersonal, informational, and decisional roles. They gather internal and external information, communicate with stakeholders, and make routine and strategic decisions. The four basic management functions are planning, organizing, leading, and controlling. Planning establishes objectives and strategies. Organizing sets organizational structure and assigns roles. Leading guides and motivates employees. Controlling measures performance and ensures goals are met.

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269 views4 pages

Business in Action 8th Edition Chapter 7: Management Roles, Functions, and Skills

Management involves planning, organizing, leading, and controlling organizational processes to achieve goals. Managers fulfill interpersonal, informational, and decisional roles. They gather internal and external information, communicate with stakeholders, and make routine and strategic decisions. The four basic management functions are planning, organizing, leading, and controlling. Planning establishes objectives and strategies. Organizing sets organizational structure and assigns roles. Leading guides and motivates employees. Controlling measures performance and ensures goals are met.

Uploaded by

Fatima Majidli
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Management is the process of planning, organizing, leading, and controlling to meet

organizational goals.

THE ROLES OF MANAGEMENT (MANAGERIAL ROLES)

INTERPERSONAL ROLES
 Providing leadership to employees, building relationships, and acting as a liaison between groups
and individuals both inside and outside the company (such as suppliers, government agencies,
consumers, labor unions, and community leaders).

INFORMATIONAL ROLES
 Gathering information from sources both inside and outside an organization.
 The higher up they are, the more they rely on subordinates to collect, analyze, and summarize
information
 Managers also communicate information to employees, other managers, and other stakeholders.
This communication involves virtually every form of information, from technical and
administrative information to motivational pep talks to strategic planning sessions.
 The smart use of social media is helping managers learn more from employees and customers and
communicate with stakeholder groups more effectively.

DECISIONAL ROLES
 Some decisions are routine, such as choosing which of several job candidates to hire or setting the
prices of new products.
 Other decisions, however, might occur only once or twice in a manager’s career, such as
responding to a product-tampering crisis or the threat of a hostile takeover.

BASIC MANAGEMENT FUNCTIONS

THE PLANNING FUNCTION


Planning is establishing objectives and goals for an organization and determining the best ways to
accomplish them.
Strategic plans are plans that establish the actions and the resource allocation required to accomplish
strategic goals; they are usually defined for periods of two to five years and developed by top managers.

The strategic planning process consists of six interrelated steps:


 defining the organization’s mission, vision, and values
 performing a SWOT analysis
 developing forecasts
 analyzing the competition
 establishing goals and objectives
 developing action plans

DEFINING THE MISSION, VISION, AND VALUES


Mission statement is a brief statement of why an organization exists; in other words, what the
organization aims to accomplish for customers, investors, and other stakeholders.
Vision statement is a brief and inspirational expression of what a company aspires to be. (inspires
employees with clear sense of purpose)
Values statement is a brief articulation of the principles that guide a company’s decisions and behaviors
and establish expectations for everyone in the organization.

ASSESSING STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS


 SWOT analysis

DEVELOPING FORECASTS
 to predict not only what will (or will not) occur, but when it will occur and how it will affect their
business
- quantitative forecasts are typically based on historical data or tests and often involve complex
statistical computations
- qualitative forecasts are based more on intuitive judgments

ANALYSING THE COMPETITION


 Performing a SWOT analysis on each of your major competitors is a good first step.

ESTABLISHING GOALS AND OBJECTIVES


Goal is a broad, long-range target or aim.
Objective is a specific, short-range target or aim.
 make their goals and objectives “SMART,” as in specific, measurable, attainable, relevant, and
time limited.

DEVELOPING ACTION PLANS


 with strategic goals and objectives in place, the next step is to develop a plan to reach them
 the overall strategic plan might be supported at the next level down by a research and
development plan, a manufacturing plan, and a marketing plan, describing how each functional
area will help the company reach its strategic goals and objectives

THE ORGANIZING FUNCTION


Organizing is the process of arranging resources to carry out the organization’s plans.
Management pyramid is an organizational structure divided into top, middle, and first-line management.

TOP MANAGERS
Top managers are those at the highest level of the organization’s management hierarchy; they are
responsible for setting strategic goals, and they have the most power and responsibility in the
organization. (the term executive applies to
top managers)
 top managers establish the structure for the organization, and they select the people who fill the
upper-level positions.

MIDDLE MANAGERS
Middle managers are those in the middle of the management hierarchy; they develop plans to implement
the goals of top managers and coordinate the work of first-line managers.
 middle managers play the essential role of translating strategic goals and objectives into the
actions that allow the company to meet those targets. Although they may not do the actual day-to-
day work
FIRST-LINE MANAGERS
First-line managers are those at the lowest level of the management hierarchy; they supervise the
operating employees and implement the plans set at the higher management levels.
 deal with any friction that exists between employees and management.

THE LEADING FUNCTION


Leading is the process of guiding and motivating people to work toward organizational goals.
 Management and leadership are not the same thing: view management as the rational,
intellectual, and practical side of guiding an organization and view leadership as the inspirational,
visionary, and emotional side.

TYPES OF INTELLIGENCE IN LEADERS:


• Cognitive intelligence involves reasoning, problem solving, memorization, and other rational
skills.
• Emotional intelligence is a measure of a person’s awareness of and ability to manage his or her
own emotions.
• Social intelligence involves looking outward to understand the dynamics of social situations and
the emotions of other people, in addition to your own.

DEVELOPING AN EFFECTIVE LEADERSHIP STYLE:


Autocratic leaders are leaders who do not involve others in decision making (has bad reputation)
Democratic leaders are leaders who delegate authority and involve employees in decision making.
Participative management is a philosophy of allowing employees to take part in planning and decision
making.
Laissez-faire leaders are leaders who leave most decisions up to employees, particularly decisions
concerning day-to-day matters.
Employee empowerment is granting decision-making and problem-solving authorities to employees so
they can act without getting approval from management.

COACHING AND MENTORING:


Coaching is helping employees reach their highest potential by meeting with them, discussing problems
that hinder their ability to work effectively, and offering suggestions and encouragement to overcome
these problems.
Mentoring is a process in which experienced managers guide less-experienced colleagues in nuances of
office politics, serving as role models for appropriate business behavior and helping to negotiate the
corporate structure. (is based on long-term relationships between senior and junior members of an
organization)

MANAGING CHANGE:
1. Identify everything that needs to change
2. Identify the forces acting for and against a change
3. Choose the approach best suited to the situation
4. Reinforce changed behavior and monitor continued progress

BUILDING A POSITIVE ORGANIZATIONAL CULTURE


Organizational culture is a set of shared values and norms that support the management system and that
guide management and employee behavior.
THE CONTROLLING FUNCTION
Controlling is the process of measuring progress against goals and objectives and correcting deviations if
results are not as expected.

THE CONTROL CYCLE


4 Steps:
1. Establishing performance standards based on the strategic plan
2. Measuring performance
3. Comparing performance to standards
4. Responding as needed

Establishing performance standards based on the strategic plan:


Standards are criteria against which performance is measured
 middle and first-line managers set standards based on the overall organizational standards of
performance.
 common approach to setting standards is benchmarking
Benchmarking is collecting and comparing process and performance data from other companies.
Quality is a measure of how closely a product conforms to predetermined standards and customer
expectations. (performance variable)

Measuring performance and Responding as needed


Balanced scorecard is a method of monitoring the performance from four perspectives: finances,
operations, customer
relationships, and the growth and development of employees and intellectual property.

Crisis management is procedures and systems for minimizing the harm that might result from some
unusually threatening situations.

ESSENTIAL MANAGEMENT SKILLS

Interpersonal skills are skills required to understand other people and to interact effectively with them.
Technical skills are the ability and knowledge to perform the mechanics of a particular job.
Administrative skills are technical skills in information gathering, data analysis, planning, organizing,
and other aspects of managerial work.
Conceptual skills are the ability to understand the relationship of parts to the whole. (e.g. the accounting
system is also part of an overall business system and needs to integrate seamlessly with sales, purchasing,
production, and other functions)
Decision-making skills are the ability to identify a decision situation, analyze the problem, weigh the
alternatives, choose an alternative, implement it, and evaluate the results.

STAGES OF DECISION-MAKING PROCESS:


1. Recognize and define the problem or opportunity
2. Identify and develop options
3. Analyze the options
4. Select the best option
5. Implement the decision
6. Monitor the results

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