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Ch (2):

MANAGEMENT:
FUNCTIONS AND
STYLES

LEARNING

objectives

After reading this chapter ,you should be able to :


1. Define management
2. Explain the four functions of management.
3. Understand the use of three tools : SMART ,SWOT, and PEST analysis .
4. Understand the basics of organizational structure .
5. Describe various management styles and know when they are
appropriate .
6. Explain the challenges for management in the new future .

Section: 1- WHAT IS MANAGEMENT


Section Outline:Function of Management: Planning.
Organizing.
Leading.
Controlling
What Else Do Managers Do?
1. Management: The process of Planning, Organizing, Leading and controlling
people and other available resources to accomplish organizational goals and
objectives.
2. Function of Management :A. Planning.
Anticipating trends and determines the best strategies and tactics to
achieve organizational goals and objectives
B. Organizing.
Designing the structure of the organization and creating conditions and
systems in which everyone and everything work together to achieve the
organization's goals and objectives.
C. Leading.
Creating a vision for the organization and communicating. Guiding
training, coaching and motivating other to work effectively to achieve the
organization's goals and objectives.
empower : Giving employees as much freedom as possible to become
self-directed and self-motivated .
D. Controlling
Establishing clear standers to determine whether an organization is
progressing towards its goals and objectives ,rewarding people for doing a
good job , and taking corrective action if they are not .

A. Planning
- The first managerial function involves setting the organizational vision ,
mission ,goals and objectives
i. Vision :- A forward-looking statement that provides an encompassing explanation of
why the organization exists and where it is headed in the future.
ii. Mission statement :- An outline of the fundamental purposes of an organization.
- A meaningful mission should address the following components :1. Customer needs.
2. Company philosophy and goals.
3. The organization's self-concept .
4. Long-term survival.
5. The nature of the company's products or services .
6. Social responsibility.
7. Care for employees.
THE MISSION STATEMENT BECOMES THE SETTING SPECIFIC :iii. Goals :- The board, long-term accomplishments an organization wishes to attain.
iv. Objectives :- Specific, short-term statements detailing how to achieve the organization's
goals.

GUIDELINES FOR SETTING S.M.A.R.T. OBJECTIVES:-

Specific :- Rather than saying "increase sales"Say "increase sales by 10%"


2. Measurable:- "Better customer service" Hard to measure. But
1.

"Increase customer service survey by 1 point in 6 months" is very


measurable.
3. Achievable:- Are the objectives achievable and attainable
4.

Realistic :-

Can the company achieve the goal with the resources

available.
5.

Time :-

What is the deadline for achieving goals?


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SWOT :- An analysis of the organization's Strengths , Weaknesses ,Opportunities,


and Threats .
Potential Internal STRENGTHS
Core competencies in key areas
An acknowledged market leader
Well-conceived functional are
strategies.
Proven management.
Cost advantages.
Better advertising campaigns.

Potential External OPPORTUNITIES


Ability to serve additional
customer groups.
Expansions of product lines .
Ability to transfer
skills/technology to new products
Complacency among rival firms.
Ability to grow due to increase in
market demand .

Potential Internal WEAKNESSES

No clear strategic direction.


Obsolete facilities.
Supper profitability.
Weak market image .
Too narrow a product line.

Potential External THREATS


Entry of lower-cost foreign
competitors.
Rising sales of substitute
products.
Slower market growth.
Costly regulatory.
Changing buyer needs and
tests

v. PEST analysis :- An analysis of outside factors that could affect a business :


(PEST stand for)

Political , Economic , Social and Technological .

- A Tool specifically useful in understanding and analyzing the Macro or


general environments .
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vi. Form of Planning:A. Strategic planning: - Setting long-term goals for the company.
B. Tactical planning : - The development of several objective for each. There
are the short-term goals that must be achieved to attain a long-term goals.
C. Operational planning :- Scheduling budgeting and any other necessary
plans used to meet the tactical objectives.
D. Contingency planning :- Planning for "what if " scenarios and secondary
plans in case the original ones do not work

B. Organizing
- After managers have planned course of action they must organize the
firm to accomplish their goals .
- Organizing means allocating resources (such as funds ) , assigning tasks
and establishing procedures for accomplishing the organizational
objectives .

i. Organizing chart :Visual diagram that shows relationships among people and divides the
organization's work.

ii. Span of control :-

) )

The optimal number of subordinates (employees) a manager


supervises.

iii. Levels of management :1. Top management :It is the highest level of management and consists of the president and
other key company executives.

2. Middle management :General managers ,division managers , district managers and plant
managers or supervisors .

3. 3- Supervisory (First line) :Those who are directly responsible for supervising workers and
evaluating their daily performance .

iv. Tasks and Skills at Different Levels of Management


Top
Managers

Middle
Managers

Frist-line
Managers

Technical
Skills

Human Relation
Skills

Technical
Skills

Technical
Skills

Conceptual
Skills

Human Relation
Skills

Human Relation
Skills

Conceptual
Skills

Conceptual
Skills

1. Technical Skills :The skills required to do a specific job


2. Human Relations Skills :The ability to communicate and work with other
3. Conceptual Skills :Ability to see "big" picture ( the Organization as a whole and
relation among the its various parts )
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v. Ways To Departmentalize :1. By Product :Marketing


Manager

Trade books

College Texts

Technical
books

2. By Function :President

Production

Marketing

Finance

3. By Customer Gruop :President

Consumers

Commercial user

Manufacturers

4. By Geographic location :Vice President


international
Operation

Canadian

Japanese

European

Division

Division

Division

5. By Process :Production
Manager

Cutters

Dyers

Switchers

vi. Staffing :Recruiting ,hiring , motivating ,and retaining the best people
available to accomplish the company's objectives .

C. Leading
A leader is the person who can provide guidance to employee through
establishment of :1. Communicate a vision and rally others around that vision .
2. Establish company values.
3. Promote corporate ethics.
4. Embrace change.

D.Controlling
Measuring performance relative to the planned objectives and standers by:1. Establishing clear performance standers.
2. Monitoring and recording actual performance.
3. Comparing result against plane and standards.
4. Communicating results and deviations to the employee involved.
5. Taking corrective action when needed and providing positive feedback .

1
Establishing
clear
performance

Monitoring
&recording
performance

Comparing
result
against
standards

Communicating
results

If needed
Taking
corrective
action

Are Standers
Realistic ?

FEEDBACK

E. What Else Do Managers Do?


i. Work Life balance :The Idea that an individual should have control over interactions between
Work and Home .

ii. Total quality management (TQM) :A management strategy where quality is reviewed at every phase of the
production process, even in service organization.

Section : 2 MANAGEMENT STYLES


Section Outline:Management Styles :

Autocratic Leadership.
Participative Leadership.
Free Rein Leadership.
Theory X.
Theory Y.
Theory Z.

1.

Autocratic Leadership .

Making managerial decisions without consulting others.

2. Participative Leadership .
Managers and employees work together to make decisions .

3. Free Rein Leadership .


Managers setting objectives and then employees being relatively free to do
whatever it take to accomplish that objective.

4. Theory X. Theory Y. Theory Z.


Management theorist "Douglas McGregor " observed that manger
attitudes about employees usually fall into one of two categories Are
theory X theory Y. And then developed by William Ouchi anther theory
is theory Z

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Theory X

Theory Y

Theory Z

Managers believe The


average person Dislikes
work , Has relatively
little mbition,Wishes
to avoid responsibility ,
So workers must be
forcefully directed or
threatened with
punishment .Primary
motivators are fear and
money

Managers believe The


most people Like work
Naturally work toward
goals to which they
committed
and Are capable of
using imagination and
creativity to solve
problems .Each worker
is stimulated by rewards
unique to that worker

Management theory
that focuses on trust
and intimacy within
the work group

1. Employees dislike
work and will try to
avoid it.
2. Employees prefer to
be controlled and
directed .
3. Employees seek
security ,not
responsibility .
4. Employees must be
intimidated by
managers to perform.
5. Employees are
motivated by
financial rewards.

1. Employees view work


as a natural part of
life.
2. Employees prefer
limited control and
direction .
3. Employees will seek
responsibility under
proper work
conditions.
4. Employees perform
better in work
environments that
are no
intimidating
5. Employees are
motivated by many
different needs .

1. Employees
involvement is the
key to increased
productivity.
2. Employee control is
implied and informal.
3. Employees prefer to
share responsibility
and decision making.
4. Employee perform
better in
environments that
foster trust and
cooperation.
5. Employees need
guaranteed
employment and will
accept slow
evaluations and
promotions .

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Section : 3 MANAGEMENT CHALLENGES


Section Outline:Management Challenges :1.
2.
3.
4.
5.
6.

Intense management scrutiny , caused by business scandals .


Constant change in business.
Global competition.
Technological changes.
Elimination of managerial and other jobs due to downsizing.
The need to get things done by working with new generations of
employees with different attitude .

Downsizing ( Rightsizing ) :Elimination of many management jobs , and other types of jobs , by using
cost-cutting methods and technology such as computer.

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