1

Chapter 2

Management Function and Styles

Learning Objectives
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 century.
?What is Management
Definition:
is the process of planning ,
organizing, leading, and controlling
people and other available resources to
accomplish organizational goals and
objectives.
?What is Management
Managers must make decisions and
make sure organizational tasks are
accomplished.
GOALS are the broad, long-term
accomplishments an organization
wishes to attain.
OBJECTIVES are specific, short-term
statements detailing how to achieve the
organizational goals.
 BONUS CASE 2-1
Panera Bread: Bread Lines Are Back at
Panera! (Video Case)
Functions of Management

Plan
Organize
Lead
Control
Planning
Planning is anticipating trends and
determining the best strategies and tactics
to achieve organizational goals and
objectives.
a. Today most companies have planning
teams monitor the environment.
b. Planning is called the key management
function because the other functions depend
on having a good plan.
Planning
Vision: is a forward-looking statement that
provides an encompassing explanation of why the
organization exists and where it is headed in the
future.
Mission Statement: is an outline of the
fundamental purposes of the organization.
Writing a Mission Statement
Address specific components
Involve all members
Goals and objectives
SMART objectives
Planning SWOT and PEST
 Micro- versus macro-environment
The external environment consists of:
i. The micro (specific) environment is comprised of
factors such as a firms customers, suppliers, and
competitors.
ii. The macro (general) environments include
factors that affect an organization indirectly.

P.E.S.T. Analysis: an analysis of outside

factors (political, economical, social, and
technological)
Forms of Planning: Strategic, Tactical,
Operational, and Contingency
a. Srategic planning: is setting long-term
goals for the company.
It is the process of determining the major
goals of the organization and the policies
and strategies needed for obtaining and
using resources
to achieve those goals.
Forms of Planning: Strategic, Tactical,
Operational, and Contingency
b. Tactical planning: is the development of
several objectives for each goal.
i. These are the short-term goals that must
be achieved to attain long-term goals.
ii. Detailed, short-term statements are
needed about what is to be done, who is to
do it, and how it is to be done.
Forms of Planning: Strategic, Tactical,
Operational, and Contingency
c. Operational planning is scheduling,
budgeting, and any other necessary plans
used to meet the tactical objectives.
i. Operational planning focuses on specific
supervisors and individual employees.
ii. The operational plan is the department
managers tool for daily operations.
Forms of Planning: Strategic, Tactical,
Operational, and Contingency
d. Contingency planning is planning for
what if scenarios and secondary plans in
case the original ones do not work.
i. An organization needs to have alternative
plans ready for environmental changes.
ii. Crisis planning, a part of contingency
planning, involves reacting to sudden
changes in the environment.
Organizing
ORGANIZING is designing the structure of the
organization and creating conditions and
systems in which everyone and everything work
together to achieve the organizations goals and
objectives.
a. Many organizations today are designed around
the customer.
b. Organizations must remain flexible and
adaptable to respond to customers changing
needs.
Organizing
Organization chart: is a visual diagram that
shows relationships among people and
divided the organizations work.
An organization chart includes top, middle,
and first-line or supervisory managers.
It also shows the SPAN OF CONTROL, the
optimal number of subordinates (employees)
a manager supervises; also called span of
management.
Levels of management

Top management
Middle management
Supervisory/First-line management
Organizing
Tasks and Skills at Different Management
Levels
Categories of skills
Technical, Human, and Conceptual
Organizational structure
Line-and-staff
Matrix
Organizing
Departmentalization: is an important
element of
organizational structure
Functional, Product, Customer,
Geographic, Process, Hybrid
Staffing: recruiting, hiring, motivating, and
retaining the best people available to
accomplish the companys objectives
Leading
The four keys to leadership:
1. Communicate a vision and rallying
others around that vision.
2. Establish company values.
3. Promote corporate ethics.
4. Embrace change.
Controlling
Five steps of controlling:
1. Establishing clear performance standards.
2. Monitoring and recording actual performance.
3. Comparing results against plans and
standards.
4. Communicating results and deviations to the
employees involved.
5. Taking corrective action when needed and
providing positive feedback.
?What Else do Managers do
Tasks vary greatly with the type of
industry
Managers establish the ethical
framework
Work-life balance
Total Quality Management (TQM)
Management Styles
Autocratic leadership
Works best with sports teams
Participative leadership
High employee job satisfaction
Free-rein Leadership
Used when job is well known
 BONUS CASE 2-4
The Supermarket Manager
Management theories
Theory X McGregor
Average person dislikes and will avoid work
Manager is highly involved and closely watches
people
Theory Y McGregor
Most people like work and are committed
More relaxed managerial atmosphere
Theory Z Ouchi
Combines Japanese and American styles
Focus on trust and intimacy within the group
Management Challenges
Unique challenges
Constant change
Global marketplace
Acceleration of technological change
Increased diversity
Downsizing or Rightsizing