Learning Objectives Chapter 6

1
Learning Objectives Chapter 6

• Define the four basic management functions.
• Outline the seven tasks of the strategic planning
  process.
• Explain the purpose of a mission statement.
• List the benefits of setting long-term goals and
  objectives.
• Cite three leadership styles and explain why no
  one style is best.
• Clarify how total quality management (TQM) is
  changing the way organizations are managed.
• Identify and explain the three types of
  managerial skills.
• Highlight the seven habits of highly effective
  e-managers.

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Three Management Roles
INTERPERSONAL
INFORMATIONAL
DECISIONAL
3
The Process of Management
Organizing
Leading
Controlling
Planning
4
Planning Function

• Develop strategies.
• Establish goals and objectives.
• Move goals and strategies into action plans.

5
Strategic Plans

• Eight major areas
• Market standing
• Innovation
• Human resources
• Financial resources
• Physical resources
• Productivity
• Social responsibility
• Financial performance

6
Strategic Plans Answers

• Where are we going?
• What is the environment?
• How do we get there?

7
Strategic Planning Process

• Develop Vision
• Write Mission Statement
• Perform SWOT Analysis
• Develop Forecasts
• Analyze Competition
• Establish Goals and Objectives
• Develop Action Plans

8
Functions of a Mission Statement

• Bring clarity of focus, purpose.
• Help employees understand their roles.
• Inspire and guide employees.
• Must be congruent with the organizations core
  values.

9
Two Categories of Managerial Forecasts
QUANTITATIVE
QUALITATIVE
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Three Competitive Strategies
Differentiation
Cost Leadership
Focus
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Two Key Tasks in the Planning Process

• Establish Goals Broad, long range accomplishes
  the organization is striving for

• Establish Objectives Specific, short range
  target relating to goals which must be

• Specific
• Measurable
• Relevant

• Challenging
• Attainable
• Time Sensitive

12
Action Plans

• Tactical Plans Layout actions and the allocation
  of resources to achieve specific short term
  objectives.
• Operational Plans Layout actions and the
  allocation of resources to achieve the objectives
  of the tactical plans

13
The Management Pyramid
President, CEO, VP
Controller, marketing manager, sales manager
Supervisor, foreman
14
Leaders and High EQ Characteristics

• Self-awareness
• Self-regulation
• Motivation
• Empathy
• Social skill

15
Three Broad Categories ofLeadership Styles

• Autocratic Make decisions without consulting
  others.
• Democratic Delegate authority and involve
  employees.
• Laissez-Faire Act as consultant, encourage
  employees to share ideas, insights and opinions.

16
Continuum of Leadership Behavior
Boss-Centered Leadership Employee-Centered
Leadership
Manager makes decision, announces it.
Manager sells decision.
Manager presents ideas, invites questions.
Manager presents tentative decision subject to
change.
Manager presents problems, gets suggestions,
makes decisions.
Manager defines limits, asks group to make
decision.
Manager permits workers to function within
defined limits.
Source Business Today, Ninth Edition, Mescon,
Bovee Thill, Prentice Hall Publishers
17
The Control Cycle
1. Set Standards
2. Measure Performance
Set strategic goals
Correct performance
Reevaluate standards
5. If inadequate take corrective action
3. Compare performance with standards
4. If adequate, make no change
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Total Quality Management

• Create constancy of purpose for the improvement
  of goods and services.
• Adopt a new philosophy to reject mistakes and
  negativism.
• Cases dependence on mass inspection.
• End the practice of awarding business on price
  alone.
• Improve constantly.
• Institute training.
• Institute leadership.

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Total Quality Management

• Drive out fear.
• Break down barriers between units.
• Eliminate slogans, exhortations, and targets.
• Eliminate numerical quotas.
• Remove barriers to pride in work.
• Institute a vigorous program of education and
  retraining.
• Take action to accomplish transformation

20
TQM Focus

• Four Key Elements
• Employee involvement includes team building.
• Customer focus means getting feedback and acting
  on that feedback to better serve customers.
• Benchmarking.
• Continuous improvement.

21
Managerial Skills
INTERPERSONAL
TECHNICAL
CONCEPTUAL