The Functions of

Management
 Learning Objectives
1. Define the four basic management functions
2. Outline the tasks involved in the strategic planning
process
3. Explain the purpose of a mission statement
4. Discuss the benefits of SWOT analysis
5. Explain the importance of setting long-term goals
and objectives
6. Cite three leadership styles and explain why no
one style is best
7. Identify and explain important types of managerial
skills
8. Summarize the six steps involved in the decision-
making process
 Management
• Process of Managing People/employees
• Good Management Skills
s of
s
Good Manager
e r
proc othe
t the le and the
men peop hieve
e c
a nag nating to a ation
m rdi niz
• o o es ga
• Features of Good Manager c
s ourc an or
re ls of
• Effectively manage employees goa

• Resources: Administrative & Professional

Good/Bed Management
 Managers vs Leaders
r b r e d ?
b o r n o
• Strong Leader = e r s –
Le a d
Successful team?!

Is a good manager automatically a

good leader?
What is the difference between
leadership and management?

• Strong Manager =
Successful team?!
• Close your eyes and imagine the best
leader

• Who is he/she? − politician, general

director or military service?
 Name some leaders
Who are they? What did they do?
 Leadership Skills

"Leadership is a function of knowing

yourself, having a vision that is well
communicated, building trust
among colleagues, and taking
effective action to realize your own
leadership potential."
Prof. Warren Bennis
 Women, Men, and
Leadership
• Do women and men exhibit different
leadership behavior?
– Women: nurturing and caring
– Men: competitive and aggressive

Results of their socialization?

 Women, Men, and
Leadership
(Cont.)
• Limited empirical evidence of differences
between men and women
– Women described themselves
• Sharing power
• Encouraging subordinates self-worth
• Sharing information
– Men described themselves
• Using position authority
• Relying on rewards and punishments
 Managers vs Leaders
1. The leader is an innovator and the manager
is an administrator
2. The leader ensures trust and results whereas
the manager represents control and authority
3. A leader asks questions about what and why,
a manager questions in how and when
4. Leaders give solutions while the managers
create strategies
5. Leaders make followers and the managers
look for subordinates
 Characteristics
of Effective Leaders
• Understanding • Stability
• Initiative • Cooperation
• Dependability • Honesty
• Judgment • Courage
• Objectivity • Communication
• Confidence • Intelligence
 Tips for Successful Leadership
1. Walk the talk. Make your actions consistent with your words.
2. Be truthful, fair, and respectful, and honor confidences.
3. Demonstrate a vision and values worth following.
4. Co-workers make mistakes. So do you. Admit to them and learn from them.
5. Be open to what others have to offer. Ask questions and take time to listen to co-workers.
6. Know your weaknesses, so that you can build a team to make up for them.
7. All work and no fun can reduce productivity.
8. Help workers do their best by encouraging them to grow and learn.
9. Never publicly blame anyone but yourself.
10. Stay positive and expect it of your people. Negativity leads downhill fast.
11. Involve people in decisions—especially those regarding change.
12. Be open to new ways of doing things. Embrace change—it’s inevitable.
13. Recognize and celebrate individual and team successes, both big and not so big.
14. Embrace and benefit from diversity.
15. Empower your workers. They will have greater self-respect, responsibility, and accountability.
16. Take your work, but not yourself, seriously.
 Leadership Skills
Leadership Theory
Situational/contingency Leadership (Hersey-Blanchard, 1970/80)
Leadership style changes according to the 'situation‘ and in response to the
individuals being managed – their competency and motivation

Competency Low competence Some High competence High competence

competence

Low Variable Variable High

Motivation commitment/ commitment/ commitment/ commitment/
Unable and Unable but Able but Able and willing
unwilling or willing or unwilling or or motivated
insecure motivated insecure
Leadership style DIRECTIVE COACHING SUPPORTIVE DELEGATORY
(Telling) (Selling) (Participating) (Observing)
კარგი ხელმძღვანელი - წარმატების მ
არტივი ფორმულა
• აიყვანეთ სამსახურში მხოლოდ საუკეთესო კადრები
• ყურადღება მიაქციეთ, რომ სამუშაოს შესრულება
დაევალოს შესაბამის ადამინს
• დეტალურად აუხსენით ხელქვეითებს თუ რა უნდა გააკეთონ
• აუხსენით რატომ უნდა გააკეთონ
• სამუშაო შეასრულოს მხოლოდ მან ვისაც ეს დაევალა
• იზრუნეთ თანამშრომლების ცოდნის გაღრმავებაზე
• ისწავლეთ მოსმენა
• დაეხმარეთ თანამშრომელს რომ თავი იგრძნოს
თვითდარწმუნებულად
• ყოველთვის აკონტროლეთ სამუშაოს მიმდინარეობა
• მადლობა გადაუხადეთ თქვენს თანამშრომელს საჯაროდ და
პირადად
Functions of Management

Planning Organizing

Controlling
Leading
 Functions of
Management
1. Planning—establishing objectives and goals for the
organization and translating them into action plans;
2. Organizing—arranging resources to carry out the
organization’s plans
3. Leading—influencing and motivating people to work
effectively and willingly toward company goals
4. Controlling—monitoring progress toward organizational
goals, resetting the course if goals or objectives change in
response to shifting conditions, and correcting deviations
if goals or objectives are not being attained.
 ROLE AND WORK OF MANAGERS
What do managers do?
1) Planning – involves analyzing information, setting
goals, and making decisions about what needs to be
done.
2) Organizing – identifying and arranging the work and
resources needed to achieve the goals that have been
set.
3) Staffing – obtain, prepare and compensate the
employees of a business.
4) Implementing – direct and lead people to accomplish
the planned work of the organization.
5) Controlling – determines to what extent the business is
accomplishing the goals it set out to reach.
Roles of Management

Interpersonal
Interpersonal

Informational
Informational

Decisional
Decisional
 Interpersonal Management
Skills
Technical

Administrative

Conceptual

Decision-Making
 Important types of
Managerial Skills
Managers use:
•Interpersonal skills to communicate with other people,
work effectively with them, and lead them
•Technical skills to perform the mechanics of a particular
job;
•Administrative skills to manage an organization efficiently
•Conceptual skills to see the organization as a whole, to see
it in the context of its environment, and to understand how
the various parts interrelate
•Decision-making skills to ensure that the best decisions
are made.
 Steps involved in a decision-
making process

 Recognizing that a problem or opportunity exists;

 Identify and develop options using a variety of
brainstorming techniques;
 Once the options have been put forth, they analyze
the options using appropriate criteria;
 Then they select the best option;
 Implement the decision;
 Monitor the results, making changes as needed.
The Decision-Making Process

Recognizeand
Recognize and
IdentifyOptions
Identify Options AnalyzeOptions
Analyze Options
Definethe
Define theSituation
Situation

Selectthe
Select theBest
Best Implement
Implement Monitorand
Monitor and
Option
Option theDecision
the Decision Evaluatethe
Evaluate theResults
Results
The Planning Function
Develop Strategies
for Success

Set Goals
and Objectives

Develop
Action Plans
Strategic Planning Process.
 The strategic planning process - begins - a clear vision for
the company’s future;
 This vision - translated into a mission statement so it can
be shared with all members of the organization;
 Next, managers assess the company’s strengths,
weaknesses, opportunities, and threats;
 Develop forecasts about future trends that affect their
industry and products;
 Analyze the competition—paying
competition close attention to their
strengths and weaknesses so they can use this information
to gain a competitive edge;
 Managers use this information to establish company goals
and objectives;
 Finally they translate these goals and objectives into action
plans.
 Strategic Planning Process
1
Develop
A Vision
7 2
Develop Write Mission
Action Plans Statement

6 3
Set Goals Perform
And Objectives SWOT Analysis

5 4
Analyze Develop
Competition Forecasts
Clarity of Vision
Development

Communication

Execution

Modification
 Mission Statement

Objectives Goals Philosophies

Product Primary Survival, Growth,

or Service Market Profitability

Managerial Level of Social

Philosophy Quality Responsibility
 Strengths Weaknesses

SWOT
Analysis

Opportunities Threats
 SWOT Analysis
• Strengths – positive internal factors that contribute to a
company’s success
– Core competence – a bundle of skills and
technologies that enable a company to provide a
particular benefit to customers
– Sets the company apart from its competition
• Weaknesses – negative internal factors that inhibit a
company’s success
• Opportunities – positive external factors that might enhance
a firm’s ability to achieve its objectives
• Threats – negative external factors that could inhibit a firms’
ability to achieve its objectives
 Managerial Forecasts

Qualitative Quantitative
Forecasting Forecasting

Intuitive Consumer Historical Statistical

Judgments Research Data Computations
 Develop forecasts
Managers must make a number of educated assumptions about future
trends and events and modify those assumptions once new information
becomes available.
•Quantitative forecasts – typically based on historical data
or tests and which involve complex statistical computations
(example: statistically analyzing the cycles of economic
growth and recession over several decades to predict when
the economy will take a downward turn)
•Qualitative forecasts – based on intuitive judgment or
consumer research (example: making predictions about
sales of a new product on the basis of experience and
consumer responses to a survey)
Competitive Analysis

Differentiation

Cost Leadership

Focus
 Competitive Strategies:

– Differentiation – developing a level of service,

product image, unique product feature, or new
technologies that distinguish a company’s
product from a competitor’s product
– Cost leadership – aim to become the low-cost
leader in the industry by producing or selling
products more efficiently and economically than
competitors.
– Focus – companies concentrate on a specific
regional market or consumer group.
 Company Goals and
Objectives
Boosts Motivation

Goals Objectives
Objectives
Guides Activity

Sets Standards
Broad,
Broad,Long-Range
Long-Range Specific,
Specific,Short-Range
Short-Range
Target
TargetororAim
Aim Target
TargetororAim
Aim

Clarifies Expectations
 Company Goals and
Objectives
• Goals and objectives establish long- and short-
range targets that help managers fulfill the
company’s mission;

• Setting appropriate goals increases employee

motivation, establishes standards by which
individual and group performance can be
measured, guides employee activity, and clarifies
management’s expectations.
 One-Three Tactical Plans Middle
Years Managers

Management
Time Frame

Less Than First-Line

a Year Operational Plans Managers
 Develop action plans

• Tactical plans lay out the actions and the allocation of

resources necessary to achieve specific, short-term
objectives that support the company’s broader strategic plan
– Focus on departmental issues
– Define short-term results necessary to achieve
strategic goals

• Operational plans designate the actions and resources

required to achieve the objectives of tactical plans
– Focus on accomplishing a firm’s specific objectives
– Define actions for less than one year
Crisis Management

Minimize Maintain
Damage Operations

Contingency Open
Plans Communication
 Ethical Considerations:

??? When an organization learns about a threat that

could place the safety of its workers and its customers
at risk, is management obligated to immediately inform
these parties of the threat?
 Ethical Considerations:
• When an organization learns about a threat that could place the safety of its workers
and its customers at risk, is management obligated to immediately inform these
parties of the threat?
Management is obligated to inform workers and customers of
safety threats for several reasons:
1. First, inattention to a safety risk can leave the company open to
future lawsuits should it be discovered that the organization
knew about the problems but did nothing to abate them;
2. Second, the company risks a public relations disaster should
the public gain knowledge of something they would consider a
“cover-up.”
3. Finally, the organization should alert its customers and
workers because it is, simply, the ethical thing to do.
 Homework Assignment…
• Identify companies about which you are aware that you had to deal
with a crisis - how the company you mentioned dealt with the crisis:
Would you do something differently if you were in a management
position in the company?

• What other examples of crisis management can you come up with?

How effective was the crisis management, and how did the public
respond?

• Research this topic on the Internet, analyze it and submit it as a

homework assignment – to understand how effective crisis
management can lesson the impact of the crisis if handled well.
The Organizing Function
Employee Activities

Facilities and Equipment

Decision Making

Supervision

Resource Distribution
The Management Pyramid

Top
Managers

Middle
Managers

First-line
Managers
The Management Pyramid

President, CEO, VP •Make long-range plans

•Establish policies
Top •Represent the company
Managers

Middle
Managers

First-line
Managers
The Management Pyramid

Controller, Marketing •Implement goals

Manager, Sales Manager •Make decisions
Top •Direct first-line managers
Managers

Middle
Managers

First-line
Managers
The Management Pyramid

Office Manager, •Implement plans

Supervisor, Foreman, •Oversee workers
Department Head Top •Assist middle managers
Managers

Middle
Managers

First-line
Managers
 The Leading Function
Managers Leaders

Position Power Personal Power

Rational Intellectual Practical Inspirational Visionary Emotional

Leadership Qualities

Intelligence Quotient (IQ)

Emotional Quotient (EQ)

Social Quotient (SQ)

Change Quotient (CQ)

 Leadership Styles

Autocratic
Autocratic Democratic
Democratic

Laissez-Faire
Laissez-Faire Contingency
Contingency
 Adopting an effective
leadership style
Leadership style – the way a manager uses authority to lead others
•Autocratic leaders – make decisions without consulting others
•Democratic leaders:
Delegate authority and involve employees in decision-making
Participative management (or open book) – focuses on sharing
information at all organizational levels
•Laissez-faire leaders – take the role of consultant, encouraging
employees ideas
•Contingency leadership
a. No single leadership style works all of the times
b. Effective leaders adapt their leadership style to current
business circumstances
 Discussion…
• Share your experiences and impressions

• Styles of leadership can be effective in different areas

(For example, in the military, autocratic leading is
effective, whereas that same style might not work as
well in a pizza parlor)
Leader Behavior Continuum
Management-Centered Employee-Centered
Leadership Leadership

Authority Freedom
of Manager For Workers

Manager Manager
Manager Manager Manager Manager Employees
Makes Sets
Makes “Sells” Presents Presents Make
Tentative Decision
Decision Decision Ideas Problem Decision
Decision Limits
 Types of Leaders
Transactional Transformational

Meeting Established Goals Inspiring Employees

Clarifying Organizational Roles Finding Creative Solutions

Securing Correct Resources Promoting Success

 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

 Managing Change

Present Process New

Situation of Change Situation

Identify What Identify Forces For Select the Best Reinforce and
Needs to Change and Against Change Approach Monitor Behavior
Organizational Culture

Attitudes
Attitudes Appropriate
Appropriate
About
AboutWork
Work Attire
Attire

Employee
Employee Communication
Communication Business
Business
Interactions
Interactions Patterns
Patterns Conduct
Conduct
 The Controlling Function

Monitoring Progress

Resetting The Course

Correcting Deviations
 The Quality Control Cycle
Set Strategic
Goals

1. Set 2. Measure
Standards Performance

Reevaluate Correct
Standards Performance

4. Inadequate 3. Compare 4. Adequate

Take Action To Standard No Action
 Revision Unit

???