Management Skills and Functions

### Managers' Roles Are Evolving

• Today's managers are collaborative, guiding, training, supporting, motivating, and coaching employees
• Managers today need to be skilled communicators, team players and globally prepared

### Empowering Employees

• Instead of providing step by step instructions, managers give employees the freedom to make their own informed decisions about how best to please customers.

### The Four Functions Of Management

• The four functions of management are: planning, organizing, leading, and controlling

Planning and Decision Making

• Vision is an encompassing explanation of why an organization exists and where it is trying to go
• Mission Statement outlines the fundamental purposes of the organization and includes:
  • The organization's self-concept
  • Its philosophy
  • Long-term survival needs
  • Customer needs
  • Social responsibility
  • Nature of the product or service

The Evolution of Management Roles

• Managers today are collaborative and focus on guiding, training, supporting, motivating, and coaching employees
• These managers need to possess excellent communication skills and be team players
• Managers need to be globally prepared and understand global markets
• Instead of giving direct instructions, modern managers empower employees to make independent decisions about how to effectively serve customers

Four Functions of Management

• Primary functions include planning, organizing, leading, and controlling
• Planning involves understanding the business environment and adapting to changing consumer preferences

Planning and Decision Making

• A vision provides a comprehensive explanation for the organization's existence and future direction
• A mission statement outlines the organization's core purpose, including its self-concept, philosophy, long-term survival needs, customer needs, social responsibility, and product or service nature
• Goals represent broad, long-term objectives that the organization aims to achieve
• Objectives are specific, short-term statements outlining the steps to attain organizational goals

Planning Process and Decision Making

• Planning addresses fundamental questions like the current situation and how to reach desired goals
• SWOT analysis is a tool used to analyze an organization's strengths, weaknesses, opportunities, and threats
• Strategic planning involves establishing long-term goals and developing strategies to achieve them
• Tactical planning focuses on shorter-term objectives and strategies to support the overall strategic plan
• Operational planning concentrates on day-to-day operations and procedures
• Contingency planning prepares for potential disruptions or unforeseen circumstances
• Decision making involves selecting from multiple alternatives and applying a rational decision-making model:
  • Define the situation
  • Gather necessary information
  • Develop alternative options
  • Evaluate alternatives
  • Choose the best alternative
  • Implement the selected option
  • Evaluate the effectiveness of the decision and follow up as needed

Organizing: Creating a Unified System

• Top management includes roles such as:
  • Chief Executive Officer (CEO): Introduces organizational change
  • Chief Operating Officer (COO): Implements CEO-initiated changes
  • Chief Financial Officer (CFO): Manages finances, plans budgets, collects funds
  • Chief Information Officer (CIO): Ensures the right information reaches the right people for decision-making
• Staffing involves hiring, motivating, and retaining the best individuals to achieve company objectives
• Staffing mistakes to avoid:
  • Don't hire based solely on someone else's recommendation
  • Don't prioritize appearances over qualifications
  • Don't place employees in mismatched roles
  • Don't neglect feedback and performance reviews
  • Don't promote individuals simply based on time served
  • Don't exploit or mistreat employees

Leading: Providing Continuous Vision and Values

• Leadership involves communicating a vision, rallying individuals around that vision, establishing corporate values, promoting ethical conduct, embracing change, and emphasizing accountability and responsibility
• Transparency involves presenting company data and information in a clear and accessible manner for all stakeholders
• Leadership styles include:
  • Autocratic leadership: Managers make decisions independently without consulting others
  • Participative or democratic leadership: Managers and employees collaborate in decision-making
  • Free-rein leadership: Managers define objectives, allowing employees to determine the method of accomplishment

Managing Knowledge

• Knowledge management focuses on identifying the right information, storing it in an easily accessible location, and disseminating it to everyone within the organization
• This approach aims to prevent redundant efforts and ensure efficient information flow
• Knowledge management fosters a culture of continuous learning and knowledge sharing within the organization