Business in Action Chapter 7: Management (PDF)

Business in Action: Thriving in the Digital Enterprise Tenth Edition, Global Edition Chapter 7 Management Roles, Functions, and Skills © 2024, Pearson...

Business in Action: Thriving in the Digital Enterprise Tenth Edition, Global Edition Chapter 7 Management Roles, Functions, and Skills © 2024, Pearson Education Ltd. All Rights Reserved Learning Objectives (1 of 2) 7.1 Explain the importance of management, and identify the three vital management roles. 7.2 Describe the planning function, and outline the strategic planning process. 7.3 Describe the organizing function, and differentiate among top, middle, and first-line management. 7.4 Describe the leading function, leadership style, and organizational culture. © 2024, Pearson Education Ltd. All Rights Reserved Learning Objectives (2 of 2) 7.5 Describe the controlling function and explain the four steps in the control cycle. 7.6 Identify and explain four important types of managerial skills. 7.7 Discuss the potential of cognitive automation in management decision making. © 2024, Pearson Education Ltd. All Rights Reserved Management Management – The process of planning, organizing, leading, and controlling to meet organizational goals © 2024, Pearson Education Ltd. All Rights Reserved The Roles of Management (1 of 2) Managerial roles – Behavioral patterns and activities involved in carrying out the functions of management; includes interpersonal, informational, and decision-making roles © 2024, Pearson Education Ltd. All Rights Reserved The Roles of Management (2 of 2) Interpersonal roles – Providing leadership to employees, acting as a liaison among groups, networking, and fostering relationships Informational roles – Gathering information from inside and outside the organization, sharing information Decisional roles – Facing an endless stream of decisions, some which need to be made on the spot © 2024, Pearson Education Ltd. All Rights Reserved The Planning Function (1 of 2) Planning – Establishing objectives and goals for an organization and determining the best ways to accomplish them © 2024, Pearson Education Ltd. All Rights Reserved The Planning Function (2 of 2) Strategic plans – Plans that establish the actions and the resource allocation required to accomplish strategic goals – Usually defined for periods of two to five years and developed by top managers © 2024, Pearson Education Ltd. All Rights Reserved Exhibit 7.1 The Strategic Planning Process © 2024, Pearson Education Ltd. All Rights Reserved Defining the Company’s Purpose and Values Mission statement – A brief statement of why an organization exists; in other words, what the organization aims to accomplish for customers, investors, and other stakeholders Values statement – A brief articulation of the principles that guide a company’s decisions and behaviors © 2024, Pearson Education Ltd. All Rights Reserved Developing Forecasts Quantitative forecasts – Typically based on historical data or tests and often involve complex statistical computations Qualitative forecasts – Based on intuitive judgments © 2024, Pearson Education Ltd. All Rights Reserved Exhibit 7.2 SWOT Analysis © 2024, Pearson Education Ltd. All Rights Reserved Establishing Goals and Objectives (1 of 2) Goal – A broad, long-range target or aim Objective – A specific, short-range target or aim © 2024, Pearson Education Ltd. All Rights Reserved Establishing Goals and Objectives (2 of 2) Specific Measurable Attainable Relevant Time limited © 2024, Pearson Education Ltd. All Rights Reserved The Organizing Function Organizing – The process of arranging resources to carry out the organization’s plans Management pyramid – An organizational structure divided into top, middle, and first-line management © 2024, Pearson Education Ltd. All Rights Reserved Exhibit 7.3 The Management Pyramid © 2024, Pearson Education Ltd. All Rights Reserved The Management Pyramid (1 of 3) Top managers – Those at the highest level of the organization’s management hierarchy – Responsible for setting strategic goals; they have the most power and responsibility in the organization © 2024, Pearson Education Ltd. All Rights Reserved The Management Pyramid (2 of 3) Middle managers – Those in the middle of the management hierarchy – They develop plans to implement the goals of top managers and coordinate the work of first-line managers © 2024, Pearson Education Ltd. All Rights Reserved The Management Pyramid (3 of 3) First-line managers – Those at the lowest level of the management hierarchy – They supervise the operating employees and implement the plans set at the higher management levels © 2024, Pearson Education Ltd. All Rights Reserved The Leading Function Leading – The process of guiding and motivating people to work toward organizational goals © 2024, Pearson Education Ltd. All Rights Reserved Exhibit 7.4 Leadership Styles © 2024, Pearson Education Ltd. All Rights Reserved Leadership Styles (1 of 3) Autocratic leaders – Leaders who do not involve others in decision making Democratic leaders – Leaders who delegate authority and involve employees in decision making © 2024, Pearson Education Ltd. All Rights Reserved Leadership Styles (2 of 3) Laissez-faire leaders – Leaders who leave most decisions up to employees, particularly those concerning day-to-day matters © 2024, Pearson Education Ltd. All Rights Reserved Leadership Styles (3 of 3) Participative management – A philosophy of allowing employees to take part in planning and decision making Employee empowerment – Granting decision-making and problem-solving authorities to employees so they can act without getting approval from management © 2024, Pearson Education Ltd. All Rights Reserved Coaching and Mentoring (1 of 2) Coaching – Helping employees reach their highest potential by meeting with them, discussing problems that hinder their ability to work effectively, and offering suggestions and encouragement to overcome these problems © 2024, Pearson Education Ltd. All Rights Reserved Coaching and Mentoring (2 of 2) Mentoring – A process in which experienced managers guide less-experienced colleagues in the nuances of office politics, serving as a role model for appropriate business behavior, and helping to negotiate the corporate structure © 2024, Pearson Education Ltd. All Rights Reserved Managing Change 1. Identify everything that needs to change 2. Identify the forces acting for and against a change 3. Choose the approach best suited to the situation 4. Reinforce changed behavior and monitor continued progress © 2024, Pearson Education Ltd. All Rights Reserved Building a Positive Organizational Culture Organizational culture – A set of shared values and norms that support the management system and that guide management and employee behavior © 2024, Pearson Education Ltd. All Rights Reserved Exhibit 7.5 (1 of 4) Creating the Ideal Culture in Your Company Vision Have you articulated a compelling vision for the company? Based on that vision, have you defined a mission statement that employees understand and can implement? Company Values Do employees know how their work relates to this mission? Is there a common set of values that binds the organization together? Do you and other executives or owners demonstrate these values day in and day out? © 2024, Pearson Education Ltd. All Rights Reserved Exhibit 7.5 (2 of 4) People Are people treated fairly in terms of compensation, recognition, and opportunities? Do you foster an inclusive atmosphere of civility and respect? Do you value and encourage teamwork, with all ideas welcomed? Do you acknowledge, encourage, and act upon (when appropriate) ideas from employees? Do you give employees credit for their ideas? Have you shown a positive commitment to a balance between work and life? © 2024, Pearson Education Ltd. All Rights Reserved Exhibit 7.5 (3 of 4) Creating the Ideal Culture in Your Company Community Have you clarified how the company views its relationship with the communities it affects? Do your actions support that commitment to community? Communication Do you practice and encourage open communication? Do you share operating information throughout the company so that people know how the company is doing? Do you regularly survey employees on workplace issues and ask for their input on solutions? Is there an open-door policy for access to management? © 2024, Pearson Education Ltd. All Rights Reserved Exhibit 7.5 (4 of 4) Employee Performance Do you handle personnel issues with fairness and respect? Do employees receive feedback regularly? Are employee evaluations based on agreed-upon objectives that have been clearly communicated? © 2024, Pearson Education Ltd. All Rights Reserved The Controlling Function Controlling – The process of measuring progress against goals and objectives, and correcting deviations if results are not as expected © 2024, Pearson Education Ltd. All Rights Reserved Exhibit 7.6 The Control Cycle © 2024, Pearson Education Ltd. All Rights Reserved Establishing Performance Standards Benchmarking – Collecting and comparing processes and performance data from other companies Quality – A measure of how closely an activity or outcome conforms to predetermined standards and customer expectations © 2024, Pearson Education Ltd. All Rights Reserved Measuring Performance Balanced scorecard – A method of monitoring the performance from four perspectives: finances, operations, customer relationships, and the growth and development of employees and intellectual property Crisis management – Procedures and systems for minimizing the harm that might result from some unusually threatening situations. © 2024, Pearson Education Ltd. All Rights Reserved Essential Management Skills (1 of 2) Interpersonal skills – Skills required to understand other people and to interact effectively with them Technical skills – The ability and knowledge to perform the mechanics of a particular job © 2024, Pearson Education Ltd. All Rights Reserved Exhibit 7.7 Communicating in a Crisis When a Crisis Hits: Do Don’t Prepare for trouble ahead of time by identifying potential problems, appointing Blame anyone for anything. and training a response team, and preparing and testing a crisis management Speculate in public. plan. Get top management involved immediately. Refuse to answer questions. Set up a news center for company representatives and the media that is Release information that will violate equipped with phones, computers, and other digital tools for preparing news anyone’s right to privacy. releases and online updates. At the news center, take the following steps: Use the crisis to pitch products or Issue frequent news updates, and have trained personnel available to services. respond to questions around the clock. Play favorites with media representatives. Provide complete information packets to the media as soon as possible. Prevent conflicting statements, and provide continuity by appointing a single person trained in advance to speak for the company. Tell receptionists and other employees to direct all phone calls to the designated spokesperson in the news center. Provide updates when new information is available via blog posts, Twitter updates, text messaging, Facebook, and other appropriate media. Tell the whole story—openly, completely, and honestly. If you are at fault, apologize. Demonstrate the company’s concern by your statements and your actions. © 2024, Pearson Education Ltd. All Rights Reserved Essential Management Skills (2 of 2) Conceptual skills – The ability to understand the relationship of parts to the whole Decision-making skills – The ability to identify a decision situation, analyze the problem, weigh the alternatives, choose an alternative, implement it, and evaluate the results Administrative skills – The technical skills necessary to direct an organization, including scheduling, researching, analyzing data, and managing projects © 2024, Pearson Education Ltd. All Rights Reserved Exhibit 7.8 Steps in the Decision-Making Process © 2024, Pearson Education Ltd. All Rights Reserved Thriving in the Digital Enterprise: Cognitive Automation Cognitive automation – AI technology that aims to help professionals and managers with complex questions that present – Some of the most daunting decision scenarios © 2024, Pearson Education Ltd. All Rights Reserved Exhibit 7.9 Cognitive Automation © 2024, Pearson Education Ltd. All Rights Reserved Applying What You’ve Learned (1 of 2) 1. Explain the importance of management, and identify the three vital management roles. 2. Describe the planning function, and outline the strategic planning process. 3. Describe the organizing function, and differentiate among top, middle, and first-line management. 4. Describe the leading function, leadership style, and organizational culture. © 2024, Pearson Education Ltd. All Rights Reserved Applying What You’ve Learned (2 of 2) 5. Describe the controlling function, and explain the four steps in the control cycle. 6. Identify and explain four important types of managerial skills. 7. Discuss the potential of cognitive automation in management decision making. © 2024, Pearson Education Ltd. All Rights Reserved Copyright This work is protected by United Kingdom copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. © 2024, Pearson Education Ltd. All Rights Reserved