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Chapter 6 Understanding the Management Process - Coggle Diagram
Chapter 6 Understanding the Management Process
Management
– the process of coordinating people and other resources to achieve the goals of an organization
4 step mgt process POLC
Planning
Planning
– establishing organizational goals and deciding how to accomplish them
Mission
– a statement of the basic purpose that makes an organization different from others
Strategic planning process
– the establishment of an organization’s major goals and objectives and the allocation of resources to achieve them
Goal
– an end result that an organization is expected to achieve over a one- to ten-year period
Objective
– a specific statement detailing what an organization intends to accomplish over a shorter period of time
Goals in different departments and at different levels may conflict—it is the manager’s job to achieve balance, which is called
optimization
.
SWOT ANALYSIS
SWOT analysis – the identification and evaluation of a firm’s strengths, weaknesses, opportunities, and threats
Strengths
refer to a firm’s favorable characteristics and core competencies.
Core competencies – approaches and processes that a company performs well that may give it an advantage over its competitors
Weaknesses
refer to internal limitations a company faces in developing or implementing plans.
Opportunities
refer to favorable conditions in the environment that could benefit the organization if properly exploited.
Threats
are conditions or barriers that may prevent the firm from reaching its objectives.
TYPES OF PLANS
Strategic plan
– an organization’s broadest plan, developed as a guide for major policy setting and decision making
Example: Tesla crafted a strategic plan to first develop and introduce a viable electronic performance car (the Tesla Roadster) and then to follow with a well-made model for the luxury car market (the Model S).
Tactical plan
– a smaller-scale plan developed to implement a strategy
1-2 years
Example: JCPenney’s CEO launched a three-year plan to bring in new customers by rolling out appliances to JCPenney stores and website.
Operational plan
– a type of plan designed to implement tactical plans
< 1 year
Contingency plan
– a plan that outlines alternative courses of action that may be taken if an organization’s other plans are disrupted or become ineffective
Organizing
Leading and motivating
Controlling
Organizing
– the grouping of resources and activities to accomplish some end result in an efficient and effective manner
Leading and Motivating
Leading
– the process of influencing people to work toward a common goal
Motivating
– the process of providing reasons for people to work in the best interests of an organization
Part of a manager’s job is to determine what factors motivate workers and try to provide those incentives to encourage effective performance.
Directing
– the combined processes of leading and motivating
Controlling ongoing activities
Controlling
– the process of evaluating and regulating ongoing activities to ensure that goals are achieved
The control function includes three steps:
Setting standards
Example: Southwest Airlines establishes a goal of increasing profits by 12 percent.
Measuring actual performance
Example: Southwest’s management will monitor its profit on a monthly basis to ensure success.
Taking corrective action
Example: After three months, Southwest’s management finds that profit has increased only 1 percent; thus, corrective action will be needed to get the firm back on track.
Levels of MGT
Top manager
– an upper-level executive who guides and controls the overall fortunes of an organization
Generally responsible for developing the organization’s mission
Determines the firm’s strategy
Middle manager –
a manager who implements the strategy and major policies developed by top management
Develops tactical and operational plans
Coordinates and supervises the activities of first-line managers
Common titles: division manager, plant manager, operations manager
First-line manager
– a manager who coordinates and supervises the activities of operating employees
Spends most time working with and motivating employees, answering questions, and solving day-to-day problems
Common titles: office manager, supervisor, foreman
Areas of Management Specialization:
1.Financial Manager
Operations Manager
Marketing Manager
Human Resources Manager
Administrative Manager
Conceptual skills
– the ability to think in abstract terms
Conceptual skills allow a manager to see the “big picture” and understand how the various
Analytic skills
– the ability to identify problems correctly, generate reasonable alternatives, and select the “best” alternatives to solve problems
interpersonal skills
- the ability to deal effectively with other people
Technical skills
– specific skills needed to accomplish a specialized activity
Communication skills
– the ability to speak, listen, and write effectively
Leadership
– the ability to influence others
Leadership is different from management in that a
leader strives for voluntary cooperation
, whereas a
manager may have to depend on coercion to change employee behavior
.