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Chapter Nine: Management: Functions and Styles

© 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

Learning Objectives

Describe the changes occurring in management today.

Explain the four functions of management.

Describe various management styles and know when they are appropriate.

Explain future challenges for management.

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Today’s Managers

View job as not telling people what to do, but as a partnership Coaching and supporting Teams and Team building

Management The process of planning, organizing, leading

and controlling people to accomplish goals

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Management Functions

Planning Organizing Leading Controlling We will discuss each in detail

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Planning

The process of setting organizational vision, mission, goals and objectives.

Mission Statements A corporate vision Should include:

Customer needs, company philosophy, the organizations self concept, long term survival, the nature of products/services, social responsibility and employees

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Planning

Goals Long term accomplishments an

organization wishes to attain Objectives

Specific statements that address how to achieve goals in the short term

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Planning

SWOT Analysis Strengths, opportunities, weakness and threats Using this process can help a company see what it

does well, what it doesn’t do well and try to improve upon

PEST Analysis An external analysis to determine political,

economic, social and technological things that may impact a business

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Planning

Types of planning Strategic planning Tactical planning Operational planning Contingency planning

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Organizing

Once planning is done, managers must organize to meet goals

Organizational chart A visual representation that shows

relationships among people Span of control

Refers to how many people a manager will manage

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Organizing

Levels of management Top Middle Supervisory managers

Skills required Technical Human relations Conceptual skills

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Organizing

Types of company structures Line and staff Matrix Departmentalization

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Leading

Communicating a vision Establishing company values Promoting ethics Embracing change Stressing accountability

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Controlling

Establishing clear standards Monitor and record performance Compare results against standards Communicating results and deviations Taking corrective action where needed

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Management Styles

Autocratic leadership Manager makes decisions

Participative Leadership Managers and employees work together to

make decisions Free reign leadership

Managers set objectives and employees are free to do what needs to be done to accomplish

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Management Styles

Theory X Assumptions by manager: employees dislike work, need to be

directed and fear and money as motivators Theory Y

Assumptions by manager: employees naturally work toward goals, can solve problems, workers are motivated by a variety of rewards

Theory Z Hybrid style of management Japanese and American approach Assumptions by manager: long term employment with one

company, collective decision making individual responsibility, specialized career path

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Management Challenges

Management Scrutiny (brought by management scandals)

Constant change Global competition Technological changes Diversity in the workforce Downsizing

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Chapter Ten: Leadership and Motivation

© 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill

Learning Objectives

Understand the difference between management and leadership.

Describe the qualities of a leader and the differing leadership styles.

Understand the importance of motivation.

Describe the key principles of employee improvement theories

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Management vs. Leadership

Leadership Creating a vision for others to follow, establishing

corporate values, transforming the way a business does business for effectiveness and efficiency

Management The process of planning, organizing, leading and

controlling A leader provides guidance in a broad sense

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Leadership Qualities

Exhibit of integrity, ethics, responsibility and self knowledge

Having vision and understanding business and tasks

Listening and communicating Being able to change Decisive and Committed Positive attitude and enthusiasm Taking Care of people and inspiring them

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Leadership styles

Formal and Informal leadership Task Leaders and social leaders Transformational Leadership

A leader who can transform the ideas of employees to create a shared vision

Transactional leadership A leader who gets people to do things by

providing structure and guidelines

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Understanding motivation

Intrinsic versus extrinsic rewards Scientific Management

Focus on time motion studies Efficient process

Hawthorne studies Tried to find motivation for workers based on things like

break times and light Realized that when people were watched, they worker

harder Called the Hawthorne effect

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Motivation Theories

Maslow’s Hierarchy of Needs Must meet bottom level needs before

moving up hierarchy Motivation is a result of a need When one level of needs is met, people

move up to meet next level of needs

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Maslow’s Hierarchy10-24

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The top motivating factors Senses of achievement Recognition Interest in the work Opportunity for growth

and advancement Importance of

responsibility Relationships

Pay Supervisor fairness Company Policies Status Job Security Supervision friendliness Working conditions

Herzberg’s Two Factor Theory10-25

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Herzberg’s Two Factor Theory

Conclusions Motivators

Cause employees to be productive Hygiene factors

Dissatisfaction if not present, but does not necessarily motivate

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Herzberg’s Two Factor Theory10-27

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Other ways to motivate

Job rotation Moving employees from one job to another

Job enlargement Combining a series of tasks into a

challenging assignment Job enrichment

Changing something about the job to make it more interesting

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Goal Setting and MBOs

Goal Setting Theory Setting ambitious but achievable goals will

motivate employees Management by Objective (MBOs)

A system of goal setting that allows for input and constant discussion and updating goals

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Other Motivational Theories

Reinforcement theory Based on the idea that positive and negative

reinforcement motivates a person to behave in a specific way

Creates a system dependant on punishment and reward

Equity Theory The idea that employees try to maintain equity

between inputs and outputs compared to others in the same position

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Other Motivational Theories

Empowerment Giving authority to the employees to make

decisions Requires employees to have ability and

manager to have trust

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