This document provides an overview of management functions including planning, organizing, leading, and controlling. It discusses the evolving roles of managers, the four main functions of management, and aspects of each function. Planning involves establishing goals and strategies, analyzing strengths and weaknesses, and contingency planning. Organizing creates hierarchies and defines reporting structures. Leading provides vision and values through communication and establishing ethics. Controlling ensures plans are executed properly through monitoring and making adjustments.

1. *
*Chapter
Seven
Management
and
Leadership
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin

2. *
*
Managers’ Roles
Are Evolving
• Younger and more
progressive.
- Growing numbers of women.
- Fewer from elite universities.
• Emphasis is on teams and
team building.
• Managers need to be skilled
communicators and team
players.
TODAY’S MANAGERS
LG1
7-2

3. *
*
Four Functions
of Management
1.Planning
2.Organizing
3.Leading
4.Controlling
FOUR FUNCTIONS of
MANAGEMENT LG2
7-3

4. *
*
Planning &
Decision Making
• Vision -- More than a
goal, it’s a broad
explanation of why the
organization exists and
where it’s trying to go.
SHARING the VISION
LG3
7-4

5. *
*
Planning &
Decision Making
• What is the situation now?
SWOT Analysis -- Analyzes the organization’s
Strengths, Weaknesses, Opportunities and Threats.
• How can we get to our goal from here?
- Strategic planning
- Tactical planning
- Operational planning
- Contingency planning
PLANNING ANSWERS
FUNDAMENTAL QUESTIONS LG3
7-5

6. *
*
Planning &
Decision Making
• Strategic Planning -- Done by top management
and determines the major goals of the organization
and the policies, procedures, strategies and
resources it will need to achieve them.
• Tactical Planning -- The process of developing
detailed, short-term statements about what is to be
done, who is to do it and how.
STRATEGIC and TACTICAL
PLANNING LG3
7-6

7. *
*
Planning &
Decision Making
• Operational Planning -- The process of setting
work standards and schedules necessary to
implement the company’s tactical objectives.
OPERATIONAL and CONTINGENCY
PLANNING LG3
• Contingency Planning --
The process of preparing
alternative courses of action
the firm can use if its primary
plans don’t work out.
7-7

8. *
*
Planning &
Decision Making
LG3
PLANNING FUNCTIONS
7-8

9. *
*Decision Making:
Finding the Best
Alternative
1. Define the situation.
2. Describe and collect needed information.
3. Develop alternatives.
4. Develop agreement among those involved.
5. Decide which alternative is best.
6. Do what is indicated.
7. Determine whether the decision was a good one
and follow up.
RATIONAL DECISION-MAKING
MODEL LG3
7-9

10. *
*Organizing:
Creating a
Unified System
• Organization Chart --
A visual device that
shows relationships
among people and
divides the organization’s
work; it shows who
reports to whom.
ORGANIZATIONAL CHARTS
LG4
7-10

11. *
*Organizing:
Creating a
Unified System
LG4
LEVELS of MANAGEMENT
7-11

12. *
*Leading: Providing
Continuous Vision
and Values.
• Leaders must:
- Communicate a vision and rally others around that
vision.
- Establish corporate values.
- Promote corporate ethics.
- Embrace change.
- Stress accountability and responsibility
LEADERSHIP
LG5
7-12

13. *
*
Leadership
Styles
• Autocratic Leadership --
Making managerial decisions
without consulting others.
• Participative or Democratic
Leadership -- Managers and
employees work together to
make decisions.
• Free-Rein Leadership --
Managers set objectives and
employees are free to do
whatever is appropriate to
accomplish those objectives.
LEADERSHIP STYLES
LG5
7-13

14. *
*Controlling:
Making Sure it
Works
FIVE STEPS of CONTROLLING
LG6
7-14