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Ch (2):

MANAGEMENT:

FUNCTIONS AND

STYLES

LEARNING objectives After reading this chapter ,you should be able to :

1. Define management

2. Explain the four functions of management.

3. Understand the use of three tools : SMART ,SWOT, and PEST analysis .

4. Understand the basics of organizational structure .

5. Describe various management styles and know when they are

appropriate .

6. Explain the challenges for management in the new future .

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Section: 1- WHAT IS MANAGEMENT

Section Outline:-

Function of Management:-

Planning.

Organizing.

Leading.

Controlling

What Else Do Managers Do?

1. Management: The process of Planning, Organizing, Leading and controlling

people and other available resources to accomplish organizational goals and

objectives.

2. Function of Management :-

A. Planning.

Anticipating trends and determines the best strategies and tactics to

achieve organizational goals and objectives

B. Organizing.

Designing the structure of the organization and creating conditions and

systems in which everyone and everything work together to achieve the

organization's goals and objectives.

C. Leading.

Creating a vision for the organization and communicating. Guiding

training, coaching and motivating other to work effectively to achieve the

organization's goals and objectives.

empower : Giving employees as much freedom as possible to become

self-directed and self-motivated .

D. Controlling

Establishing clear standers to determine whether an organization is

progressing towards its goals and objectives ,rewarding people for doing a

good job , and taking corrective action if they are not .

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A. Planning

­ The first managerial function involves setting the organizational vision ,

mission ,goals and objectives

i. Vision :-

­ A forward-looking statement that provides an encompassing explanation of

why the organization exists and where it is headed in the future.

ii. Mission statement :-

­ An outline of the fundamental purposes of an organization.

­ A meaningful mission should address the following components :-

1. Customer needs.

2. Company philosophy and goals.

3. The organization's self-concept .

4. Long-term survival.

5. The nature of the company's products or services .

6. Social responsibility.

7. Care for employees.

THE MISSION STATEMENT BECOMES THE SETTING SPECIFIC :-

iii. Goals :-

­ The board, long-term accomplishments an organization wishes to attain.

iv. Objectives :-

­ Specific, short-term statements detailing how to achieve the organization's

goals.

GUIDELINES FOR SETTING S.M.A.R.T. OBJECTIVES:-

1. Specific :- Rather than saying "increase sales"Say "increase sales by 10%"

2. Measurable:- "Better customer service" Hard to measure. But

"Increase customer service survey by 1 point in 6 months" is very measurable.

3. Achievable:- Are the objectives achievable and attainable

4. Realistic :- Can the company achieve the goal with the resources

available.

5. Time :- What is the deadline for achieving goals?

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SWOT :- ­ An analysis of the organization's Strengths , Weaknesses ,Opportunities,

and Threats .

Potential Internal STRENGTHS Potential Internal WEAKNESSES

Core competencies in key areas

An acknowledged market leader

Well-conceived functional are

strategies.

Proven management.

Cost advantages.

Better advertising campaigns.

No clear strategic direction.

Obsolete facilities.

Supper profitability.

Weak market image .

Too narrow a product line.

Potential External OPPORTUNITIES Potential External THREATS

Ability to serve additional

customer groups.

Expansions of product lines .

Ability to transfer

skills/technology to new products

Complacency among rival firms.

Ability to grow due to increase in

market demand .

Entry of lower-cost foreign

competitors.

Rising sales of substitute

products.

Slower market growth.

Costly regulatory.

Changing buyer needs and

tests

v. PEST analysis :-

­ An analysis of outside factors that could affect a business :

(PEST stand for) Political , Economic , Social and Technological .

­ A Tool specifically useful in understanding and analyzing the Macro or

general environments .

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vi. Form of Planning:- A. Strategic planning: - Setting long-term goals for the company.

B. Tactical planning : - The development of several objective for each. There

are the short-term goals that must be achieved to attain a long-term goals.

C. Operational planning :- Scheduling budgeting and any other necessary

plans used to meet the tactical objectives.

D. Contingency planning :- Planning for "what if " scenarios and secondary

plans in case the original ones do not work

B. Organizing ­ After managers have planned course of action they must organize the

firm to accomplish their goals .

­ Organizing means allocating resources (such as funds ) , assigning tasks

and establishing procedures for accomplishing the organizational

objectives .

i. Organizing chart :- Visual diagram that shows relationships among people and divides the

organization's work.

ii. Span of control :- ) مجال التحكم ) The optimal number of subordinates (employees) a manager

supervises.

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iii. Levels of management :- 1. Top management :-

It is the highest level of management and consists of the president and

other key company executives.

2. Middle management :-

General managers ,division managers , district managers and plant

managers or supervisors .

3. 3- Supervisory (First –line) :-

Those who are directly responsible for supervising workers and

evaluating their daily performance .

iv. Tasks and Skills at Different Levels of Management

Top

Managers

Technical

Skills

Human Relation

Skills

Conceptual

Skills

Middle

Managers

Technical

Skills

Human Relation

Skills

Conceptual

Skills

Frist-line

Managers

Technical

Skills

Human Relation

Skills

Conceptual

Skills

1. Technical Skills :-

The skills required to do a specific job

2. Human Relations Skills :-

The ability to communicate and work with other

3. Conceptual Skills :-

Ability to see "big" picture ( the Organization as a whole and

relation among the its various parts )

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v. Ways To Departmentalize :-

1. By Product :-

Marketing

Manager

Trade books College Texts

Technical

books

2. By Function :-

President

Production Marketing

Finance

3. By Customer Gruop :-

President

Consumers Commercial user

Manufacturers

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4. By Geographic location :-

Vice President

international

Operation

Canadian

Division

Japanese

Division

European

Division

5. By Process :-

Production

Manager

Cutters

Dyers

Switchers

vi. Staffing :- Recruiting ,hiring , motivating ,and retaining the best people

available to accomplish the company's objectives .

C. Leading A leader is the person who can provide guidance to employee through

establishment of :-

1. Communicate a vision and rally تجميع others around that vision .

2. Establish company values.

3. Promote تنمية corporate ethics.

4. Embrace تبنى change.

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D.Controlling Measuring performance relative to the planned objectives and standers by:-

1. Establishing clear performance standers.

2. Monitoring and recording actual performance.

3. Comparing result against plane and standards.

4. Communicating results and deviations to the employee involved.

5. Taking corrective action when needed and providing positive feedback .

1 2 3 4 5

Establishing clear

performance

Monitoring &recording

performance

Comparing result

against standards

Communicating

results

If needed Taking

corrective action

Are Standers Realistic ?

FEEDBACK

E. What Else Do Managers Do?

i. Work – Life balance :- The Idea that an individual should have control over interactions between

Work and Home .

ii. Total quality management (TQM) :- A management strategy where quality is reviewed at every phase of the

production process, even in service organization.

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Section : 2 – MANAGEMENT STYLES

Section Outline:-

Management Styles :-

Autocratic Leadership.

Participative Leadership.

Free – Rein Leadership.

Theory X.

Theory Y.

Theory Z.

1. Autocratic Leadership أستبدادى . Making managerial decisions without consulting others.

2. Participative Leadership ديموقراطى . Managers and employees work together to make decisions .

3. Free – Rein Leadership فك الزمام . Managers setting objectives and then employees being relatively free to do

whatever it take to accomplish that objective.

4. Theory X. Theory Y. Theory Z.

Management theorist "Douglas McGregor " observed that manger

attitudes about employees usually fall into one of two categories Are

theory X theory Y. And then developed by William Ouchi anther theory

is theory Z

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Theory X Theory Y Theory Z

Managers believe The average person Dislikes work , Has relatively little mbitionطموح,Wishes to avoid responsibility , So workers must be forcefully directed or threatened with punishment .Primary motivators are fear and money

Managers believe The most people Like work Naturally work toward goals to which they committed ملتزمand Are capable of using imagination and creativity to solve problems .Each worker is stimulated by rewards unique to that worker

Management theory that focuses on trust and intimacy مودة within the work group

1. Employees dislike work and will try to avoid it.

2. Employees prefer to be controlled and directed .

3. Employees seek security ,not responsibility .

4. Employees must be intimidated يتهدد by managers to perform.

5. Employees are motivated by financial rewards.

1. Employees view work as a natural part of life.

2. Employees prefer limited control and direction .

3. Employees will seek responsibility under proper work conditions.

4. Employees perform better in work environments that are no intimidatingمهدد

5. Employees are motivated by many different needs .

1. Employees involvement is the key to increased productivity.

2. Employee control is implied and informal.

3. Employees prefer to share responsibility and decision making.

4. Employee perform better in environments that foster trust and cooperation.

5. Employees need guaranteed employment and will accept slow evaluations and promotions .

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Section : 3 – MANAGEMENT CHALLENGES

Section Outline:-

Management Challenges :-

1. Intense management scrutiny , caused by business scandals .

2. Constant change in business.

3. Global competition.

4. Technological changes.

5. Elimination of managerial and other jobs due to downsizing.

6. The need to get things done by working with new generations of

employees with different attitude .

Downsizing ( Rightsizing ) :- Elimination of many management jobs , and other types of jobs , by using

cost-cutting methods and technology such as computer.