MANAGEMENT:

FUNCTIONS AND
STYLES

LEARING

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 .

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
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,rewarding people for doing a good job , and taking

corrective action if they are not .

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

OBJECTIVES:-

S.M.A.R.T.

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.
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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?

SWOT :An analysis of the organization's Strengths ,

Weaknesses ,Opportunities, and Threats .
Potential Internal
STRENGTHS
Core competencies in key
areas
An acknowledged market
leader
Well-conceived functional
are strategies.
Proven management.
Cost advantages.
Better advertising
campaigns.

Potential Internal
WEAKNESSES
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.

Entry of lower-cost
foreign competitors.
Rising sales of substitute
products.
Slower market growth.
Costly regulatory.
Changing buyer needs
and tests
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 Ability to grow due to

increase in market demand
.

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 .

vi. Form of Planning:A.

Strategic planning: - Setting longterm 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.
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ii. Span of control :-

) )
The optimal number of subordinates (employees) a manager
supervises.

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
Manag
ers

Technic
al
Skills

Human
Relation
Skills

Conceptual
Skills

Middle
Manag
ers

Human
Relation
Skills

Technical
Skills

Fristline
Manag
ers

Technical
Skills

Conceptual
Skills

Human
Relation
Skills

Conceptu
al
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 )

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

Consumer
s

Commercial
user

Manufacturers

4. By Geographic location :Vice

President
international
Operation

Canadian

Japanese

European

Division

Division

Division

5. By Process :Production
Manager

Cutters

Dyers

Switchers
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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 others around that
vision .
2. Establish company values.
3. Promote corporate ethics.
4. Embrace change.

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 .

Establish
ing clear
perform
ance

Monitori
ng
&recordi
ng
perform

Compar
ing
result
against
standar

Communic
ating
results

If
needed
Taking
correctiv
e action
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ance

ds

Are Standers
Realistic ?

FEEDB
ACK

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.

Section : 2 MANAGEMENT STYLES

Section Outline:Management Styles :

Autocratic Leadership.
Participative Leadership.
Free Rein Leadership.
Theory X.
Theory Y.
Theory Z.

1.
Autocratic Leadership .
Making managerial decisions without consulting others.
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2.

Participative Leadership

.
Managers and employees work together to make decisions .

3.

Free Rein Leadership

.
Managers setting objectives and then employees being
relatively free to do whatever it take to accomplish that
objective.

4.
Z.

Theory X. Theory Y. Theory

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

Theory X

Theory Y

Theory Z

Managers believe
The average person
Dislikes work , Has
relatively little
mbition ,Wishes
to avoid
responsibility , So
workers must be
forcefully directed or
threatened with
punishment .Primary

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

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

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motivators are fear

and money

stimulated by
rewards unique to
that worker

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
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
intimidating
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 .

Section : 3 MANAGEMENT
CHALLENGES
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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.

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