management class 16 bus 20 section 72192 thursday 10-20-11

Management

Class 16BUS 20 Section 72192

Thursday 10-20-11

Management DefinedManagement Defined

• Management is a Process [actually a series of Processes]

• To achieve organizational objectives• By using resources• Effectively and efficiently • In a changing environment

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Interrelated Functions of ManagementInterrelated Functions of Management

Manager’s Responsibility: Making Manager’s Responsibility: Making People Efficient and EffectivePeople Efficient and Effective

Importance of Management Functions to Importance of Management Functions to Managers in Each LevelManagers in Each Level

PlanningPlanning

Managers set goals and determine Managers set goals and determine the best way to achieve themthe best way to achieve them

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Exploring Business © 2009 FlatWorld Knowledge

Types Of PlansTypes Of Plans

StrategicStrategic Long-termLong-term Overall course of actionOverall course of action Established by upper-level managersEstablished by upper-level managers Implemented by managers at all levelsImplemented by managers at all levels

TacticalTactical Shorter termShorter term Specify activities/resources needed to implement strategic Specify activities/resources needed to implement strategic

plansplans

Operational- Detailed action steps taken to implement tactical Operational- Detailed action steps taken to implement tactical plans and strategic planplans and strategic plan

Contingency – defined courses of action to be taken in the Contingency – defined courses of action to be taken in the event that the original plan changesevent that the original plan changes

Crisis Management – action plans outlining steps to be taken in Crisis Management – action plans outlining steps to be taken in the en=vent of a crisisthe en=vent of a crisis

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Where Planning StartsWhere Planning Starts

• Objectives – The ends or results desired by the

organization and are derived from the organization’s mission

• Mission– The statement of an organization’s

fundamental purpose and basic philosophy

Developing & Implementing Plans

The Means The End Mission – What is a

company’s business? It’s how you reach your vision. It’s the passion behind the company

Strategy – the broad plan. The “how” to achieve a goal or objective

Tactics – actions taken to fulfill a strategy, the ways strategies are executed

Vision – What do we want to become? How does the company see itself? It’s measured by results.

Goal – the end toward which effort is directed

Objectives – specific, measurable actions achieved by what actions you take.

Business Planning

A properly organized business plan supports Itself like a pyramid.

For a company’s overall vision, there is a defined mission

For each goal, there are objectives Every objective has a strategy

Each strategy employs tactics to achieve it

The Business Planning Pyramid

Strategic PlanningStrategic Planning

1)1) Mission StatementMission Statement

2)2) Core Values/BeliefsCore Values/Beliefs

3)3) SWOTSWOT [assessment of company’s [assessment of company’s strengths, weaknesses, strengths, weaknesses,

opportunities & threats]opportunities & threats]

4)4) Tactical/Operational PlansTactical/Operational Plans

5)5) Contingency & Crisis PlansContingency & Crisis Plans

establishing an overall course of actionestablishing an overall course of action

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Mission StatementMission Statement

Describes the purpose of your organization- Describes the purpose of your organization- the reason for its existencethe reason for its existence

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Core ValuesCore Values

Fundamental beliefs about whatFundamental beliefs about what’’s s important and what is and isnimportant and what is and isn’’t appropriate t appropriate

in conducting company activitiesin conducting company activities

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SWOT AnalysisSWOT Analysis

SStrengthstrengthsWWeaknesseseaknessesOOpportunitiespportunitiesTThreatshreats

Assessment of a companyAssessment of a company’’s fit with its s fit with its environmentenvironment

Examine internal and external Examine internal and external forces that affect the company.forces that affect the company.

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Contingency vs. Crisis PlanningContingency vs. Crisis Planning

o Contingency PlanningContingency Planning- Identify aspects - Identify aspects most likely to be adversely affected most likely to be adversely affected by change, develop alternative by change, develop alternative courses of actioncourses of action

o Crisis ManagementCrisis Management- Create structure to - Create structure to deal with emergenciesdeal with emergencies

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Goals & ObjectivesGoals & Objectives

Goals- Goals- majormajor accomplishments over long accomplishments over long period of timeperiod of time

Objectives- short-term performance targets Objectives- short-term performance targets that direct efforts toward goalthat direct efforts toward goal

OrganizationOrganization• Number of goals/objectivesNumber of goals/objectives• Change over timeChange over time

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Goals are:

• broad

• general intentions

• intangible

• abstract

• can't be validated as is

Objectives are:

• Narrow & Specific

• Measurable

• Achievable

• Relevant

• Time-based

Goals and Objectives

Goals and Objectives put into context

Business: How to make money from spending money –Engineering, Finance, Operations, Marketing, and Sales

Marketing: How to build demand with the market place – Product, Price, Place, Promotion

Communications: How to promote effectively – Messaging, Media

An Example of XYZ Company Meeting its Mission, Goals and Objectives

Mission - To make the XYZ company largest seller of premium candy

Goals & Objectives - Achieve share of market leadership in the premium candy segment and be known as the most expensive candy, but worth it.

Strategy - Convince consumers that XYZ candy is the best premium candy by associating with high-end people and entities.

Tactics - Sample XYZ candy in high-end department stores. TV and Print ads using wealthy celebrity endorsers

Objective – Increase Profitability

Increasing profitability is a common objective of small and large businesses alike. As a manager, what are some of the ways you can do this?

Objective – Increase Profitability

Reduce operational costsRestructure jobs to eliminate redundancyImprove work flow processes which will reduce salary expensesSource materials & inventory from lower-cost suppliers

Rethinking product lines can help ,eet profitability goals Offering a lower quality product line may boost revenue and profits

Operations side of the business:

Marketing & Sales side of the business

Objective – Increase Market Share

Gaining market share from established competitorsis at the top of most small business' strategic agendas.

As a manager of a small candle manufacturingcompany, what are some of the marketing tactics you can employ to do this?

Objective – Gaining Market Share

Marketing & Sales Tactics

Reduce prices temporarily [penetration pricing] to encourage new customers to try your product

Increased investing in advertising, PR, social media to help build brand awareness

Offer promotions [coupons, etc.] as an incentive for bothNew and existing customers to try your products/services.

OrganizingOrganizing

The process of allocating The process of allocating resourcesresources (people, equipment, and money) to (people, equipment, and money) to

achieve a companyachieve a company’’s planss plans

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StaffingStaffing

• Managers must ensure that the organization has enough employees with appropriate skills to do the work

• Managers must also determine:– What skills are needed for specific jobs– How to motivate and train employees to do their

assigned jobs– How much to pay employees– What benefits to provide– How to prepare employees for higher-level jobs in

the firm at a later date

Levels of ManagersLevels of Managers

Top Managers- Responsible for health & Top Managers- Responsible for health & performance performance

Middle Managers- Oversee activities of Middle Managers- Oversee activities of first-line managers first-line managers

First-Line Managers- Supervise & First-Line Managers- Supervise & coordinate employeescoordinate employees

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Organizing:Organizing:Levels of ManagementLevels of Management

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Organizational StructureOrganizational Structure

Arrangement of position most appropriate Arrangement of position most appropriate for your company at a specific point in for your company at a specific point in

timetime

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Structure ActivitiesStructure Activities

Job Specialization Job Specialization – Dividing tasks – Dividing tasks into jobsinto jobs Identify activities to be performedIdentify activities to be performed Break activities into tasksBreak activities into tasks

DepartmentalizationDepartmentalization- Grouping jobs - Grouping jobs into meaningful unitsinto meaningful units Functional- by skills/tasksFunctional- by skills/tasks Divisional- accountable for performance Divisional- accountable for performance

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Organization ChartOrganization Chart

A diagram delineating the A diagram delineating the interrelationships of positionsinterrelationships of positions

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Organizational ChartOrganizational Chart

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DivisionalDivisionalOrganization ChartOrganization Chart

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Combined DivisionalCombined Divisionaland Functional Structureand Functional Structure

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Lines Of AuthorityLines Of Authority

Chain of Command- Who reports to whomChain of Command- Who reports to whom

Unity of Command- One bossUnity of Command- One boss

Matrix Structure- Form teams to combine Matrix Structure- Form teams to combine skills on specific projectskills on specific project

Span of Control- Number of people reporting Span of Control- Number of people reporting to a managerto a manager

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Delegating AuthorityDelegating Authority

Delegation- Entrusting work to subordinatesDelegation- Entrusting work to subordinates

Responsibility & AuthorityResponsibility & Authority

Centralization & DecentralizationCentralization & Decentralization

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DirectingDirecting

The process of providing focus and The process of providing focus and direction for employees and motivating direction for employees and motivating

them to achieve organizational goalsthem to achieve organizational goals

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Leadership StylesLeadership Styles

AutocraticAutocratic

Democratic [participatory]Democratic [participatory]

Laissez-Faire [free –rein]Laissez-Faire [free –rein]

way of interacting with and influencing othersway of interacting with and influencing others

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Theories ofTheories ofEffective LeadershipEffective Leadership

Transactional- Exercise authority based Transactional- Exercise authority based rank in organizationrank in organization

Transformational- Mentor /develop Transformational- Mentor /develop subordinates by stimulatingsubordinates by stimulating

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Where Do Managers Come From?Where Do Managers Come From?

• Good managers are made, not born:– Promoting employees from within– Hiring managers from other organizations– Hiring managers graduating from colleges

and universities [for example, MBAs]

The Reality of Management:The Reality of Management:Make DecisionsMake Decisions

• There are only two basic activities of management:

1. Figuring out what to do despite uncertainty, great diversity, and an enormous amount of potentially relevant information

2. Getting things done through a large and diverse set of people despite having little direct control over most of them

Managerial SkillsManagerial Skills

TechnicalTechnical InterpersonalInterpersonal

ConceptualConceptual

CommunicationCommunicationTime-Mgmt.Time-Mgmt.

Decision- Decision- MakingMaking

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ControllingControlling

The process of comparing actual to The process of comparing actual to planned performance, incorporating planned performance, incorporating what’s working and taking necessary what’s working and taking necessary

corrective action to improve what corrective action to improve what isn’tisn’t

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Control ProcessControl Process

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How To Solve a ProblemHow To Solve a Problem

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management class 16 bus 20 section 72192 thursday 10-20-11

Documents

companys business

business planninga

organized business plan

flatworld knowledgecontingency

companys overall vision

management definedmanagement

objective tactics actions

strategy employs tactics