managing a business enterprise-ervie
TRANSCRIPT
ORGANIZING AND MANAGING A BUSINESS ENTERPRISE
ENTERPRENEURSHIP_svcmba2014_erviecane
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Management Process
The process of planning, organizing, directingand controlling an organization’s resources to achieve its goals
Management is needed to:
achieve individual and organizational goals
prevent contradiction goals
achieve goals efficiently and effectively
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Planning
The process of setting goals and deciding on the
strategy and tactic of achieving the firm’s
objectives
Main component of Planning:
– Determine the firm’s goals
– Develop a comprehensive strategy for achieving goals
– Design tactical and operational plans for implementing
strategy
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Setting Goals and Formulating
Strategy
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Setting Goals and Formulating
Strategy
Mission – broad organizational goal based on
planning premises which justifies an
organizational existence
Goal – objective that a business hopes and plans to
achieve divided into
– Long-term goals – a period of five years or more
– Intermediate goals – a period of one to five years
– Short-term goals - less than one year
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Vision
3M: “Be innovative and satisfy our customers”
Microsoft: “Information at your fingertips”
GE: To be number one or two in every business”
Federal Express: “When it absolutely, positively, must get there overnight, use FedEx”
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Mission
Polaroid Corp. (late 1970s)
Polaroid manufactures and sell photographic products based ion inventions of the company in the field of one-step instants photography and light polarizing products, utilizing the company’s inventions in the field of polarized light. The company considers itself to be engaged in one line of business
Polaroid Corp. (mid 1980s)
Polaroid designs, manufactures, and markets worldwide a variety of products based on inventions, primarily in the photographic field. These include instant photographic cameras and films, light polarizing filters and lenses, and diversified chemical, optical, and commercial products. The principal products of the company are used in amateur and professional photography, industry, science, medic, and education
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Setting Goals and Formulating
Strategy
Strategy – broad set of organizational plans
for implementing the decisions mode for
achieving organizational goals
Types of Strategy:
Corporate strategy – firm level strategy
Business strategy – business unit or
product-line level
Functional strategy – functional area
level 8
Setting Goals and Formulating
Strategy
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Setting Goals and Formulating
Strategy
Deficient of Annual Objective
Measurable criteria for performance
To improve the business’s image
Conducting a public opinion poll on dimensions of corporate responsibility by October 2003
To improve morale in the division
Reducing employees turnover, absenteeism, number of reject by 10 percent by December 2003
Assumption: Morale is related to measurable outcome
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Organizing
Organizing - the process of arranging the
resources of the firm and activities into a
coherent organizational structure
Organizational Structure – specification
of the jobs and the way in which an
organization activities are divided,
organized and coordinated
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Organizing
Organization Chart – diagram depicting a
firm’s structure that shows the title of each
positions, the connecting lines and
responsible
Span of management control – the
number of subordinates reporting directly
to a given manager
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Organizational Structure
Line Organization - an organization
structure in which each manager is directly
responsible for a crucial activities required
to accomplish the organization goals
Departmental Organization - the process
through which a firm’s activities are
grouped together and assigned to managers
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Departmentalization
Functional –divided into engaged in one
functional activity: Marketing, Production
Product – based on specific products
Market – based on geographical market
Customer – based on types of customers
Matrix Structure –each employee report
to both functional and division manager
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Functional and
Departmentalization
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Directing
Directing – management process of leading
and motivating employees to meet an
organization objective
Leadership – The process of directing and
influencing the task related activities of
individual
Motivation – the factor that cause and
sustain an individual’s behavior
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Controlling
Controlling – the process of monitoring and
evaluation an organization’s performance to
ensure that it is meeting its goals
Control is needed to
cope with changes internally and externally,
faced more organizational, complexity,
facilitate delegation and teamwork,
create better quality and add value
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Steps in Control Process:
Establish standards: Physical, products quantities, Monetary and time Time
Establish methods for measuring performance by determining: how often and what form in measuring, and who are involved
Measure the performance through observations, reporting analysis, inspection and automatically methods
Determine whether performance matches the standard
Take correction actions18
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Level of Management
Top manager – responsible to the board of
director and stockholder for overall firm’s
performance
Middle manager – responsible to top manager
for implementing the strategies and policy
First-line manager – responsible to middle
manager for supervising the works of employees
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Managerial Skills
Technical Skills – needed to perform specialized tasks
Human relations Skills – needed to understanding and getting along with people
Conceptual Skills – abilities to think in abstract, diagnose and analyze different situations
Decision Making Skills - abilities in defining problems and selecting the best problem solving
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Skills Required
Technical HumanRelation
Conceptual DecisionMaking
TOP Low High High High
Middle Medium Medium Medium Medium
First-line
High Medium Low Low
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Thank You…
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