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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