Managing For Business Success 6-1 Exploring Business © 2009 FlatWorld Knowledge.

Managing For Business SuccessManaging For Business Success6-1

Exploring Business © 2009 FlatWorld Knowledge

Chapter ObjectivesChapter Objectives1.1. Identify functions of managementIdentify functions of management2.2. Understand how a company develops and implements Understand how a company develops and implements

strategic planstrategic plan3.3. Discuss options for organizing a business & create Discuss options for organizing a business & create

organizational chartorganizational chart4.4. Explain how managers direct and motivateExplain how managers direct and motivate5.5. Describe how managers monitor operations and assess Describe how managers monitor operations and assess

performanceperformance6.6. Describe skills to be a successful managerDescribe skills to be a successful manager

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Efficiency/Efficiency/EffectivenessEffectiveness

6-3


ManagementManagement

• “…“…the process of planning, the process of planning, organizing, directing, and organizing, directing, and controlling resources to controlling resources to achieve specific goals.”achieve specific goals.”

6-4


Functions of Functions of ManagementManagement

6-5


PlanningPlanning•“…“…managers set goals managers set goals and determine the best and determine the best way to achieve them.”way to achieve them.”

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Strategic PlanStrategic Plan

1)1) Mission StatementMission Statement

2)2) Core Values/BeliefsCore Values/Beliefs

3)3) SWOTSWOT

4)4) Goals & ObjectivesGoals & Objectives

5)5) Tactical/Operational PlansTactical/Operational Plans

“…“…establishing an overall course of action.”establishing an overall course of action.”

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Mission Mission StatementStatement

•“…“…describes the purpose describes the purpose of your organization- the of your organization- the reason for its existence.”reason for its existence.”

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Core ValuesCore Values• “…“…fundamental beliefs about fundamental beliefs about what’s important and what is and what’s important and what is and

isn’t appropriate in conducting isn’t appropriate in conducting company activities.”company activities.”

“…“…link… to performance link… to performance evaluations and evaluations and compensation.”compensation.”

6-9


SWOT AnalysisSWOT Analysis

SStrengthstrengthsWWeaknesseseaknessesOOpportunitiespportunitiesTThreatshreats

“…“…company’s fit with its environment.”company’s fit with its environment.”

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

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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 Objectives- short-term performance

targets that direct efforts toward goaltargets that direct efforts toward goal OrganizationOrganization

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

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Types Of PlansTypes Of PlansStrategicStrategic 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 Operational- Detailed action steps taken to implement tactical plans and strategic plantactical plans and strategic plan

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Contingency vs. Contingency vs. CrisisCrisis

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

o Crisis Management- Create structure Crisis Management- Create structure to deal with emergenciesto deal with emergencies

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OrganizingOrganizing•“…“…allocates allocates resourcesresources (people, equipment, and (people, equipment, and

money) to achieve a money) to achieve a company’s plans.”company’s plans.”

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Levels of Levels of ManagersManagers

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

Middle Managers- Oversee activities Middle Managers- Oversee activities of first-line managersof 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 Organizational StructureStructure

• “…“…arrangement of positions…arrangement of positions…most appropriate for your most appropriate for your

company at a specific point in company at a specific point in time.”time.”

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Structure Structure ActivitiesActivities

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

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

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Product Product DivisionDivision

Baked Baked GoodsGoods

PackagedPackagedMeatsMeats

Beverages.Beverages.Household Household

& Body-Care& Body-Care

Knitwear &Knitwear &OtherOther

ClothingClothing

4-19

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Customer Customer DivisionDivision

Personal-CarePersonal-Care&&

HygieneHygieneProductsProducts

PrescriptionPrescriptionDrugsDrugs

MedicalMedicalDevicesDevices

&&DiagnosticDiagnosticProductsProducts

4-20

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Process Process DivisionDivision

BowaterBowaterThunder BayThunder Bay

TreeTreeCuttingCutting

ChemicalChemicalProcessingProcessing

FinishingFinishing

4-21

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Geographical Geographical DivisionDivision

McDonald’sMcDonald’s

NortheastNortheast

SoutheastSoutheast

Great LakesGreat Lakes

MidwestMidwest

WestWest4-22

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Organization ChartOrganization Chart

•“…“…a diagram a diagram delineating the delineating the

interrelationships of interrelationships of positions...”positions...”

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Notes-4-YouNotes-4-You13-24


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

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Delegating Delegating AuthorityAuthority

Delegation- Entrusting work to Delegation- Entrusting work to subordinatessubordinates

Responsibility & AuthorityResponsibility & Authority

Centralization & DecentralizationCentralization & Decentralization

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DirectingDirecting•“…“…providing focus and providing focus and

direction to others and direction to others and motivating them to motivating them to

achieve organizational achieve organizational goals.”goals.”

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Leadership Leadership StylesStyles

AutocraticAutocratic

DemocraticDemocratic

Laissez-FaireLaissez-Faire

“…“…way of interacting with and influencing others.”way of interacting with and influencing others.”

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Theories ofTheories ofEffective LeadershipEffective Leadership

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

Transformational- Mentor Transformational- Mentor /develop subordinates by /develop subordinates by stimulatingstimulating

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ControllingControlling•“…“…comparing actual to comparing actual to planned performance and planned performance and

taking necessary taking necessary corrective action…”corrective action…”

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Control ProcessControl Process6-33


Managerial Managerial SkillsSkills

TechnicalTechnical InterpersonalInterpersonal

ConceptualConceptual

CommunicationCommunicationTime-Mgmt.Time-Mgmt.

Decision- Decision- MakingMaking

6-34


How To Solve a ProblemHow To Solve a Problem6-35


Managing For Business Success 6-1 Exploring Business © 2009 FlatWorld Knowledge.

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Transcript of Managing For Business Success 6-1 Exploring Business © 2009 FlatWorld Knowledge.