BUS 121 - CHP 5 The Business of Managing

Management

Process of planning, organizing, leading, and controlling an organization's resources to achieve its goals

Planning

management process of determining what an organization needs to do and how best to get it done

Organizing

management process of determining how best to arrange an organization's resources and activities into a coherent structure

Leading

Management process of guiding and motivating employees to meet an organization's objectives

Controlling

Management process of monitoring an organization's performance to ensure that it is meeting its goals

Three Levels of Management

Top Managers, Middle Managers, First Line Managers

Middle Manager

manager responsible for implementing the strategies and working toward the goals set by top managers

First-Line Manager

manager responsible for supervising the work of employees

Human Resource Managers

hire and train employees, evaluate performance, and determine compensation.

Operations Managers

responsible for production, inventory, and quality control. Manufacturing companies such as Texas Instruments, Ford, and Caterpillar have a strong need for operations managers at many levels.

Marketing Managers

responsible for getting products from producers to consumers.

Information Managers

design and implement systems to gather, organize, and distribute information.

Financial Managers

plan and oversee its accounting functions and financial resources

Technical Skills

skills needed to perform specialized tasks

Human Relations Skills

skills in understanding and getting along with people

Conceptual Skills

abilities to think in the abstract, diagnose and analyze different situations, and see beyond the present situation

Decision-Making Skills

skills in defining problems and selecting the best courses of action

Time Management Skills

skills associated with the productive use of time

4 Leading Causes of Wasted Time

1. Paperwork
2. Telephone Calls
3. Meetings
4. E-Mail

Global Management Skills

Managers will need to understand foreign markets, cultural differences, and the motives and practices of foreign rivals

Management and Technology Skills

With e-mail, videoconferencing, and other forms of communication, neither time nor distance�nor such corporate boundaries as departments and divisions�can prevent people from working more closely together

Strategic Management

process of helping an organization maintain an effective alignment with its environment

Goal

objective that a business hopes and plans to achieve

Strategy

broad set of organizational plans for implementing the decisions made for achieving organizational goals

Purposes of Goal Setting

1. broad set of organizational plans for implementing the decisions made for achieving organizational goals
2. Goal setting helps firms allocate resources.
3. Goal setting helps to define corporate culture.
4. Goal setting helps managers assess performanc

Mission Statement

organization's statement of how it will achieve its purpose in the environment in which it conducts its business

Long-Term Goal

goal set for an extended time, typically five years or more into the future

Intermediate Goal

goal set for a period of one to five years into the future

Short-Term Goal

goal set for the very near future

Corporate Strategy

strategy for determining the firm's overall attitude toward growth and the way it will manage its businesses or product lines

Hierarchy of Strategy

1. Corporate Strategy
2. Business or Competitive Strategy
3. Functional Strategy

Business (or Competitive) Strategy

strategy, at the business-unit or product-line level, focusing on improving a firm's competitive position

Functional Strategy

strategy by which managers in specific areas decide how best to achieve corporate goals through productivity

Strategy Formulation

creation of a broad program for defining and meeting an organization's goals
1. Setting Strategic Goals directly from a firm's mission statement.
2. Analyzing the Organization and the Environment: SWOT Analysis
3. Matching the Organization and Its environ

Strategic Goal

goal derived directly from a firm's mission statement

SWOT Analysis

identification and analysis of organizational strengths and weaknesses and environmental opportunities and threats as part of strategy formulation

Environmental Analysis

process of scanning the business environment for threats and opportunities

Organizational Analysis

process of analyzing a firm's strengths and weaknesses