Chapter 5 - Managing the Business

Manager

Someone whose primary responsibility is to carry out the management process.

Management

The process of planning, organizing, leading, and controlling an organization's financial, physical, human, and information resources to achieve it's 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 in a coherent structure.

Leading

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

Controlling

The process of monitoring a firm's performance to make sure that it is meeting it's goals.

Common Titles for Top Managers

President, Vice-President, Treasurer, Chief Executive Officer, and Chief Financial Officer.

Top Manager

Manager responsible for a firm's overall performance and effectiveness.

Common Titles for Middle Managers

Plant manager, Operations manager, and division manager.

Middle Manager

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

Common Titles for First-Line Managers

Supervisor, Office manager, Project manager, and group leader.

First-Line Manager

Manager responsible for supervising the work of employees.

Human Resource Manager

Hires and trains employees, evaluates performance, and determines compensation.

Operations

Refers to the systems by which a firm produces goods and services.

Operations Manager

Responsible for production, inventory, and quality control.

Marketing Manager

Responsible for getting products from producers to consumers.

Information Manager

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

Financial Manager

Plan and oversee the company's accounting functions and financial resources.

Interpersonal Roles

A category of managerial roles including figurehead, leader, and liaison.

Informational Roles

A category of managerial roles including monitor, disseminator, and spokesperson.

Decisional Roles

A category of managerial roles including entrepreneur, disturbance handler, resource allocator, and negotiator.

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

Includes the ability to effectively define a problem and to select the best course of action.

Time Management Skills

The productive use that managers make of their time.

Leading Causes of Wasted Time

Paperwork, telephone calls, meetings, e-mail.

Strategic Management

The process of helping an organization maintain an effective alignment with it's environment.

Goals

Objectives that a business hopes and plans to achieve.

Strategy

A broad set of organizational plans for implementing the decision made for achieving organizational goals.

Purpose of Goal Setting

Provides direction and guidance for managers at all levels, helps firms allocate resources, helps to define corporate culture, helps managers assess performance.

Mission Statement

Organization's statement of how it will achieve it's purpose in the environment in which it conducts it's 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 in the future.

Short-Term Goal

Goal set for the near future.

Corporate Strategy

Strategy for determining the firm's overall attitude toward growth and the way it will manage its business or product lines.

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.

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.

Strategic Plan

Plan reflecting decisions about resource allocations, company priorities, and steps needed to meet strategic goals.

Tactical Plan

Generally short-term plan concerned with implementing specific aspects of a company's strategic plans.

Operational Plan

Plan setting short-term targets for daily, weekly, or monthly performance.

Contingency Planning

Identifying aspects of a business or it's environment that might entail changes in strategy.

Crisis Management

Organization's methods for dealing with emergencies.

Corporate Culture

The shared experiences, stories, beliefs, and norms that characterize an organization.