Chapter 6 Business

Five Types

� The functions of management
� Kinds of managers
� Management skills
� Leadership
� Management decision making

Functions of management

The process of coordinating people and other resources to achieve the goal of the organization.

The four basic functions of managing:

a) Planning
b) Organizing
c) Leading and motivated
d) Controlling

Planning

Management must establish goals and how to accomplish them.

Mission statement

a statement of basic purposes for your existents it's what makes you different from competitors'

Mission statement should:
.

Tells who you are what you stand for what you do and why you do it
� Includes company ideals: honesty, courtesy, value, selection, education, etc.
� Should be two-four sentences
� Should show what you think is a perfect business
� Communication to the emp

After the mission statement is the strategic planning it have two opponents

Establishing goals an objectives

Goal

is an end result that an organization is expected to achieve over a 1 to ten year period

Establishing goals

Broader in slope
1 to 10 years horizon
Goals answers the questions what is the company expected to be achieve?

Establishing Objectives

Shorter period of time
It tells how you will achieve set goals

Objective

is a specific statement detailing what an organization intends to accomplish over a shorter period of time.

S.W.O.T Analysis

The identification and evaluation of a firm's strengths, weakness, opportunities and threats.

Strengths and weakness are _________________ that affect a company's capabilities

internal factors

Opportunity and threats are __________________ the organization

external factors

Strengths refer

to a firms favorable characteristics and core competencies

core competencies

( are approaches and processes that a company performs well that may give it an advantage over its competitors )

Opportunities refer

to favorable conditions in the environment that could produce rewards

Threats are

conditions that may prevent the form of reaching its objectives.

4 types of plans to achieve goals

Strategic Plans
Tactical(touch) plans .
Operational plans
Contingency plan

Strategic Plans

- Broadest plan develops as a guide for major policy setting and decision making.
� Broad major policy setting
� Long term goals
� Comes from the board of directors and top management.

Tactical(touch) plans

- smaller scale plan developed to implement a strategy
� On a smaller scale to implement strategic plans.
� Can be changed an up dated

Operational plans

a type of plan designed to implement tactical plans.
� Design to implement tactical plans
� Usually 1 year or less
� High to accomplish
� Specific

Contingency plan

outlines alternative course of action that may be taken if an organization's other plans are disrupted or become ineffective.

Organizing

Grouping of resources and activities to accomplish some end result in an efficient and effective manner.

Leading an motivating

Lead an motivate people or human resources

Lead -

influence people to work towards a common goal
.

Motivate-

provide reasons for people to work.

Controlling (checking)

The process of evaluating and regulating ongoing activities to ensure that goals are achieved

3 steps in the controlling function

� Set standards
� Measure performs and compare to standard
� Take corrective active if necessary

Kinds of managers

Two dimensions of managers the level within an organization (separated by responsibilities) and according to there area of management.

3 Levels of management

Top, Middle, and First-line

Top managers

Upper-level executive who guides and controls an organization's overall fortunes responsible for developing the organization's mission and determine the firm's' strategy.

Job titles: Chief Executive Officer CEO, Chief Operating Officer COO

Top Managers

Middle Managers

Implements the strategy and major polices developed by top management. Develops the tactical planes and operational plans and supervise the first line managers.

Job titles: Division manager, department manager, plant manager, and operations manager.

Middle Managers

First line Manager

Coordinates and supervises the activities of operating employees. They spend most of their time working with and motivating their employees, answering questions, and solving day-to-day problems

Job titles: office manager, supervisor, and foreman.

First line manager

Are of Management Specialization

Separated by common areas depends in the nature of the business.
The most common areas are finance, operations, marketing, human resources, and administration:

A financial manager

is primarily responsible for an organization's financial resources.

Operations manager

manages the systems that convert resources into goods and services

A marketing manager

is responsible for facilitating the exchange of products between an organization and its customers or clients.

Human resources manager

is charged with managing an organization's human resources programs

Administrative manager (also called a general manager)

\is not associated with any specific functional area but provides overall administrative guidance and leadership

Management Skills

Conceptual skills, analytic skill, interpersonal skills technical skills communication skills

Conceptual skills

involve the ability to think in abstract terms.

analytic skills

the ability to identify problems correctly, generate reasonable alternatives, and select the "best" alternatives to solve problems

interpersonal skills

the ability to deal effectively with other people

technical skills

specific skills needed to accomplish a specialized activity

communication skills

the ability to speak, listen, and write effectively

What affects managers?

Skills

Leadership

The ability to influence an affect the behaviors of others.

Two types of leadership:

Formal and informal leadership

Formal leaders

have legitimate power of position. They have authority within an organization to influence others to work for the organization's objectives.

Informal leaders

usually have no such authority and may or may not exert their influence in support of the organization

3 Leadership styles

Autocratic, participative, and entrepreneurial

Autocratic leadership

task oriented leadership style in which workers are told what to do and how to accomplish it; workers have no say in the decision-making process

Participative leadership

style in which all members of a team are involved in identifying essential goals and developing strategies to reach those goals

Entrepreneurial leadership

personality-based leadership style in which the manager seeks to inspire workers with a vision of what can be accomplished to benefit all stakeholders

What would be the better leadership?

Depends on the business

Managerial Decision Making

the act of choosing one alternative from a set of alternatives.

4 Steps of Decision making:

1. Identify the problem or opportunity
2. Generate alternatives
3. Select an alternative
4. Implementing and evaluating the solution
Problem is the discrepancy between an actual condition and a desired condition�the difference between what is occurring an