Instructor Lecture PowerPoints

normaldeerManagement

Nov 20, 2013 (3 years and 28 days ago)

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5

chapter

Business Essentials, 7
th

Edition

Ebert/Griffin

©

2009 Pearson Education, Inc.

Business Management

Instructor Lecture PowerPoints

PowerPoint Presentation prepared by

Carol Vollmer Pope Alverno College


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© 2009 Pearson Education, Inc.

2

After reading this chapter, you should be able to:

1.
Describe the nature of management and identify the four
basic functions that constitute the management process.

2.
Identify different types of managers likely to be found in an
organization by level and area.

3.
Describe the basic skills required of managers.

4.
Explain the importance of strategic management and
effective goal setting in organizational success.





© 2009 Pearson Education, Inc.

L E A R N I N G O B J E C T I V E S

After reading this chapter, you should be able to:

5.
Discuss contingency planning and crisis
management in today’s business world.

6.
Describe the development and explain the
importance of corporate culture.

L E A R N I N G O B J E C T I V E S (cont’d)

© 2009 Pearson Education, Inc.

What’s in It for Me?


By understanding the material discussed in
this chapter, you’ll be better prepared to:


Carry out various management responsibilities
yourself


More effectively assess and appreciate the quality
of management in various companies from the
perspective of a consumer or investor

© 2009 Pearson Education, Inc.

Who Are Managers?


Good Managers


Are responsible for business performance
and effectiveness


Effective

do the right things; achieve goals


Efficient

do things right; lower costs


Are accountable to all key stakeholders


Develop strategic plans and tactical plans


Analyze their competitive environments and
plan, organize, direct, and control day
-
to
-
day
operations

© 2009 Pearson Education, Inc.

The Management Process

Leading

Guiding and Motivating

Controlling

Monitoring Performance

Planning

Setting Goals

Organizing

Structuring


Management


The process of planning, organizing, leading, and
controlling a firm’s financial, physical, human,
and information resources to achieve its goals

© 2009 Pearson Education, Inc.

Planning


The Planning Process


Determining firm’s goals


Developing strategy for achieving goals


Designing tactical and operational plans for
implementing the strategy


© 2009 Pearson Education, Inc.

Organizing


The Organizing Process


Arranging resources and activities in a
coherent structure


Prepare organizational charts to help everyone
understand roles and reporting relationships

© 2009 Pearson Education, Inc.

Leading


Leading


Guiding and motivating employees to meet the
organization’s objectives


Uniting employees in a clear and targeted manner and
motivating them to work in the best interests of the
employer

© 2009 Pearson Education, Inc.

Controlling


The Controlling Process


Monitoring a firm’s performance to make sure
that it is meeting its goals


Begins when management establishes standards,
often for financial performance


Can serve as a basis for providing rewards or reducing
costs

© 2009 Pearson Education, Inc.

FIGRE 5.1 The Control Process

© 2009 Pearson Education, Inc.

Types of Managers


Levels of Management


Top managers:

Responsible for the overall performance of
the firm


President, vice president, treasurer, CEO, CFO


Middle managers:

Implement strategies and work toward
goals set by top managers


Plant manager, operations manager, division manager


First
-
line managers:

Work with and supervise employees


Supervisor, office manager, project manager, group
leader

© 2009 Pearson Education, Inc.

Human
Resources

Marketing

Financial

Operations

Information

Other

Areas of Management

© 2009 Pearson Education, Inc.

Basic Management Skills

Human
Relations
Skills

Technical
Skills

Conceptual
Skills

time
-
management
skills

Decision
-
Making
Skills

© 2009 Pearson Education, Inc.

time
-
management skills


Four leading time wasters:


Paperwork


Telephone calls


Meetings


E
-
mail


© 2009 Pearson Education, Inc.

Management Skills for the 21st Century


Global Management Skills


Understand foreign markets, cultural differences,
and the motives and practices of foreign rivals


Understand how to collaborate with others
around the world on a real
-
time basis


Management and Technology
Skills


Needed to process increasing
amounts of information

© 2009 Pearson Education, Inc.

Strategic Management:

Setting Goals and Formulating Strategy


Planning


Set goals (SMART)



Goals


Objectives that a business hopes and plans to achieve



Strategy


The broad set of action plans to achieve company goals

© 2009 Pearson Education, Inc.

SWOT Analysis

A.
STRENGTHS
-

internal, positive

B.
WEAKNESSES
-

internal, negative

C.
OPPORTUNITIES
-

external, positive

D.
THREATS
-

external, negative


Setting Business Goals


Goals


Performance targets that organizations and their managers
use to measure success or failure


Mission Statement


A statement of how a business will achieve its fundamental
purpose


Effective organizations set goals at many different
levels:


Long
-
term goals: five years or more


Intermediate goals: one to five years


Short
-
term goals: one year or less

© 2009 Pearson Education, Inc.

Purposes of Goal Setting


Goal Setting:



Provides direction and guidance for managers at
all levels



Helps firms allocate resources



Helps to define corporate culture



Helps managers assess performance

© 2009 Pearson Education, Inc.

Types of Strategy


Corporate Strategy


Determines what business or businesses a company will
own and operate


Growth


Related diversification


Unrelated diversification


Retrenchment


Downsizing and divestiture

© 2009 Pearson Education, Inc.

Types of Strategy (cont’d)


Business (or Competitive) Strategy


Focuses on improving the company’s competitive position
at the level of the business unit or

product line


Functional Strategy


Guides managers in specific areas such as marketing,
finance, and operations in deciding how best to achieve
corporate goals by performing their functional activities
most effectively

© 2009 Pearson Education, Inc.

Formulating Strategy

Step 1:

Setting Strategic Goals


Strategic goals are derived from a firm’s mission
statement

Step 2:

Analyzing the Organization and the Environment: SWOT
Analysis


Assessing internal strengths and weaknesses and
external opportunities and threats


Environmental analysis


Organizational analysis

Step 3:

Matching the Organization and Its Environment


Matching environmental threats and opportunities
against corporate strengths and weaknesses

© 2009 Pearson Education, Inc.

Figure 5.2 Strategy Formulation

© 2009 Pearson Education, Inc.

A Hierarchy of Plans


Strategic Plans


Reflect decisions about resource allocations,
company priorities, and the steps needed to meet
strategic goals


Tactical Plans


Shorter
-
term plans for implementing specific
aspects of the company’s strategic plans


Operational Plans


Mid
-
level and lower
-
level managers set short
-
term targets for daily, weekly, or monthly
performance

© 2009 Pearson Education, Inc.

Contingency Planning and Crisis Management


Contingency Planning


Planning for change


Seeks to identify in advance important aspects of
a business or its market that might change and the
ways in which a company will respond to changes


Crisis Management


Involves an organization’s methods for dealing
with a crisis

an unexpected emergency requiring
immediate response

© 2009 Pearson Education, Inc.

Management and the Corporate Culture


Corporate Culture


Is the shared experiences, stories, beliefs, and
norms that characterize an organization


Helps define the work and business climate that
exists in an organization


Communicating the Culture


Managers must understand the culture


Managers must transmit the culture to others in
the organization


Managers can support the culture by rewarding
and promoting those who understand it and
work toward maintaining it

© 2009 Pearson Education, Inc.

Managing Change in the Culture


Stages in the Change Process



At the highest level, analysis of the company’s
environment highlights extensive change as the most
effective response to its problems.



Top management begins to formulate a vision of a new
company.



The firm sets up new systems for appraising and
compensating employees who enforce the firm’s new
values.

© 2009 Pearson Education, Inc.

Key Terms

business (or competitive) strategy

conceptual skills

contingency planning

controlling

corporate culture

corporate strategy

crisis management

decision
-
making skills

leading

environmental analysis

first
-
line manager

functional strategy

goal

human relations skills

intermediate goal

long
-
term goal

management

middle manager

mission statement

organizational analysis

organizing

operational plan

planning

short
-
term goal

strategic goal

strategic management

strategic plan


© 2009 Pearson Education, Inc.

Key Terms (cont.)

strategy

strategy formulation

SWOT analysis

tactical plan

technical skills

time
-
management skills

top manager


© 2009 Pearson Education, Inc.