INTRODUCTION TO BUSINESS

Copyright by Paradigm Publishing, Inc.

INTRODUCTION TO
BUSINESS

CHAPTER 7

Managing Effectively

Copyright by Paradigm Publishing, Inc.

Levels of Management


Top (high
-
level) management: managers in positions such as
president, chief executive officer, chief financial officer, and vice
-
president who make decisions regarding the firm’s long
-
term
objectives.



Middle management: managers who are often responsible for the
firm’s short
-
term decisions.



Supervisory (first
-
line) management: managers who are usually highly
involved with the employees who engage in the day
-
to
-
day production
process.


Copyright by Paradigm Publishing, Inc.

Functions of Managers



Planning: the preparation of a firm for future
business conditions


Mission statement: a description of a firm’s
primary goal


Strategic plan: identifies a firm’s main business
focus over a long
-
term period, perhaps three to
five years.


Tactical planning: smaller
-
scale plans (over one
or two years) that are consistent with the firm’s
strategic (long
-
term) plan


Comparison of Responsibilities among Managers

Copyright by Paradigm Publishing, Inc.

Copyright by Paradigm Publishing, Inc.

Business plan

Mgt., Mktg., Fin, International


Short term : 12 months





Intermediate: 2
-
5 years


Long Term : 5 +


BE SURE THEY ARE MEASUREABLE (Use numbers
and dollars!)

Functions of Managers

Employers
commonly attempt
to establish tactical
plans that are
consistent with the
strategic plan.
They also develop
plans that are
intended to satisfy
the tactical plans.

Copyright by Paradigm Publishing, Inc.


How Planning Functions are Related

Copyright by Paradigm Publishing, Inc.

Copyright by Paradigm Publishing, Inc.

Functions of Managers


Planning


Organizing


Leading: the process of influencing the
habits of others to achieve a common goal.


Initiative: the willingness to take action.

Copyright Paradigm Publishing, Inc.

Functions of Managers


Leadership Styles


Autocratic: a leadership style in which the leader
retains full authority for decision making.


Free
-
rein: a leadership style in which the leader
delegates much authority to employees.


Participative: a leadership style in which the
leaders accept some employee input but usually
use their authority to make decisions.


PATERNALISTIC
–

seniority based,
fatherly/motherly, family, union

Functions of Managers

How
Leadership
Style Affects
Employee
Influence on
Management
Decisions

Copyright by Paradigm Publishing, Inc.

Copyright by Paradigm Publishing, Inc.

Functions of Managers


Controlling: the monitoring and evaluation of
tasks.


Control by Investors


Control of Reporting

Copyright by Paradigm Publishing, Inc.

Managerial Skills


Conceptual Skills


Interpersonal Skills: the skills necessary to
communicate with customers and employees.


Communication with Customers


Communication with Employees


Technical Skills


Decision
-
Making Skills

Please take note…..

Time Management

Priorities

Intervals

Interruptions

Goals

Delegate

Copyright by Paradigm Publishing, Inc.

How Managers Manage Time


Time Management: the way managers
allocate their time when managing tasks.


Set Proper Priorities


Schedule Long Time Intervals for Large
Tasks


Minimize Interruptions


Set Short
-
Term Goals


Delegate Some Tasks to Employees