Managing the Business Enterprise

normaldeerManagement

Nov 20, 2013 (3 years and 9 months ago)

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Fourth Edition

Copyright ©2003 Prentice Hall, Inc.

PART 2 . . . . . . . . . . . . . . . . . . . . . . . .

Understanding the Business of Managing

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Chapter 5

Managing the Business
Enterprise

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“Some men see things as they
are and say why.


I dream of things that never
were and say why not.”



~ John F. Kennedy

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Key Topics

Setting goals and formulating strategies

The management process

Types of managers by level and area

The five basic management skills

The development and importance of
corporate culture

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Managers are
responsible for
business performance
and effectiveness.

Managers are
accountable to all key
stakeholders.

EFFECTIVE MANAGERS

An Invaluable Resource for Business

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Strategy:

The broad set
of action plans to achieve
company goals

Corporate Strategy

Business Strategy

Functional Strategy

Setting Goals Is the Starting Point

of Effective Management


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Business Goals Are Performance Targets

The purposes of goal
-
setting:

To provide direction for managers

To help firms allocate resources

To help define corporate culture

To help managers assess performance

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Effective Organizations Set Goals
at Many Different Levels

Mission Statement:

How a business will
achieve its fundamental purpose

Long
-
term Goals

Intermediate Goals

Short
-
term Goals

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A Well
-
Formulated Strategy Is Vital
to a Business’s Success

Strategy Formulation

Set
Strategic
Goals

Analyze the
Organization

Analyze the
Environment

Match the
Organization
and its
Environment

Formulate
Strategy

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The Management Process

Planning

Strategic

Tactical

Operational

Contingency

Crisis

Organizing

Directing

Controlling

The Control Process

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Establish Standards

Measure Performance

Does measured
performance match
standards?

YES

NO

Continue Current

Activities

Adjust Performance
or Standards

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Levels of Management

Top
Managers

Top
Managers

Middle
Managers

Middle
Managers

Middle
Managers

First
-
Line
Managers

First
-
Line
Managers

First
-
Line
Managers

First
-
Line
Managers

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Human
Resources

Marketing

Financial

Operations

Information

Other

Areas of Management

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Basic Management Skills

Human
Relations
Skills

Technical
Skills

Conceptual
Skills

Time
Management
Skills

Decision
-
Making Skills

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How to Spot the E
-
CEO

Traditional CEO

Encouraging

Alert

Cordial

Fast moving

Anti
-
ambiguity

Age: 57

Rich

E
-
CEO

Evangelizing

Paranoid

Brutally frank

Faster moving

Pro
-
ambiguity

Age: 38

Richer

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Management Skills for the Future

Global Management
Skills

Information &
Technology Skills

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Management Is Tightly Linked to

Corporate Culture

Corporate Culture:

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

Communicating
the Culture

Managing
Change

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Chapter Review

Explain the importance of setting goals and
formulating strategies.

Describe the management process.

Identify types of managers by level and area.

Describe the basic management skills.

Explain the development and importance of
corporate culture.