Instructor Lecture PowerPoints

slipalaskaManagement

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

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5

chapter

Business Essentials, 7
th

Edition

Ebert/Griffin

Business Management

Instructor Lecture PowerPoints

PowerPoint Presentation prepared by

Carol Vollmer Pope Alverno College


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

2

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.

3

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.

4

Who Are Managers?


Who are 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: they :


Develop strategic plans and tactical plans


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

© 2009 Pearson Education, Inc.

5

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.

6

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.

7

Let’s examine the planning process


1.
The firm’s goals answer the question, “Where do
we want to go?”. During
1
year more or less.

2.
Next we need to develop strategy for achieving
the goals. This strategy tells us how we are going to
get where we want to go.

3.
Then we design tactical and
operation plans
for
implementing the strategy. These tactics allow us to
follow our strategy and achieve our goals.
These
tactics answer the question, “Did we arrive
where we wanted to be

8

Homework

A.
Every one should prepare action
plan in one page that includes:
objective
-

strategy, activities and
others. Should be written in a form
of matrix.


9

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.

10

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.

11

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
. These could include return
on investment, return on assets, meeting a
specific sales goal for a quarter or year, etc.


Can serve as a basis for providing rewards
or reducing costs

©
2009
Pearson Education, Inc.

12

FIGRE 5.1 The Control Process

©
2009
Pearson Education, Inc.

13

Types of Managers


Levels of Management


Top managers:

Responsible for the overall
performance of the firm.


Titles: President, vice president, treasurer, CEO, CFO


Middle managers:

Implement strategies and work
toward goals set by top managers


Titles: Plant manager, operations manager, division
manager


First
-
line managers:

Work with and supervise
employees


Titles: Supervisor, office manager, project manager,
group leader

© 2009 Pearson Education, Inc.

14

Human
Resources

Marketing

Financial

Operations

Information

Other

Areas of Management

©
2009
Pearson Education, Inc.

15

Areas of Management

1.
Human Resources
, which manages the recruitment of
new employees, employee benefits and record
-
keeping
about employees.

2.
Marketing
, which manages getting information about
the company’s product or service to the correct
consumer market group. Perform the
4
s.

3.
Financial
, which manages the costs, revenues and
expenses of the firm.

4.
Operations
, which manages the actual production of
the product or design and delivery of the service to the
end user. Manages quality.

5.
Information
, which manages the information
technology for the company.


16

Basic Management Skills

Human
Relations
Skills

Technical
Skills

Conceptual
Skills

time
-
management
skills

Decision
-
Making
Skills

©
2009
Pearson Education, Inc.

17

Management skills

1.
time
-
management skills
: It is very important for a
manager to be able to manage his or her agenda
and schedule. It is important to create a “to do” list
and stick to it, by prioritizing the things you need to
get done in terms of dates or priorities.

2.
Conceptual skills
: Being able to analyze strategies
and decisions as well as performance and outcome
is essential as a manager. to view a situation from a
holistic perspective
.

18

Management skills

1.
Technical skills
: Technical skills in one’s field of
responsibility are key. For example, an accounting
manager needs to have the technical skills to
understand the concepts involved in accounting

2.
Human relations skills
: be able to interact socially
in teams of peers.

3.
Decision
-
making skills
: Making the correct
decision is all
-
important when managing in any
capacity.


19

time
-
management skills


Four leading time wasters:


Paperwork


Telephone calls


Meetings


E
-
mail


©
2009
Pearson Education, Inc.

20

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.

21


1
-
22

Strategic Management
:
a set of managerial decisions
and actions that determines the long
-
run performance
of a corporation.


Includes:


Internal and external environment scanning


Strategy formulation: vision, mission, goals, strategies.


Strategy implementation: objectives, activities, budget.


Evaluation and control


Prentice Hall, 2012 chapter 1

11
/
20
/
2013

Prentice Hall, Inc.
©
2012

Strategic Management:

Setting Goals and Formulating Strategy


Strategic Management


The process of helping an organization maintain an
effective alignment/arrangement with its
environment. Conduct SWOT.


Goals


Starting point in effective strategic management



Objectives that a business hopes and plans to achieve.
E.g., sell
100
,
000
units within the next
6
months.


Strategy


The broad set of action plans to achieve company
goals.
How will we achieve our goal of selling
100
,
000

©
2009
Pearson Education, Inc.

23

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. Business identity.


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.

24

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.

25

Types of Strategy


Corporate Strategy


Determines what business or businesses a company will
own and operate.
It includes
:

1
-

Growth


Related diversification


Unrelated diversification

2
-

Retrenchment


Downsizing and divestiture

3
-

Stability

© 2009 Pearson Education, Inc.

26

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.
Types
: cost leadership
-

differentiation
-

focus.


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.

27

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.

28

Example on IUG

Strength
: experience of signing
agreements with many U.

Weaknesses
: limited financial
resources.

Opportunities
: open cooperation with
Egyptian Universities.

Threats
: economic recession.

29

5

chapter

17/01/1435

6
-
30

TOWS Matrix

2012
Prentice Hall

Figure
5.2
Strategy Formulation

©
2009
Pearson Education, Inc.

31

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, involve
upper and mid
-
level management


Operational Plans


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

©
2009
Pearson Education, Inc.

32

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. E.g., expect to reach sale
10
%, but may not happen.


Crisis Management


Involves an organization’s methods for dealing
with a crisis

an unexpected emergency requiring
immediate response.

©
2009
Pearson Education, Inc.

33

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.

34

Stages in the Change Process in culture



changing organization culture is difficult, it takes
time.

-
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.

35

Homework

Page
75
, questions
1
-
6

36