MANAGEMENT 339: PRINCIPLES OF MANAGEMENT AND OPERATIONS What are the levels of the organization ? Corporate; Business; Functional. Page 130; Pg 151 What are levels of managers/management ? Top management, middle management, entry-level/first-level/supervisory Page 20 What are Principles of Management ? Principles applicable to all functions of the organization Principles applicable at all levels of the organization Principles useful to all managers

MANAGEMENT What all managers do Page 12 Achieving Objectives/Goals Functions/Process of Management Efficient Use of Resources Managing organizational change

MANAGEMENT Definition: Pg 5 Goal/objective directed A process involving management functions Resources: assembling and using Setting: Organizational - functions, people, coordination External environment

How good is our management ? Effectiveness: Achieving objectives, goals Efficiency: Managing resources OUTPUT INPUT

Efficiency Team A Team B Target Tickets Sold 200 150 250 $ Spent 100 200/100 150/50

Function of Management Pg 12 - Process of Management Planning Organizing Directing Control

Planning at Different Levels of Management Horizon Long Medium Short Planning Type Strategic Tactical Operational Skills (pg 20) Conceptual Human Technical TOP MIDDLE FIRST LEVEL

WHAT IS OPERATIONS MANAGEMENT ? OM Chapter 1 Activities that relate to creation of goods and services through transformation of inputs Relationship to other functional areas such as Marketing and Accounting Finance Key areas in OM Product/Service design/Process design/Capacity planning/facilities location and design (Layout)/Quality management/HR and job design/Supply chain management/Inventory and materials management/Operations planning and scheduling/Maintenance We will learn principles/methods to handle issues in these areas

KEY CONCEPTS IN OM OM Chapter 1 Process view OM chapter 1; pg. 5 Supply chain view. Pg 7 Operations Strategy: Areas for making long term plans in operations PRODUCTS/SERVICES PROCESS TECHNOLOGY QUALITY WORK FORCE FACILITIES SUPPLIERS/VERTICAL INTEGRATION Productivity Pg 19

Contemporary Challenges in Management and OM Pg 6- Technological changes Globalization Growth of service sector Emphasis on quality and productivity TQM and JIT philosophies Social responsibility and ethics Emphasis on integration, coordination using IT: SCM

Social Responsibility and Ethics Why relevant to business studies SR: obligation of an organization’s management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization Ethics: The code of moral principles and values that govern the behavior of a person or group with respect to what is right or wrong. Economic, legal, ethical and discretionary responsibilities What organizations can do: Leadership, code of ethics, Values statements, compliance committees/officers, policies (e.g. whistle-blowing), training, a corporate culture

An Overview of Planning Chapter 6 Purpose Direction, standards for measurement Types of plans Strategic, Tactical and Operational 146 Planning process Pg 151 Setting Objectives/Goals. 161 Principles: 161- Specific, Measurable, Realistic but challenging, Participation, Timely Tools: Budgets

Strategic Management. Chapter 5 Objective: Competitive advantage Characteristics of competitive advantage. 116- Superiority, inimitability, rarity, durability, non-substitutability, appropriate levels of profits/gains Strategic Management process 118- Strategic Intent/Vision/Mission Environmental Analysis Revised Vision/Mission and LT objectives Detailed situation analysis Formulate strategies Develop action for implementation: Programs, Policies, Budgets Plan monitoring

ENVIRONMENTAL SCANNING 119-: EXTERNAL ENVIRONMENT ECONOMY POLITICAL-LEGAL SOCIO-CULTURAL TECHNOLOGY GLOBAL/INTERNATIONAL COMPETITION Porter’s industry competition analysis 123- ; 126 CUSTOMERS SUPPLIERS

INTERNAL ENVIRONMENT FUNCTIONAL AREA RESOURCES ORGANIZATION STRUCTURE Finance, Marketing, Operations, HR, MIS, R&D ORGANIZATION STRUCTURE Dividing work, Authority & Responsibility, Information flow, decision making CORPORATE CULTURE Social responsibility and ethics, integration and intensity of competitive priorities

STRATEGIC MANAGEMENT FORMULATING STRATEGY EXT. ENVT. MISSION OBJECTIVES SITUATION ANALYSIS INT. ENVT. STRATEGY

SITUATION ANALYSIS SWOT ANALYSIS. 129 PORTFOLIO ANALYSIS. PRODUCT LIFE CYCLE ANALYSIS INDUSTRY/ COMPETITION ANALYSIS – See previous discussion

STRATEGY CORPORATE LEVEL(GRAND) GROWTH STABILITY RETIREMENT BUSINESS LEVEL: 131 COST LEADERSHIP DIFFERENTIATION FOCUS “Competitive Priorities”: Cost/Price Quality Availability Dependability OM Chap 1 Pg 14 FUNCTIONAL LEVEL: OPERATIONS STRATEGY

ACQUISITIONS & MERGERS GROWTH STRATEGIES CONCENTRATION DIVERSIFICATION VERTICAL INTEGRATION ACQUISITIONS & MERGERS

STRATEGY IMPLEMENTATION Pg 136- Organizing and Directing view Policies/procedures, Programs and Budgets view What are policies? Why important here? Programs are MT and ST plans Elements

MANAGEMENT CONTROL Chapter 14 The systematic process through which managers regulate organizational activities to make them consistent with expectations established in plans, targets, and standards of performance.

MANAGEMENT CONTROL Steps 402- SETTING STANDARDS MEASURING ACTUAL PERFORMANCE COMPARISON ANALYSIS CORRECTIVE ACTION/ NO ACTION

Scope and Stages of Management Control 407- Control at all levels: strategic, tactical and operational Preliminary control Concurrent control Post/Feedback control Examples of control: quality control, process control, employee evaluations, customer satisfaction surveys, supplier evaluations

Principles of Effective Control 419- Focus Amount of Quality of information Flexibility Timeliness