MANAGEMENT Definition. Pg 8 Modern Trends 5-6 A process Use of resources A goal or goals With other functions and people 14 Continuous innovations and improvement 22 Managing strategically 7 Modern Trends 5-6 Dynamic change Technology Globalization Diversity of workers and markets

MANAGEMENT What managers do 1. Achieving Objectives/Goals 2. Functions of Management 25 Various roles managers play 26 Efficient Use of Resources (see later slide) Skills managers need 32

Function of Management (Process of Management) 25 Planning Organizing Directing/ Leading Control

Managerial Roles Mintzberg 26 Interpersonal roles Figurehead, Leader, Liaison Informational roles Monitor, Disseminator, Spokesperson Decisional Roles Entrepreneur, Disturbance Handler, resource Allocator, Negotiator Do roles vary across levels of managers ? Across industries? In manufacturing and services ? In different countries ?

Two Measures of Managerial Work Effectiveness: Achieving objectives, goals Efficiency: Managing resources OUTPUT INPUT (OM chapters will call this Productivity)

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

Levels of Management Planning Horizon Long Medium Short Planning Type Strategic Tactical Operational Skills (32) Conceptional Human Technical TOP MIDDLE FIRST LEVEL

Introduction to Operations Management K pg. 188 Production of products or services 190 Using processes 190, The process view of the organization 191 Adding value. Value chain 197 Core and support processes Manufacturing v. Services 193 Trends: Productivity and quality improvement, 199; global competition, technology, ethical-environmental- diversity issues

OPERATIONS MANAGEMENT What operations managers do Setting objectives (also called “competitive priorities”) Then, Planning operations Organizing activities and resources Directing/Leading workers Operations control (monitoring)

Social Responsibility and Ethics M Chapter 5 Difference 161 Ethics: morality and standards of business conduct SR: organizations obligations to shareholders, employees, customers, society Overlapping: Spectrum of SR includes ethical responsibility SR: Economic, Legal, Ethical, Discretionary Efficiency and SR perspectives 172 Relevance to managers 45 Increased concern, Increase in enforcement, Corporate and director liability, Customer preferences, Employee morale

Social Responsibility and Ethics What organization do: Leadership, compliance officers 169 Code of ethics/Standards of Conduct 164; Policies; Values Statements Structures: compliance committees Rewards (whistle-blowing) and punishments 168 Training 167 Self reporting

Planning M Chapter 8 Why is planning important ? Legitimacy, Source for motivation/commitment, Guides to action/decisions, Performance standards Organizational levels 273 Corporate, Business, Functional Type of plans by level 270 Strategic, Tactical, Operational Setting objectives 279 Principles 288 MBO 291 Planning Process 275 Analyze environment incl. Forecasting, Set objectives, Determine requirements, Assess resource availabilities, Develop action plans, Implement action plans, Monitor.

Strategic Management M Chapter 6 Why do SM ? To gain competitive advantage 194 Characteristics of a competitive advantage 194- SM Process 197 Environmental analysis External Environment; Internal Environment Strategy Formulation Mission and LT objectives, Situation analysis, Corporate-business-functional strategies Strategy Implementation Policies, Action Plans (Programs), Budgets Evaluation and Control

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

EXTERNAL ENVIRONMENT 204 ECONOMY POLITICAL-LEGAL SOCIO-CULTURAL TECHNOLOGY GLOBAL/INTERNATIONAL COMPETITION CUSTOMERS SUPPLIERS

INTERNAL ENVIRONMENT 205 Value Chain/Resource based approach Functional area resources 205- Core competencies 209 Organization structure Dividing work, Authority & Responsibility, Information flow, decision making Corporate culture social responsibility and ethics, integration and intensity of competitive priorities

Mission and LT Objectives Mission statements. Purpose. Content Compare with Vision and Values Statements LT (Strategic ) Objectives 199

Integrating Internal and External Analysis (Situation Analysis) SWOT ANALYSIS 214 PORTFOLIO ANALYSIS 211 INDUSTRY/ COMPETITION ANALYSIS PRODUCT LIFE CYCLE ANALYSIS 209

ALTERNATIVE STRATEGIES BY LEVEL CORPORATE LEVEL(GRAND) GROWTH STABILITY RETIREMENT BUSINESS LEVEL: 200 COST LEADERSHIP DIFFERENTIATION FOCUS Generic strategies for competitive advantage. Also called “Competitive Priorities”: Cost/Price, Quality, Availability/ Dependability/Service/Speed, Flexibility/Variety FUNCTIONAL LEVEL: OPERATIONAL STRATEGY

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

OPERATIONS STRATEGY (Class discussion, later in an OM chapter ) PRODUCTS/SERVICES PROCESS TECHNOLOGY QUALITY WORK FORCE FACILITIES SUPPLIERS/VERTICAL INTEGRATION

STRATEGY IMPLEMENTATION POLICIES & PROCEDURES PROGRAMS BUDGETS 287

MANAGEMENT CONTROL M Chapter 16 Definition 568 Meaning – monitoring Basic Process 570 Establish standards, measure performance, compare and analyze, corrective action if necessary Scope of Control in an Organization Strategic, tactical, operational controls 577 Operational Controls: Preliminary, concurrent, feedback controls 589 Examples: budgetary control, quality control, process control, HR measures 580- Principles of effective control 590 Focus, amount, quality of information, flexibility, timeliness