Fourth Edition Copyright ©2003 Prentice Hall, Inc. PART Understanding the Business of Managing
Copyright ©2003 Prentice Hall, Inc Chapter 5 Managing the Business Enterprise
Copyright ©2003 Prentice Hall, Inc “Some men see things as they are and say why. I dream of things that never were and say why not.” ~ John F. Kennedy
Copyright ©2003 Prentice Hall, Inc 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
Copyright ©2003 Prentice Hall, Inc Managers are responsible for business performance and effectiveness. Managers are accountable to all key stakeholders. EFFECTIVE MANAGERS An Invaluable Resource for Business
Copyright ©2003 Prentice Hall, Inc 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
Copyright ©2003 Prentice Hall, Inc 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
Copyright ©2003 Prentice Hall, Inc 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
Copyright ©2003 Prentice Hall, Inc 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
Copyright ©2003 Prentice Hall, Inc The Management Process Planning Strategic Tactical Operational Contingency Crisis Organizing Directing Controlling
The Control Process Establish Standards Measure Performance Does measured performance match standards? YESNO Continue Current Activities Adjust Performance or Standards
Copyright ©2003 Prentice Hall, Inc Levels of Management Top Managers Middle Managers First-Line Managers
Copyright ©2003 Prentice Hall, Inc Human Resources Marketing Financial Operations Information Other Areas of Management
Copyright ©2003 Prentice Hall, Inc Basic Management Skills Human Relations Skills Technical Skills Conceptual Skills Time Management Skills Decision- Making Skills
Copyright ©2003 Prentice Hall, Inc How to Spot the E-CEO Traditional CEO EncouragingAlertCordial Fast moving Anti-ambiguity Age: 57 RichE-CEOEvangelizingParanoid Brutally frank Faster moving Pro-ambiguity Age: 38 Richer
Copyright ©2003 Prentice Hall, Inc Management Skills for the Future Global Management Skills Information & Technology Skills
Copyright ©2003 Prentice Hall, Inc 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
Copyright ©2003 Prentice Hall, Inc 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.