1-1 Review ●Name the four functions of management. ●What are the main levels of management? ●What is scientific management? ●What is administrative management? ●What is behavioral management?

1-2 Planning and Decision Making Goal Setting Theory ●Why have goals? –Unified direction –Affects other plans –Motivation –Evaluation Practice Example – sales – high margin or revenue? Eisenhower / Churchill

1-3 Vision Statement Theory ●A vision statement is the company’s view of the future. –Provides direction ●Can be an inspiration Practice ●Example: Microsoft’s initial vision was a computer on every desk and in every home. ●Example: Sun Microsystems vision that “The network is the computer.” ●Apple vision video

1-4 Mission Statement Theory ●A Mission statement tells you the fundamental purpose of the organization. It concentrates on the present. It defines the customer and the critical processes. (Wikipedia) Practice ●Sears - Our Mission is to serve, delight and engage our Members while they shop their way. ●GM - to design, build and sell the world's best vehicles. ●Mission statements are often a mess.

1-5 Strategy Theory ●A Strategy is a long term plan of action designed to achieve a particular goal, most often "winning." (Wikipedia) ●The high-level plan for achieving the goals of the business

1-6 Strategy Practice ●E.g., if the goal of the company is to become international, possible strategies are: –A multi-domestic strategy –A global strategy –A transnational strategy –A home replication strategy

1-7 Which comes first? ●Logically: –Vision –Mission –Strategy ●But not necessarily done in that order.

1-8 Goals Set by Level Theory ●Corporate – strategic ●Mid-management –tactical ●First Level –Operational Practice ●Netflix

1-9 Goals/Objectives Theory ●Should be SMART –Specific –Measurable –Achievable –Timely Practice ●Objectives may conflict –E.g. speed vs. quality ●Can not satisfy everyone

1-10 Contingency Planning Practice ●Plan for the unexpected –Revenue shortfall –Rise in costs –Floods –Power outage  Telephone companies  Financial institutions –Terrorist acts ●Document the plan ●Identify the event ●Identify the actions

1-11 Operational Planning Practice ●Single-use plans –Program  E.g. introduce new product –Project  Build the Olympic site  Create a new product ●Standing Plans –Policies, eg. Harassment –Standard Operating Procedures (SOP), e.g. vouchers, merit review, promotion –Rules and Regulations

1-12 Barriers to Planning Practice ●Inappropriate goals –Maybe can’t measure, aren’t SMART ●Improper reward system –Rewards drive behavior –E.g. make sales calls at expense of support ●Dynamic and complex environment –Can Google have a 10 year plan? ●Reluctance to establish goals ●Resistance to change ●Constraints –Money, time

1-13 Management By Objectives (MBO) Theory ●Formal process for objective setting ●Top-down ●Rewards and evaluations based upon meeting objectives Practice ●Discuss –Good –Not so good

1-14 Videos ●Griffin DVD - Chapter 3, Finagle a Bagel