MANAGING FOR BUSINESS SUCCESS CHAPTER 6
The Role of Management Managerial Functions
Henri Fayol’s 14 Principles of Management 1.Division of work 2.Authority 3.Discipline 4.Unity of Command 5.Unity of Direction 6.Subordination of interests to the general interest 7.Remuneration 8. Centralization 9. Scalar chain (line of authority) 10. Order 11. Equity 12. Stability of tenure of personnel 13. Initiative 14. Esprit de corps Source: Fayol 1916/1949
Managerial Functions Planning
A process that managers use to identify and select the appropriate business model and goals for their company. 1.Choose a business model Mission Statement: A short description of the organization’s purpose.
Part of Procter & Gamble’s Mission to Improve the Lives of Consumers Crest
Planning A process that managers use to identify and select the appropriate business model and goals for their company. 1.Choose a business model 2.Allocate resources
Leverage Problems S trength O pportunity W eakness T hreat SWOT Analysis
SWOT Analysis of Dell StrengthsWeaknesses ThreatsOpportunities #1 direct sale computer Strong in storage/server markets Low-cost operating model Profitable Low R&D spending Weak services position Small inventories Low-end & mid-range segments New markets International expansion Cyclical demand Upgrades/replacement demand Strong competition Interest/foreign currency rates Slow growth in PC market Slow growth in IT spending Source: Datamonitor 2004
Planning A process that managers use to identify and select the appropriate business model and goals for their company. 1.Choose a business model 2.Allocate resources 3.Set goals and objectives
Goals and Objectives To increase profits by 10% by To decrease product defects by 2% in To make the best peanut butter in the world.
Managerial Functions Planning Organizing
A process managers use to create a company’s organizational structure.
Organizational Design Creating a specific organizational structure and culture to profitably pursue the company’s business model profitably.
Functional Structures Company President or CEO ManufacturingMarketing/Sales Product Development Transportation/ Materials Management Human Resources
Divisional Structures Product (e.g., GE) Chief Executive Officer Light Bulbs Manufacturing Marketing/ Sales Product Development Materials Management Human Resources Washing Machines Electric Turbines …300+
Divisional Structures Product Market (Customer Type)
Chief Executive Officer Corporate Manufacturing Marketing/ Sales Product Development Materials Management Human Resources Small Business Home User Government Del Computing
Divisional Structures Product Market (Customer Type) Geography
Honda Chief Executive Officer North America Manufacturing Marketing/ Sales Product Development Materials Management Human Resources South America EuropeAsiaJapan
Matrix Structures Engineering Sales/ Marketing Manufacturing Materials Management Accounting CEO Team Project Manager
Managerial Functions Planning Organizing Leading
The ability to develop a plan and motivate others to pursue it.
Contingency Theory of Leadership Directive Supportive Participative Achievement-oriented
Managerial Functions Planning Organizing Leading Controlling
Evaluating whether or not a company is achieving its goals and taking action if it is not.
The Role of Management Levels of Managers