1. Gen. Business ENT1020 What You Need To Learn:
1. demonstrate goal-setting and problem-solving strategies that facilitate change:
1.4 research legal obligations that affect the venture
1.5 outline a human resources plan
By understanding the material discussed in this section, you’ll be better prepared to:
Highlight various management responsibilities yourself
More effectively assess and appreciate the quality of management in various companies from the perspective of a consumer or investor

2. Who Are Managers? Good Managers
Are responsible for business performance and effectiveness
Effective—do the right things; achieve goals
Efficient—do things right; lower costs
Are accountable to all key stakeholders
Develop strategic plans and tactical plans
Analyze their competitive environments and plan, organize, direct, and control day-to-day operations
First, let’s define managers. Good managers:
Are responsible for business performance and effectiveness
Effective means doing the right things and achieving goals
Efficient means doing things right and achieving lower costs
Are accountable to all key stakeholders
They develop strategic plans and tactical plans
They analyze their competitive environments and plan, organize, direct and control day-to-day operations
Teaching Tips:
Please return to your student team and choose one of the ways good managers are accountable to all key stakeholders. Develop an example of what they might do within the area you chose. We will share the answers with the class.
Answers will vary, but should reflect:
Developing strategic plans
Developing tactical plans
Analyzing their competitive environments
Planning day-to-day operations
Organizing day-to-day operations
Directing day-to-day operations
Controlling day-to-day operations
© 2009 Pearson Education, Inc.

3. The Management Process
The process of planning, organizing, leading, and controlling a firm’s financial, physical, human, and information resources to achieve its goals
Planning Setting Goals
Controlling Monitoring Performance
Organizing Structuring
Let’s review management: It is the process of planning, organizing, leading, and controlling a firm’s financial, physical, human and information resources to achieve its goals.
The steps in the management process include:
Planning: setting goals
Organizing: structuring
Leading: guiding and motivating
Controlling: monitoring performance
Teaching Tips:
In your student teams, please choose one of these four steps in the management process. Return to an example company that you have discussed earlier, either this week or during another class session. Please provide two examples of the management process step your team chose. Let’s discuss them with the class.
Answers will vary.
Leading Guiding and Motivating
© 2009 Pearson Education, Inc.

4. Planning The Planning Process Determining firm’s goals
Developing strategy for achieving goals
Designing tactical and operational plans for implementing the strategy
Let’s examine the planning process:.
First it entails determining the firm’s goals. These can include establishing where the company wants to be in six months, one year, three years or five years. The firm’s goals answer the question, “Where do we want to go?”.
Next we need to develop strategy for achieving the goals. This strategy tells us how we are going to get where we want to go.
Then we design tactical and operation plans for implementing the strategy. These tactics allow us to follow our strategy and achieve our goals. We may need to adjust tactics and operations if we judge that we are off the mark in meeting our goals. These tactics answer the question, “Did we arrive where we wanted to be?”.
Teaching Tips:
In your student teams, please choose a different company, one that you buy products from or are familiar with in the marketplace. Then prepare a simulated new goal for the company, develop a sample strategy for achieving the goal and, finally, design a tactical or operational example of implementation steps for your new strategy. We will then share our examples with the class.
Answers will vary. Be sure each student team is addressing each of the three points made above in the planning process.
© 2009 Pearson Education, Inc.

5. The Organizing Process
Arranging resources and activities in a coherent structure
Prepare organizational charts to help everyone understand roles and reporting relationships
The organizing process includes arranging resources and activities in a coherent structure. This can include preparing organizational charts to help everyone understand roles and reporting relationships.
Organizational charts can be shaped like a pyramid, with one CEO at the top, a number of vice presidents reporting to the CEO or President, and then different functional areas reporting to the vice presidents.
Organizational charts can also be horizontal in nature, with many dotted line relationships between teams or divisions.
Teaching Tips:
Form a new team of two students. Within your team, please draw an example of an organizational chart for a company with whom you are somewhat familiar. Discuss what this type of organizational chart or structure might mean within that company. We will share our ideas with the class.
Answers could include many different types of organization charts, from very hierarchical to very horizontal, or somewhere in between. Be sure the examples from the companies discussed match the style of organizational chart prepared by each team.
© 2009 Pearson Education, Inc.

6. Leading
Leading
Guiding and motivating employees to meet the organization’s objectives
Uniting employees in a clear and targeted manner and motivating them to work in the best interests of the employer
Let’s examine the organizational function of leading. Leading involves guiding and motivating employees to meet the organization’s objectives.
To lead within an organization is to unite employees in a clear and targeted manner and motivate them to work in the best interests of the employer.
Teaching Tips:
In your student teams, continue to discuss the company for which you just prepared an organizational chart. Please discuss the type of leadership you believe would guide and motivate employees to meet the organization’s objectives. Please consider whether the type of leadership you suggest would unite employees and motivate them.
Answers will vary.
© 2009 Pearson Education, Inc.

7. The Controlling Process
Monitoring a firm’s performance to make sure that it is meeting its goals
Begins when management establishes standards, often for financial performance
Can serve as a basis for providing rewards or reducing costs
The Controlling Process involves monitoring a firm’s performance to make sure that it is meeting its goals.
This process begins when management established standards, often for financial performance.
This process can serve as a basis for providing rewards or reducing costs within the organization.
Teaching Tips:
Continuing in your same student teams and using the same company you have been discussing, please determine what types of standards would best help to monitor the firm’s performance. What type of standard might the company set to serve as a basis for providing rewards? Or reducing costs?
Answers will vary but could reflect financial ratios, return on investment, return on assets, dividends per share, etc. Cost comparisons with previous quarter results could be used as a basis for employee year-end bonuses.
© 2009 Pearson Education, Inc.

8. FIGRE 5.1 The Control Process
Let’s review the Control Process:
First the company needs to establish the standards, some like we just discussed. These could include return on investment, return on assets, meeting a specific sales goal for a quarter or year, etc.
The company then needs to measure the actual performance of the company against those standards.
If the measured performance matches the standards set, the company will most likely continue with its current tactics and strategies.
However, if the measured performance does not match the desired standards set, the company will need to adjust performance or adjust the standard that was set.
Teaching Tips:
In your student teams, please choose a standard that you may have suggested for your company example earlier in our discussion. Please establish what you believe would be a reasonable measurable standard that can be achieved within a specific timeframe and write it down. Please discuss in your teams whether you believe the company is meeting the standard you set or not and discuss consequences for the firm. Let’s share our results.
Answers will vary based on the type of firm chosen. Standards set should be measurable and time bound. The student’s measure and response to meeting or not meeting the standard should focus on reality and reflect the current state of the economy.
© 2009 Pearson Education, Inc.

9. Types of Managers Levels of Management
Top managers: Responsible for the overall performance of the firm
President, vice president, treasurer, CEO, CFO
Middle managers: Implement strategies and work toward goals set by top managers
Plant manager, operations manager, division manager
First-line managers: Work with and supervise employees
Supervisor, office manager, project manager, group leader
Let’s examine the types and levels of management that can exist within an organization:
Top managers are those who are responsible for the overall performance of the firm.
These can include the president, vice president, treasurer, CEO, CFO
Middle managers implement strategies and work toward goals set by top managers.
These can include plant managers, operations managers, division managers.
First-line managers work with and supervise other employees.
These can include supervisors, office managers, project managers or group leaders.
Teaching Tips:
In your student teams, please select one of the three levels of managers. Once you have selected the level of manager, please provide three examples of actual titles of managers and a basic one-sentence description of their duties.
Answers will vary but should reflect the three levels of managers discussed in this slide and should include specific titles such as those you reviewed. Descriptions of duties should reflect back on the definition of the three types of managers.
© 2009 Pearson Education, Inc.

10. Areas of Management Human Resources Operations Marketing Information
Here are some basic areas of management that you will find in most firms:
Human Resources, which manages the recruitment of new employees, employee benefits and record-keeping about employees.
Marketing, which manages getting information about the company’s product or service to the correct consumer market group.
Financial, which manages the costs, revenues and expenses of the firm.
Operations, which manages the actual production of the product or design and delivery of the service to the end user.
Information, which manages the information technology for the company.
Other, which could encompass many other areas depending on the type of business.
Teaching Tips:
In your student teams, please choose one of these areas of management we have just discussed. Please write down two management titles with a brief description of their responsibility within the firm. Let’s share our examples with the class.
Answers will vary but should fall within the six categories discussed above.
Financial
Other
© 2009 Pearson Education, Inc.

11. Basic Management Skills
Human Relations Skills
Technical Skills
Decision-Making Skills
Conceptual Skills
Let’s examine the basic management skills that are needed to be a good manager:
time-management skills: It is very important for a manager to be able to manage his or her agenda and schedule. It is important to create a “to do” list and stick to it, by prioritizing the things you need to get done in terms of dates or priorities. A manager should also keep track of time spent on phone calls or interruptions by other officemates. In some cases, managers schedule blocks of times during which to return phone calls.
Conceptual skills: Being able to analyze strategies and decisions as well as performance and outcome is essential as a manager. Thinking conceptually means a manager needs to see the big picture, or “fly at 20,000 feet” to view a situation from a holistic perspective.
Technical skills: Technical skills in one’s field of responsibility are key. For example, an accounting manager needs to have the technical skills to understand the concepts involved in accounting to manage this functional area. The same is true of a marketing, production, financial or human resources manager.
Human relations skills: To be a successful manager, a person needs to be able to relate successfully to those who report to him or her and be able to interact socially in teams of peers.
Decision-making skills: A manager needs to be able to take action on information provided or performance observed. Making the correct decision is all-important when managing in any capacity.
Teaching Tips:
In your student teams, please select one of the basic management skills we have just discussed. Then choose a specific management position. Then please discuss the specific skills needed within your chosen management skill that a specific type of manager would need to be successful.
Answers will vary but should focus around the discussion topics.
time-management skills
© 2009 Pearson Education, Inc.

12. time-management skills
Four leading time wasters:
Paperwork
Telephone calls
Meetings
There are four leading time wasters for managers as they work on time-management skills. Let’s review them:
Paperwork: One rule-of-thumb is to only handle a piece of paper once. Take care of the situation and don’t let it pile up!
Telephone calls: Try to limit calls to the business situation at hand and defer personal calls to break or lunch times. Some managers may wish to schedule a block of time to return phone calls from earlier in the day that they allowed to go to their voice mail while completing another project.
Meetings: In general, most organizations hold too many meetings. As a manager, when calling a meeting, be sure there are clear goals set and outcomes achieved for any meetings you call.
We are all aware how many crazy s and spam mails we receive. Try to limit your reading and responses to specific times during the day, checking frequently to make sure you have not missed a key issue. Some organizations prefer to work by , even when offices are located near to each other.
Teaching Tips:
In your student teams, choose one of the four leading time wasters. Then list at least three ways you can avoid wasting productive time with that particular process. We will share our answers with the class.
Answers will vary but could include some of the material discussed earlier.
© 2009 Pearson Education, Inc.

13. Strategic Management: Setting Goals and Formulating Strategy
Planning
Set goals (SMART)
Strategic, Measurable, Agreed Upon, Reasonable, Time Effective.
Goals
Objectives that a business hopes and plans to achieve
Strategy
The broad set of action plans to achieve company goals
Let’s examine strategic management, setting goals and formulating strategy.
Strategic management is the process of helping an organization maintain an effective alignment with its environment. For example, an organization needs to examine both its internal environment, which are elements within its control, such as people, places and things, as well as its external environments that are outside of its control.
Goals are a great starting point in effective strategic management. Goals are objectives that a business hopes and plans to achieve. These should be measurable within a specific period of time. For example, the goal of a company might be to sell 100,000 widgets within the next six months. The 100,000 widgets represents the amount of goods they are selling to the market and six months is the timeframe in which they will measure and hope to reach their goal. Goals answer the question, “Where do we want to be in a certain period of time?”.
Strategy is the broad set of action plans that are set into motion to achieve a company goal. The strategy answers the question, “How will we get there?” or “How will we achieve our goal of selling 100,000 widgets in the next six months?”.
Teaching Tips:
In our student teams, please think of a consumer products company that you are familiar with in terms of purchasing their products or using their services. Please state one business goal that is both measurable and time bound for that firm. Then please develop two strategies that will allow the firm to achieve its goal.
Answers will vary but should answer the questions, “Where do we want to go in what period of time?” and “How are we going to get there?”.
© 2009 Pearson Education, Inc.

14. SWOT Analysis STRENGTHS - internal, positive
WEAKNESSES - internal, negative
OPPORTUNITIES - external, positive
THREATS - external, negative