1. Management
Class 16
BUS 20 Section 72192
Thursday

2. Management Defined
6-2
Management is a Process [actually a series of Processes]
To achieve organizational objectives
By using resources
Effectively and efficiently
In a changing environment

3. Interrelated Functions of Management

4. Manager’s Responsibility: Making People Efficient and Effective

5. Importance of Management Functions to Managers in Each Level

6. Managers set goals and determine the best way to achieve them
Planning
6-6
Managers set goals and determine the best way to achieve them
Exploring Business © 2009 FlatWorld Knowledge

7. Types Of Plans Strategic Long-term Overall course of action
6-7
Strategic
Long-term
Overall course of action
Established by upper-level managers
Implemented by managers at all levels
Tactical
Shorter term
Specify activities/resources needed to implement strategic plans
Operational- Detailed action steps taken to implement tactical plans and strategic plan
Contingency – defined courses of action to be taken in the event that the original plan changes
Crisis Management – action plans outlining steps to be taken in the en=vent of a crisis
Exploring Business © 2009 FlatWorld Knowledge

8. Where Planning Starts Objectives
The ends or results desired by the organization and are derived from the organization’s mission
Mission
The statement of an organization’s fundamental purpose and basic philosophy

9. Developing & Implementing Plans
The Means 
The End
Mission – What is a company’s business? It’s how you reach your vision. It’s the passion behind the company
Strategy – the broad plan. The “how” to achieve a goal or objective
 Tactics – actions taken to fulfill a strategy, the ways strategies are executed
Vision – What do we want to become? How does the company see itself? It’s measured by results.
Goal – the end toward which effort is directed
Objectives – specific, measurable actions achieved by what actions you take.

10. Business Planning

11. The Business Planning Pyramid
A properly organized business plan supports
Itself like a pyramid.
 For a company’s overall vision, there is
a defined mission
 For each goal, there are objectives
 Every objective has a strategy
 Each strategy employs tactics to achieve it

12. establishing an overall course of action
Strategic Planning
6-12
establishing an overall course of action
Mission Statement
Core Values/Beliefs
SWOT [assessment of company’s strengths, weaknesses,
opportunities & threats]
Tactical/Operational Plans
Contingency & Crisis Plans
Exploring Business © 2009 FlatWorld Knowledge

13. Mission Statement
6-13
Describes the purpose of your organization- the reason for its existence

14. Core Values
6-14
Fundamental beliefs about what’s important and what is and isn’t appropriate in conducting company activities
Exploring Business © 2009 FlatWorld Knowledge

15. Strengths Weaknesses Opportunities Threats SWOT Analysis
6-15
Assessment of a company’s fit with its environment
Strengths
Weaknesses
Opportunities
Threats
Examine internal and external forces that affect the company.
Exploring Business © 2009 FlatWorld Knowledge

16. Contingency vs. Crisis Planning
6-16
Contingency Planning- Identify aspects most likely to be adversely affected by change, develop alternative courses of action
Crisis Management- Create structure to deal with emergencies
Exploring Business © 2009 FlatWorld Knowledge

17. Goals & Objectives
6-17
Goals- major accomplishments over long period of time
Objectives- short-term performance targets that direct efforts toward goal
Organization
Number of goals/objectives
Change over time

18. Goals and Objectives Objectives are: Goals are: • Narrow & Specific
• Measurable
• Achievable
• Relevant
• Time-based
Goals are:
• broad
• general intentions
• intangible
• abstract
• can't be validated as is

19. Goals and Objectives put into context
Business: How to make money from spending money –
Engineering, Finance, Operations, Marketing, and Sales
Marketing: How to build demand with the market place –
Product, Price, Place, Promotion
Communications: How to promote effectively –
Messaging, Media

20. An Example of XYZ Company Meeting its Mission, Goals and Objectives
Mission - To make the XYZ company largest seller of premium candy
Goals & Objectives - Achieve share of market leadership in the
premium candy segment and be known as the most expensive
candy, but worth it.
Strategy - Convince consumers that XYZ candy is the best premium
candy by associating with high-end people and entities.
Tactics - Sample XYZ candy in high-end department stores.
TV and Print ads using wealthy celebrity endorsers

21. Objective – Increase Profitability
Increasing profitability is a common objective of
small and large businesses alike. As a manager,
what are some of the ways you can do this?

22. Objective – Increase Profitability
Operations side of the business:
 Reduce operational costs
Restructure jobs to eliminate redundancy
Improve work flow processes which will reduce
salary expenses
Source materials & inventory from lower-cost suppliers
Rethinking product lines can help ,eet profitability goals
 Offering a lower quality product line may boost revenue and profits
Marketing & Sales side of the business

23. Objective – Increase Market Share
Gaining market share from established competitors
is at the top of most small business' strategic
agendas.
As a manager of a small candle manufacturing
company, what are some of the marketing tactics
you can employ to do this?

24. Objective – Gaining Market Share
Marketing & Sales Tactics
 Reduce prices temporarily [penetration pricing] to
encourage new customers to try your product
 Increased investing in advertising, PR, social media to
help build brand awareness
 Offer promotions [coupons, etc.] as an incentive for both
New and existing customers to try your products/services.

25. Organizing
6-25
The process of allocating resources (people, equipment, and money) to achieve a company’s plans
Exploring Business © 2009 FlatWorld Knowledge

26. Staffing
Managers must ensure that the organization has enough employees with appropriate skills to do the work
Managers must also determine:
What skills are needed for specific jobs
How to motivate and train employees to do their assigned jobs
How much to pay employees
What benefits to provide
How to prepare employees for higher-level jobs in the firm at a later date

27. Levels of Managers Top Managers- Responsible for health & performance
6-27
Top Managers- Responsible for health & performance
Middle Managers- Oversee activities of first-line managers
First-Line Managers- Supervise & coordinate employees
Exploring Business © 2009 FlatWorld Knowledge

28. Organizing: Levels of Management
6-28
Exploring Business © 2009 FlatWorld Knowledge

29. Organizational Structure
6-29
Arrangement of position most appropriate for your company at a specific point in time
Exploring Business © 2009 FlatWorld Knowledge

30. Structure Activities Job Specialization – Dividing tasks into jobs
6-30
Job Specialization – Dividing tasks into jobs
Identify activities to be performed
Break activities into tasks
Departmentalization- Grouping jobs into meaningful units
Functional- by skills/tasks
Divisional- accountable for performance
Exploring Business © 2009 FlatWorld Knowledge

31. A diagram delineating the interrelationships of positions
Organization Chart
6-31
A diagram delineating the interrelationships of positions
Exploring Business © 2009 FlatWorld Knowledge

32. Organizational Chart
13-32

33. Divisional Organization Chart
6-33
Exploring Business © 2009 FlatWorld Knowledge

34. Combined Divisional and Functional Structure
6-34
Exploring Business © 2009 FlatWorld Knowledge

35. Lines Of Authority Chain of Command- Who reports to whom
6-35
Chain of Command- Who reports to whom
Unity of Command- One boss
Matrix Structure- Form teams to combine skills on specific project
Span of Control- Number of people reporting to a manager
Exploring Business © 2009 FlatWorld Knowledge

36. Delegating Authority Delegation- Entrusting work to subordinates
6-36
Delegating Authority
Delegation- Entrusting work to subordinates
Responsibility & Authority
Centralization & Decentralization

37. Directing
6-37
The process of providing focus and direction for employees and motivating them to achieve organizational goals
Exploring Business © 2009 FlatWorld Knowledge

38. way of interacting with and influencing others
6-38
Leadership Styles
way of interacting with and influencing others
Autocratic
Democratic [participatory]
Laissez-Faire [free –rein]
Exploring Business © 2009 FlatWorld Knowledge

39. Theories of Effective Leadership
6-39
Transactional- Exercise authority based rank in organization
Transformational- Mentor /develop subordinates by stimulating
Exploring Business © 2009 FlatWorld Knowledge

40. Where Do Managers Come From?
Good managers are made, not born:
Promoting employees from within
Hiring managers from other organizations
Hiring managers graduating from colleges and universities [for example, MBAs]

41. The Reality of Management: Make Decisions
There are only two basic activities of management:
Figuring out what to do despite uncertainty, great diversity, and an enormous amount of potentially relevant information
Getting things done through a large and diverse set of people despite having little direct control over most of them

42. Managerial Skills Technical Interpersonal Decision- Making Conceptual
6-42
Technical
Interpersonal
Decision- Making
Conceptual
Time-Mgmt.
Communication

43. Controlling
6-43
The process of comparing actual to planned performance, incorporating what’s working and taking necessary corrective action to improve what isn’t
Exploring Business © 2009 FlatWorld Knowledge

44. Control Process
6-44

45. How To Solve a Problem
6-45