1. Management Functions & Decision Making UNIT 4: CHAPTER 11

2. Nature of Management Managers make things happen in business. From the original idea for a business, through accumulating and determining the best ways to use the resources needed to operate the business, to managing people, managers are responsible for the success or failure of the company!

3. Management Activities Because there are so many types of managers, it is difficult to identify exactly what they do. However, there are a number of activities that all managers must perform no matter what part of the business they work. Management is the process of accomplishing the goals of an organization through the effective use of people and other resources.

4. Management Activities The primary work of all managers can be grouped into four functions: 1. Planning: involves analyzing information and making decisions about what needs to be done. 2. Organizing: is concerned with determining how plans can be accomplished most effectively and arranging resources to complete work. 3. Implementing: carrying out the plans and helping employees to work effectively 4. Controlling: evaluating results to determine if the company’s objectives have been accomplished

5. Management and Non- Management Employees A manager completes all four management functions on a regular basis and has authority over other jobs and people. A manager whose main job is to direct the work of employees is called a supervisor. They are typically the first level of management in a company and often have many non-managerial activities to perform as well.

6. Continued An executive is a top-level manager who spends almost all of his or her time on management functions. They have other managers reporting to them. Between an exec. and a supervisor there will be several levels of mid-managers. A mid-manager completes all of the management functions, but spends most of the time on one management function such as planning or controlling, or is responsible for a specific part of the company’s operations.

7. Effectiveness of Supervisors The effectiveness of a supervisors job is determined by three factors: 1. Quality of work of supervised employees 2. Efficient use of the company’s resources 3. Satisfaction of supervisors employees

8. Responsibilities of Supervisors Communicate the goals and directions Keeping management informed Evaluating and improving employee performance Motivating Employees Using Resources Wisely

9. Problems and Decision Making A problem is a difficult situation requiring a solution. Problems usually do not have single solutions. Instead they have a series of possible solutions. There may be several good solutions, but there may also be several poor solutions.

10. Steps in Problem Solving There are FOUR steps to Problem Solving 1. Identify the Problem 2. Determine Possible Solutions 3. Analyze the Solutions 4. Select Best Solution

11. Strategic VS. Operational Strategic Planning: is long term and provides broad goals and direction for the entire business Operational Planning: is short term and identifies specific activities for each area of the business

12. SWOT Analysis Internal Strengths Weaknesses External Opportunities Threats

13. Opportunities and Threats Companies want to identify any opportunities for expanding and improving the business and any threats the company faces from competition, changes in the economy, new laws and regulations and other factors outside the company.

14. Strengths and Weakness Companies want to evaluate their own capabilities and weaknesses. They want to reduce weaknesses and build on strengths.

15. Mission Statements A mission statement is a short, specific statement of the business’s purpose and direction. The mission flows out of a broad, lasting, and often inspirational vision of the company’s reason for existing.