9/30/2010
6‐1
Chapter Objectives
Managing For Business Success
1.
2.
3.
4
4.
5.
6.
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Efficiency/Effectiveness
6‐2
Identify functions of management
Understand how a company develops and implements strategic
plan
Discuss options for organizing a business & create organizational
chart
Explain how managers direct and motivate
Describe how managers monitor operations and assess
performance
Describe skills to be a successful manager
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6‐3
Management
6‐4
• “…the process of planning,
organizing, directing, and
controlling
t lli resources to
t achieve
hi
specific goals.”
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6‐5
Functions of Management
Planning
6‐6
•“…managers set goals and
determine the best way to
achieve them.”
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Strategic Plan
6‐7
Mission Statement
“…establishing an overall course of action.”
1)
2)
Mission Statement
Core Values/Beliefs
3)
4)
5)
SWOT
Goals & Objectives
Tactical/Operational Plans
•“…describes the purpose of
your organization
organization-- the reason
for
f it
its existence.”
i t
”
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Core Values
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6‐9
SWOT Analysis
• “…fundamental beliefs about what’s
important and what is and isn’t
appropriate in conducting company
activities.”
¾Strengths
¾Weaknesses
k
¾Opportunities
¾Threats
Examine internal and external
forces that affect the company.
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qGoals
Goals-- major accomplishments over long
period of time
qObjectives
Objectives-- short
short--term performance targets
that direct efforts toward goal
qOrganization
• Number of goals/objectives
• Change over time
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6‐10
“…company’s fit with its environment.”
“…link… to performance
evaluations and
compensation.”
Goals & Objectives
6‐8
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6‐11
Types Of Plans
6‐12
Strategic
‰
‰
‰
‰
Long-term
LongOverall course of action
Established by upperupper-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
Operationalplans and strategic plan
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Contingency vs. Crisis
6‐13
o Contingency PlanningPlanning- Identify aspects
o
•“…allocates resources
(people, equipment, and
money) to achieve a
company’s plans.”
most likely to be adversely affected
by change, develop alternative courses
of action
Crisis ManagementManagement- Create structure to
deal with emergencies
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Levels of Managers
Organizing
6‐14
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6‐15
Organizing:
Levels of Management
6‐16
Top Managers
Managers-- Responsible for health &
performance
Middle ManagersManagers- Oversee activities of
first-line managers
firstFirst-Line ManagersFirstManagers- Supervise &
coordinate employees
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Organizational Structure
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6‐17
Structure Activities
6‐18
™ Job Specialization – Dividing tasks into jobs
• “…arrangement of
positions…most appropriate for
your company at a specific point
in time.”
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ƒ Identify activities to be performed
ƒ Break activities into tasks
™ Departmentalization
Departmentalization-- Grouping jobs into
meaningful units
ƒ FunctionalFunctional- by skills/tasks
ƒ Divisional
Divisional-- accountable for performance
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Product Division
Baked
Goods
Packaged
Meats
Beverages.
Household
& BodyBody-Care
6‐19
4-19
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Customer Division
Personal-Care
Personal&
Hygiene
Products
Knitwear &
Other
Clothing
Process Division
6‐20
Medical
Devices
&
Diagnostic
Products
Prescription
Drugs
4-20
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6‐21
6‐22
Geographical Division
McDonald’s
Bowater
Thunder Bay
Northeast
S th
Southeast
t
Great Lakes
Tree
Cutting
Chemical
Processing
Midwest
Finishing
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Organization Chart
West
4-21
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6‐23
Notes--4-You
Notes
4-22
13‐24
•“…a diagram
delineating
g the
interrelationships of
positions...”
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Divisional
Organization Chart
6‐25
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Lines Of Authority
6‐27
6‐28
Delegating Authority
Delegation-- Entrusting work to
Delegation
subordinates
Responsibility & Authority
on specific
p
p
project
j
Centralization & Decentralization
z Span of ControlControl- Number of people reporting to
a manager
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• “…providing focus and
direction to others and
motivating them to achieve
organizational goals.”
6‐26
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z Chain of CommandCommand- Who reports to whom
z Unity of CommandCommand- One boss
z Matrix StructureStructure- Form teams to combine skills
Directing
Combined Divisional
and Functional Structure
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6‐29
6‐30
Leadership Styles
“…way of interacting with and influencing others.”
”Autocratic
”Democratic
”Laissez
Laissez--Faire
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Theories of
Effective Leadership
6‐31
³Transactional
Transactional-- Exercise authority
• “…comparing actual to
planned performance and
taking
ki necessary corrective
i
action…”
based rank in organization
³Transformational
Transformational-- Mentor /develop
p
subordinates by stimulating
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Control Process
Controlling
6‐32
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6‐33
Managerial Skills
Technical
Interpersonal
DecisionDecisionMaking
Conceptual
Time--Mgmt.
Time
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6‐34
Communication
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6‐35
How To Solve a Problem
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