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LEARNING OBJECTIVES
After reading this chapter, you should be able to:
1. Describe the nature of management and identify the four basic functions that constitute the management process.
2. Identify different types of managers likely to be found in an organization by level and area. 3. Describe the basic skills required of managers. 4. Explain the importance of strategic management and effective goal setting in organizational success.
2009 Pearson Education, Inc.
L E A R N I N G O B J E C T I V E S (contd)
After reading this chapter, you should be able to: 5. Discuss contingency planning and crisis management in todays business world. 6. Describe the development and explain the importance of corporate culture.
Controlling
Monitoring Performance
Organizing
Structuring
Leading
Guiding and Motivating
2009 Pearson Education, Inc.
Planning
The Planning Process
Determining firms goals Developing strategy for achieving goals Designing tactical and operational plans for implementing the strategy
Organizing
The Organizing Process
Arranging resources and activities in a coherent structure
Prepare organizational charts to help everyone understand roles and reporting relationships
Leading
Leading
Guiding and motivating employees to meet the organizations objectives
Uniting employees in a clear and targeted manner and motivating them to work in the best interests of the employer
Types of Managers
Levels of Management
Top managers: Responsible for the overall performance of the firm
Areas of Management
Human Resources
Operations
Marketing
Information
Financial
Other
DecisionMaking Skills
time-management skills
Four leading time wasters:
Paperwork Telephone calls Meetings E-mail
Goals
Objectives that a business hopes and plans to achieve
Strategy
The broad set of action plans to achieve company goals
SWOT Analysis
A. B. C. D. STRENGTHS - internal, positive WEAKNESSES - internal, negative OPPORTUNITIES - external, positive THREATS - external, negative
Mission Statement
A statement of how a business will achieve its fundamental purpose
Types of Strategy
Corporate Strategy
Determines what business or businesses a company will own and operate
Growth
Related diversification Unrelated diversification
Retrenchment
Downsizing and divestiture
Functional Strategy
Guides managers in specific areas such as marketing, finance, and operations in deciding how best to achieve corporate goals by performing their functional activities most effectively
Formulating Strategy
Step 1: Setting Strategic Goals Strategic goals are derived from a firms mission statement Step 2: Analyzing the Organization and the Environment: SWOT Analysis Assessing internal strengths and weaknesses and external opportunities and threats
Environmental analysis Organizational analysis
Step 3: Matching the Organization and Its Environment Matching environmental threats and opportunities against corporate strengths and weaknesses
2009 Pearson Education, Inc.
A Hierarchy of Plans
Strategic Plans
Reflect decisions about resource allocations, company priorities, and the steps needed to meet strategic goals
Tactical Plans
Shorter-term plans for implementing specific aspects of the companys strategic plans
Operational Plans
Mid-level and lower-level managers set shortterm targets for daily, weekly, or monthly performance 2009 Pearson Education, Inc.
Crisis Management
Involves an organizations methods for dealing with a crisisan unexpected emergency requiring immediate response
2009 Pearson Education, Inc.
Key Terms
business (or competitive) strategy conceptual skills contingency planning controlling corporate culture corporate strategy crisis management decision-making skills leading environmental analysis first-line manager functional strategy goal human relations skills intermediate goal long-term goal management middle manager mission statement organizational analysis organizing operational plan planning short-term goal strategic goal strategic management strategic plan