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Understanding The Business of Managing: Session 1

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Raahim Najmi
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42 views

Understanding The Business of Managing: Session 1

Uploaded by

Raahim Najmi
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 36

UNDERSTANDING THE

BUSINESS OF MANAGING
Session 1
Chapter Outline
• Who Are Managers?
• The Management Process
• Types of Managers
• Basic Management Skills
• Setting Goals and Formulating Strategy
• Management and the Corporate Culture
What Is An Organization?
– a deliberate arrangement of people to
accomplish some specific purpose
• elements of definition
–each organization has a distinct
purpose
–each organization is composed of
people
–all organizations develop some
deliberate structure
https://www.youtube.com/watch?v=f60dheI4ARg
Who Are Managers?
– someone who works with and through other
people by coordinating their work activities in
order to accomplish organizational goals
– A manager’s job is not about personal
achievement it’s about helping others to do their
work and achieve organizational goals
• coordinating the work of group or
department
• supervision
Who Are Managers?
• Manager
Someone who coordinates and oversees the work of other
people so that organizational goals can be
accomplished.

1–5
What managers do?

Allocate Resources

Human Financial Physical Information

1–6
What Is Management?
Process of planning,
organizing, directing
and controlling an
organization’s
resources to achieve its
goals
Using the functions of…..

© 2007 Prentice Hall, Inc. All rights reserved. 1–8


Who Are Managers?
All corporations depend on
effective management.
The principles of
management apply to all
kinds of organizations.
Managers are among an
organization’s most
important resources
What Is Management?
• The use of key skills and practices
designed to help the organization
reach its highest goals

• Managerial Concerns
– Efficiency
• “Doing things right”
– Getting the most output
for the least inputs
– Effectiveness
• “Doing the right things”
– Attaining organizational
goals

© 2007 Prentice Hall, Inc. All rights reserved. 1–10


Key shifts in Management
• How decisions are made
– Moving away from hierarchy and power
– Instead they are tapping into the wisdom and
expertise of people at all levels of the organization
– Yields better decisions and increase engagement
• How organizations coordinate business activity
– Instead of using bureaucracy and rigid roles
– Organizations are moving towards more agile,
collaborative and flexible models
– Managers are giving employees more autonomy and
independence
1–11
The Management Process
• Planning:
determines what an organization needs to do and
how best to get it done
• Organizing:
determines how best to arrange an organization’s
resources and activities into a coherent structure
• Directing:
involves guiding and motivating employees to meet
an organization’s objectives
• Controlling
monitors an organization’s performance to make sure
that the firm is meeting its goals
The Control Process
Types of Managers
• Top managers:
are responsible to the board of directors and
stockholders for a firm’s overall performance and
effectiveness
• Middle managers
are responsible for implementing the strategies,
policies and decisions made by top managers
• First-line managers
are responsible for supervising the work of
employees
The levels and types of
Managers..

© 2007 Prentice Hall, 1–15


Inc. All rights reserved.
Areas of Management
• Human Resource Managers
• Operations Managers
• Marketing Managers
• Information Managers
• Financial Managers
• Other Managers
Basic Management Skills
• Technical skills are needed to perform specialized
tasks
• Human relations skills are required in understanding
and getting along with other people
• Conceptual skills are abilities to think in the abstract,
diagnose and analyze different situations and to see
beyond the present situation
• Decision-making skills include the ability to define
problems and select the best course of action
• Time management skills are associated with the
productive use of time
Skills Required for different levels of Management
….
Skills

Co
nc
e pt
u al
s ki
lls
Inte
rpe
rso
nal
Hu /
Tec

ma
n
h

Re
nica

lati
l

o
Ski

n
lls

© 2007 Prentice Hall, 1–18


Inc. All rights reserved.
The Decision-Making Process
What Are Goals?
• Objectives that a business hopes and
plans to achieve
What Is Strategy?
• Broad set of organizational plans for
implementing the decisions made for
achieving organizational goals
Types of Strategy
• Corporate strategy
determines the firm’s overall attitude toward growth
and the way it will manage its businesses or product
lines
• Business (or Competitive) strategy
takes place at the business-unit or product-line level
and focuses on a firm’s competitive position
• Functional strategy
involves managers in specific areas who decide how
best
to achieve corporate goals
through productivity
Hierarchy of Strategy
Purposes of Goal Setting
1. Goal setting provides direction and
guidance for managers at all levels.
2. Goal setting helps firms allocate
resources.
3. Goal setting helps to define corporate
culture.
4. Goal setting helps managers assess
performance
What Is a Mission Statement?
• Organization’s statement of how it will
achieve its purpose in the environment in
which it conducts its business
Kinds of Goals
• Long-term goals
are set for an extended time, typically
five years or more
• Intermediate goals
are set for a period of one to five years
• Short-term goals
• are set for the very near future, typically
less than one year
What Is Strategy Formulation?
• Creation of a broad program for
defining and meeting an
organization’s goals
Strategy Formulation
Setting Strategic Goals
• Strategic goals
are long-term goals derived directly
from a firm’s mission statement
– SWOT analysis is a process involving
the assessment of organizational
strengths and weaknesses (the S and
W) and environmental opportunities
and threats (the O and T)
Analyzing the Organization and Its
Environment
• Environmental analysis
is the process of scanning the business environment for
threats and opportunities

• Organizational analysis
is the process of analyzing a firm’s strengths and
weaknesses
Matching the Organization and Its
Environment
• The matching process is the heart of
strategy formulation.
• The matching process may determine
whether a firm typically takes risks or
behaves more conservatively
A Hierarchy of Plans
• Strategic plans
reflect decisions about resource allocations,
company priorities and steps needed to meet
strategic goals
• Tactical plans
• are shorter-range plans for implementing
specific aspects of the company’s strategic
plans
• Operational plans
• set short-term targets for daily, weekly or
monthly performance
Contingency Planning and Crisis
Management
• Contingency planning
• identifies aspects of a business or its
environment that might entail changes in
strategy
• Crisis management
• involves an organization’s methods for dealing
with emergencies
What Is Corporate Culture?
• The shared experiences,
stories, beliefs and norms
that characterize an
organization
• https://www.youtube.com/
watch?v=c1jlmdkApTQ
Communicating the Culture
Managers must:
– Understand the culture.
– Transmit the culture to others
in the organization.
– Maintain the culture by rewarding and
promoting those who understand it and
work toward maintaining
Managing Change
Three-stage process:
– Analysis of the company’s environment
highlights extensive change as the most
effective response to its problems.
– Top management begins to formulate a
vision of a new company.
– The firm sets up new systems for appraising
and compensating employees who enforce
the firm’s new values.

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