Entrepreneurship
Resources,
processes,
organization and
team
The Importance of Management
Management –
planning, organizing, staffing, directing, & controlling
The success of an organization can be traced back to
the way it is managed.
Whether you are talking of a small to medium-sized
or a large establishment, management is so crucial to
be overlooked.
Achieving objectives requires skilled management
The Importance of Management
Process designed to achieve an
organization’s objectives by using its
resources effectively & efficiently in a
changing environment.
Management
The Importance of Management
What Managers Do
Make decisions – utilization of resources – achieve objectives:
•Planning
•Organizing
•Staffing
•Directing
•Controlling
The Importance of Management
New Product Development
It is the Conversion of customer need to a reality
based solution, creating the tangible product or
service from the intangible idea, Creation
of new wealth.
To success in implementing new products
development efforts generally require
significant resources and the opportunities in
the market.
The Importance of Management
Resource acquisition & coordination
Resources
•People
•Raw materials
•Equipment
•Money
•Information
Management Functions
Management Functions
Planning –
Process of determining the
organization’s objectives and
deciding how to accomplish them.
How and when to do the
appropriate so that goals can be
achieved either in the short term
or long term.
Remember, failing to plan is
planning to fail.
Management Functions
Planning
Objectives – results desired by organization
Mission – organization’s purpose and philosophy
Management Functions
Objectives
Common & Elaborate Organizational Objectives --
•Profit, competitive advantage, efficiency, growth
•Service, ethics, community responsibility
Management Functions
Plans
Strategic Plans
Tactical Plans
Operational Plans
Management Functions
Strategic Plans
Executive level managers
•Establish the long-range objectives & overall strategy
to fulfill firm’s mission
•2-10 years forward-looking
•Sustainability
•diversification, divestiture , mergers &
acquisitions,
Management Functions
Tactical Plans
Short-range – strategy implementation
•1 year or less
•Environmental change
•Periodically reviewed & updated
Management Functions
Operational Plans
Very short-term – actionable, specific
•Individuals, work groups, departments
•1 month, 1 week, 1 day
•Achieve tactical plans
Management Functions
Crisis Management
Contingency Planning
Focus on potential disasters
•Product tampering
•Oil spills
•Fire, earthquake, terrorist attack
•Unethical/illegal employee activity
Management Functions
Crisis/Contingency Planning
Contingency planning and crisis
management are not conflicting
concepts but instead work in tandem.
Contingency planning is the process of
preparing for potential emergencies,
while crisis management is the overall
management of emergencies when they
do occur.
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Management Functions
Organizing –
Structuring of resources & activities
to accomplish objectives efficiently
& effectively.
Management Functions
Organizing
Importance –
– Creates synergy
– Establishes lines of authority
– Improves communication
– Improves competitiveness
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Management Functions
Staffing –
Hiring people to carry out the work of the
organization.
Management Functions
Staffing
Importance –
– Recruiting
– Determine skills
– Motivate & train
– Compensation levels
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Management Functions
Downsizing –
Elimination of significant numbers of employees
(rightsizing, trimming the fat)
Management Functions
Directing –
Motivating and leading employees to achieve
organizational objectives.
Management Functions -- Directing
Motivation
•Incentives (raise, promotion)
•Employee involvement (cost reduction, customer service, new products)
•Recognition and appreciation
Management Functions
Controlling –
Process of evaluating and correcting activities to
keep organization on course,
Management Functions
Controlling
Five Activities –
– Measuring performance
– Comparing performance against standards
– Identifying deviations from standards
– Investigating causes of deviations
– Taking corrective action
Types of Management
Levels of Management –
• Top management
• Middle management
• First-line/supervisory management
Types of Management
Top Management
•President
•Chief Executive Officer (CEO)
•Chief financial officer (CFO)
•Chief operations officer (COO)
Levels of Management
Rank CEO Company Total Compensation ($
millions)
1. Lawrence J. Ellison Oracle $192.92
2. Frederic M. Poses Trane $127.10
3. Aubrey K. McClendon Chesapeake Energy $116.89
4. Angelo R. Mozilo Countrywide Financial $102.84
5. Howard D. Schultz Starbucks $98.60
The 5 Highest Paid CEO’s in 2007
Types of Management
Middle Management
•Responsible for tactical planning
•Implement general guidelines established by
top management
Types of Management
First-Line
Management
•Supervise workers
•Oversee daily operations
•Directing and controlling primary functions
Areas of Management
• Finance
• Production
• Operations
• Human Resources
• Marketing
• Administration
Areas of Management
Financial Management –
Focus on obtaining money necessary for the
successful operations and using funds to further
organizational goals.
Areas of Management
Production & Operations Management–
Develop & administer activities to transform
resources into goods, services, and ideas for the
marketplace.
Areas of Management
Human Resources Management –
Handle staffing function and deal with employees
in a formalized manner
Areas of Management
Marketing Management –
Responsible for planning, pricing, and promoting
products and making them available to
customers
Areas of Management
Information Technology (IT) Management –
Responsible for implementing, maintaining, and
controlling technology applications in business
(computer networks)
Areas of Management
Administrative Managers –
Manage an entire business or major segment of
the business. Coordinate activities of specialized
managers.
Skills Needed by Managers
•Leadership
•Technical expertise
•Conceptual skills
•Analytical skills
•Human relations skills
Managerial Skills
Leadership –
Ability to influence employees to work toward
organizational goals.
Managerial Skills
Seven Tips for Successful Leadership
Skills Needed by Managers
•Autocratic Leaders
•Decision makers, “tell” employees
•Democratic Leaders
•Involve employees in decisions
•Free-rein leaders
•Employees work without interference
Most Admired Companies & CEO’s
Company Chief Executive Officer
Apple Steve Jobs
Berkshire Hathaway Warren Buffett
General Electric Jeffrey Immelt
Google Eric Schmidt
Toyota Motor Katsuaki Watanabe
America’s Most Admired Companies, 2008
Management – Going Green
Compact Fluorescent Light Bulbs: A Bright Idea –
CFL’s use 75 percent less energy.
Technical Consumer Products, Inc. largest
provider of CFL’s in the United States.
Decision Making
