1-1 the importance of business management(2)

7/31/2019 1-1 the Importance of Business Management(2)

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Companies fail when they

become complacent and imaginethat they will always be

successful. So we are alwayschallenging ourselves. Even the

most successful companies must

constantly reinvent themselves.--Bill Gates

Chairman and Chief Software Architect

Microsoft


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The Importance of Business

Management

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The Business World Today

Constant change!

Technology

Society

Environment

Competition

Diversity


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What is Management?

The process of deciding how best to use a

businesss resources to produce good or

provide services

Employees

Equipment

Money


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What is Management?

Auto industry managers

Assembly line: schedule

work shifts, supervise

assembly of vehicles

Engineering: develop newproduct features, enforce

safety standards

General: plan for the future

All organizations need

managers!


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Levels of Management

Senior management

Establishes the goal/objectives of the

business

Decides how to use the companys resources

Not involved in the day-to-day problems

Set the direction the company will follow

Chairperson of the companys board ofdirectors, CEO, COO, senior vice presidents


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Middle management

Responsible for meeting the goals that senior

management sets

Sets goals for specific areas of the business

Decides which employees in each area must

do to meet goals

Department heads, district sales managers


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Supervisory management

Make sure the day-to-day

operations of the business

run smoothly Responsible for the people

who physically produce the

company's products or

services

Forepersons, crew leaders,

store managers


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The Management Pyramid


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The Management Process

Three ways to examine how management

works:

Tasks performed

Planning, organizing, staffing, leading, controlling

Roles played (set of behaviors associated

with a particular job)

Interpersonal, information-based, decision-making Skills needed

Conceptual, human relations, technical


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Planning

Decides company

goals and the actions

to meet them CEO sets a goal of

increasing sales by

10% in the next year

by developing a new

software program


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Organizing

Groups related

activities together and

assigns employees toperform them

A manager sets up a

team of employees to

restock an aisle in a

supermarket


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Staffing

Decides how many and what kind of people a

business needs to meet its goals and then

recruits, selects, and trains the right people

A restaurant manager interviews and trains

servers


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Leading

Provides guidance

employees need to

perform their tasks Keeping the lines of

communication open

Holding regular staff

meetings


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Controlling

Measures how the

business performs to

ensure that financialgoals are being met

Analyzing accounting

records

Make changes iffinancial standards not

being met

R l ti A t f E h i


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Relative Amount of Emphasis

Placed on Each Function of

Management


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Management Roles

Interpersonal roles

A managers relationships with people

Providing leadership with the company

Interacting with others outside the organization

Senior managers spend much of their time on

interpersonal roles

Represent the company in its relations with people

outside the company, interacting with those people, andproviding guidance and leadership to the organization

Determine a companys culture

Sears, Roebuck and Co.


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Management Roles

Information-related roles

Provide knowledge, news or advice to employees

Holding meetings

Finding ways of letting employees know about important

business activities

Decision-making roles

Makes changes in policies, resolves conflicts, decides

how to best use resources Middle and supervisory managers spend more time resolvingconflicts than senior managers


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Management Skills

Conceptual skills

Skills that help managers understand how different

parts of a business relate to one another and to the

business as a whole

Decision making, planning, and organizing


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Management Skills

Human relations skills

Skills managers need to understand and work well

with people

Interviewing job applicants, forming partnerships withother businesses, resolving conflicts


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Management Skills

Technical skills

The specific abilities that people use to perform their

jobs

Operating a word processing program, designing abrochure, training people to use a new budgeting

system


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Management Skills

All levels of management require a

combination of conceptual, human

relations, and technical skills

Conceptual skills most important at senior

management level

Technical skills most important at lower levels

Human relations skills important at all levels


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Principles of Management

A principle is a basic truth or law

Managers often use certain rules when

deciding how to run their business

Most management principles are

developed through observation and

deduction


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Deduction is the process of drawing a

general conclusion from specific examples

Observe that employees in 15 companies

work more efficiently when their supervisorsthreat them well

Deduce/conclude that a pleasant work

environment contributes to productivity Conclusion becomes a management principle


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Management principles are best viewed as

guides to action rather than rigid laws

If a principle does not apply to a specific

situation, an experienced manager will not

use it

Important to recognize when a principle

shouldnt be followed

Being able to change and adapt is an

important management skill


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Do all employees

need to arrive at work

at the same time?

Do people who workin offices need to

dress in a certain

way?


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Women and Minorities

in Management

In the last three decades, an increased

number of women and minorities have

joined the workforce

Theyve attained positions as managers in

companies of all sizes

Women and minorities now serve as the

CEOs of prestigious businessesAvon, eBay, Lucent


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in Management

White menstill hold mostsenior managementpositions

Glass ceiling

: theinvisible barrier thatprevents women andminorities from movingup in the world ofbusiness Steadily becoming a

window of opportunity!


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in Management

Workers and managers

must be sensitive to

challenges presented by

a multicultural workplace

Religious holidays that arecelebrated at different

times throughout the year

by Muslims, Christians,

Jews and other religious

groups

1-1 the importance of business management(2)

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