Companies fail when they become complacent and imagine that they will always be successful. So we are always challenging ourselves. Even the most successful companies must constantly reinvent themselves.--Bill Gates Chairman and Chief Software Architect Microsoft

The Importance of Business Management1.1

The Business World TodayConstant change!TechnologySocietyEnvironmentCompetitionDiversity

What is Management?The process of deciding how best to use a businesss resources to produce good or provide servicesEmployeesEquipmentMoney

What is Management?Auto industry managersAssembly line: schedule work shifts, supervise assembly of vehiclesEngineering: develop new product features, enforce safety standardsGeneral: plan for the futureAll organizations need managers!

Levels of ManagementSenior managementEstablishes the goal/objectives of the businessDecides how to use the companys resourcesNot involved in the day-to-day problemsSet the direction the company will followChairperson of the companys board of directors, CEO, COO, senior vice presidents

Levels of ManagementMiddle managementResponsible for meeting the goals that senior management setsSets goals for specific areas of the businessDecides which employees in each area must do to meet goalsDepartment heads, district sales managers

Levels of ManagementSupervisory managementMake sure the day-to-day operations of the business run smoothlyResponsible for the people who physically produce the company's products or servicesForepersons, crew leaders, store managers

The Management Pyramid

The Management ProcessThree ways to examine how management works:Tasks performedPlanning, organizing, staffing, leading, controllingRoles played (set of behaviors associated with a particular job)Interpersonal, information-based, decision-makingSkills neededConceptual, human relations, technical

The Management ProcessPlanningDecides company goals and the actions to meet themCEO sets a goal of increasing sales by 10% in the next year by developing a new software program

The Management ProcessOrganizingGroups related activities together and assigns employees to perform themA manager sets up a team of employees to restock an aisle in a supermarket

The Management ProcessStaffingDecides how many and what kind of people a business needs to meet its goals and then recruits, selects, and trains the right peopleA restaurant manager interviews and trains servers

The Management ProcessLeadingProvides guidance employees need to perform their tasksKeeping the lines of communication openHolding regular staff meetings

The Management ProcessControllingMeasures how the business performs to ensure that financial goals are being metAnalyzing accounting recordsMake changes if financial standards not being met

Relative Amount of Emphasis Placed on Each Function of Management

Management RolesManagers have authority within organizationsManagers take on different roles to best use their authorityInterpersonal rolesInformation-related rolesDecision-making roles

Management RolesInterpersonal rolesA managers relationships with peopleProviding leadership with the companyInteracting with others outside the organizationSenior managers spend much of their time on interpersonal rolesRepresent the company in its relations with people outside the company, interacting with those people, and providing guidance and leadership to the organizationDetermine a companys cultureSears, Roebuck and Co.

Management RolesInformation-related rolesProvide knowledge, news or advice to employeesHolding meetingsFinding ways of letting employees know about important business activitiesDecision-making rolesMakes changes in policies, resolves conflicts, decides how to best use resourcesMiddle and supervisory managers spend more time resolving conflicts than senior managers

Management SkillsConceptual skillsSkills that help managers understand how different parts of a business relate to one another and to the business as a wholeDecision making, planning, and organizing

Management SkillsHuman relations skillsSkills managers need to understand and work well with peopleInterviewing job applicants, forming partnerships with other businesses, resolving conflicts

Management SkillsTechnical skillsThe specific abilities that people use to perform their jobsOperating a word processing program, designing a brochure, training people to use a new budgeting system

Management SkillsAll levels of management require a combination of conceptual, human relations, and technical skillsConceptual skills most important at senior management levelTechnical skills most important at lower levelsHuman relations skills important at all levels

Principles of ManagementA principle is a basic truth or lawManagers often use certain rules when deciding how to run their businessMost management principles are developed through observation and deduction

Principles of ManagementDeduction is the process of drawing a general conclusion from specific examplesObserve that employees in 15 companies work more efficiently when their supervisors threat them wellDeduce/conclude that a pleasant work environment contributes to productivityConclusion becomes a management principle

Principles of ManagementManagement principles are best viewed as guides to action rather than rigid lawsIf a principle does not apply to a specific situation, an experienced manager will not use itImportant to recognize when a principle shouldnt be followedBeing able to change and adapt is an important management skill

Principles of ManagementDo all employees need to arrive at work at the same time?Do people who work in offices need to dress in a certain way?

Women and Minoritiesin ManagementIn the last three decades, an increased number of women and minorities have joined the workforceTheyve attained positions as managers in companies of all sizesWomen and minorities now serve as the CEOs of prestigious businessesAvon, eBay, Lucent

Women and Minoritiesin ManagementWhite men still hold most senior management positionsGlass ceiling: the invisible barrier that prevents women and minorities from moving up in the world of businessSteadily becoming a window of opportunity!

Women and Minoritiesin ManagementWorkers and managers must be sensitive to challenges presented by a multicultural workplaceReligious holidays that are celebrated at different times throughout the year by Muslims, Christians, Jews and other religious groups