WHAT IS MANAGEMENT?

Management Process of achieving organizational objectives through people and other resources.

The Management Hierarchy

• Top management, middle management, supervisory management

Skills Needed for Managerial Success

• Technical skills, human skills, conceptual skills

Managerial Functions

• Planning, organizing, directing, controlling

SETTING A VISION AND ETHICAL STANDARDS FOR THE FIRM

Vision Perception of marketplace needs and the methods an organization can use to satisfy them.

• Must be focused yet adaptable to changes in the business environment.

• Long-term success is also tied to the ethical standards that top executives set.

• High ethical standard can also encourage, motivate, and inspire employees to achieve goals.

IMPORTANCE OF PLANNING

Types of Planning

Strategic

• Determining the primary objectives of an organization and then acting and allocating resources to achieve those objectives.

Tactical

• Guides the activities required to implement overall strategies.

Operational

• Assigning employees and teams to carry out tactical plans.

Contingency

• Planning for unforeseen major accidents, natural disasters, and rapid economic downturns.

THE STRATEGIC PLANNING PROCESS

• Often makes the difference between success and failure.

1. Define the Organization’s Mission2. Assess the Competitive Position3. Set Objectives 4. Create Strategies for Competitive Differentiation5. Turn Strategy into Action6. Evaluate Results

MANAGERS AS DECISION MAKERS

Programmed and Nonprogrammed Decisions• Programmed decision

• Nonprogrammed decision

How Managers Make Decisions• Recognizing a problem or opportunity

• Developing potential responses

• Evaluating alternative solutions

• Selecting and implementing an alternative

• Assessing the results

MANAGERS AS LEADERSLeadership Ability to direct or inspire people to attain organizational goals.

• Involves the use of influence or power.

Leadership Styles• Autocratic, democratic leadership, free-rein leadership

Which Leadership Style Is Best?• Important variables:

• Corporate culture of the firm

• System of principles, beliefs, and values

CORPORATE CULTURECorporate culture Organization’s system of principles, beliefs, and values.

• Managerial philosophies, communications networks, and workplace environments and practices all influence corporate culture.

• Typically shaped by the leaders who founded and developed the company and by those who have succeeded them.

• Can be changed.

• Strong culture = everyone knows and supports the same principles, beliefs, and values.

• Weak or constantly shifting culture = lack of a clear sense of purpose.

Organizational StructuresOrganization Structured grouping of people working together to achieve

common goals.

Departmentalization Process of dividing work activities into units within the organization.

Delegation Act of assigning work activities to subordinates.

• Employees have both responsibility and authority.

Span of management Number of subordinates, or direct reports, a supervisor manages.

• Centralization or decentralization

Types of Organization Structures

Line Organizations

• Direct flow of authority from CEO to subordinates.

Line-and-Staff Organizations

• Combines line departments and staff departments.

Committee Organizations

• Authority and responsibility are jointly in the hands of a group of individuals rather than a single manager.

Matrix Organizations

• Links employees from different parts of the organization to work together on specific projects.