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Managerial Effectiveness
The degree to which an organization accomplishes its goals.
Managerial Efficiency
The degree to which an organization uses its resources wisely.
Errors managers make during the planning stage
- Not establishing objectives for all important organizational areas
- Making plans that are too risky
- Not exploring enough viable alternatives for reaching objectives
Management Skills
Ability to carry out process of reaching organizational goals by working with and through people and other resources. Human, Conceptual, Technical
Technical Skills
Apply specialized knowledge and expertise to work related procedures.
Human Skills
Building cooperation within the team being led.
Conceptual Skills
Ability to see the organization as a whole.
Top Management
Primarily utilizes conceptual skills.
Middle Management
Primarily utilizes human skills.
Lower Supervisory Management
Primarily utilizes technical skills.
Planning
The process of determining how an organization can get where it wants to go and what it will do to accomplish its objectives.
Purpose of Planning
- Minimize risk by reducing uncertainties,
- increase degree of organizational success,
- establish a coordinated effort within the organization,
- Facilitate the accomplishment of the organization and its objective
Advantages of Planning
-Helps managers to become future oriented
-Enhances decision coordination
-Emphasizes organizational objectives
-Helps ensure sustainability of the firm
-Helps managers to identify and deal with problems that arise as the firm conducts its business
Disadvantages of Planning
- managerial time involvement
- rigidity and lack of adaptability
- balance of time spent on organizing, influencing and controlling
Primacy of Planning
-Planning is the primary management function and serves as the basis for other management functions
Types of Plans
Standing and single-use
Steps in the Planning Process
1. State organizational objectives
2. List alternative ways of reaching objectives
3. Develop premises upon which each alternative is based
4. Choose best alternatives for reaching objectives
5. Develop plans to purse chosen alternatives
6. Put the plans into action
Short Term Objectives
Objectives that reflect the purpose (mission) of the organization and are set for one year or less.
Intermediate Term Objectives
Objectives that are set for a period of 1-5 years.
Long Term Objectives
Objectives that are set for a period of 5-7 years.
Standing Plans
Plans that exist for routine guidelines and actions that occur repeatedly.
Single Use Plans
Plans that exist for a single purpose only.
MBO Steps
1. Organizational objectives reviewed
2. Worker objective set
3. Progress monitored
4. Pefromance evaluated
5. Rewards given
6. MBO for next normal operating period begins
Advantages of MBO
o Emphasizes what should be done in an organize to achieve goals
o Secures employee commitment to attaining organizational goals
Disadvantages of MBO
can be time-consuming and increase paperwork.
Controlling Process Steps
1.Measuring Process 2.Comparing measures performance to standards
3. Taking corrective action
Measuring process
a. Managers need to measure current performance in order to determine what decisions to make about what must be done to make organization more effective and efficient
Comparing measures performance to standards (what types)
profitability standards, market positon standards, productivity standards
Taking corrective action
a. Bringing organizational peformacne up to the level of performance standards
b. Recognizing problems
c. Recognizing symptoms
Power
o The extent to which an individual is able to influence others so they can respond to orders
o The greater ability to influence, the more power the individual is said to have
Total Power
Total power is a combination of positional power and personal power.
Positional Power
Derived from the organizational position manager holds
Personal Power
o : Derived from manager's relationshipwith others
Data
types of facts or statistics.
Information
o Details about project/set of conclusions derived fromdata analysis,
o Set of conclusions from analysis of data
o Heavily influences decision-making
Value
benefit that can accrue to an organization through use of information
Factors Influencing Value of Information
Information Appropriateness, Information Quality, Information Timeliness,Information Quantity
Information Appropriateness
Information appropriateness refers to whether the information is relevant.
Information Quality
Does it represent reality
Information Timeliness
Receipt of the information allows decisions to be made and actions to be taken
Information Quantity
Amount of info
Manufacturing
o Physical, durable output• Output can be inventoried• Low customer contact• Long response time• Capital intensive• Quality easily measured
Service Organization
o intangible, perishable output
o Output cannot be inventoried
o High customer contact
o Short response time
o Labor intensive
o Quality not easily measured
Supply chain management
The synchronization of a firm's processes with those of its suppliers and customers to match the flow of materials, services, and information with customer demand
Order Winners
A criterion customers use to differentiate the services or products of one firm from those of another
Order Qualifiers
Minimum level required from a set of criteria for a firm to do business in a particular market segment
Competitive Priorities
The critical dimensions that a process or supply chain must possess to satisfy its internal or external customers, both now and in the future
Competitive Capabilities
The cost, quality, time, and flexibility dimensions that a process or supply chain actually possesses and is able to deliver
Productivity formula
output / input
Labor Productivity formula
policies processed / employee hours
Multifactor Productivity formula
Multifactor productivity = Value of output / Labor cost + Materials cost + overhead cost
