BUS-101 Chapters 7, 9, 11

management

the process used to reach a company’s organizational goals through: planning, organizing, leading, and controlling

planning

setting the organization’s vision, goals, and objectives

vision

• more than a goal

• an encompassing explanation of why the organization exists and where it’s trying to go

goals

the broad, long-term accomplishments an organization wishes to attain

objectives

specific, short-term statements detailing how to achieve the organization’s goals

mission statement

• an outline of the fundamental purposes of an organization, including:

  • the organization’s self-concept

  • its philosophy

  • its long-term survival needs

  • its customers needs

  • its social responsibility

  • the nature of its product(s) or service(s)

planning answers what two fundamental questions?

• what is the situation now?

• how can we get to our goal from here?

what do you use to know what the situation is now?

SWOT analysis

SWOT analysis

a planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats

internal

• inside the organization of itself

• strengths and weaknesses

external

• from outside the organization

• opportunities and threats

what to use to know how we can get to our goal from here?

strategic, tactical, operational, and contingency planning

types of planning

• strategic planning

• tactical planning

• operational planning

• contingency planning

strategic planning

determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals

tactical planning

developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done

operational planning

setting work standards and schedules necessary to implement the company’s tactical objectives

contingency planning

preparing alternative courses of action that may be used if the primary plans don’t achieve the organization’s objectives

decision making

choosing among two or more alternatives

rational decision-making model steps (the 6 Ds)

• define the situation

• describe and collect needed information

• develop alternatives

• decide which alternative is best

• do what is indicated

• determine whether the decision was a good one, and follow up

problem solving

• the process of solving the everyday problems that occur

• less formal than decision making and usually calls for quicker action

brainstorming

coming up with as many solutions as possible in a short period of time with no censoring of ideas

PMI (plusses, minuses, implications)

listing all the pluses for a solution in a column, all the minuses in another, and the implications in a third column

levels of management

• top management

• middle management

• supervisory (first-line) management

• nonsupervisory

top management

• highest level, consisting of the president and other key company executives who develop strategic plans

• president & vice president

• CEO, COO, CFO, CIO

middle management

includes general managers, division managers/heads, and branch and plant managers who are responsible for tactical planning and controlling

supervisory (first-line) management

• those directly responsible for supervising workers and evaluating their daily performance

• supervisors, department heads, section leaders

nonsupervisory

employees

technical skills

the ability to perform tasks in a specific discipline or department

human relation skills

• communication and motivation

• they enable managers to work through with people

conceptual skills

the ability to picture the organization as a whole and the relationship among its various parts

staffing

• hiring, motivating, and retaining the best people available to accomplish the company’s objectives

  • staffing is critical, especially at high-tech firms

  • many people are not willing to work at companies unless they are treated well with fair play

leading

providing continuous vision and values

leaders

set the vision

managers

set objectives and goals

leaders must

• communicate a vision and rally others around that vision

• establish corporate values

• promote corporate ethics

• embrace change

• stress accountability and responsibility

transparency

the presentation of the company’s facts and figures in a way that is clear and apparent to all stakeholders

leadership styles

• autocratic leadership

• participative (democratic) leadership

• free-rein leadership

autocratic leadership

• make managerial decisions without consulting others

  • effective in emergencies or with new, unskilled workers

participative (democratic) leadership

• managers and employees work together to make decisions

  • usually increases job satisfaction

free-rein leadership

• managers set objectives and employees are relatively free to do whatever it takes to accomplish those objectives

  • most successful when supervising professionals

empowerment

• progressive leaders give employees the authority to make decisions on their own without consulting a manager

• customers are handled quickly

• manager’s role becomes less of a boss and more of a coach

enabling

giving workers the education and tools they need to make decisions

knowledge management

• finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm

  • keeps people from duplicating the work

  • rise of big data requires determining what is most important

  • it’s as important to know what’s not working as it is to know what is working

control function

• measures performance relative to planned objectives

• rewards people for work well done

• takes necessary corrective action

the control process

• establish clear standards

• monitor and record performance

• compare results against standards

• communicate results

• if needed, take corrective action

• ⤷ feedback → are standards realistic?

a key criterion for measurement: customer satisfaction

• traditional forms of measuring success are financial

• pleasing employees, stakeholders, and customers is important

external customers

dealers, who buy products to sell to others and ultimate customers (or end users), who buy products for their own use

internal customers

individuals and units within the firm that receive services from other individuals or units

production

the creating of goods and services using the factors of production (land, labor, capital, entrepreneurship, and knowledge)

production management

describes all the activities managers do to help firms create goods

operations management

• a specialized area in management that converts or transforms resources (including human resources) into goods and services

• include:

  • inventory management

  • quality control

  • production scheduling

  • follow-up services

manufacturing in the U.S. (1953)

• the american industry reached its postwar peak as factories employed about 30% of the workforce

  • nearly 20 million workers by 1979

  • only 12.5 million workers in 2021

the value of products in the U.S. continue reaching record highs thanks to…

technology and automation

manufacturing in the U.S. (1980)

• factories needed 25 people to produce $1 million worth of manufacturing output

• today it only takes 6 people (engineers, software developers, plus a few trained workers)

manufacturing in the U.S. (current)

• today’s economy overwhelmingly depends on services rather than manufacturing

  • almost 80% of jobs are now in service sector

  • many American factories struggle to fill positions

manufacturers and service organizations become more competitive

• U.S. manufacturers compete with China, Germany, South Korea, Vietnam, and India

• U.S. businesses must keep up with latest production techniques

service industries must

• provide customers with quality care and attention

• maintain close relationships with suppliers

• practice continuous improvement

the production process

• inputs (land, labor, capital, entrepreneurship, knowledge)

• production control (planning, routing, scheduling, dispatching, follow-up)

• outputs (goods, service, ideas)

production adds…

value or utility to materials or processes

form utility

the value producers add to materials in the creation of finished goods and services

process manufacturing

the part of the production process that physically or chemically changes materials

assembly process

the part of the production process that puts together components

continuous process

long production runs turn out finished goods over time

intermittent process

the production run is short and the machines are changed frequently to make different products

the need to improve production techniques and cut costs

• goal is high-quality goods and services in response to customer demand

• global competition has made U.S. companies more competitive

computer-aided design (CAD)

the use of computers in the design of products

computer-aided manufacturing (CAM)

the use of computers in the manufacturing of products

computer-integrated manufacturing (CIM)

• the uniting of computer-aided design with computer-aided manufacturing

  • CIM is expensive, but it drastically reduces the time needed to program machines to increase production

flexible manufacturing

• designing machines to do multiple tasks so that they can produce a variety of products

  • allen-bradley uses flexible manufacturing to build motor starters

  • machines and robots build, test, and package parts

lean manufacturing

the production of goods using less of everything compared to mass production

compared to others, lean companies…

• take less human effort

• take less manufacturing space

• require less investment in tools

• require less engineering time to develop a new product

mass customization

• tailoring products to meet the needs of individual customers

• mass customization exists in the service sector too

more manufacturers are learning to customize

• fashion retailer Proper Cloth offers custom-designed shirts

• nature made creates customized vitamin packs

• custom colors of M&Ms are available

robotics

• allows manufacturing to continue 24 hours a day, seven days a week with great precision

• robotics have improved productivity while reducing the number of jobs for humans

• robots work in service businesses, as as hotels, as well

3D printing

• products are created one layer at a time by a nozzle

• for now, 3D printing is typically used to make prototypes and molds

  • other uses include car parts, running shoes, work boots, machine tool components

  • the world’s first 3D-printed steel footbridge opened in Amsterdam

• expected to grow to $35 million industry by 2024

using sensing, measurement, and process control

• sensors can detect the moment anything goes wrong

• nanomanufacturing allows manipulation of materials on a molecular or atomic scale

facility location

• the process of selecting a geographic location for a company’s operations

  • find a site that makes it easy for consumers to use the company’s services and communicate their needs

  • rising numbers of online businesses means brick-and-mortar retailers must find great locations and offer outstanding service

considerations for moving facilities to a new location

• labor costs

• availability of resources

• time to market, including access to transportation and proximity to suppliers and customers

• quality of life for employees

  • crime rates & cost of living

facility location in the future

• information technology gives firms increased flexibility in terms of location

• some cities and states offer tax reductions and other incentives

telecommuting

• working from home via computer

• reduces need for being located near sources of labor, so companies can move to less expensive areas where quality of life is higher

facility layout

• the physical arrangement of resources (including people) in the production process

  • depends on the processes performed

service

help customers find products

manufacturing

improve efficiency

purchasing

• the function in a firm that searches for quality material resources, find the best suppliers, and negotiates the best price for goods and services

  • companies may use one supplier or many

  • the internet has transformed purchasing

quality control

consistently producing what the customer wants while reducing errors before and after delivery to the customer

six sigma quality

a quality measure that allows only 3.4 defects per million opportunities

companies can apply for awards in these areas

• manufacturing

• services

• small businesses

• nonprofit/government

• education

• healthcare

trends

• tremendous opportunities exist for careers in operations management in both manufacturing and service companies

• those who see future trends and have the skills to work in highly automated factories will benefit

human resource management

• the process of determining human resource needs and

  • recruiting

  • electing

  • developing

  • compensating

  • evaluating

  • keeping the best employees

developing the ultimate resource

• service and high-tech manufacturing requires employees with highly technical job skills

• qualified workers are scarce, making recruiting and retention important and more difficult

• the human resource job has taken importance

the human resource challenge

• uncertainty in global politics

• technology

• multigenerational workforce

• shortages of trained workers in growth areas and construction trades

• large numbers of workers in declining industries who need retaining

• growing percentage of undereducated and unprepared new workers

• baby boomer brain drain

• increasing number of single-caregiver and two-income families

• attitude shift towards work-life balance

• increased demand for temporary or part-time work

• challenges from overseas labor pools: lower wages/less regulation

• increased benefit demands and low costs

• concern over child and elder care, drug testing, opportunities for people with disabilities, workplace violence

• changing health care regulations

• decreased sense of employee loyalty

• automated HRM systems

civil rights act of 1964

• title vii prohibits discrimination in hiring, firing, compensation, apprenticeships, training, terms, conditions, or privileges of employment based on:

  • race

  • religion

  • creed

  • sex

  • national origin

  • age

  • sexual orientation

  • gender identity

1972 equal employment act (EEOA)

• strengthened the equal employment opportunity commission (EEOC) by giving it broad powers:

  • right to issue workplace guidelines for acceptable employer conduct

  • can mandate specific recordkeeping procedures

  • the power of enforcement for its mandates

  • enforces affirmative action…

office of federal contract compliance programs (OFCCP)

ensures that employers doing business with the federal government comply with the nondiscrimination and affirmative action laws

civil rights act of 1991

amended title vii and gave victims of discrimination the right to a jury trial and possible damages

americans with disabilities act of 1990

• requires employers to give applicants with physical or mental disabilities the same consideration for employment as people without disabilities

• passage in 2008 of Americans with Disabilities Amendment Act expanded protection

• 2011 saw regulations that widen the range of disabilities covered by the ADA and shift the burden of proof of disability from employees to employers

age discrimination in employment act (ADEA)

protects workers 40 and over from employment and workplace discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training

human resource planning process

• preparing a human resource inventory of employees

• preparing a job analysis

• assessing future human resource demand

• assessing future labor supply

• establishing a strategic plan

job analysis

• a study of what is done by employees who hold various job titles

• includes and job description and specifications

job description

a summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions