chapter 1 management

Management

The art of getting things done through people.

The Multiplier Effect

The concepttion’ a manager'ss activitiinc multiplied far beyond the results achieved by one person alone.

Efficiency

Using resources—people, money, raw materials—wisely and cost-effectively.

Effectiveness

Making the right decisions and successfully carrying them out to achieve the organization's goals.

Planning

Setting goals and deciding how to achieve them.

Organizing

Arranging tasks, people, and other resources to accomplish the work.

Leading

Motivating, directing, and otherwise influencing people to work hard to achieve goals.

Controlling

Monitoring performance, comparing it with goals, and taking corrective action as needed.

Top Managers

Make long-term decisions aboutidua overalll Approach and establish objectives, policies, and strategies.

Middle Managers

Implement the policies and plans of top managers and coordinate activitiesal first-line managers.

First-Line Managers

Make short-term operating decisions, directingrigh daily tasks of nonmanagerial personnel.

Functional Manager

Responsible for just one organizational activity (e.g., Director of Finance).

General Manager

Responsible for several organizational activities (e.g., Executive Vice President).

Interpersonal Roles

Managers interact with people inside and outside (Figurehead, Leader, Liaison).

Informational Roles

Managers receive and communicate information (Monitor, Disseminator, Spokesperson).

Decisional Roles

Managers use information to make decisions (Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator).

Technical Skills

Job-specific knowledge needed to perform well in a specialized field.

Conceptual Skills

Ability to think analytically, to visualize an organization as a whole and understand how parts work together.

Human Skills (Soft Skills)

The ability to work well in cooperation with other people to get things done.

Competitive Advantage

The ability of an organization to produce goods or services more effectively than competitors.

Four Building Blocks of Competitive Advantage

1. Responsiveness to customers, 2. Innovation, 3. Quality, 4. Efficiency.

Sustainability

Economic development that meetszation.

Vision Statement

"What do we want to become?" - Expresses where the organization wants to go strategically.

Values Statement

"What the organization stands for" - Core priorities and employee embodiment.

Strategic Planning

Done by Top Managers for 1-5 years.

Tactical Planning

Done by Middle Managers for 6-24 months.

Operational Planning

Done by First-line Managers for 1-52 weeks.

SMART Goals

Specific, Measurable, Attainable, Results-oriented, and Target dates (Time-bound).

Management by Objectives (MBO)

1. Jointly set objectives, 2. Develop action plan, 3. Periodically review performance, 4. Performance appraisal/rewards.

Planning/Control Cycle

1. Make the plan, 2. Carry out the plan, 3. Control direction by comparing results with plan, 4. Control direction by taking corrective action.

VRIO Framework

Used to analyze competitive potential: Value, Rarity, Imitability, and Organization.