MGT 101 - Management and Business Functions

Business

entities involved in transforming resources to products or services, offering it to customers, in order to address their needs, profitably

[Business] Human Resource

entities involved in transforming resources to products or services, offering it to customers, in order to address their needs, profitably

[Business] Operations

entities involved in transforming resources to products or services, offering it to customers, in order to address their needs, profitably

[Business] Marketing

entities involved in transforming resources to products or services, offering it to customers, in order to address their needs, profitably

[Business] Profitably

entities involved in transforming resources to products or services, offering it to customers, in order to address their needs, profitably

Management Functions

• activities/functions organizations do/perform in order to attain efficiency and effectiveness

• Planning, Organizing, Leading, Controlling

Business Functions

• activities/functions organizations do/perform in order to make profits/income

• done to make customers, clients, suppliers, employees, and investors satisfied

Functional Areas of Business

• Financial Management

• Production Management

• Marketing Management

• Personnel Management

[Functional Areas of Business] Financial Management

• acquisition, management & financing resources

• primarily concerned with investment and financing decisions

[Functional Areas of Business | Financial Management] Investment Decisions

• preparation of long-range plans and budgets for major investments e.g. plant expansion

• determination of the total amount of assets held by the firm, the composition of these assets, business risk complexion of the firm

[Functional Areas of Business | Financial Management] Financing Decisions

• determination of the financing mix and sources appropriate for the requirements of the firm

• answers the following questions:

  • when to issue stocks?

  • stocks or bonds?

  • when to borrow?

  • short-term or long-term?

[Functional Areas of Business | Financial Management] Capital Budgeting Process

• example of investment decision-making process

• important financial policy area of concern of businesses

• a top-level concern because it involves allocation of funds

• involves the choice of capital projects to be undertaken by the firm

• Critical Steps: identification and prioritization of various capital expenditure proposals given specific acceptance criteria

[Functional Areas of Business | Financial Management] Planning

• leading

• operating budgets, capital budgeting

[Functional Areas of Business | Financial Management] Organizing

• leading

• creation of finance committee and other units such as budget

[Functional Areas of Business | Financial Management] HRM

• leading

• recruitment and hiring of accountants or experienced financial analyst

• training, promotion, firing, transfers

[Functional Areas of Business | Financial Management] Controlling

financial control, financial analysis

[Functional Areas of Business] Production Management

• covers production planning, production process, and quality control

• e.g. production quantity, layout, processes, transportation, queuing

[Functional Areas of Business | Production Management] Production Planning

• quantity needed

• forecasting

• machines/equipment/people needed

• layout

• location

• monitoring

[Functional Areas of Business | Production Management] Production Process

• queuing

• capacity

• reliability

• quality control

[Functional Areas of Business | Production Management] Production Planning and Control

1. routing

2. loading

3. scheduling

4. dispatching

5. expediting

[Production Management | Production Planning and Control] Routing

determines the operations to be performed and their sequence

[Production Management | Production Planning and Control] Loading

function of assigning work to a machine or department

[Production Management | Production Planning and Control] Scheduling

determines the time at which each operation is to take place

[Production Management | Production Planning and Control] Dispatching

authorizes the actual start of operations

[Production Management | Production Planning and Control] Expediting

monitors the execution of plans

[Functional Areas of Business | Production Management] Quality Control

process of ensuring that products meet quality specifications

[Functional Areas of Business | Production Management] Wage Incentives Systems

involve the determination of bonuses for meeting or exceeding production targets, the basis for payment of compensation and the penalties for poor performance, e.g. defective or rejected outputs

[Functional Areas of Business | Production Management] Planning

• leading

• production

  • routing

  • loading

  • scheduling

[Functional Areas of Business | Production Management] Organizing

• leading

• grouping process into production sub-units

  • dispatching

[Functional Areas of Business | Production Management] HRM

• leading

• recruitment of engineers and laborers for the plant

• training, promotion, firing, transfers, counseling, employee testing

[Functional Areas of Business | Production Management] Controlling

• leading

• production control, quality control, inventory control

  • expediting

[Functional Areas of Business | Marketing Management] Analyzing Marketing Opportunities

deals with components of different marketing system e.g. competitors, suppliers, and buyers

[Functional Areas of Business | Marketing Management] Planning Marketing Programs

an operating plan that focuses on the product mix, prices, promotions and channels of distribution with a timetable for each activity

[Functional Areas of Business | Marketing Management] Formulating Product Strategies

product development, product phase-out, product planned obsoloscence

[Functional Areas of Business | Marketing Management] Administration of Marketing Program

evaluation of product performance, performance of marketing sales and personnel, determination of bonuses if targets are met or exceeded

[Functional Areas of Business | Marketing Management] Planning

• leading

• planning marketing programs

• formulating marketing strategies

[Functional Areas of Business | Marketing Management] Organizing

• leading

• assigning salesmen to territories of products

[Functional Areas of Business | Marketing Management] HRM

• leading

• recruitment and hiring of staff who will perform well in sales advertising

• training, promotion, firing, transfers

[Functional Areas of Business | Marketing Management] Controlling

• monitoring sales

• comparing target sales with actual sales

[Functional Areas of Business] Personnel Management

• attracting, developing, maintaining human resource

• administration of employee benefits

• recruitment process

• performance evaluation of employees

• orientation of new employees on company policies, personnel policies, company history

• maintenance of personnel records

[Functional Areas of Business | Personnel Management] Planning

• recruitment

• HRO

• scheduling training programs

[Functional Areas of Business | Personnel Management] Organizing

• leading

• grouping common functions into sub-units

• e.g. training section, recruitment

[Functional Areas of Business | Personnel Management] HRM

• leading

• recruitment

• training

• promotion

• firing

• transfers

• counseling

• employee testing

[Functional Areas of Business | Personnel Management] Controlling

• job audit

• implementation of company policies

• standardization of job classification

• benefits

[Functional Areas of Business | Personnel Management] Other Business Management Functions

• purchasing

• public relations

  • financial, consumer, crisis, industry, government

• research and development