Business 10 - Ch 6, 9, 10

Management

The process of coordinating people and other resources to achieve the goals of an organization

Managers coordinate organization’s resources to achieve organization’s goals

Material, human, financial, information

Functions of Management

Planning, organizing, leading, controlling

Planning

Establishing goals for the organization and developing strategies to accomplish them

Goals of organization should be

Specific and measurable

Organizing

Arranging resources and activities in a way that effectively and efficiently accomplishes the goal

Leading

Influencing people in the organization to work toward a common goal

Who determine factors that motivate workers

Managers

Managers provide

Proper incentives to encourage effective performance

Controlling

Measuring results against goals and making corrections when needed

Leadership

The ability to influence others

Formal Leadership

Legitimate power of position is the basis for authority

Informal Leadership

Not recognized formally by the organization authority

SWOT Analysis

Tool that analyzes strengths, weaknesses, opportunities, threats for a company

When is SWOT Analysis used?

During the strategic planning process to set goals and objectives

SWOT Analysis helps management

Brainstorm and categorize factors that help or hinder the company

Elements of analysis

Strengths, weaknesses, opportunities, threats

Strengths

Internal capabilities and core competencies that give company an advantage over its competitors

Examples of strengths

Effective distribution, protected patents, proven management, cost advantages

Weaknesses

Internal limitations a company faces in developing or implementing plans

Examples of weaknesses

Turnover, lack of direction, labor grievances, negative public image

Opportunities

Situations that, if exploited, could produce rewards for an organization

Examples of opportunities

New markets, new technologies, increased demand, competitor complacency

Threats

Conditions or barriers that may prevent the firm from reaching its objectives

Examples of threats

Foreign competitors, slowing market growth, regulatory requirements, sole sourcing

Classification of Managers

Based on levels of management and areas of management specialization

Levels of Management

Top manager, middle manager, first line manager

Top manager

Upper level executive,, guides and controls the organizations overall fortunes, responsible for developing mission and determining strategy, president and VP

Middle manager

Implements strategy and policies developed by top managers, develop tactical and operational plans, coordinate and supervise first line managers, division manager, department head, plant manger, operations manager

First-line managers

Coordinates and supervises operating employees, spend most of time motivating and working with employees, answering questions, solving day to day problems, office manager, supervisor, foreman

Functional Area

Group of employees who specialize in a particular business function

Common areas

Finance, operations, marketing, human resources, administration

Key skills of successful managers

Conceptual, analytic, interpersonal, technical, communication

Conceptual skills

Ability to think in abstract terms, help organization see the big picture, solicit wide variety of viewpoints

Analytic skills

Identify problems, prioritize issues, recognize underlying reasons, generate possible alternatives, select the best option

Interpersonal skills

Ability to deal effectively with people inside and outside the organization, relate to people, understand needs and motives, show genuine compassion

Technical skills

Specific skills relate to the activities they manage, train, answer questions, provide guidance and direction, more important for middle and first line managers

Communication skills

Ability to speak, listen, write effectively, technology make communication easier and more complex, must stay informed and maximize potential of digital communications

Skills required for top management differs in comparison to first line managers

Conceptual skills become more important than technical skills when people move up in management level, strong interpersonal skills are essential at all levels of management

Human Resources Management (HRM)

All the activities involved in acquiring, maintaining, developing an organization’s human resources

Acquisition

Recruiting and hiring new personnel

Acquisition involves

Hiring job analysis, recruiting, selection, orientation

Maintenance

Encouraging employees to remain with firm and work effectively

Maintenance involves

Employee relations, compensation, benefits

Development

Improving employee skills and expanding their capabilities

Development involves

Training and development, performance appraisal

First step in the acquisition phase of HRM

managers determine future human resources needs and plan to meet those needs

Job Analysis

Systematic procedure for studying jobs to determine their various elements and requirements

Job Description

List of objectives and responsibilities for a particular job

Job Specification

List of the qualifications required to perform a particular job

Cultural (workplace) Diversity

differences among people in the workplace in terms of ethnicity, gender, religion, age, physical or learning abilities

Benefits of cultural (workplace) diversity

Provides businesses a marketing edge, drives creativity and innovation, attracts top talent

Recruiting

Process of attracting qualified job applicants

Steps of recruitment process

Attract candidate pool, screen candidates, interview top candidates selected during the screening process, compare candidates and select top 2 or 3, check references, make job offer to the top candidate

Attracting candidate pool (internally)

Through company memos and job posting

Attracting candidate pool (externally)

Through advertised job postings, job fairs, etc

Screen Candidates

Review resumes and cover letters to eliminate candidates that don’t meet minimum qualifications

Compensation plans must be

Competitive enough to attract new talent, fair enough to keep existing talent from leaving, reasonable enough so that the company can still make a profit

Building effective compensation plans is part of the

Maintenance phase of HRM

Factors effecting compensation

Industry, level of the job, supply of candidates

Types of Compensation

Salaries, wages, incentives, benefits

Companies use nonmonetary benefits to

Attract talent and create good working environment (childcare and wellness programs)

Orientation

Process of acquainting new employees with the organization and its policies

Key Objectives of Orientation

Complete hiring paperwork, learn administrative details, provide employee introductions

Training

Process of teaching new employees how to do their jobs and existing employees how to do their job better

Key Objective of Training

Aims at improving employee’s skills and abilities

Development

Type of training that focuses on developing an employee’s professional and personal skills

Key Objectives of Development

Aims at preparing employees for advancement in the organizations (time management, creativity, negotiation and positive thinking)

Training and Development Methods

On the job methods, simulations, classroom teaching and lectures, conferences and seminars, role playing, elearning

Evaluation of Training and Development

Managers should develop measurable objectives before training starts, the result of training evaluations should be made known to all those involved in the program (including trainees and upper management)

To ensure that training and development are as cost-effective as possible, managers should

Evaluate the company’s efforts periodically

Employee Performance Appraisal

Evaluation of how well an employee is performing his or her job, employee and their direct supervisor discuss job performance over a predetermined time period

Employee Performance Appraisal includes

A written document that employees can review and keep for their records

Key Objectives of Employee Performance Appraisal

Evaluate performance against standards, make personnel decisions, assess HRM practices

Goal of manager in employee performance appraisal

To help employees reach their potential

How do managers avoid appraisal errors

By staying focused on the key objectives

Legal Environment of HRM

Aims to legislation regarding HRM practices, employers are responsible for knowing and following the law

Aims to Legislation regarding HRM practices includes

Protecting the rights of employees, promoting job safety, eliminating discrimination on the basis of race, gender, age, etc.

National Labor Relations Act (1935)

Established a collective bargaining process in labor management relations and the National Labor Relations Board (NLRB)

Fair Labor Standards Act (1938)

Established a minimum wage and an overtime pay rate for employees working more than 40 hours a week

Labor Management Relations Act (1947)

Provides a balance between union power and management power, also known as Taft Hartley Act

Equal Pay At (1963)

Specifies that men and women who do equal jobs must be paid the same wage

Title VII of the Civil Rights Act (1964)

Prohibits discrimination in employment practices based on sex, race, color, religion, or national origin

Age Discrimination in Employment Act (1967-1968)

Prohibits personnel practices that discriminate against people aged 40 and up, the 1986 amendment eliminated a mandatory retirement age

Operational Safety and Health Act (1970)

Regulates the degree to which employees can be exposed to hazardous substances and specifies the safety equipment that the employer must provide

Employment Retirement Income Security Act (1974)

Regulates company retirement programs and provides federal insurance program for retirement plans that go bankrupt

Worker Adjustment and Retraining Notification (WARN) Act (1988)

Requires employers to give employees 60 days notice regarding plant closure or layoff of 50 or more employeers

Americans with Disabilities Act (1990)

Prohibits discrimination against qualified individuals with disabilities in all employment practices (job application procedures, hiring, firing, advancement, compensation, training, and other terms, conditions, privileges of employmentc

Civil Rights Act (1991)

Empowers employees to sure employers for sexual discriminations and collect punitive damages

Family and Medical Leave Act (1993)

Requires an organization with 50 or more employees to provides up to 12 weeks of leave without pay on the birth or adoption of employee’s child or if an employee or employee’s spouse, child, parent is seriously ill

Affordable Car Act (2010)

Requires an organization with 50 or more employees to make health insurance available to employees or pay an assessment and gives employees the right to buy health insurance from another providers if an organization’s health insurance is too

Maintaining compliance with legal requirements is the

Responsibility of HR staff

HR personnel play an important role in

Advising and training line managers on how to comply with legal requirements

Scientific Management by Frederick W. Taylor

Advanced the idea of job specialization, meaning each job should be broken into separate tasks

Hawthorne Studies

Insights propelled management thought beyond the scope of Taylor’s scientific management

Maslow’s Hierarchy of Needs

A sequence of human needs in the order of their importance

Self Actualism Needs

The needs to grow, develop, and become all that we are capable of being

Esteem Needs

The need for respect and recognition from others, a sense of our own accomplishment and worth (self-esteem)

Social Needs

The human requirements for love and affection, a sense of belonging

Safety Needs

The things we require physical and emotional safety