ADM - MIDTERM

The Management Process

• Planning
• Leading
• Organizing
• Controlling

Planning

• manager must determine what the business needs to do and how best tO achieve it.

• determining what the business needs to do and the
  best way to achieve it

Planning involves a 5-step process:

1. establishing goals,
2. identifying whether a gap exist between the company’s desired and actual position,
3. developing plans to achieve the desired objectives,
4. implementing plans that have been decided upon, and
5. assessing the effectiveness of plans.

Types of Plans

1. strategic plans

2. tactical plans

3. operational plans

Leading

– guiding and motivating subordinates to meet
objectives
– managers have various responsibilities with regard to their employees
▪ authority to give orders
▪ ability to guide employees
▪ power to motivate subordinates

managers have various responsibilities with regard to their employees

▪ authority to give orders
▪ ability to guide employees
▪ power to motivate subordinates

Organizing

– determining how to use existing resources to implement the plan

– arranging jobs in a structure to create an efficient task system

Controlling

managers monitor the firm’s performance

What are the steps in the control process?

1. Establish performance standards

2. Measure actual performance

3. Compare performance to standards

4. If performance meets standards → continue current activities

5. If performance does not meet standards → adjust performance or revise standards

What is the first step of the control process?

→ Establish standards

What is the second step of the control process?

→ Measure actual performance against standards.

What happens after comparing performance to standards?

→ If it matches, continue current activities; if it doesn't, adjust performance or standards.

Levels of Management

1. top management

2. middle management

3. firstline management

Top Management

– responsible for overall performance of the firm

Middle Management

• responsible for implementing decisions of top managers

First-Line Management

• responsible for supervising employee

What is different about a Management job?

When you become a manager, your focus must shift, and making this shift is a challenge for many newly-appointed managers, who are expected to focus on completing tasks in an effective manner

Marketing Managers

Are responsible for developing, pricing, promoting, and distributing goods and services to buyers.

Financial Managers

Are responsible for planning and overseeing the financial resources of a firm

Operations Managers

Are responsible for controlling production, inventory, and quality of a firm's product

Human Resource Managers

Are responsible for hiring, training, evaluating and compensating employees

Information Managers

Are responsible for the design and implementation of systems to gather, process, and disseminate information.

Basic Management Skills

T-H-C-T-D
Technical
Human relations
Conceptual
Time management
Decision-making

Technical skills -

The ability to perform specialized tasks within a company. These skills are particularly important for first-line managers and less so as one moves up the corporate ladder.

Human Relations skills -

The ability to understand and work well with other employees. These skills are important in most management settings, regardless of level.

Conceptual skills -

The ability to think abstractly, to diagnose problems, and to plan for the future. Their importance increases as one rises in the corporate hierarchy

Time Management skills –

permit managers to productively use their time

Decision Making Skills -

managers to recognize problems, to analyze alternatives, and to select those which solve the problem

How do management skills change as managers move up the hierarchy?

• Technical skills ↓ decrease

• Conceptual skills ↑ increase

• Human relations skills remain important at all levels

Which skills are most important for first-line managers?

1. Technical skills (most important)

2. Human relations skills

3. Conceptual skills (least important)

Which skills are most important for top managers?

1. Conceptual skills (most important)

2. Human relations skills

3. Technical skills (least important)

Which management skill remains important at all levels?

Human relations skills

First-line managers = DO

→ Need technical skills

Top managers = THINK

→ Need conceptual skills

Everyone = PEOPLE

→ Need human relations skills

Time-Management Skills

– productive use of time

Leading causes of wasted time

– Paperwork
– Telephone
– Meetings
– email

What is Step 1 in the decision-making process?

Recognizing and defining the decision situation.

What happens in Step 1: recognizing and defining the decision situation?

A manager notices that a decision needs to be made because of some positive or negative stimulus.

What is Step 2 in the decision-making process?

Identifying alternatives.

What happens in Step 2: identifying alternatives?

The manager comes up with possible options or solutions. The more important the decision, the more alternatives should be considered.

What is Step 3 in the decision-making process?

Evaluating alternatives.

What happens in Step 3: evaluating alternatives?

Each option is judged based on feasibility, satisfaction, and possible consequences.

What is Step 4 in the decision-making process?

Selecting the best alternative.

What happens in Step 4: selecting the best alternative?

The manager considers all factors and chooses the option that best fits the situation.

What is Step 5 in the decision-making process?

Implementing the chosen alternative.

What happens in Step 5: implementing the chosen alternative?

The chosen solution is put into action within the organization

What is Step 6 in the decision-making process?

Following up and evaluating the results

What happens in Step 6: following up and evaluating the results?

The manager checks later to see whether the chosen solution worked.

Organizational Politics

refers to the actions that people do in order to get what they want without regard for its impact on other people and the organization.

Intuition

Means making a decision because it “feels right.” Intuition can lead to spectacular successes or failures.

Escalation of Commitment

Occurs when a manager remains committed to a course of action even when evidence shows it isn’t working

Risk Propensity

big loss/big gain

Strategic Management

process of aligning the organization with its external environment

Strategic Goals

performance objectives that a firm plans to achieve

Purpose of Setting Goals

– Provides direction, guidance, and motivation
– Assists in allocating resources
– Helps to define corporate culture
– Helps managers assess performance

SMART Goals

Specific
Measurable
Achievable
Relevant
Time-Framed

Mission Statement

• states how the
  organization will
  achieve its purpose
  (reason for being)

• clarifies who the
  organization serves,
  what it offers, and how it
  will be provided

• includes core values
  and ethical commitment

Managers

are the people who plan, organize, lead, and control the operations of an organization

Management

is the process of planning, organizing, leading, and controlling an enterprise’s financial, physical, human, and information resources to achieve the organization’s goals

Efficiency

means achieving the greatest level of output with a given amount of input

Effectiveness

on the other hand, means achieving organizational goals that have been set.

First-Line Managers

-              First-line managers spend most of their time working with and supervising the employees who report to them.

-              Common titles include supervisor, office manager, and group leader.

-              Responsible for supervising the work of employees who report to them

-              Ensure employees understand and are properly trained in company policies and procedures

Top Managers

-              The executives who guide the fortunes of companies are top managers.

-              Common titles for top managers are president, vice-president

-              Set general policies, formulate strategies, and approve all significant decisions

-              Represent the company in dealings with other firms and with government bodies

Middle Managers

-              Although below the ranks of the top executives, middle managers still occupy positions of considerable autonomy and importance.

-              Titles such as plant manager, operations manager, and division manager are typical middle-management positions.

-              Responsible for implementing the strategies of and working toward the goals set by top managers

Areas of Management

• Human resource managers

• Operations Managers 

• Information Managers

• Marketing Managers

• Financial Managers

• Other Managers

Human resource managers

-             can be found in most companies; they hire employees, train them, evaluate their performance, decide how they should be compensated, and work with labour unions (if the workforce is unionized).

-             Large firms may have several human resource departments, each dealing with specialized activities.

Operations Managers 

-             Operations managers are responsible for a company’s system for creating goods and services.

-             Among other duties, operations managers are responsible for production, inventory, and quality control.

Information Managers

-             Dramatic increases in both the amount of information available to managers and the ability to manage it have led to the emergence of information managers.

-             These people are responsible for designing and implementing various systems to gather, process, and disseminate information.

 

Marketing Managers

-             Marketing includes the development, pricing, promotion, and distribution of products and services.

-             Marketing managers are responsible for getting these products and services to buyers.

-             Marketing is especially important for firms producing consumer products,

 

Financial Managers

-             Management of a firm’s finances is extremely important to its survival.

-             Nearly every company has financial managers to plan and oversee its financial resources.

-             Levels of financial management may include a vice-president for finance (top), a division controller (middle), and an accounting supervisor (first-line).

Other Managers

-             Some firms have more specialized managers.

-             Chemical companies, such as CIL, have research and development managers, for example; such companies as Petro-Canada and Apple have public relations managers; and many companies have recently added diversity and inclusion officers or managers.

 

LO 6.1 Describe the nature of management and identify the four activities that constitute the management process.

LO 6.3 Describe the basic roles and skills required of managers.

Management Skills

Effective managers must have several skills, including technical, human relations, conceptual, time management, and decision-making skills.

Technical Skills:

Skills associated with performing specialized tasks within a firm

-             Technical skills allow managers to perform specialized tasks. An executive assistant’s ability to type, an animator’s ability to draw a cartoon, and an accountant’s ability to audit a company’s records

-             People develop their technical skills through education and experience.

-             It has become increasingly important for managers to develop certain technology skills, especially with respect to communicating and interacting with others in the organization.

 

 

Human Relations Skills

-             Human relations skills help managers lead, motivate, communicate with, and get along with their subordinates. Managers with poor human relations skills will likely have conflicts with subordinates, cause valuable employees to quit or transfer, and contribute to poor morale

Conceptual Skills

-             Conceptual skills refers to a person’s ability to think in the abstract, to diagnose and analyze various situations, and to see beyond the present situation. Conceptual skills help managers recognize new market opportunities and threats.

Time Management Skills

-             Skills associated with productive use of time

-             Time management skills refers to the productive use that managers make of their time. Effective time management is particularly important for highly paid top managers.

To manage time effectively, managers must address four leading causes of wasted time:

 

-             Paperwork. Some managers spend too much time deciding what to do with letters and reports (digital or paper).

 

-             The telephone. Experts estimate that managers are interrupted by the phone every five minutes.

-             Meetings. Many managers spend as much as four hours per day in meetings.

 

-             Email and SMS. With smartphones attached to the hip, managers are relying more heavily on email and other forms of electronic communication SMS (short message service, or texts).

Decision – Making Skills

-             Skills in defining problems and selecting the best courses of action

Strategic management

The process of helping an organization maintain an effective alignment with its environment

Goals

: objectives that a BUISNESS plans to attain

Long-term goals

relate to extended periods of time—typically five years or more into the future.

Intermediate goals

are set for a period of one to five years into the future

- short term goals

—which are set for one year or less

SMART Goals

Specific

Measurable

Acheivable

Results oriented

Time framed

 

Strategy Formulation

Creation of a broad program for defining and meeting an organizations goal

Strategy formulation involves three basic steps:

(1) setting strategic goals,

 

 (2) analyzing the organization and its environment, and

 

(3) matching the organization and its environment

Strategic Plans:

Plans that reflect decision s about resource allocations, company proorities, and steps needed to meet strategic goals

There are three levels of strategy in a business firm

A corporate-level strategy identifies the various businesses a company will be in and how they will relate to each other.

 

A business-level strategy identifies the ways a business will compete in its chosen line of products or services.

 

Functional strategies identify the basic courses of action each department will pursue so that it contributes to the business’s overall

Diversification

helps the firm avoid the problem of having all of its eggs in one basket by spreading risk among several products or markets. Related diversification means adding new but related products or services to an existing business.

Contingency Planning

Identifying aspects of a businesses or its environment that might requite xchanges in strategy

 

Crisis Management

an organizations methods for dealing with emergencies

A corporate-level strategy

identifies the various businesses a company will be in and how they will relate to each other.

 

A business-level strategy

identifies the ways a business will compete in its chosen line of products or services.

 Functional strategies identify the basic courses of action each department will pursue so that it contributes to the business’s overall

Functional strategies

identify the basic courses of action each department will pursue so that it contributes to the business’s overall

Employee behavior

is the pattern of actions by the members of an organization that directly or indirectly affects the organization

positive neutral or negative

Performance behaviors

reflect the performance of a specific job.