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Manager

people in charge of organizations and their resources.

Characteristics of managers

-Hold formal position of authority and power

-Communicate effectively

-Make reasoned decision based on relevant information and to live with the consequences

-Judge when they should be in charge and when they should delegate and allow others to be in charge

-Make decisions about organization function, including resources, budget, hiring, and firing

Styles of Managers

Autocratic~

Participative~

Free-rein~

~Autocratic management

Managers that CENTRALIZE power and tell employees what to do; authoritarian.

Negative use:

- employees feel uninformed, insecure and afraid

Positive use:

- rewards for compliance

~Participative management

Managers who DECENTRALIZE power and share it with employees. Work together to achieve goals. Keep employees informed and encourage sharing of ideas

~Free-rein management

occurs when no one particular person is the authority figure in the practice. Employees are left to self-motivate themselves.

Can be messy and advised only to use on a group that is self-motivated and self-disciplined.

Influences of Cultural Differences

Participation in making Decisions~

Hiring Preferences~

Permanence of employment~

Labor-Management Relationship~

~Participation in making Decisions

Some cultural groups (US) want subordinates to be actively involved in decision making v. others (Venezuela) prefer to be told what to do.

~Hiring Preferences

Different cultural groups value different selection criteria for hiring employees: job-qualificaiton v. family/friendship relations

~Permanence of employment

Attitudes about the permanence of employment vary among members of different cultural groups.

Less employment security (US) v. lifetime employment (Japan)

~Labor-Management Relationship

U.S. workers tend to have confrontional attitudes to bring more equitable work and satisfying relationship v. European/Asians more discreet and respectful to superiors

What are the four major components of managing?

planning and decision making~

organizing, staffing and communicating~

motivating and leading~

controlling~

~planning and decision making

Setting the organization's goals and deciding how best to achieve them: involve budgeting and profit planning, cash flow management, and other decisions related to operations.

~organizing, staffing and communicating

Structuring business operations in logical and meaningful ways: how business activities are put together

Acquiring employees w/necessary knowledge, skills, and attitudes to fill the position.

Networking/Interacting with employees: give/receive/share information effectively.

~Motivating and leading

Creating the desire to achieve: internal or w/in the employee and external like salary raises. And getting employees to voluntarily pursue goals of the organization.

~controlling

Regulating the business operations: monitoring performance, comparing it with goals, and taking corrective action as needed.

What are three common business organizational structures?

By Function, By Product, By Geography

Organization by function

Organizational structure is divided into departments based on the different business functions (finance, HR, operations, marketing).

Organization by product

Related products are grouped together to form departments (Large manufacturing corp. is divided into aviation parts and consumer appliance divisions)

Organization by geography

Organizes on geographic basis: city, county, state, region, country, or continent. Used by those that operate beyond the borders of one country.

Organizational chart

a visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication

Line positions

(Managerial) positions that have direct responsibility for the basic objectives of an organization

Staff positions

(Nonmanagerial) positions that support or advise those in line positions.

Levels of Management

the differentiation of managers into three basic categories-senior, middle, and first-line.

Span of control~

Lines of Authority~

Delegations of authority and responsibility~

~Lines of Authority

indicate who is responsible to whom and for what.

Clear lines of authority allow an organization to run smoothly and efficiently.

Delegations of authority and responsibility

How much authority and responsibility they delegate or transfer to others.

Too much authority and responsibility : autocratic

Too little authority and responsibility : no productivity

Degree of centralization

the amount of authority and responsibility that is delegated to small group people or to organizational units.

Distributed power between employees and manager : DECENTRALIZED; participative

Focused in one or small group : CENTRALIZED; autocratic

~span of control

the optimal number of subordinates a manager supervises or should supervise:

Front line manager~

Middle manager~

Senior manager~

~front line manager

make short-term operating decisions, directing the DAILY tasks of non managerial personnel in specific departments.

~middle manager

a manager who oversee the first-line managers and implements the strategy and major policies developed by senior management.

~senior manager

an upper-level executive who guides and controls the overall fortunes of an organization: oversee the work and departments of middle managers

chief executive office (CEO)

highest manager within a company;

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What are the stages through which a business might pass to attain global status?

1. Domestic Company

2. Exporting Company

3. International Corporation

4. Global Corporation

~Domestic Company

A company that conducts business in only one country, which is known as the home country.

- Sell and create its products and services in the HOME COUNTRY

- easiest to manage

~Exporting Company

A company that sells in other countries. Relies on its home marketplace advantages as it expands. Focus on selling familiar products in foreign markets.

Rely on agents or distributors.

- saves money and time

- allows to take adv. while not having to accept full responsibility

~International Corporation

Also known as multinational corporation (local, national and regional levels) that uses its existing capabilities to move into overseas markets: subsidiaries or subdivisions of the international corporation.

How will management tomorrow be different from management today?

Managers of tomorrow will:

- strive to facilitate the visionary development of others

- need the trust of owners, customers, employees, suppliers, and governmental officials.

- be multilingual and multicultural

- develop and use global strategic skills

- have outstanding communication skills

- work as a team

Entrepreneur

A risk taker who operates a business.

Small business

An independently owned and operated business that does not dominate an industry. (major creators of new products, major source of jobs, often provide personal service)

Telecommuting

This involves using a computer and other technology to work at home instead of in a company office or factory.

Business Plan

A guide used to start and operate a business. This includes business descriptions, organizational structures, and marketing activities.

Marketing

Includes the business activities necessary to get goods and services from the producer to the consumer.

Marketing plan

A document that details the marketing activities of an organization. Includes information about customer needs, social factors, competition, target markets, economic trends, political environment, and the marketing mix.

Budget

A financial tool that estimates a company's funds and its plan for spending those funds.

Start-up costs

The expenses that occur when a company is new. Costs include equipment purchase, remodeling costs, legal fees, utility company deposits, and beginning inventory expenses.

Continuing expenses

Business operating costs that occur on an on-going basis. Costs include rent, utilities, insurance, salaries, advertising costs, employee training costs, taxes, and interest on loans.

Variable costs

Business expenses that change in proportion to the level of production.

Fixed costs

Expenses that do not change as the level of production changes.

Breakeven point

The number of units a business must sell to make a profit of zero.

Gross profit

Difference between the cost of an item for a business and the price for which the business can sell that item.

Equity funds

Business funds obtained from the owners of the business. The money the owners of a business have invested from their personal accounts.

Debt funds

Business funds obtained by borrowing. Loans from financial institutions also help to finance companies and are ____ ____.

Balance sheet

The document that reports a company's assets, liabilities and owner's equity.

Income statement

A document that summarizes a company's revenue from sales and its expenses over a period of time, usually per fiscal year.

Fixed cost

Are salaries fixed or variable costs.

Human Resources Management

Part of the business plan that deals with hiring, training, and obtaining employees.

Cash flow statement

Reports the current sources and amounts of cash inflows and outflows

Management information system

Organized method of processing and reporting data for business decisions (Part of the business plan).

Financial Planning

Most important part of the business plan.

Extracting

Type of business that removes raw materials from the earth.

Manufacturing

Type of business that turns raw materials into usable products.

Retailer

Type of business that sells directly to consumers.

Wholesaler

Type of business that buys in mass quantities and resells to other businesses in smaller quantities.

Marketing plan

The second most important part of the business plan.

Service-based business

lawn care is an example of this type of business.