BMG100 Course 8 and 9

Course Information

  • Course Title: Understanding Business and Society (BMG 100)

  • Instructor: Vincent Cloutier, MBA

  • Institution: The Williams School of Business

  • Semester: Winter 2025

Agenda for the Week

  • Topics: The Nature of Management

Upcoming Tasks

  • Kayak Simulation

    • Decision Round No. 1: Processes at 3:30 PM on Feb. 5th

  • Quizzes

    • Quiz No. 3: Closes at 5:00 PM on Feb. 4th

    • Quiz No. 4: Opens after class on Feb. 5th, closes at 5:00 PM on Feb. 11th

Important Dates

  • Midterm Exam

    • Date: Feb. 17th

    • Worth: 25% of total grade

    • Format: In-person, 80 minutes (4:00 PM - 5:20 PM)

    • Coverage: Everything covered since the start of the semester (Chapters 1, 2, 3, 4, 6, 13, & 14)

The Nature of Management (Chapter 6)

Learning Objectives

  1. Define management and explain its role in achieving organizational objectives.

  2. Describe major functions of management.

  3. Distinguish among the three levels of management and their concerns.

  4. Identify necessary skills for successful managers.

  5. Summarize systematic approaches to decision-making used by managers.

Definition of Management

  • Management is a process designed to achieve an organization's objectives through effective and efficient use of resources in a changing environment.

  • Achieving objectives requires skilled management.

Roles of Managers

  • Decision-makers regarding resource use to reach organizational objectives.

Importance of Management

  • Aids in resource acquisition and coordination.

Levels of Management

1. Top Management

  • Examples: President, CEO, CFO, COO, Vice Presidents

  • Responsibilities: Overall organizational responsibility, planning, and making strategic decisions.

2. Middle Management

  • Examples: Division Managers, Department Managers, Plant Managers, Product Managers

  • Responsibilities: Implement general guidelines from top management and handle tactical planning.

3. First-Line (Supervisory) Management

  • Examples: Office Managers, Supervisors, Forepersons

  • Responsibilities: Oversee daily operations and supervise workers.

Management Functions

1. Planning

  • Objectives: Desired results of the organization.

  • Mission: Organization's purpose and philosophy.

  • Process: Determine objectives and how to achieve them.

Common Organizational Objectives

  • Profit, Growth, Efficiency, Service, Competitive Advantage, Ethics, Community Responsibility.

SMART Criteria for Objectives

  • S: Specific

  • M: Measurable

  • A: Achievable

  • R: Relevant

  • T: Time-bound

Examples of Strong vs. Weak Objectives

  • Weak: Maximize profits.

  • Strong: Achieve a 10% return on investment during 2021 with a four-year payback on new investments.

Crafting a Mission Statement

  • Focus on a limited number of goals.

  • Stress major policies and company values.

  • Define competitive spheres and take a mid to long-term view.

  • Should be short, memorable, and meaningful.

Planning as a Function of Management

Types of Plans

  1. Strategic Plans: Long-range (2-10 years), established by executive managers; includes sustainability and business analysis techniques like SWOT.

  2. Tactical Plans: Short-range (1 year or less) for strategy implementation; periodically reviewed.

  3. Operational Plans: Very short-term (days to months) and actionable, focused on achieving tactical plans.

Crisis Management and Contingency Planning

  • Focus on potential disasters (e.g., product tampering, unethical activities).

Organizing

  • Structuring resources and activities for effective accomplishment of objectives.

  • Importance: Creates synergy, establishes authority lines, improves communication, enhances competitiveness.

Staffing

  • Hiring people to execute organizational work; may involve downsizing (eliminating employees).

Directing

  • Motivating and leading employees; includes incentives and recognition.

Controlling

Five Key Activities of Control

  1. Measure performance.

  2. Compare performance against standards.

  3. Identify deviations from standards.

  4. Investigate causes of deviations.

  5. Take corrective actions.

Areas of Management

  1. Finance

  2. Production & Operations

  3. Human Resources

  4. Marketing

  5. IT

  6. Administration

Skills Needed by Managers

  • Communication, motivation, interpersonal skills

  • Organizational, delegation, team-building abilities

  • Technical expertise, conceptual & analytical skills

  • Planning, strategic thinking, problem-solving

Leadership Styles

Types of Leaders

  1. Autocratic Leaders: Make decisions independently.

  2. Democratic Leaders: Involve employees in decisions.

  3. Free-Rein Leaders: Allow employees to work independently.

Sources of Good Managers

  • Internal promotions, hiring from other organizations, and hiring from colleges.

Decision Making in Management

  • Types of decisions made include work hours, hiring, product introduction, pricing.

Effective Decision-Making Process

  1. Identify the problem.

  2. Generate alternatives.

  3. Evaluate alternatives.

  4. Choose the best alternative.

  5. Implement the decision.

  6. Evaluate the results.

Management Reality

  • Involves dealing with uncertainty and diverse information.

  • Effective managers execute tasks through a diverse group of people with limited direct control.

Discussion Questions

  1. Advantages and disadvantages of free-rein leadership.

  2. Conduct a SWOT analysis of a familiar company.

  3. Develop personal tactical and strategic plans for educational and career goals.