PBAM Unit 5 Management

Vocabulary:

Manager-someone who participates in their competitive environments to better the company and whose work responsibilities are a part of the management process.

Management-process of planning, organizing, leading, and controlling an organization’s resources to achieve its goals

Planning-management process of determining what an organization needs to do and how best to get it done

Tactical plans-detailed schedules or instructions for completing a task

Operational plans- describe plans over time (how to reach goals)

Organizing-management process of determining how best to arrange an organization’s resources and activities into a coherent structure

Leading-management process of guiding and motivating employees to meet an organization’s objectives

Controlling-management process of monitoring an organization’s performance to ensure that it is meeting its goals (Comparing actual performances against standards)

Top manager-manager responsible for a firm’s overall performance and effectiveness

middle manager-manager responsible for implementing the strategies and working toward the goals set by top managers

First line manager-manager responsible for supervising the work of employees

Human Resource Manager-hire and train employees, evaluate performance, and determine compensation

Operations managers-responsible for production, inventory, and quality control

Marketing managers-responsible for getting products from producers to consumers

Information managers-design and implement systems to gather, organize, and distribute information

Financial managers-plan and oversee accounting functions and financial resources

Contingency plan- a plan designed to take a possible future event or circumstance into account.

Crisis Management/Crisis Management Plans-organization’s methods for dealing with emergencies that require immediate responses

Cooperate Culture-the shared experiences, stories, beliefs, and norms that characterize an organization

3 Management Roles:

• Interpersonal roles

  • a category of managerial roles including figurehead, leader, and liaison

• Informational roles

  • a category of managerial roles including monitor, disseminator, and spokesperson

• Decisional roles

  • • a category of managerial roles including entrepreneur, disturbance handler, resource allocator, and negotiator

5 Basic Management Skills:

• Technical skills

  • skills needed to perform specialized tasks. Especially important for first-line managers who solve work-related problems

• Human Relations skills

  • skills in understanding and having a good relationship with people. Important at all management levels, most importantly at the middle management level who are the bridge between top and first-line managers

• Conceptual skills

  • abilities to think in the abstract, diagnose and analyze different situations, and see beyond the present situation. Top managers depend most on these skills and firstline managers depend least on these skills

• Decision making skills

  • skills in defining problems and selecting the best courses of action. Involve gathering facts, identifying solutions, evaluating alternatives and implementing the chosen alternative

• Time management skills

  • skills associated with the productive use of time

Global Management skills-Managers will need to understand foreign markets, cultural differences, and the motives and practices of foreign rivals. Managers will also need to understand how to collaborate with others around the world on a real-time basis.

Setting Goals and Formulating Strategy:

Strategic Management-process of helping an organization maintain an effective alignment with its environment

Setting Goals-Strategic management activity that managers undertake so they can later measure success or failure at every organizational level

Strategy-broad set of organizational plans for implementing the decisions made for achieving organizational goals

Goals and Goal Setting:

Goals-objective that a business hopes and plans to achieve

Goal Setting-This helps managers assess performance within the company

Purpose of Goal Setting:

1. Provides direction and guidance for managers at all levels

2. Helps firms allocate resources

3. Helps to define corporate culture

4. Helps managers assess performance

Mission Statement-organization’s statement of how it will achieve its purpose in the environment in which it conducts its business

Kinds of Goals:

1. Short term goals-goal set for the very near future

2. intermediate goals-goal set for a period of one to five years into the future

3. long term goals-goal set for an extended time, typically five years or more into the future

Types of Strategy:

• Corporate strategy-strategy for determining the firm’s overall attitude toward growth and the way it will manage its businesses or product lines

• Business (or competitive) Strategy-strategy, at the business-unit or productline level, focusing on improving a firm’s competitive position

• Functional Strategy-strategy by which managers in specific areas decide how best to achieve corporate goals through productivity

SWOT Analysis: dentification and analysis of organizational strengths and weaknesses and environmental opportunities and threats as part of strategy formulation

Environmental Analysis-process of scanning the business environment for threats and opportunities

Organizational Analysis-process of analyzing a firm’s strengths and weaknesses

Hierarchy of Plans:

1. Strategic plan-plan reflecting decisions about resource allocations, company priorities, and steps needed to meet strategic goals

2. Tactical plan-generally short-term plan concerned with implementing specific aspects of a company’s strategic plans

3. Operational plan-plan setting short-term targets for daily, weekly, or monthly performance

Managing Change — Three Stages:

• At the highest level, analysis of the company’s environment highlights extensive change as the most effective response to its problems.

• Top management begins to formulate a vision of a new company.

• The firm sets up new systems for appraising and compensating employees who enforce the firm’s new values.