5 chapter Business Essentials, 8 th Edition Ebert/Griffin Business Management Instructor Lecture PowerPoints PowerPoint Presentation prepared by Carol.

5chapter

Business Essentials, 8th EditionEbert/Griffin

Business Management

Instructor Lecture PowerPointsPowerPoint Presentation prepared by

Carol Vollmer Pope Alverno College

Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

After reading this chapter, you should be able to:

1. Describe the nature of management and identify the four basic functions that constitute the management process.

2. Identify different types of managers likely to be found in an organization by level and area.

3. Describe the basic skills required of managers.

L E A R N I N G O B J E C T I V E SL E A R N I N G O B J E C T I V E S

5-2Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

After reading this chapter, you should be able to:

4. Explain the importance of strategic management and effective goal setting in organizational success. 1. Discuss contingency planning and crisis management

in today’s business world.

2. Describe the development and explain the importance of corporate culture.

L E A R N I N G O B J E C T I V E S (cont.)L E A R N I N G O B J E C T I V E S (cont.)


What’s in It for Me?

• By understanding the material discussed in this chapter, you’ll be better prepared to:– Carry out various management responsibilities

yourself–More effectively assess and appreciate the

quality of management in various companies from the perspective of a consumer or investor


Who Are Managers?

• Good Managers– Responsible for business performance• Effective—do the right things; achieve goals• Efficient—do things right; lower costs

– Accountable to all key stakeholders• Develop strategic and tactical plans• Analyze competitive environments and plan,

organize, direct, and control operations


The Management Process

LeadingLeadingGuiding and MotivatingGuiding and Motivating

LeadingLeadingGuiding and MotivatingGuiding and Motivating

ControllingControllingMonitoring PerformanceMonitoring Performance

ControllingControllingMonitoring PerformanceMonitoring Performance

PlanningPlanningSetting GoalsSetting Goals

PlanningPlanningSetting GoalsSetting Goals

OrganizingOrganizingStructuringStructuring

OrganizingOrganizingStructuringStructuring

• Management– The process of planning, organizing, leading, and

controlling a firm’s financial, physical, human, and information resources to achieve its goals


Planning

• The Planning Process– Determining firm’s goals– Developing strategy for achieving goals– Designing tactical and operational plans for

implementing the strategy


Organizing

• The Organizing Process– Arranging resources and activities in a

coherent structure• Prepare organizational charts to help everyone

understand roles and reporting relationships


Leading

• Leading– Guiding and motivating employees to meet the

organization’s objectives


Controlling

• The Controlling Process–Monitoring a firm’s performance to make sure

goals are achieved• Management establishes standards, often for

financial performance• Can serve as a basis for providing rewards or

reducing costs


FIGRE 5.1 The Control Process


Types of Managers

• Levels of Management– Top managers: Responsible for performance of the firm

• President, vice president, treasurer, CEO, CFO

– Middle managers: Implement strategies set by top managers

• Plant manager, operations manager, division manager

– First-line managers: Supervise employees

• Supervisor, office manager, project manager, group leader


Human Human ResourcesResources

Human Human ResourcesResources

MarketingMarketingMarketingMarketing

FinancialFinancialFinancialFinancial

OperationsOperationsOperationsOperations

InformationInformationInformationInformation

OtherOtherOtherOther

Areas of Management


Basic Management Skills

Human Human Relations Relations

SkillsSkillsTechnical Technical

SkillsSkills

Conceptual Conceptual SkillsSkills

Time-Time-Management Management

SkillsSkills

Decision-Decision-Making Making SkillsSkills


Time-Management Skills

• Four leading time wasters:– Paperwork– Telephone calls–Meetings– E-mail


Management Skills for the 21st Century

• Global Management Skills– Understand foreign markets, cultural differences,

and the motives and practices of foreign rivals– Understand how to collaborate with others

around the world on a real-time basis

• Management and Technology Skills– Needed to process increasing

amounts of information5-16Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall

Strategic Management: Setting Goals and Formulating Strategy

• Strategic Management– The process of helping an organization maintain an

effective alignment with its environment• Goals– Starting point in effective strategic management – Objectives that a business plans to achieve

• Strategy– Broad set of action plans to achieve company goals


Setting Business Goals

• Goals– Performance targets that are used to measure success or

failure

• Mission Statement– A statement of how a business will achieve its purpose

• Effective organizations set goals at different levels:– Long-term: five years or more– Intermediate: one to five years– Short-term: one year or less


Purposes of Goal Setting

• Goal Setting:– Provides direction and guidance for managers

at all levels– Helps firms allocate resources– Helps to define corporate culture– Helps managers assess performance


Types of Strategy

• Corporate Strategy– Determines what business or businesses a company will

own and operate

– Growth• Related diversification• Unrelated diversification

– Retrenchment• Downsizing and divestiture


Types of Strategy (cont’d)

• Business (or Competitive) Strategy– Focuses on improving the company’s competitive

position at the level of the business unit or product line

• Functional Strategy– Guides managers in specific areas such as marketing,

finance, and operations in deciding how best to achieve corporate goals by performing their functional activities most effectively


Formulating Strategy

Step 1: Setting Strategic Goals– Strategic goals are derived from a firm’s mission

statementStep 2: Analyzing the Organization and the Environment: SWOT Analysis

– Assessing internal strengths and weaknesses and external opportunities and threats• Environmental analysis• Organizational analysis

Step 3: Matching the Organization and Its Environment– Matching environmental threats and opportunities

against corporate strengths and weaknesses


Figure 5.2 Strategy Formulation


Hierarchy of Plans• Strategic Plans– Steps needed to meet strategic goals; resource

allocations; focus on company priorities

• Tactical Plans– Shorter-term plans for implementing specific

aspects of the company’s strategic plans

• Operational Plans– Short-term targets for daily, weekly, or monthly

performance


Contingency Planning and Crisis Management

• Contingency Planning– Planning for change– Identify important aspects of a business that

might change and the ways to respond to changes

• Crisis Management– Organization’s methods for dealing with a crisis

—an emergency requiring immediate response


Management and the Corporate Culture

• Corporate Culture– Shared experiences, stories, beliefs, and norms

that characterize an organization– Defines the work and business climate in an

organization

• Communicating the Culture– Managers must: understand the culture;

transmit the culture to others in the organization; support the culture


Managing Change in the Culture

• 3 Stages in the Change Process

– After analyzing the company’s environment, extensive change is the most effective response to its problems.

– Top management formulates a vision of a new company.

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


Key Terms

business (or competitive) strategy conceptual skills contingency planning controlling corporate culture corporate strategy crisis management decision-making skills

leading environmental analysis first-line manager functional strategy goal human relations skills intermediate goal long-term goal


Key Terms (cont.)

management middle manager mission statement organizational analysis organizing operational plan planning short-term goal strategic goal

strategic managementstrategic plan strategy strategy formulation SWOT analysis tactical plan technical skills time-management skills top manager


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5 chapter Business Essentials, 8 th Edition Ebert/Griffin Business Management Instructor Lecture PowerPoints PowerPoint Presentation prepared by Carol.

Documents

pearson education

prentice hall slide

management process

structuring management

crisis management

process of planning

planning process

quality of management