Business Management and

Organization

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chap

ter7

Better Business

3rd EditionSolomon (Contributing Editor) ·

Poatsy · Martin

What Is Management?Management: working with people and resources to accomplish the goals of the organization

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The Managerial Pyramid: Levels of Management

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Five Skills of Successful Managers

• Conceptual skills – The ability to think abstractly (see “the big picture”)

• Technical skills – Specific knowledge for the discipline

• Time management skills – The ability to be effective and productive with time

• Interpersonal skills – The ability to motivate and communicate easily with others

• Decision-making skills – The ability to analyze and implement the best plan of action

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Stages of Decision-Making

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What is the most important step?

The Four Functions of Management

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Note: Leadership is presented in Chapter 8

1) PlanningProcess of establishing company goals and how to accomplish them

2) OrganizingProcess of structuring resources to carry out plans

3) LeadingDirecting and

motivating people to achieve

organizational goals

4) ControllingProcess by which

managers measure performance and make

sure the company’s plans and strategies are being

properly carried out

Planning: Figuring Out Where to Go and How to Get There

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Cut Throat Competition

Rapid Change

Economic Uncertainty

The planning function is core to effective

management. The best plans keep the organization

on track, but flexible

Establishing Goals/Objectives are essential to planning.

- Goals are broad, long-term accomplishments an organization wants to achieve within a certain time frame - in most companies, this is about five years

- Objectives are the short-term targets that are designed to help achieve these goals

The Strategic Planning Process

Vision and Mission Statements

The first step in creating a strategic plan is to establish a corporate purpose

– Vision: what the business wants to be in the future

– Mission statement: a more current description of the organization’s purpose, basic goals, and philosophies

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Without knowing “what” you want to be, how can you properly set your goals and objectives?

• Goals are broad, long-term accomplishments an organization wants to achieve within a certain time frame - in most companies, this is about five years

• Objectives are the short-term targets that are designed to help achieve these goals

SWOT Analysis

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Well Designed Goals

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Tactical, Operational, and Contingency Planning

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Organizing: Fitting Together the Pieces of the Puzzle

Organizing: the process of structuring resources to carry out plans

- Capital

- Personnel

- Raw materials

- Other resources

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Organizational Charts

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Shows how groups of employees fit into the larger organizational structure

Key Organizational Considerations

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Job design

Divide work into parts or tasks and assign positions to those parts

Departmentalization

Group the positions into manageable units or departments

Delegation

Assign part of a manager’s work and power to other workers

Span of management

The number of workers who report directly to one manager (wide vs. narrow)

Degree of Centralization

The extent to which decision-making power is held by a small number of people at the top of the organization (tall vs. flat)

Chain of command

Designate the positions with direct authority and those that are support positions

Organizational Structures: Vertical (Tall) and Horizontal (Flat)

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Controlling: Making Sure It All Works

Controlling: the process by which managers measure performance and make sure the company’s plans and strategies are being properly carried out

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The Control Cycle

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*Standards Must Be:

-Specific

-Attainable

-Measurable

Tools for Assessing Performance

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• Check Sheet

• Control Chart

• Histogram

• Pareto Chart

• Scatter Plot

• Run Chart

• Cause-and-effect diagram

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