1

MANAGEMENT

• Definition. Pg 8– A process– Use of resources– A goal or goals– With other functions and people 14– Continuous innovations and improvement 22– Managing strategically 7

• Modern Trends 5-6– Dynamic change– Technology– Globalization– Diversity of workers and markets

2

MANAGEMENTWhat managers do

1. Achieving Objectives/Goals2. Functions of Management 253. Various roles managers play 264. Efficient Use of Resources (see later

slide)5. Skills managers need 32

3

Function of Management(Process of Management)

25

PlanningOrganizing

Directing/ LeadingControl

4

Managerial RolesMintzberg 26

• Interpersonal roles– Figurehead, Leader, Liaison

• Informational roles– Monitor, Disseminator, Spokesperson

• Decisional Roles– Entrepreneur, Disturbance Handler, resource Allocator, Negotiator

• Do roles vary across levels of managers ? Across industries? In manufacturing and services ? In different countries ?

5

Two Measures of Managerial Work

• Effectiveness: Achieving objectives, goals • Efficiency: Managing resources OUTPUT

INPUT

(OM chapters will call this Productivity)

6

Efficiency

Team A Team B Target

TicketsSold

200 150 250

$ Spent 100 50

Efficiency 200/100 150/50

7

Levels of Management

TOP

MIDDLE

FIRST

LEVEL

Planning

Horizon

Long

Medium

Short

Planning

Type

Strategic

Tactical

Operational

Skills (32)

Conceptional

Human

Technical

8

Introduction to Operations ManagementK pg. 188

• Production of products or services 190• Using processes 190, • The process view of the organization 191

– Adding value. Value chain 197– Core and support processes

• Manufacturing v. Services 193• Trends: Productivity and quality improvement, 199; global

competition, technology, ethical-environmental- diversity issues

9

OPERATIONS MANAGEMENT

• What operations managers do– Setting objectives (also called “competitive

priorities”)Then, – Planning operations– Organizing activities and resources– Directing/Leading workers– Operations control (monitoring)

10

Social Responsibility and EthicsM Chapter 5

• Difference 161– Ethics: morality and standards of business conduct– SR: organizations obligations to shareholders, employees,

customers, society

• Overlapping: Spectrum of SR includes ethical responsibility– SR: Economic, Legal, Ethical, Discretionary– Efficiency and SR perspectives 172

• Relevance to managers 45– Increased concern, Increase in enforcement, Corporate and

director liability, Customer preferences, Employee morale

11

Social Responsibility and Ethics

• What organization do:– Leadership, compliance officers 169– Code of ethics/Standards of Conduct 164; Policies;

Values Statements– Structures: compliance committees– Rewards (whistle-blowing) and punishments 168– Training 167– Self reporting

12

PlanningM Chapter 8

• Why is planning important ?– Legitimacy, Source for motivation/commitment, Guides to

action/decisions, Performance standards• Organizational levels 273

– Corporate, Business, Functional• Type of plans by level 270

– Strategic, Tactical, Operational• Setting objectives 279

– Principles 288 MBO 291• Planning Process 275

– Analyze environment incl. Forecasting, Set objectives, Determine requirements, Assess resource availabilities, Develop action plans, Implement action plans, Monitor.

13

Strategic ManagementM Chapter 6

• Why do SM ? – To gain competitive advantage 194– Characteristics of a competitive advantage 194-

• SM Process 197– Environmental analysis

• External Environment; Internal Environment– Strategy Formulation

• Mission and LT objectives, Situation analysis, Corporate-business-functional strategies

– Strategy Implementation• Policies, Action Plans (Programs), Budgets

– Evaluation and Control

14

STRATEGIC MANAGEMENTFORMULATING STRATEGY

EXT. ENVT.

INT. ENVT.

MISSION

OBJECTIVESSITUATION

ANALYSIS

STRATEGY

15

EXTERNAL ENVIRONMENT204

• ECONOMY• POLITICAL-LEGAL• SOCIO-CULTURAL• TECHNOLOGY• GLOBAL/INTERNATIONAL• COMPETITION• CUSTOMERS• SUPPLIERS

16

INTERNAL ENVIRONMENT205

• Value Chain/Resource based approach– Functional area resources 205-

• Core competencies 209 • Organization structure

– Dividing work, Authority & Responsibility, Information flow, decision making

• Corporate culture– social responsibility and ethics, integration and intensity

of competitive priorities

17

Mission and LT Objectives

• Mission 198-– Mission statements. Purpose. Content– Compare with Vision and Values Statements

• LT (Strategic ) Objectives 199

18

Integrating Internal and External Analysis(Situation Analysis)

1. SWOT ANALYSIS 214

2. PORTFOLIO ANALYSIS 211

3. INDUSTRY/ COMPETITION ANALYSIS

4. PRODUCT LIFE CYCLE ANALYSIS 209

19

ALTERNATIVE STRATEGIES BY LEVEL

CORPORATE LEVEL(GRAND)

GROWTH STABILITY RETIREMENT

BUSINESS LEVEL: 200

COST LEADERSHIP DIFFERENTIATIONFOCUS

FUNCTIONAL LEVEL:

OPERATIONAL STRATEGY

Generic strategies for competitive advantage. Also called“Competitive Priorities”: Cost/Price, Quality, Availability/ Dependability/Service/Speed, Flexibility/Variety

20

GROWTH STRATEGIES

CONCENTRATION

DIVERSIFICATION

VERTICAL INTEGRATION

ACQUISITIONS & MERGERS

21

OPERATIONS STRATEGY(Class discussion, later in an OM

chapter )PRODUCTS/SERVICESPROCESSTECHNOLOGYQUALITYWORK FORCEFACILITIESSUPPLIERS/VERTICAL INTEGRATION

22

STRATEGY IMPLEMENTATION

POLICIES & PROCEDURES

PROGRAMS

BUDGETS 287

23

MANAGEMENT CONTROLM Chapter 16

• Definition 568• Meaning – monitoring• Basic Process 570

– Establish standards, measure performance, compare and analyze, corrective action if necessary

• Scope of Control in an Organization– Strategic, tactical, operational controls 577– Operational Controls: Preliminary, concurrent, feedback controls

589– Examples: budgetary control, quality control, process control, HR

measures 580-• Principles of effective control 590

– Focus, amount, quality of information, flexibility, timeliness