1-1 The Importance Of Business Management

1-1 The Importance Of Business Management - Transcript

“Companies fail when they
become complacent and imagine
that they will always be
successful. So we are always
challenging ourselves. Even the
most successful companies must
constantly reinvent themselves.
--Bill Gates
Chairman and Chief Software Architect
Microsoft

The Importance of Business
Management
1.1

The Business World Today
• Constant change!
– Technology
– Society
– Environment
– Competition
– Diversity

What is Management?
• The process of deciding how best to use a
business’s resources to produce good or
provide services
– Employees
– Equipment
– Money

What is Management?
• Auto industry managers
– Assembly line: schedule
work shifts, supervise
assembly of vehicles
– Engineering: develop new
product features, enforce
safety standards
– General: plan for the future
– All organizations need
managers!

Levels of Management
• Senior management
– Establishes the goal/objectives of the business
– Decides how to use the company’s resources
– Not involved in the day-to-day problems
– Set the direction the company will follow
– Chairperson of the company’s board of
directors, CEO, COO, senior vice presidents

Levels of Management
• Middle management
– Responsible for meeting the goals that senior
management sets
– Sets goals for specific areas of the business
– Decides which employees in each area must
do to meet goals
– Department heads, district sales managers

Levels of Management
• Supervisory management
– Make sure the day-to-day
operations of the business
run smoothly
– Responsible for the people
who physically produce the
company's products or
services
– Forepersons, crew leaders,
store managers

The Management Pyramid

The Management Process
• Three ways to examine how management
works:
– Tasks performed
• Planning, organizing, staffing, leading, controlling
– Roles played (set of behaviors associated with
a particular job)
• Interpersonal, information-based, decision-making
– Skills needed
• Conceptual, human relations, technical

The Management Process
• Planning
– Decides company
goals and the actions
to meet them
– CEO sets a goal of
increasing sales by
10% in the next year
by developing a new
software program

The Management Process
• Organizing
– Groups related
activities together and
assigns employees to
perform them
– A manager sets up a
team of employees to
restock an aisle in a
supermarket

The Management Process
• Staffing
– Decides how many and what kind of people a
business needs to meet its goals and then
recruits, selects, and trains the right people
– A restaurant manager interviews and trains
servers

The Management Process
• Leading
– Provides guidance
employees need to
perform their tasks
– Keeping the lines of
communication open
• Holding regular staff
meetings

The Management Process
• Controlling
– Measures how the
business performs to
ensure that financial
goals are being met
– Analyzing accounting
records
– Make changes if
financial standards not
being met

Relative Amount of Emphasis
Placed on Each Function of
Management

Management Roles
• Managers have authority within
organizations
– Managers take on different roles to best use
their authority
• Interpersonal roles
• Information-related roles
• Decision-making roles

Management Roles
• Interpersonal roles
– A manager’s relationships with people
• Providing leadership with the company
• Interacting with others outside the organization
• Senior managers spend much of their time on
interpersonal roles
– Represent the company in its relations with people
outside the company, interacting with those people, and
providing guidance and leadership to the organization
– Determine a company’s culture
» Sears, Roebuck and Co.

Management Roles
• Information-related roles
– Provide knowledge, news or advice to employees
• Holding meetings
• Finding ways of letting employees know about important
business activities
• Decision-making roles
– Makes changes in policies, resolves conflicts, decides
how to best use resources
• Middle and supervisory managers spend more time resolving
conflicts than senior managers

Management Skills
• Conceptual skills
– Skills that help managers understand how different
parts of a business relate to one another and to the
business as a whole
– Decision making, planning, and organizing

Management Skills
• Human relations skills
– Skills managers need to understand and work well
with people
– Interviewing job applicants, forming partnerships with
other businesses, resolving conflicts

Management Skills
• Technical skills
– The specific abilities that people use to perform their
jobs
– Operating a word processing program, designing a
brochure, training people to use a new budgeting
system

Management Skills
• All levels of management require a
combination of conceptual, human
relations, and technical skills
– Conceptual skills most important at senior
management level
– Technical skills most important at lower levels
– Human relations skills important at all levels

Principles of Management
• A principle is a basic truth or law
• Managers often use certain rules when
deciding how to run their business
• Most management principles are
developed through observation and
deduction

Principles of Management
• Deduction is the process of drawing a
general conclusion from specific examples
– Observe that employees in 15 companies work
more efficiently when their supervisors threat
them well
– Deduce/conclude that a pleasant work
environment contributes to productivity
– Conclusion becomes a management principle

Principles of Management
• Management principles are best viewed as
guides to action rather than rigid laws
• If a principle does not apply to a specific
situation, an experienced manager will not
use it
– Important to recognize when a principle
shouldn’t be followed
– Being able to change and adapt is an important
management skill

Principles of Management
• Do all employees
need to arrive at work
at the same time?
• Do people who work
in offices need to
dress in a certain
way?

Women and Minorities
in Management
• In the last three decades, an increased
number of women and minorities have
joined the workforce
– They’ve attained positions as managers in
companies of all sizes
• Women and minorities now serve as the
CEOs of prestigious businesses
– Avon, eBay, Lucent

Women and Minorities
in Management
• White men still hold most
senior management
positions
• Glass ceiling: the
invisible barrier that
prevents women and
minorities from moving
up in the world of
business
– Steadily becoming a
window of opportunity!

Women and Minorities
in Management
• Workers and managers
must be sensitive to
challenges presented by
a multicultural workplace
– Religious holidays that are
celebrated at different
times throughout the year
by Muslims, Christians,
Jews and other religious
groups