5 chapter Business Essentials, 8 th Edition Ebert/Griffin Business Management Instructor Lecture...
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Transcript of 5 chapter Business Essentials, 8 th Edition Ebert/Griffin Business Management Instructor Lecture...
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.)
5-3Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-4Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-5Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-6Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Planning
• The Planning Process– Determining firm’s goals– Developing strategy for achieving goals– Designing tactical and operational plans for
implementing the strategy
5-7Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Organizing
• The Organizing Process– Arranging resources and activities in a
coherent structure• Prepare organizational charts to help everyone
understand roles and reporting relationships
5-8Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Leading
• Leading– Guiding and motivating employees to meet the
organization’s objectives
5-9Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-10Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
FIGRE 5.1 The Control Process
5-11Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-12Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Human Human ResourcesResources
Human Human ResourcesResources
MarketingMarketingMarketingMarketing
FinancialFinancialFinancialFinancial
OperationsOperationsOperationsOperations
InformationInformationInformationInformation
OtherOtherOtherOther
Areas of Management
5-13Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Basic Management Skills
Human Human Relations Relations
SkillsSkillsTechnical Technical
SkillsSkills
Conceptual Conceptual SkillsSkills
Time-Time-Management Management
SkillsSkills
Decision-Decision-Making Making SkillsSkills
5-14Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Time-Management Skills
• Four leading time wasters:– Paperwork– Telephone calls–Meetings– E-mail
5-15Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-17Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-18Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-19Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-20Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-21Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
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Figure 5.2 Strategy Formulation
5-23Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-24Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-25Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-26Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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.
5-27Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-28Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
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
5-29Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
305-30Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall