1. MANAGEMENT 339: PRINCIPLES OF MANAGEMENT AND OPERATIONS
What is Operations Management (OM) ?
Activities that relate to creation of goods and services through transformation of inputs
Relationship to other functional areas such as Marketing and Accounting Finance
Key areas in OM
Product/service design/Process design/Capacity planning/facilities location and design (Layout)/Quality management/HR and job design/Supply chain management/Inventory and materials management/Operations planning and scheduling/Maintenance
We will learn principles/methods to handle issues in these areas

2. MANAGEMENT 339: PRINCIPLES OF MANAGEMENT AND OPERATIONS
What are Principles of Management ?
Principles applicable to all functions of the organization
Principles applicable at all levels of the organization
Principles useful to all levels of managers
What are the levels of the organization ?
Corporate; Business; Functional. Page 273.
What are levels of managers/management ?
Top management, middle management, entry-level/first-level/supervisory

3. MANAGEMENT What all managers do
Achieving Objectives/Goals
Functions of Management
Efficient Use of Resources

4. MANAGEMENT Definition: Pg 8 Goal/objective directed
A process involving management functions
Resources: assembling and using
Setting:
Organizational - functions, people, coordination
External environment

5. How good is our management ?
Effectiveness: Achieving objectives, goals
Efficiency: Managing resources
OUTPUT INPUT

6. Efficiency Team A Team B Target Tickets Sold 200 150 250 $ Spent 100
200/100
150/50

7. Function of Management Pg 25
Process of Management
Planning
Organizing
Directing/ Leading
Control

8. Planning at Different Levels of Management
Horizon
Long
Medium
Short
Planning
Type
Strategic
Tactical
Operational
Skills (pg 32)
Conceptional
Human
Technical
TOP
MIDDLE
FIRST
LEVEL

9. Trends in Management and OM
Globalization
Growth of service sector
Emphasis on quality and productivity
TQM and JIT philosophies
Social responsibility and ethics
Diversity issues
Emphasis on Technology, IT, logistics, integration, coordination: SCM

10. Social Responsibility and Ethics
Why relevant to business studies: Pg. 151
SR: obligation of an organization’s management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization
Economic, legal, ethical and discretionary responsibilities
What organizations can do: 164-
Leadership, code of ethics, compliance committees/officers, policies (e.g. whistle-blowing), training

11. ETHICS IN MANAGEMENT
Ethics: The code of moral principles and values that govern the behavior of a person or group with respect to what is right or wrong.
Values Statements
Code of ethics
New employee orientation, employee training
Leadership, corporate culture

12. An Overview of Planning. Pg 270-
Purpose
Direction, standards for measurement
Types of plans
Strategic, Tactical and Operational
See chart on page 270
Planning process
Pg 275
Setting Objectives/Goals. 279-
Principles: Page 288-
Specific, Measurable, Realistic but challenging, Participation
MBO. 291

13. Strategic Management. Chapter 6
Objective: Competitive advantage
Characteristics of competitive advantage. 194-
Superiority, inimitability, durability, non-substitutability, appropriate levels of profits/gains
Strategic Management process 197
Strategic Intent/Vision/Mission
Environmental Analysis
Revised Vision/Mission and LT objectives 198-
Detailed situation analysis
Formulate strategies
Develop action for implementation: Programs, Policies, Budgets
Plan monitoring

14. ENVIRONMENTAL SCANNING 204-: EXTERNAL ENVIRONMENT
ECONOMY
POLITICAL-LEGAL
SOCIO-CULTURAL
TECHNOLOGY
GLOBAL/INTERNATIONAL
COMPETITION
CUSTOMERS
SUPPLIERS

15. INTERNAL ENVIRONMENT FUNCTIONAL AREA RESOURCES ORGANIZATION STRUCTURE
Finance, Marketing, Operations, HR, MIS, R&D
ORGANIZATION STRUCTURE
Dividing work, Authority & Responsibility, Information flow, decision making
CORPORATE CULTURE
Social responsibility and ethics, integration and intensity of competitive priorities

16. STRATEGIC MANAGEMENT FORMULATING STRATEGY
EXT. ENVT.
MISSION
OBJECTIVES
SITUATION
ANALYSIS
INT. ENVT.
STRATEGY

17. SITUATION ANALYSIS SWOT ANALYSIS. 214 PORTFOLIO ANALYSIS. 211
PRODUCT LIFE CYCLE ANALYSIS 209
INDUSTRY/ COMPETITION ANALYSIS

18. STRATEGY CORPORATE LEVEL(GRAND) GROWTH STABILITY RETIREMENT
BUSINESS LEVEL: Pg 200
COST LEADERSHIP
DIFFERENTIATION
FOCUS
“Competitive Priorities”: Cost/Price Quality Availability
Dependability
FUNCTIONAL LEVEL:
OPERATIONAL STRATEGY

19. ACQUISITIONS & MERGERS
GROWTH STRATEGY
CONCENTRATION
DIVERSIFICATION
VERTICAL INTEGRATION
ACQUISITIONS & MERGERS

20. Functional level strategy E.g. Operations Strategy
PRODUCTS/SERVICES
PROCESS
TECHNOLOGY
QUALITY
WORK FORCE
FACILITIES
SUPPLIERS/VERTICAL INTEGRATION

21. STRATEGY IMPLEMENTATION
Organizing and Directing view
Policies/procedures, Programs and Budgets view
Seven S view . Pg 218
What are policies? Why important here?
Programs are MT and ST plans
Elements

22. MANAGEMENT CONTROL Chapter 16
The systematic process through which managers regulate organizational activities to make them consistent with expectations established in plans, targets, and standards of performance.

23. MANAGEMENT CONTROL Steps 570-
SETTING STANDARDS
MEASURING ACTUAL PERFORMANCE
COMPARISON ANALYSIS
CORRECTIVE ACTION/ NO ACTION

24. Stages of Management Control 589-
Preliminary control
Concurrent control
Post/Feedback control
Examples of control 577- : quality control, process control, employee evaluations, customer satisfaction surveys, supplier evaluations

25. Principles of Effective Control 591 –
Focus
Amount of
Quality of information
Flexibility