Business Management and Organization © 2014 Pearson Education, Inc.7-1 chapter 7 Better Business 3rd Edition Solomon (Contributing Editor) · Poatsy · Martin

What Is Management? Management: working with people and resources to accomplish the goals of the organization © 2014 Pearson Education, Inc. 7-2

The Managerial Pyramid: Levels of Management © 2014 Pearson Education, Inc. 7-3

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 © 2014 Pearson Education, Inc. 7-4

Stages of Decision-Making © 2014 Pearson Education, Inc. 7-5 What is the most important step?

The Four Functions of Management © 2011 Pearson Education, Inc. 6 Note: Leadership is presented in Chapter 8 1) Planning Process of establishing company goals and how to accomplish them 2) Organizing Process of structuring resources to carry out plans 3) Leading Directing and motivating people to achieve organizational goals 4) Controlling Process 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 © 2011 Pearson Education, Inc. 7 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 © 2014 Pearson Education, Inc. 7-8 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 © 2014 Pearson Education, Inc. 7-9

Well Designed Goals © 2014 Pearson Education, Inc. 7-10

Tactical, Operational, and Contingency Planning © 2014 Pearson Education, Inc.7-11

Organizing: Fitting Together the Pieces of the Puzzle Organizing: the process of structuring resources to carry out plans - Capital - Personnel - Raw materials - Other resources © 2014 Pearson Education, Inc. 7-12

Organizational Charts © 2014 Pearson Education, Inc Shows how groups of employees fit into the larger organizational structure

Key Organizational Considerations © 2014 Pearson Education, Inc  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) © 2014 Pearson Education, Inc.7-15

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 © 2014 Pearson Education, Inc. 7-16

The Control Cycle © 2014 Pearson Education, Inc.7-17 *Standards Must Be: -Specific -Attainable -Measurable

Tools for Assessing Performance © 2014 Pearson Education, Inc Check Sheet Control Chart Histogram Pareto Chart Scatter Plot Run Chart Cause-and-effect diagram

© 2014 Pearson Education, Inc. 7-19