1. Leadership and Management – Part 1 Business Organization and Management 120

2. Functions of Management PLANNING Setting organizational goals Developing strategies to reach those goals Determining resources needed Setting standards LEADING Guiding and motivating employees to work effectively to accomplish organizational goals and objectives Giving assignments Explaining routines Clarifying policies Providing feedback on performance

3. Functions of Management ORGANIZING Allocating resources, assigning tasks, and establishing procedures for accomplishing goals Preparing a structure (organization chart) showing lines of authority and responsibility Recruiting, selecting, training, and developing employees Placing employees where they’ll be most effective CONTROLLING Measuring results against corporate objectives Monitoring performance relative to standards Rewarding outstanding performance Taking corrective action

4. Planning: Creating a Vision for the Organization

5. Vision Planning involves setting the organizational vision, goals, and objectives. Top managers are expected to create a vision for the firm. A vision is a picture of what the company would like to become.

6. Mission Statement Usually employees work with managers to design a mission statement that reflects the organization’s vision and values. The mission statement becomes the foundation for setting goals and selecting and motivating employees. Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. – Starbucks The mission of Merck is to provide society with superior products and services by developing innovations and solutions that improve the quality of life and satisfy customer needs, and to provide employees with meaningful work and advancement opportunities, and investors with a superior rate of return.

7. Goals Goals need to be mutually agreed upon by workers and management. Goals should be consistent with the values and mission of the organization. Inconsistent goals contribute to confusion, frustration, and poor employee morale.

8. Kinds of Goals Goals are characterized by their expected time horizons Long-term – five or more years Intermediate –one to five years Short-term –less than one year

9. Objectives Specific, short-term statements detailing how to achieve the goals –Example: goal is to obtain an 85% on the next test, objective is to answer correctly the review questions Objectives must be measurable.

10. Planning Strategic planning – provides foundation for the policies, procedures, and strategies for obtaining and using resources to achieve those goals. –Company decides which customers to serve, what goods or services to sell, geographic areas in which the firm will compete. –Becoming more difficult in today’s rapidly changing environment –Done by top managers of the firm

11. Planning Tactical planning – normally done by managers or teams of managers at lower levels of the organization –Setting annual budgets, deciding on details and activities necessary to meet strategic objectives Operational planning – focuses on specific supervisors, department managers, and individual employees –Operational plan is departmental manager’s tool for daily and weekly operations –Include dates departments must meet

12. Planning Contingency planning – back-up plans –Example: a company does not meet sales goals, contingency plan may call for more advertising or to cut prices.

13. Organizing: Creating a Unified System

14. Organizing After managers have planned a course of action, they must organize the firm to accomplish their goals. Organizing means allocating resources, assigning tasks, and establishing procedures for accomplishing the organization’s objectives.

15. Top Management President and other key company executives: –CEO – chief executive officer –COO – chief operating office –CFO – chief financial officer –CIO – chief information officer –CKO – chief knowledge officer CEO is often president of the firm and is responsible for: –all top-level decisions –Introducing change

16. Top Management COO – responsible for putting changes into effect –Structuring work, controlling operations, and rewarding people CFO – responsible for obtaining funds, planning budgets, collecting funds CIO/CKO – responsible for getting the right information to other managers so they can make correct decisions

17. Middle and Supervisory Management Middle management – responsible for tactical planning and controlling –General managers, division managers, branch and plant managers Supervisory management – first-line managers –Directly responsible for supervising workers and evaluating daily performance