1. [] FHF Management Is... A process designed to achieve an organization’s objectives by using its resources effectively & efficiently in a changing environment 6-1

2. FHF What Managers Do Make decisions (utilize resources) achieve objectives Planning Organizing Staffing Directing Controlling 6-2

3. FHF The Importance of Management  Resource acquisition and coordination  Resources : People Raw materials Equipment Money Information 6-3

4. FHF Management Functions Planning Process of determining the organization’s missions, goals, and objectives and deciding how to accomplish them.  Mission  Organization’s statement of purpose and basic philosophy  Goals  The results that a firm wishes to achieve– almost always have multiple goals  Objectives  Results desired by organization 6-4

5. FHF GoalsGoals  A firm almost always has multiple goals  Should be specific  Components of a goal: An attribute sought A target to be achieved A time frame 6-5

6. FHF Common Organizational Objectives The desired end results Profit Competitive advantage Efficiency Growth Service Ethics Community responsibility 6-6

7. FHF Planning as a Function of Management  Strategic  Tactical  Operational 6-7

8. FHF Strategic Plans Duty of executive-level managers Establish the long-range objectives & overall strategy to fulfill firm’s mission  2-10 years forward-looking  Diversification, issuing stock, mergers & acquisitions, going international  Must account for organization’s capabilities and resources, business environment and objectives 6-8

9. FHF Short-range  Strategy implementation Time frame of 1 year or less Environmental changes Periodically reviewed & updated Tactical Plans 6-9

10. FHF Operational Plans Very short-term  Actionable, specific Individuals, work groups, departments 1 month, 1 week, 1 day Help to achieve tactical plans 6-10

11. FHF Management Functions Organizing Structuring of resources & activities to accomplish objectives efficiently & effectively  Importance: Creates synergy Establishes lines of authority Improves communication Improves competitiveness 6-15 …continued on next page

12. FHF Management Functions Staffing Hiring people to carry out the work of the organization  Importance: Recruiting Determine skills Motivate & train Compensation levels 6-12 …continued on next page

13. FHF Management Functions Directing Motivating and leading employees to achieve organizational objectives  Motivation Incentives (raise, promotion) Employee involvement (cost reduction, customer service, new products) Recognition and appreciation …continued on next page 6-13

14. FHF Management Functions Controlling Process of evaluating and correcting activities to keep organization on course  Five activities of controlling: 1. Measuring performance 2. Comparing performance against standards 3. Identifying deviations from standards 4. Investigating causes of deviations 5. Taking corrective action 6-19

15. FHF Top Managers  President  Chief Executive Officer (CEO)  Chief Financial Officer (CFO)  Chief Operations Officer (COO) 6-20

16. FHF Middle Management  Responsible for tactical planning  Implement general guidelines established by top management  Responsibility is more narrowly focused than top managers 6-21

17. FHF First Line Management  Supervise workers  Oversee daily operations  Directing and controlling are primary functions 6-22

18. FHF Areas of Management  Finance  Production  Operations  Human Resources  Marketing  Administration 6-23

19. [] FHF Financial Management 6-24 Focus on obtaining money necessary for the successful operations and using these funds to further organizational goals

20. [] FHF Production & Operations Management 6-25 Develop & administer activities to transform resources into goods, services and ideas for the marketplace.

21. [] FHF Human Resources Management 6-26 Handle staffing function and deal with employees in a formalized manner

22. [] FHF Marketing Management Responsible for planning, pricing and promoting products and making them available to customers 6-27

23. [] FHF Information Technology (IT) Management Responsible for implementing, maintaining and controlling technology applications in business (such as computer networks) 6-28

24. FHF Administrative Managers  Manage an entire business or major segment of the business  Coordinate activities of specialized managers 6-29

25. FHF Skills Needed by Managers  Leadership  Technical expertise  Conceptual skills  Analytical skills  Human relations skills 6-30