chapter 7 business

* Management – is the process of planning, organizing, leading, and controlling an enterprise’s financial, physical, human, and information resources to achieve the organizations goals of supplying various products and services.
The four functions of management:
planning, organizing, leading, and controlling aspects of a manager’s job are interrelated.
Planning three components: As we have seen, it begins when managers determine the firm’s goals. Next, they develop a comprehensive strategy for achieving those goals. After a strategy is developed, they design tactical and operational plans for implementing the strategy.
The planning process has five basic steps.
* step 1, goals are established for the organization. A commercial airline, for example, may set a goal to fill every seat on every flight.

* In step 2, managers identify whether a gap exists between the company’s desire and actual position. For example, a year-end financial analysis will reveal whether a company met its profitability objectives.

* In step 3, managers develop plans to achieve the desired objectives. Objectives indicate what results are desired, while plans indicate how these objectives are to be achieved.

* In step 4, the plans that have been decided upon are implemented. This is the point in the planning process where thinking is converted into action.

* In step 5, the effectiveness of the plan is assessed. This requires comparing actual results with planned performance.

That portion of a manager’s job concerned with mobilizing the necessary resources to complete a particular task.
That portion of a manager’s job concerned with guiding and motivating employees to meet the firm’s objectives.
That portion of a manager’s job concerned with monitoring the firm’s performance and, if necessary, acting to bring in line with the firm’s goals.
Types of manager’s: we can divide managers by their level of responsibility or by their area of responsibility.
Levels of management: The three basic levels of management are

1. senior,

2. middle

3. First-line management.

Senior managers: those manager’s responsible for the firm overall performance and effectiveness and for developing long-range plans for the company.
1. Common titles for senior managers include president, vice-president, treasurer, chief executive officer (CEO), and chief ‘ financial officer (CFO). Senior managers are responsible to the board of I directors and shareholders of the firm for its overall performance and effectiveness. They set general policies, formulate strategies, oversee all significant decisions, and represent the company in its dealings with other businesses and government.
Middle managers: Those managers responsible for implementing the decisions made by top managers.
2. Titles such as plant manager, operations manager, and division manager are typical of middle-management jobs.
First – line managers : Those managers responsible for supervising the work of employees
* Those who hold titles such as supervisor, office manager, and group leader are first-line managers.
Areas of management:
Within any large company, the top, middle, and first-line managers work in a variety of areas, including marketing, finance, operations, human resources, and information.
Marketing managers:
Marketing managers are responsible for getting products and services to buyers. a large firm will probably have a vice-president for marketing (senior manager), regional marketing managers (middle managers), and several district sales managers (first-line managers).
Financial managers
Nearly every company has financial managers to plan and oversee its financial resources. Levels of financial management may include a vice-president for finance (senior), division controller (middle), and accounting supervisor (first-line).
operations managers
A firm’s operations are the systems by which it creates goods and services. Operations managers are responsible for production control, inventory control, and quality control, among other duties.
Human resource managers
human resource managers to provide assistance to other managers when they are hiring employees, training them, evaluating their performances, and deterĀ¬ mining their compensation level.
Information Managers
A new type of managerial position appearing in many organizations is that of information manager. These managers are responsible for designing and implementing various systems to gather, process, and disseminate information.
Other managers
Some firms have more specialized managers.
Basic management skills
While the range of managerial positions is almost limitless, the success that people enjoy in those positions is often limited by their skills and abilities. Effective managers must possess several skills: technical, human relations, conceptual, decision-making, and time management skills.
Technical skills
skills associated with performing specialized tasks within a firm. People develop their technical skills through education and experience. Technical skills are especially important for first line managers.
Human relations skills
the skills that enable them to understand and get along with other people.
Conceptual skills- refer to a person’s ability to think in the abstract, to diagnose and analyze different situations, and to see beyond the present situation. Conceptual skills help managers recognize new market opportunities (and threats).
Senior managers depend most on conceptual skills, first-line managers least. Conceptual skills are needed in almost any job-related activity.
Decision making skills: skills in defining problems and selecting the best courses of action steps for decision making
1. Define the problem, gather facts, and identify alternative solutions.

2. Evaluate each alternative and select the best one.

3. Implement the chosen alternative, periodically following up and evaluating the effectiveness of that choice.

Time management skills- skills associated with the productive use of time
1. Paperwork. Some managers spend too much time deciding what to do with letters and reports. Most documents of this sort are routine and can be handled quickly. Managers must learn to recognize those documents that require more attention.

2. The telephone. Experts estimate that managers are interrupted by the telephone every five minutes. To manage time more effectively they suggest having a secretary screen all calls and setting aside a certain block of time each day to return the important ones.

3. Meetings. Many managers spend as much as four hours per day in meetĀ¬ ings. To help keep this time productive, the person handling the meeting should specify a clear agenda, start on time, keep everyone focussed on the agenda, and end on time.

4. Email. More and more managers are also relying heavily on email and other forms of electronic communication. Like memos and telephone calls, many email messages are not particularly important; some are even trivial. As a result, time is wasted when managers have to sort through a variety of electronic folders, in-baskets, and archives. As the average number of electronic messages grows, the potential time wasted also increases.