CHAPTER 7 – Managers and Managing

management
the process of planning, organizing, leading and controlling a business’s financial, physical, human and information resources in order to achieve its goals
planning
that portion of a manager’s job concerned with determining what the business needs to do and the best way to achieve it
5 steps of planning
1. *goals are established* for the organization
2. managers *identify whether a gap exists* between the company’s desire and actual position
3. managers *develop plans to achieve* the desired objectives
4. the plans that have been *decided* upon are implemented
5. the effectiveness of the plan is *assessed*
organizing
that portion of a manager’s job created with *mobilizing the necessary resources to complete a particular task*
leading
that portion of a manager’s job concerned with *guiding and motivating employees to meet the firm’s objectives*
– managers have the power to give orders and demand results
– leaders attempt to guide and motivate employees to work in the best interests of the organization
controlling
that portion of a manager’s job concerned with *monitoring* the firm’s performance, and, if necessary, acting to bring it in line with the firm’s goals
– control can show where performance is running better than expected, and, thus, can serve as a basis for providing rewards or reducing costs
Types of managers *by LEVELS*
– senior
– middle
– first-line
senior managers
*those managers responsible for a firm’s overall performance and effectiveness and for developing long-range plans for the company*
– president, VP, treasurer, CEO, CFO
– responsible to the board of directors and shareholders of the firm for its overall performance and effectiveness
– set general policies formulate strategies, oversee all significant decisions and represent the company in its dealing with other businesses and govt
middle managers
*those managers responsible for implementing the decisions made by top managers*
– occupy positions of considerable autonomy and importance
– plant manager, operations manager, division manager
– implementing the strategies, policies and decisions of the top managers
first line managers
*those managers responsible for supervising the work of employees*
– supervisor, office manager, group leader
– working with and supervising the employees who report to them
– not limited to just that – involved in other tasks as well
Types of managers *by AREA*
marketing managers
finance
operations
human resources
information
marketing managers
– development, pricing, promotion and distribution of a product or service
– *responsible for getting products and services to buyers*
– marketing is especially important for firms dealing with consumer products
– vice-president for marketing (senior manager), regional marketing managers (middle), several district sales managers (first-line managers)
financial managers
– includes its investments and accounting functions; extremely important to its survival
– finance managers *plan and oversee its financial resources*
– VP for finance (senior), division controller (middle) and accounting supervisor (first-line)
operations managers
– operations = the systems by which it creates goods and services
– *responsible for production control, inventory control and quality control among other duties*
– VP for operations (senior), plant managers (middle), foremen/supervisors (first-line)
human resource managers
– *provide assistance* to other managers when they are *hiring employees, training them, evaluating their performances and determining their compensation level*
– involved in negotiations with labour unions
information managers
*responsible for designing and implementing various systems to gather, process and disseminate information*
Effective managers must possess several skills such as:
– technical
– human relations
– conceptual
– decision-making
– time-management
technical skills
*skills associated with performing specialized tasks within a firm*
– develop skills thru education and experience
– especially important in first-line managers
– as a manager moves the corporate ladder, technical skills become less and less important
human relations skills
*skills in understanding and getting along with people*
– most important for middle managers – who must often as bridges between two managers, first-line managers and managers from other areas
– should possess good communication skills; being able to understand others
conceptual skills
*abilities to think in the abstract, diagnose and analyze different situations and see beyond the present situation*
– these skills help managers recognize new market opportunities (and threats)
– can also help managers analyze the probable outcomes of their decisions
– the need for conceptual skills differs at various management levels – senior managers depend most on conceptual skills
decision making skills
*skills in defining problems and selecting the best courses of action*
Basic steps of 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 productive use of time
4 leading causes of wasted time that managers must address
1. Paperwork
2. Telephone
3. Meetings
4. Emails