Chapter 6: Understanding the Management Process PDF

chapter 6: Understanding the Management Process Management – process of coordinating people and other resources to achieve goals of the organization four kinds of resources: 1. Material resources 2. Human resources – people 3. Financial resources 4. Informational resources management process:...

chapter 6: Understanding the Management Process Management – process of coordinating people and other resources to achieve goals of the organization four kinds of resources: 1. Material resources 2. Human resources – people 3. Financial resources 4. Informational resources management process: - Planning– establishing organizational goals and deciding how to accomplish them - Organizing– grouping resources, activities to accomplish some end result in efficient, effective manner - Leading/motivating – process of influencing people to work on a common goal / process providing reasons for people to work in the best interests of an organization - Controlling – process of evaluating, regulating ongoing activities to ensure goals achieved (3 steps: 1. Setting standards 2. Measuring actual performance 3. Taking corrective action) Mission– statement of the basic purpose that makes an organization different from others Strategic planning process – establishment of organization major goals, objectives and allocation of resources to achieve them Goal – end result that an organization is expected to achieve, in one- to ten-year period Objective– specific statement of what an organization wants to accomplish over a shorter period of time SWOT analysis– identification and evaluation of a firm’s strengths, weaknesses, opportunities, and threats Core competencies– approaches, processes that a company performs well that can give an advantage against competitors Plans: outline of the actions that organization want to accomplish (goals, objectives) Types of plans: - Strategic plan → organization’s plan, guide for major policy setting, decision making - Tactical plan → smaller-scale plan developed for a strategy - Operational plan → type of plan designed to implement tactical plans - Contingency plan → outlines alternative actions if organization’s plans are ineffective Directing– combined processes of leading and motivating Managers: can be classified according to their Level within an organization, Area of management: - Top manager → upper-level executive who guides, controls the fortunes of an organization - Middle manage → manager who implements strategy, policies developed by top management - First-line manager→ manager coordinate, supervises activities of operating employees Financial manager – manager responsible for an organization’s financial resources Operations manager – manager manages the systems that convert resources into goods and services Marketing manager – manager responsible for facilitating exchange of products between an organization and customers or clients Human resources manager – person managing organization’s human resources programs Administrative manager – manager not associated with specific functional area provides administrative guidance and leadership Conceptual skills – ability to think in abstract terms Analytic skills – ability to identify problems correctly, generate alternatives, select the “best” alternatives for problems Interpersonal skills – ability to deal effectively with other people Technical skills – specific skills needed to accomplish a specialized activity Communication skills – ability to speak, listen, and write effectively Leadership – the ability to influence others formal leaders informal leaders Have legitimate power of position no authority to influence others to work authority in organization to influence others May/may not exert their influence in support to work toward the organization’s objectives of the organization Autocratic leadership – task-oriented leadership where workers are told what to do and how to accomplish it without having a say in the decision making process Participative leadership – leadership style where members of a team are involved in identifying essential goals and developing strategies for those goals Entrepreneurial leadership – personality based leadership style where manager inspire workers with a vision of what can be accomplished to benefit stakeholders Decision making – choosing one alternative from a set of alternatives Problem – discrepancy between an actual condition and desired condition (People consider a problem to be “negative,” but it can also be “positive.” Managers can analyze problems in terms of symptoms rather than underlying causes.) Certain techniques can aid in the generation of creative alternative: - Brainstorming - Trial and error Managers must select the alternative that will be most effective and practical but If the problem still exists, managers may: - Decide to give the chosen alternative more time to work. - Adopt a different alternative. - Start the problem identification process all over again. TQM – coordination of efforts to improve customer satisfaction, increasing employee participation, stronger supplier partnerships, facilitating organization atmosphere of improvement Benchmarking – process used to evaluate the products, processes, management practices of another organization that is superior in some way in order to improve quality