Introduction to Management - Global Edition (PDF)

UNIVERSIDAD DE ALMERIA Introduction Introduction to to Management Management Management Management and and You You in in the the Workplace Workplace Management Manage...

UNIVERSIDAD DE ALMERIA Introduction Introduction to to Management Management Management Management and and You You in in the the Workplace Workplace Management Management ¢ Fifteenth Fifteenth Edition, Edition, Global Global Edition Edition GLOBAL EDITION “iy MANAGEMENT FIFTEENTH EDITION ; Chapter 1 Chapter 1 A ¢ Managers Managers and and You You in in the the | Workplace Workplace rary UNIVERSIDAD DE ALMERIA Learning Learning Objectives Objectives 1.1 1.1 Tell Tell who who managers managers are are and and where where they they work. work. 1.2 1.2 Explain Explain why why managers managers are are important important to to organizations. organizations. 1.3 1.3 Describe Describe the the functions, functions, roles, roles, and and skills skills of of managers. managers. 1.4 1.4 Describe Describe thethe factors factors that that areare reshaping reshaping and and redefining redefining the the manager’s manager's job.job. 1.5 1.5 Explain Explain the the value value of of studying studying management. management. 1.6 1.6 Describe Describe the the benefits benefits ofof the the Employability Employability Skills Skills Matrix Matrix (E SM). (ESM). SSB UNIVERSIDAD & ge’ DE ALMERIA Who Who Is Is aa Manager? Manager? Manager: Manager: someone someone who who coordinates coordinates and and oversees oversees the the work work of of other other people people so so that that organizational organizational goals goals can can be be accomplished accomplished “* However, managers However, managers may may have have additional additional work work duties duties not not related related to to coordinating coordinating the the work work of of others. others. Managers Managers can can be be classified classified by by their their level level in in the the organization, organization, particularly particularly in in traditionally traditionally structured structured organizations—those organizations—those shaped shaped like like aa pyramid pyramid UNIVERSIDAD DE ALMERIA Exhibit Exhibit 1.1 1.1 Levels Levels of of Management Management Who Is a Manager? First-Line Managers UNIVERSIDAD DE ALMERIA Who Who Is Is aa Manager? Manager? Classifying Classifying Managers Managers ¢ First-Line First-Line Managers: Managers: managemanage the the work work ofof non-managerial non-managerial employees employees ¢ First-line First-line managers managers may may be called supervisors be called supervisors or or even even shift shift managers managers, , district district managers managers, , department department managers managers, , oror office office managers. managers. are are typically typically involved involved with with producing producing the the organization’s organization’s products products or or servicing servicing the the organization’s organization’s customers. customers. ¢ Middle Middle Managers: Managers: manage manage the the work work ofof first-line first-line managers managers ¢ They They may may have have titles titles such such asas regional regional manager, manager, project project leader, leader, store store manager, manager, or or division division manager. manager. UNIVERSIDAD DE ALMERIA Who Who Is Is aa Manager? Manager? Classifying Classifying Managers Managers ¢ Top Top Managers: Managers: responsible responsible for for making making organization-wide organization-wide decisions decisions and and establishing establishing plans plans and and goals goals that that affect affect thethe entire entire organization. organization. These These individuals individuals typically typically have have titles titles such as executive such as executive vice president, president vice president, president, , managing managing director director, , chief chief operating operating officer or chief officer, , or chief executive executive.. Where Where Do Do Managers Managers Work? Work? ¢ Organization: Organization: aa deliberate deliberate arrangement arrangement of of people people to to accomplish accomplish some some specific specific purpose. purpose. Organizations Organizations share share three three common common characteristics characteristics (1) (1) each each has has aa distinct distinct purpose; purpose; (2) (2) each each is is composed composed of of people; people; and and (3) (3) each each develops develops some some deliberate deliberate structure structure so so members members can can do do their their work work 5 UNIVERSIDAD 2p DE ALMERIA Exhibit Exhibit 1.2 1.2 Characteristics Characteristics of of Organizations Organizations Who Is a Manager? Deliberate =. a People Exhibit Exhibit 1.2 1.2 shows shows the the three three common common characteristics characteristics of of organizations: organizations: distinct distinct purpose, purpose, deliberate deliberate structure, structure, and and people. people. NIVERSIDAD E ALMERIA Where Where Do Do Managers Managers Work? Work? Organization Organization ¢ Although Although these these three three characteristics characteristics areare important important in defining what in defining what anan organization organization is, is, the the concept concept of of an an organization organization is Is changing. changing. ¢ These These changes changes include: include: — flexible flexible = workwork arrangements, arrangements, employee employee work work teams, teams, open open communication communication systems, systems, and and supplier supplier alliances. alliances. ¢ Organizations Organizations are are becoming becoming more more open, open, flexible, flexible, and and responsive responsive to to changes changes @2p = DE ALMERIA Why Why Are Are Managers Managers Important? Important? ¢ Organizations Organizations needneed their their managerial managerial skills skills and and abilities abilities now now more more thanthan ever ever ¢ Managers Managers areare critical critical toto getting getting things things done done ¢ Managers Managers do do matter matter to to organizations organizations 4 UNIVERSIDAD E ALMERIA Exhibit Exhibit 1.3 1.3 Managers Managers Make Make aa Difference Difference #1 Variable in Productivity & Loyalty = Quality of Employee-Supervisor Relationship Half of LE Cyer $2300 Adulte Ellen Have Lett Each Year Thelr Joba = Cost of to Get Managers Away From Who Are a Bad Abort Manager Engaged Exhibit Exhibit 1.3 1.3 shows shows data data on on why why managers managers are are important. important. Managers Managers that that are are not not engaged engaged cost cost organizations organizations billions billions of of dollars dollars through through employee employee turnover. turnover. ZAUNINDSOIBYND) DE ALMERIA What What do do managers managers do? dor ¢ Management Management involvesinvolves coordinating coordinating and and overseeing overseeing the the work work activities activities of of others others so so that that their their activities activities are completed efficiently are completed efficient/yand and effectively effectively.. ¢ Coordinating Coordinating and and overseeing overseeing the the work work of of others others is is what what distinguishes distinguishes aa managerial managerial position position from from aa nonmanagerial nonmanagerial one. one. 5 UNIVERSIDAD 2p DE ALMERIA What What do do managers managers do? dor Efficiency Efficiency and and Effectiveness Effectiveness ¢ Efficiency: Efficiency: doing doing things things right right ¢ getting getting the the most most output output from from the the least least amount amount of of input input ¢ Effectiveness: Effectiveness: doing doing the the right right things things ¢ attaining attaining organizational organizational goals goals NIVERSIDAD DE ALMERIA Exhibit Exhibit 1.4 1.4 Efficiency Efficiency and and Effectiveness Effectiveness in in Management Management — Efficiency (Means) Effectiveness (Ends) ——— Resource Goal Usage Attainment Low Waste High Attainment Management Strives for: Low Resource Waste (high efficiency) High Goal Attainment (high effectiveness) Exhibit Exhibit 1.4 1.4 shows shows that that whereas whereas efficiency efficiency is is concerned concerned with with the the means means ofof getting getting things things done, done, effectiveness effectiveness is is concerned concerned with with the the ends, ends, or or attainment attainment of of organizational organizational goals. goals. &\Y UNIVERSIDAD »DE ALMERIA What What do do managers managers do? dor Management Management Functions Functions ¢ Henri Henri Fayol, Fayol, aa French French industrialist industrialist in in the the early early 1900s, 1900s, proposed roposed that that managers managers perform perform five five management management functions unctions ¢ Planning: Planning: Defining Defining goals, goals, establishing establishing strategies strategies to to achieve achieve goals, and developing goals, and developing plans plans to to integrate integrate andand coordinate coordinate activities activities ¢ Organizing: Arranging and Organizing: Arranging and structuring structuring workwork toto accomplish accomplish organizational organizational goals goals ¢ Leading: Working with Leading: Working with and and through through people people to to accomplish accomplish goalsgoals. Controlling: Controlling Monitoring, Monitoring, comparing, comparing, and and correcting correcting work wor GY UNIVERSIDAD 2p DE ALMERIA Exhibit Exhibit 1.5 1.5 Four Four Functions Functions of of Management Management Lead to In In practice, practice, managing managing isis not not always always performed performed in in aa sequence sequence as as outlined outlined above. above. Since Since these these four four management management functions functions are are integrated integrated into into the the activities activities of of managers managers throughout throughout the the workday, workday, they they should should be be viewed viewed as as an an ongoing ongoing process. process. Exhibit Exhibit 1.5 1.5 shows shows the the four four functions functions used used to to describe describe aa manager’s manager’s work: work: planning, planning, organizing, organizing, leading, leading, and and controlling. controlling. NIVERSIDAD E ALMERIA What What do do managers managers do? dor Mintzberg’s Mintzberg’s Managerial Managerial Roles Roles and and aa Contemporary Contemporary Model Model ofof Managing Managing ¢ Henry Henry Mintzberg, Mintzberg, aa management management researcher, researcher, conducted conducted aa precise precise study study ofof managers managers at at work. work. He He concluded concluded thatthat managers managers perform perform 1010 different different roles, roles, which which are are highly highly interrelated interrelated ¢ Roles: Roles: specific specific actions actions or or behaviors behaviors expected expected ofof and and exhibited exhibited byby aa manager manager ¢ Mintzberg Mintzberg identified identified 1010 roles roles grouped grouped around around interpersonal interpersonal relationships, relationships, the the transfer transfer of of information, information, and and decision decision making making GY UNIVERSIDAD Sse DE ALMERIA What What do do managers managers do? dor Types Types of of Roles Roles ¢ Interpersonal Interpersonal ¢ Figurehead, Figurehead, leader, leader, liaison liaison ¢ Informational Informational ¢ Monitor, Monitor, disseminator, disseminator, spokesperson spokesperson ¢ Decisional Decisional ¢ Entrepreneur, Entrepreneur, disturbance disturbance handler, handler, resource resource allocator, allocator, negotiator negotiator NIVERSIDAD E ALMERIA Exhibit Exhibit 1.6 1.6 Mintzberg’s Mintzberg’s Managerial Managerial Roles Roles p) = Monitor ee Mintzberg’s = Managerial © Roles ac ‘al T ; Spokesperson eS Exhibit Exhibit 1.6 1.6 shows shows the the managerial managerial roles roles identified identified by by Mintzberg. Mintzberg. NIVERSIDAD E ALMERIA What What do do managers managers do? dor Management Management Skills Skills Managers Managers need need certain certain skills skills to to perform perform the the challenging challenging duties duties and and activities activities associated associated with with being being aa manager. manager. Robert Robert L. L. Katz Katz found found through through his his research research that that managers managers need need three three essential essential skills. Skills. Technical Technical skills skills —– Knowledge Knowledge and and proficiency proficiency in in aa specific specific field field Human Human skills skills —– The The ability ability toto work work well well with with other other people people Conceptual Conceptual skills skills —– The The ability ability toto think think and and conceptualize conceptualize aboutabout abstract abstract and and complex complex situations situations concerning concerning thethe organization organization :, UNIVERSIDAD /DE ALMERIA Exhibit Exhibit 1.7 1.7 Skills Skills Needed Needed at at Different Different Managerial Managerial Levels Levels anagers Middle Technical Managers Lower-Level Technical Managers Exhibit Exhibit 1.7 1.7 shows shows the the relationships relationships of of conceptual, conceptual, human, human, and and technical technical skills skills to to managerial managerial levels. levels. NIVERSIDAD Challenges Challenges Facing Facing Managers Managers Today Today and and into into the the Future Future ¢ Focus Focus on on technology technology ¢ Focus Focus on on disruptive disruptive innovation innovation ¢ Focus Focus on on social social media media ¢ Focus Focus on on ethics ethics ¢ Focus Focus on on political political uncertainty uncertainty ¢ Focus Focus on on the the customer customer ¢\ UNIVERSIDAD ALMERIA Challenges Challenges Facing Facing Managers Managers Today Today and and into into the the Future Future Focus Focus on on Technology Technology ¢ Managers Managers must must get get employees employees on on board board with with new new technology technology ¢ Managers Managers must must oversee oversee the the social social interactions interactions and and challenges challenges involved involved in in using using collaborative collaborative technologies technologies “* Cloud  Cloud computing, computing, social social media, media, and and robotics robotics are are all all changing changing howhow things things getget done done in in the the workplace. workplace. Managers Managers need need toto get get employees employees on on board board with with new new technology technology and and ensure ensure that that they they are are comfortable comfortable withwith it, it, can can use use it, it, and and understand understand how how itit improves improves their their lives lives 2 UNIVERSIDAD #2 DE ALMERIA Challenges Challenges Facing Facing Managers Managers Today Today and and into into the the Future Future Focus Focus on on Disruptive Disruptive Innovation Innovation ¢ One One ofof the the most most critical critical challenges challenges facing facing managers managers today today is is dealing dealing with with disruptive disruptive innovation innovation ¢ Disruptive Disruptive innovation innovation involves involves new new products, products, processes, processes, or or services services that that radically radically change change the the rules rules of of the the game. game. “* A  \/ A problem problem for for organizations organizations is is working working toto get get all all employees employees involved involved in in the the innovation innovation process. process. Managers Managers can can respond respond toto this this need need by by creating creating aa “team “team close,” close,” aa time time when when all all employees employees are are scheduled scheduled to to close close the the store store andand leave leave together. together. This This helps helps create create an an attitude attitude of of working working together together andand commitment commitment UNIVERSIDAD DE ALMERIA Challenges Challenges Facing Facing Managers Managers Today Today and and into into the the Future Future Focus Focus on on Social Social Media Media ¢ Social Social media: media: forms forms of of electronic electronic communication communication through through which which users users create create online online communities communities toto share share ideas, ideas, information, information, personal personal messages, messages, and and other other content content “*ln some In Some cases, cases, social social media media cancan enhance enhance customer customer relationships, relationships, helphelp better better manage manage customers, customers, and and tap tap into into talent. talent. But, But, managers managers need need to to remember remember thatthat social social media media isis aa tool tool that that needs needs toto be be managed managed to to be be beneficial. beneficial. SY UNIVERSIDAD & = DE ALMERIA Challenges Challenges Facing Facing Managers Managers Today Today and and into into the the Future Future Focus Focus on on Ethics Ethics ¢ We We commonly commonly see see unethical unethical business business practices practices in in the the news news ¢ Examples Examples include include pharmaceutical pharmaceutical firmsfirms raising raising drug drug prices prices byby 500% 500% or or someone someone turning turning inin fake fake receipts receipts for for expenses expenses ¢ Organizational Organizational survival survival depends depends on on building building trust trust with with customers, customers, clients, clients, suppliers, suppliers, employees, employees, and and other other stakeholders stakeholders GY UNIVERSIDAD 2G % DE ALMERIA Challenges Challenges Facing Facing Managers Managers Today Today and and into into the the Future Future Focus Focus on on Political Political Uncertainty Uncertainty ¢ In the past, Inthe past, major major democratic democratic nations nations like like the the UUS,S, Canada, Canada, andand the the U UKK have have been been relatively relatively stable stable politically politically ¢ In the last Inthe last 10 10 years years these these countries countries have have shifted shifted to to greater greater political political uncertainty uncertainty ¢ Brexit Brexit and and the the U SMCA are USMCA are examples examples of of that that shift shift ¢ Some Some states, states, such such asas California, California, have have placed placed additional additional regulations regulations on on business business GY UNIVERSIDAD #2 DE ALMERIA Challenges Challenges Facing Facing Managers Managers Today Today and and into into the the Future Future Focus Focus on on the the Customer Customer ¢ Without Without customers, customers, most most organizations organizations would would cease cease to to exist exist ¢ Managing Managing customer customer relationships relationships is is the the responsibility responsibility of of all all managers managers and and employees employees ¢ Consistent, Consistent, high-quality high-quality customer customer service service is Is essential essential S22 UNIVERSIDAD & ge’ DE ALMERIA Why Why study study Management? Management? The The Universality Universality of of Management Management ¢ The The reality reality that that management management is is needed needed inin all all types types and and sizes sizes of of organizations, organizations, at at all all organizational organizational levels, levels, in in all all organizational organizational areas, areas, and and in in organizations organizations no no matter matter where where located located S22 UNIVERSIDAD & ge’ DE ALMERIA Exhibit Exhibit 1.8 1.8 Universal Universal Need Need for for Management Management All Sizes of Organizations — Small- ¢ Opportunities e Threats Identify the organization’s. Formulate Implement Evaluate current mission, goals, | 1 SWOT Analysis Strategies | { Strategies ? Results and strategies Internal Analysis |__s.. ¢ Strengths e Weaknesses Exhibit Exhibit 9.1 9.1 illustrates illustrates the the six-step six-step process process of of strategic strategic management, management, which which encompasses encompasses strategy strategy planning, planning, implementation, implementation, and and evaluation. evaluation. UNIVERSIDAD DE ALMERIA Step Step 4: 4: Formulating Formulating Strategies Strategies ¢ Three Three main main types types of of strategies strategies managers managers will will formulate: formulate: ¢ Corporate Corporate ¢ Competitive Competitive ¢ Functional Functional Corporate Multibusiness Corporation | | | I | | Functional Research and Manufacturing Marketing Human Finance Development Resources  =—_ Mission: Create more smiles with every sip and every bite Business Unit 1 Business unit 2 Human I+D+i l+D+i Manufacturing Manufacturing Marketing Marketing Resources What What is is Corporate Corporate Strategy? Strategy? ¢ Corporate Corporate strategy: strategy: anan organizational organizational strategy strategy that that determines determines whatwhat businesses businesses aa company company is Is in in or or wants wants to to be be in, in, and and what what it it wants wants to to do do with with those those businesses businesses Corporate Multibusiness Corporation | | I Competitive Strategic Strategic Strategic Business Unit 1 Business Unit 2 Business Unit 3 Functional Research and Human Manufacturing Marketing Finance Development Resources UNIVERSIDAD DE ALMERIA What What Are Are the the Types Types of of Corporate Corporate Strategy? Strategy? ¢ Growth Growth strategy: strategy: aa corporate corporate strategy strategy that’s that’s used used when when an an organization organization wants wants toto expand expand thethe number number ofof markets markets served served oror products products offered, offered, either either through through itsits current current business(es) business(es) or or through through new new business(es) business(es) ¢ Concentration Concentration ¢ Vertical Vertical integration integration (backward, (backward, forward, forward, oror both) both) ¢ Horizontal Horizontal integration integration (with (with competitors) competitors) ¢ Diversification Diversification (either (either related related oror unrelated) unrelated) UNIVERSIDAD DE ALMERIA What What Are Are the the Types Types of of Corporate Corporate Strategy? Strategy? ¢ Growth Growth strategy: strategy: **Concentration: “Concentration: focuses focuses on on its its primary primary lineline of of business business BOS BOS corporation corporation (( more more audio audio products) products) **Vertical “Vertical integration: integration: backward backward (supplier) (supplier) forward forward (distributor) (distributor) McDonald's McDonald's not not only only provide provide fast fast food. food. The The control control their their own own meet meet by by owning owning livestock livestock farms farms **Horizontal “Horizontal integration integration (with (with competitors) competitors) Facebook Facebook (Meta) (Meta) acquisition acquisition of of Instagram. Instagram. **Diversification: “Diversification: related related or or unrelated unrelated industry industry Clothing Clothing retailer retailer company company that that decides decides to to diversify diversify via via aa new new business business unit unit focused focused on on accessories accessories Vehicles Vehicles company company that that decides decides to to diversify diversify via via aa new new business business unit unit focused focused on on clothes clothes wi 22 UNIVERSIDAD DE ALMERIA Stability Stability and and Renewal Renewal Strategies Strategies ¢ Stability Stability strategy: strategy: aa corporate corporate strategy strategy in in which which an an organization organization continues continues to to do do what what it it is is currently currently doing doing ¢ Renewal Renewal strategy: strategy: aa corporate corporate strategy strategy designed designed to to address address declining declining performance performance HOW SHOULD A UNIVERSIDAD Competitive Competitive Strategies Strategies ¢ Competitive Competitive strategy: strategy: anan organizational organizational strategy strategy for for how how an an organization organization will will compete compete in in its its business(es) business(es) ¢ Strategic Strategic business business unit unit (SBU): (SBU): the the single single independent independent businesses businesses of of an an organization organization that that formulate formulate their their own own competitive competitive strategies strategies Corporate Multibusiness Corporation | Competitive Strategic Strategic Strategic Business Unit 1 Business Unit 2 Business Unit 3 Functional Research and Human Manufacturing Marketing Finance Development Resources UNIVERSIDAD DE ALMERIA The The Role Role of of Competitive Competitive Advantage Advantage ¢ Competitive Competitive advantage: advantage: WhatWhat sets sets an an organization organization apart;apart; its its distinctive distinctive edge edge ¢ Competitive Competitive advantage: advantage: That That distinctive distinctive edge edge can can come come from from thethe organization’s organization’s core core competencies competencies by by doing doing something something that that others others cannot cannot do do oror doing doing itit better better than than others others cancan do do it. it. ¢ Quality Quality ¢ Low Low cost cost ¢ Technology Technology ¢ Other Other factors factors UNIVERSIDAD DE ALMERIA Sustaining Sustaining Competitive Competitive Advantage Advantage (1(1 of of 2) 2) Businesses Businesses mustmust not not only only develop develop aa competitive competitive advantage advantage but but they they must must also also sustain sustain it. it. ¢ Economic Economic Moat:Moat: sustaining sustaining competitive competitive advantage advantage by by protecting protecting long-term long-term profits profits and and market market share share using using various various means. means. ¢ Economic Economic moatmoat was was aa term term popularized popularized by by Warren Warren Buffett Buffett as as aa way way to to visualize visualize the the concept concept ofof keeping keeping aa competitive competitive advantage. advantage. Sy UNIVERSIDAD =DE ALMERIA Choosing Choosing aa Competitive Competitive Strategy Strategy ¢ Cost Cost leadership leadership strategy strategy ¢ When When anan organization organization competes competes on on the the basis basis ofof having having the the lowest lowest costs costs (costs (costs oror expenses, expenses, notnot prices) prices) inin its its industry. industry. A A low-cost low-cost leader leader isis highly highly efficient. efficient. Overhead Overhead is is kept kept to to aa minimum, minimum, andand the the firm firm does does everything everything it it can can toto cut cut costs. costs. ¢ Differentiation Differentiation strategy strategy ¢ A A company company thatthat competes competes by by offering offering unique unique products products that that are are widely widely valued valued by by customers. customers. Product Product differences differences might might come come from from exceptionally exceptionally high high quality, quality, extraordinary extraordinary service, service, innovative innovative design, design, technological technological capability, capability, oror an an unusually unusually positive positive brand brand image. image. Practically Practically anyany successful successful consumer consumer product product or or service service can can be be identified identified as as an an example example of of the the differentiation differentiation strategy. strategy. & 2 UNIVERSID AD DE ALMERIA Choosing Choosing aa Competitive Competitive Strategy Strategy Focus Focus strategy strategy This This strategy strategy involves involves aa cost cost advantage advantage (cost (cost focus) focus) or or aa differentiation differentiation advantage advantage (differentiation (differentiation focus) focus) in in aa narrow narrow segment segment or or niche. niche. Segments Segments cancan bebe based based onon product product variety, variety, customer customer type, type, distribution distribution channel, channel, or or geographical location.. geographical location ¢ Lefty’s Lefty’s Sells Sells Products Products That That Are Are Specifically Specifically Designed Designed For For Left-Handed Left-Handed People People Stuck Stuck inin the the middle middle An An organization organization becomes becomes stuck stuck in in the the middle middle when when its its costs costs are are too too high high to to compete compete with with the the low-cost low-cost leader leader or or when when its its products products andand services services aren’t aren't differentiated differentiated enough enough toto compete compete with with the the differentiator. differentiator. QZ UNIVERSIDAD vse DE ALMERIA Functional Functional Strategies Strategies ¢ Functional Functional strategies: strategies: aa strategy strategy used used by by an an organization’s organization's various various functional functional departments departments to to support support the the competitive competitive strategy strategy Corporate Multibusiness Corporation | | I | Competitive Strategic Strategic Strategic Business Unit 1 Business Unit 2 Business Unit 3 Functional Research and Human Manufacturing Marketing Finance Development Resources UNIVERSIDAD DE ALMERIA Examples Examples of of Differentiation Differentiation Strategies Strategies * Quality Quality ¢ Innovation Innovation strategies strategies ¢ Transfer Transfer technology technology from from one one division division toto another another ¢ Invest Invest in in R&D RGD ¢ Improve Improve thethe process process ¢ First First mover: mover: anan organization organization that’s that’s first first to to bring bring aa product product innovation innovation toto the the market market oror to to use use aa new new process process innovation innovation UNIVERSIDAD DE ALMERIA Exhibit Exhibit 9.4 9.4 First First Mover Mover Advantages Advantages and and Disadvantages Disadvantages Advantages Reputation for being innovative and an industry leader Cost and learning benefits Disadvantages Control over scarce - B - Uncertainty over exact resources and keeping direction technology and competitors from having 5 accessto them market will go TSS SS B Aisk of competitors building customer relation- “i ships and customer loyalty @ Financial and strategic risks B High development costs Exhibit Exhibit 9.4 9.4 shows shows the the advantages advantages and and disadvantages disadvantages of of being being aa first first mover. mover. Other Other Differentiation Differentiation Strategies Strategies ¢ Customer Customer Service Service ¢ Giving Giving customers customers what what they they want, want, communicating communicating effectively effectively with with them them andand providing providing employees employees with with customer customer service service training training ¢ Mass Mass Customization Customization ¢ Capability Capability ofof providing providing customized customized offerings offerings at at mass- mass- production production prices. prices. Improvements Improvements in in production production methods, methods, information information technology technology andand supply supply management management ¢ Social Social Media Media ¢ E.g. Eg. interact interact with with customers customers (( Marketing) Marketing) UNIVERSIDAD DE ALMERIA Step 5: Implementing Step 5: Implementing Strategies Strategies ¢ No No matter matter howhow effectively effectively an an organization organization hashas planned planned its its strategies, strategies, performance performance will will suffer suffer ifif the the strategies Strategies aren’t aren't implemented implemented properly. properly. Step Step 6: 6: Evaluating Evaluating Results Results ¢ How How effective effective have have the the strategies strategies been been atat helping the helping the organization organization reach reach its its goals? goals? SZ UNIVERSIDAD DE ALMERIA  UNIVERSIDAD DE ALMERIA Introduction Introduction to to Managment Managment Unit Unit 3: 3: Strategy, Strategy, Planning, Planning, and and Control Control Part Part II: II: Planning Planning Management Management ¢ Fifteenth Fifteenth Edition, Edition, Global Global Edition Edition GLOBAL = EDITION “say MANAGEMENT FIFTEENTH EDITION bd Chapter Chapter 8 8 \ Stephen P. Robbins * Mary Coulter ¢ Foundations Foundations of of Planning Planning wy IVERSIDAD ALMERIA Learning Learning Objectives Objectives 8.1 8.1 Define Define the the nature nature and and purposes purposes of of planning. planning. 8.2 8.2 Classify Classify thethe types types of of plans plans organizations organizations might use. might use. 8.3 8.3 Identify Identify the the key key contingency contingency factors factors in in planning. planning. 8.4 8.4 Compare Compare andand contrast contrast approaches approaches to to objective setting. objective setting. 8.5 8.5 Discuss Discuss contemporary contemporary issues issues in in planning. planning. GY UNIVERSIDAD 2 = DE ALMERIA What What is is Planning? Planning? ¢ Planning: Planning: management management function function that that involves involves setting setting goals, goals, establishing establishing strategies Strategies for for achieving achieving those those goals, goals, and and developing developing plans plans to to integrate integrate and and coordinate coordinate work work activities activities ¢ Formal Formal planning planning ¢ Specific, Specific, time-oriented time-oriented goals goals * Goals Goals written written and and shared shared Why Why Do Do Managers Managers Plan? Plan? ¢ Provides Provides direction direction ¢ Reduces Reduces uncertainty uncertainty ¢ Minimizes Minimizes waste waste andand redundancy redundancy ¢ Establishes Establishes the the goals goals and and standards standards for for controlling controlling Goals Goals and and Plans Plans * Goals Goals (objectives): (objectives): desired desired outcomes outcomes or or targets. targets. They They guide guide management management decisions decisions and and form form the the criterion criterion against against which which work work results results are are measured. measured. ¢ That’s That's why why they’re they're often often described described asas the the essential essential elements elements of of planning. planning. You You have have to to know know thethe desired desired target target or or outcome outcome beforebefore you you can can establish establish plans plans for for reaching reaching it. it. ¢ Plans: Plans: documents documents that that outline outline how how goals goals are are going going toto be be met. met. ¢ They They usually usually include include resource resource allocations, allocations, schedules, schedules, and and other other necessary necessary actions actions to to accomplish accomplish thethe goals. goals. As As managers managers plan, plan, they they develop develop both both goals goals and and plans. plans. UNIVERSIDAD DE ALMERIA Exhibit Exhibit 8.1 8.1 Types Types of of Plans Plans Specificity Strategic —_— Long term —_— Directional —_— Single use Operational —_— Short term —_— Specific — Standing Exhibit Exhibit 8.1 8.1 shows shows the the most most popular popular ways ways to to describe describe organizational organizational plans. plans. NIVERSIDAD E ALMERIA Strategic Strategic and and Operational Operational Plans Plans * Strategic Strategic plans: plans: plans plans that that apply apply to to the the entire entire organization organization and and establish establish the the organization’s organization's overall overall goals goals ¢ Operational Operational plans: plans: plans plans that that encompass encompass aa particular particular operational operational area area ofof the the organization organization Long-term Long-term and and Short-term Short-term Plans Plans ¢ Long-term Long-term plans: plans: plans plans with with aa time time frame frame beyond beyond three three years years ¢ Short-term Short-term plans: plans: plans plans covering covering one one year year or or less less SS UNIVERSIDAD CT < © DE ALMERIA  =F Mission: Mission: Create Create more more smiles smiles with with every