Business Essentials - Chapter 5: Managing the Business

Business Essentials 5-1 Thirteenth Edition Chapter 5 Managing the Business Copyright © 2022, 2019, 2016 Pearson Educ...

Business Essentials 5-1 Thirteenth Edition Chapter 5 Managing the Business Copyright © 2022, 2019, 2016 Pearson Education, Inc.  5-5 The Management Process (1 of 2) Manager – someone whose primary work responsibilities are a part of the management process Management – process of planning, organizing, leading, and controlling an organization’s resources to achieve its goals Copyright © 2022, 2019, 2016 Pearson Education, Inc.  5-6 Basic Management Functions (1 of 2) Planning – management process of determining what an organization needs to do and how best to get it done Organizing – management process of determining how best to arrange an organization’s resources and activities into a coherent structure Copyright © 2022, 2019, 2016 Pearson Education, Inc.  5-7 Basic Management Functions (2 of 2) Leading – management process of guiding and motivating employees to meet an organization’s objectives Controlling – management process of monitoring an organization’s performance to ensure that it is meeting its goals Copyright © 2022, 2019, 2016 Pearson Education, Inc.  5-8 The Management Process (2 of 2) Copyright © 2022, 2019, 2016 Pearson Education, Inc.  5-10 Types of Managers Top Manager – manager responsible for a firm’s overall performance and effectiveness Middle Manager – manager responsible for implementing the strategies and working toward the goals set by top managers First-Line Manager – manager responsible for supervising the work of employees Copyright © 2022, 2019, 2016 Pearson Education, Inc.  5-11 The Three Levels of Management Table 5.1 The Three Levels of Management Level Examples Responsibilities Top President, vice president, Responsible for the overall performance managers treasurer, CEO, chief financial and effectiveness of the firm officer (CFO) Set general policies, formulate strategies, and approve all significant decisions Represent the company in dealings with other firms and with government bodies Middle Plant manager, operations Responsible for implementing the managers manager, division manager, strategies and working toward the goals regional sales manager set by top managers First-line Supervisor, office manager, Responsible for supervising the work of managers project manager, group leader, employees who report to them sales manager Ensure employees understand and are properly trained in company policies and procedures Copyright © 2022, 2019, 2016 Pearson Education, Inc.  5-12 Areas of Management (1 of 2) Human Resource Managers – hire and train employees, evaluate performance, and determine compensation Operations Managers – responsible for production, inventory, and quality control Marketing Managers – responsible for getting products from producers to consumers Copyright © 2022, 2019, 2016 Pearson Education, Inc.  5-13 Areas of Management (2 of 2) Information Managers – design and implement systems to gather, organize, and distribute information Financial Managers – plan and oversee accounting functions and financial resources Copyright © 2022, 2019, 2016 Pearson Education, Inc.  5-16 Basic Management Skills (1 of 2) Technical Skills – skills needed to perform specialized tasks Human Relations Skills – skills in understanding and getting along with people Conceptual Skills – abilities to think in the abstract, diagnose and analyze different situations, and see beyond the present situation Copyright © 2022, 2019, 2016 Pearson Education, Inc.  5-17 Basic Management Skills (2 of 2) Decision-Making Skills – skills in defining problems and selecting the best courses of action Time Management Skills – skills associated with the productive use of time Copyright © 2022, 2019, 2016 Pearson Education, Inc. Management Skills for the Twenty-First 5-19 Century (1 of 2) Global Management Skills – Managers will need to understand foreign markets, cultural differences, and the motives and practices of foreign rivals. – Managers will also need to understand how to collaborate with others around the world on a real-time basis. Copyright © 2022, 2019, 2016 Pearson Education, Inc. Management Skills for the Twenty-First 5-20 Century (2 of 2) Management and Technology Skills – New forms of technology have added to a manager’s ability to process information while simultaneously making it even more important to organize and interpret an ever-increasing wealth of input. Copyright © 2022, 2019, 2016 Pearson Education, Inc. Strategic Management: Setting Goals and 5-21 Formulating Strategy Strategic Management – process of helping an organization maintain an effective alignment with its environment Strategy – broad set of organizational plans for implementing the decisions made for achieving organizational goals Copyright © 2022, 2019, 2016 Pearson Education, Inc.  5-22 Setting Business Goals Goals – the means by which organizations and their managers measure success or failure at every level – objective that a business hopes and plans to achieve Copyright © 2022, 2019, 2016 Pearson Education, Inc.  5-23 Purposes of Goal Setting 1. Provides direction and guidance for managers at all levels 2. Helps firms allocate resources 3. Helps to define corporate culture 4. Helps managers assess performance Copyright © 2022, 2019, 2016 Pearson Education, Inc.  5-25 Kinds of Goals (2 of 2) Long-Term Goal – goal set for an extended time, typically five years or more into the future Intermediate Goal goal set for a period of one to five years into the future Short-Term Goal – goal set for the very near future Copyright © 2022, 2019, 2016 Pearson Education, Inc. Strategy Formulation 5-30 Source: Adapted from Stephen P. Robbins and Mary Coulter, Management, 12th ed. (Upper Saddle River, NJ: Prentice Hall, 2014), 242. Copyright © 2022, 2019, 2016 Pearson Education, Inc.  5-31 Formulating Strategy (2 of 3) SWOT Analysis – identification and analysis of organizational strengths and weaknesses and environmental opportunities and threats as part of strategy formulation Copyright © 2022, 2019, 2016 Pearson Education, Inc. Contingency Planning and Crisis 5-34 Management Contingency Planning – identifying aspects of a business or its environment that might entail changes in strategy Crisis Management – organization’s methods for dealing with emergencies Copyright © 2022, 2019, 2016 Pearson Education, Inc. Communicating the Culture and Managing 5-37 Change Managers themselves must have a clear understanding of the culture Must transmit the culture to others in the organization Should maintain the culture by rewarding and promoting those who understand it and work toward maintaining it Copyright © 2022, 2019, 2016 Pearson Education, Inc. Copyright This work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Copyright © 2022, 2019, 2016 Pearson Education, Inc.