ADM 1300 Midterm 1 PDF

Chapter 6 - Managing the Business Enterprise The Management Process ★ The Functions of Management: ○ Planning What the business needs to do and how best to achieve it ○ Leading Guiding and motivating; having the authority, ability, and power...

Chapter 6 - Managing the Business Enterprise The Management Process ★ The Functions of Management: ○ Planning What the business needs to do and how best to achieve it ○ Leading Guiding and motivating; having the authority, ability, and power ○ Organizing Using existing resources; arranging jobs to create an efficient task system ○ Controlling Monitoring a firm’s performance A manager is a combination of education and experience. Types of Managers ★ Levels of Management ○ Top Management Responsible for overall performance of the firm ○ Middle Management Responsible for implementing decisions of top managers ○ First-line Management Responsible for supervising employees ★ Areas of Management ○ Marketing managers Develops, prices, promotes, and distributes goods and services to buyers ○ Financial managers Plans and oversees the financial resources of a firm ○ Operations managers Controls production, inventory, and quality of a firm’s products ○ Human Resource managers Hires, trains, evaluates, and compensates employees ○ Information managers Designs and implements systems to gather, process, and disseminates information Basic Managements Skills ★ Technical skills  ○ Ability to perform specialised tasks; important for first-line managers ★ HR skills ○ Ability to understand and work well with other employees; important for all managers ★ Conceptual skills ○ Ability to think abstractly, diagnose problems, and plan for the future; importance increases as one rises in the corporate hierarchy ★ Time management skills ○ Permits managers to productively use their time ★ Decision Making Skills ○ Recognize problems, analyse alternatives, selecting those to solve problems ★ Factors that Impact Skills ○ Time Management Paperwork Phones Meetings Emails ○ Decision Making Organisational Politics: the actions that people do in order to get what they want without regard for its impact on others Intuition: making a decision because it “feels right.” Escalation of Commitment: when a manager remains committed no matter what Risk propensity: big loss/big gain Setting Goals and Formulating Strategy ★ Strategic Management ○ Aligning the organisation with its external environment ★ Strategic Goals ○ Performance objectives that a firm plans to achieve ★ Purpose of Setting Goals ○ Provides direction, guidance, and motivation ○ Assists in allocating resources ○ Helps to define corporate culture ○ Helps managers assess performance ★ Kinds of Goals ○ Long-term: 5+ years ○ Intermediate: 1-5 years ○ Short-term: