introduction to management―ch07

FundamentalsofeffectivemanagementChapter7MainobjectivesThelevelsofmanagementThekeyfunctionsofmanagersTheskillsneededbymanagersMethodsthatmanagerscanusetoutilizetheirtimeeffectivelyManagementTheutilizationofhumanandotherresourcesinamannerthatbestachievesthefirm’splansandgoalsEffectivemanagementcanimprovethefirm’sperformanceandfurtherincreasethefirm’svalueforshareholdersManagers:employeeswhoareresponsibleformanagingotheremployeesorresourcesLevelsofManagementTopmanagement–long-runstrategicobjectivesMiddlemanagement–middleorshort-termdecisionSupervisory(first-line)management–daytodayproductionprocessExhibit7.1&7.2FunctionsofManagersPlanningOrganizingLeadingControllingPlanningMissionStrategicplanTacticalplanOperationalplan(policies,procedures)ContingencyplanMissionMission-describestheorganization’sbasicfunctioninsociety,intermsoftheproductsandservicesitproducesforitsclient(Mintzberg)MissionStatement---adescriptionofafirm’sprimarygoalMissionFourelements:Purpose---whydoesthebusinessexitandforwhom(eg.shareholders)Strategy---providestheoperationallogic(whatdowedo?Howdowedoit?)Policiesandstandardsofbehavior–influencewhatpeopleactuallydoandhowtheybehave:“炮制虽繁却不敢省人工，品位虽贵却不敢减物力”---同仁堂MissionValues---whatthebusinessbelievestobeimportant:thatis,itsprincipleandculture同仁堂：“同修仁德，济世养生”;“修合无人见，寸心有天知”。海尔：“真诚到永远”“全心全意小天鹅”StrategicplanIdentifyafirm’smainbusinessfocusonalong-termperiod(3-5years)Moredetailedthanthemissionstatementsanddescribesingeneraltermshowthefirm’smissionistobeachievedGoalsandstrategiesusedtosatisfythefirm’smissionstrategy:acourseofactiontoachievespecificobjectiveTacticalPlanningSmaller–scaleplans(1-2years)thatareconsistentwiththefirm’sstrategicplanShort-termplanHigh-levelmanagersalsoinvolveinAssesseconomiccondition,thedemandforvariousproducts,thelevelofcompetitionContinuouslyinitiateadditionaltacticalplansinaccordancewiththestrategicplanOperationalplanningEstablishesthemethodstobeusedinthenearfuturetoachievethetacticalplanDependentonlong-termgoalsPolicies---preventemployeesfromconductingtasksinamannerthatisinefficient,dangerous,orillegalProcedures–stepsnecessarytoimplementapolicyContingencyplanAlternativeplansdevelopedforvariouspossiblebusinessconditionsBusinessconditionsareunknownPreparationforpossiblecrisesthatmayoccurOrganizingTheorganizationofemployeesandotherresourcesinamannerthatisconsistentwiththefirm’sgoalsTocreateanewpositionTopromoteemployeesLeadingInfluenceotherstoachieveacommongoal(arolemodel)InstructandmotivateemployeesDelegateauthoritytoemployeesInitiative—willingnesstotakeactionLeadershipAutocratic---remainfullauthorityfordecisionmaking(lowskillsorhighturnoverrates)Free-rein---delegatemuchauthoritytoemployees(independent,self-managed&self-motivated)Participative(democratic)---acceptemployeeinputbutusuallyusetheirauthoritytomakedecisions(provideadifferentperspective)ControllingMonitorEvaluateMeasureperformanceincomparisonwiththestandardsandexpectationsSettingstandardsistodetectandcorrectdeficienciesonproductioncostandvolume,salevolume,profits,andetc.ManagerialskillsConceptual(analytical)skillsInterpersonalskillsTechnicalskillsDecision-makingskillsConceptualSkillstheabilitytounderstandtherelationshipsbetweenthevarioustasksofafirmMakeadjustmentswhenproblemslikethisoccurUtilizeemployeesandotherrecoursesinamannerthatcanachievethefirm’sgoalCreativeandbewillingtoconsidervariousmethodsofachievinggoalsInterpersonalSkillsTheskillstocommunicatewithcustomersandemployeesCommunicatewithcustomersCommunicatewithemployeesTechnicalSkillsSkillsusedtoperformspecificday-to-daytasksManagerwhoareclosertothedailyoperationusetheirtechnicalskillsmorefrequentlythenhigh-levelmanagerDecision-MakingSkillsSkillsforusingexistinginformationtodeterminehowthefirm’sresourcesshouldbeallocateStepsforDecisionmaking*identifythepossibledecisions*gatherinformationonallpossibledecisions*Estimatecostsandbenefitsforeachpossibledecisions*makedecision&implementit*evaluatethedecisionandmakecorrectionwhennecessaryManagersManageTimeSetproperprioritiesSchedulelongtimeintervalsforlargetasksMinimizeinterruptionsSetshort-termgoalsDelegatesometaskstoemployees