Business Management Chapter 1

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Business Management Chapter 1
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What does the term management mean?

• Is it a philosophy?
• Is it about the people you hire in your company?
• Is it the leadership of the workers in your
  business?

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Definition

• Management is the process of coordinating the
  resources of an organization so as to achieve the
  primary goals of the organization.
• Most managers oversee 1 of 4 kinds of resources
• Material
• Human
• Financial
• Informational

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Resources

• Material
• Tangible, physical resources that a organization
  uses.
• Human
• Perhaps the most important, the people of the
  organization
• Financial
• The funds that the organization uses to pay its
  various creditors
• Informational
• External environment
• Market conditions, consumer market, technology,
  politics

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What do they do?

• How do they spend their time?
• 60 in meetings
• 35 working at their desks, e-mails, or on the
  phone
• 5 unscheduled meetings

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Levels of Management
Top Management Chairperson CEO COO Senior Vice
President

• Middle Management
• Department Head
• Sales Manager

Senior Management

• Senior Management Functions
• Establish Goals or Objectives
• Decides what actions are necessary to meet those
  goals
• How to use the company resources.

Supervisory management Functions Make sure that
the day-to-day operations of the business run
smoothly. They are in charge of the people who
physically produce the companies products or
provide its services.
Middle Management Functions Responsible for
meeting the goals that senior management
sets. Set goals for specific areas of the
business and decides what the employees in each
are must do to achieve those goals.

• Supervisory Management
• Foreperson
• Crew Leader
• Store Manager

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What are the levels of management for the
school? What are the levels of management for the
school district?
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What are the 5 main things managers do (tasks)?

• P.O.L.C.S.
• Goal setting and Planning
• Organizing
• Leading
• Controlling
• Staffing

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Executives
Controlling
Planning
Organizing
Middle-Managers
Implementing
Supervisors
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The process in a nutshell

• Goals must be set by the organization and plans
  to reach those goals must be developed.
• Mangers must organize people and other resources
  in order to achieve those goals.
• Mangers must lead and motivate effectively to
  achieve those goals.
• Managers must maintain adequate control to ensure
  that the organization is working steadily toward
  its goals.

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A few terms that you need to know. Goal Setting
and Planning

• Optimization when we have a good balance
  between all of the duties of a manager.
• Strategy is a broad set of plans and is develop
  as guide for major policy setting and decision
  making.
• Ex. When the surgeon general issued a report
  that smoking was bad, Phillip Morris (one of the
  leading cigarette companies) purchased several
  non-tobacco related companies and aggressively
  promoted the companies products. This helped
  secure the bottom line of the company.

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Terms

• Tactical plans - smaller-scale (and usually
  short range plans) developed to implement a
  strategy. If a strategy will take 5 years to
  complete. Then tactical plans may need to
  implemented and updated as conditions present
  themselves.
• Standing Plans (SOP) Standard Operating
  Procedure is a plan that outlines the steps to
  be taken in a situation that arises again and
  again. Helps to keep everyday situations in
  check.
• Ex. A stores procedure might then require that
  each accepted deliver be checked, sorted, and
  stored before closing time on the day of the
  delivery.

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Review--Three types of plans

• Strategic Plans - Long range plans, companies
  goals, companies mission. Upper level management
• Tactical Plans the way in which we reach those
  Strategic plans and put out any fires along the
  way. Middle level
• Standing Plans - the every day operations of the
  business that help reach those tactical goals.
  Lower Level

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Look at our school District

• Strategic Goals????
• Who sets them
• Tactical Goals
• Who oversee these
• Standing goals
• Who is in charge of these?
• Next class we will speak about Organizing the
  second part of being a manager

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2 Organizing

• After setting goals and planning we need to
  ORGANIZE.
• Def Organizing is the grouping of resources
  and activities to accomplish some end result in
  an efficient and effective manner.
• This is used to help make the company run
  smoothly. Might hire some people who specialize
  in certain areas. Sales person, Accounting,
  Purchasing etc. . . .

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3 Leading and Motivating

• Leading the process of influencing people to
  work toward a common goal
• Coaches, Managers.
• Motivating is the process of providing reason
  for people to work in the best interest of the
  organization
• Directing leading and motivating.

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Emphasize these areas

• Personality Styles
• Attitudes toward Goals
• Relationship with colleagues.

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4 Controlling

• Controlling is the process of evaluating and
  regulating ongoing activities to ensure that
  goals are achieved.
• Controlling includes a three step process
• Setting Standards setting specific goals to
  which performance can be compared
• A company setting a certain percentage increase
  from last years profits..

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Controlling

• Measuring actual performance and comparing it to
  the goal.
• Taking corrective action if necessary

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Management Styles

• Formal Leaders those that actually have power
• Informal Leaders those that have no authority
  and may or may not exert their influence in
  support of the organization

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Types of Leadership styles

• Authoritarian Leader holds all authority and
  responsibility, with communication usually
  moving from top to bottom.
• High expectation, assigns workers to specific
  tasks, and expects orderly precise results
• Laissez-faire leader (the other side of the
  spectrum)
• A leader who waives responsibility and allows
  subordinate to work as they choose with a minimum
  of interference

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Leadership Styles

• Democratic Leader Holds final responsibility
  but also delegates authority to others, who
  participate in determining work assignments.
• Communication is active both upward and downward.

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Management Skills

• Conceptual Skills
• The skill that helps manager understand how
  different parts of a business relate to one
  another and to the business as a whole.
• Human Relations Skills
• Interviews, job applicants, forming partnerships
  with other businesses, and resolving conflicts.
• Technical Skills
• Operating a word processor, designing a brochure
  and training people to use a new budgeting
  systems

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Management Skill Continued

• Diagnostic Skills
• The ability to asses a particular situation and
  identify its causes.
• A doctor diagnosing an illness.
• Analytic Skills
• Are used to identify the relevant issues (or
  variables) in a situation, to determine how they
  are related and to asses their relative
  importance.

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Role of a manager

• What are the important roles that a manager must
  have in-order to be successful. Three major
  areas/categories
• Interpersonal Roles must build a good working
  relationship with the people he/she works with.
• Informational roles a manager must provide
  knowledge, news or advice to employees
• Decision-making roles are those a manager plays
  when making changes in polices, resolving
  conflicts, or deciding how to best use resources.

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Principles of Management

• Definition Basic Truth or Law
• Something the company believes will make the
  company run effectively.
• Some businesses make their employees dress in
  suits, others come in with blue jeans on.
• What are some of the principles that a school
  uses to help you with your education?
• Hats?

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Women and Minorities in Management

• Take a few minutes to answer these questions.
• Start with the article Shattering the Glass
  Ceiling

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Questions to answer

• What is meant by the term glass ceiling?
• Tell me the two underlining factors that are
  keeping women at lower levels in the work force

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Questions to answer

• What is meant by the term glass ceiling?
• Tell me the two underlining factors that are
  keeping women at lower levels in the work force?
  Subconscious prejudice, under-representation of
  women at the higest jobs

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Case Study The Glass Ceiling Every state in the
U.S. has had a woman as a college or university
president, except this case study's example,
Dominion. The state of Dominion has only had
white, male presidents and until recently these
presidents had also been members of the dominant
religion. A presidency at a small but blossoming
community college has opened. The list of 178
candidates is cut to five. Two of the candidates
are women, one is a Native American male the
remaining two candidates are white males, one of
the predominant religion and one of another
faith. The final selection for president is made
by a body appointed by the Governor of the State
of Dominion, called the Regents. Three-fourth of
the members of this body are white, males. The
majority of these belong to the dominant
religion. The candidate chosen is the white, male
of the dominant religion. His credentials are
significantly less than either of the women
candidates. Questions Is this an ethical
situation? What should be done?
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• Case Study 5.2
• Please read the case answer the questions and
  hand in at the beginning of next class.