BUSINESS MANAGEMENT

BUSINESS MANAGEMENT

Effective Managers: An Invaluable Resource for Business

• —Managers are responsible for business performance and effectiveness.
• —Managers are accountable to all key stakeholders.

 The Management Process
—Planning
Hierarchy of Plans:
◦Goals
◦Strategic
◦Tactical and Operational
—Organizing
—Directing
—Controlling  

 TYPES OF MANAGERS

• lEVEL OF MaNAGEMENT

•  AREAS OF MANAGEMENT

  
  level OF MANAGEMENT
   
  
  
  —Top Manager
  
  
  ◦Manager responsible to the board of directors and stockholders for a firm’s overall performance and effectiveness
  
  
  —Middle Manager
  
  
  ◦Manager responsible for implementing the strategies, policies, and decisions made by top managers
  
  
  —First-Line Manager (Supervisor, Office manager, Group Leader)
  
  
  ◦Manager responsible for supervising the work of employees
  
  
  
  Areas of Management
  
  Financial
  Marketing
  Human Resources
  Operations
  Information
  Other 
  
  Basic Management Skills 
  
  
  • Time Management Skills
  • Conceptual Skills
  • Technical Skills
  • Human Relations Skills
  • Decision-Making Skills
   
  Strategic Management
• —The process of setting goals and formulating strategy.
• —The process of helping an organization to maintain an effective alignment with its environment.  

Effective Organizations Set Goals at Many Different Levels

—Mission Statement: How a business will achieve its fundamental purpose in the environment in which it conducts its business

◦Long-term Goals

◦Intermediate Goals

◦Short-term Goals

 Setting Goals Is the Starting Point of Effective Management  

—Goal: Objective that a business hopes and plans to achieve

—

—Strategy:  The broad set of organizational plans for implementing the decisions made for achieving organizational goals

◦Corporate Strategy

◦Business Strategy

◦Functional Strategy

Business Goals Are Performance Targets

—The purposes of goal-setting:

◦To provide direction and guidance for managers at all levels

◦To help firms allocate resources

◦To help define corporate culture

◦To help managers assess
performance

Types of Strategies

—Corporate Strategy

◦Strategy for determining the firm’s overall attitude toward growth and the way it will manage its businesses or product lines

—Business (or Competitive) Strategy

◦Strategy, at the business unit or product-line level, focusing on a firm’s competitive position

—Functional Strategy

◦Strategy by which managers in specific areas decide how best to achieve corporate goals through productivity

Strategy Formulation

 

 Contingency Planning and Crisis Management

• —Contingency Planning seeks to identify in advance important aspects of a business or its market that might change.
• —Crisis Management involves an organization’s methods for dealing with emergencies.

 Management Is Tightly Linked to
Corporate Culture
 —Corporate Culture

◦The shared experiences, stories, beliefs, and norms that characterize an organization

Management and the Corporate Culture

—Corporate Culture is a company’s unique identity.

—Corporate Culture helps define the work and business climate that exists in an organization.

—Managing change through:

◦At the highest level, analysis of the company’s environment highlights extensive change as the most effective response to its problems.

◦Top management begins to formulate a vision of a new company.

◦The firm sets up new systems for appraising and compensating employees who enforce the firm’s new value.