MGT131 CH6
What is Management?
• This is the process of planning, organizing, leading and controlling people and other available resources to accomplish organizational goals and objectives
• Without management organizations would accomplish very little
• Management is a position of power, a position that is granted to individuals because they are capable
Management
• Managers are expected to make decisions and make sure organizational tasks are accomplished
• All managers are charged with four key functions:
• Planning
• Organizing
• Leading
• Controlling
• A manager’s job is to ensure goals are met and tasks are completed
PLANNING
• This includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives
• One objective is to please customers
• The trend today is to develop planning teams to help monitor the environment, find business opportunities, and watch for challenges
• Planning is a key management function because the other functions depend heavily on having a good plan, no matter what the size of the business
• Eg a restaurant owner needs to be constantly aware of the surrounding competition and base her goals and objectives on anticipated challenges
• ORGANIZING – this includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization’s goals and objectives
Organizing
• Many of today’s organizations are designed around the customer
• The idea is to design the firm so that everyone is working to satisfy the customer’s needs, at a profit
• Thus, organizations must remain flexible and adaptable because customer needs change, and organizations must either change along with them or risk losing business
Leading
• This means creating a vision for the organization and communicating, guiding, training, coaching and motivating others to work effectively to achieve the organization’s goals and objectives
• The trend is to empower employees, giving them as much freedom as possible, so that they become self-directed and self motivated
• This means giving employees the authority (the right to make a decision without consulting the manager) and responsibility
• (the requirement to accept the consequences of one’s actions) to respond quickly to customer requests
• This function was once known as directing, that is, telling employees exactly what to do
• In smaller firms this is still the role of the manager
• In most large firms, managers no longer tell people what to do because knowledge workers and others often know how to do their jobs better than the manager does.
• Leadership is necessary to keep employees focused on the right priorities and timelines, while training employees, coaching them, motivating them, and performing the other leadership tasks
Controlling
• This involves establishing clear standards to determine whether an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not
• We are measuring whether what actually occurs meets the organization’s goals
Planning
• As we have seen this is the first management function, and involves setting the organizational vision, mission, goals and objectives
• Most successful organizations employ several strategies to ensure planning is realistic
• Part of planning involves creation of a vision and a mission statement
• Vision
• Part of planning involves creation of a vision and a mission statement
• The vision is a forward looking statement, provides a detailed explanation of why the organization exists and where it is headed in the future
• The mission statement is an outline of the organization’s fundamental purposes
• With the mission statement an organization describes ‘what business we are in”
Writing a Mission Statement
Meaningful mission statement should have the following parts:
• Customer needs
• Company philosophy
• The organization’s self concept
• Long term survival
• The nature of the company’s products or services
• Social responsibility
• Care for the employee
Mission statement
• The mission statement becomes the foundation for setting specific goals
• Goals – these are the broad, long term accomplishments an organization wishes to accomplish or achieve
• Objectives – these are specific short term statements detailing how to achieve the organization’s goals
Guideline for setting SMART Objectives
• Specific – make sure the objective is specific, sales must be increased by 10% not just “increased”
• Measurable – a company must be able to easily see if the goal is met. Better customer service is hard goal to measure
• But “increasing customer service survey by 1 point in 6 months” is measurable
SMART objectives
• Achievable – are the objectives achievable and attainable?
• Realistic – can the company achieve the goal with the resources available? Has it enough staff
• Time – What is the deadline for achieving goals? Is it 6 months, one year? Make sure it is realistic.
Organizing
• After managers have planned a course of action they must organize the firm to accomplish their goals. Operationally, organizing means allocating resources (such as funds for various functions within departments), giving tasks to people to do, and establishing procedures for accomplishing the organizational objectives
• An organization chart is a visual diagram that shows relationships among people and divides the organization’s work. It shows who is responsible for certain work and who reports to whom. An organization chart shows top, middle and first line or supervisory managers. It also shows the span of control which is the optimal or
• Or maximum number of employees which a supervisor manages or supervises
• The optimum span of control depends greatly on the type of company and experience of employees
Levels of Management
• There are three levels of management shown here in Fig 6.6
• Recently some firms have done away with middle level managers because fewer are need to manage self managed teams
• Top Management – this is the highest level of management and consists of the president and other key company executives
• Middle Management – this consists of general managers, division mangers, district managers and plant managers or supervisors
• These are individuals who are responsible for tactical planning and controlling
• Many firms have eliminated some managers through downsizing and have given the remaining managers more employees
Middle Management
• Supervisory management or first line management – these are those who are directly responsible for operational planning, supervising workers, and evaluating their daily performance.
An organization structure
• This is the way a company is organized and where all employees fit into the bigger picture of the company
• A manager must thoroughly understand what kind of structure her/his company has
• A line and staff structure is one where the staff personnel advise and assit the line personnel in meeting the goals of the org.
Line and staff structure
• Line personnel are part of the chain of command that are responsible for directly achieving organizational goals
• A matrix organization teams people from various departments to accomplish a common goal, such as getting a project done for a client
• Sales person, production person and installer may work on the one project
Departmentalism
• An important element of organizational structure is the process of departmentalism
• This means to ‘group’ related jobs or work processes into separate units
• The traditional way to departmentalize is by functions
• Functional departmentalization is probably the most widely used grouping by small to
• Medium sized organizations because of its simplicity
• A company may have a production department or customers may be grouped according to small, medium or large
• Tasks may be grouped according to geographic areas, function, by process
Staffing
• Another part of an organization is staffing
• This involves recruiting, hiring, motivating and retaining the best people available to accomplish the company’s objectives
• Managing diversity is also part of organizing. This is managing different people from different backgrounds in the pursuit of a common goal
Leading
• This is a person who can provide guidance to employees through establishment of values and ethics but also manage change through vision
• The key to good leadership includes:
• - communicate a vision and rally others around that vision
• - establish company values
• - promote corporate ethics
• - embrace change
Controlling
• This involves measuring performance relative to the planned objectives and standards, rewarding people for work well done, and then taking corrective action if work is not well done
• It is important because it provides the feedback that enables managers and workers to adjust to any changes in plans or
• In the environment that have affected performance
• There are 5 steps involved:
• 1 establishing clear performance standards for employees so they know what is expected off them
• 2 monitoring and recording actual performance - a manger observes and
• 3 - Comparing results against plans and standards – managers must compare the two
• 4 - communicating results and deviations or problems to employees involved
• 5 – taking corrective action when needed and giving positive feedback when necessary
TQM
• Total Quality Management (TQM)
• This is a management strategy where quality is reviewed at every phase of the production process, even in service organizations
• Everyone in the company is responsible for ensuring the final high quality of the product from start to finish and thereby satisfying customer needs
عاد ان شاء الله ختامها مسك :mellow: 
