What is Management?

Management is the process of coordinating people and other resources to achieve the goals of the organization.

Coordination of Resources

Material Resources – tangible, physical resources used by an organization (hospitals,

universities, car manufacturer)

Human Resources – employees Most important resource The way employees are developed and managed may have a bigger

impact on an organization than other things such as marketing, sound financial decisions, production or technology.

Coordination of Resources…(continued)

Financial Resources – funds the organization uses to meet its obligations to investors and creditors

Information Resources – a business must know what is changing and how it is changing and must keep up with news of its competitors. (economy, consumer markets, technology, politics, cultural changes)

Basic Management Functions

1. Planning – establishing organization goals and deciding how to accomplish them.

Mission Statement – a statement of the basic purpose that makes an organization different from others

Strategic Planning - the process of establishing an organization's major goals and objectives and allocating the resources to achieve them

Basic Management Functions. . . (continued)

Establishing Goals and Objectives:

Goal – an end result that an organization is expected to achieve over a one- to ten-year period.

Objective – a specific statement detailing what an organization intends to accomplish over a shorter period of time.

Basic Management Functions. . . (continued)

Goals and objectives may deal with such things as: sales, company growth, costs, customer satisfaction or employee morale.

Goals are set at every level of an organization – from the CEO (President) on down to the operations employees in the factory.Goals at all levels must be consistent with each other. (Production Department vs Marketing Department)

Basic Management Functions. . . (continued)

The manager responsible for departments whose goals might be in conflict with each other must achieve some sort of balance between conflicting goals.

This balancing process is called Optimization.

Basic Management Functions. . . (continued)

Establishing Plans to Accomplish Goals and Objectives:

Plan is an outline of the actions by which the organization intends to accomplish its goals and objectives. (GM’s Hummer2)

Strategy is an organization’s broadest set of plans, developed as a guide for major policy setting and decision making.(set by Board of Directors and top management and generally are designed to achieve the long-term goals of the organization)

Tactical Plan is a smaller-scale plan developed to implement a strategy. (1-3 year period, updated as information becomes available and/or conditions change)

Basic Management Functions. . . (continued)

Operational Plan is a type of plan designed to implement tactical plans.

• Generally designed for 1 year or less and deals with how to accomplish specific objectives.

• Increase sales of a product by 5% during the first year – specific parts of the operational plan might include: TV and newspaper advertising, reduced prices, coupon offers, store displays and samples, etc.

Basic Management Functions. . . (continued)

Contingency Plan is a back-up plan that outlines alternative courses of action if the organization’s original plans are disrupted or become ineffective.

Basic Management Functions. . . (continued)

2. Organizing – is the grouping of resources and activities to accomplish some end result in an efficient and effective manner.

Divide the work of the entire organization into separate parts and assign these parts to positions within the organization.

Group the various positions into departments. Distribute responsibility and authority within the organization. Determine the number of subordinates who will report to each

manager. Establish a chain of command – whose has direct authority and

who is in a support role.

Basic Management Functions. . . (continued)

3. Leading and Motivating Leading is the process of influencing people

to work toward a common goal. Motivating is the process of providing

reasons for people to work in the best interests of the organization. (money, status,

advancement, etc.)

Directing is the combined process of leading and motivating.

Basic Management Functions. . . (continued)

4. Controlling – the process of evaluating and regulating ongoing activities to ensure that goals are achieved.Includes three steps: (steps must be repeated periodically until goal is achieved)

• setting standards with which performance may be compared

• measuring actual performance and comparing it to the standards

• taking corrective action