chapter 5

• Management process


  Planning, organizing, leading, and controlling an organization's resources to achieve its goals
• Planning


  Management process of determining what an organization needs to do and how best to get it done
• Organizing


  Management process of determining how best to arrange an organization's resources and activities into a coherent structure
• Leading


  Management process of guiding and motivating employees to meet an organization's objectives
• Controlling


  Management process of monitoring an organization's performance to ensure that it is meeting its goals
• Types of managers: Levels


  • Top manager
  • Middle manager
  • First-line manager
• Top manager


  Manager responsible for a firm's overall performance and effectiveness
• Middle manager


  Manager responsible for implementing the strategies and working toward the goals set by top managers
• First-line manager


  Manager responsible for supervising the work of employees
• Types of managers: Areas of management

  • Human resource managers
  • Operations managers
  • Marketing managers
  • Information managers
  • Financial managers
• Human resource managers


  Hire and train employees, evaluate performance, and determine compensation
• Operations managers


  Responsible for production, inventory, and quality control
• Marketing managers


  Responsible for getting products from producers to consumers
• Information managers


  Design and implement systems to gather, organize, and distribute information
• Financial managers


  Plan and oversee accounting functions and financial resources
• Managerial roles


  • Interpersonal roles
  • Informational roles
  • Decisional roles
• Interpersonal roles


  A category of managerial roles including figurehead, leader, and liaison
• Informational roles


  A category of managerial roles including monitor, disseminator, and spokesperson
• Decisional roles


  A category of managerial roles including entrepreneur, disturbance handler, resource allocator, and negotiator
• Basic management skills


  • Technical skills
  • Human relations skills
  • Conceptual skills
  • Decision-making skills
  • Time management skills
• Technical skills


  Skills needed to perform specialized tasks
• Human relations skills


  Skills in understanding and getting along with people
• Conceptual skills


  Abilities to think in the abstract, diagnose and analyze different situations, and see beyond the present situation
• Decision-making skills


  Skills in defining problems and selecting the best courses of action
• Time management skills


  Skills associated with the productive use of time
• Global management skills


  Managers will need to understand foreign markets, cultural differences, and the motives and practices of foreign rivals. Managers will also need to understand how to collaborate with others around the world on a real-time basis.
• Management and technology skills

  New forms of technology have added to a manager's ability to process information while simultaneously making it even more important to organize and interpret an ever-increasing wealth of input.
• Strategic management


  Process of helping an organization maintain an effective alignment with its environment
• Strategy


  Broad set of organizational plans for implementing the decisions made for achieving organizational goals
• Goals


  The means by which organizations and their managers measure success or failure at every level
• Objective


  That a business hopes and plans to achieve
• Purposes of goal setting

  • Provides direction and guidance for managers at all levels
  • Helps firms allocate resources
  • Helps to define corporate culture
  • Helps managers assess performance
• Mission statement


  Organization's statement of how it will achieve its purpose in the environment in which it conducts its business
• Kinds of goals


  • Long-term goal
  • Intermediate goal
  • Short-term goal
• Long-term goal


  Goal set for an extended time, typically five years or more into the future
• Intermediate goal


  Goal set for a period of one to five years into the future
• Short-term goal


  Goal set for the very near future
• Types of strategy


  • Corporate strategy
  • Business (or competitive) strategy
  • Functional strategy
• 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 improving a firm's competitive position