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FHF
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
part
Managing for Managing for QualityQualityand and CompetitivenessCompetitiveness
CHAPTER 8 Managing Service and Manufacturing Operations
CHAPTER 7 Organization, Teamwork, and Communication
3CHAPTER 6 The Nature of Management
FHF
6-2
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Management Is...Management Is...Management Is...Management Is...
A process designed to achieve an
organization’s objectives by using its resources effectively & efficiently in a
changing environment
6-3
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What Managers DoWhat Managers DoWhat Managers DoWhat Managers Do
Make decisions (utilize resources) achieve objectives
Planning
Organizing
Staffing
Directing
Controlling
6-4
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The Importance of The Importance of ManagementManagement
The Importance of The Importance of ManagementManagement
Resource acquisition and coordination Resources:
People
Raw materials
Equipment
Money
Information
6-5
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Management FunctionsManagement FunctionsManagement FunctionsManagement Functions
Planning
Process of determining the organization’s missions, goals, and objectives and deciding how to accomplish them.
Mission
Organization’s statement of purpose and basic philosophy
Goals
The results that a firm wishes to achieve– almost always have multiple goals
Objectives
Results desired by organization
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The Mission StatementThe Mission StatementThe Mission StatementThe Mission Statement
What business are we in?1.Who are we?
2.Who are our customers?
3.What is our operating philosophy?
4.What are our core competencies and competitive advantages?
5.What are our responsibilities with respect to being good stewards of environmental, financial and human resources?
6-7
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GoalsGoalsGoalsGoals
A firm almost always has multiple goals
Should be specific
Components of a goal:
An attribute sought
A target to be achieved
A time frame
6-8
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Common Organizational Common Organizational ObjectivesObjectives
Common Organizational Common Organizational ObjectivesObjectives
The desired end resultsProfit
Competitive advantage
Efficiency
Growth
Service
Ethics
Community responsibility
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Planning as a Function of Planning as a Function of ManagementManagement
Planning as a Function of Planning as a Function of ManagementManagement
Strategic Tactical Operational
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Strategic PlansStrategic PlansStrategic PlansStrategic Plans
Duty of executive-level managersEstablish the long-range objectives & overall strategy to fulfill firm’s mission2-10 years forward-looking
Diversification, issuing stock, mergers & acquisitions, going international
Must account for organization’s capabilities and resources, business environment and objectives
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Short-rangeStrategy implementation
• Time frame of 1 year or less
• Environmental changes
• Periodically reviewed & updated
Tactical PlansTactical PlansTactical PlansTactical Plans
6-12
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Operational PlansOperational PlansOperational PlansOperational Plans
Very short-termActionable, specific
• Individuals, work groups, departments
• 1 month, 1 week, 1 day
• Help to achieve tactical plans
6-13
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Crisis Management Crisis Management Contingency PlanningContingency PlanningCrisis Management Crisis Management
Contingency PlanningContingency Planning
Focus on potential disastersProduct tampering
Oil spills
Fire, earthquake, terrorist attack
Unethical/illegal employee activity
Communication is very important during a crisis
6-14
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Management FunctionsManagement FunctionsManagement FunctionsManagement Functions
OrganizingStructuring of resources & activities to accomplish objectives efficiently & effectively
Importance:
Creates synergy
Establishes lines of authority
Improves communication
Improves competitiveness
6-15
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Management FunctionsManagement FunctionsManagement FunctionsManagement Functions
StaffingHiring people to carry out the work of the organization
Importance:
Recruiting
Determine skills
Motivate & train
Compensation levels
6-16
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Management FunctionsManagement FunctionsManagement FunctionsManagement Functions
Downsizing The elimination of significant numbers of employees
Rightsizing
Trimming the fat
6-17
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Management FunctionsManagement FunctionsManagement FunctionsManagement Functions
DirectingMotivating and leading employees to achieve organizational objectives
Motivation• Incentives (raise, promotion)
• Employee involvement (cost reduction, customer service, new products)
• Recognition and appreciation
…continued on next page
6-18
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Management FunctionsManagement FunctionsManagement FunctionsManagement Functions
ControllingProcess of evaluating and correcting activities to keep organization on course
Five activities of controlling:1. Measuring performance
2. Comparing performance against standards
3. Identifying deviations from standards
4. Investigating causes of deviations
5. Taking corrective action
6-19
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Top ManagersTop ManagersTop ManagersTop Managers
President
Chief Executive Officer (CEO)
Chief Financial Officer (CFO)
Chief Operations Officer (COO)
6-20
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Middle ManagementMiddle ManagementMiddle ManagementMiddle Management
Responsible for tactical planning Implement general guidelines established by
top management Responsibility is more narrowly focused than
top managers
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First Line ManagementFirst Line ManagementFirst Line ManagementFirst Line Management
Supervise workers Oversee daily operations Directing and controlling
are primary functions
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Areas of ManagementAreas of ManagementAreas of ManagementAreas of Management
Finance Production Operations Human Resources Marketing Administration
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Financial ManagementFinancial ManagementFinancial ManagementFinancial Management
6-24
Focus on obtaining money necessary for the successful operations and
using these funds to further organizational goals
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Production & Operations Production & Operations ManagementManagement
Production & Operations Production & Operations ManagementManagement
6-25
Develop & administer activities to transform resources into goods,
services and ideas for the marketplace.
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Human Resources ManagementHuman Resources ManagementHuman Resources ManagementHuman Resources Management
6-26
Handle staffing function and deal with employees in a formalized
manner
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Marketing ManagementMarketing ManagementMarketing ManagementMarketing Management
Responsible for planning, pricing and promoting products and making
them available to customers
6-27
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Information Technology (IT) Information Technology (IT) ManagementManagement
Information Technology (IT) Information Technology (IT) ManagementManagement
Responsible for implementing, maintaining and controlling technology
applications in business (such as computer networks)
6-28
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Administrative ManagersAdministrative ManagersAdministrative ManagersAdministrative Managers
Manage an entire business or major segment of the business
Coordinate activities of specialized managers
6-29
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Skills Needed by ManagersSkills Needed by ManagersSkills Needed by ManagersSkills Needed by Managers
Leadership Technical expertise Conceptual skills Analytical skills Human relations skills
6-30
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Types of LeadersTypes of LeadersTypes of LeadersTypes of Leaders
Autocratic LeadersDecision makers, “tell” employees what to do
Democratic LeadersInvolve employees in decisions
Free-Rein leadersEmployees work with minimal interference
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Technical ExpertiseTechnical ExpertiseTechnical ExpertiseTechnical Expertise
The specialized knowledge and training required to perform jobs related to a manager’s area.
Computer expertise is a skill for nearly all managers
6-32
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Conceptual SkillsConceptual SkillsConceptual SkillsConceptual Skills
Are the ability to think in abstract terms and to see how parts come together to form the whole.
The ability to think creativelyNeeded by all managersEspecially important for top managers
6-33
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Analytical SkillsAnalytical SkillsAnalytical SkillsAnalytical Skills
The ability to identify relevant issues and recognize their importance, understand the relationships between them and perceive
the underlying causes of a situation Most important to top-level managers Required in complex situations where the
solution is unclear
6-34
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Human Relations SkillsHuman Relations SkillsHuman Relations SkillsHuman Relations Skills
The ability to deal with people inside and outside the organization
Managers with good HR skills are generally more successful
6-35
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Where Do Managers Where Do Managers Come From?Come From?
Where Do Managers Where Do Managers Come From?Come From?
Good managers are not born; they are madeInternal promotion
Know the company
But may limit innovation
Hiring from other organizations Better for innovation
Do not know the company as well
Hiring straight from colleges• Lack of experience
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Decision MakingDecision MakingDecision MakingDecision Making
6-37
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The Reality of ManagementThe Reality of ManagementThe Reality of ManagementThe Reality of Management
Not a cut-and-dried processManagers spend a lot of time:
Establishing and updating an agenda
A calendar that covers short-term goals and long-term objectives
Networking
Building relationships and sharing information with colleagues who can help managers achieve the items on their agendas
Confronting the complex challenges of today’s business world
6-38
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