MANAGEMENT

1. MANAGEMENT • Definition. Pg 8 • A process • Use of resources • A goal or goals • With other functions and people 14 • Continuous innovations and improvement 22 • Managing strategically 7 • Modern Trends 5-6 • Dynamic change • Technology • Globalization • Diversity of workers and markets

2. MANAGEMENTWhat managers do 1. Achieving Objectives/Goals 2. Functions of Management 25 • Various roles managers play 26 • Efficient Use of Resources (see later slide) • Skills managers need 32

3. Function of Management(Process of Management)25 Planning Organizing Directing/ Leading Control

4. Managerial RolesMintzberg 26 • Interpersonal roles • Figurehead, Leader, Liaison • Informational roles • Monitor, Disseminator, Spokesperson • Decisional Roles • Entrepreneur, Disturbance Handler, resource Allocator, Negotiator • Do roles vary across levels of managers ? Across industries? In manufacturing and services ? In different countries ?

5. Two Measures of Managerial Work • Effectiveness: Achieving objectives, goals • Efficiency: Managing resources OUTPUT INPUT (OM chapters will call this Productivity)

6. Efficiency

7. Levels of Management Planning Horizon Long Medium Short Planning Type Strategic Tactical Operational Skills (32) Conceptional Human Technical TOP MIDDLE FIRST LEVEL

8. Introduction to Operations ManagementK pg. 188 • Production of products or services 190 • Using processes 190, • The process view of the organization 191 • Adding value. Value chain 197 • Core and support processes • Manufacturing v. Services 193 • Trends: Productivity and quality improvement, 199; global competition, technology, ethical-environmental- diversity issues

9. OPERATIONS MANAGEMENT • What operations managers do • Setting objectives (also called “competitive priorities”) Then, • Planning operations • Organizing activities and resources • Directing/Leading workers • Operations control (monitoring)

10. Social Responsibility and EthicsM Chapter 5 • Difference 161 • Ethics: morality and standards of business conduct • SR: organizations obligations to shareholders, employees, customers, society • Overlapping: Spectrum of SR includes ethical responsibility • SR: Economic, Legal, Ethical, Discretionary • Efficiency and SR perspectives 172 • Relevance to managers 45 • Increased concern, Increase in enforcement, Corporate and director liability, Customer preferences, Employee morale

11. Social Responsibility and Ethics • What organization do: • Leadership, compliance officers 169 • Code of ethics/Standards of Conduct 164; Policies; Values Statements • Structures: compliance committees • Rewards (whistle-blowing) and punishments 168 • Training 167 • Self reporting

12. PlanningM Chapter 8 • Why is planning important ? • Legitimacy, Source for motivation/commitment, Guides to action/decisions, Performance standards • Organizational levels 273 • Corporate, Business, Functional • Type of plans by level 270 • Strategic, Tactical, Operational • Setting objectives 279 • Principles 288 MBO 291 • Planning Process 275 • Analyze environment incl. Forecasting, Set objectives, Determine requirements, Assess resource availabilities, Develop action plans, Implement action plans, Monitor.

13. Strategic ManagementM Chapter 6 • Why do SM ? • To gain competitive advantage 194 • Characteristics of a competitive advantage 194- • SM Process 197 • Environmental analysis • External Environment; Internal Environment • Strategy Formulation • Mission and LT objectives, Situation analysis, Corporate-business-functional strategies • Strategy Implementation • Policies, Action Plans (Programs), Budgets • Evaluation and Control

14. STRATEGIC MANAGEMENTFORMULATING STRATEGY EXT. ENVT. MISSION OBJECTIVES SITUATION ANALYSIS INT. ENVT. STRATEGY

15. EXTERNAL ENVIRONMENT204 • ECONOMY • POLITICAL-LEGAL • SOCIO-CULTURAL • TECHNOLOGY • GLOBAL/INTERNATIONAL • COMPETITION • CUSTOMERS • SUPPLIERS

16. INTERNAL ENVIRONMENT205 • Value Chain/Resource based approach • Functional area resources 205- • Core competencies 209 • Organization structure • Dividing work, Authority & Responsibility, Information flow, decision making • Corporate culture • social responsibility and ethics, integration and intensity of competitive priorities

17. Mission and LT Objectives • Mission 198- • Mission statements. Purpose. Content • Compare with Vision and Values Statements • LT (Strategic ) Objectives 199

18. Integrating Internal and External Analysis(Situation Analysis) • SWOT ANALYSIS 214 • PORTFOLIO ANALYSIS 211 • INDUSTRY/ COMPETITION ANALYSIS • PRODUCT LIFE CYCLE ANALYSIS 209

19. ALTERNATIVE STRATEGIES BY LEVEL CORPORATE LEVEL(GRAND) GROWTH STABILITY RETIREMENT BUSINESS LEVEL: 200 COST LEADERSHIP DIFFERENTIATION FOCUS Generic strategies for competitive advantage. Also called “Competitive Priorities”: Cost/Price, Quality, Availability/ Dependability/Service/Speed, Flexibility/Variety FUNCTIONAL LEVEL: OPERATIONAL STRATEGY

20. GROWTH STRATEGIES CONCENTRATION DIVERSIFICATION VERTICAL INTEGRATION ACQUISITIONS & MERGERS

21. OPERATIONS STRATEGY(Class discussion, later in an OM chapter ) PRODUCTS/SERVICES PROCESS TECHNOLOGY QUALITY WORK FORCE FACILITIES SUPPLIERS/VERTICAL INTEGRATION

22. STRATEGY IMPLEMENTATION POLICIES & PROCEDURES PROGRAMS BUDGETS 287

23. MANAGEMENT CONTROLM Chapter 16 • Definition 568 • Meaning – monitoring • Basic Process 570 • Establish standards, measure performance, compare and analyze, corrective action if necessary • Scope of Control in an Organization • Strategic, tactical, operational controls 577 • Operational Controls: Preliminary, concurrent, feedback controls 589 • Examples: budgetary control, quality control, process control, HR measures 580- • Principles of effective control 590 • Focus, amount, quality of information, flexibility, timeliness