MANAGEMENT 339: PRINCIPLES OF MANAGEMENT AND OPERATIONS

1. MANAGEMENT 339: PRINCIPLES OF MANAGEMENT AND OPERATIONS • What are the levels of the organization ? • Corporate; Business; Functional. Page 130; Pg 151 • What are levels of managers/management ? • Top management, middle management, entry-level/first-level/supervisory Page 20 • What are Principles of Management ? • Principles applicable to all functions of the organization • Principles applicable at all levels of the organization • Principles useful to all managers

2. MANAGEMENTWhat all managers do Page 12 • Achieving Objectives/Goals • Functions/Process of Management • Efficient Use of Resources • Managing organizational change

3. MANAGEMENT Definition: Pg 5 Goal/objective directed A process involving management functions Resources: assembling and using Setting: Organizational - functions, people, coordination External environment

4. How good is our management ? • Effectiveness: Achieving objectives, goals • Efficiency: Managing resources OUTPUT INPUT

5. Efficiency

6. Process of Management Function of ManagementPg 12 - Planning Organizing Directing Control

7. Planning at Different Levels of Management Planning Horizon Long Medium Short Planning Type Strategic Tactical Operational Skills (pg 20) Conceptual Human Technical TOP MIDDLE FIRST LEVEL

8. WHAT IS OPERATIONS MANAGEMENT ? OM Chapter 1 • What is Operations Management (OM) ? • Activities that relate to creation of goods and services through transformation of inputs • Relationship to other functional areas such as Marketing and Accounting Finance • Key areas in OM • Product/Service design/Process design/Capacity planning/facilities location and design (Layout)/Quality management/HR and job design/Supplychain management/Inventory and materials management/Operations planning and scheduling/Maintenance • We will learn principles/methods to handle issues in these areas

9. KEY CONCEPTS IN OMOM Chapter 1 • Process view OM chapter 1; pg. 5 • Supply chain view. Pg 7 • Operations Strategy: Areas for making long term plans in operations PRODUCTS/SERVICES PROCESS TECHNOLOGY QUALITY WORK FORCE FACILITIES SUPPLIERS/VERTICAL INTEGRATION • Productivity Pg 19

10. Contemporary Challenges in Management and OM Pg 6- • Technological changes • Globalization • Growth of service sector • Emphasis on quality and productivity • TQM and JIT philosophies • Social responsibility and ethics • Emphasis on integration, coordination using IT: SCM

11. Social Responsibility and Ethics • Why relevant to business studies • SR: obligation of an organization’s management to make decisions and take actions that will enhance the welfare and interests of society as well as the organization • Ethics: The code of moral principles and values that govern the behavior of a person or group with respect to what is right or wrong. • Economic, legal, ethical and discretionary responsibilities • What organizations can do: • Leadership, code of ethics, Values statements, compliance committees/officers, policies (e.g. whistle-blowing), training, a corporate culture

12. An Overview of Planning Chapter 6 • Purpose • Direction, standards for measurement • Types of plans Strategic, Tactical and Operational 146 • Planning process Pg 151 • Setting Objectives/Goals. 161 • Principles: 161- • Specific, Measurable, Realistic but challenging, Participation, Timely • Tools: Budgets

13. Strategic Management. Chapter 5 • Objective: Competitive advantage • Characteristics of competitive advantage. 116- • Superiority, inimitability, rarity, durability, non-substitutability, appropriate levels of profits/gains • Strategic Management process 118- • Strategic Intent/Vision/Mission • Environmental Analysis • Revised Vision/Mission and LT objectives • Detailed situation analysis • Formulate strategies • Develop action for implementation: Programs, Policies, Budgets • Plan monitoring

14. ENVIRONMENTAL SCANNING 119-: EXTERNAL ENVIRONMENT • ECONOMY • POLITICAL-LEGAL • SOCIO-CULTURAL • TECHNOLOGY • GLOBAL/INTERNATIONAL • COMPETITION • Porter’s industry competition analysis 123- ; 126 • CUSTOMERS • SUPPLIERS

15. INTERNAL ENVIRONMENT • FUNCTIONAL AREA RESOURCES • Finance, Marketing, Operations, HR, MIS, R&D • ORGANIZATION STRUCTURE • Dividing work, Authority & Responsibility, Information flow, decision making • CORPORATE CULTURE • Social responsibility and ethics, integration and intensity of competitive priorities

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

17. SITUATION ANALYSIS • SWOT ANALYSIS. 129 • PORTFOLIO ANALYSIS. • PRODUCT LIFE CYCLE ANALYSIS • INDUSTRY/ COMPETITION ANALYSIS – See previous discussion

18. STRATEGY CORPORATE LEVEL(GRAND) GROWTH STABILITY RETIREMENT BUSINESS LEVEL: 131 COST LEADERSHIP DIFFERENTIATION FOCUS “Competitive Priorities”: Cost/Price Quality Availability Dependability OM Chap 1 Pg 14 FUNCTIONAL LEVEL: OPERATIONS STRATEGY

19. GROWTH STRATEGIES CONCENTRATION DIVERSIFICATION VERTICAL INTEGRATION ACQUISITIONS & MERGERS

20. STRATEGY IMPLEMENTATIONPg 136- • Organizing and Directing view • Policies/procedures, Programs and Budgets view • What are policies? Why important here? • Programs are MT and ST plans • Elements

21. MANAGEMENT CONTROLChapter 14 The systematic process through which managers regulate organizational activities to make them consistent with expectations established in plans, targets, and standards of performance.

22. MANAGEMENT CONTROLSteps 402- SETTING STANDARDS MEASURING ACTUAL PERFORMANCE COMPARISON ANALYSIS CORRECTIVE ACTION/ NO ACTION

23. Scope and Stages of Management Control 407- • Control at all levels: strategic, tactical and operational • Preliminary control • Concurrent control • Post/Feedback control • Examples of control: quality control, process control, employee evaluations, customer satisfaction surveys, supplier evaluations

24. Principles of Effective Control419- • Focus • Amount of • Quality of information • Flexibility • Timeliness