Management Function Planning

1. Management FunctionPlanning Dr. John P. Abraham UTPA

2. Planning • Provides direction • Cooperation and teamwork • Reduces impact of change • Forces to anticipate change • Minimizes waste and redundancy • Coordination among managers • Sets standards to facilitate control • Strategic planning for long term • Tactical planning for short term

3. Strategic Planning • strategic planning determines where an organization is going over the next year or more, how it's going to get there and how it'll know if it got there or not. • The focus of a strategic plan is usually on the entire organization, while the focus of a business plan is usually on a particular product, service or program.

4. Management by Objectives • Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources • It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization.

5. Management by objectives • All levels makes objectives • Provides for specific personal performance • Identify an employee’s key job tasks • Establish specific objectives • Allow employee to actively participate • Prioritize • Build a feedback mechanism • MBO not as popular as once

6. Planning stages • Mission and objectives • Analyze environment • Analyze organizations resources • Identify opportunities and threats (SWOT –strengths weakness, opportunities and threats) • Identify strengths and weakness of organization. • Formulate strategies • Implement, evaluate and adjust

7. SWOT Strengths • What is your strongest business asset? • Do you consider your team strong? Why? • What do you offer that makes you stand out from the rest? • What unique resources do you have? • Do you have any specific marketing expertise? • Do you have a broad customer base? • Additional strengths

8. SWOT Weaknesses • What can be improved? In what areas do your competitors have the edge? What necessary expertise / manpower do you currently lack? Do you have cash flow problems? Are you relying primarily on just a few clients or customers? Additional weaknesses

9. SWOT Opportunities • What trends do you see in your industry? • What trends do you foresee? • What trends might impact your industry? • What external changes present interesting opportunities? • What have you seen in the news recently that might present an opportunity? • Additional opportunities

10. SWOT Threats • What obstacles do you face? • What is the competition doing that you're not? • What challenges can be turned into opportunities? • Are external economic forces affecting your bottom line? • Additional threats

11. Decision Making process • Identification of decision criteria • Allocation of weights to criteria • Development of alternatives • Analysis of alternatives • Selection of an alternative • Implementation and evaluation

12. Decision Making Models • Mathematical model • Differential calculus • Statistical Model

13. Example • Customer service might improve with number of employees up to a point. Then the service might actually decrease. • We can graph this on x, y. Example equation, y= 14X – 1/2X2 • We can calculate the optimum number of employees needed.

14. Example car buying decision • Price weight 10 • Interior comfort 8 • Durability 5 • Repair record 5 • Performance 3 • Handling 2 • Trade-in value 3 • Use this on variety of cars available • Think: How do we make decision on stem cell research? • CS – expert system, neural networks

15. Decision Making Techniques • Payoff Matrices • Based on uncertainly and pessimist an optimist view of the manager • Decision Trees • Involves a progression of decisions • Brake-Even Analysis • A point at which revenue is sufficient cover costs. • Ratio Analysis • Current ratio – current assets divided by its current liabilities. • P/E ratio • Etc. • Queuing theory • Determine how many teller stations to have

16. MANAGEMENT FUNCTION • ORGANIZING

17. Organizing •  24So Moses hearkened to the voice of his father in law, and did all that he had said. •  25And Moses chose able men out of all Israel, and made them heads over the people, rulers of thousands, rulers of hundreds, rulers of fifties, and rulers of tens. •  26And they judged the people at all seasons: the hard causes they brought unto Moses, but every small matter they judged themselves. • Exodus 18

18. Organization structure • Formal organization chart represents the division of activities within the firm (who reports to whome).

19. Types of departmentalization • Functional • Engineering, accounting, IT • Products • Hardware, software, footware • Customer • Wholesale, retail, government • Geographic • North, south • Process • Testing, payment

20. Elements of organization structure • Work specialization • Specialized training • Chain of command • Unity of command – only one manager • Span of control • How many employees con a manager direct effectively? 6 • Authority (rights given or taken) & Responsibility • Centralized vs decentralized authority

21. Line and Staff Relationship • Deals with authority from previous slide • Line are those that are directly concerned with attaining product or service. • Production, sales and finance • Staff exist to help make the line activities more effective. • HR, purchasing, IT, safety • Not usually subject to line authority • Line-staff friction

22. Beware of informal organization • Sociogram • Movie- last castle

23. Building Power • Power is the total amount of influence that an individual has to influence behavior of people. Some of it comes from formal authority given by line. • Knowledge, skill • Respect others • Build power relationships • Control important information • Gain seniority • Build power in stages

24. Staffing and HR • HR practices are governed by laws. • Equal pay act 1963 • Civil rights act titile VII (race, color, relion, national origin or sex) 1964 • Vocational rehabilitation act (physical or mental disabilities) 1973 • Privacy Act 1974 • Pregnancy (Title VII) 1978 • No Mandatory age for retirement 1978 • Immigration Reform –don’t hire illegals 1986 • Polygraph limitation – 1988 • Disabilities act (accommodate) 1990 • Family and Medical Leave act 1993

25. Employment Planning • Assessing current human resources • Job analysis • Job description • Job specifications (minimum qualification) • Future human resources needs • Revenues, expansion • Developing a program to meet these needs

26. Recruitment and Selection • Internal search • Advertisement • Employee referrals • Employment agencies • School placement • Temp services • Employee leasing and Independent contractors

27. Downsizing • Firing • Layoffs • Attrition • Transfers • Reduced workweeks • Early retirements

28. Employee Selection Process • Problem to avoid: Hired can’t do the job and not-hired was capable. • What was the prediction of success based on? • Test? Interview? References? Education? • Written tests are good. • Oral tests are also good. • Interview alone is probably not good

29. Interviewing skills • Review job description and job specifications before interviewing. • Prepare a structured set of questions and ask all applicants. • Review written application and resume before the interview • At the start of interview give a brief preview of topics discussed. • Find out how much the applicant know about the position and the company in general • Let the applicant know what is the next step • Write down the evaluation immediately upon conclusion of the interview

30. Orientation, Training and Development • Orientation • Job, department, company, environment • Objectives, history, rules, procedures • Training • Job rotation, classroom training, simulation • Train about sexual harassment • Development • Performance evaluation and development for additional resposibilites • Pay increases • Counseling, discipline

31. Other Aspects of Organizing • Spiritual Organization (Southwest air, HP) • Strong sense of purpose, focus on individual development, trust and openness, employee empowerment, toleration of employee expression. • Manage change, stress & innovation