Chapter 2 - The Management Process Flashcards
LO 1 - The importance of managers and management
A company is only as good as its management. Managers have the most direct influence on the performance of a company’s employees. They have the primary responsibility of inculcating the values, beliefs, norms and values of top management for long term sustainability of the organization.
Define management
Management is defined as the process of working with and through others to achieve organisational objectives as efficiently and effectively as possible in a changing environment.
6 components of management
Try to explain each of these
- Management is a process
- Working with and through others
- Achieve organisational goals and objectives
- Balance effectiveness and efficiency
- Make the most of limited and scarce resources
- Coping with a changing environment
The management functions
P
O
L
C
PLANNING
PLANNING
- determines mission and goals
- identifying ways of reaching the goals and finding resources needed for the task in a complex environment.
- cannot be random but should follow a specific and logical method.
Strategic plans: Plans made by top management and vary from one to five years.
Tactical plans: made by functional managers to support organizations Lon term plans.
Operational plans: made by lower management to plan for short periods ahead.
Organizing
Developing a framework that defines how people and other resources are deployed to achieve organizational goals and allocating the resources to the relevant departments.
Organizational design - process where management must match the organisations structure to its strategies.
Leading
Leading means communicating goals through the organisation and motivating departments, sections and individuals to perform as well as they possibly can so that their actions are aligned with previously formulated goals and plans.
Managers are responsible for getting things done through other people -they collaborate with a superiors, peers and subordinates, with both individuals and groups, to attain the goals of the organisation.
Controlling
Controlling means that the manager should constantly make sure that the organisation is on the right course to attain its goals. Control also enables us to identify and rectify any deviations from the plans, and take into account factors which might oblige them to revise their goals and plans.
It is important to realise that the functions of management do not occur in Italian, step-by-step order. At any given time a manager is likely to be engaged in several management functions simultaneously.
Resources
Resources are scarce inputs that needs to be utilised by managers efficiently and effectively to achieve organisational goals.
These include
People Money Raw materials Knowledge Technology Information
Effectiveness vs efficiency
Differentiate
Effectiveness is achieved when an organisation formulates and achieves their stated goals. Eg Samsung needs to achieve their sales objective.
Whereas efficiency is weighing the ratio of inputs versus the outputs of a business. Benefits vs costs must be favourable. Using the fewest inputs to generate maximum output.
Levels of management
Top level management
Middle level management
Lower level management
Top level management
Final authority that controls the business as a a whole.
They determine the vision, mission, goals and strategies.
Eg. Board of directors, partners, CEO
__________
Middle level management
Responsible for specific departments. They implement policies, plans and strategies developed by top-management.
Eg. Functional heads, financial managers etc
_________
Lower level management
Responsible for subsections of the business and day-day tasks. They do short term planning, applying policies, procedures and rules and providing technical assistance.
Eg shift manager
Areas of management
Finance Operations HR Procurement R&D PR Marketing
Financial function
- obtaining and investing necessary funding at lowest cost in assets which return a greater yield. Managing profitability and liquidity.
Operations function
- they systematically design, direct and control the process that turns inputs to outputs.
The HR function
- Appointment, development and maintenance of HR. Appointing the right people and training them correctly will ensure business runs @ optimum capacity.
Procurement function
- Buying the materials needed to create an output for the business. Manager needs to balance constraints such as availability, quality, quantity and price of the products.
R&D function:
Responsible for developing and improving new and old p/s. Crucial role in fast changing environments such as IT andCommunications.
PR function:
They are responsible for creating a favourable, objective image of the organisation to establish good relations with stakeholders and the company’s products.
Marketing Function:
Responsible for getting the final customer to buy the p/s. Concerned with new product development, promotion and distribution.
Managerial Roles - 3 sub roles
Interpersonal Role
Interpersonal role:
Figurehead: performing duties that are ceremonies and symbolic in nature. Eg community functions
Leader: working with and through employees to ensure company goals are met.
Liaison: role of maintaining good relation inside and out of the business. Managers must be politically sensitive to important organisational issues.
Managerial Roles - 3 sub roles
Information Role
The role of
Monitor: gathering information on trends and passing on relevant information to their superiors and subordinates.
Being a spokesperson for the organisation as a whole.
Managerial Roles - 3 sub roles
Decision making role
The role of
ENTREPRENEUR - initiate projects that capitalise on opportunities.
PROBLEM SOLVER - cope with conflict
RESOURCE ALLOCATOR
NEGOTIATOR
