1. FHF
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. part
Managing for Quality
3
and Competitiveness
CHAPTER 6 The Nature of Management
CHAPTER 7 Organization, Teamwork, and Communication
CHAPTER 8 Managing Service and Manufacturing Operations
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3. Management Is...
[ A process designed to achieve an organization’s
objectives by using its resources effectively &
efficiently in a changing environment ]
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4. What Managers Do
 Make decisions (utilize resources)
achieve objectives
 Planning
 Organizing
 Staffing
 Directing
 Controlling
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5. The Importance of
Management
 Resource acquisition and coordination
 Resources:
 People
 Raw materials
 Equipment
 Money
 Information
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6. Management 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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7. The 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?
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8. Goals
 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
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9. Common Organizational Objectives
The desired end results
Profit
Competitive advantage
Efficiency
Growth
Service
Ethics
Community responsibility
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10. Planning as a Function of
Management
 Strategic
 Tactical
 Operational
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11. Strategic Plans
Duty of executive-level managers
Establish the long-range objectives & overall strategy
to fulfill firm’s mission
2-10 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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12. Tactical Plans
Short-range
Strategy implementation
• Time frame of 1 year or less
• Environmental changes
• Periodically reviewed & updated
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13. Operational Plans
Very short-term
Actionable, specific
• Individuals, work groups, departments
• 1 month, 1 week, 1 day
• Help to achieve tactical plans
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14. Crisis Management
Contingency Planning
Focus on potential disasters
Product tampering
Oil spills
Fire, earthquake, terrorist attack
Unethical/illegal employee activity
Communication is very important during a crisis
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15. Management Functions
Organizing
Structuring of resources & activities to accomplish
objectives efficiently & effectively
Importance:
 Creates synergy
 Establishes lines of authority
 Improves communication
 Improves competitiveness
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16. Management Functions
Staffing
Hiring people to carry out the work of the organization
Importance:
 Recruiting
 Determine skills
 Motivate & train
 Compensation levels
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17. Management Functions
Downsizing
The elimination of significant numbers of employees
Rightsizing
Trimming the fat
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18. Management Functions
Directing
Motivating and leading employees to achieve
organizational objectives
Motivation
• Incentives (raise, promotion)
• Employee involvement (cost reduction, customer service, new products)
• Recognition and appreciation
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19. Management Functions
Controlling
Process 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
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20. Top Managers
 President
 Chief Executive Officer (CEO)
 Chief Financial Officer (CFO)
 Chief Operations Officer (COO)
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21. Middle Management
 Responsible for tactical planning
 Implement general guidelines established by top
management
 Responsibility is more narrowly focused than top
managers
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22. First Line Management
 Supervise workers
 Oversee daily operations
 Directing and controlling
are primary functions
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23. Areas of Management
 Finance
 Production
 Operations
 Human Resources
 Marketing
 Administration
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24. Financial Management
[ Focus on obtaining money necessary for the
successful operations and using these funds to
further organizational goals ]
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25. Production & Operations Management
[ Develop & administer activities to
transform resources into goods, services
and ideas for the marketplace. ]
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26. Human Resources Management
[ Handle staffing function and deal with
employees in a formalized manner ]
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27. Marketing Management
[ Responsible for planning, pricing and
promoting products and making them
available to customers ]
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28. Information Technology (IT)
Management
[ ]
Responsible for implementing,
maintaining and controlling
technology applications in business
(such as computer networks)
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29. Administrative Managers
 Manage an entire business or major segment of the
business
 Coordinate activities of specialized managers
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30. Skills Needed by Managers
 Leadership
 Technical expertise
 Conceptual skills
 Analytical skills
 Human relations skills
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31. Types of Leaders
Autocratic Leaders
Decision makers, “tell” employees what to do
Democratic Leaders
Involve employees in decisions
Free-Rein leaders
Employees work with minimal interference
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32. Technical 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
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33. Conceptual Skills
 Are the ability to think in abstract terms
and to see how parts come together to form
the whole.
 The ability to think creatively
 Needed by all managers
 Especially important for top managers
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34. Analytical 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
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35. Human Relations Skills
 The ability to deal with people inside and
outside the organization
 Managers with good HR skills are generally more
successful
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36. Where Do Managers
Come From?
Good managers are not born;
they are made
Internal 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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37. Decision Making
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38. The Reality of Management
Not a cut-and-dried process
Managers 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
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