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planning.ppt
- 1. 7-1
- 2. Business in a Changing World McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 Managerial Decision Making 2
- 3. 7-3
- 4. 7-4 Vivace Espresso All things coffee Local Seattle establishment – “espresso roasting and preparation specialists”
- 5. 7-5 The Importance of Management Achieving objectives requires skilled management Management – planning, organizing, staffing, directing, & controlling
- 6. 7-6 The Importance of Management Process designed to achieve an organization’s objectives by using its resources effectively & efficiently in a changing environment. Management
- 7. 7-7 The Importance of Management Make decisions – utilization of resources – achieve objectives: •Planning •Organizing •Staffing •Directing •Controlling What Managers Do
- 8. 7-8 The Importance of Management •Boeing Airline’s 787 Dreamliner •892 sold @ $169 million each •$145 billion total sales •57 global customers New Product Development
- 9. 7-9 The Importance of Management Resources •People •Raw materials •Equipment •Money •Information Resource acquisition & coordination
- 11. 7-11 Management Functions Planning – Process of determining the organization’s objectives and deciding how to accomplish them.
- 12. 7-12 Management Functions Objectives – results desired by organization Mission – organization’s purpose and philosophy Planning
- 13. 7-13 Management Functions Common & Elaborate Organizational Objectives -- •Profit, competitive advantage, efficiency, growth •Service, ethics, community responsibility Objectives
- 14. 7-14 Management Functions Strategic Plans Tactical Plans Operational Plans Plans
- 15. 7-15 Management Functions Executive level managers •Establish the long-range objectives & overall strategy to fulfill firm’s mission •2-10 years forward-looking •Sustainability •diversification, divestiture , mergers & acquisitions, Strategic Plans
- 16. 7-16 Management Functions Short-range – strategy implementation •1 year or less •Environmental change •Periodically reviewed & updated Tactical Plans
- 17. 7-17 Management Functions Very short-term – actionable, specific •Individuals, work groups, departments •1 month, 1 week, 1 day •Achieve tactical plans Operational Plans
- 18. 7-18 Management Functions Focus on potential disasters •Product tampering •Oil spills •Fire, earthquake, terrorist attack •Unethical/illegal employee activity Crisis Management Contingency Planning
- 19. 7-19 Management Functions Crisis/Contingency Planning Crisis Management Teams – Ashland Oil – J.J. Heinz – Johnson & Johnson 19
- 20. 7-20 Management Functions Organizing – Structuring of resources & activities to accomplish objectives efficiently & effectively.
- 21. 7-21 Management Functions Organizing Importance – – Creates synergy – Establishes lines of authority – Improves communication – Improves competitiveness 21
- 22. 7-22 Management Functions Staffing – Hiring people to carry out the work of the organization.
- 23. 7-23 Management Functions Staffing Importance – – Recruiting – Determine skills – Motivate & train – Compensation levels 23
- 24. 7-24 Management Functions Downsizing – Elimination of significant numbers of employees (rightsizing, trimming the fat)
- 25. 7-25 Management Functions Directing – Motivating and leading employees to achieve organizational objectives.
- 26. 7-26 Management Functions -- Directing Motivation •Incentives (raise, promotion) •Employee involvement (cost reduction, customer service, new products) •Recognition and appreciation
- 27. 7-27 Management Functions Controlling – Process of evaluating and correcting activities to keep organization on course,
- 28. 7-28 Management Functions Controlling Five Activities – – Measuring performance – Comparing performance against standards – Identifying deviations from standards – Investigating causes of deviations – Taking corrective action
- 29. 7-29 Types of Management Levels of Management – • Top management • Middle management • First-line/supervisory management
- 30. 7-30 Types of Management •President •Chief Executive Officer (CEO) •Chief financial officer (CFO) •Chief operations officer (COO) Top Management
- 31. 7-31 Levels of Management The 5 Highest Paid CEO’s in 2007 Rank CEO Company Total Compensation ($ millions) 1. Lawrence J. Ellison Oracle $192.92 2. Frederic M. Poses Trane $127.10 3. Aubrey K. McClendon Chesapeake Energy $116.89 4. Angelo R. Mozilo Countrywide Financial $102.84 5. Howard D. Schultz Starbucks $98.60
- 32. 7-32 Types of Management •Responsible for tactical planning •Implement general guidelines established by top management Middle Management
- 33. 7-33 Types of Management •Supervise workers •Oversee daily operations •Directing and controlling primary functions First-Line Management
- 34. 7-34 Areas of Management • Finance • Production • Operations • Human Resources • Marketing • Administration
- 35. 7-35 Areas of Management Financial Management – Focus on obtaining money necessary for the successful operations and using funds to further organizational goals.
- 36. 7-36 Areas of Management Production & Operations Management– Develop & administer activities to transform resources into goods, services, and ideas for the marketplace.
- 37. 7-37 Areas of Management Human Resources Management – Handle staffing function and deal with employees in a formalized manner
- 38. 7-38 Areas of Management Marketing Management – Responsible for planning, pricing, and promoting products and making them available to customers
- 39. 7-39 Areas of Management Information Technology (IT) Management – Responsible for implementing, maintaining, and controlling technology applications in business (computer networks)
- 40. 7-40 Areas of Management Administrative Managers – Manage an entire business or major segment of the business. Coordinate activities of specialized managers.
- 41. 7-41 Skills Needed by Managers •Leadership •Technical expertise •Conceptual skills •Analytical skills •Human relations skills
- 42. 7-42 Managerial Skills Leadership – Ability to influence employees to work toward organizational goals.
- 43. 7-43 Managerial Skills Seven Tips for Successful Leadership
- 44. 7-44 Skills Needed by Managers •Autocratic Leaders •Decision makers, “tell” employees •Democratic Leaders •Involve employees in decisions •Free-rein leaders •Employees work without interference
- 45. 7-45 America’s Most Admired Companies, 2008 Company Chief Executive Officer Apple Steve Jobs Berkshire Hathaway Warren Buffett General Electric Jeffrey Immelt Google Eric Schmidt Toyota Motor Katsuaki Watanabe Most Admired Companies & CEO’s
- 46. 7-46 Management – Going Green Compact Fluorescent Light Bulbs: A Bright Idea – CFL’s use 75 percent less energy. Technical Consumer Products, Inc. largest provider of CFL’s in the United States.
- 48. 7-48 The Realities of Management According to J.P. Kotter, management functions boil down to: 1. Figuring out what to do despite uncertainty, diversity, and a great deal of potentially relevant information. 2. Getting things done through a large and diverse set of people despite having little direct control over them.