managing effectively

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MANAGING EFFECTIVELY CHAPTER 7

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Power point is on how to magage effectively and how the diffrent roles of different level mangers come to create and run a firm/business.

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Page 1: Managing Effectively

MANAGING EFFECTIVELYCHAPTER 7

Page 2: Managing Effectively

Levels of Management1. Top

Management- These are the presidents, chief executive officer, chief financial officer, & vice president. These managers makes decisions regarding the firm’s long-run objectives.

2. Middle Management- These are responsible for the firms short-term decisions. Ex. Regional manager

3. Supervisory Management- They are highly involved with the employees of the day to day production

Top Management

Middle & Top Managers

Supervisory Managers

1. Set new plans to expand production & increase sales.

1. Determine how many new employees to hire.

1. Provide job assignments to the new employees who are hired.

2. Communicate those plans to all managers

2. Determine how to charge lower prices to increase sales.

2. Set time schedules for new employees who are hired

3. Determine hoe to increase advertising to increase sales.

Page 3: Managing Effectively

Functions of Managers

Managerial can be classified into one of the following four categories.

• Planning• Organizing• Leading• Controlling

Page 4: Managing Effectively

PlanningI. Planning represents

the preparation of a firm for future business conditions.

II. The 1st step in the planning process is to establish a mission statement this describes its primary goal.

An example of a mission statement

Page 5: Managing Effectively

Strategic PlanThe long-term Goals

The strategic Plan identifies the firms main business focus over a long-term period .

This plan typically includes goals and strategies that can be used to satisfy the firm’s mission.

Page 6: Managing Effectively

Tactical PlanningShort-term Goals

These are smaller-scale plans over 1 or 2 years.

They are consistent with the firm’s long-term plan.

A company may asses the economic conditions, the general demand, & the level of competition.

Page 7: Managing Effectively

Operational PlanningThe Breakdown These are the

methods to be used in the near future such as the next year to achieve the tactical plans.

The goals of operational planning are somewhat dependent on the firm’s long-term goals.

Page 8: Managing Effectively

When firm’s engage in operational planning they must abide by their

Policies- these are the guidelines for how tasks should be completed.

Procedures- these are steps that are necessary to implement a policy.

Page 9: Managing Effectively

Contingency PlanningThe Backup Plan

What they do is develop alternative plans for various possible business conditions

Some of these plans prepare for possible crises that may occur.

Overbooked reservations

To reduce the number of customers who need that flight, offer customers who are willing to be bumped a free round-trip.

Minor airplane repairs

Have airline mechanics available @ each major airport

Major airplane repairs

If airplane is not good to fly, reroute the passengers.

Page 10: Managing Effectively

Long-term Planning

Mission statement (primary goal) & strategic plan

Tactical Planning

Goals for the next year that consist with the strategic plan

Operational Planning

Set a plan for conducting business in a manner that will achieve the tactical plan.

Contingency Planning

Determine alternative plans for conducting business in the event that various situations occur.

How Planning Functions are Related

Page 11: Managing Effectively

Organizing The organizing function

involves the organization of employees & other resources in a manner that is consistent with the firm’s goals.

Once a firm’s goals are established (from the planning function), resources are obtained & organized to achieve those goals.

Page 12: Managing Effectively

Leading The leading function is

the process of influencing the habits of others to achieve a common goal.

The leading function involves not only instructions on how to complete a task but also incentives to complete it correctly and quickly.

Page 13: Managing Effectively

3 types of leadership styles

Autocratic~ In which the leader retain full authority for decisions making; employees have little or no input.

Free-rein~ management style in which the leader delegates much authority to employees.

Participative~ The leaders accept some employee input but then they make the final decision.

Page 14: Managing Effectively

Controlling The controlling

function involves the monitoring and evaluation of task.

The controlling function assesses whether the plans set within the planning function are

achieved.

To evaluate tasks, managers Should measure performance in comparison with the standards & expectations they det.

Sales volume

Production Vol.

Labor Cost

Equipment repair

Actual level last week

300 units

350 units

$10,000

$3,000

Standards (expected level)

280 units

350 units

$9,000

$1,000

Assessment

Ok

Ok

Too high

Too high

Page 15: Managing Effectively

Managers use 4 ways to use control: Control used to correct Deficiencies Control used to correct Standards Control of Management Process Control of Reporting

Page 16: Managing Effectively

Top Managers:Change strategic plan to

Replace plastic toy production with computer

Game production.

Communicate the plan to middleManagement & ask middle

Management to implement the plan

Middle Management:Reorganize the plastic toy production

Plant so that it can now be used toProduce computer games. Retrain

The plants employees and hire 4 newEmployees to help.

Communicate the reorganization toSupervisors & ask them to implement

The new production process.

Supervisors:Explain each employees

Tasks required to Produce computer games& how to perform the task

Communicate the tasksTo employees

Planning OrganizingLeading

Assess the expenses & sales fromProducing computer games

Every month. Determine whetherThe new strategic plan is

successful.

Determine whether theProduction is efficient (based

On monitoring the plantOutput & expenses each

Month).

Monitor employees to ensureThat they are completingTheir new assignments

Properly.

Page 17: Managing Effectively

Managerial Skills1. Conceptual Skills~ These skills

are the ability to understand the relationship among the various tasks of the firm. They see how all the pieces all fit together.

Managers with good conceptual skills have backup strategies when problems in the production process occur.

They tend to be creative and are willing to consider carious methods of achieving goals.

Page 18: Managing Effectively

Manger Skills #21. Interpersonal Skills~ these are

the skills to be able to communicate with customers and employees.

One of the most important interpersonal skills is the ability to ask good questions.

Managers must be able to clearly communicate assignments to employees & must communicate with employees who have made mistakes on the job so that they can be corrected.

Managers must listen to complaints from employees and attempt to resolve their problems.

Page 19: Managing Effectively

Manager Skill #31. TECHNICAL Skills~ These are the

skills used to perform specific day-to-day tasks.

Managers must have a understanding of all new and old technology that is being used my the firm.

Page 20: Managing Effectively

Manger Skill #41. Decision-Making Skills~ these

skills are for using existing information to determine how the firm’s resources should be allocated.

Managers who make proper decisions can improve the firm’s earnings & thereby increase its value. And maybe even raise.

Page 21: Managing Effectively

5 guidelines to exercise time management

Set Proper Priorities Schedule Long Time Intervals for

Large Task Minimize Interruptions Set Short-Term Goals Delegate Some Tasks to Employees