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

part

Managing for Managing for QualityQualityand and CompetitivenessCompetitiveness

CHAPTER 8 Managing Service and Manufacturing Operations

CHAPTER 7 Organization, Teamwork, and Communication

3CHAPTER 6 The Nature of Management

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Management Is...Management Is...Management Is...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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What Managers DoWhat Managers DoWhat Managers DoWhat Managers Do

Make decisions (utilize resources) achieve objectives

Planning

Organizing

Staffing

Directing

Controlling

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The Importance of The Importance of ManagementManagement

The Importance of The Importance of ManagementManagement

Resource acquisition and coordination Resources:

People

Raw materials

Equipment

Money

Information

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Management FunctionsManagement FunctionsManagement FunctionsManagement 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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The Mission StatementThe Mission StatementThe Mission StatementThe 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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GoalsGoalsGoalsGoals

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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Common Organizational Common Organizational ObjectivesObjectives

Common Organizational Common Organizational ObjectivesObjectives

The desired end resultsProfit

Competitive advantage

Efficiency

Growth

Service

Ethics

Community responsibility

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Planning as a Function of Planning as a Function of ManagementManagement

Planning as a Function of Planning as a Function of ManagementManagement

Strategic Tactical Operational

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Strategic PlansStrategic PlansStrategic PlansStrategic Plans

Duty of executive-level managersEstablish the long-range objectives & overall strategy to fulfill firm’s mission2-10 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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Short-rangeStrategy implementation

• Time frame of 1 year or less

• Environmental changes

• Periodically reviewed & updated

Tactical PlansTactical PlansTactical PlansTactical Plans

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Operational PlansOperational PlansOperational PlansOperational Plans

Very short-termActionable, specific

• Individuals, work groups, departments

• 1 month, 1 week, 1 day

• Help to achieve tactical plans

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Crisis Management Crisis Management Contingency PlanningContingency PlanningCrisis Management Crisis Management

Contingency PlanningContingency Planning

Focus on potential disastersProduct tampering

Oil spills

Fire, earthquake, terrorist attack

Unethical/illegal employee activity

Communication is very important during a crisis

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Management FunctionsManagement FunctionsManagement FunctionsManagement Functions

OrganizingStructuring of resources & activities to accomplish objectives efficiently & effectively

Importance:

Creates synergy

Establishes lines of authority

Improves communication

Improves competitiveness

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Management FunctionsManagement FunctionsManagement FunctionsManagement Functions

StaffingHiring people to carry out the work of the organization

Importance:

Recruiting

Determine skills

Motivate & train

Compensation levels

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Management FunctionsManagement FunctionsManagement FunctionsManagement Functions

Downsizing The elimination of significant numbers of employees

Rightsizing

Trimming the fat

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Management FunctionsManagement FunctionsManagement FunctionsManagement Functions

DirectingMotivating 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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Management FunctionsManagement FunctionsManagement FunctionsManagement Functions

ControllingProcess 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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Top ManagersTop ManagersTop ManagersTop Managers

President

Chief Executive Officer (CEO)

Chief Financial Officer (CFO)

Chief Operations Officer (COO)

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Middle ManagementMiddle ManagementMiddle ManagementMiddle Management

Responsible for tactical planning Implement general guidelines established by

top management Responsibility is more narrowly focused than

top managers

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First Line ManagementFirst Line ManagementFirst Line ManagementFirst Line Management

Supervise workers Oversee daily operations Directing and controlling

are primary functions

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Areas of ManagementAreas of ManagementAreas of ManagementAreas of Management

Finance Production Operations Human Resources Marketing Administration

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Financial ManagementFinancial ManagementFinancial ManagementFinancial Management

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Focus on obtaining money necessary for the successful operations and

using these funds to further organizational goals

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Production & Operations Production & Operations ManagementManagement

Production & Operations Production & Operations ManagementManagement

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Develop & administer activities to transform resources into goods,

services and ideas for the marketplace.

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Human Resources ManagementHuman Resources ManagementHuman Resources ManagementHuman Resources Management

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Handle staffing function and deal with employees in a formalized

manner

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Marketing ManagementMarketing ManagementMarketing ManagementMarketing Management

Responsible for planning, pricing and promoting products and making

them available to customers

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Information Technology (IT) Information Technology (IT) ManagementManagement

Information Technology (IT) Information Technology (IT) ManagementManagement

Responsible for implementing, maintaining and controlling technology

applications in business (such as computer networks)

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Administrative ManagersAdministrative ManagersAdministrative ManagersAdministrative Managers

Manage an entire business or major segment of the business

Coordinate activities of specialized managers

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Skills Needed by ManagersSkills Needed by ManagersSkills Needed by ManagersSkills Needed by Managers

Leadership Technical expertise Conceptual skills Analytical skills Human relations skills

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Types of LeadersTypes of LeadersTypes of LeadersTypes of Leaders

Autocratic LeadersDecision makers, “tell” employees what to do

Democratic LeadersInvolve employees in decisions

Free-Rein leadersEmployees work with minimal interference

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Technical ExpertiseTechnical ExpertiseTechnical ExpertiseTechnical 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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Conceptual SkillsConceptual SkillsConceptual SkillsConceptual Skills

Are the ability to think in abstract terms and to see how parts come together to form the whole.

The ability to think creativelyNeeded by all managersEspecially important for top managers

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Analytical SkillsAnalytical SkillsAnalytical SkillsAnalytical 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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Human Relations SkillsHuman Relations SkillsHuman Relations SkillsHuman 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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Where Do Managers Where Do Managers Come From?Come From?

Where Do Managers Where Do Managers Come From?Come From?

Good managers are not born; they are madeInternal 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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Decision MakingDecision MakingDecision MakingDecision Making

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The Reality of ManagementThe Reality of ManagementThe Reality of ManagementThe Reality of Management

Not a cut-and-dried processManagers 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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