“Companies fail when they become complacent and imagine

that they will always be successful. So we are always

challenging ourselves. Even the most successful companies must constantly reinvent themselves.

--Bill Gates

The Importance of Business Management

The Business World Today

Constant change! Technology Society Environment Competition Diversity

What is Management?

The process of deciding how best to use a business’s resources to produce good or provide services Employees Equipment Money

What is Management?

Auto industry managers Assembly line: schedule

work shifts, supervise assembly of vehicles

Engineering: develop new product features, enforce safety standards

General: plan for the future All organizations need

managers!

Levels of Management

Senior management Establishes the goal/objectives of the business Decides how to use the company’s resources Not involved in the day-to-day problems Set the direction the company will follow Chairperson of the company’s board of directors,

CEO, COO, senior vice presidents

Levels of Management

Middle management Responsible for meeting the goals that senior

management sets Sets goals for specific areas of the business Decides which employees in each area must do to

meet goals Department heads, district sales managers

Levels of Management

Supervisory management Make sure the day-to-

day operations of the business run smoothly

Responsible for the people who physically produce the company's products or services

Forepersons, crew leaders, store managers

The Management Pyramid

The Management Process

Three ways to examine how management works: Tasks performed

Planning, organizing, staffing, leading, controlling

Roles played (set of behaviors associated with a particular job) Interpersonal, information-based, decision-making

Skills needed Conceptual, human relations, technical

The Management Process

Planning Decides company goals

and the actions to meet them

CEO sets a goal of increasing sales by 10% in the next year by developing a new software program

The Management Process

Organizing Groups related

activities together and assigns employees to perform them

A manager sets up a team of employees to restock an aisle in a supermarket

The Management Process

Staffing Decides how many and what kind of people a

business needs to meet its goals and then recruits, selects, and trains the right people

A restaurant manager interviews and trains servers

The Management Process

Leading Provides guidance

employees need to perform their tasks

Keeping the lines of communication open Holding regular staff

meetings

The Management Process

Controlling Measures how the

business performs to ensure that financial goals are being met

Analyzing accounting records

Make changes if financial standards not being met

Relative Amount of Emphasis Placed on Each Function of

Management

Management Roles

Managers have authority within organizations Managers take on different roles to best use their

authority Interpersonal roles Information-related roles Decision-making roles

Management Roles

Interpersonal roles A manager’s relationships with people

Providing leadership with the company Interacting with others outside the organization Senior managers spend much of their time on

interpersonal roles Represent the company in its relations with people outside

the company, interacting with those people, and providing guidance and leadership to the organization

Determine a company’s culture Sears, Roebuck and Co.

Management Roles

Information-related roles Provide knowledge, news or advice to employees

Holding meetings Finding ways of letting employees know about important business

activities

Decision-making roles Makes changes in policies, resolves conflicts, decides how

to best use resources Middle and supervisory managers spend more time resolving

conflicts than senior managers

Management Skills

Conceptual skills Skills that help managers understand how different parts

of a business relate to one another and to the business as a whole

Decision making, planning, and organizing

Management Skills

Human relations skills Skills managers need to understand and work well with

people Interviewing job applicants, forming partnerships with

other businesses, resolving conflicts

Management Skills

Technical skills The specific abilities that people use to perform their jobs Operating a word processing program, designing a

brochure, training people to use a new budgeting system

Management Skills

All levels of management require a combination of conceptual, human relations, and technical skills Conceptual skills most important at senior

management level Technical skills most important at lower levels Human relations skills important at all levels

Principles of Management

A principle is a basic truth or law Managers often use certain rules when

deciding how to run their business Most management principles are

developed through observation and deduction

Principles of Management

Deduction is the process of drawing a general conclusion from specific examples Observe that employees in 15 companies work

more efficiently when their supervisors threat them well

Deduce/conclude that a pleasant work environment contributes to productivity

Conclusion becomes a management principle

Principles of Management

Management principles are best viewed as guides to action rather than rigid laws

If a principle does not apply to a specific situation, an experienced manager will not use it Important to recognize when a principle shouldn’t

be followed Being able to change and adapt is an important

management skill

Principles of Management

Women and Minoritiesin Management

In the last three decades, an increased number of women and minorities have joined the workforce They’ve attained positions as managers in

companies of all sizes

Women and minorities now serve as the CEOs of prestigious businesses Avon, eBay, Lucent

Women and Minoritiesin Management

White men still hold most senior management positions

Glass ceiling: the invisible barrier that prevents women and minorities from moving up in the world of business Steadily becoming a

window of opportunity!

Women and Minoritiesin Management

Workers and managers must be sensitive to challenges presented by a multicultural workplace Religious holidays that are

celebrated at different times throughout the year by Muslims, Christians, Jews and other religious groups