Professional Documents
Culture Documents
Chap 007
Chap 007
Chap 007
Business in a
Changing World
Chapter 7
Managerial Decision Making
2
McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
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Vivace Espresso
All things coffee
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The Importance of Management
Management –
planning, organizing, staffing, directing, & controlling
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The Importance of Management
Management
What Managers Do
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The Importance of Management
Resources
•People
•Raw materials
•Equipment
•Money
•Information
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Management Functions
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Management Functions
Planning –
Process of determining the organization’s
objectives and deciding how to accomplish them.
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Management Functions
Planning
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Management Functions
Objectives
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Management Functions
Plans
Strategic Plans
Tactical Plans
Operational Plans
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Management Functions
Strategic Plans
Tactical Plans
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Management Functions
Operational Plans
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Management Functions
Crisis Management
Contingency Planning
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Management Functions
Crisis/Contingency Planning
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Management Functions
Organizing –
Structuring of resources & activities to
accomplish objectives efficiently & effectively.
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Management Functions
Organizing
Importance –
– Creates synergy
– Establishes lines of authority
– Improves communication
– Improves competitiveness
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Management Functions
Staffing –
Hiring people to carry out the work of the
organization.
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Management Functions
Staffing
Importance –
– Recruiting
– Determine skills
– Motivate & train
– Compensation levels
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Management Functions
Downsizing –
Elimination of significant numbers of employees
(rightsizing, trimming the fat)
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Management Functions
Directing –
Motivating and leading employees to achieve
organizational objectives.
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Management Functions -- Directing
Motivation
•Incentives (raise, promotion)
•Employee involvement (cost reduction, customer service, new products)
•Recognition and appreciation
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Management Functions
Controlling –
Process of evaluating and correcting activities to
keep organization on course,
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Management Functions
Controlling
Five Activities –
– Measuring performance
– Comparing performance against standards
– Identifying deviations from standards
– Investigating causes of deviations
– Taking corrective action
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Types of Management
Levels of Management –
• Top management
• Middle management
• First-line/supervisory management
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Types of Management
Top Management
•President
•Chief Executive Officer (CEO)
•Chief financial officer (CFO)
•Chief operations officer (COO)
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Levels of Management
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Types of Management
Middle Management
First-Line
Management
•Supervise workers
•Oversee daily operations
•Directing and controlling primary functions
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Areas of Management
• Finance
• Production
• Operations
• Human Resources
• Marketing
• Administration
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Areas of Management
Financial Management –
Focus on obtaining money necessary for the
successful operations and using funds to further
organizational goals.
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Areas of Management
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Areas of Management
Marketing Management –
Responsible for planning, pricing, and promoting
products and making them available to
customers
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Areas of Management
Administrative Managers –
Manage an entire business or major segment of
the business. Coordinate activities of specialized
managers.
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Skills Needed by Managers
•Leadership
•Technical expertise
•Conceptual skills
•Analytical skills
•Human relations skills
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Managerial Skills
Leadership –
Ability to influence employees to work toward
organizational goals.
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Managerial Skills
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Skills Needed by Managers
•Autocratic Leaders
•Decision makers, “tell” employees
•Democratic Leaders
•Involve employees in decisions
•Free-rein leaders
•Employees work without interference
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Most Admired Companies & CEO’s
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Management – Going Green
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Decision Making
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The Realities of Management