Transcript .ESSENTIAS OF PLANNING - International University College

Management Course - FY
Topic 1
What is
Management?
Senior Lecturer: A. Popissakov, MBA
INTERNATIONAL UNIVERSITY COLLEGE
7/7/2015
2010-2011
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Contents:
1. Mgnt-Business Environment Interaction
2. Who is a Manager?
3. What is Management?
4. Levels of Management
5. What is Strategic Management
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1. Mgnt-Business environment
A company consists of:
 Company’s resources
 Organizational structure
 Company’s culture
Inner company
environment
(controllable factors )
Management
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1. Mgnt-Business environment
A company operates within:
Certain Business environment
STEP
PEST
Outer company
PESTEL
environment
(uncontrollable factors )
Analysis
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Mgnt-Business environment
Inner environment: (Production, planning, HR, QC..)
Outer factors - STEP Analysis
Company
Mgnt
Resources
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Mgnt-Business environment
Inner and Outer company environment interact
through company’s MANAGEMENT
S
T
E
P
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Indirect
approach
Mgnt
Direct
influence
Company
Org.structure
Culture
Resources
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The Manager's Job
Legends and wrong assumptions about Mgnt.
Managers are needed by big companies,
“blue chips” only.
 Managers are usually owners of those
companies.
 Managers are very professional personnel,
specially educated and trained
 Managers always ware fashionable suites,
drive the newest model stylish cars, live in
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the most prestigious houses....
The Manager's Job - reality
Managers are needed by all types of
organisations.
business firms, (big, medium and
small)
governmental, NGOs and non-profit
firms,
cultural, sport, educational, health,
religious, etc. organizations.
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The Manager's Job - reality
 Usually they are small business owners and
employed for bigger companies.
 25 % are specially educated and trained.
Most of them are heavily experienced.
 They behave and live according to their
level of competence and personal
preferences.
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2. WHO IS A MANAGER?
Most broadly speaking: person who knows
how and can do the job properly.
(skilful computer operator, experienced accountant)
More specific definition: anybody who directs
the work of other people.
(a traffic policeman)
More specific location: anybody who directs
the work of other people within an
organization
(a school teacher)10
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WHO IS A MANAGER?
When we focus our study of management on life in
organisations, our definition can be more precise.
A manager is a person responsible for
the work performance of one or more
other persons who can commit
organisational resources to get the job
done.
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3. WHAT IS MANAGEMENT ?
Management as a Discipline or Field of
Study. (business administration). That’s
You!
 25 percent of top business executives
majored in management.
 Studying management- an enormous return
on investment.
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WHAT IS MANAGEMENT ?
Management as People.
"The thing I like most about working for IBM
is management. They are all so helpful and
kind."
"management" also refers collectively to the
managers of a firm, the individuals or
administration who carry out the process of
management (Company’s culture)
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WHAT IS MANAGEMENT ?
Management as a Career. The Sheraton
Hotel chain recruits graduates of business
and hotel-administration programs by
offering them the opportunity for a career in
management.
– a long series of related jobs, leading to
progressively more responsibility as they
exhibit more managerial competence.
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WHAT IS MANAGEMENT ?
management in this course will mean:
the process of using organisational resources
to achieve organisational objectives through
the functions of planning and decision
making, organising, leading, and
controlling.
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4. Levels of Management
 Another way of understanding the nature of
a manager's jobs is to examine the three
levels of management; top, middle, and
bottom (first level),
 The pyramid shape indicates that there are
progressively fewer employees at each
higher managerial level. The largest number
of people is found at the bottom
organisational level.
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Managerial levels and sample job titles
.
CEO: Chairman of the Board
President, Executive vice president
Chancellors
Top
Mgnt
Middle
Management
First-Level
Management
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Individual Contributors
Director, Branch manager,
Head of Department,
Chief of Surgery,
Supervisor, office manager
crew chief, group leader
Mannual workers, technicians
programmers, secretaries,
engineers, accountants, 17
Top-Level Managers
“Executives” (CEO) make major decisions
affecting the present and future of the firm.
 give the organisation its general direction
 purchase another company, open/close new
offices,
 initiate a new product line, models
 hire/lay off hundreds of employees
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Top-Level Managers
 Less than 1% of people in an organisation
 well paid in both large and small because of
responsibility and contribution.
 The average total compensation for Top 25
company executives is about $40 mn per
year (Business week statistics-2008)
– 1000 times the average annual income for the country.
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Top-Level Managers
Highest-paid CEOs of some major business
corporations
 AT&T, $30 mn + $ 8,2 mn= $ 38.2 mn
 City Group, $25.7 mn + $10.4mn =$35.1mn
 General Motors, $17.5 mn
 Colgate-Palmolive, $5.1mn+ $136mn=$141.1mn
 United Technologies, 4.2 mn + $62.2=$70.4 mn
 Coca Cola: $2,560,000
 Chrysler: $2,395,000
 IBM: $1,960,000
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Top-Level Managers
Top Managers are not necessarily company
owners or shareholders.
They are employed to make money for
owners and shareholders.
According to contribution they can get much
more money then owners.
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Middle Managers
Middle managers are all those who are
neither executives nor first-level
supervisors. They conduct:
 the co-ordination activities within the firm,
and
 disseminate information to and from upper
and lower levels.
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Middle Managers
 Theoretically, all middle managers have
first-level managers reporting to them,
because middle managers are situated in the
second organisational level
 A typical salary for a middle manager in
business is approximately $66-100,000 per
year (2008).
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Middle Managers
Traditional functions of MM:
 a supervisor reports a problem to MM
 MM checks and analyzes the situation
 MM prepares a report,
 and then passes this information up to toplevel management.
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Middle Managers-future trends
 computerisation of information and higher
education of supervisors decrease the need
for middle managers to perform this type of
task,
 leading to a decrease in the number of
middle management positions available.
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First-Level Managers
Managers who supervise operatives are
referred to as first-level managers or firstline managers. (FLM)
Traditionally, FLM are promoted from
production or clerical positions into
supervisory positions.
 Supervisor
 Crew chief
 Office manager
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First-Level Managers
FLM - typical functions:
 help the workers to work properly
 approve organisational direction, and make
sure the directions are clear
 help shape the attitudes of new employees
toward the firm.
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5. What Is Strategic Management
Strategic management is the process of
assessing "what we are" and deciding and
implementing "what we intend to be and
how we are going to get there."
Strategy describes how an organization
intends to compete with the resources
available in the existing and perceived
future environment.
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What Is Strategic Management
Two major dimensions of strategic
management are:
1. Responding to changes in the external
environment and allocating scarce
resources of the firm to improve its
competitive position.
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What Is Strategic Management
2. The second dimension is the internal
responses to new action programs aimed
at enhancing the competitive position of
the firm.
The nature of the responses depends on the
type of business, environment volatility,
competition, and the organizational
culture.
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What Is Strategic Management
The strategic management is a dynamic
process that help the company to:
 respond quickly to new challenges.
 find new and more efficient ways to do
business.
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Strategic Management Process
The four key elements of the strategic
management process are
 Situation analysis
 strategy formulation,
 strategy implementation, and
 strategy control and evaluation.
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Strategic Management Process
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Strategic Management Process
Strategic Management process is often closely
associated with project or strategic
planning, although there are some specific
differences.
While both process planning and project
planning are necessary to give form and
focus to any project, each procedure fulfills
specific needs.
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What Is Strategic Management
The SWOT Analysis is one of several
strategic planning tools that are utilized by
businesses and other organizations to ensure
that there is a clear objective defined for the
project or venture, and that all factors
related to the effort, both positive and
negative, are identified and addressed.
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What to prepare for the next week
seminar ?
 Read the Case study 1 “PIZZA SHOP” and
prepare brief answers to the questions set.
Be ready to discuss your findings at the
seminar session the next week .
 See your SSP (Student Seminar Pack)
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The End
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