Professional Documents
Culture Documents
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 organizations
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 & CEOs
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Management Going Green
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Decision Making
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The Realities of Management