Planning

Organizing

Leading

Controlling

• STRENGTHS
• WEAKNESSES
• OPPORTUNITIES
• THREATS 

To analyzes the organization's strengths and weaknesses, and the opportunities and threats it faces, usually in that order.

Policies  - are broad guidelines for action

strategies  - determine the best way to use resources

Define: Tactical planning

Example

the process of developing detailed, short-term statements about what is to be done, who is to do it, and how

If the strategic plan of a truck manufacturer, for example, is to sell more trucks in the South, the tactical plan might be to fund more research of southern truck drivers' wants and needs, and to plan advertising to reach them

Strategic

Tactical

Operational

Contingency

Abbreviation Translation

CEO

COO

CFO

CIO

CKO

chief executive officer (CEO)

chief operating officer (COO)

chief financial officer (CFO)

chief information officer (CIO)

chief knowledge officer (CKO)

1. Technical skills -  the ability to perform tasks in a specific discipline or department

2. Human relations skills

3. Conceptual skills  - let the manager picture the organization as a whole and see the relationships among its various parts.

Top: Conceptual, Human Relations, Technical

Middle: Tech/human/coneptual are equal

Supervisors: Technical, Human Relations, Conceptual

Communicate a vision and rally others around that vision

Establish corporate values

Promote corporate ethics

Embrace change

Stress accountability and responsibility.

involves managers and employees working together to make decisions.

Generally, the most effective and with happiest employees

managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives

best when used with professionals and creative types

1. Establishing clear performance standards.

2. Monitoring and recording actual performance or results.

3. Comparing results against plans and standards.

4. Communicating results and deviations to the appropriate employees.

5. Taking corrective action when needed and providing positive feedback for work well done.

external customers - Dealers, who buy products to sell to others, and ultimate customers, who buy products for their own personal use.

internal customers - Individuals and units within the firm that receive services from other individuals or units.

measures financial progress, return on investment, and all else that needs to be managed for the firm to reach its ultimate goal, profits

Unity of command - Each worker is to report to one, and only one, boss.

Hierarchy of authority - All workers should know to whom they report.

Division of labor - Functions are to be divided into areas of specialization such as production, marketing, and finance.

Subordination of individual interests to the general
interest - Workers are to think of themselves as a
coordinated team with goals more important than the goals of individual workers.

Authority - Managers have the right to give orders and the power to enforce obedience.

Degree of centralization - The amount of decision-making power vested in top management should vary by circumstances.

Clear communication channels

Order - Materials and people should be placed and maintained in the proper location.

Equity - A manager should treat employees and peers with respect and justice.

Esprit de corps - A spirit of pride and loyalty should be created among people in the firm.

• Job descriptions.

• Written rules, decision guidelines, and detailed records.

• Consistent procedures, regulations, and policies.

• Staffing and promotion based on qualifications.

(1) centralization versus decentralization
(2) span of control

(3) tall versus flat organization structures
(4) departmentalization.

ADVANTAGES
• Reduced costs
• More responsiveness to customers
• Faster decision making
• More empowerment

DISADVANTAGES

• Fewer chances for advancement
• Overworked managers
• Loss of control
• Less management expertise

ADVANTAGES

1. Employees can develop skills in depth and progress within a department

2. The company can achieve economies of scale by centralizing all the resources it needs and locate various experts in that area.

3. Employees can coordinate work within the function, and top management can easily direct and control various departments' activities.

Disadvantages
1. Departments may not communicate well.

2. Employees may identify with their department's goals rather than the organization's.

3. The company's response to external changes may be slow.

4. People may not be trained to take different managerial responsibilities

5. Department members may engage in groupthink and may need input from outside to become more creative

Product

Function

Customer Group

Geographic Location

Process

(1) line organizations,

(2) line-and-staff organizations,

(3) matrix-style organizations

(4) cross-functional self-managed teams

Define: Line Organization

what does it not have

direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with everyone reporting to only one supervisor

no specialists who provide managerial support.

too inflexible

few specialists or experts to advise people
lengthy lines of communication

minimize the disadvantages of simple line organizations,

have both line and staff personnel

Line personnel are responsible for directly achieving organizational goals

Staff personnel advise and assist line personnel in meeting their goals

Line personnel have formal authority to make policy decisions.

Staff personnel have authority to advise line personnel and influence their decisions, but they can't make policy changes themselves.

Advantages:

• managers have flexibility in assigning people to projects.
• It encourages interorganizational cooperation
• It can produce creative solutions
• It makes efficient use of organizational resources.

disadvantages:
• It's costly and complex.
• It can confuse employees about where their loyalty belongs
• It requires good interpersonal skills as well as cooperative employees and managers
• It may be only a temporary solution to a long-term problem.

the present moment or the actual time in which an event takes place.

A heart-beat monitor monitors the heart in real time

compares an organization's practices, processes, and products against the world's best.

Instructors definition: Looking for and learning from best practices, wherever tthey may exist.

formal organization - details lines of responsibility, authority, and position. It's the structure shown
on organization charts.

 informal organization - the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization. Not shown on charts

American manufacturers have begun to emphasize:

 a.   Focusing on customers.

b.   Maintaining close relationships with suppliers.

c.   Practicing continuous improvement.

d.   Focusing on quality.

e.   Saving on costs through site selection.

f.    Relying on the Internet to unite companies.

g.   Adopting new manufacturing techniques.

SERVICE ECONOMY

(1) to build and deliver products in response to the  demands of the customer at a scheduled delivery time

(2)  to  provide  an  acceptable  quality level

(3) to provide everything at the lowest possible cost.

computer-aided  design

computer-aided  manufacturing

 computer-integrated manufacturing

the  production  of  goods  using  less  of  everything  than in  mass  production

•  They  take  half  the  human  effort.

•  They  have  half  the  defects  in  the  finished product  or  service.

•  They  require  one-third  the  engineering effort.

•  They use half the floor space for the same output.

•  They  carry  90  percent  less inventory.

The key reason manufacturers move their plants

 assembly-line layout - workers  do only a few tasks at a time

modular layout - teams  of workers  combine  to  produce  more  complex  units  of  the  final  product. 

fixed-position layout - allows  workers  to  congregate  around  the product  to  be  completed.

process layout - similar  equipment  and  functions  are
grouped  together .

1.  The  need  to  inspect  work  required  extra people  and  resources .

2.  If  an  error  was  found,  someone  had  to correct  the  mistake  or  scrap  the product -  costly.

3.  If  the  customer  found  the  mistake,  the can be dissatisfied and not buy again

 Plan, Do, Check, Act (PDCA).

to  find  potential  errors  before  they  happen.

the  common  name  given  to quality  management  and  assurance  standards

Must meet to operate in EU

1)  analyzing  and  sequencing  tasks  that
need  to  be  done

(2)  estimating the  time needed to complete each task

(3) drawing  a  PERT  network  illustrating  the  information  from  steps  1  and  2

( 4)  identifying  the  critical  path.

Quality function deployment (QFD)

a process of linking the needs of end users (customers) to design, development, engineering, manufacturing, and service functions.

a bar graph showing production managers what projects are being worked on and what stage they are in at any given time.

loss  of  intellectual capital

decreased morale  of  remaining  workers

increased employee stress

decreased  customer  service

interrupted  product  development

poor  reputation

describe employees' level of motivation, passion,  and  commitment

Engaged employees work with passion  and  feel a connection  to  their company.

Disengaged workers have essentially checked out; they plod through their day putting  in  time,  but  not  energy.

  time

methods

rules  of  work.

1. Physiological needs:  Basic survival  needs,  such as  the  need  for food,  water , and shelter.

2. Safety needs: The need to feel secure at work and  at home .

3. Social needs: The  need to feel loved, accepted, and part of the group.

4. Esteem needs: The need for recognition and acknowledgment  from  others, as  well  as  self-respect and a  sense  of  status  or  importance .
5. Self-actualization needs: The need to develop to  one's fullest potential.

•  The average person dislikes work  and  will avoid it  if  possible

.
•  Because  of  this dislike,  workers  must  be  forced, controlled, directed,  or  threatened  with  punishment  to  make  them put  forth  the  effort  to  achieve  the  organization's goals.

•  The  average  worker  prefers  to  be  directed, wishes  to avoid responsibility,  has  relatively little  ambition,  and wants  security.

•  Primary  motivators  are  fear  and  money.

•  Most people like work it, is as natural as play or rest.

•  Most  people  naturally  work  toward  goals  to which  they  are  committed.

•  A person's commitment to goals  depends on the perceived rewards for achieving them.

•  Under  certain  conditions,  most  people  not  only  accept  but  also seek responsibility.

•  People  are  capable  of  using  a relatively  high  degree  of  imagination , creativity,  and  cleverness  to  solve  problems

•  In  industry,  the  average pert;on's  intellectual  potential  is only  partially realized.

•  Each worker is stimulated by a reward unique to  him or her

short-term employment

individual decision malting

individual responsibility for the outcomes  of decisions

  rapid  evaluation  and  promotion

  explicit control mechanisms

specialized  career  paths

  segmented  concern  for employees.

included lifetime employment

consensual decision making

collective responsibility for the outcomes  of  decisions

slow evaluation and promotion

implied control mechanisms

nonspecialized  career  paths

  holistic  concern  for employees

 long - term  employment

collective  decision  making,

individual responsibility for the outcomes  of  decisions,

slow  evaluation  and  promotion, 

moderately specialized  career  paths

  holistic  concern  for employees  (including  family)

 Helping  means  working  with  the  subordinate  and doing  part  of  the  work if  necessary. 

Coaching  means  acting  as a  resource-teaching , guiding,  and  recommending-but  not  participating  actively  or  doing  the  task.

Expantancy Theory:

3  questions asked before  committing  their  maximum  effort

Can  I  accomplish  the  task?

If  I  do  accomplish  it, what's  my  rewdrd?

Is  the  reward  worth  the  effort?

1.  Determine  what  rewards  employees  value .

2.  Determine  each  employee's  desired  performance  standard .

3.  Ensure  that  performance  standards  are  attainable.

4.  Guarantee  rewards  tied  to  performance .

5.  Be  certain  that  employees  consider  the  rewards  adequate .

1.  Skill variety -The  extent  to  which  a  job  demands  different skills.

2.  Task identity - The  degree  to  which  the  job requires  doing  a  task  with  a visible  outcome  from  beginning  to  end.

3.  Task significance - The  degree  to  which  the  job  has  a  substantial  impact on  the  lives  or  work  of  others  in  the  company.

4.  Autonomy - The  degree  of  freedom,  independence ,  and  discretion  in  scheduling work  and  determining  procedures.

5.  Feedback - The  amount  of  direct  and  clear
information  given  about  job  performance.

Create  an organizational culture that rewards listening.

Train  supervisors  and  managers to listen

Use  effective questioning techniques

Remove barriers to open communication.

Avoid vague  and  ambiguous communication

Make  it  easy to  communicate

Ask  employees  what  is important  to  them.

 high-context culture - workers  build  personal  relationships  and develop  group  trust  before  focusing  on  tasks. 

low-context culture - workers
often  view  relationship  building  as  a  waste  of  time  that  diverts  attention  from
the  task.

 (1)  organizations'  recognition  of  employees  as their  ultimate  resource

(2)  changes  in  the  law  that  rewrote  many  traditional  practices.

 requires employers  to  give  applicants  with  physical  or  mental  disabilities the  same  consideration  for  employment  as  people  without  disabilities

  making  "reasonable  accommodations " for  employees  with  disabilities,  such  as  modifying  equipment  or widening  doorways.

1.  Preparing a  human  resource inventory  of  the organizations employees

2.  Preparing a job analysis.

3.  Assessing future  human  resource demand

4.  Assessing future labor supply

5.  Establishing a strategic plan

1.  Obtaining complete application forms.

2.  Conducting initial and follow-up interviews.

3.  Giving employment tests

4.  Conducting  background  investigations

5.  Obtaining results from physical exams

6.  Establishing trial (probationary) periods

 part-time  workers  (anyone  who works  1  to  34  hours  per  week), 

temporary  workers  (workers  paid  by  temporary  employment  agencies), 

seasonal  workers,  independent  contractors, interns,  and  co-op  students.

  Training  focuses  on  short-term  skills

development  focuses  on long-term  abilities.

(1)  assessing  organization  needs and  employee skills  to  determine  training  needs

(2)  designing  training  activities  to  meet  identified  needs

(3)  evaluating  the  training's effectiveness.

On-the-job coaching

Understudy positions

Job rotation

Off-the-job courses and training

(1)  grooming  women  and  minorities for  management  positions  isn't  about  legality, morality, or  even  morale  but rather  about  bringing  more  talent  in  the  door,  the  key  to  long-term  profitability

(2)  the  best  women  and  minorities  will  become  harder  to  attract  and retain,  so  oompanies  that  commit  to  development  early  have  an  edge

(3)   having  more  women  and  minorities  at  all levels lets  businesses  serve  their increasingly female  and  minority  customers  better.

1.  Establishing performance standards

2.  Communicating those standards

3.  Evaluating performance

4.  Discussing results with employees.

5.  Taking corrective action

6.  Using the results  to  make decisions

 rewards  the  growth  of  both  the  individual  and the  team. 

Base  pay  is  raised  when  team  members  learn and apply  new  skills.

Salary

Hourly Wage

Piecework

Comission

Bonus Plans

Proft-sharing

Gain-sharing

Stock Options