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Lecture 8

MGTA01 Lecture 8 - Managers and Managing Notes (NEAR VERBATIM).docx

10 Pages
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Department
Rotman Commerce
Course Code
RSM219H1
Professor
Bill Mc Conkey

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MGTA01 – LECTURE 8 – MANAGERS AND MANAGING 4 FUNCTIONS OF THE MANAGEMENT PROCESS 1) Planning – There are Different layers of planning  At the top, there is the senior mgmt. team (chief executive officer [CEO], chief operating officer [COO], chief financial officer [CFO], etc.) o They are focused on setting the longer-term plans. Once these plans have been set, there are other levels of planning that are necessary to be managed by other layers of the firm—middle mgmt. layer  Middle Mgmt Layer o Ppl who will take the senior mgmt. plans and turn them into monthly, yearly, and maybe a couple year out plans on how to execute in a way consistent with those strategic plans.  e.g., manufacturing company  senior says they want to expand manufacturing base in a certain country. They will set the plans, create the budgets, create the requirements (i.e., what kind of plant is it? What capacity will it have? When will it be built? How will we raise the money?  these are fairly senior level plans around this initiative. o The next level will be sort of middle level mgmt. planning  How do we staff it? Where do we get the ppl needed? How do we support the plant? What are some of the manufacturing goals, say monthly, quarterly, annually, to come out of those plants?  these will be handled by middle managers, such as dept heads; they are not executives  Lowest level plans (i.e. daily, weekly, monthly plans)  How many units should we be completed? What quality levels? How do we get people trained/hired?  Executed by 1 and 2 level managers (lower level) and supervisors of the firm and they make sure the work is getting done and meeting the requirements set out by the higher level managers. 2) Organizing  Organizing the resources to work together most effectively and efficiently  Should we build the products or should we buy them from outsourcing companies that make modules that we can buy from them and incorporate them into our own products?  Called the make vs. buy decision. o e.g., automobile companies ► Today, the avg auto company does not manufacture a number of components of their product. Instead, they usually design the product, market the product, and assemble the product (sometimes with a few of its own components, particularly the engine). Usually the company is buying its wheels, windows, its little components (e.g., electronics) from 3 party manufacturers that focus on those sorts of products and build them best and most cheaply. Then they are supplied to the car manufacturers who then assemble those things in their assembly plants into a finished vehicle  Do we organize our business based on building every single product ourselves or NO do we just build certain types and let a 3 party partners build the others.  Other types of organizing are organizing the labour force within. o e.g., Hewlett-Packard  changes took place over 10 years. It used to be a confederation of small business units—fairly autonomous, not really working together all that well (i.e. someone working over at video capture here at HP wouldn‘t have anything to do with HP‘s work in printing. They started realized that that organizational strategy was no longer relevant or best suited to the new emerging world that is so networked. It realized that it needed to pull those businesses together into a little more cohesive organization  Managers need to make these decisions: How do we organize? + When is it necessary to evolve the current organization methods? 3) Leading  Both the same and very different from the concept of just managing o When we think of managing, we‘re thinking often of the 4 point (controlling) which is making sure the job gets done.  Leading tends to be more about motivation and getting ppl to buy in  Leading is about telling the story of your company TO YOUR COMPANY, TO YOUR EMPLOYEES. Giving them a sense of the mission under which you as the executive is operating. Helping them to see why their role matters and helping them to understand that they are on a good place for their careers right now, this is the company they should be with, this is a company where they should work a little extra hard and care about the quality of what they are doing.  It‘s about getting ppl behind the mission of the company and to truly say YES! o Think about how important this is? o First of all, you just want to do right by your employees. You want them to have a sense of accomplishment and feel a sense of belonging. o Secondly, if you engender those feelings, you‘ll also start to realize that they need to be monitored less. It‘ll be a less costly job to make sure they are doing things well and efficiently  When you put these things together, you realize that it‘s not just about managing the job it‘s about leading ppl as well. 4) Controlling  It is important that the mgmt. team control the uses of the resources of the firm. Everything you do in a company costs money. It‘s important to recognize that a company needs to operate effectively and efficiently and that you are not wasting money while you are getting the job done.  Companies that operate more effectively and efficiently last longer and they are more successful. There is more to give around to successful employees. There is more opportunities for growth and expansion duties and making more money for yourself.  It is necessary.  The controller  someone who is looking at budgets, at the use of labour but also the use of the resources of the firm and making sure that those uses line up with the mission of the firm (e.g., making sure you get the best price when you are going to bid for a component of your product, making sure that with labour if they are using overtime that it‘s absolutely necessary, making sure that people are showing up for work when they need to and staying for as long as they need to). LEVELS OF MANAGEMENT 1) Senior Management  Responsible for the company‘s overall performance and for developing strategy and long range plans (2-5 years out)  Includes the roles of CEO, COO, CFO  Works to define the mission of that company and the strategic goals of that company  When defining a strategy/mission it‘s important for the company, the senior executives think relatively broadly and think out in time because you don‘t want too narrow a mission and one that is just defined by what you might succeed at in the next 6-12 months  First of all, you have to define the mission. What do you really do for a living? (e.g., is it about electronics or making the home a smarter home?) What is really at the heart of what they want to accomplish and what they are resourced to accomplish? o Connected to the mission is the long-term goals/plans for the company  i.e. looking out 3-5 years and saying: What can we accomplish that no one else can? Then, set those long-term goals and then the strategies in place to help in achieving those goals ► The long-term goals may be, for example, we want to be #1 in eBooks around the world in 3 years  this is a goal. ► The next step would be creating a strategy to meet this goal done by senior mgmt. ► Who do we hire? Do we partner up with certain universities for the technology? Where do we set up manufacturing? - These large, usually investment-intensive decisions are necessary to set the company on course to achieve those long-term goals  Long-term planning tends to be looked at usually twice a year. Senior mgmt. would meet up and evaluate this level of planning and the progress. 2) Middle Management  Responsible for implementing the strategies, policies and decisions of senior mgmt.  Can be a few different levels within the company  Interesting/challenging role in that they need to look up and look down at the same time  They need to understand the strategies and long-term plans set forth by the executive team/senior level mgmt. and then they have to look down and see what kind of team they have and the team they need in terms of employees and junior managers to find ways to create ways to enact and achieve the strategies set out by senior mgmt.  e.g., if senior mgmt. said we need to buy components for this area of our product and no longer build them  that would be a strategic senior executive decision o Middle mgmt. would be busy finding those partners, training those partners, developing contracts with those partners, and starting to build those products through those partners.  e.g., if senior mgmt. said they want to be in 20 new countries in 3-5 years o Middle managers will also start to send their teams out to investigate how to do that? Where should they go first? What makes best sense for our product line? o They will start to actually engage those decisions and start growing the business out geographically in line with the goals of senior mgmt.  e.g., senior mgmt. might say we need to reduce our workforce by 20% in the next 3 years o Middle mgmt. would be tasked with figuring out how to automate more of the functions of the business or how to outsource things to different companies to meet that objective of 20% reduction. 3) First-Line Management  e.g., supervisors, office managers, group or team leaders  Main role is to supervise the work of the employees  People have assumed these roles because they were good at what they were doing as employees.  e.g., customer service desk worker  for the last 2-3 years they were really good at handling customer service calls. If you‘re one of the middle managers running the support departments, you look at the employee and you say ―You know what, I‘d like you to become the call center supervisor because I want you to influence how everyone else is answering their calls.‖  As the middle manager, you would elevate them to a supervisory role. o This is great because you can in a way influence the next generation of your staff. o Sometimes, however, it can work against you because you just lost your best performer. That performer may have been best at their task, but when they try to become a manager and explain and teach and motivate people to do the same, sometimes they are not as good as that as you would have thought. ► This is where it takes some thought and effort on the middle manager‘s part where they need to say: I need to help this person transition from an employee role to a supervisory role. I need to get them trained and practiced and supported and I need to work with them and it will take a few months before they engage effectively in this new role  First-line managers play a large role in the control function in terms of supervising the actions of the employees and making sure they are showing up, making sure they are doing an effective and efficient job and making sure quality is not being left behind and making sure customers are being satisfied. o Sometimes an important part of supervisors‘ work is to call customers and ask ―How is it going? How are our employees treating you?‖ and learning so we can do a better job each day.  Ultimately, first line managers make sure the work is getting done by the employees AREAS OF MANAGEMENT - They are the department are
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