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Chapter 7

Chapter 7.doc

Management (MGT)
Course Code
H Laurence

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Chapter 7: Manages and Managing
Management: process of planning, organizing, leading, and controlling business’s financial,
physical, human and information resources in order to achieve its goals
Three main components: managers determine firms goal, develop and strategy for achieving this
goal, design tactical and operational plans for implementing strategy
Planning process has 5 basic steps
oGoals are established
oManagers see If gap exists between goal and actual position
oManagers set steps in order to achieve goals
oPlans that are decided upon are implemented
oEffectiveness of plan is assessed
Organizing: mobilizing the necessary resources to complete a particular task
Leading: guiding and motivation employees to meet the firms objectives
Controlling: monitoring firms performance and if necessary acting to bring it in line with firms
it can show where performance is running better than expected and can serve to provide reward or
reduce cost
Types of Managers
divide managers by their level of responsibility
oSenior Mangers: responsible for firms overall performance and effectiveness and for
developing long range plans for the company. They are responsible to the board of directors
and shareholders of the firm for its overall performance and effectiveness, set general
policies, formulate strategies, oversee all significant decisions, resent the company in
business and govt dealings
oMiddle managers: responsible for implementing the decision made by the top managers
oFirst line managers: those managers responsibilities for supervising the work of employees
Areas of Management
Marketing managers: developing, pricing, promotion and distribution of product or services,
responsible for getting products to buyers, have many marketing managers at various levels, firms
that produce industrial products have less managers while films dealing with consumer products
have many marketing managers
Financial managers: management of firms finances, including its investments and accounting
Operations managers: firms operations are the systems by which it creates goods and services.
Managers are responsible for production control, inventory control, and quality and other stuff
Human resource managers: managers proved assistance to other managers when they are hiring
employees, training them, evaluating their performances and determining there compensenation
level, involved in negations with labour union
Information managers: managers are responsible for designing and implementing various
systems to gather, process and disseminate info
Basic management skills
Effective manages must possess several skills: technical, human relations, conceptual, decision
making and time management
Technical skills: skills associated with performing specialized tasks with a firm, important for first
line managers not very important for top manager
Human relations skills: skills in understanding and getting along with ppl. Newly promoted
managers fail cuz of poor human relation skills
Conceptual skills: ability to think in the abstract, diagnose and analyze different situations and see
beyond situations and see beyond present situations, help managers recognize new market
opportunities, help them analyze outcomes of their decisions, important for senior managers
Decision making skills: ability to define problems and select the best course of action
oDefine the problem, gather facts and identify alternative solutions
oEvaluate each alternative and select the best one
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