Textbook Notes (234,615)
CA (159,219)
UTSG (11,351)
RSM100Y1 (432)
Chapter 6

Chapter 6 summary

8 pages78 viewsWinter 2011

Department
Rotman Commerce
Course Code
RSM100Y1
Professor
Michael Szlachta
Chapter
6

This preview shows pages 1-2. to view the full 8 pages of the document.
Chapter 6
Management the process of planning, organizing, leading, directing, and controlling an
enterprises financial, physical, human, and information resources to achieve the
organizations goals of supplying various products and services.
Efficiency achieving the greatest level of output with a given amount of input
Effectiveness achieving the organizational goals that have been set
Planning the process of determining the firms goals and developing a strategy for
achieving them.
Step 1: goals are established for the organization
Step 2: managers identify whether a gap exists between the company’s desire and
actual position
Step 3: managers develop plans to achieve the desired goal
Step 4: the plans that have been decided upon on implemented
Step 5: the effectiveness of the plan is assessed
Prediction markets involves creating a market where people can buy shares in various
answers to important questions that need to be answered
20 employees bought shares based on how many defects they thought they would find
in a new product, there was a prize for the winner
Strategic plans set by top management, reflect decisions about resource allocations,
company priorities, and the steps needed to meet strategic goals
Tactical plans shorter-range plans concerned with implementing specific aspects of the
company’s strategic plans
Operational plans set short-term targets for daily, weekly, or monthly performance.
Organizing involves mobilizing the resources that are required to complete a particular
task
Leading involves the interactions between managers and their subordinates as they both
work to meet the firms objectives
Controlling the process of monitoring a firms performance to make sure that it is meeting
its goals.
www.notesolution.com
You're Reading a Preview

Unlock to view full version

Only half of the first page are available for preview. Some parts have been intentionally blurred.

If, for example, a company wants to increase sales by 20 percent over the next 10
years, then an appropriate standard might be an increase of about 2 percent a year.
Managers then measure actual performance against standards. If the two amounts
agree, the organization continues along its present course. If they vary significantly,
however, one or the other needs adjustment.
Levels of Management
Top managers the small number of executives that guide the fortunes of companies
Top managers are responsible to the board of directors and shareholders of the firm
for its overall performance and effectiveness.
They set general policies, formulate strategies, oversee significant decisions, and
represent the company in its dealings with other businesses and government
Middle managers occupy positions between top and first-line managers. Titles such as
plant manager, operations manager, and division manager are typical of middle-
management jobs.
Responsible for implementing the strategies, policies, and decisions of the top
managers
First-line managers spend most of their time working with and supervising the employees
who report to them.
Areas of Management
Human resource managers provide assistance to other managers when they are hiring
employees, training them, evaluating their performance, and determining their
compensation level.
Operations managers are responsible for the production systems that create goods and
services.
Production control, inventory control, and quality control, among others
Information managers are responsible for designing and implementing systems that
gather, process, and disseminate information.
Dramatic increases in both the amount of information available to managers and the
ability to manage it have led to the emergence of this important function.
www.notesolution.com
You're Reading a Preview

Unlock to view full version

Only half of the first page are available for preview. Some parts have been intentionally blurred.

Marketing Managers are responsible for getting products and services to buyers
Financial managers to plan and oversee its financial resources
Basic Management Skills
Technical skills skills associated with performing specialized tasks within a company
Important for first-line managers because they will be spending most of their time
with employees
Technical skills become less and less important as you move up the corporate ladder
Human Relations skills enable managers to understand and get along with other people
Human relation skills are most important for middle managers because they act as
bridges between top managers, first line managers, and managers from other areas
of the firm
Conceptual skills refer to a persons ability to think in the abstract, to diagnose and
analyze different situations, and to see beyond the present situation.
Helps managers to recognize new market opportunities
Most needed by top managers
Time management skills refer to the productive use that managers make of their time
Paperwork: some managers spend too much time deciding what to do with letters
and reports
The telephone: experts estimate that managers are interrupted by the telephone too
often
Meetings: many managers spend as much as four hours per day in meetings
Email: more and more managers are also relying heavily on email and other forms of
electronic communication
Decision making skills
Decision making choosing one alternative from among several options
Decision making skills critical for managers because decision making affects all the
functions of management and all managers at all levels in all organizations
Rational Decision making process
www.notesolution.com
You're Reading a Preview

Unlock to view full version


Loved by over 2.2 million students

Over 90% improved by at least one letter grade.