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Chapter 6

Chapter6


Department
Rotman Commerce
Course Code
RSM100Y1
Professor
Michael Szlachta
Chapter
6

Page:
of 8
RSM100-Ch6: Strategy
6-1.The management process
Management: the process of planning, organizing, leading 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
Management:
1.Planning:
- determining the goals
-developing a strategy for achieving them
Steps---1.Goals are established for the organization
2.Identify gap
3.Develop plans (manager)
4.Implement plans
5.the effectiveness of the plan is assessed
Which plan is useful? ---Prediction markets: creating a market
where people can buy shares in various answers to important
questions that need to be answered
Hierarchy
1). Strategic plans:
-top manager
-reflect decisions about: resource allocation, company priorities
and the steps needed to meet strategic goals
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2). Tactical plans:
-upper and middle management
-shorter-range plans concerned with implementing specific
aspects of the strategic plans
3). Operational plans:
-middle and lower-level managers
-set short-term targets for daily, weekly or monthly
performance
2.Organizing: mobilizing the resources that are required to complete a
particular task
E.g. Hewlett-Packard: lost competitive edge
3.Leading (directing): involves the interactions between managers and their
subordinates as they both work to meet the firms objectives
4.Controlling: the process of monitoring a firms performance to make sure
that it is meeting its goals
6-2. Types of Managers
Levels of management
1.Top managers: responsible for a firms overall performance and
effectiveness and for developing long-range plans for the company (COO,
CEO, CFO)
2.Middle: implementing the decisions made by top managers
3.First-line managers: supervising the work of employees
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Areas of management
1. Human resource managers: employees
2. Operations managers: production systems (create goods and services)
3. Information managers: gather, process and disseminate information
(CIO)
4. Marketing managers: getting products and services to buyers
5. Financial Managers: investments and accounting function
6-3. Basic management skill
Technical skills
-important for first-line managers
Human relations skills
-important at all level, probably most important for middle managers
Conceptual skills
-important at top managers
Time management skills
4 main things waste time: paperwork, telephone, meetings, email
Decision-Making skills
-rational decision-making process:
1. Recognizing and defining the decision situation
2. Identifying alternatives
3. Evaluating alternatives
4. Selecting the best alternative
5. Implementing the chosen alternative
6. Following up and evaluating the results
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