RSM100Y1 Chapter Notes - Chapter 6: Strategic Management, Firstline, Time Management
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CH.6 – MANAGING THE BUSINESS ENTERPRISE
Corporate Culture: the shared experiences, values, norms, and ethical stance that characterize an org.
-managers can use that knowledge to be more effective in leading and motivating employees.
WHO ARE MANAGERS?
All perform the same basic fxn's, are responsible for many of the same tasks, and have many of
the same responsibilites. All plan, organize, direct, and cotrol day-to-day operations
o Management = process of planning, organizing, leading, and controlling (interrelated) an
enterprise's financial, physical, human, and info resources to achieve the organization's
goals of supplying various products /services
o Distinction b/w management efficiency and management effectiveness
Efficiency: achieving the greatest level of output w/ a given amt. of input
Effectiveness: achieving the organizational goals that have been set
Planning: process of determining the firm's goals and developing a strategy for
Step 1: set up goals (indicate what results are desired) for the org.
Step 2: managers identify whether a gap exists b/w the company's desire and
Step 3: managers develop plans (indicate how goals will are to be achieved) to
achieve desired goal.
Step 4: plans that have been decided upon are implemented
Step 5: effectiveness of plan is assessed.
Prediction markets: helps managers assess future possibilities.--> creating a market
where ppl can buy "shares" in variouis answers to important ?'s that need to be
A hierarchy of plans: plans can be made on 3 gral levels; each level reflecting plans for
which managers at that level are responsible. It's a hierarcyb/c implementing plans is
practical only when there's a logical flow from 1 level to the next
Strategic plans: set by top managemetn; reflect decisions about resource
allocations, company priorities, and the steps needed to meet strategic goals
Ex. GE's plan to be #1 or #2 in all the markets in which it competes in
Tactical plans: shorter-range plans concerned w/ implementing specific aspects
of the company's strategic plans. They typically involve upper and middle
Ex. Cocacola's plan to increase sales in Europe by building European
Operational plans: plans developed by middle and lower-level managers that
set ST targets for daily, weekly, or monthly performance
Ex. McDonald's when it stipulates how Bic Macs are to be cooked,
warmed, and served
o ORGANIZING: mobilizing resources that are required to complete a particular task
Leading (or directing): involves the interactions b/w managers and their subordinates
as they both work to meet the firm's objectives
Leaders go beyond only giving orders… they attempt to guide and motivate
employees to work in the best interests of the organization.
Controlling: process of monitoring a firm's performance to make sure that it is
meeting its goals
Control can also show where oergormance is better than expected and thus
serve as a basis for providing rewards or reducing costs
o TYPES OF MANAGERS
What do managers do? --> work at unrelenting pace; their activieties are
characterized by brevity, variety, and fragmentation; have a preference for "live"
action and emphasize ork act. Athat're current, specific, and well defined; are
attracted to the verbal media
Levels of Management
Top Manager: those managers responsible to the board of directors and
shareholders for a firm's overal performance and effectiveness and for
developing long-range plans for the company --> common titles: CEO, COO, CFO
Middle Manager: those managers responsible for implementing the decisions
made by top managers --> ex. Plant manager, operations manager, division
First-line manager: those responsible for supervising the work of employees -->
transit supervisor mointors bus schedules, passenger safety, etc.. Supervisor,
office manager, group leades
o AREAS OF MANAGEMENT
In any large company, the 3 types of managers work in a variety of areas :
Human resource managers: provide assistance to other managers when the're
hiring employees, training them, evaluating their performance, and determining
their compensation level. In unionized companies they're also involved in
negotiating w/ the union
Operations Managers: responsible for the production systems that create
goods/services --> production control, inventory control, and quality control,
Information mangers: responsible for designing and implementing systems that
gater, process, and disseminate info
Marketing managers: responsible for getting products and services to buyers.
Large companies will have three distinct levels of managers for this division
Financial managers: plans and oversee a companies financial resources. This
also 3 distinct levels of managers for this division.
o BASIC MANAGEMENT SKILLS
Technical skills: skills associated w/ performing specialized tasks w/in a company.
Especially important for 1st line managers. They spend considerable amt of time
helping employees solve work-related problems, monitoring their performance, and
training them in > efficient work procedures.
Human relations skills: skills that enable managers to understand and get along w/
Significantly > important for middle managers since they bridge b/w top
managers, first-line managers and managers form other areas of the
Conceptual skills: person's ability to think tin the abstact, to diagnose and analyze diff.
situation, and see beyond the present situation. Top managers depend most on their
conceptual skills which help them recognize new market opportunties/ threats