Management:

Management consists of the interlocking functions of creating corporate policy and organizing, planning,
controlling, and directing an organization's resources in order to achieve the objectives of that policy.

Manager:

– Someone who works with and through other people by coordinating and integrating
their work activities in order to accomplish organizational goals.

– First-line Managers

– Are at the lowest level of management and manage the work of non-managerial
employees. (supervisors, shift manager etc)

– Middle Managers

– Manage the work of first-line managers. (regional manager, project leader etc)

– Top Managers

– Are responsible for making organization-wide decisions and establishing plans and goals
that affect the entire organization. (VP, CEO, MD etc)

– Efficiency (means)

– “Doing things right”

– Getting the most output for the least inputs

– Effectiveness (ends)

– “Doing the right things”

– Attaining organizational goals

– Planning

– Defining goals, establishing strategies to achieve goals, developing plans to

integrate and coordinate activities

– Organizing

– Arranging work to accomplish organizational goals

– Leading

– Working with and through people to accomplish goals.

 – Controlling

– Monitoring, comparing, and correcting the work

Skill required by manager:

– Technical skills

• Knowledge and proficiency in a specific field

– Human skills

• The ability to work well with other people

– Conceptual skills

• The ability to think and conceptualize about abstract and complex situations
concerning the organization

– Organizational Behavior (OB)

– The study of the actions of people at work; people are the most important asset of an
organization

– Learning Organization

An organization that has developed the capacity to continuously learn, adapt, and change.

• Knowledge Management

 The cultivation of a learning culture where organizational members systematically

gather and share knowledge with others in order to achieve better performance.

• Organizational Culture

 A system of shared meanings and common beliefs held by organizational members that
determines, in a large degree, how they act towards each other.

 “The way we do things around here.”

• Values, rituals, myths, and practices

• Stakeholders

 Any constituencies in the organization’s external environment that are affected by the
organization’s decisions and actions

Adopting a Global Perspective:

 • Ethnocentric Attitude

 The parochialistic belief that the best work approaches and practices are those of the
home country. (Wal-Mart)

• Polycentric Attitude

 The view that the managers in the host country know the best work approaches and
practices for running their business. (Nestle)

• Geocentric Attitude

 A world-oriented view that focuses on using the best approaches and people from
around the globe.

Green Management:

• The recognition of the close link between an organization’s decision and activities and its impact
on the natural environment.

 Global environmental problems facing managers:

 Air, water, and soil pollution from toxic wastes

 Global warming from greenhouse gas emissions

 Natural resource depletion

• Decision

 Making a choice from two or more alternatives.

• The Decision-Making Process

 Identifying a problem and decision criteria and allocating weights to the criteria.

 Developing, analyzing, and selecting an alternative that can resolve the problem.

 Implementing the selected alternative.

 Evaluating the decision’s effectiveness.

• Purposes of Planning

 Provides direction

 Reduces uncertainty

 Minimizes waste.
  Sets the standards for controlling

 Establish coordination

• Strategic Plan

 Apply to the entire organization.

 Establish the organization’s overall goals.

 Seek to position the organization in terms of its environment.

 Cover extended periods of time.

• Operational Plans

 Specify the details of how the overall goals are to be achieved.

 Cover a short time period.

• Long-Term Plans

 Plans with time frames extending from one year.

• Short-Term Plans

 Plans with time frames of one year or less

• Specific Plans

 Plans that are clearly defined and leave no space for interpretation

• Directional Plans

 Flexible plans that set out general guidelines and provide focus, yet allow carefulness in
implementation

• Work Specialization

The degree to which tasks in the organization are divided into separate jobs with each step completed
by a different person.

• Chain of Command

The continuous line of authority that extends from upper levels of an organization to the lowest levels of
the organization and clarifies who reports to whom

• Authority
  The rights inherent in a managerial position to tell people what to do and to expect
them to do it.

• Responsibility

 The obligation or expectation to perform .

• Unity of Command

 The concept that a person should have one boss and should report only to that person.

• Span of Control

 The number of employees who can be effectively and efficiently supervised by a

manager.

• Centralization

 The degree to which decision-making is concentrated at a single point in the

organizations.

• Organizations in which top managers make all the decisions and lower-level
employees simply carry out those orders.

• Decentralization

 Organizations in which decision-making is pushed down to the managers who are

closest to the action.

• Formalization

 The degree to which jobs within the organization are standardized and the extent to
which employee behavior is guided by rules and procedures.

• The Process of Control

 Measuring actual performance.

 Comparing actual performance against a standard.

 Taking action to correct deviations or inadequate standards.

Productivity: the overall output of goods and/or services divided by the inputs needed to generate that
output.

• Output: sales revenues

• Inputs: costs of resources (materials, labor expense, and facilities)

 • Balanced Scorecard

 A measurement tool that uses goals set by managers in four areas to measure a
company’s performance:

• Financial, customer, internal processes, and people/innovation/growth assets

• Corporate Governance

The system used to govern a corporation so that the interests of the corporate owners are protected.

• Changes in the role of boards of directors

• Increased scrutiny of financial reporting

HRM:

Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the organization.

 RECRUITMENT - Process of attracting individuals on a timely basis, in sufficient numbers, and

with appropriate qualifications, to apply for jobs at an organization

 SELECTION - Process of choosing from a group of applicants the individual best suited for a
particular position and the organization

 TRAINING - Designed to provide learners with knowledge and skills needed for their present
jobs

 DEVELOPMENT - Involves learning that goes beyond today's job; more long-term focus

 CAREER MANAGEMENT - Ongoing process whereby individual sets career goals and identifies
means to achieve them

 PERFORMANCE MANAGEMENT - The process employers use to make sure employees are
working toward organizational goals.

 PERFORMANCE APPRAISAL - Evaluating an employee’s current and/or past performance

relative to his or her performance standards

Compensation:

ALL REWARDS THAT EMPLOYEES RECEIVE AS A RESULT OF THEIR EMPLOYMENT

 DIRECT FINANCIAL – PAY THAT AN EMPLOYEE RECEIVES IN FORM OF WAGES, SALARIES,

BONUSES AND COMMISSIONS
  INDIRECT FINANCIAL – (BENEFITS) – ALL FINANCIAL REWARDS NOT INCLUDED IN DIRECT
COMPENSATION SUCH AS PAID VACATIONS, SICK LEAVE, HOLIDAYS AND MEDICAL INSURANCE

 Vision

 A general statement of its intended direction that evokes emotional feelings in

organization members.

 Mission

 Spells out who the company is, what it does, and where it is headed.

 Corporate strategy

 Company-wide

 Identifies the portfolio of businesses that, in total, comprise the company and the ways
in which these businesses relate to each other.

 Competitive strategy

 Identifies how to build and strengthen the business’s long-term competitive position in
the marketplace.

 Functional strategies

 Identify the basic courses of action that each department will pursue in order to help
the business attain its competitive goals.

 Competitive advantage

 Any factor that allows an organization to differentiate its product or service from those
of its competitors to increase market share.

 Superior human resources are an important source of competitive advantage

Job analysis:

• The procedure for determining the duties and skill requirement of a job and the kind of person
who should be hired for it.

• Job analysis produce information for writing job description and job specification.

Job Description:

A list of a job’s duties, responsibilities, reporting relationships, working conditions and supervisory
responsibilities.

Job Specification:
A list of a job’s “human requirements”, that is the requisite education, skills, personality and so on–
another product of a job analysis.

Marketing:

Marketing is a process by which companies create value for customers and build strong customer
relationships to capture value from customers in return.

• Market offerings are some combination of products, services, information, or experiences

offered to a market to satisfy a need or want

• Markets are the set of actual and potential buyers of a product or service

• Marketing management is the art and science of choosing target markets and building
profitable relationships with them

• Market segmentation refers to dividing the markets into segments of customers

• Target marketing refers to which segments to go after.

Market targeting is the process of evaluating each market segment’s attractiveness and selecting
one or more segments to enter.

• A company with limited resources might decide to serve only one or a few special segments or
market niches.

• Most companies enter a new market by serving a single segment; if this proves successful, they
add more segments.

• De-marketing is marketing to reduce demand temporarily or permanently; the aim is not to

destroy demand but to reduce or shift it.

Marketing management orientations:

Production concept is the idea that consumers will favor products that are available or highly affordable

Product concept is the idea that consumers will favor products that offer the most quality, performance,
and features. Organizations should therefore devote its energy to making continuous product
improvements.

Selling concept is the idea that consumers will not buy enough of the firm’s products unless it
undertakes a large scale selling and promotion effort

Marketing concept is the idea that achieving organizational goals depends on knowing the needs and
wants of the target markets and delivering the desired satisfactions better than competitors do.
Societal marketing concept is the idea that a company should make good marketing decisions by
considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and
society’s long-run interests.

The marketing mix is the set of tools (four Ps) the firm uses to implement its marketing strategy. It
includes product, price, promotion, and place.

CRM:

• The overall process of building and maintaining profitable customer relationships by delivering
superior customer value and satisfaction.

• Supply chain is a channel that stretches from raw materials to components to final products to
final buyers

• CLV (Customer Lifetime Value) is a prediction of all the value a business will derive from their
entire relationship with a customer.

• Customer equity is the total combined customer lifetime values of all of the company’s
customers.

• The business portfolio is the collection of businesses and products that make up the company.

• Market penetration is one of the four alternative growth strategies in the Ansoff Matrix. A
market penetration strategy involves focusing on selling your existing products or services into
your existing markets to gain a higher market share.

• Market development ─ Companies can grow by developing new markets for existing products.
For example, Starbucks is expanding rapidly in China, which by 2015 will be its second-largest
market, behind only the United States.

• Diversification ─ Through diversification, companies can grow by starting or buying businesses

outside their current product/markets. For example, Starbucks is entering the “health and
wellness” market with stores called Evolution By Starbucks.

• Product development, also called new product management, is a series of steps that includes
the conceptualization, design, development and marketing of newly created or newly rebranded
goods or services.

• Positioning is arranging for a product to occupy a clear, distinctive, and desirable place relative
to competing products in the minds of the target consumer.

• Thus, effective positioning begins with differentiation—actually differentiating the company’s

market offering so that it gives consumers more value.

4 ps:
Product means the goods-and-services combination the company offers to the target market.

Price is the amount of money customers must pay to obtain the product.

Place includes company activities that make the product available to target consumers.

Promotion refers to activities that communicate the merits of the product and persuade target
customers to buy it.

 Return on marketing investment (or marketing ROI) is the net return from a marketing
investment divided by the costs of the marketing investment.