Introduction to

Management
Chapter# 1
Stanley Rodrick
Senior Assistant Professor,
Engineering Department of Marketing, FBA,
Management AIUB
 Difference between a Manager and Management

 A Manager is someone who coordinates and oversees the work of other

people so that organizational goals and objectives can be accomplished.

 Management in all business areas and

organizational activities are the acts of
getting people together to accomplish
desired goals and objectives.

 Organizations comprises of people working together and

coordinating their actions to achieve specific goals. 2
 Difference between Objectives and Goals

What are Goals?

 A goal is a short statement of a desired outcome to be accomplished over
a long-time frame, usually three to five years.
 It is a broad statement that focuses on the desired results and does not
describe the methods used to get the intended outcome.
Some common examples of business goals include the following:
 Maximizing profits  Growing revenues
 Increasing efficiency  Providing excellent customer service
 Becoming an industry leader  Creating a brand
 Becoming carbon-neutral 3
 Resources needed by an Organization

Resources
Resources are organizational assets and include:
 People  Machinery  Raw materials
 Information  Skills  Financial capital

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Levels of Management

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 First-line Managers

• Individuals who manage the work of non-

managerial employees.

Classificatio Middle Managers

n of • Individuals who manage the work of first-line

managers.
Managers
Top Managers

• Individuals who are responsible for making

organization-wide decisions and establishing
plans and goals that affect the entire organization.

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Managing for Competitive Advantage

Cost Competitiveness Innovation

Competitive advantage is a position of a

company in a competitive landscape that allows the
company earning return on investments higher than the
cost of investments.

Quality Speed
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 Managing for Competitive Advantage

 Cost Competitiveness
• costs are kept low enough so that you can realize profits and price your products at
levels that are attractive to consumers
• key is efficiency - accomplishing goals by using resources wisely and minimizing
waste
 Quality
• excellence of a product, including its attractiveness, lack of defects, reliability, and
long-term durability
• importance of quality has increased dramatically
• must identify specific elements of quality to correct problems, target needs, and
deliver world-class value

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 Managing for Competitive Advantage

 Speed
 often separates winners from losers in world competition
 speed became a vital requirement in the 1990s since requirement has increased
exponentially
 Innovation
 the introduction of new goods and services
 important to adapt to changes in consumer demands and to new sources of
competition

Best managers and companies delivering all four.

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 Organizational Performance

Measures how efficiently and effectively managers use resources to satisfy

customers and achieve goals.
 Efficiency
A measure of how well resources are used to achieve a goal.
Usually, managers must try to minimize the input of resources to attain the same goal.

 Effectiveness
A measure of the appropriateness of the goals chosen (are these the right goals?), and the
degree to which they are achieved.
Organizations are more effective when managers choose the correct goals and then achieve
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them.
Efficiency and Effectiveness

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Managerial Functions

Planning
Defining goals, establishing strategies to achieve goals, developing plans to
integrate and coordinate activities.
Organizing
Arranging and structuring work to accomplish organizational goals.
Leading
Working with and through people to accomplish goals.
Controlling
Monitoring, comparing, and correcting work.
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Managerial Functions

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 Managerial Functions

 Planning
Planning is the process used by managers to identify and select appropriate
goals and courses of action for an organization.
3 steps to good planning
1. Which goals should be pursued?
2. How should the goal be attained?
3. How should resources be allocated?
The planning function determines how effective and efficient the
organization is and determines the strategy of the organization.

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 Managerial Functions

 Organizing
In organizing, managers create the structure of working relationships between
organizational members that best allows them to work together and achieve
goals.
• Managers will group people into departments according to the tasks
performed.
• Managers will also lay out lines of authority and responsibility for members.
An organizational structure is the outcome of organizing. This structure
coordinates and motivates employees so that they work together to achieve
goals.
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 Managerial Functions

 Leading
In leading, managers determine direction, state a clear vision for employees to
follow, and help employees understand the role they play in attaining goals.
• Leadership involves a manager using power, influence, vision, persuasion,
and communication skills.
• The outcome of the leading function is a high level of motivation and
commitment from employees to the organization.

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 Managerial Functions

 Controlling
In controlling, managers evaluate how well the organization is achieving its
goals and takes corrective action to improve performance.
• Managers will monitor individuals, departments, and the organization to
determine if desired performance has been reached.
• Managers will also take action to increase performance as required.
• The outcome of the controlling function is the accurate measurement of
performance and regulation of efficiency and effectiveness.

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 Managerial Roles and Skills

A role is a set of specific tasks a person performs because of the

position they hold.
Roles are directed inside as well as outside the organization.
There are 3 broad role categories:
1. Interpersonal Role
2. Informational Role
3. Decisional Role

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 Managerial Roles and Skills

 The interpersonal roles involve people (subordinates and persons outside the organization) and other
ceremonial and symbolic duties.
 The three interpersonal roles include figurehead, leader, and liaison.

 The informational roles involve collecting, receiving, and disseminating information.

 The three informational roles include monitor, disseminator, and spokesperson.

 Finally, the decisional roles entail making decisions or choices and include entrepreneur, disturbance
handler, resource allocator, and negotiator.

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Managerial Roles and Skills

Skills Needed at Different Management Levels

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 Managerial Roles and Skills

Skills Approach
 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
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 Operations Management

 Operations is that part of a business organization that is responsible for

producing goods and/ or services.
 Goods are physical items that include raw materials, parts, subassemblies
such as motherboards that go into computers, and final products such as cell
phones and automobiles.
 Services are activities that provide some combination of time, location,
form, or psychological value.

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 Operations Management

 While the operations function is responsible for producing products and/or delivering
services, it needs the support and input from other areas of the organization.
 Business organizations have three basic functional areas, as shown below:

 It doesn’t matter whether the business is a retail store, a hospital, a manufacturing firm,
a car wash, or some other type of business; all business organizations have these three
basic functions.
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 Operations Management

 Finance is responsible for securing financial resources at favorable prices and allocating
those resources throughout the organization, as well as budgeting, analyzing investment
proposals, and providing funds for operations.

 Marketing is responsible for assessing consumer wants and needs, and selling and
promoting the organization’s goods or services.

 Operations is responsible for producing the goods or providing the services offered by
the organization.

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 Operations Management

 To put this into perspective, if a business organization were a car, operations

would be its engine.
 And just as the engine is the core of what a car does, in a business
organization, operations is the core of what the organization does.
 Operations management is responsible for managing that core.
 Hence operations management is the management of systems or processes
that create goods and/or provide services.

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 Operations Management

 Operations and supply chains are intrinsically linked, and no business

organization could exist without both.
 A supply chain is the sequence of organizations - their facilities, functions,
and activities that are involved in producing and delivering a product or
service.
 The sequence begins with basic suppliers of raw materials and extends all
the way to the final customer.

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 Operations Management

Facilities might include warehouses, factories, processing centers, offices,

distribution centers, and retail outlets.
Functions and activities include forecasting, purchasing, inventory
management, information management, quality assurance, scheduling,
production, distribution, delivery, and customer service.

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 Operations Management

The diagram provides another

illustration of a supply chain: a
chain that extends from wheat
growing on a farm and ends with a
customer buying a loaf of bread in a
supermarket.

The value of the product increases

as it moves through the supply
chain.

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 Operations Management

Value-added is the term used to describe the difference between the cost of inputs and the
value or price of outputs.
In nonprofit organizations, the value of outputs (e.g., highway construction, police and fire
protection) is their value to society; the greater the value-added, the greater the
effectiveness of these operations.
In for-profit organizations, the value of outputs is measured by the prices that customers
are willing to pay for those goods or services.
Firms use the money generated by value-added for research and development, investment
in new facilities and equipment, worker salaries, and profits.
Consequently, the greater the value- added, the greater the amount of funds available for
these purposes. Value can also be psycho- logical, as in branding.
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Operations Management

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Operations
Management

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Operations Management

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Operations Management

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Operations Management

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 Scopes of Operations Management

Operations Management includes:

 Forecasting
 Capacity planning
 Scheduling
 Managing inventories
 Assuring quality
 Motivating employees
 Deciding where to locate facilities
 Supply Chain Management (SCM)
 And more . . .

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Operations Interfaces

Industrial Engineering

Distribution Maintenance

Purchasing
Public
Operations Relations

Legal

Personnel

Accounting MIS
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END OF THE CHAPTER

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