MGMT 100 Final
Chapter 1
· Management: A set of activities designed to achieve organizations’ goal by using the available resources effectively and efficiently in a changing environment.
· Organization: Is a group of individuals working together to achieve a common goal.
· Resources: People, equipment, finances, and data used by the organizations in order to achieve their common goal.
· Stakeholders: All the individual that can affect or is affected by the organization’s goals or means of reaching the goal.
· Profit: The gains collected by the company after reaching their goal.
o Gross= total profit – cost of goods (i.e. sold)
o Net= Total profit – Total cost
· Function of manager:
o Planning: The process of deciding a common goal of the organization, and the process of reaching the common goal
o Organizing: A set of activities involved in designing jobs for employees, putting together these jobs under department, and developing working environment between everyone within the organization.
o Leading: Influencing and motivating other’s activities to reach the common goal
o Controlling: Ensuring that everything is going according to the plan to reach the common goal.
· Management Roles: a set of similar activities that serve a specific purpose to the organization
o Interpersonal: Involves interacting with others within or outside the organization to gather information to help make decisions within an organization.
§ Figurehead: attending important events
§ Liaison: coordinating production schedule
§ Leadership: maintaining the status of employee’s work
o Informational: Working on the data/information collected in implementing in the organization. Activities include reporting, preparing data analysis, briefing, emailing, websites etc
§ Monitor: making sure everything happening in the company is legal
§ Disseminator: connection between employees and the organization
§ Spokesperson: Representation of the organization (for consumers)
o Decisional: Dealing with allocation of resources
§ Entrepreneur: Deciding how to reach the goal
§ Disturbance handler: work when there is change in the external environment
§ Resource allocator: distribution of the resources available to different departments
§ Negotiator: Reaching agreements with different groups within the organization, and also with other agencies and the company
· Management Skills:
o Interpersonal Skills: communications, listening, taking control/responsibility
o Technical Skills: having the specific knowledge and ability to work on technology, on taxes, on accounting systems, on human resources etc
o Conceptual Skills: Work on the information the organization has to make accurate decisions in order to reach the goal effectively and efficiently
o Job Knowledge: similar to technical skills
o Oral communication: Good communication skills
o Persuasiveness: while dealing with other companies, or other ideas for the company
o Problem analysis: Ability to come up with solution
o Coopertiveness
o Tolerance of stress
o Negotiation
o Assertiveness: Ability to express one’s point of view clearly
o Initiative: Taking the initiative to come up with ideas, start the process
· Demand and Supply: As price increases, demand decreases, but supply increases and vice versa
· Mrs. Acres Homemade Pie: Excess demand, external help, lose ownership
· Excess Demand and Excess Supply: Shortage and surplus pf goods respectively
· Levels of Management:
o Upper Managers: Work on planning and leading the company, they make decisions (ultimate). Eg: CEO, CFO
o Middle Managers: Control a particular department. Receives orders from upper level, and executes them within a department. Eg: head of HR
o Lower Mangers: Direct relation with consumers and work on executing the planning decided by above. Eg: Store managers
· Functional Areas of Management:
o Human Resource: Employees selection, training, and compensation
o Marketing: Promoting the organization and its product
o Finance: Allocation of money, and where the money should be used
o Production and operation: making of the goods and services (maintains the quality of the product and the procedure of making those products)
o Information Technology: Maintains and controls technological application
o Sales: Selling the company’s product
o Administrative: Overall company
o Legal: Making sure the company is not involved with anything illegal
o Ethics: Making sure all the process of the company is ethical
o CSR: Making sure the organization has a positive impact in the society
· Profit Vs Non-profit Organization:
o Profit: Main purpose is to make financial profit
o Non-Profit: Main purpose is not to make financial profit, but to serve a charitable, educational, or literary purpose.
· Jeff Bezos, Amazon:
o puts his consumers need first, ploughing the profit money back to the company (close relation with the customer as well)
o despite of being in the loss he does what the company needs, for instance buying warehouses, removing the competition from the market etc
o through having a close relationship with his company (every department of the company), he makes sure he is driving the optimum work from each and every employee in the company.
o Controlling function: making sure everything in the company is going according to the plan. If there is something not satisfying happening, he directly sends an email to the concerning party.