Chapter 7: The nature of management. This chapter include objectives: Define management and explain its role in the achievement of organizational objectives, describe the major functions of management, distinguish among three levels of management and the concerns of managers at each level, specify the skills managers need in order to be successful, summarize the systematic approach to decision making used by many business managers, recommend a new strategy to revive a struggling business. | Chapter Seven The Nature of Management Management A process designed to achieve an organization’s objectives by using its resources effectively and efficiently in a changing environment. Managers Individuals in organizations who make decisions about the use of resources and who are concerned with planning, organizing, leading, and controlling the organization’s activities to reach its objectives. The Functions of Management Managers Planning activities to achieve the organization's objectives Organizing resources and activities to achieve the organization’s objectives Staffing the organization with qualified people Directing employees’ activities toward achievement of objectives Controlling the organization’s activities to keep it on course Where Planning Starts Objectives - The ends or results desired by the organization and are derived from the organization’s mission. Mission - The statement of an organization’s fundamental purpose and basic philosophy. Types of Plans . | Chapter Seven The Nature of Management Management A process designed to achieve an organization’s objectives by using its resources effectively and efficiently in a changing environment. Managers Individuals in organizations who make decisions about the use of resources and who are concerned with planning, organizing, leading, and controlling the organization’s activities to reach its objectives. The Functions of Management Managers Planning activities to achieve the organization's objectives Organizing resources and activities to achieve the organization’s objectives Staffing the organization with qualified people Directing employees’ activities toward achievement of objectives Controlling the organization’s activities to keep it on course Where Planning Starts Objectives - The ends or results desired by the organization and are derived from the organization’s mission. Mission - The statement of an organization’s fundamental purpose and basic philosophy. Types of Plans Operational Plans Tactical Plans Strategic Plans Specify Actions to Achieve Tactical Plans (very short-term) Designed to Implement Strategic Objectives (usually one year or less) Establish Long-Range Objectives Crisis Management, or Contingency Planning, Requires that Managers Plan for “When” rather than “If” a Disaster Occurs. The Levels of Management First-Line Management Foreman, Supervisors, Office Managers Middle Management Plant Managers, Division Managers, Department Managers Top Management President, CEO, Executive Vice Presidents The Top 5 Highest Paid CEOs Michael Dell Dell Computer $235,912K Sanford Weill Citigroup $216,183K Gerald Levin AOL Time Warner $164,183K John Chambers Cisco Systems $157,305K Henry Silverman Cendant $137,447K Source: “Forbes Top CEOs,” from (accessed July 9,2001) CEO Company Annual Salary Importance of Management Functions to Managers in Each Level Planning Planning Planning Organizing Organizing Organizing Staffing Staffing Staffing .
