Week 4

The purpose socialization is
education.
The purpose of education is

The Society socialization.
( which statement is better?)

Effectiveness – The ability to determine
appropriate objectives and reaching the
objectives. (doing the right thing)
Efficiency &
Effectiveness Efficiency – The ability to minimize the
use of resources in achieving
organizational objectives. (doing things
right)
The purpose that an
organization strives to
achieve.
Goals /
Objectives
Follow the S M A R T
formula.
 The people responsible for directing the efforts aimed at
Manager helping organizations achieve their goals.
1.Interpersonal Roles - lead, liaison
(go between), symbol
Managerial 2. Informational – monitor, share

Roles information, spokesperson
3. Decisional – take initiative, handle

disagreements, allocate resources,
negotiate
The Management Process (Process is a systematic
method of handling activities)
1. Planning
2. Organizing
3. Leading
4. Controlling
Human Resources
The Production/Operations
Management
Areas Marketing
Finance
Planning  The process of establishing goals and a suitable course of
action for achieving those goals.
Decision Making: The process of identifying and
selecting course of action to solve a specific problem.
Problem: Situation that occurs when an actual state of

Planning affairs differs from a desired state of affairs.
Opportunity: Situation that occurs when circumstances

offer an organization the chance to exceed stated goals
and objectives.
Planning  Strategy - The broad program for defining and achieving
an organization’s objectives; the organization’s response
to its environment over time
Intensity of Rivalry
Threat of New Entrants
Five Forces of Bargaining Power of Suppliers

Competition
Bargaining Power of Customers
Threats from Substitute Products

Provide Provide a sense of direction
Focus Focus our efforts
Importance of
Goals Guide Guide our plans and decisions
Help Help us evaluate our progress

SWOT Analysis
S – Strengths
More on the W – Weaknesses
Environment
O – Opportunities
T - Threats
Strategies  The broad program for defining and achieving an
organization’s objectives; the organization’s response
Defined to its environment over time.
 The art and science of formulating, implementing, and
evaluating cross-functional decisions that enable an
organization to achieve its objectives.
 Focuses on integrating management, marketing,
Strategic finance/accounting, production/operations, research and
development, and computer information systems to
Management achieve organizational success.
Defined  The purpose of strategic management is to exploit and

create new and different opportunities for tomorrow;
long-term planning, in contrast tries to optimize for
tomorrow the trends of today.
 The concept of strategy is ancient. The word comes from
the Greek strategeia- the art or science of being general.
Effective Greek generals needed to lead an army, win
Strategy As and hold territory, protect cities from invasion, wipe out
the enemy and so forth.
The Grand  Each kind of objective required a different deployment
of resources. Likewise, an army’s strategy could be
Plan defined as the pattern of actual actions that it took in
response to the enemy.
The process of setting goals and choosing the means to
achieve those goals.
Without plans, managers cannot know how to organize people

and resources effectively.
Planning Without plans, they cannot lead with confidence or expect

others to follow them.
Without plans, managers and followers have little chance of

achieving their goals, or knowing when and where they stray
from their paths.
Goals
provide a
sense of
direction.
Goals Are
Important Goals help
us evaluate
Goals focus
our efforts.
our progress
For At Least
Four Reasons Goals guide
our plans
and
decisions.
The Hierarchy of Plans
Mission Statement
Strategic Plans
Operational Plans
The mission statement is
created by the founder, board
of directors, or top managers.
Hierarchy Of The strategic plans are created

by top and middle managers.
Plans
The operational plans are
created by middle and first-
line managers
Time horizons - Strategic plans tend to look ahead
Differences several years or even decades. For operational plans, a

year is often the relevant time period.
Between Scope - Strategic plans affect a wide range of

Strategic And organizational activities whereas operational plans have a
narrow and more limited scope.
Operational Degree of detail - Often strategic goals are stated in
Plans terms that look simplistic and generic. Operational plans,

as derivatives of strategic plans are stated in relatively
finer detail.
Strategic Management Process
Goal Setting
Strategic
Planning
Strategy Formulation
Administration
Strategy
Implementation
Strategic Control
 Strategic management provides a disciplined way i for
managers to make sense of the environment in which the
organization operates, and then to act:
The Strategic  Strategic planning - the sense-making activity. This
Management includes both the goal setting and the strategy
formulation processes.
Process  Strategy implementation – actions based on that kind of
planning, including administration and strategic control
stages.
 Strategic management provides a disciplined way i for
managers to make sense of the environment in which the
organization operates, and then to act:
The Strategic  Strategic planning - the sense-making activity. This
Management includes both the goal setting and the strategy
formulation processes.
Process  Strategy implementation – actions based on that kind of
planning, including administration and strategic control
stages.
Corporate Strategy
Hierarchy of
Strategic and Business-Unit Strategies
Operational
Plans of a Functional-Level Strategies
Multi-Business
Organization
Operating Plans
 Environment
ESG As Part
of Corporate  Social
Strategy  Governance
 Vision – Answers the question “ What do we want to
become?” The first step in strategic planning. Example
from an eye clinic “ Our vision is to take care of your
vision” The vision of Institute of Management
Accountants “ Global leadership in education,
Vision and certification, and practice of management accounting and
financial management”
Mission  Mission statements are “enduring statements of purpose
that distinguish one business from other similar firms.
Statements Mission statements identify the scope of firm's
operations in product and market terms. Address the
basic question that faces all strategists “ What is our
business?”
Mission  A clear mission statement describes the values and
priorities of an organization.
Statements
Organizing
ORDER (SYSTEMS)
Division of Work – Divide the total workload
Four Building
1.
into tasks than can logically and comfortably be
performed by individual or groups. The
Blocks of breakdown of a complex task into components
Organizing Note: Job specialization

Four Building
Blocks of 2. Departmentalization – Combine tasks in a logical and
efficient manner. The grouping of work activities that are
Organizing similar and logically connected.

Four Building 3. Hierarchy - Specify who reports to whom in the
organization. A pattern of multiple levels of an
Blocks of organizational structure.
Organizing Note: Span of Management

4. Coordination - Set up mechanisms for integrating
Four Building departmental activities into a coherent whole and
monitoring the effectiveness of that integration.
Blocks of
Organizing The integration of the activities of the separate parts of
an organization to accomplish organizational goals.
Sources of power:
Power – The 1. Reward Power
ability to exert 2. Coercive Power

3. Legitimate Power
influence on 4. Expert Power
other people 5. Referent Power

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The purpose socialization is

The purpose of education is

( which statement is better?)

Managerial 2. Informational – monitor, share

3. Decisional – take initiative, handle

Problem: Situation that occurs when an actual state of

Opportunity: Situation that occurs when circumstances

Threat of New Entrants

Five Forces of Bargaining Power of Suppliers

Threats from Substitute Products

Focus Focus our efforts

Help Help us evaluate our progress

Defined  The purpose of strategic management is to exploit and

Without plans, managers cannot know how to organize people

Planning Without plans, they cannot lead with confidence or expect

Without plans, managers and followers have little chance of

Hierarchy Of The strategic plans are created

Differences several years or even decades. For operational plans, a

Between Scope - Strategic plans affect a wide range of

Operational Degree of detail - Often strategic goals are stated in

Plans terms that look simplistic and generic. Operational plans,

Organizing Note: Job specialization

Organizing similar and logically connected.

Organizing Note: Span of Management

Power – The 1. Reward Power

ability to exert 2. Coercive Power

other people 5. Referent Power

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