Review
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Name the four functions of management.
What are the main levels of management?
What is scientific management?
What is administrative management?
What is behavioral management?
1-1
Planning and Decision Making
Goal Setting
Theory
● Why have goals?
– Unified direction
– Affects other plans
– Motivation
– Evaluation
Practice
• Example – sales – high margin or revenue?
• Eisenhower / Churchill
1-2
Vision Statement
Theory
● A vision statement is the company’s view of the
future.
– Provides direction
● Can be an inspiration
Practice
● Example: Microsoft’s initial vision was a
computer on every desk and in every home.
● Example: Sun Microsystems vision that “The
network is the computer.”
● Apple vision video
1-3
Mission Statement
Theory
● A Mission statement tells you the fundamental
purpose of the organization. It concentrates on
the present. It defines the customer and the
critical processes. (Wikipedia)
Practice
● Sears - Our Mission is to serve, delight and
engage our Members while they shop their way.
● GM - to design, build and sell the world's best
vehicles.
● Mission statements are often a mess.
1-4
Strategy
Theory
● A Strategy is a long term plan of action
designed to achieve a particular goal, most
often "winning." (Wikipedia)
● The high-level plan for achieving the goals of
the business
1-5
Strategy
Practice
● E.g., if the goal of the company is to
become international, possible strategies
are:
– A multi-domestic strategy
– A global strategy
– A transnational strategy
– A home replication strategy
1-6
Which comes first?
● Logically:
– Vision
– Mission
– Strategy
● But not necessarily done in that order.
1-7
Goals Set by Level
Theory
● Corporate
– strategic
● Mid-management
– tactical
● First Level
– Operational
Practice
● Netflix
1-8
Goals/Objectives
Theory
● Should be SMART
– Specific
– Measurable
– Achievable
– Timely
Practice
● Objectives may conflict
– E.g. speed vs. quality
● Can not satisfy everyone
1-9
Contingency Planning
Practice
● Plan for the unexpected
– Revenue shortfall
– Rise in costs
– Floods
– Power outage
 Telephone companies
 Financial institutions
– Terrorist acts
● Document the plan
● Identify the event
● Identify the actions
1-10
Operational Planning
Practice
● Single-use plans
– Program
 E.g. introduce new product
– Project
 Build the Olympic site
 Create a new product
● Standing Plans
– Policies, eg. Harassment
– Standard Operating Procedures (SOP), e.g.
vouchers, merit review, promotion
– Rules and Regulations
1-11
Barriers to Planning
Practice
● Inappropriate goals
– Maybe can’t measure, aren’t SMART
● Improper reward system
– Rewards drive behavior
– E.g. make sales calls at expense of support
● Dynamic and complex environment
– Can Google have a 10 year plan?
● Reluctance to establish goals
● Resistance to change
● Constraints
– Money, time
1-12
Management By Objectives (MBO)
Theory
● Formal process for objective setting
● Top-down
● Rewards and evaluations based upon meeting
objectives
Practice
● Discuss
– Good
– Not so good
1-13
Videos
● Griffin DVD - Chapter 3, Finagle a Bagel
1-14