Chapters 6

1
Chapters 6 8 Review
2

• The four activities of management
• Planning, Organizing, Leading, Controlling
• Managerial Roles
• Decision Making
• Managerial Skills
• Structural Building Blocks
• Organizational Structures
• Reengineering
• The informal organization
• Production Planning
• Processes, Site selection, Facility layout,
  Resource planning, Supply Chain Management
• Production Operations Control
• Routing Scheduling
• Improving Production Operations
• Total Quality Management, Lean Manufacturing,
  Automation
• Trends

3
Management

• Dynamic evolving
• Managerial Process
• Planning anticipate problems/opportunities
  design plans
• Organizing get resources to implement plans
• Leading guide through implementation process
• Controlling review results modify

4
Types of Planning

• Strategic Planning
• Long range broad
• Mission mission statement
• Tactical Planning
• Support strategic plans
• Operational Planning
• Specific
• Guide control tactical plans
• Contingency Planning
• Alternative actions
• What to do in an emergency

5
Organizing

• Coordinating allocating resources
• Creating a structure to maximize the flow of
  information
• Division of labor
• Departmentalization
• Delegation

6
Leading

• Guide and motivate others to goals
• Influence others behavior power
• Sources of Power
• Legitimate
• Reward
• Coercive
• Expert
• Referent

7
Leadership Styles

• Autocratic Leaders
• Solve problems on their own
• Participative Leaders
• Share decision making
• Types
• Democratic
• Consensual
• Consultative
• FreeRein Leaders (Laissez-faire)
• Control to the group

8
Corporate Culture

• The set of attitudes, values, standards of
  behavior in the workplace
• Managements leadership styles are usually
  reflective of the culture
• Evolves over time
• Can greatly impact the success of the company

9
Controlling

• Helps determine the success of planning,
  organizing, leading
• Directs behavior toward achieving goals
• Allows for coordinating activities and
  integrating resources
• Feedback is essential to this process

10
The five stages of Controlling

• Setting standards and goals
• Measuring performance
• Comparing actual to estimated
• Taking corrective action
• Using info gained to set new standards for the
  following year

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What roles do managers play?

• Informational roles
• Gather or distribute information
• Interpersonal roles
• Leader or liaison
• Decisional roles
• Entrepreneur, conflict resolution, resource
  allocation, negotiator

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How do managers make decisions?
5. Follow up
to see if problem is solved
4. Put plan into action
3. Select one or more alternatives
2. Search for solutions
1. Define the problem
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Types of decisions made by managers

• Programmed
• Routine
• Frequent
• Standard procedures developed and followed
• Nonprogrammed
• Unforeseen
• Infrequent
• Unusual
• No standard procedures

14
Skills needed by managers

• Technical Skills
• Area of expertise, ability to apply knowledge
• Human Relations
• Understanding of human nature, communication
  skills, motivate and empower others
• Conceptual Skills
• Understanding of the whole organization as well
  as its parts
• Global Management Skills
• Ability to operate in diverse cultures

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How do managers juggle all of their
responsibilities?

• Through effective time management
• Plan ahead
• Establish priorities
• Delegate
• Learn to say no
• Batch
• Stay on task
• Set deadlines

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Trends in Management

• Increasing employee empowerment
• Growing use of information technology
• Increasing need for global management skills

17
The organizing function

• Coordinating and allocating resources to carry
  out a companys plans/goals
• Accomplished by
• Division of labor
• Departmentalization
• Delegation
• Results in
• A formal organization
• Building Blocks Division of labor,
  Departmentalization, Managerial hierarchy, Span
  of control, Centralization of decision making

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Division of Labor

• Establishing work activities
• Dividing work into separate jobs
• Assigning duties to workers
• Specialization

19
Departmentalization

• How jobs are grouped together so similar tasks
  are coordinated
• Types of departmentalization
• Functional
• Product
• Process
• Customer
• Geographic
• Many companies use a mix of these

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Managerial Hierarchy

• The levels of management within the company
• Each unit is managed and controlled by a manager
  in a higher unit
• Chain of command
• Unity of command principle
• Power sharing concept
• Authority Delegation of authority

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Span of Control

• The number of employees each supervisor has under
  direct supervision
• How do you determine the best span of control?
• Nature of the task
• Location of workers
• Ability of manager to delegate
• Amount of interaction feedback
• Level of skill motivation

22
Centralization of Decision Making

• At what level should decisions by made?
• Centralization
• Most decisions made at the top
• Decentralization
• Decision making is pushed down the organization

23
Centralization of Decision Making, cont.

• Factors to consider when determining degree of
  centralization
• Size of the company
• Speed of change in its environment
• Managers willingness to give up authority
• Employees willingness to accept authority
• Geographic dispersion
• Reevaluate organizational structure often!

24
Types of Organizational Structures

• Mechanistic
• Tall organizations
• Organic
• Flat organizations
• Determining which type of structure is best is
  based on the firms
• overall strategy, size, technology, and stability
  of external environment

25
Mechanistic vs. Organic Structures
26
Common forms of organizational structures

• Line organizations
• Line and staff organizations
• Line positions directly involved in processes
  to create goods/services
• Staff positions provide administrative
  support services
• Committee structure
• Matrix structure

27
Reengineering

• Businesses to re-evaluate the way they do
  business and their organizational structure from
  time to time
• Reengineering
• Abandon outdated rules, assumptions, policies,
  etc.
• Redesign processes and structures
• Allows companies to be more efficient, improve
  operations, increase customer satisfaction

28
The Informal Organization

• Based on informal relationships between employees
• Provides a network of connections and
  communication channels which
• Keep employees informed aware
• Foster friendships
• Provide recognition
• Socializes new employees
• Can interfere with company goals if group norms
  conflict with company standards
• Managers should use as a tool by bringing
  informal leaders into the decision making process

29
Trends in business organization

• Virtual Corporations
• Key attributes
• Technology
• Opportunism
• Excellence
• Trust
• No borders
• Mix match capabilities of different companies
• Global Mergers
• Have to determine how to structure the large,
  merged organization into a successful unit
• Can be challenging to overcome differences

30
Production Operations Management

• Production Operations Management are important
  because
• Consumers demand quality products/services at
  reasonable prices in a timely fashion
• Consumers also demand better service and
  individualized attention
• 3 Main types of decisions
• Production Planning
• Production Control
• Improving Production Operations

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Production Planning

• Find the best production methods to meet and
  balance company goals
• 3 phases
• Long term
• Medium term
• Short term
• Important decisions/elements
• Production Process
• Site Selection
• Facility Layout
• Resource Planning
• Supply Chain Management

32
Production Process

• How should the goods be made?
• Mass Production
• Mass Customization
• Customization
• Job shop
• How should the inputs be converted into outputs?
• Process manufacturing
• Assembly process

33
Production Process, cont.

• What should the timing of the process be?
• Continuous Process
• Intermittent Process

34
Site Selection

• Affects operating cost, price of the
  product/service, ability to compete
• Factors to consider
• Availability of inputs
• Marketing factors
• Local incentives
• Manufacturing environment
• International considerations

35
Facility Layout

• Determine what the most efficient effective
  design is for the production process
• Types
• Process layout
• Product layout
• Fixed Position layout

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Resource Planning

• Make sure resources are available when needed
• Steps of resource planning
• Determine which resources are needed and when
• Decide if the production materials should be made
  or bought
• Determine how much inventory to have how it
  should be managed
• Decide if a computerized resource planning system
  is needed

37
Supply Chain Management

• Supply Chain
• Secure Inputs ? Produce Goods ? Deliver Goods
• Want a smooth transition along the supply chain
• Strategies
• Create tight bonds with suppliers
• Improve supplier communications
• Internet, Electronic Data Interchange (EDI)

38
Production Operations Control

• Gaining efficiencies through the coordination of
  materials, equipment, and human resources
• Key aspects
• Routing determines workflow
• Scheduling sets time needed for each step
• Gantt Charts
• Critical Path Method
• Program Evaluation Review Technique (PERT)

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Improving Production Operations

• Improving Quality
• Quality Control
• Total Quality Management (TQM)
• Six Sigma
• Malcolm Baldrige National Quality Award
• Lean Manufacturing
• Just-in-time
• Automation
• Computer-aided systems
• Robotics
• Flexible Manufacturing Systems
• Computer-Integrated Manufacturing
• Others

40
Trends in Production

• Asset Management
• Modular Production
• Decrease cost of design development
• Increases ability to meet rapidly changing
  conditions
• Agile Manufacturing
• Increases flexibility and speed
• Work Cell Design
• Improves quality efficiency