Micro Business Environment
Summary Management
What is an organization?
An organization is a collection of people working together in a division of labor to achieve
a common purpose.
All organizations share a broad purpose- providing useful goods or service.
An important source of organizational strengths and performance advantage is quality
products and customer satisfaction
How do we look at organizations?
Organizations as open systems
The environment supplies —> the organization creates —> The environment consumes
<——- customer and client feedback <——-
An open system transforms resource inputs from the environment into product
outputs.
Productivity is the quantity and quality work performance with resource utilization
considered
Performance effectiveness is an output measure of task or goal accomplishment
Performance efficiency is an input measure of resource cost associated with goal
accomplishment
Total quality management (TQM) is managing with commitment to continuous
improvement, product quality, and customer sarisfaction.
What is going on inside the organization?
inputs suppliers —> organizational network of subsystems —> outputs customers
operations and service management system
purchasing and inventory system
marketing, sales and distribution systems
accounting and financial systems
information and technology systems
What are managers and what do they do?
The role of a manager in a high performance organization: -encourage your staff, get
them at work
Responsibilities of managers:
- plan meetings and work schedules
- encourage high performance and teamwork
- clarify goals and tasks and gather ideas for improvement
- appraise performance and counsel team members
- recommend pay raises and new assignments
- recruit train and develop team members
- inform team members about organizational goals and expectations
- inform higher levels of work unit needs and accomplishments
- coordinate with others teams and support the rest of the organization
,What is a manager?
A manager is a person who supports and is responsible for the work of others.
Levels of managers
Highest level is chief executive officer CEO, president, vice president
- Top managers guide the performance of the organization as a whole or of one of its
major parts
- Middle managers are in charge of relatively large departments or divisions
- Project manager, someone who coordinates complex projects with task deadlines
- Team leaders or supervisors report to middle manager and directly supervise
nonmanagerial workers. Is in charge of a small work group.
Types of managers
Line managers-contribute to the production of the organization’s basic goods/service
Staff managers-use special technical expertise to advise and support line workers
Functional managers-responsible for one area of activity, finance, marketing, production,
personnel, accounting, sales
General managers- responsible for complex multi-functional units
Administrators-manager in a public or nonprofit organization
High performing managers
Are well informed of their team’s needs
work alongside those they supervise
provide advice and develop support for their team
help their people perform to the best of their abilities
What is the management process?
Process of planning organizing controlling and leading
- Planning is process of setting performance objectives and determining what actions
should be taken to accomplish them
- Organizing is the process of assigning tasks, allocating resources and coordinating
the activities of individuals and groups to implement plans.
- Leading is the process of arousing enthusiasm to work hard and inspiring efforts to
achieve goals.
- Controlling is the process of measuring work performance and taking corrective
action to ensure desired results.
Managerial activities ad roles
Mintzberg’s 10 managerial roles
Interpersonal roles-how manager interact with other people
Informational roles-how manager exchange and processes information
Decisional roles-how manager uses information in decision making
How do you learn the essential managerial skills and competencies?
A skill is the ability to translate knowledge into action that result in desired performance.
- Technical skill is ability to use expertise to perform a task with proficiency
- Human skill is ability to work well in cooperation with other people
- Conceptual skill is the ability to think analytically and solve complex problems
- Emotional intelligence is ability to manage ourselves and our relationships
, effectively
Katz’s essential managerial skills
Lower-level managers Middle-level managers Top-level managers
Conceptual skills low high
Human skills same for every level manager
Technical skills high low
Shaping the purpose of the organisation
The topic of strategic management is defined in the context of the purpose f the
organisation. Strategy is a mean to an end, the purpose of the organisation.
It is impossible to develop strategy if the organisation’s purpose remains unclear. Purpose
is often simplified to ‘profit maximisation’.
Purpose is complex and multifaceted, involves profit, survival, the motivations of the
people and the relationship of the organisation with society and community.
Purpose will be unique to each organisation. Purpose of the organisation is more than
just delivering profitability.
Vision and mission
A vision can be defined as a mental image of a possible and desirable future state of the
organization. – this has to be irrelevant and has to have value.
Vision is a challenging and imaginative picture of the future role and objectives of an
organization, significantly going beyond its current environment and competitive position.
It refers to organization’s ambitions
The mission of an organization outlines the broad directions that it should and will follow
and briefly summarizes the reasoning and values that lie behind it.
The purpose of the mission statement is to communicate to all stakeholders inside and
outside the organization what the company stands for and where it is headed.
Globalisation
Globalization refers to the shift towards a more integrated and interdependent world
economy
Globalisation of markets
-Historically distinct and separate national markets are merging
-Global market
-falling trade barriers make it easier to sell globally
Globalisation of production
Firms source goods and services from locations around the globe to capitalize on national
difference in the cost and quality of factors of production. >
labor-capital-raw materials (energy , land)
Companies can lower their overall cost structure and improve the quality or functionality
of their product offering.
Summary Management
What is an organization?
An organization is a collection of people working together in a division of labor to achieve
a common purpose.
All organizations share a broad purpose- providing useful goods or service.
An important source of organizational strengths and performance advantage is quality
products and customer satisfaction
How do we look at organizations?
Organizations as open systems
The environment supplies —> the organization creates —> The environment consumes
<——- customer and client feedback <——-
An open system transforms resource inputs from the environment into product
outputs.
Productivity is the quantity and quality work performance with resource utilization
considered
Performance effectiveness is an output measure of task or goal accomplishment
Performance efficiency is an input measure of resource cost associated with goal
accomplishment
Total quality management (TQM) is managing with commitment to continuous
improvement, product quality, and customer sarisfaction.
What is going on inside the organization?
inputs suppliers —> organizational network of subsystems —> outputs customers
operations and service management system
purchasing and inventory system
marketing, sales and distribution systems
accounting and financial systems
information and technology systems
What are managers and what do they do?
The role of a manager in a high performance organization: -encourage your staff, get
them at work
Responsibilities of managers:
- plan meetings and work schedules
- encourage high performance and teamwork
- clarify goals and tasks and gather ideas for improvement
- appraise performance and counsel team members
- recommend pay raises and new assignments
- recruit train and develop team members
- inform team members about organizational goals and expectations
- inform higher levels of work unit needs and accomplishments
- coordinate with others teams and support the rest of the organization
,What is a manager?
A manager is a person who supports and is responsible for the work of others.
Levels of managers
Highest level is chief executive officer CEO, president, vice president
- Top managers guide the performance of the organization as a whole or of one of its
major parts
- Middle managers are in charge of relatively large departments or divisions
- Project manager, someone who coordinates complex projects with task deadlines
- Team leaders or supervisors report to middle manager and directly supervise
nonmanagerial workers. Is in charge of a small work group.
Types of managers
Line managers-contribute to the production of the organization’s basic goods/service
Staff managers-use special technical expertise to advise and support line workers
Functional managers-responsible for one area of activity, finance, marketing, production,
personnel, accounting, sales
General managers- responsible for complex multi-functional units
Administrators-manager in a public or nonprofit organization
High performing managers
Are well informed of their team’s needs
work alongside those they supervise
provide advice and develop support for their team
help their people perform to the best of their abilities
What is the management process?
Process of planning organizing controlling and leading
- Planning is process of setting performance objectives and determining what actions
should be taken to accomplish them
- Organizing is the process of assigning tasks, allocating resources and coordinating
the activities of individuals and groups to implement plans.
- Leading is the process of arousing enthusiasm to work hard and inspiring efforts to
achieve goals.
- Controlling is the process of measuring work performance and taking corrective
action to ensure desired results.
Managerial activities ad roles
Mintzberg’s 10 managerial roles
Interpersonal roles-how manager interact with other people
Informational roles-how manager exchange and processes information
Decisional roles-how manager uses information in decision making
How do you learn the essential managerial skills and competencies?
A skill is the ability to translate knowledge into action that result in desired performance.
- Technical skill is ability to use expertise to perform a task with proficiency
- Human skill is ability to work well in cooperation with other people
- Conceptual skill is the ability to think analytically and solve complex problems
- Emotional intelligence is ability to manage ourselves and our relationships
, effectively
Katz’s essential managerial skills
Lower-level managers Middle-level managers Top-level managers
Conceptual skills low high
Human skills same for every level manager
Technical skills high low
Shaping the purpose of the organisation
The topic of strategic management is defined in the context of the purpose f the
organisation. Strategy is a mean to an end, the purpose of the organisation.
It is impossible to develop strategy if the organisation’s purpose remains unclear. Purpose
is often simplified to ‘profit maximisation’.
Purpose is complex and multifaceted, involves profit, survival, the motivations of the
people and the relationship of the organisation with society and community.
Purpose will be unique to each organisation. Purpose of the organisation is more than
just delivering profitability.
Vision and mission
A vision can be defined as a mental image of a possible and desirable future state of the
organization. – this has to be irrelevant and has to have value.
Vision is a challenging and imaginative picture of the future role and objectives of an
organization, significantly going beyond its current environment and competitive position.
It refers to organization’s ambitions
The mission of an organization outlines the broad directions that it should and will follow
and briefly summarizes the reasoning and values that lie behind it.
The purpose of the mission statement is to communicate to all stakeholders inside and
outside the organization what the company stands for and where it is headed.
Globalisation
Globalization refers to the shift towards a more integrated and interdependent world
economy
Globalisation of markets
-Historically distinct and separate national markets are merging
-Global market
-falling trade barriers make it easier to sell globally
Globalisation of production
Firms source goods and services from locations around the globe to capitalize on national
difference in the cost and quality of factors of production. >
labor-capital-raw materials (energy , land)
Companies can lower their overall cost structure and improve the quality or functionality
of their product offering.
