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Topic 3: The Management Process - Coggle Diagram
Topic 3: The Management Process
The Management Subsystem
Guides and coordinates the firm to reach objectives
Defines how decisions are made and communicated
Includes planning, organization, leadership, and control
Aims for efficiency, teamwork, and adaptation to the environment
Concept and Function of Management
Management = planning + organizing + leading + controlling
Uses all resources to reach objectives
Every group needs coordination and control
These phases are connected
Planning: decide goals, actions, people, and timing
Organization: define roles and processes clearly
Leadership: motivate and guide people
Control: check results and correct errors
Levels of Management
Middle Management
Medium scope, department-based, some repetition
Tactical decisions
Direct Supervision
Operational decisions
Daily and routine, focused on efficiency
Top Management
Big impact, long-term, needs creativity and vision
Strategic decisions
Planning and Controlling
a) Planning
Studies past, present, and future situations
Reduces uncertainty
Sets goals and defines actions to achieve them
Each plan focuses on one area or function
b) Controlling
Reviews decisions and compares results with plans
Steps:
2-Compare results with objectives
3-Correct if needed
1-Collect data
Control is useful only if benefits > cost
Organization
b) Principles
Hierarchy and clear authority
Authority = responsibility
Efficiency
Division of labor and specialization
Unity of objectives
c) Stages
3.Assign tasks to responsible people
4.Give them authority to act
2.Group related tasks
5.Create communication and coordination systems
1.Identify activities needed to reach goals
a) Concept
Organizing = defining roles, structure, and relationships
Goal: clarity, coordination, and efficiency
d) Organizational structure
Everyone knows what to do
Simpler structures work best
Divides and coordinates work
Departmentalization criteria:
By product
By territory
By function (marketing, finance, etc.)
By customer
Many firms mix these models
Management or Direction of Behavior
To manage = get others to do what was planned
Involves leadership, motivation, and communication
a) Leadership
Ability to guide others
Main theories:
Great Man Theory: leaders are born
Behavioral Theory: leadership is learned
Contingency Theory: best style depends on situation
b) Motivation
Combines psychological and social factors
Managers should:
1-Know people’s needs
2-Offer fair and clear incentives
3-Show how effort leads to results
4-Give tools (training, rewards, promotion)
What drives people to act
c) Communication
People must know what to do and why
Needs two-way feedback
Transfer of information so others understand
Connects firm with the external environment
Information and Decision-Making
Information is key to making good decisions
Communication = information + feedback
a) Information subsystem
Connects areas like finance, marketing, and production
Must give the right info at the right time
Collects and provides data for all departments
b) Types of information
External: from outside (customers, suppliers, government)
Economic: financial data and reports
Internal: from inside the firm (sales, costs)
Social: information on social impact and responsibility
c) Elements of the information subsystem
Users: employees and managers
Technology: software, databases, and systems
Information: structured data
d) Information systems in the firm
Good information systems improve decisions and efficiency
ERP systems: integrate all data and automate processes
Computers and software are part of the system, not the whole thing