Management Function Planning Dr John P Abraham UTPA

Management Function Planning Dr. John P. Abraham UTPA

Planning n Provides direction n Cooperation and teamwork n Reduces impact of change n Forces to anticipate change n Minimizes waste and redundancy n Coordination among managers n Sets standards to facilitate control n Strategic planning for long term n Tactical planning for short term

Strategic Planning n strategic planning determines where an organization is going over the next year or more, how it's going to get there and how it'll know if it got there or not. n The focus of a strategic plan is usually on the entire organization, while the focus of a business plan is usually on a particular product, service or program.

Management by Objectives n Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources n It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization.

Management by objectives n All levels makes objectives n Provides for specific personal performance n Identify an employee’s key job tasks n Establish specific objectives n Allow employee to actively participate n Prioritize n Build a feedback mechanism n MBO not as popular as once

Planning stages Mission and objectives Analyze environment Analyze organizations resources Identify opportunities and threats (SWOT – strengths weakness, opportunities and threats) n Identify strengths and weakness of organization. n Formulate strategies n Implement, evaluate and adjust n n

SWOT Strengths n What is your strongest business asset? n Do you consider your team strong? Why? n What do you offer that makes you stand out from the rest? n What unique resources do you have? n Do you have any specific marketing expertise? n Do you have a broad customer base? n Additional strengths

SWOT Weaknesses n What can be improved? In what areas do your competitors have the edge? What necessary expertise / manpower do you currently lack? Do you have cash flow problems? Are you relying primarily on just a few clients or customers? Additional weaknesses

SWOT Opportunities n What trends do you see in your industry? n What trends do you foresee? n What trends might impact your industry? n What external changes present interesting opportunities? n What have you seen in the news recently that might present an opportunity? n Additional opportunities

SWOT Threats n What obstacles do you face? n What is the competition doing that you're not? n What challenges can be turned into opportunities? n Are external economic forces affecting your bottom line? n Additional threats

Decision Making process n Identification of decision criteria n Allocation of weights to criteria n Development of alternatives n Analysis of alternatives n Selection of an alternative n Implementation and evaluation

Decision Making Models n Mathematical model n Differential calculus n Statistical Model

Example n Customer service might improve with number of employees up to a point. Then the service might actually decrease. n We can graph this on x, y. Example equation, y= 14 X – 1/2 X 2 n We can calculate the optimum number of employees needed.

Example car buying decision n n n Price weight 10 Interior comfort 8 Durability 5 Repair record 5 Performance 3 Handling 2 Trade-in value 3 n Use this on variety of cars available n Think: How do we make decision on stem cell research? n CS – expert system, neural networks

Decision Making Techniques n Payoff Matrices Based on uncertainly and pessimist an optimist view of the manager n Decision Trees n n Involves a progression of decisions n Brake-Even Analysis A point at which revenue is sufficient cover costs. n Ratio Analysis n Current ratio – current assets divided by its current liabilities. n P/E ratio n Etc. n Queuing theory n n Determine how many teller stations to have

MANAGEMENT FUNCTION n ORGANIZING

Organizing n 24 So Moses hearkened to the voice of his father in law, and did all that he had said. n 25 And Moses chose able men out of all Israel, and made them heads over the people, rulers of thousands, rulers of hundreds, rulers of fifties, and rulers of tens. n 26 And they judged the people at all seasons: the hard causes they brought unto Moses, but every small matter they judged themselves. n Exodus 18

Organization structure n Formal organization chart represents the division of activities within the firm (who reports to whome).

Types of departmentalization n Functional n Engineering, accounting, IT n Products n Hardware, software, footware n Customer n Wholesale, retail, government n Geographic n North, south n Process n Testing, payment

Elements of organization structure n Work specialization n Specialized training n Chain of command n Unity of command – only one manager n Span of control n How many employees con a manager direct effectively? 6 n Authority (rights given or taken) & Responsibility n Centralized vs decentralized authority

Line and Staff Relationship n Deals with authority from previous slide n Line are those that are directly concerned with attaining product or service. n n Staff exist to help make the line activities more effective. n n n Production, sales and finance HR, purchasing, IT, safety Not usually subject to line authority Line-staff friction

Beware of informal organization n Sociogram n Movie- last castle

Building Power n Power is the total amount of influence that an individual has to influence behavior of people. Some of it comes from formal authority given by line. Knowledge, skill n Respect others n Build power relationships n Control important information n Gain seniority n Build power in stages n

Staffing and HR n HR practices are governed by laws. n Equal pay act 1963 n Civil rights act titile VII (race, color, relion, national origin or sex) 1964 n Vocational rehabilitation act (physical or mental disabilities) 1973 n Privacy Act 1974 n Pregnancy (Title VII) 1978 n No Mandatory age for retirement 1978 n Immigration Reform –don’t hire illegals 1986 n Polygraph limitation – 1988 n Disabilities act (accommodate) 1990 n Family and Medical Leave act 1993

Employment Planning n Assessing current human resources n Job analysis n Job description n Job specifications (minimum qualification) n Future human resources needs n Revenues, expansion n Developing a program to meet these needs

Recruitment and Selection n Internal search n Advertisement n Employee referrals n Employment agencies n School placement n Temp services n Employee leasing and Independent contractors

Downsizing n Firing n Layoffs n Attrition n Transfers n Reduced workweeks n Early retirements

Employee Selection Process n Problem to avoid: Hired can’t do the job and not-hired was capable. n What was the prediction of success based on? Test? Interview? References? Education? n Written tests are good. n Oral tests are also good. n Interview alone is probably not good n

Interviewing skills n Review job description and job specifications before n n n interviewing. Prepare a structured set of questions and ask all applicants. Review written application and resume before the interview At the start of interview give a brief preview of topics discussed. Find out how much the applicant know about the position and the company in general Let the applicant know what is the next step Write down the evaluation immediately upon conclusion of the interview

Orientation, Training and Development n Orientation n Job, department, company, environment n Objectives, history, rules, procedures n Training n Job rotation, classroom training, simulation n Train about sexual harassment n Development n Performance evaluation and development for additional resposibilites n Pay increases n Counseling, discipline

Other Aspects of Organizing n Spiritual Organization (Southwest air, HP) n Strong sense of purpose, focus on individual development, trust and openness, employee empowerment, toleration of employee expression. n Manage change, stress & innovation