Chapter 1

Why are we in business?
    We are in business to satisfy customers!!!

What is an organization?
    An organization is a deliberate arrangement of people to accomplish a goals.

Three characteristics
    1. Distinct purpose
    2. Deliberate Structure
    3. People

Who are managers?
A person who coordinates and integrates the work of the organization.
A manager uses resources to accomplish organizational goals.
    (People, money, equipment, resources, materials, etc)

Managers must use resources efficiently and effectively


Efficiency (Relationship of inputs to outputs)

Effectiveness (Goal accomplishment)

Figure 1.6

The Manager’s Universe
There are 5 basic areas that a manager needs to influence:


1. Need to please customers
    Quality products at quality prices
2. Need to provide leadership Ability to get people to follow - Freely
3. Need to act ethically
4. Need to value Diversity in their employees.
    There are many diverse people that will become employees.
        -Race differences
        -Religion differences
        -Age differences
        -Handicap differences
           
5. Need to help with global challenges
        -Social and economic ramifications to business on the world level (and local environment).

Levels of Management

First Line Managers
    - Lowest level
    -Highly involved with the customers
    -Highly involved with the process
    -Technical Skills
    -Operations
    -Human skills

Middle Managers
    -Middle levels coordinates the wishes of the upper management w/ lower levels.
    -Broader skills and duties
    -Human skills


Upper Level
    -Conceptual skills
    -Think abstractly
    -Where is the organization going in the future?
    -Broad pictures
    -Policies (not operations)


Functions of management:

    Planning ---> Organizing -- > Staffing -- > Leading -- > Controlling

THE FUNCTIONS OF MANAGEMENT:
1. Planning- Where do we want to go?
    The duration of the plans depends on your level in the organization:

   
First line managers plan for the day, week and month.    
Top management plans for five years.
    Planning must be flexible!
2. Organizing-The structure to facilitate plans and goals.
3. Staffing- Acquiring and placing people.
4. Leading- Leaders build and maintain positive work     environment based on mutual
    respect and trust. Motivation and communication are key to the success of the leader.
5. Controlling - This is the comparison of actual numbers to standards set.
    A manager makes the appropriate adjustments. (based of the exception principle)


Pros (and cons) of being a manager       
-More pay
-More time needed
-More responsibilities
-More Stress
-More discretionary time   
-More responsibility
-More respect                
-Higher expectationsChapter1
1. The basic business triangle
2. What is an organization?
3. Effectiveness vs. efficiency
4. Manager’s Universe
5. Levels of Management
6. Functions of Management
7. Pros (cons) of management
   

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