MANAGEMENT 339: PRINCIPLES OF MANAGEMENT AND OPERATIONS

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MANAGEMENT 339 PRINCIPLES OF MANAGEMENT AND
OPERATIONS

• What is Operations Management (OM) ?
• Activities that relate to creation of goods and
  services through transformation of inputs
• Relationship to other functional areas such as
  Marketing and Accounting Finance
• Key areas in OM
• Product/service design/Process design/Capacity
  planning/facilities location and design
  (Layout)/Quality management/HR and job
  design/Supply chain management/Inventory and
  materials management/Operations planning and
  scheduling/Maintenance
• We will learn principles/methods to handle issues
  in these areas

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MANAGEMENT 339 PRINCIPLES OF MANAGEMENT AND
OPERATIONS

• What are Principles of Management ?
• Principles applicable to all functions of the
  organization
• Principles applicable at all levels of the
  organization
• Principles useful to all levels of managers
• What are the levels of the organization ?
• Corporate Business Functional. Page 273.
• What are levels of managers/management ?
• Top management, middle management,
  entry-level/first-level/supervisory

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MANAGEMENTWhat all managers do

1. Achieving Objectives/Goals
2. Functions of Management
3. Efficient Use of Resources

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MANAGEMENT

• Definition Pg 8
• Goal/objective directed
• A process involving management functions
• Resources assembling and using
• Setting
• Organizational - functions, people, coordination
• External environment

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How good is our management ?

• Effectiveness Achieving objectives, goals
• Efficiency Managing resources
• OUTPUT INPUT

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Efficiency
Team A Team B Target
Tickets Sold 200 150 250
Spent 100 50
Efficiency 200/100 150/50
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Function of ManagementPg 25
Process of Management

• Planning
• Organizing
• Directing/ Leading
• Control

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Planning at Different Levels of Management
Planning Horizon Long Medium Short
Planning Type Strategic Tactical Operational
Skills (pg 32) Conceptional Human Technical
TOP MIDDLE FIRST LEVEL
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Trends in Management and OM

• Globalization
• Growth of service sector
• Emphasis on quality and productivity
• TQM and JIT philosophies
• Social responsibility and ethics
• Diversity issues
• Emphasis on Technology, IT, logistics,
  integration, coordination SCM

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Social Responsibility and Ethics

• Why relevant to business studies Pg. 151
• SR obligation of an organizations management to
  make decisions and take actions that will enhance
  the welfare and interests of society as well as
  the organization
• Economic, legal, ethical and discretionary
  responsibilities
• What organizations can do 164-
• Leadership, code of ethics, compliance
  committees/officers, policies (e.g.
  whistle-blowing), training

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ETHICS IN MANAGEMENT

• Ethics The code of moral principles and values
  that govern the behavior of a person or group
  with respect to what is right or wrong.
• Values Statements
• Code of ethics
• New employee orientation, employee training
• Leadership, corporate culture

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An Overview of Planning. Pg 270-

• Purpose
• Direction, standards for measurement
• Types of plans
• Strategic, Tactical and Operational
• See chart on page 270
• Planning process
• Pg 275
• Setting Objectives/Goals. 279-
• Principles Page 288-
• Specific, Measurable, Realistic but challenging,
  Participation
• MBO. 291

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Strategic Management. Chapter 6

• Objective Competitive advantage
• Characteristics of competitive advantage. 194-
• Superiority, inimitability, durability,
  non-substitutability, appropriate levels of
  profits/gains
• Strategic Management process 197
• Strategic Intent/Vision/Mission
• Environmental Analysis
• Revised Vision/Mission and LT objectives 198-
• Detailed situation analysis
• Formulate strategies
• Develop action for implementation Programs,
  Policies, Budgets
• Plan monitoring

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ENVIRONMENTAL SCANNING 204- EXTERNAL ENVIRONMENT

• ECONOMY
• POLITICAL-LEGAL
• SOCIO-CULTURAL
• TECHNOLOGY
• GLOBAL/INTERNATIONAL
• COMPETITION
• CUSTOMERS
• SUPPLIERS

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INTERNAL ENVIRONMENT

• FUNCTIONAL AREA RESOURCES
• Finance, Marketing, Operations, HR, MIS, RD
• ORGANIZATION STRUCTURE
• Dividing work, Authority Responsibility,
  Information flow, decision making
• CORPORATE CULTURE
• Social responsibility and ethics, integration and
  intensity of competitive priorities

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STRATEGIC MANAGEMENTFORMULATING STRATEGY
EXT. ENVT.
MISSION OBJECTIVES
SITUATION ANALYSIS
INT. ENVT.
STRATEGY
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SITUATION ANALYSIS

• SWOT ANALYSIS. 214
• PORTFOLIO ANALYSIS. 211
• PRODUCT LIFE CYCLE ANALYSIS 209
• INDUSTRY/ COMPETITION ANALYSIS

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STRATEGY
CORPORATE LEVEL(GRAND)
GROWTH
STABILITY
RETIREMENT
BUSINESS LEVEL Pg 200
COST LEADERSHIP
DIFFERENTIATION
FOCUS
Competitive Priorities Cost/Price Quality
Availability
Dependability
FUNCTIONAL LEVEL
OPERATIONAL STRATEGY
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GROWTH STRATEGY

• CONCENTRATION
• DIVERSIFICATION
• VERTICAL INTEGRATION
• ACQUISITIONS MERGERS

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Functional level strategyE.g. Operations Strategy

• PRODUCTS/SERVICES
• PROCESS
• TECHNOLOGY
• QUALITY
• WORK FORCE
• FACILITIES
• SUPPLIERS/VERTICAL INTEGRATION

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STRATEGY IMPLEMENTATION

• Organizing and Directing view
• Policies/procedures, Programs and Budgets view
• Seven S view . Pg 218
• What are policies? Why important here?
• Programs are MT and ST plans
• Elements

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MANAGEMENT CONTROLChapter 16

• The systematic process through which managers
  regulate organizational activities to make them
  consistent with expectations established in
  plans, targets, and standards of performance.

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MANAGEMENT CONTROLSteps 570-

• SETTING STANDARDS
• MEASURING ACTUAL PERFORMANCE
• COMPARISON ANALYSIS
• CORRECTIVE ACTION/ NO ACTION

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Stages of Management Control589-

• Preliminary control
• Concurrent control
• Post/Feedback control
• Examples of control 577- quality control,
  process control, employee evaluations, customer
  satisfaction surveys, supplier evaluations

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Principles of Effective Control591

• Focus
• Amount of
• Quality of information
• Flexibility