Organizations must provide a good or service desired by its customers. David Johnson of Campbell Soup manages his firm to provide quality food products.
Physicians, nurses and health care administrators seek to provide healing from sickness. McDonald's restaurants provide burgers, fries and shakes that people want to buy. Measures how efficiently and effectively managers use resources to satisfy customers and achieve goals.
Efficiency: A measure of how well resources are used to achieve a goal. Usually, managers must try to minimize the input of resources to attain the same goal. Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), And the degree to which they are achieved. Organizations are more effective when managers choose the correct goals and then achieve them.
Productivity determines the degree of efficiency of purposeful activity of people. It reflects the ability to manufacture a certain amount of use values for a unit of time. The efficiency of labor - workers of the enterprise to achieve better results at lower cost. Characterized by productivity performance of labor costs in production of goods, determined by the amount of output per unit of time and labor required to produce one unit of labor.
Increased productivity implies lower costs of labor for the production of a unit of production or manufacture of additional products at a time. There is a growth in labor productivity while reducing the share of living labor necessary, with an increase in the proportion of materialized labor. To increase labor productivity can be used the following methods: • Strengthening the material-technical component production. • Modern Enterprise Management System • Reduced costs per unit of production • The establishment of methodological regulatory framework of the enterprise • motivational component
Describe the Managerial Functions
Henri Fayol was the first to describe the four managerial functions when he was the CEO of a large mining company in the later 1800's. Fayol noted managers at all levels, operating in a for profit or not for profit organization, must perform each of the functions of: Planning, organizing, leading, controlling. Planning is the process used by managers to identify and select appropriate goals and courses of action for an organization. 3 steps to good planning: 1. Which goals should be pursued? 2. How should the goal be attained? 3. How should resources be allocated? The planning function determines how effective and efficient the organization is and determines the strategy of the organization.In organizing, managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals. Managers will group people into departments according to the tasks performed. Managers will also lay out lines of authority and responsibility for members. An organizational structure is the outcome of organizing. This structure coordinates and motivates employees so that they work together to achieve goals. In leading, managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals. Leadership involves a manager using power, influence, vision, persuasion, and communication skills.The outcome of the leading function is a high level of motivation and commitment from employees to the organization.
In controlling, managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance.
Managers will monitor individuals, departments, and the organization to determine if desired performance has been reached.
Managers will also take action to increase performance as required. The outcome of the controlling function is the accurate measurement of performance and regulation of efficiency and effectiveness.
5. Describe the Management Levels Organizations often have 3 levels of managers:
First-line Managers: responsible for day-to-day operation. They supervise the people performing the activities required to make the good or service. Managers of managers are often responsible for the direct use of their allocated resources such as raw materials and equipment. A typical job title at this level is the master, the master change, sergeant, head of department, head nurse, head of the Department of Management in the business school. Most of the leaders in general - it is the leaders of grass-roots level. Most people start their managerial career in that capacity. Middle Managers: Supervise first-line managers. They are also responsible to find the best way to use departmental resources to achieve goals. Middle management is often headed by a major division or department in the organization. The nature of his work is largely determined by the content of the work unit, than the organization as a whole. For example, activity in the industrial Production company mainly involves coordination and management of lower-level managers, analysis of data on labor productivity and interaction with engineers to develop new products. Head of External Relations at the same firm spends most of his time preparing documents for reading, conversations and discussions, as well as a meeting of the various committees.
Top Managers: Responsible for the performance of all departments and have cross-departmental responsibility. They establish organizational goals and monitor middle managers. Senior managers responsible for making strategic decisions for the organization as a whole or the main part of the organization. If the top management of the company decides to transfer the corporation to produce products that are not able to deal with competition, the middle and lower levels can do little to prevent a major failure. Strong senior management imprinted his personality on the entire face of the company.
