Seminar in Management

August 30th till Sept 3rd

Presented By Dr. Samer Nakhle
 Welcome in Lebanon and Hope
!you will benefit from this seminar
Introduction to
Management
 ?What is an Organization

A group of people working together in a

structured and coordinated fashion to
achieve a set of goals
 Organizational Resources
All organizations use four basic
:resources
Human-
Financial-
Physical-
Information-
 Examples of Resources Used by
Organizations
Human Financial Physical Information
Organization Resources Resources Resources Resources

Shell Oil Drilling platform Profits Refineries Sales forecast

workers Stockholder Office Buildings OPEC proclamations
Corporate Executives investments

Iowa State Faculty Alumni contributions Computers Research reports

University Secretarial Staff Government grants Campus facilities Government publications

New York City Police officers Tax revenue Sanitation equipment Economic forecasts
Municipal employees Government grants Municipal buildings Crime statistics

Susan’s Corner Grocery clerks Profits Building Price lists from suppliers
Grocery Store Bookkeeper Owner investment Display shelving Newspaper ads for
competitors

Table 1.1
Managers are responsible for combining these
various resources to achieve the
.organization’s goals

To do so, they have to carry out 4 basic

managerial activities: Planning and decision
making, Organization, Leading and
.Controlling
 Management in Organizations

Planning
and decision Organizing
making
Inputs from the environment
• Human resources Goals attained
• Financial resources • Efficiently
• Physical resources • Effectively
• Information resources

Controlling Leading

Figure 1.1
 Definition of Management
A set of activities (including Planning and
decision making, organizing, leading, and
controlling ) directed at the organization’s
resources (Human, Financial, Physical,
Information) with the aim of achieving
organizational goals in an efficient and
.effective manner
 Efficiently vs Effectively

Efficiently Effectively

Using resources wisely Making the right

and in a cost effective decisions and
.way successfully
implementing them
The Management Process
Planning and
Decision Making Organizing
Setting the organiza- Determining how
tion’s goals and best to group
deciding how best activities and
to achieve them resources

Controlling Leading
Monitoring Motivating members
and correcting of the organization
ongoing activities to work in the best
to facilitate goal interests of the
attainment organization

Figure 1.2
 Planning and Decision Making

Planning is setting an organization’s goals

and deciding how best to achieve them.

Decision Making involves selecting a course

of action from a set of alternatives.
 Organizing

It involves grouping activities and resources

in a logical manner
 Leading

It is the set of processes used to get

members of the organization to work
together to further the interests of the
.organization
 Controlling
Monitoring organizational progress towards
.goal attainment
 Kinds of Managers
:There are three basic levels of managers

 Top Managers
 Middle Managers
 First- Line Managers
 Managers in different areas of the
Organization
 Marketing Manager
 Financial Manager
 Operations Manager
 Human Resources Manager
 Administrative Manager
Kinds of Managers by Level and
Area
Levels of Management

Top managers

Middle managers

First-line managers

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Areas of Management
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Figure 1.3
 Ten Basic Managerial Roles
Category Role Sample Activities

Interpersonal Figurehead Attending ribbon -cutting ceremony for new plant

Leader Encouraging employees to improve productivity
Liaison Coordinating activities of two projects

Informational Monitor Scanning industry repo rts to stay abreast of

deve lopments
Disseminator Sending memos outlining new organizational
initi atives
Spokesperson Making a speech to discuss growth plans

Decisional Entrepreneur Developing new ideas for innovation

Disturbance Resolving co nflict between two subordinates
handler
Resource allocator Reviewing and revising budget requests
Negotiator Reaching agreement with a key supplier or labor
union

Table 1.2
Sources of Management Skills

Sound educational
base; continued
life-long educational
experiences
Successful
acquisition and
utilization of basic
management skills
Initial job experiences;
continued experiences
through a variety of
job assignments

Figure 1.4
The Environment of Organizations
The organization is affected by two types of
environments:

 External Environment
 Internal Environment
 External Environment
Everything outside the organization that
.might affect it

 General Environment
 Task Environment
 Internal Environment

The conditions and forces within the

organization.
 The Organization and Its
Environments
International Technological
dimension dimension

Competitors

Regulators Owners Customers

Employees
Physical environment
Board of directors
Culture
Political-
Economic
legal
Strategic dimension
dimension Suppliers
partners

Internal environment Sociocultural

dimension
Task environment
External environment
General environment
Figure 3.1
 McDonald’s General
Environment
Technological
International Dimension Dimension
• Restaurants in 115 • Improved information
countries technology
• About two-thirds of • More efficient
sales from outside operating systems
the United
States

Political-Legal
Dimension McDonald’s Economic
• Government Dimension
food standards • Strong economic
• Local zoning growth
climate • Low unemploy-
• General posture ment
toward business • Low inflation
regulation
Sociocultural Dimension
• Demographic shifts in
number of single adults
and dual-income families
• Growing concerns about
Internal environment
health and nutrition
Task environment
External environment
General environment
Figure 3.2
McDonald’s Task Environment
Competitors
• Burger King
• Wendy’s
• Subway
Regulators • Dairy Queen
• Food and Drug
Administration Customers
• Securities and • Individual
Exchange consumers
Commission • Institutional
• Environmental customers
McDonald’s
Protection
Agency

Suppliers
Strategic Partners • Coca-Cola
• Wal-Mart • Wholesale food
• Disney processors
• Foreign partners • Packaging
manufacturers

Internal environment
Task environment
Figure 3.3
How Organizations are
affected by the
environment
1- Environmental Change and Complexity

Uncertainty: A major force caused by change and

complexity that affects many organizational activities
 Environmental Change, Complexity,
and Uncertainty
Simple

Degree of Homogeneity

Least Moderate
uncertainty uncertainty

Moderate Most
uncertainty uncertainty

Complex
Stable Degree of Change Dynamic

Source: Adapted from J.D. Thompson, Organizations in Action. Copyright ©

1967 by McGraw-Hill. Reprinted by permission of McGraw-Hill Companies. Figure 3.4
2- Competitive forces: (Michel Porter)

 Threat of new entrants

 Competitive rivalry
 Power of buyers
 Power of suppliers
 A Model of Organizational
Effectiveness
1 2 3
Acquiring the resources and combining them facilitates the attainment
needed from the in an efficient and of organizational goals…
environment… productive manner…
(Systems resource approach) (Internal processes approach) (Goal approach)

Transformation

Inputs Organizational Outputs

System

Feedback

5 4
and satisfies the
making it easier to
strategic constituents
acquire future
in the environment, . . .
resources.
(Strategic constituencies
(Combined approach)
approach)

Figure 3.6
Strategic Planning
The Planning Process
The Environmental Context
The organization’s mission
• Purpose • Premises • Values • Directions

Strategic goals Strategic plans

Tactical goals Tactical plans

Operational goals Operational plans

Figure 7.1
 Kinds of Goals
for a Regional
Fast-Food Chain
Vice president ñ operations
ï Open 150 new restaurants
during next ten years
ï Decrease food-container costs by
15 percent during next five years
ï Decrease average customer wait
by thirty seconds this year
Restaurant manager
ï Implement employee incentive
system within one year
ï Decrease waste by 5 percent this
year
ï Hire and train new assistant
manager
Figure 7.2
Mission: Our mission is to operate
a chain of restaurants that will
prepare and serve high-quality
food on a timely basis and at
reasonable prices.
Strategic Goals
President and CEO
ï Provide 14 percent return to
investors for at least ten years
ï Start or purchase new restaurant
chain within five years
ï Negotiate new labor contract
this year
Tactical Goals
Vice president ñ marketing Vice president ñ finance
ï Keep corporate debt to no more
ï Increase per store sales 5 percent
than 20 percent of liquid assets
per year for ten years
for next ten years
ï Target and attract two new market
ï Revise computerized accounting
segments during next five years
system within five years
ï Develop new promotional
ï Earn 9 percent on excess cash this
strategy for next year
year
Operational Goals
Advertising director Accounting manager
ï Develop regional advertising ï Split accounts receivable/payable
campaigns within one year functions from other areas within
ï Negotiate 5 percent lower two years
advertising rates next year ï Computerize payroll system
ï Implement this yearís for each restaurant this year
promotional strategy ï Pay all invoices within thirty days
 Contingency Planning
The determination of alternative courses
of action to be taken if an intended plan is
unexpectedly disrupted or rendered
inappropriate
 Contingency Planning
Ongoing planning process

Action point 1 Action point 2 Action point 3 Action point 4

Develop plan, Implement plan and Specify indicators Successfully complete
considering formally identify for the contingency plan or contingency
contingency events contingency events events and develop plan
contingency plans for
each possible event

Monitor contingency event indicators and

implement contingency plan if necessary

Figure 7.3
 Developing and Executing
Tactical Plans
Developing tactical plans
• Recognize and understand
overarching strategic plans
and tactical goals
• Specify relevant resource and
time issues
• Recognize and identify human
resource commitments
Executing tactical plans
• Evaluate each course of action
in light of its goal
• Obtain and distribute
information and resources
• Monitor horizontal and vertical
communication and integration
of activities
• Monitor ongoing activities for
goal achievement
Figure 7.4
 Barriers to Goal Setting and
Planning
Major Barriers Inappropriate goals
Improper reward system
Dynamic and complex environment
Reluctance to establish goals
Resistance to change
Constraints

Overcoming the Barriers Understanding the purposes of goals and planning

Communication and participation
Consistency, revision, and updating
Effective reward systems

Table 7.2
 Formal Goal-Setting Process

Starting Establishment Communicat-

Collaborative
the formal of organiza- ing organiza- Periodic Evaluation
goal setting
goal-setting tional goals tional goals review
and planning
program and plans and plans

Meeting

Verifiable
goals and
clear plans

Counseling

Resources

Figure 7.5
 What is a strategy?

A comprehensive plan for accomplishing an

organization’s goals.
?What is strategic management
A comprehensive and ongoing
management process aimed at
formulating and implementing effective
strategies; it is a way of approaching
business opportunities and challenges.
 Types of strategic alternatives
Business level strategy Corporate level strategy

The set of strategic The set of strategic

alternatives that an alternatives that an
organization chooses organization chooses
from as it conducts from as it manages
business in a its operations
particular industry or simultaneously across
market. several industries and
several markets.
Using SWOT to formulate strategy
Using the organization’s mission as a
context, managers assess internal
strengths (distinctive competencies) and
weaknesses and external opportunities
and threats. The goal is to then develop
good strategies that exploit opportunities
and strengths, neutralize threats and avoid
.weaknesses
 SWOT Mission
An organization’s fundamental purpose
Analysis
SWOT Analysis
To formulate strategies that support the mission
 Strengths
Internal Analysis External Analysis
 Weaknesses Strengths Opportunities
(distinctive
 Opportunities competencies)
 Threats
Weaknesses Threats

Good Strategies
Those that support the mission and
• exploit opportunities and strengths
• neutralize threats
• avoid weaknesses

Figure 8.1
 Formulating Business- Level
strategies

 Porter’s generic strategies

 The Miles and Snow Typology
 Product Life Cycle
 Porter’s Generic Strategies
Strategy Type Definition Examples

Differentiation Distinguish products or Rolex (watches)

services Mercedes-Benz (automobiles)
Nikon (cameras)
Cross (writing instruments)
Hewlett-Packard (hand -held calculators)

Overall cost leade rship Reduce manufactu ring Timex

and other costs Hyundai
Kodak
Bic
Texas Instruments

Focus Concentrate on specific Tag Heuer

regional market, product Fiat, Alfa Romeo
market, or group of bu y- Polaroid
ers Waterman Pens
Fisher Price

Table 8.1
 The Miles and Snow Topology
Strategy Type Definition Examples

Prospector Is innovative and growth oriented, Amazon.com

searches for new markets and new 3M
growth opportunities, encourages Rubbermaid
risk taking

Defender Protects current markets, main- Bic

tains stable growth, serves current eBay.com
customers Mrs. Fields

Analyzer Maintains current markets and Dupont

current customer satisfaction with IBM
moderate emphasis on innovation Yahoo

Reactor No clear strategy, reacts to International Harvester

changes in the environment, drifts (in the 1960s and 1970s)
with events Joseph Schlitz Brewing Co.
W. T. Grant

Table 8.2
 The Product Life Cycle
High Stages
Introduction Growth Maturity Decline
Sales Volume

Low
Time

Figure 8.2
Formulating Corporate Level
strategies
 Strategic Business Unit

Each business or set of businesses within

an organization is called strategic
business unit SBU.
 Diversification
The number of different businesses that
an organization is engaged in and the
extent to which these businesses are
related to one another.
 Single Product Strategy

A strategy in which an organization

manufactures just one product or service
and sells it in a single geographic market.
 Related Diversification

Basis of Relatedness Examples

Similar technology Phillips, Boeing, Westinghouse, Compaq

Common distribution and marke ting skills RJR Nabisco, Phillip Morris, Procter & Gamble

Common name brand and reput ation Disney, Universal

Common customers Merck, IB M, AMF -Head

Table 8.3
 Implementing Corporate level
strategies
Becoming diversified :

 Internal Development of New Products

 Backward vertical integration
 Forward vertical integration
 Mergers and Acquisitions
 Managing Diversification
Organizations use portfolio management
techniques in order to make decisions
about what businesses to engage in and
how to manage these multiple businesses
to maximize corporate performance.
Two techniques :
 BCG Matrix
 GE Business Screen
 The BCG Matrix
High

Question
Market growth rate
Stars
marks

Cash cows Dogs

Low
High Relative market share Low

Source: Perspectives, No. 66, “The Product Portfolio,” Adapted by

permission from The Boston Consulting Group, Inc., 1970. Figure 8.3
 The GE Business Screen
Question
High Winner Winner
Industry growth rate

mark

Average
Medium Winner Loser
business

Profit
Low Loser Loser
producer

Good Medium Poor

Competitive position

Competitive position Industry attractiveness

1. Market share 1. Market growth
2. Technological know-how 2. Market size
Source: From Strategy Formulation: 3. Product quality 3. Capital requirements
Analytical Concepts, by Charles W. Hofer
and Dan Schendel. Copyright 1978 West 4. Service network 4. Competitive intensity
Publishing. Used by permission of South- 5. Price competitiveness
Western College Publishing, a division of
International Thomson Publishing, Inc., 6. Operating costs
Cincinnati, Ohio, 45227. Figure 8.4