Chapter 11

What do Managers Do?

• Plan
• Organize
• Coordinate
• Command
• Make Decisions
• Take Risks
• Control
• Without managers, a business would lack:
  A sense of control and direction
  Coordination between departments, leading to wastage of time, money & effort
  Control of employees
  Organization of resources, leading to low output and sales

What Makes a Good Manager?

• Intelligence
• Initiative
• Self-confidence
• Assertiveness
• Determination
• Communication skills
• Energy
• Enthusiasm

Types of Decisions

• Strategic Decisions: very important decisions which can affect the overall success of the business
• Tactical Decisions: decisions which are taken more frequently and are less important
• Operational Decisions: day-to-day decisions which will be taken by a lower level of management

How Managers Reduce Risks While Taking Decisions

• Establish the objectives of the organization
• Identify and analyze the problem at hand
• Collect data on all possible alternative solutions
• Make the final decision
• Implement the decision
• Evaluate and review the decision

Management Responsibilities

Human Resources Department:

• Forecasting staffing needs
• Recruiting staff
• Preparing job descriptions and job specifications
• Planning and implementing staff training
• Interviewing and selecting staff
• Negotiating with union leaders
• Keeping staff records
• Disciplining and warning staff
• Manage people fairly and firmly
• Aim for low staff turnover
• Ensure the compliance with all employment laws

Marketing Department:

• Market research into existing or new market in order to find market opportunities
• Planning new products
• Find best marketing-mix
• Keeping records of sales
• Key role in keeping in contact with customers

Accounting and Finance Department:

• Recording all financial transactions
• Collecting and presenting data
• Preparing budgets
• Analyzing the profitability of business decisions
• Deciding the best method of finance
• Keeping control of the cash flow

Production Department:

• Ordering stock material and other resources
• Developing and designing new products
• Locating buildings in the most cost-effective areas
• Deciding on production methods and machinery
• Controlling production for efficiency
• Maintaining efficiency of machinery
• Keeps the quality of the product

Administration Department [Under HR, Supporting Department]:

• Clerical and office support services
• Responsibility for the IT system
• Cleaning, maintenance and security