Core Principles and Functions of Management

Core Concepts of Management

Management: The process of working with people to accomplish goals efficiently and effectively.

• Efficiency: Doing things in a timely and economical manner.
• Effectiveness: Accomplishing the goal, period.

The 4 Functions of Management

• Planning: Set goals and decide how to achieve them.
• Organizing: Get and coordinate the resources needed to achieve the goals.
• Leading: Motivate others to work towards those goals.
• Controlling: Monitor progress and make adjustments if necessary.

The 4 Levels of Management

Top Level

Executive level (e.g., CEO, CFO):

• Set overall strategy and direction for the organization.
• Focused on the growth and survival of the business as a whole and its interaction with the outside environment.
• Utilize conceptual and interpersonal skills.

Middle Level

Regional level (e.g., manager of all Starbucks stores in Florida):

• Tactical managers: Take the vision of the top level and mobilize the pieces needed to execute it.
• Communicate strategy to frontline staff.
• Heavy on interpersonal and conceptual skills, but also require technical knowledge.

Frontline

Branch managers (e.g., the manager of a single Starbucks store):

• Hire and fire; in charge of day-to-day operations.
• Implement specific plans made with middle managers.
• Heavy in technical and interpersonal skills.

Team Leader

Shift leaders (e.g., a shift leader at Starbucks):

• Create a positive environment; function like a coach.
• Help develop the skills of other workers, remove roadblocks, and motivate the team.
• No administrative power; no authority to hire or fire.
• Excellent interpersonal and technical skills.

Management Challenges

• Globalization: New markets (yay), new competitors (nay).
• Technological Changes: Speeds up globalization and provides new opportunities, but also increases the chance of competition.
• Knowledge Work: Increasingly important, but difficult to monitor and harness.
• Knowledge Management: The process of fully harnessing and utilizing the intellect of the people in the organization.
• Collaboration: Improves performance (e.g., Keurig collaborated with Starbucks, and both benefited).
• Increasing Diversity: It is happening; now we must leverage and utilize it.