Roles and Duties in Business and Management

Transcription

1 Lecture 1 Roles and Duties in Business and Management 1. Vision and Strategy Financial Lower cost Increase profitability Increase revenue Customer Lower wait time Improve customer retention Internal Process Increase process efficiency Lower cycle time Organizational capacity Improve knowledge and skills Improve tools and technology Businesses add value by transforming lower-value inputs to higher-value outputs. 2. Importance of Competencies in Recruitment Top 3 Cultural fit Team work Interpersonal skills Key Management Skills Technical Skills Human Skills Conceptual Skills 3. The Multiple Environments of Business Businesses operate in an overlapping mix of dynamic environments that continuously create both opportunities and constraints 1. Market Environment Target customers Buying influences that shape the behavior of those customers Competitors marketing similar products to these customers 2. Legal and Regulatory Environment Laws and regulations that restrain, support and protect businesses Local, state, national levels 3. Economic Environment Conditions and forces (both managed and unmanaged) that affect the cost and availability of goods, services, labor Shape the behavior of buyers and sellers 4. Technological Environment Forces resulting from the practical application of science to innovations, products and processes Create/destroy business opportunities/processes

2 5. Social Environment Population trends Social values Relationship of society and business Trends and forces in society at large 4. The 3 Management Practices Dimensions Performance Monitoring Target Setting Incentives and People Management Introduction of modern techniques Target balance Managing human capital Rationale for modern techniques Target interconnection Rewarding high performance Process problem documentation Target time horizon Removing poor performers Performance tracking Target stretching Promoting high performance Performance review Performance clarity Attracting human capital Performance dialogue Retaining human capital Consequence management US highest average management practice score, the Japan, Germany, Sweden ( ) Lowest: India, China, Brazil, Greece ( ) Private sectors perform management practices much better than public Family businesses do worse than non-family businesses Best structure: dispersed shareholders, then private equity Rigidity of employment index: loyalty if incentives are given (ie. USA, Australia = best performers) 5. What is management? Process of effectively/efficiently planning, organizing, leading and controlling people to achieve the organizations goals and objectives Whilst balancing the demands and pressures of the external environment Planning, Organizing, Controlling, Leading à Company Goals Effectiveness (doing the right things) + efficiency (not wasting resources) = performance Lecture 2 Business Systems and Processes 1. A Systems view of Business System: a set of interacting components that form an integrated whole à e.g. an organization, a business Systems have: 1. Boundary: defines scope of the system 2. Hierarchy: system as a part of a larger system 3. Structure: parts that are related to each other 4. Behavior: contains processes (interaction) - input à throughput à output Activity System: network of all the business processes of the organization Business Process: a structured network of activities supported by resources, facilities and information that interact to achieve some business function A business process is a system Characteristics of a well-designed business process:

3 1. Complete - all activities necessary to achieve the business goal 2. Minimal - do not include unnecessary activities (cost efficiency) 3. Well structured - structured in a logical sequence 4. Embedded - connect and interact with other BPs in the organization in effective and efficient ways Outcome: - increased effectiveness (value for customer) à quality - increased efficiency (less cost for the company) à cost = performance What is an Information System? IT: hardware, software, data IS: IT + procedures, people 2. Building the Value System Activity System (business processes) + Information System = Value System IS create value when used in processes Processes mostly involve some IS Operational foundation of the business: - day to day value creation and delivery - where the money is made Functional & process view: - plan the business strategy - new product/service generation - order generation - order fulfillment - people management - servicing products/customers Small improvement x high repetition rate = big cost savings Enterprise Systems are process-based systems Finance & Accounting Cash on hand Accounts receivable Customer credit Revenue Sales & Marketing Orders Sales forecasts Return requests Price changes Centralized Database Manufacturing & Production Materials Production schedules Shipment dates Production capacity Purchases Human Resources Hours worked Labor cost Job skills Standardizing and controlling processes: - to ensure best practice is used across the organization (ERP providers claim that best practice is embedded in the software)

4 Integrating data: - single source of truth - no duplication of data - easier to maintain date - instant access to correct data for various areas across the organization à real time overview and monitoring - coordination across business divisions and processes Process Modeling Plays important role in BPM initiatives Representing business processes to analyze and improve them Performed by business analysts and managers who seek to improve process efficiency and quality Designing/implementing IT for improvements 3. A Social Systems View Structured vs. Unstructured work Structured Unstructured Value System (planned) Systems View Social System (emergent) Scientific management Paradigm Human Relations Rational, maximize gain, Bounded rationality, social Nature of people minimize losses acceptance, influence Control, govern, monitor Role of management Empower, facilitate, nonintervention Quality, cost optimization Innovation, learning Goals (exploitation) (exploration) Information storage, analysis & processing Role of IS Knowledge sharing and creation à efficiency à innovation Social Media in the Workplace Social Media opponents - procrastination, time wasting, chatter - leads to chaos detrimental to info management Social Media Evangelists - enterprise 2.0 will radically change the way organizations operate: breaks down information silos, reengages employees - flat hierarchies: knowledge/idea-based authority, rather than role based - democratic communication structures Microblogging characteristics e.g. Twitter: - short messages (140 characters for Twitter) - everyone can publish - tagging, direct messages, refer to other users - follow other users, topics or lists Enterprise microblogging e.g. Yammer - distribution of short conversation messages - online accessible only to members of the organization - follow people, communicate in closed groups (for teamwork) Overall One business, many views - Information System - Activity System - Decision System, production system, legal system - Social system Lecture 3

5 Entrepreneurship, Ownership Forms and Growth 1. Entrepreneurship Qualities of successful entrepreneurs Like to control their destiny Don t measure success in strictly financial terms Take sensible risks, not gamblers Adaptable, tune in with markets Learn from mistakes Financing your ideas 1. Self, friends, family (pre-seed) 2. R&D, grant funding (seed) 3. Business angels (start-up) 4. Co-investment funds & early stage venture capital funds (early growth) 5. Venture capital (sustained growth) 6. Exit IPO/Trade Sale etc 2. Ownership Forms Choice of ownership forms may affect Tax you are liable to pay Asset protection Ongoing costs Your clients Sole traders Simplicity Taxation at personal rates Privacy Flexibility and control Partnership Simplicity Taxation at personal rates More resources Cost sharing Broader skill and experience base Longevity