Strategic Management

**Management** is the process of coordinating resources (people, money, time, materials) to achieve organizational goals. Every manager, regardless of level, does four core functions: **1. Planning** — deciding what goals to pursue and how to achieve them. This includes setting objectives, forecasting, and developing strategies. Think of it as the "what and how." **2. Organizing** — arranging resources and tasks to meet goals. This includes creating an org structure, assigning roles, and establishing authority. Think of it as "who does what." **3. Directing (Leading)** — motivating, guiding, and communicating with employees to get work done. This includes leadership style and team communication. **4. Controlling** — monitoring performance, comparing it to goals, and correcting deviations. Think of it as "are we on track?" > *A memory trick: **PODC** — Plan, Organize, Direct, Control.* > --- ### SM:100 — Factors That Affect Management Managers don't operate in a vacuum. Two categories of forces shape every decision: **Internal factors** (inside the company): - **Company culture and values** - **Available resources (budget, staff, technology)** - **Organizational structure** - **Employee skill levels** **External factors** (outside the company): - **Economic conditions (recession, inflation)** - **Competition** - **Technology changes** - **Laws and regulations** - **Social/cultural trends** - **Global factors** > The classic framework here is a ***SWOT analysis*** — Strengths & Weaknesses are internal; Opportunities & Threats are external. > --- ### SM:063 — Managerial Planning Planning happens at three levels — know all three: | Level | Who does it | Timeframe | Example | | --- | --- | --- | --- | | Strategic | Top management (CEO) | 3–5+ years | "Expand into Europe" | | Tactical | Middle management | 1–2 years | "Open 3 new stores" | | Operational | Front-line managers | Daily/weekly | "Schedule staff for Tuesday" | **Goals should be SMART:** Specific, Measurable, Achievable, Relevant, Time-bound. Other planning tools: **MBO** (Management by Objectives) — manager and employee set goals together, then track them. --- ### SM:064 — Organizing Key concepts you need to cold-recall: - **Organizational chart** — visual diagram of structure, authority, and relationships - **Chain of command** — the line of authority from top to bottom - **Span of control** — how many employees one manager supervises. Wide span = fewer layers; narrow span = more layers - **Centralization** — decisions made at the top. - **Decentralization** — decisions pushed down to lower levels - **Departmentalization** — grouping jobs by function, product, geography, or customer type - **Line authority** — direct chain of command. - **Staff authority** — advisory roles (like HR or legal) --- ### SM:065 — Staffing The HR side of management — *getting the right people in the right roles:* 1. **Job analysis** — defining what a job requires (job description + job specifications) 2. **Recruiting** — finding candidates (internal vs external) 3. **Selection** — interviews, tests, background checks 4. **Onboarding/Orientation** — integrating new hires 5. **Training & Development** — building skills over time 6. **Performance appraisal** — evaluating employee work 7. **Compensation** — wages, salaries, benefits