M1 - (MGT101) Principles of Management

Module 1 : Introduction to Management: Theories and Practice

Terry and Rue:

•“Management is a process or form of work that involves the guidance and direction ”

Stoner:

•“Management is a process of planning, organizing, leading and controlling the efforts of organization members ”

Koontz, O’Donnell and Weihrich:

•“Management is the establishment of an environment for group effort,, with the least amount of such inputs as money, time, effort, discomfort and materials .”

Johnson and Stinson:

•“Management is the process of working with and through other people to accomplish organizational goals.”

Common Features

Management

PROCESS:

to achieve its overall goals to minimum cost and maximum profit

PERSON:

who are responsible and accountable for directing the workplace

9 M’s of Management

1. Manpower

2. Money

3. Materials

4. Machines

5. Methods/Procedure

6. Markets

7. Minutes/Time Management

8. Motivation/Morale

9. Measurement

BASIC MANAGERIAL FUNCTIONS

• PLANNING

• ORGANIZING

• STAFFING

• LEADING

• MOTIVATING

• CONTROLLING

• PLANNING

the process of setting the objectives to be accomplished by an organization during time period

• ORGANIZING

the process of grouping and assigning activities and authority to carry out the activities.

• STAFFING

The process of filling positions with the most qualified people

• LEADING

Managing and motivating others

• MOTIVATING

getting people to contribute their maximum effort

• CONTROLLING

The process of ensuring the achievement of an organization’s objectives. 

Other Essential Processes:

Decision-Making

the process of choosing two or more alternatives

• Planning

• Organizing

• Staffing

• Motivating

• Controlling

Other Essential Processes:

Communicating

the process of transferring or conveying ideas,

MANAGER

refers to a person responsible for the work performance

MANAGEMENT

to achieve organizational objectives through the functions of planning, organizing and staffing, leading and controlling.

Levels of Management

TOP

Chairman of the Board, CEO, President, Vice-President, COO (Chief Operating Officer), CFO (Chief Financial Officer), CIO (Chief Information Officer)

executive coaching, change management, leadership, delegations & empowerment, etc.

Levels of Management

MIDDLE

Director, Branch Manager, Department Chairperson, Chief of Surgery, Team Leader

problem solving, team building, talent development, performance management, etc.

Levels of Management

LOW LEVEL

Supervisor, Office

Manager, Crew

Chief

emotional intelligence & coaching for performance, etc.

Type of Managers:

1. Functional Managers

2. General Managers

3. Administrators

4. Entrepreneurs

5. Small Business Owner

6. Team Leader

Types of Managers:

1. FUNCTIONAL MANAGERS

They supervise the work of employees engaged

Types of Managers:

2. GENERAL MANAGERS

They are responsible for the work of several different groups

Types of Managers:

3. ADMINISTRATORS

They are typically a manager who works in a public (government) or non-profit organization, rather than in a business firm.

Types of Managers:

4. ENTREPRENEURS

•They are the persons who found and operate an innovative business.

•the entrepreneur develops the business into something bigger than can handle alone or with the help of only a few people,

that person becomes a general manager.  

Types of Managers:

5. SMALL BUSINESS OWNER

•An individual who owns and operates a small business. 

•Entrepreneurs are small business owners

BUT not all business owners are entrepreneurs.  

Types of Managers:

6. TEAM LEADERS

A manager who coordinates the work of a small group of people, while acting as a facilitator and catalyst.

The Process of Management

Resources Used by Managers

HUMAN RESOURCES

Are people needed to get the job done.

FINANCIAL RESOURCES

are the money the manager

PHYSICAL RESOURCES

a firm’s tangible goods and real estate, including raw materials,

INFORMATION RESOURCES

the data that the manager and the organization use to get the job done

The Seventeen Managerial Roles

Planning

1. Strategic Planner

2. Operational Planner

The Seventeen Managerial Roles

Organizing & Staffing

3. Organizer

4. Liaison

5. Staffing Coordinator

6. Resource Allocator

7. Task Delegator

The Seventeen Managerial Roles

Leading

8. Figurehead

9. Spokesperson

10. Negotiator

11. Motivator and Coach

12. Team Builder

13. Team Player

14. Technical Problem Solver

15. Entrepreneur

The Seventeen Managerial Roles

Controlling

16. Monitor

17. Disturbance Handler

Five Key Managerial Skills

Technical Skills

understanding of and proficiency in a specific activity that involves methods, processes, procedures or techniques.

Five Key Managerial Skills

Interpersonal  Skills

a manager’s ability to work effectively as a team member

Five Key Managerial Skills

Conceptual Skills

the ability to see the organization as a total entity

Five Key Managerial Skills

Diagnostic Skills

Ability to investigate a problem and then to decide on and implement a remedy.

Five Key Managerial Skills

Political Skills

The ability to obtain power and prevent others from taking it away.

Katz’ Managerial Role

Mintzberg’s Role of Manager

False

Managers are  the same as a leaders in all aspects of their functions and responsibility 

True

False

False

Being an efficient manager means you are able maximize all your resources to obtain your goal.

True

False

True

Being effective means you are able to  obtain  the oranization's goal.

True

False

True

Effectivity and efficiency are both necessary to become a successful manager.

True

False

  planning and organizing

  leading and controlling

Which among the following belong to top level managers ? – CEO of the group of company

 Basic functions of manager include :

  planning and organizing

  leading and controlling

 management is a process and requires resources

  managing is through people

  all levels of managerial position should acquire skills in basic functions

Which among the following statements are TRUE about management concept?

  management is a process and requires resources

  managing is through people

  all levels of managerial position should acquire skills in basic functions

 

GLOBAL MANAGEMENT

•       the rise of the “global village” and e-commerce,

•       the trend of the world becoming one big market, and

•        the rise of both megafirms and Internet-enabled minifirms worldwide.

INTRODUCTION

Globalization, the trend of the world economy toward becoming a more interdependent system, is reflected in three developments:

COUNTRY RANKING FOR COMPETITIVENESS 2019

1. Singapore

2. United States

3. Hong Kong SAR

4. Netherlands

5. Switzerland

6. Japan

7. Germany

8. Sweden

9. United Kingdom

10. Denmark

THE RISE OF THE “GLOBAL VILLAGE” AND ELECTRONIC COMMERCE

Global village

The “shrinking” of time and space as air travel and the electronic media have made it easier for the people around the globe to communicate with one another

Global economy

The increasing tendency of the economies of the world to interact with one another as one market instead of many national markets

INTERNATIONAL MANAGEMENT

is management that oversees the conduct of operations in or with organizations in foreign countries

According to Hamilton Recruitment, you’ll be able to

-          improve your communication skills,

-           gain insights into other cultures,

-          and experience personal growth,

Ethnocentric

managers believe that their native country, culture, language, and behavior are superior to all others.

Ethnocentric thinkers tend to believe that they can export the managers and practices of their home countries to anywhere in the world and that they will be more capable and reliable..

Polycentric

managers take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone. Thus, the attitude of polycentric managers is nearly the opposite of that of ethnocentric managers..

 

GEOCENTRIC MANAGER

managers accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective.

Ethnocentric manager

we know best

Polycentric Manager

they know best

Geocentric managers

What’s Best Is What’s Effective, Regardless of Origin”

 

WHY COMPANIES EXPAND

Lowest Risk & Investment,

Global Outsourcing →  Importing →  Exporting & Countertrading →  Licensing & Franchising → Joint Ventures → Wholly Owned Subsidiaries

 Highest Rank & Investment

FIGURE 3.1

The organization’s environment

The two main groups are internal and external stakeholders

Internal Stakeholders

1. EMPLOYEE

2. OWNERS

3. BOARD OF DIRECTORS

•SOLE PPROPRIETOR

•PARTNERSHIP

•PRIVATE  INVESTORS

•EMPLOYEE OWNERS

•SHAREGOLDERS

External Stakeholders

Task Environment

consists of 10 groups that interact with the organization

External Stakeholders

General Environment

macroenvironment—the set of broad, uncontrollable forces in the external environment that impact the organization

10 components of Task Environment

1. CUSTOMERS

2. SUPPLIERS

3. COMPETITORS

4. DISTRIBUTOR

5. STRATEGIC ALLIES

6. EMPLOYEE ORGANIZATION

7. LOCAL COMMUNITIES

8. FINANCIAL INSTITUTION

9. GOVERNMENT REGULATIONS

10. SPECIAL INTEREST GROUPS

General Environment

Economic Force

Unemployment

Interest rates

Trade balance

General Environment

Technological forces

technology and work arrangement

technology and  automation

General Environment

Demographic Forces

age

gender

race

income, etc

General Environment

Politico-Legal Forces

laws and  politics

General Environment

International Forces

changes in economy, politics, legal and global systems’ technology

ethical dilemma :

situation in which you have to decide whether to pursue a course of action that may benefit but that is unethical or even illegal

Ethics

Standards of right and wrong that

Values

deeply underlying beliefs and attitudes

value system : pattern of values within organization

Fig 1.2 Survey results on workplace behavior considered ethical misconduct

Utilitarian

managers look for the  greates good for the greatest number

Drawback : may damage workforce morales ,loss of employees with skills and experiences.

 Individual Approach

guided by what will result in the individual’s best long term interest.

Moral-Rights

 Respecting fundamental rights shared by everyone.

 Justice Approach

guided by respect for impartial standards of fairness and equity

• create strong ethical climate

• screening propective employees

• instituting ethics codes and training programs

• rewarding ethical behavior

•  using multi-faceted approach!

Fig 1.3 Carrol’s Global Corporate Social Responsibility (CSR)