module 1

1.1 Definitions of Management

• General Definition: Management involves designing and maintaining an internal environment for effective and efficient teamwork aimed at achieving group goals.

• Expansion of Definition: Success is influenced by internal efficiency and external adaptation to environmental changes.

• Broad View: Management is the direction and coordination of resources to meet external users' needs, highlighting the interconnectedness of organizational functions.

• Manager Levels:

  • Top Managers: Responsible for overall direction and external relations.

  • Middle Managers: Connect departmental activities to organizational goals.

  • Lower-Level Managers: Focus on unit-level activities and external relationships.

1.2 Managers

• Definition: A manager is someone accountable for directing others' activities within organizations.

• Scope of Management: Managers oversee tasks performed by people, distinguished from managing materials or machines.

• Examples: Presidents in firms, military generals, university leaders, and orchestra conductors are all categorized as managers due to their leadership roles.

1.3 The Tasks of a Manager

• Overview: Management's functions can be traditionally categorized into five core activities:

  • Planning: Setting objectives, choosing means to achieve them, and resource allocation.

  • Organizing: Identifying and coordinating activities that achieve objectives.

  • Staffing: Recruiting, selecting, and developing human resources needed.

  • Directing: Communicating and influencing subordinates towards goals.

  • Controlling: Monitoring performance and making corrective actions.

• Contemporary View: Managers also play roles categorized by Mintzberg:

  1. Interpersonal Roles: Representing the unit, leading, and liaising with others.

  2. Informational Roles: Monitoring, disseminating, and acting as spokesperson.

  3. Decisional Roles: Engaging in entrepreneurship, problem-solving, resource allocation, and negotiation.

1.4 The Skills of a Manager

• Skills Classification: Managers require diverse skills grouped into three types:

  • Interpersonal Skills: Vital for managing human relationships effectively.

  • Technical Skills: Necessary for mastering the tools and techniques relevant to their specific functions.

  • Conceptual Skills: Ability to see the organization as a whole and understand interrelated functions.

• Skills Importance by Level:

  • Top Managers: Emphasize conceptual skills.

  • Middle Managers: Balance interpersonal and technical skills.

  • Lower-Level Managers: Focus primarily on technical skills.

1.5 Different Types of Managers

• Fundamental Similarities: While managerial tasks are similar, distinctions arise from the varied objectives, environments, and resources of institutions.

• Focus on Business Management: Many principles can be applied across different types of organizations but will focus on business management.

1.6 Business Managers and their Responsibilities

• Core Purpose: Business management aims at using resources to generate profit and surpluses.

• Capitalism Context: Private enterprises are expected to meet societal needs while pursuing profit through competition. Adam Smith's 'invisible hand' theory emphasizes the benefits of businesses acting in self-interest.

• Diverse Responsibilities: Managers have responsibilities toward customers, employees, and suppliers, reflecting a broader societal obligation alongside profit maximization.

1.7 How Business Managers are Trained

• Training Variability: Differences in training across countries:

  • Japan and West Germany: Technical graduates are schooled, then trained on broader skills within firms.

  • United States and Philippines: Business degrees emphasize general knowledge before entering the workforce.

• Pros and Cons of Training:

  • University Training: Provides broad knowledge but lacks specific operational experience, which is critical in practice.

  • Social Process of Management: Management requires interpersonal skills that young managers often develop through practical experience over time.

1.8 Entrepreneurs and Development

• Historical Context: Entrepreneurs had driven economic growth before the formation of large corporations and government involvement.

• Significance in ASEAN: Ethnic groups, like overseas Chinese in various countries, played critical roles in industrial development.

• Increasing Interest: Rising acknowledgment of the link between entrepreneurship and modern business success has emerged in economic and management discussions.

• Entrepreneurship Definitions: Three key traditional definitions:

  • As a Founder of an Enterprise

  • As a Risk Taker

  • As an Innovator

1.9 Business Managers and Entrepreneurship

• Comparative Function: Entrepreneurs create wealth; managers optimize and administer resources.

• Innovation Recognition: Businesses emphasize continual innovation for profitability and are recognizing the role of managers in fostering this environment.

• Contemporary Issues: Companies now encourage a culture of corporate entrepreneurship to spur innovation and manage change, highlighting the need for creative leadership in management today.