INTRODUCTION Prepared by: HKP First Prepared on: 09-12-04; ANS Last Modified on: 12-12-05 Quality checked by: SHA Copyright 2004 Asia Pacific Institute of Information Technology Introduction to Management BM007-3-1-IMT
An overview of the general
Introducing large and small business structure.
An overall business environment and the management of quality in organisations.
The management of people – theories of management and motivation.
Marketing and financial essentials.
Entrepreneurial activities and the relationship between innovation, change and new product development.
Lecture 1 The Role of Management in Organisations
Lecture 2 Understanding Competitive Environment and Organisational Culture
Lecture 3 Organisation Structure
Lecture 4 Management – Theory and Practise
Lecture 5 Planning and Decision Making
Topics we will cover
Lecture 6 Management & Motivation
Lecture 7 Leadership
Lecture 8 Team and groups and work group processes
Lecture 9 Control
Lecture 10 Organisational Culture in Organisation and Management
Topics we will cover
Product life cycle and management of new product development.
Overview of financial management. Cash flow management and budgeting
Current Issues at Workplace
Topics we will cover
Kathryn K. Bartol and David C. Martin, (1998), Management ; Int. Edition, Mcgraw-Hill
Davis, D, (1997), The Art of Managing Finance; Third Edition; Mcgraw-Hill.
What support is available for you
Drucker P. (1999). Innovation and Entrepreneurship . Butterworth.
Schermerhorn Jr., Chappell, D., Introducing Management
Stephen P. Robbins , Mary Coulter , Management (8th Edition) Pearson Education (ISBN: 0131439944)
What support is available for you
Journals, newspaper articles!
The List goes on……take the initiative!
Additional Reference Materials
Final exam (2 hours) 50%
Group Presentation 50%
How you will be assessed
Attendance will be taken at the beginning of class.
Those who are not present will be marked as absent.
Those who are out of the class after the attendance has been taken will be later marked as absent unless the lecturer is informed of their exit.
Latecomers must take the responsibility to see the lecturer after class for attendance to be updated. They are to write their names on a paper provided by the lecturer for attendance to be recorded into the system later after the class.
Definition of late – student not in class when attendance is taken.
Definition of absent – not in class after 20 minutes.
The remark column in the attendance system will be updated with information of the absenteeism when the supporting document is furnished to the lecturer.
QUESTIONS Slide of 18
Lecture 1 The Role of Management in Organisations Prepared by: HKP First Prepared on: 09-12-04; ANS Last Modified on: 12-12-05 Quality checked by: SHA Copyright 2004 Asia Pacific Institute of Information Technology Introduction to Management BM007-3-1-IMT
Topic & Structure of the lesson
What is Management?
Management role in organisations
At the end of this module, YOU should be able to:
Recognise the role of management in business
Recognise the functions of managers
Recognise the levels of managers
Recognise Management skills.
Key Terms you must be able to use
If you have mastered this topic, you should be able to use the following terms correctly in your assignments and exams :
‘ To manage is to forecast and plan, to organise, to command, to coordinate and to control.’
H. Fayol (1916)
The process of working with people and resources to accomplish organisational goals
P rocess of achieving organisational goals by engaging in the four major functions of PLANNING , ORGANISING , LEADING, and CONTROLLING
M anagement is an ONGOING ACTIVITY , entails reaching important goals, and involves knowing how to perform the major functions of management
Definition of Management
Definition of Management II
‘ Five areas of a management constitutes the essence of proactive performance in our chaotic world:
(1) an obsession with responsiveness to customers,
(2) constant innovation in all areas of the firm,
(3) partnership – the wholesale participation of and gain sharing with all people connected with the organisation,
(4) leadership that loves change (instead of fighting it) and instills and shares an inspiring visions, and
(5) control by means of simple support systems aimed at measuring the ‘right stuff’ for today’s environment.’
T. Peters (1988)
Four Functions of Management
Decisions and the Management Functions Planning Organizing Leading Controlling
What are the organization’s long-term objectives?
What strategies will best achieve the objectives?
What should the short-term objectives be?
How many subordinates should report to me?
How much centralization is appropriate?
How should jobs be designed?
How should employees be motivated?
What is the most effective leadership style?
When should conflict be stimulated?
What organizational activities should be controlled?
When is a performance deviation significant?
What is the best management information system?
Management Function Typical Decisions Managers Face
PLANNING is the process by which the organisation or any particular part of it determines what is to be done.
It involves: -
Forecasting – analysing known information in order to predict future conditions;
Goal setting – the determination of what the organisation wishes to achieve in the relevant time span.
Planning goal setting and process to achieve them
Prog ramme planning
Planning activities include analysing current situations, anticipating the future, determining objectives, deciding in what types of activities the company will engage, choosing corporate and business strategies, and determining that resources needed to achieve the organisation’s goals.
It is important to understand where the organisation is coming from and what the future may be like
This requires information
The Benefits of Planning
Enhances decision making
Fosters a sense of purpose
Provides a unifying framework
A Case of Bad Planning
ORGANISING involves determining and noting activities needed to achieve the objectives of the undertaking, grouping these and assigning such groups of activities to manager, ensuring effective delegation of authority to enable activities to be carried out and providing co-ordination of authority relationships (Appleby, 1994)
Organising is assembling and coordinating the human, financial, physical, information and other resources needed to achieve goals.
Organizing will work towards maximum efficiency and minimum waste
Organizing tasks, resources, structure
Departmentalization, organizational structure
This is the story of four people named Everybody, Somebody, Anybody, and Nobody. There was an important job to be done and Everybody was asked to do it. Anybody could have done it, but Nobody did it. Somebody got angry about that, because it was Everybody's job. Everybody thought Anybody could do it, but Nobody realized that Everybody wouldn't do it. Consequently, it wound up that Nobody told Anybody, so Everybody blamed Somebody
IF ORGANISATION STRUCTURE DON'T EXIST.....
Leading is stimulating people to be high performers. It is directing, motivating and communicating with employees, individually and in groups.
Involves close day-to-day contact with people, helping to guide and inspire them toward achieving team and organising goals.
Leading takes place in teams, departments, and divisions and at the tops of entire organisation
Leadership influencing the behavior of organizational member
D evelop ing, training
CONTROL is the process of monitoring and regulating performance to ensure that it conforms to the plans and goals of the organisation
It has to be continuous monitoring
When managers implement their plans, they often find that things are not working out as planned. The controlling function makes sure that the goals are met.
It also involves taking the appropriate corrective action to ensure that what is actually happening is in accordance with expectations of the planning process
2.Establishing what needs to 2.Motivating activities to
strategy done all involved ensure that
3.Developing 2.How it will parties they are
subplans be to done 3.Resolving accomplished
coordinate 3.who is to do conflicts as planned
Resulting in Achieving the organization’s stated purpose
Story of KMART & Wal-Mart
How did Wal-Mart founder Sam Walton and his managers formulate and implement strategies that helped the company overtake Kmart
If you were stepping in as Kmart’s new CEO, what strategies might you adopt to help chain survive?
Wal-Mart formulated & implemented strategies that have made it one of America’s most successful companies
Kmart failed to cope with increased competition and changing customer expectations
“ Kmart’s new CEO and other top executives analyze the situation to formulate a strategy that will suit Org strengths as well as fit changing economic times if the chain is to survive in competitive market ”
Senior executives responsible for the overall management and effectiveness of the organisation
Often referred to as strategic managers, long term planning
Tactical managers who are responsible for translating the general goals and plans into more specific objectives and activities
Called tactical managers, translates goals into specific objectives
Operational managers, who supervise the operational activities
Called operational managers. Directly involved in non management employees and implementing specific plans
Creating a context for change.
Developing attitudes of commitment and ownership in employees.
Creating a positive organizational culture through language and action.
Monitoring their business environments.
Planning and allocating resources to meet objectives.
Coordinating and linking groups, department and divisions.
Monitoring and managing the performance of the subunits and individual managers who report to them.
Implementing the changes or strategies generated by top managers.
Managing the performance of entry-level employees.
Teaching entry-level employees how to do their jobs.
Making detailed schedules and operating plans on middle management’s intermediate range plans.
Exhibit 1–1 Managerial Levels
Levels of Management 3 Top Level Management Middle Level Management Front-Line Management CEO COO CIO General Mgr Plant Mgr Regional Mgr Office Manager Shift Supervisor Department Manager Team Leader
Decisions Business-Team Managers Make Accounting Manger Finance Manager HR Manager Production Manager Sales Manager
What accounting firm should we use?
Who should process payroll?
What bank should we use?
Should we sell bonds or stock?
Where should we recruit for employees?
Should we set up a testing program?
Which supplier should we use?
Should we build a new plant?
Which sales rep should we use in this area?
Should we start this advertising campaign?
Manager Examples of Decisions These Managers Face
Traditional Objective Setting Individual Employee’s Objective Top Management’s Objective Department Manager’s Objective Division Manager’s Objective “ Increase profits, regardless of the means” “ I want to see a significant improvement in this division’s profits” “ We need to improve the company’s performance” “ Don’t worry about quality: just work fast”
The ability to perform an specific tasks involving a particular methods or process
E.g. accounting, finance, technical skills
Conceptual and decision Skills
The ability to recognize complex and dynamic issues, ability to resolve problems
E.g. overall objectives, mission, vision, overview of business functions
Interpersonal and Communication skills
People skills, the ability to lead, motivate, and communicate effectively with others
Important to become a successful manager
BASIC SKILLS FOR MANAGERS Technical skills Conceptual skills Human skills Ability to use specific knowledge, techniques, and resources Ability to work with, communicate with, and understand other people Ability to see the overall organization and integrate the parts of the sy s tem
Skill Types Needed
What Companies Look for in Managers
Ability to work with others
Ability to analyze, think and see the organization as a whole
A desire to be in charge
Raw material Human Resources Energy Financial resources Information Equipment Organisation Transformation Processes Goods Services Feedback Inputs outputs EXTERNAL ENVIRONMENT
Organisation – A managed system designed and operated to achieve a specific set of objectives
Efficiency – The ratio of effective output to the input required to achieve it. Doing things right
Effectiveness – Achievement of goal. Doing the right thing.
Synergy – The sharing of benefits across system parts, resulting in a whole that is greater than then the sum of parts.
MANAGEMENT The process of administering and coordinating resources effectively and efficiently in an effort to achieve the goals of the organization.
MANAGEMENT EFFECTIVENESS Long term measure of how well an organization achieves its objectives EFFICIENCY Short term measure of how well an organization uses it resources GOAL A desired future states that contributes to the fulfillment of the organization's mission MISSION = Reason for existence EFFECTIVENESS Long term measure of how well an organization achieves its objectives EFFICIENCY Short term measure of how well an organization uses it resources GOAL A desired future states that contributes to the fulfillment of the organization's mission
“ Doing the right thing”; goal attainment
Determine by the market
Establishes what price you can command
Measures: sales, market share, etc.
“ Doing the thing right”
Ratio of output to input
Determines price you must charge
Measures: operating profit, unit cost structure, etc.