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Chap1 Management Introduction
 

Chap1 Management Introduction

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  • Managers are continually faced with the need to make decisions: that is to choose from among the available alternatives. Most decisions are prompted by problems, and problem solving always involves making decisions; therefore, the terms decision making and problem solving can be used interchangeably. Decision making is often subject to distortions and biases because it is usually a judgmental, not a mechanical, process. Planning, leading, organizing, and controlling are the basic management functions. As the table above shows, each function calls for decisions: which plan to implement, what goals to choose, which people to hire.
  • Plans are methods formulated for achieving a desired result. Planning is the process of establishing objectives and courses of action, prior to taking action. At a minimum, plans should specify what you will do, how you will do it, and when you will get it done. Goals, or objectives, are the specific results you want to achieve. Planning offers a number of benefits. You get to make decisions ahead of time, in your home or office, and with the luxury of having enough time to do research and weight your options. Planning provides direction and a sense of purpose. A plan provides a unifying framework against which decisions can be measured. Planning can also help identify potential opportunities and threats and at least reduce long-term risk. Planning facilitates control. Control means ensuring that activities conform to plans, according to the following three-step process: plans are set, performance is measured against these standards, and deviations are identified and corrected.
  • The jobs and responsibilities of the four kinds of managers are shown in Exhibit 1.2.
  • Every manger on the company’s business team makes decisions (see the table above). For example, the accounting manager decides what outside auditing firm to use and how many days a customer can be allowed to wait before it pays its bills. The sales manager decides which sales representatives to use in each region and which advertising agency to hire. The production manager decides between alternative suppliers and whether or not to recommend building a new plant.

Chap1 Management Introduction Chap1 Management Introduction Presentation Transcript

  • 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
    • management themes.
    • 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.
    Learning Outcomes
    • 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
    • Lecture 11
    • Product life cycle and management of new product development.
    • Lecture 12
    • Overview of financial management. Cash flow management and budgeting
    • Lecture 13
    • Current Issues at Workplace
    Topics we will cover
    • Essential Reading:
    • Kathryn K. Bartol and David C. Martin, (1998), Management ; Int. Edition, Mcgraw-Hill
    • Bateman Snell, (1999), Management ; Fourth Edition; Mcgraw-Hill
    • Naylor, J, (1999), Management; FT Pitman
    • Davis, D, (1997), The Art of Managing Finance; Third Edition; Mcgraw-Hill.
    What support is available for you
    • Essential Reading:
    • Drucker P. (1999). Innovation and Entrepreneurship . Butterworth.
    • (ISBN 0-7506-1908-2) 
    • Further Reading:
    • Schermerhorn Jr., Chappell, D., Introducing Management
    • (ISBN: 0471371939)
    • Stephen P. Robbins , Mary Coulter , Management (8th Edition) Pearson Education (ISBN: 0131439944)
    What support is available for you
    • Magazines:
    • Forbes magazine
    • Fortune magazine
    • BusinessWeek
    • Journals, newspaper articles!
    • The List goes on……take the initiative!
    Additional Reference Materials
    • Assessment components
        • Final exam (2 hours) 50%
        • Group Presentation 50%
    How you will be assessed
  • Taking Attendance
    • Taking attendance
      • 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
  • Learning Outcomes
    • 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 :
    • Management
    • Planning
    • Organising
    • Controlling
    • Leading
    • Efficiency
    • Effectiveness
    • Synergy
    • ‘ 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
            • Snell 1999
    • 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.
      • Decision making
    Planning
  • Planning goal setting and process to achieve them
    • Forecasting
    • Goal setting
    • Prog ramme planning
    • Scheduling
    • Costing
    • Process 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
    Planning
  • The Benefits of Planning
    • Enhances decision making
    • Fosters a sense of purpose
    • Provides a unifying framework
    • Minimizes risk
    • Facilitates control
  • 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
    Organising
  • Organizing tasks, resources, structure
    • Job design
    • Resource allocation
    • Coordination
    • 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
    Leading
  • Leadership influencing the behavior of organizational member
    • Selection
    • D evelop ing, training
    • Supervising
    • Decision
    • Motiv ation
    • Coaching
    • Communication
  •  
    • 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
    Controlling
  • Controlling setting standards, measuring, taking measures
    • Setting standards
    • Monitoring
    • Evaluation
    • Feed back
  • Management Functions
    • Planning Organizing Leading Controlling
    • 1.Defining goals 1.Determining 1.Directing Monitoring
    • 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
    • activities it
    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?
    Introduction
    • Wal-Mart formulated & implemented strategies that have made it one of America’s most successful companies
    • While
    • 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 ”
  • Management levels
    • Top-level Managers
      • Senior executives responsible for the overall management and effectiveness of the organisation
      • Often referred to as strategic managers, long term planning
    • Middle-level Managers
      • 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
    • Front-line Managers
      • Operational managers, who supervise the operational activities
      • Called operational managers. Directly involved in non management employees and implementing specific plans
  • Top Managers
    • Responsible for:
    • 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.
  • Middle Managers
    • Responsible for:
    • 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.
  • Front-Line Managers
    • Responsible for:
    • 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”
  • Management Skills
    • Technical Skills
      • 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
    • Technical Skills
      • Specialized knowledge
    • Human Skill
      • Ability to work with others
    • Conceptual Skill
      • Ability to analyze, think and see the organization as a whole
    • Leadership Skill
      • A desire to be in charge
  • Concepts
    • Systems Theory
    Raw material Human Resources Energy Financial resources Information Equipment Organisation Transformation Processes Goods Services Feedback Inputs outputs EXTERNAL ENVIRONMENT
  • Concepts
    • 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
  • Effectiveness
    • “ Doing the right thing”; goal attainment
    • Determine by the market
    • Establishes what price you can command
    • Measures: sales, market share, etc.
  • Efficiency
    • “ Doing the thing right”
    • Ratio of output to input
    • Determines price you must charge
    • Measures: operating profit, unit cost structure, etc.
    • Means Ends
    • Efficiency Effectiveness
    Efficiency & Effectiveness Resource usage Goal attainment Low Goals High waste attainment
  •  
  • Synergy
    • When Org parts interact to produce a joint effect that is greater than the sum of the parts acting alone, Synergy occurs
    • Performance gains that result when individuals and departments coordinate their actions
    • Team members share equipment, customer lists, and other information that enables these small companies to go after more business than they ever could have without the team approach
  • Example
    • AT&T synergy btw communication services & hardware “One-stop shop
    • Two or more divisions with in a diversified company can utilize the same manufacturing facilities, distribution channels, advertising campaigns
    Share Resources Reduce Cost Charge lower Prices Attract More Customers Competitors
  • Change and the future of management
    • Globalization
    • Total Quality
    • The learning organisation
  • QUESTIONS Slide of 18