chap1 management introduction

Prepared by: HKP First Prepared on: 09-12-04; ANS Last Modified on: 12-12-05Quality checked by: SHA

Copyright 2004 Asia Pacific Institute of Information Technology

Introduction to ManagementBM007-3-1-IMT

INTRODUCTION

Module Code and Module Title Title of Slides

• 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


Topics we will cover

• 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 5Planning and Decision Making



• Lecture 6Management & Motivation

• Lecture 7Leadership

• Lecture 8Team and groups and work group processes

• Lecture 9 Control

• Lecture 10 Organisational Culture in Organisation and Management



• 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


What support is available for you

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)


Additional Reference Materials

Magazines:

- Forbes magazine

- Fortune magazine

- BusinessWeek

• Journals, newspaper articles!

• The List goes on……take the initiative!


How you will be assessed

• Assessment components

• Final exam (2 hours) 50%• Group Presentation 50%


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.

Module Code and Module Title Title of Slides Slide 11 of 18

QUESTIONS

Prepared by: HKP First Prepared on: 09-12-04; ANS Last Modified on: 12-12-05Quality checked by: SHA

Copyright 2004 Asia Pacific Institute of Information Technology

Introduction to ManagementBM007-3-1-IMT

Lecture 1 The Role of Management in

Organisations


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


Definition of Management

• ‘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

• Process of achieving organisational goals by engaging in the four major functions of PLANNING, ORGANISING, LEADING, and CONTROLLING

• Management is an ONGOING ACTIVITY, entails reaching important goals, and involves knowing how to perform the major functions 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

• Programme 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


• 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

• Developing, training

• Supervising

• Decision

• Motivation

• 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 Controlling1.Defining goals 1.Determining 1.Directing Monitoring2.Establishing what needs to 2.Motivating activities to strategy done all involved ensure that3.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 inAchieving the organization’sstated purpose


Story of KMART & Wal-MartHow 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

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

CEOCOOCIO

General MgrPlant Mgr

Regional Mgr

Office ManagerShift Supervisor

Department ManagerTeam Leader

Top Level Management

Middle Level Management

Front-LineManagement


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

IndividualEmployee’sObjective

TopManagement’s

Objective

DepartmentManager’sObjective

DivisionManager’sObjective

“Increase profits, regardlessof the means”

“I want to see asignificant improvementin this division’s profits”

“We need to improvethe company’s performance”

“Don’t worry aboutquality: 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 system


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.


The process of administering and coordinating resources effectively

and efficiently in an effort to achieve the goals of the

organization.

MANAGEMENT


MANAGEMENT

EFFECTIVENESSLong term measure of how well an organization achieves its objectives

EFFICIENCYShort term measure of how well an organization uses it resourcesGOALA desired future states that contributes to the fulfillment of the organization's mission

MISSION = Reason for existenceMISSION = Reason for existence

EFFECTIVENESSLong term measure of how well an organization achieves its objectives

EFFICIENCYShort term measure of how well an organization uses it resourcesGOALA desired future states that contributes to the fulfillment of the organization's mission


EffectivenessEffectiveness

• “Doing the right thing”; goal attainment

• Determine by the market• Establishes what price you can

command• Measures: sales, market share, etc.


Efficiency 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

Resourceusage Goal

attainment

Low Goals High

waste attainment

Efficiency & Effectiveness


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

Module Code and Module Title Title of Slides Slide 59 of 18

QUESTIONS