MANAGEMENT - Management
is the process of reaching organizational goals by working with and through
people and other organizational resources. Characteristics of
management: It is a process or series of continuous and related activities. It involves and concentrates on reaching organizational goals. It strives for organizational goals by working with and through people and other organizational resources.
management: It is a process or series of continuous and related activities. It involves and concentrates on reaching organizational goals. It strives for organizational goals by working with and through people and other organizational resources.
FUNCTIONS,
ROLES & SKILLS OF A MANAGER (NOVEMBER 9, 2017)
4
FUNCTIONS OF MANAGEMENT
1.
PLANNING
- choosing tasks that must be performed to attain organizational goals, to
outline how the tasks must be performed and to indicate when they should be
performed.
2.
ORGANIZING
- the act of assigning the tasks developed in the planning stages to various
individuals or groups to create a mechanism to put plans into action.
•
According
to Henry Fayol, “To organize a business is to provide it with everything useful
or its functioning i.e. raw material, tools, capital and personnel’s”.
•
ORGANIZING
->STAFFING- Recruiting, selecting, appointing the employees, assigning
duties, maintaining cordial relationship and taking care of grievances of
employees.
•
—
Training and Development of employees, deciding their remuneration, promotion
and increments.
•
—
Evaluating their performance.
3.
LEADING/INFLUENCING
- Influencing is also known as motivating, leading or directing by guiding the
activities of organization members towards the fulfillment of the goals.
The purpose of influencing is to
increase productivity.
4.
CONTROLLING
- is both a managerial function and a continuous process where the manager
performs the following roles:
Ø gathers information
that measures performance;
Ø compares present
performance to pre-established performance norms; and
Ø determines the next
action plan and modification for meeting the desired performance parameters.
LEADERS VS.
MANAGERS
• Leadership is about
getting people to understand and believe in your vision and to work with you to
achieve your goals.
• Managing is
more about administering and making sure the day-to-day things are happening as
they should.
FORMS OF
BUSINESS ORGANIZATIONS
Organization-# A group of
people (or businesses, etc.) who work together for an explicit purpose, with
organized rules and structure.
Business Organization - # an
individual/group of people that collaborate to achieve certain commercial goals.
Some business organizations are formed to earn income for owners. Other, called
nonprofits, are formed for public purposes. These businesses often raise money
and utilize other resources to provide or support public programs.
3 BASIC FORMS OF BUSINESS
ORGANIZATIONS
1. Sole
Proprietorship-a business owned by only one person.
š
The owner faces unlimited
liability; meaning, the creditors of the business may go after the personal
assets of the owner if the business cannot pay them.
2.
Partnership - Two or more owners
š
Partnership agreement
(Express or implied, written or oral)
š
Presumption of equal
rights of management
š
Presumption of equal
allocation of profits & losses
š
Presumption of agency
3.
Corporation - has a separate legal personality from its owners. Ownership in a
stock corporation is represented by shares of stock.
š
Limited Liability
Company (LLC)- Hybrid between a partnership & a corporation
š
One or more owners
š
Limited liability
š
No perpetual
existence
š
not incorporated;
hence, it is not considered a corporation.
š
The owners
(stockholders) enjoy limited liability but have limited involvement in the
company's operations.
COOPERATIVE - owned by a group of individuals and is operated
for their mutual benefit.
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Examples: water and
electricity (utility) cooperatives, cooperative banking, credit unions, and
housing cooperatives.
MANAGERIAL
FUNCTION BASED ON THE LEVEL OF MANAGERIAL POSITION
•
First-level
supervisors – 1st level manager
•
Middle
managers – Division/Dept. Heads
•
Top
managers – top level of the organization-CEO, VP, BOD)
ROLES
OF A MANAGER
- INTERPERSONAL ROLES – leader,
liaison, figurehead
- INFORMATIONAL ROLES – monitor,
disseminator, spokesperson
- DECISIONAL ROLES – entrepreneur,
disturbance handler, resource allocator, negotiator
SKILLS
OF A MANAGER
SKILL – the ability to
perform a specific task to achieve the desired results.
- TECHNICAL SKILL – abilities/expertise
to do the job required.
- HUMAN SKILLS – interpersonal
skills
- CONCEPTUAL SKILLS – think
critically and analytically
THE 5 LANGUAGES OF LOVE IN MANAGEMENT By Dr. Gary Chapman (1995)
- Words of Affirmation - uses
words to communicate a positive message to another person.
- Quality Time - giving the person your
focused attention.
- Acts of Service - providing
assistance.
- Tangible Gifts - physical
items.
- Physical Touch - human to
human contact.
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Management Theories – set
of general rules = guide the managers to manage.
4 MANAGEMENT THEORIES
1. Classical
Theories
a.
Scientific Management - proposed by Taylor (1880), Jill Perth and Gantt (Chart)
was developed by the impact of natural methodology and it stressed rational
thinking based on the scientific work to improve individual staff capacity. (principles of efficiency & solution=improvement)
b.
Administrative View - proposed by Henri Fayol and Max Weber highlighted the
importance of operational efficiency on the whole organization to develop a
general theory explaining the good management of the elements required which
include infrastructure. (Institution
& Order = Goals) (Organizational structure)
• Henri
Fayol - French Management Theorist - Father
of Modern Operational Management, POCCC – Plan, Organize, Command, Coordinate,
Control
2.
Behavioral Theories
a. Hawthorne Experiment (1924) - Classical
Theory is mainly focused on the organization and staff with mechanical
perspective concentrated on the point of view of human nature, importance of
individual attitudes and behaviors, methods for managers to motivate employees
for improving productivity.
Workers
attitudes toward their managers affect the level of workers’ performance.
b. Interpersonal Perspective -proposed
by Maslow and McGregor that provided a basic foundation of the behavioral view
on human relations and was further derived from the Hawthorne experimental
results showing that the productivity of employees is affected by the
interaction and affective atmosphere of the management that leads to better
performance.
Douglas McGregor (1957) - THEORY X & Y
•
THEORY X –
negative view: employees as unmotivated & unwilling workers = close
supervision & control thru penalty.
•
THEORY Y –
positive view: employees as energetic, creative & willing workers =
encouragement, delegation and trust
3.
Quantitative Theory
a.
Management science and
operations management perspective view - Originated in World
War II and revealed that the spirit of scientific management commitment, use of
quantitative measurement and computer modeling theory such as analysis of
complex business problems.
4.
New Theories
a. Contingency Perspective - how to
adapt the environmental change and believes that there is no "universal solution"
for the management to solve such conditions since all of management challenges
depend on varying circumstances.
b. Systems Perspective (1890-1900) - System
POV + Contingency Perspective = New Theory (STANDARD)
- It successfully meets the inconsistencies that sprouted in the
Classical and Behavioral Theories.
FORCES IN THE FIRM’S ENVIRONMENT (PESTN)
1.
POLITICAL FORCES- # LEGAL,
REGULATIONS, POLITICAL ORIENTATIONS, GOVERNMENT POLICIES, AND COMPLIANCE
PROCEDURES OF GOVT. BODIES. # Taxes,
business reg., fin. Report
2.
ECONOMIC FORCES- #
economic conditions relevant to business.
# employment
rates, income levels, inflation rates, savings, insurance, investments rates,
conversion rates of money.
3.
SOCIOCULTURAL FORCES
- # people’s characteristics and lifestyles that impinge on the operations of a
firm.
# social
norms, customs, and values, POPULATION, TRENDS, HEALTH, CONSUMER TASTES, ETC.
š *POTENTIAL MARKET- COMPOSED OF PEOPLE COMING FROM DIFFERENT
COUNTRIES AND CULTURES.
4.
TECHNOLOGICAL FORCES
- # INNOVATIONS IN DIGITAL TECHNOLOGY, INVENTIONS IN TRANSPORTATION AND
COMMUNICATIONS, BREAKTHROUGHS IN MEDICAL SCIENCE.
# CELLPHONES,
BULLET TRAINS, ETC.
5.
NATURAL RISKS - #
CLIMATE CHANGE, GLOBAL WARMING, DISASTER.
# FLOOD,
TYPHOON, EARTHQUAKES, LANDSLIDES, VOLCANIC ERUPTIONS, TSUNAMIS, STORM SURGES.
ENVIRONMENTAL SCANNING (ES) - # PROCESS OF ASSESSING THE
INTERNAL AND EXTERNAL OPERATING ENVIRONMENT OF A FIRM TO ANALYZE ITS SWOT.
2 Types OF Environment
- Public
environment – the people as a whole
- Private
environment – particular or exclusive person, group or organization.
TWO ELEMENTS OF E.S.
1. EXTERNAL ANALYSIS – EXAMINES THE OPPORTUNITIES AND THREATS IN
THE FIRM BASED ON THE DIFFERENT FORCES IN THE ENVIRONMENT, ANALYSIS OF
COMPETITIVE FORCES-THE COMPETITORS, BUYERS, SUPPLIERS, & SUBSTITUTE
FOR THE FIRM’S PRODUCT OR SERVICE.
2. INTERNAL ANALYSIS – EXAMINES THE STRENGTHS AND WEAKNESSES OF
THE CONDITIONS INSIDE THE FIRM SUCH AS SKILLS AND COMPETENCIES OF EMPLOYEES,
CAPACITIES OF RESOURCES, ORGANIZATIONAL CULTURE, AND TEAM SPIRIT.
MODULE 4. THE FIRM AND ITS ENVIRONMENT
COMPETITIVE ADVANTAGE - the
distinguishing features / characteristics of a business organization that
enable it to perform better than rival organizations.
2 ENVIRONMENTAL FACTORS
- Environmental
Uncertainty – lack of complete info about the current and future
environment of the firm.
- Environmental
Complexity – presence of numerous factors prevailing in the environment
that change over time.
LOCAL & INTERNATIONAL BUSINESS ENVIRONMENT OF THE FIRM
LOCAL BUSINESS ENVIRONMENT
š THE
SPECIFIC INDUSTRY TO WHICH THE COMPANY BELONGS AND DIRECTLY DEAL WITH.
- THE CUSTOMERS, SUPPLIERS, COMPETITORS, REGULATORS AND
EMPLOYEES.
INTERNATIONAL BUSINESS ENVIRONMENT
š THE
BUSINESS ACTIVITIES PERFORMED BY COMPANIES OPERATING IN FOREIGN LOCATIONS.
UNDERSTANDING THE LOCAL ENVIRONMENT THROUGH AN INDUSTRY ANALYSIS
# INDUSTRY – A GROUP OF COMPANIESOFFERING THE SAME OR SIMILAR
PRODUCTS OR SERVICES.
PORTER’S FIVE FORCES MODEL
1. INDUSTRY COMPETITORS –THE RIVALRY AMONG EXISTING FIRMS.
2. SUPPLIERS (PRODUCERS) – THE BARGAINING POWER OF SUPPLIERS OR
PRODUCERS.
3. BUYERS (CONSUMERS) – THE BARGAINING POWER OF BUYERS AND
CONSUMERS.
4. POTENTIAL ENTRANTS– THE THREAT OF NEW ENTRANTS.
5. SUBSTITUTES – THE THREAT OF SUBSTITUTE PRODUCTS THAT WILL
SERVE AS COMPETITORS TO EXISTING PRODUCTS.
UNDERSTANDING THE INTERNATIONAL ENVIRONMENT THROUGH GLOBAL
MANAGEMENT
# GLOBAL MANAGEMENT (SCHERMERHORN 2011) – MANAGEMENT OF
BUSINESSES AND ORGANIZATIONS WITH OPERATIONS IN MORE THAN ONE COUNTRY.
GLOBALIZED MARKET ENVIRONMENT
š FREE
TRADE AGREEMENTS
š REGIONAL
ECONOMIC ALLIANCES AMONG NATIONS
š TECHNOLOGICAL
DEVELOPMENTS/INNOVATIONS
EX. AFTA - ASEAN FREE TRADE AGREEMENT
APEC – ASIA PACIFIC
ECONOMIC COOPERATION
E-COMMERCE
(TECHNOLOGY
MIGRATION OF LABOR
ACROSS COUNTRIES
GLOBALIZATION
š THE
GROWING INTERDEPENDENCE AMONG PEOPLE AROUND THE WORLD.
- EXAMPLE: CELL PHONE
GADGET
4 WAYS TO COMPETE IN LOCAL & INTERNATIONAL BUSINESS
- LOWER
COST
- QUALITY
– UNIQUE OR MORE DESIRABLE FEATURES
- SPEED
(FLEXIBILITY) – DELIVERY, RESPONSE
- INNOVATION
– NEW WAYS/FEATURES
3 WAYS TO EXPAND INTO INTERNATIONAL & GLOBAL BUSINESS
- EXPORTING-SELLING
LOCALLY MADE PRODUCTS IN FOREIGN COUNTRIES & IMPORTING – BUYING
FOREIGN-MADE, SELL IN LOCAL MARKETS
- LICENSING
& FRANCHISING
- JOINT
VENTURES & STRATEGIC ALLIANCES
