Introduction to Management

What is Management?

Organization Management (efficient/ effective)

Kinds of Managers

Levels of Management Top Managers Middle Managers First- Line Managers Mktg Fin

Opers HR Admn R&D

Managing in different Areas of the Organization

Basic Management Functions (The Management Process) Planning and Decision making Organizing Controlling Leading
Planning & Decision Making Setting the organizations goals & deciding how to achieve them Organizing Determining how best to group activities & resources

Inputs from the environment Human resources Financial Resources Physical Resources Information Resources

Goals achieved Efficiently Effectively

Controlling Monitoring and correcting ongoing activities to facilitate goal attainment Leading Motivating members of the organization To work in the best interests of the organization

Fundamental Management Skills

Technical Skills Interpersonal Skills Conceptual Skills Diagnostic Skills Communication Skills Decision Making Skills Time Management Skills The Art of Management

Evolution of Management
The Historical Context of Management ( pyramids, Alexander the Great, chanakya) The Classical Management Perspective - Scientific Management ( soldiering piece work system) - Administrative Management - Todays Classical Management Perspective (u/s nature of job, right man for right job, piece work system)

The Behavioral Management Perspective - The Hawthorne Studies - The Human Relations Movement Theory X
1. People do not like to work and try to avoid it

Theory Y 1. people do not naturally dislike work, it is a natural part of their lives 2. people are internally motivated to reach objectives to which they are committed

2. people prefer to be directed, to avoid responsibility and to want security ; they have little ambition

- Contemporary Behavioral science in Management ( OB stress, job satisfaction, motivation, leadership) - The Behavioral Management Perspective Today ( employees as valuable resources)

The Quantitative Management Perspective (decision making, economic effectiveness, computers) - Management Science (focuses on development of mathematical models, focuses on equations & models) - Operations Management ( working on the organizational produce, just in time management, root cause analysis, inventory management) - The Quantitative Management Perspective Today (decision making tools, planning and control, resource planning)

Contemporary Management Perspective

The Systems Perspective ( four basic elements)

Inputs from the environment :Material inputs, human inputs, financial inputs and information inputs

Transformation Process :

Outputs into the Environment : Products/ services, profits/ losses, employee behaviors, and information outputs

Technology, operating systems, administrative systems, and control systems

Environment Feedback open systems - closed systems - subsystems - synergy - entropy The Contingency Perspective

An Intergrating Framework
Systems Perspective Recognition of internal interdependence Recognition of environmental influences Contingency Perspective * recognition of the situational nature of management * response to particular characteristics of situation

Classical Management Perspectives Methods for enhancing efficiency and facilitating planning, organizing and controlling

Behavioral Management Perspectives Insights for motivating performance and understanding individual behavior, groups and teams, and leadership

Quantitative Management Perspectives Techniques for improving decision making, resource allocation, and operations

Effective and Efficient Management

Contemporary Management Challenges and Opportunities

Contemporary Management Challenges - globalization - property ownership arrangements - availability of natural resources - role of government in businesses - different behavioral patterns according to cultures and national boundaries - work norms - ethics and social responsibility and their relationship to corporate governance - quality - service focus economy - changing nature of the workforce

The Organizations Environment 1. The External Environment The General Environment - The economic environment ( inflation, interest rates, unemployment) - The Technological Dimension - The Political Legal Dimension - Demographic forces - socio- cultural forces The General Environment
Emp, Owners, Board of Directors

The Task Environment Internal Stakeholders

The Task Environment - Competitors - Customers - Suppliers - Regulators (regulatory agencies, interest group) - Strategic Partners

The Organizations Environment

2. The

Internal Environment - Owners - Board of Directors - Employees - Physical Work Environment

Eg:- Mc Donalds Task Environment

1. Competitors Burger King KFC Subway Hardees 2. Customers * Individual Consumers * Institutional Customers

3. Suppliers Coca Cola Wholesale food processors Packaging manufacturers like tissues, Heinz ketchup sachets 4. Strategic Partners Wal-Mart Disney Petrol Pumps 5. Regulators * Food & Drug Administration * Securities & Exchange Commission * Environment Protection Agency

The Ethical and Social Environment of Management Individual Ethics in Organizations Social Responsibility in Organizations

Arguments for Social Responsibility

Arguments Against Social Responsibility

1. The purpose of business in society is to generate profit for owners

1. Business creates problems and should therefore help to solve them 2. Corporations are citizens in our society Social Responsibility

2. Involvement in social programs gives business too much power 3. There is potential for conflicts of interests

3. Business often has the resources necessary to solve problems 4. Business is a partner in our society, along with the government and the general population

4. Business lacks the expertise to manage social programs

Levels of International Business Lowest Levels of International Activity Highest

Domestic Business

International Business

Multinational Business

Global Business

The International Environment of Management

Levels of International Business Activity ( Approach to Internationalization)

Advantages
Exporting and Importing 1. small cash outlay 2. Little Risk 3. No adaptation necessary 1. Increased Profitability 2. Extended profitability 1. Quick market entry 2. Access to materials & technology 1. Enhanced Control 2. Existing Infrastructure

Disadvantages
1. tariffs and taxes 2. High Transportation costs 3. Government restrictions 1. Inflexibility 2. competition 1. Shared ownership

Licensing Strategic Alliances or Joint Ventures Direct Investment

1. Complexity 2. Greater economic and political risk 3. Greater uncertainty

Workforce Diversity

Baby Boomers born between 1946 and 1964 generation X ( baby Bust or Gen Xers) born between 1965 to 1979 Generation Y ( Net Generation, or Millennium generation or Gen Y) born in or after 1980