Orgma Skuma Flashcards
“Management is a multi-purpose organ
that manages business and manages
managers and manages workers and
work.”
- Peter Drucker
Father of Management
- Peter Drucker
“Is a multi-purpose organ
that manages business and manages
managers and manages workers and
work.” Who said this?
Peter Drucker
“Management is to forecast, to plan, to
organize, to command, to coordinate
and control activitites of others.”
Who said this?
- Henri Fayol
Father of principle of management
- Henri Fayol
Father of Modern Management
- Henri Fayol
“___________ is to forecast, to plan, to
organize, to command, to coordinate
and control activitites of others.”
Management
“Management is to?.”
1) Forecast
2) To plan
3) To Organize
4) To command
5) To coordinate
6) Control activitites of others
“Management is the art of knowing what
you want to do and then seeing that thet
do it in the best and cheaper manner.”
Who said this?
Frederick W. Taylor
Father of Scientific Management
Frederick W. Taylor
Management is the art of knowing what?
what
you want to do and then seeing that the best to
do it, is in the best and cheaper manner
is the art of knowing what
you want to do and then seeing that thet
do it in the best and cheaper manner.”
Management
“Management is the art of getting
things done through people.”
Who said this?
- Mary Parker Follett
“______________ is the art of getting
things done through people.”
Management
“Management is the art of getting
things done through ____________.”
people
is the attainment of organizational goals
effectively and efficiently through
planning, organizing, staffing, directing and
controlling organizational resources.
Management
What is the concept of management?
Management is the attainment of organizational goals
in an effective and efficient manner through
planning, organizing, staffing, directing and
controlling organizational resources.
Characteristics and Nature of Management?
1) Goal Oriented
2) Universal
3) Continuous Process
It is a means to
achieve certain
goals.
goal
oriented
An essential element
of every organized
activity
universal
Ongoing and
never-ending
process
continuous
process
Is a group of people bonded together
with common goals and objectives.
Organization
Organization is a group of people bonded together
with?
common goals and objectives.
An organization is a group of people bonded together
with common goals and objectives. Typically, it
is formed due to the reason of?
human
satisfaction and security.
Characteristics of Organization?
1) Coordination
2) Common Goal
3) Division of Labor
4) Command Level
All people in the group
should be harmonized
Coordination
Every member as a
common ground
Common Goal
Every member has a
role and responsibility
Division of Labor
Has hierarchy of people
that leads the members
Command Level
The period of 1700 to 1800 emphasizes the industrial revolution and
the factory system highlights the industrial revolution and the
importance of direction as a managerial purpose.
Pre-scientific Management
Period (before 1880)
Pre- Scientific Management Period:
The period of ________________ emphasizes the ___________________
1700 to 1800, industrial revolution,
Pre-scientific Management
Period (before _____________)
1880
Highlights the industrial revolution and the
importance of direction as a managerial purpose.
The factory system
the factory system highlights what?
the industrial revolution and the
importance of direction as a managerial purpose.
Important contributors of the Pre-scientific Management Period?
● Charles Babbage
● James Montgomery
● James Watt
● Charles Dupin
is the earliest thought of
management
Classical Theory
Was associated with the ways to manage work and organizations more efficiently.
The classical approach
It is known as scientific management.
The classical approach
the founders of scientific
management and administrative management.
F.W. Taylor and Henry Fayol
The Classical approach falls under?
Classical Theory
It uses scientific methods to analyze the most efficient production process in order to increase productivity.
scientific management
attempts to find a rational way to design an organization as a whole.
administrative management.
It was closely associated with the industrial revolution
and the rise of large- scale enterprise.
Classical Period
It attempts to find methods that increase output of
workers.
Classical Period
It stresses on formal structure of jobs and work
schedules to satisfy individual and organizational needs.
Classical Period
Three main theories in the Classical Period:
1) Scientific Management Theory
2) Fayol’s Classical Organisation Theory
3) Weber’s Bureaucracy Theory
Scientific Management Theory
- who founded it?
Frederick W. Taylor
It was developed because of the need to increase
productivity and increase worker’s efficiency.
Scientific Management Theory
A differential wage rate system was introduced
Scientific Management Theory
Fayol’s Classical Organisation Theory
- Who founded it?
(Henri Fayol)
It was focused on managing the organization as a whole
Fayol’s Classical Organisation Theory
Five functions of management was introduced:
(Planning, Organizing, Staffing, Directing, Controlling)
(Planning, Organizing, Staffing, Directing, Controlling) was introduced in what theory?
Fayol’s Classical Organisation Theory
- The aim is to increase production at the (Taylor or Fayol?
shop level
Taylor (Father of Scientific Management)
- The focus is on improving output (Taylor or Fayol?)
through work simplification and
standardisation.
Taylor (Father of Scientific Management)
- The theory studies management from (Taylor or Fayol?)
bottom to top.
Taylor (Father of Scientific Management)
- It is based on scientific observation and (Taylor or Fayol?)
measurement.
Taylor (Father of Scientific Management)
- It covers narrow perspective of management (Taylor or Fayol?)
theory
Taylor (Father of Scientific Management)
The aim is to increase overall production of the
organisation.
Fayol (Father of Principles of Management)
The focus is on developing principles that can be
applied to coordinate internal activities of the
organization-
Fayol (Father of Principles of Management)
Management is viewed from top to bottom.
Fayol (Father of Principles of Management)
It is based on personal experience later translated
into universal truth.
Fayol (Father of Principles of Management)
It has wider perspective and. therefore, wider
applicability.
Fayol (Father of Principles of Management)
Weber’s Bureaucracy Theory
Who made it? Even tho it’s very obvious…
Max Weber
The rational-legal authority system/model was introduced
characterized by:
-Division of work
-Rules and Regulations
-Hierarchy of authority
-Record keeping
-Impersonal relations
is built on the base of classical theory.
Neoclassical Theory
concentrated on job content and
management of physical resources
Classical theory
gave greater emphasis to individual and group
relationship in the workplace.
neoclassical
theory
Pointed out the role of psychology
and sociology.
neo-classical theory
neo-classical theory Pointed out the role of____________
psychology
and sociology.
Modern Theory is also known as?
(System Approach)
considers an organization as an adaptive
system which has to adjust to changes in its environment.
Modern theory
It was developed as a synthesis of quantitative theory,
systems theory, contingency theory and operational theory
of management.
Modern theory
Modern Theory was developed for?
quantitative theory,
systems theory, contingency theory and operational theory
of management.
is responsible for the entire
organization particularly in
realizing its goals and the
attainment of its vision and
mission.
The
Manager
Levels of management?
Top Management
Middle Management
Lower Management
The manager is responsible for what?
entire
organization particularly in
realizing its goals and the
attainment of its vision and
mission.
Three Levels of Managers
1) Top Level Managers
2) Middle Level Managers
3) Lower Level Managers
What managers are this?
(BODs, CEO, President)
Top Level
Managers
What managers are this?
(general, branch and
department)
Middle Level Managers
What type of managers are these
(supervisory and
operative)
Lower Level
Managers
Control and oversee the organization
Top Level Managers
Develop goals, strategic plans, policies and make decisions
Top Level Managers
Perform executory functions
Middle Level Managers
Manage the day-to-day activity of the business, monitors performance
Middle Level Managers
Referred to as line managers
Lower Level Managers
oversee and direct the employees
Lower Level Managers
Five Functions of a Manager?
1) Planning
2) Organizing
3) Staffing
4) Directing
5) Controlling
This involves identifying the goals of the organization, and the best way(s) to accomplish these goals.
Planning
This involves assigning responsibilities to employees who have the competence and ability to complete the task.
Organizing
It involves hiring the right employee for the job. The main purpose of staffing is to put the right person on right job.
Staffing
It involves coordinating the entire organization so it
performs efficiently to achieve its goals.
Directing
Elements of Directing
1) Supervision
2) Leadership
3) Motivation
4) Communications
overseeing the work
Supervision
guides and influences
Leadership
inspiring, stimulating or encouraging
Motivation
passing information, experience, opinion
Communications
It involves with monitoring or checking the performance of
employees, comparing it with organizational goals, and taking corrective
actions when necessary.
Controlling
10 Roles of a Manager (Categories)
Interpersonal, Informational, Decisional
10 Roles of a Manager (with category)
1) Figurehead Interpersonal
2) Leader Interpersonal
3) Liaison Interpersonal
4) Monitor Informational
5) Disseminator Informational
6) Spokesman Informational
7) Entrepreneur Decisional
8) Disturbance Handler Decisional
9) Resource Allocator Decisional
10) Negotiator Decisional
Performs ceremonial duties
Handing out awards
Cutting ribbons of business openings
Figurehead
Building a team
Coaching & motivating members
Leader
Develops and maintain a network
Intermediary for business partnerships
Liaison
It involves building harmonious relationship among members of the organization.
Interpersonal Roles
It involves developing contacts and linkages to further the reach and influence of the business.
Informational Roles
Seeks out and gathers information relevant to the organization
Monitor
Provides information where it is needed in the organization
Disseminator
Transmits information to people outside the organization
Spokesperson
Involves developing new business plans, strategies, or a new project.
Decisional Roles
Searches out new opportunities and initiates change
Entrepreneur
Handles unexpected events and crises
Disturbance handler
Designates the use of financial, human, and other organizational resources
Resource allocator
Leads the contracts and agreements behalf of the organization.
Negotiator
3 Skills of an Effective Manager
1) Technical Skills
2) Human Skills
3) Conceptual Skills
These are skills that will be required to increase sales, design different types of products and services, market the products and services, etc
Technical Skills
The knowledge or ability of a manager for more abstract thinking. He can easily see the whole through analysis and diagnosis of different states
Conceptual Skills
The knowledge and ability of a manager to work with people.
Human Skills
It refers to those aspects of the surroundings of
business enterprise, which affect or influence
its operations and determine its effectiveness.
Business Environment
It is the process of gathering information about events and their relationships within an organization’s internal and external environments.
Environmental Scanning
Purposes of Environmental Scanning:
1) To help management determine the future direction of the organization.
2) It is also helpful in making good and effective company policies.
Classifications of Business Environment:
1) Business Environment
2) Internal Environment
3) External Environment
Factors or events existing within a firm
INTERNAL ENVIRONMENT
Factors or events outside the firm
EXTERNAL ENVIRONMENT
Controllable factors
INTERNAL ENVIRONMENT
Uncontrollable factors
EXTERNAL ENVIRONMENT
Strengths and weaknesses
INTERNAL ENVIRONMENT
Opportunities and threats
EXTERNAL ENVIRONMENT
Company only
INTERNAL ENVIRONMENT
All companies operating in the industry
EXTERNAL ENVIRONMENT
Business Strategy, functions and decisions
INTERNAL ENVIRONMENT
Business survival, growth, reputation, expansion, etc.
EXTERNAL ENVIRONMENT
Factors of Internal Environment:
1) Plans & Policies
2) Financial Resources
3) Corporate Image
4) Culture
5) Human Resources
The plans and policies of the firm should be properly framed taking into consideration the objectives and resources of the firm.
Plans & Policies
The survival and success of the firm largely depends n the quality of human resources.
Human Resources
A firm needs adequate funds to meet its working capital and fixed capital requirements.
Financial Resources
A firm should develop, maintain, and enhance a good corporate image in the minds of employees, investors and customers.
Corporate Image
A good management relationship helps in increasing the morale of the employees and motivates them to exert effort in the business.
Culture
Factors of External Environment (with label)
Shareholders - Microenvironment
Employees - Employees
Customers - Customers
Competitors - Competitors
Suppliers - Suppliers
Economic Factors - Macro environment
Political & Legal - Political & Legal
Technological - Political & Legal
Socio-Cultural - Political & Legal
are the actual owners of the company, as they invest their money in the company
Shareholders
It is very important for the firm, to employ the right people, retain and keep them motivated so as to get the best out of them.
Employees
are given the most important place in every business, because, the products are created and promoted for customers only.
Customers
are the business rivals, which operate in the same industry, offering the same product and services, and cater to the same audience.
Competitors
To carry out the production process, the raw material is required which is provided by the suppliers.
Suppliers
has a direct impact on a company’s business operations.
behavior of the supplier
Macro Environmental Factors:
Economic
Environment
Technological
Environment
Business
Environment
Social
Environment
Legal
Environment
Political
Environment
The political and legal environment consists of the laws, rules, regulations and policies which the company needs to adhere.
- Political-Legal Environment
Tax Policies
Labor Policies
Environmental Policies
- Political-Legal Environment
The economic conditions of the region and the country as a whole has a significant bearing on the company’s profitability.
Economic Factors
Inflation Rates
Interest Rates
Current Economic Climate
Economic Factors
The attitude of the society to a business also depends on whether the firms have been responsive to the needs and wants of the society.
Socio-Cultural Factors
Age Demographics
Lifestyle
Traditions
Beliefs
Socio-Cultural Factors
This comprises the innovations and improvements in methods, machines and materials.
- Technological Factors
Research and development
Threats from competing technologies
- Technological Factors
It involves looking at the strengths and weaknesses of your business capabilities, and any opportunities and threats to your business.
SWOT Analysis
Once you identify these, you can assess how to:
capitalize on your strengths
minimize the effects of your weaknesses
make the most of any opportunities
reduce the impact of any threats
(things your company does well)
STRENGTHS
Competitors in your area, emerging
needs of your product)
WEAKNESSES
(things your company lacks)
OPPORTUNITIES
(Emerging competitors, changing
customer’s attitude, and regulations)
THREATS
It is sometimes called global sourcing, means engaging in the international division of labor so that manufacturing can be done in countries with the cheapest sources of labor and supplies.
Outsourcing
is the making of a product or service in the firm’s domestic marketplace and selling it in another country
Exporting
On the other hand is bringing a good, service, or capital into the home country from abroad.
Importing
provides some technology to a foreign firm (licensee) by granting that firm the right to use the licensor’s manufacturing process, brand name, patents, or sales knowledge in return for some payment.
A firm
is a partnership between a domestic firm and a foreign firm. Both partners invest money and share ownership and control of partnership.
Joint venture
is a partnership between a domestic firm and a foreign firm. Both partners invest money and share ownership and control of partnership.
Joint venture
are investments in tangible assets or companies with the aim of financing their development in the medium or long term.
Direct Investment
are investments in tangible assets or companies with the aim of financing their development in the medium or long term.
Direct Investment
Involves two or more firms jointly cooperate for mutual gain
Strategic Alliances
It involves partnership between an organization ad a foreign company in which both share resources and knowledge in developing new products or building production activities.
Strategic Alliances
is the first stage of the management cycle.
Planning
It involves the establishment of the goals and objectives for the
company or organization.
Planning
Are narrow in scope and usually for short-term (within 1 year)
Objectives
Are narrow in scope and usually for short-term (within 1 year)
Objectives
Are broad in nature and for longer term (3-5 years)
Goals
Planning starts with setting a _________
company’s mission and vision.
It is a picture of what the organization wants and is committed to achieve in the future.
Vision Statement
It answers the question,
“What do we want to become?”
Vision Statement
Vision Statement
should be?
SHOULD BE SHORT
PREFERABLY ONE SENTENCE
MUST BE AGREED BY MANAGEMENT AND EXECUTIVES
company’s remark; a value creation premise that people can actually picture as existing
FOCUSED CONCEPT
something people can realistically believe to be possible and, if not perfectly attainable, at least reasonable to strive for
PLAUSIBLE CHANCE OF SUCESS
something that is really worth doing; something that can create value, make a contribution, make the world a better place in some way, and win people’s commitment
NOBLE PURPOSE
It is an enduring statement of purpose of an organization’s existence that distinguishes itself from others.
Mission Statement
It answers the question,
“What is our business?”
Mission Statement
Who are the firm’s customers?
Customers
What are the firm’s major products or services?
Products or services
Components of a Vision Statement
FOCUSED CONCEPT
PLAUSIBLE CHANCE OF SUCESS
NOBLE PURPOSE
Geographically, where does the firm compete?
Markets
Is the firm technologically current?
Technology
Is the firm committed to growth and financial soundness?
Concern for survival, growth, and profitability
What are the basic beliefs, values, aspirations, and ethical priorities of the firm?
Philosophy
What is the firm’s distinctive competence or major competitive advantage?
Self-concept
Is the firm responsive to social, community, and environmental concerns?
Concern for public image
Are employees a valuable asset of the firm?
Concern for employees
Steps in Planning
Define your goals/objectives
Know your strengths and weaknesses
Develop premises regarding future conditions
Analyze and choose among action alternatives
Implement the plan and evaluate results
is used in light of achieving big goals in the long term. It is more of a high-level planning done by the top-level managers in the organization.
Strategic planning
is used in light of achieving big goals in the long term. It is more of a high-level planning done by the top-level managers in the organization.
Strategic planning
refers to task prioritization for achieving short term goals. Such planning helps achieve those goals as prescribed in a strategic plan.
Tactical planning
It is the kind of planning required for day-to-day activities. It can be of two types – either single-use plans or ongoing plans.
Operational Plan
operational plan can be 2 types
single-use plans or ongoing plans.
These plans can be used only until the objective is achieved, after which they are of no purpose.
Single Use Plans
These are repetitive in nature and can be modified for evolving purposes in the future. They are also characterized by short-term plans.
Ongoing Plans
Also known as ‘special planning’, it is used for situations when changes cannot be foreseen.
Contingency Plan
is a common statistical task in business, where it helps to inform decisions about the scheduling of production, transportation and personnel, and provides a guide to long-term strategic planning.
Forecast
Forecast used e Forecast used either be ___________
quantitative or qualitative
numerical information about the past is available;
it is reasonable to assume that some aspects of the past patterns will continue into the future
mathematical calculations, statistical analyses of surveys or researches are used
Quantitative forecasting
This method is used if there are no data available, or if the data available are not relevant to the forecasts
Qualitative Forecasting
It is identifying a specific set of uncertainties, different “realities” of what might happen in the future of your business. It is a long-term version of contingency plan.
Scenario Planning
- It generally involves external comparison of a company’s practices and technologies with those of other companies.
Benchmarking
It aims to encourage all their employees working in their different work of units to learn and improve by sharing one another’s best practices.
Internal benchmarking
A common benchmarking technique is to search for best practices used
by other organizations that enable them to achieve superior
performance.
External benchmarking
It is a process which begins with a problem identification and
ends with the evaluation of implemented solution. The types of decision-making are:
Decision–making
-a decision that is repetitive and can be handled using a routine approach.
Structured or programmed decision
applied to the resolution of the problem that are new or usual, or which information is incomplete
Unstructured or non-programmed decision
These are ideal conditions in deciding problems; these are situation in which a manager can make precise decisions because the results of all alternatives are known.
Certainty conditions
Uncertainty means that implies a situation where future events are not known and can not be measured. It means outcome of the decision is unknown and uncontrollable.
Risk or uncertainty
conditions
