Orgman 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
“Management is to forecast, to plan, to
organize, to command, to coordinate
and control activitites of others.”
Henry Fayol
Father of Modern Management
Henry Fayol
“Management is the art of knowing what
you want to do and then seeing that thet
do it in the best and cheaper manner.”
Frederick W. Taylor
Father of Scientific Management
Frederick W. Taylor
“Management is the art of getting
things done through people.”
- Mary Parker Follett
is the attainment of organizational goals
in an effective and efficient manner through
planning, organizing, staffing, directing and
controlling organizational resources.
Management
Characteristics and Nature of Management
Goal Oriented
Universal
Continuous Process
An essential element
of every organized
activity
Universal
It is a means to
achieve certain
goals.
Goal Oriented
Ongoing and
never-ending
process
Continuous process
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.
Organization
Characteristics of Organization
Coordination
Common Goal
Division OF labor
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 (before 1880) important contributors
Charles Babbage
Charles dupin
James Watt
James Montgomery
The classical approach is the earliest thought of
management
Classical Theory
It is known as scientific management.
Classical Theory
the founders of scientific
management and administrative management.
Frederick W. Taylor
Henry Fayol
It was developed because of the need to increase
productivity and increase worker’s efficiency.
● Differential wage rate system was introduced
Scientific Management Theory
(Frederick W. Taylor)
It was focused on managing the organization as a whole
● Five functions of management was introduced
Fayol’s Classical Organisation Theory
(Henri Fayol)
Five Functions of Management
Planning, Organizing, Staffing, Directing, Controlling
The rational-legal authority system/model was introduced
characterized by
-Division of work
-Rules and Regulations
-Hierarchy of authority
-Record keeping
-Impersonal relations
Weber’s Bureaucracy Theory
(Max Weber)
is built on the base of classical theory.
Classical theory concentrated on job content and
management of physical resources whereas, neoclassical
theory gave greater emphasis to individual and group
relationship in the workplace.
Neo-classical Theory
The neo-classical theory pointed out the role of _______ AND _________
Psychology and Sociology
considers an organization as an adaptive
system which has to adjust to changes in its environment.
Modern theory
Modern theory
was developed as a synthesis of
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
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 it 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
Supervision
Motivation
Communications
Leadership
overseeing the work
Supervision
inspiring, stimulating or
encouraging
Motivation
guides and influences
Leadership
passing information,
experience, opinion
Communication
It involves with monitoring or
checking the performance of
employees, comparing it with
organizational goals, and
taking corrective
actions when necessary.
Controlling
Characteristics of Organization
Coordination
Common Goal
Division OF labor
Command Level
10 Roles of a Manager
figurehead, leader, liaison\
monitor, disseminator, spokesperson
entrepreneur, disturbance handler, resource allocator, negotiator
Interpersonal Roles
Figurehead, Leader, Liaison
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 developing contacts and linkages to further the reach
and influence of the business.
Informational Roles
Informational roles
MOnitor, Disseminator, spokesperson
Seeks out and gathers
information relevant to
the organization
MOnitor
Provides information
where it is needed in
the organization
Dissemination
Transmits information
to people outside the
organization
Spokes person
Involves developing new business plans, strategies, or a new project.
Decisional roles
Searches out new
opportunities and
initiates change
Entepreneur
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
Technical Skills
Conceptual Skills
Human 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.
Environment Scanning
Purposes of Environmental Scanning
To help management determine the future
direction of the organization.
It is also helpful in making good and
effective company policies.
Classifications of Business Environment
Business Environment to External Environment to Internal Environment
Factors or events existing within a firm
Internal Environmente
Factors or events outside the firm
External E.
Bearing
Business Strategy, functions and decisions
Internal E.
Bearing
External E.
Factors of Internal Environment
Plans And Policies
Financial resources
Corporate Image
Culture
Human Resources
the ___________________of the firm should be properly framed taking into consideration the objectives and resources of the firm.
Plans and Policies
The survival and success of the firm largely depends n the quality of ….
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 __________ 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
Shareholders
Employees
Customers
Competitors
Suppliers
Microenvironment
Economic Factors
Political & Legal
Technological
Socio-Cultural
MAcro Environnment
are the actual owners of the company, as they invest their money in the company.
Shareholder
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 them 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
Macro Environmental Factors
Political and Legal E.
Socio-cultural E.
Technological E.
Economic E.
consists of the laws, rules, regulations and policies which the company needs to adhere.
Political and Legal Factor
The economic conditions of the region and the country as a whole has a significant bearing on the company’s profitability.
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.
Age Demographics
Lifestyle
Traditions
Beliefs
Socio-Cultural Factors
This comprises the innovations and improvements in methods, machines and materials.
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. 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
SWOT Analysis
Strengths, Weaknesses, Opportunities, and Threats
SWOT
Stages of International Business
outsourcing
importing and exporting
licensing and franchising
joint venture
Direct investment
strrategic alliance
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
______on the other hand is bringing a good, service, or capital into the home country from abroad.
Exporting and Importing
firm (licensor) 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.
Licensing and Franchising
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
Involves two or more firms jointly cooperate for mutual gain. 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 Alliance
is the first stage of the management cycle.
involves the establishment of the goals and objectives for the company or organization.
Objectives – are narrow in scope and usually for short-term (within 1 year)
Goals –are broad in nature and for longer term (3-5 years)
Planning
it is a picture of what the organization wants and is committed to achieve in the future.
It answers the question,
“What do we want to become?”
Vision Statement
Components of a Vision Statement
Focused Cocept
Plausible chance of success
noble purpose
It is an enduring statement of purpose of an organization’s existence that distinguishes itself from others.
It answers the question,
“What is our business?”
Mission Statement
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
TYPES OF PLANS
Strategic Plan
Tactical Plan
Operational Plan
Contingency Plan
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 Plan (Top Level Management)
refers to task prioritization for achieving short term goals. Such planning helps achieve those goals as prescribed in a strategic plan.
Tactical Plan (Middle Level Management)
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
types of Operational Planning
Single use plans
ongoing plans
These plans can be used only until the objective is achieved, after which they are of no purpose.
Ex: marketing campaigns
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.
Ex: Recruitment Process
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. Used either be quantitative or qualitative.
Forecasting
It ca an be applied when two conditions are satisfied:
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
Qualitaitve 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.
Ex. Farmers use scenarios to predict whether the harvest will be good or bad, depending on the weather. It helps them forecast their sales but also their future investments.
Scenario Planning
It generally involves external comparison of a company’s practices and technologies with those of other companies.
Benchmarking
It generally involves external comparison of a company’s practices and technologies with those of other companies.
Bench Marking
A common benchmarking technique is to search for best practices used
by other organizations that enable them to achieve superior
performance.
External benchmarking
It refers to planning process that includes the people who will be affected by the plans and those who will be asked to implement them in all planning steps.
Participatory planning
It is a process which begins with a problem identification and
ends with the evaluation of implemented solution
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 Decision
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.
Risky or uncertainty decision
