MANAGEMENT I (PRINCIPLES OF MANAGEMENT)

Top manager. A manager who is at the top of the organizational

hierarchy and responsible for the entire organization.

Middle manager. A manager who works at the middle levels of the

organization and is responsible for major developments.

First-line manager. A manager who is at the first or second

management level and directly responsible for the production of goods and
services.

Functional manager. A manager who is responsible for a department

that performs a single functional task and has employees with similar
training and skills.

General Manager. A manager who is responsible for several

departments that perform different functions.

Project Manager. A manager who coordinates people across several

departments to accomplish a specific project.

MANAGEMENT SKILLS

Conceptual skills means the cognitive ability to see the organization as

a whole and the relationship[ among its parts.

Human skill means the ability to work with and through other people
and to work effectively as a group member.

Technical skill means the understanding of and proficiency to the

performance of specific tasks.

SCIENTIFIC MANAGEMENT

FREDERICK WINSLOW TAYLOR insisted that management itself

would have to change and, further, that the manner of change could be
determined only by scientific study. He suggested that decisions based on
rules of thumb and tradition be replaced with precise procedures developed
after careful study of individual situation.

SCIENTIFIC MANAGEMENT A SUBFIELD OF THE CLASSICAL

MANAGEMENT PERSPECTIVE THAT EMPHASIZED
SCIENTIFICALLY DETERMINED CHANGES IN MANAGEMENT
PRACTICES AS THE SOLUTION TO IMPROVING THE
PROPDUCTIVITY.
CHARACTERISTICS OF SCIENTIFIC MANAGEMENT;

General Approach

1. Developed standard method for performing each job

2. Selected workers with appropriate abilities for each job
3. trained workers in standard method
4. Supported workers by planning their work and eliminating interruptions
5. Provided wage incentives to workers for increased output.

Contributions

1. Demonstrated the importance of compensation for performance

2. initiated the careful study of tasks and jobs
3. Demonstrated the importance of personnel selection and training

Criticism

1. did not appreciate the social context of work and higher needs of workers
2. did not acknowledge variance among individuals
3. Tended to regard workers as uninformed and ignored their ideas and
suggestions.,

HENRI FAYOL , MARY PARKER FOLLET, CHESTER I. BARNARD

THEY ADVOCATED THE DIFFERENT PRINCIPLES IN

MANAGEMENT

1. Unity of command - Each subordinate receives orders from one – and

only one- superior

2. Division of work. Managerial and technical work are amenable to

specialization to produce more and better work with the same amount of
effort.

3. Unity of direction. Similar activities in an organization should be

grouped together under one manager.

4. Scalar chain. A chain of authority extends from the top to the bottom of
the organization and should include every employee.
BUREAUCRATIC ORGANIZATION

A SUBFIELD OF THE CLASSICAL management perspective that

emphasized management on an impersonal, rational basis through elements
such as clearly defined authority and responsibility, formal recordkeeping,
and separation of management and ownership.

CHARACTERISTICS OF BUREAUCRACY

1. Labor is divided with clear definitions of authority and responsibility that

are legitimized as official duties.

2. Positions are organized in a hierarchy of authority with each position

under the authority of a higher one.

3. All personnel are selected and promoted based on technical

qualifications, which are assessed by examination or according to training
and experience.

4. Administrative acts and decisions are recorded in writing.

Recordkeeping provides organizational memory and continuity over time.

5. Management is separate from the ownership of the organization.

6.Managers are subject to rules and procedures that will insure reliable,
predictable behavior.

HUMAN RESOURCE PERSPECTIVE

A management perspective that emerged around the late nineteenth
century that emphasized enlightened treatment of workers and power
sharing between managers and employees.

HUMAN RELATIONS MOVEMENT

A movement in management thinking and practice that emphasized
satisfaction of employees basic needs as the key to increased workers
productivity.

MANAGEMENT SCIENCE PERSPECTIVE

A management perspective that emerged after World War II and applied
mathematics, statistics, and other quantitative techniques to managerial
problems
OPERATIONS RESEARCH
It consists of mathematical model building and other applications of
quantitative techniques to managerial problems

OPERATIONS MANAGEMENT
Refers to the field of management that specializes in the physical
production of goods and services. It specializes the quantitative techniques
of forecasting, inventory modeling, linear and non-linear programming ,
queuing theory, scheduling, simulation, and break-even analysis.

MANAGEMENT INFORMATION SYSTEM (MIS)

IS THE MOST RECENT SUBFIELD of the management science
perspective. These systems are designed to provide relevant information to
managers in a timely and cost-efficient manner.

8 CHARACTERISTICS OF EXCELLENCE

1. BIAS TOWARD ACTION- successful companies value action, doing

and implementation.

2. Closeness to the Customer

3. Autonomy and Entrepreneurship

4. Productivity through people

5. Hands on, value driven

6. sticking to the knitting

7. Simple form, Lean staff

8. Simultaneous Loose-Tight properties

CHAPTER 3 THE ENVIRONMENT AND CORPORATE CULTURE

Organizational environment includes all elements existing outside the

boundary of the organization that have the potential to affect the
organization. The environment includes competitors, resources, technology,
and economic conditions that influence the organization.

GENERAL ENVIRONMENT

1. Technological dimensions includes scientific and technological

advancements in a specific industry as well as in society at large.
2. Sociocultural . the dimension of the general environment representing the
demographic characteristics, norms, customs and values o the population
within which the organization operates.
3. Economic dimension. The dimension o the general environment
representing the overall economic health of the country or region in which
the organization functions.

4.Legal-political dimension. The dimension of the general environment that

includes federal, state, and the local government regulations and political
activities designed to control company behavior.

5. International dimension. The dimension of the general environment

representing events that originate in foreign countries and opportunities for
American firms abroad.

CULTURE can be defined as the set of key values, beliefs, understandings,

and norms shared by members of an organization. It represents the
unwritten, informal norms that bind organization members together

SLOGAN is a phrase or sentence that succinctly expresses a key corporate

value.
Example
Eagles don’t flock, You gather them one at a time.
We take eagles and teach them to fly in formation
Rule 1 – the customer is always right/ Rule 2 – If the customer is ever
wrong, reread Rule 1 “

TOUCH-GUY, MACHO CULTURE

A type of corporate culture that emerges in an environmental situation

characterized by high-risk decision making, rapid feedback and large-scale
project.

WORK HARD/PLAY HARD CULTURE is also characterized by rapid

feedback but decision are low-risk and many small –scale decisions..

BET-YOUR-COMPANY CULTURE
A form of corporate culture characterized by a high-risk, high stake, slow-
feedback environment.

PROCESS CULTURE is characterized by low-risk decisions and little or no

feedback to employees about decision effectiveness.

CULTURE GAP. The difference between an organization’s desired cultural

norms and values and actual norms and values.
SYMBOLIC MANAGEMENT DEFINES AND USES SIGNALS and
symbols to influence corporate culture. Symbolic managers influence in the
following manner.

1. The symbolic manager articulates a vision for the organizational change

that generates excitement and that employee and believe in.

2. The symbolic manager heeds the day-to-day activities that reinforce the
vision.4
VIRGILIO E. GUMANOY, Ph.D.

Over 20 years of experience in teaching in the undergraduate and graduate

business programs

PERSONAL INFORMATION

Address: 3rd St. Guingona Subdivision, Butuan City

Provincial Address: Tandag City, Surigao del Sur
Birthdate: July 14, l963
Religion: Roman catholic

EDUCATIONAL ATTAINMENT

Doctor of Philosophy, major in Commerce

Royal and Pontifical University of Santo Tomas – Manila
Graduated Magna Cum Laude – March 2001

Master of Science in Business Administration, major in Economics

University of the Visayas- Cebu City
Graduated Meritissimus – April 1992

Bachelor of Science in Commerce, Major in Accounting

Saint Michael’s College – SPU
Graduated Cum Laude – March 1983

EXAMINATIONS PASSED

A. Career Professional Civil Service – June l986 Rating 71.86%

B. Professional Board Examination for Teachers – August l988 Rating

76.78%

WORK EXPERIENCE

A. Dean College of Information. Business, Communications and

Computer, Holy Child Colleges of Butuan, 2nd Semester 2005-2006 to
present

B. Associate Professorial Lecturer II, College of Commerce,

University of Santo Tomas, Manila, Philippines 1st Semester 2005-2006

C. Dean College of Business and Management Education- Saint

Theresa College, City of Tandag, Surigao del Sur, l998-2005

D. MBA Program Coordinator

FOCUS ON GLOBAL COMPETITION

MANAGING IN A GLOBAL ENVIRONMENT

Today’s environment pays no respect to national borders. Managers must

learn new rules to cope with goods, services, and ideas circulating around
the globe. What is the environment of the new global village like?

-Products and services exist in a one world market. Build a better

machine in Oklahoma City and buyers will be there from Europe and Asia.

-Competitors in the global village hail from all over. As a manager, even
if you do not export, you are going to run into competitors in your own
marketplace, including some from Third World countries.

-Sharp companies treat the world as a source of supply as well as a

market. New products such as liquid Tide are composed of materials and
ideas from around the world.

-Smart companies seek common cause with foreign competitors.

Business partners are the smart way to work in multiple markets. Consider
General Motors, Toyota, and Whirlpool that have joint ventures with foreign
partners in several countries.

-You may end up working for a foreign company. If your competitors

cannot beat your company, they may buy it. Half of American chemical
employees toil for foreign owners.

MANAGER’S SHOPTALK

KEEPING CULTURE STRONG

A strong corporate culture enables people to feel good what they do. They
are committed to a higher purpose and are likely to work harder. Being able
to say “ I’m with Morgan Guaranty Trust” rather than “ I work at a bank” is
important. An often overlooked way to strengthen corporate culture is
through the selection and socialization of new employees. Recruits need to
understand what makes their company’s culture tick.

Seven steps for cultural socialization are as follows:

1.Subject employment candidates to a selection process so rigorous that it

seems designed to discourage rather than encourage individuals to take the
job.

2. Subject newly hired individuals to experiences calculated to induce

humility and to make them question prior behavior, beliefs, and values.

3. Send newly humbled recruits into the trenches, pushing them to master
one of the core disciplines of the company’s business.
4. At every stage of new managers’ careers, measure the operating results
they have achieved and reward them accordingly.

5. Repeatedly promote adherence to the company’s transcendent values –

those overarching purposes that rise above the day-to-day imperative to
make a buck.

6. Constantly harp on watershed events in the organization’s history that

reaffirm the importance of your firm’s culture.

7. Supply role models.

MANAGEMENT IN PRACTICE; ETHICAL DILEMMA

The $10,000 lunch

Rich has decision responsibility for a $5 million, five-year budget to install a

communications network in his company’s headquarters building.
Suppliers are competitively vying to win contracts for providing the
necessary hardware and systems equipment.

Rich is having lunch with his favorite salesperson, Scott. Near the end of
lunch Scott says, “Rich, listen, the end of the quarter is next week, and I am
about $100,000 in sales short to get a big $10,000 bonus. If you could sign
the purchase agreement on that computer network now instead of in three
months, I’ve got tickets to the Super Bowl. How about it?

Rich responded, “I’ve got to think about this. I’ll call you tomorrow .”
Rich wanted desperately to attend the Super Bowl because his favorite team
was playing and his wife wanted to visit family in New Orleans. Back at
the office Rich thought about the company tradition of purchasing agents
and others accepting small favors from suppliers. He also knew that Scott
put a lot of effort into bidding for the contract, and his company’s bid looked
better than any other. Rich also remembered that a newly issued company
policy states, ‘Program managers are prohibited from excepting gifts of any
size or form from vendors”.

What do you do?

1. Sign the contract and accept the tickets. After all, Scott deserved it and
would have won the bidding anyway?

2. Ask the support of co-workers. After all, company tradition and cultural
values are important for defining behavior than are written policies.

3. Do not sign the contract or accept the tickets. Breaking company policy
is inappropriate.