SEMINAR 2

MANAGEMENT FUNCTIONS
2.1. MANAGEMENT FUNCTIONS
Management functions is the essence of leadership. Therefore knowledge
and thorough understanding of their contents is essential condition for learning
science and practice of management and effective use of systems, methods and
techniques that own them are. For the first time management process analysis
and identification of management functions was made by Henry Fayol, who
believe that there are 5 functions of management: forecasting, organization,
control (decision), coordination and control.
Other experts have said that management has the following functions:
-planning and decision making,
-organization for high performance,
-direction and motivation,
-control results.
In Romania Constantin Pintilie believes that management has 7 functions:
forecasting, organization, motivation, coordination, control, evaluation,
maintenance and development of a climate of competition, incentives and
creativity.
There are basically five essential functions of management:
-forecasting and planning,
-organization,
-coordination,
-training-motivation,
-control-evaluation.
The diversity of these views is the fact that some authors confuse the
functions of management and enterprise. The controversy is due to the novelty of
management science, tentative views, innovation. Management is the core
management functions as they are, in fact, typical process management
components, without which management may take place in any socioeconomic
system.

2.2. INTERDEPENDENCIES MANAGEMENT FUNCTIONS

Process management is a cyclical. Begins with forecasting and planning,
which define the objectives and perspectives of company action, shall be
actionable under the organizational and coordination of organizational
components, train staff to implement activities and ends with monitoring and
evaluation results. The logical way of management functions in a consistent
management process reflects interdependencies management functions. In
practice, the management must be approached as a whole, dealing with

management functions in their close interdependence. Such an approach stems

from:
-Complementarity of management functions, management functions
overlap because organic and ignoring one or more of them were promptly reflect
reduced quality management process as a whole,
-Determination once the systemic nature of the company to which it
carries.
Any deficiency in the management process is reflected in decreased
efficiency of one or more activities of that company. Over time there have been
changes in the importance and prevalence of management functions in the
management of such company:
-50-60 years now, the management companies were organized and
priority control functions, along with evidence of such methods cazon
(authoritarian, military) in the exercise of these functions,
-In the contemporary functions of forecasting, organization and motivation
tend to play a more important extent they are supplemented by participatory
management, forward.
Addressing management functions reveals that besides the obvious
interdependencies between them, appears to highlight the specificities of each
management function has many features and functions specific facets.

2.3. GENERAL PRINCIPLES OF MANAGEMENT

Management exercise based on a set of processes that have the same
triple determination that management processes and relationships: socioeconomic, material and human. Management processes are:
a). process of decentralization and increased autonomy of economic
management involves:
-Reducing the presence and role within the state decision and reduce the
powers of these bodies.
-Simplifying and rationalizing planning methodology activities. Discarding
socialist central plan with mandatory and is replaced with a plan to each trader
autonomously establishing indicators indicative of its activity: turnover, number of
employees, productivity, profit size, profitability, earnings, etc..
-Reduce dependence on the central economic units.
-Increase the rights, powers and responsibilities at the microeconomic
level.
In these circumstances, the central management perspective (ministries)
will handle the direction of the management and development of the economic
and social analyzes, studies, forecasts and recommended directions, strategies,
policies to achieve economic and business orientation of favorable economic
results. Increased decision-making autonomy and responsibility in each trader
allow them to compile their own way management and strategy, because only
they know their best available resources, socio-economic environment in which
they operate, market or market segment which addresses the needs and
preferences, opportunities to meet this market.

b). principle of optimizing the relationship between management and the

present in perspective. Any manager in charge and solve everyday issues to the
fore so that it can escape to the future objectives. Thus, the manager needed to
lead the company in view at all times, anticipating change and environmental
perspective. Therefore appears as an objective necessity for any manager to
study, to know and anticipate future trends for development on this basis, to
provide resources and remedies to cope with competition in terms of future
requirements.
c). principle of participatory management involves the participation of
company staff in the exercise of the most important decisions and management
processes. The need for this participative leadership is determined by:
-Increasing complexity and dynamism of the activity of the company.
-Changes of major components of the environment: competition,
legislation, inflation, exchange rate, etc..
Rapid advances in scientific-technical, commercial and organizational
contemporary.
-The increasingly higher training of most staff within companies.
Exercise is both participatory management in large enterprises, which is
indispensable, and in small and very small, which is decreasing, giving greater
emphasis unipersonal management.
d). principle of material incentives and moral stimulation is the main driving
force to promote quality activities, profit growth and economic efficiency. The
principle that the active factor in the development of any company, should
combine harmoniously 3 groups of interest:
-The general interests of society, through tax levies, taxes.
-Company interests in the development, modernization, expansion and
profitability.
-Individual interests of entrepreneurs, owners shareholders, managers,
employees materialized in the amount of income: dividends, salaries, bonuses,
bonuses, etc..
Underestimating one of the three interest groups negatively affects other
interests meet.
e). principle of efficiency expresses the need for system modeling
management companies in order to determine the survival and competitiveness.
Achieving this objective requires the involvement and use of modern
instrumentation methods, tools, concepts of modern management, economic and
social to be applied correctly in efficiency.
f). principle of correspondence between the company management
system parameters and key features of the environment is determined by the
necessity of constant correlations, improvements and adaptations of the
management of each company to actual situation existing in their social and
economic context in evolving.
The origin of this principle results from the dynamism of economic,
technological, scientific, cultural. Following the management change frequently
occurring parameters must adapt to these changes, taking into account: firm

size, complexity of potential material, financial, human, firm market position,

quality human resources, the technical equipment, etc..

2.4. MANAGEMENT SYSTEM

Performance management is achieved by the company management
system. Management system are all elements with binding, organizational,
informational, motivational and methodological exercising the management
processes and relationships. Management system components are:
a). The organization includes:
-Organization process of trial work with the components:
-functions,
-activities,
-functions,
-tasks.
-Structural organization with the components:
-position,
-function.
-compartment,
-organizational relationships,
-level hierarchical
-hierarchical-weight (time management, control area).
b). Information System is a set of data, information, digital information,
information flow, procedures and means of treating existing information in a
company.
c). The decision means all decisions taken and implemented in a
company.
d). The methodology is a set of methods, techniques and procedures used
in managing a company. These methods and techniques are grouped as follows:
-General-management methods and techniques:
-management by objectives,
-management by exception,
-management of the budgets,
-participatory management,
-management projects.
-Methods and techniques of management:
-Work-session or meeting,
-delegation,
-Scoreboard driver
-diagnosis,
-feasibility study, etc..

2.5. BUSINESS PLAN

To address issues of theoretical and formal business plan can put the
following questions, which answers trying to convince businessman who set up a
business, on the usefulness of this business plan as a business management
tool. Questions are the following:
-What is a business plan?
-Why you need a business plan?
-What is the content of a business plan?
1). What is a business plan? To understand what a business plan should
define first the concept of "business". An unconventional definition of this concept
may be the intention of a person (natural or legal) to make, to undertake certain
activities in order to obtain a profit. A business plan is based on:
-an entrepreneur or businessman
-consciously assume certain risks,
-wants to obtain a profit
-more activities consume resources and generate income (business idea)
-an environment in which these activities are carried (the business).
The main aspects that may be considered in a business plan are the
following:
-Vision, strategy.
-History, management, human resources, the current activity.
-Market Analysis.
-Analysis of operating costs.
-Investments required.
-The financial projections.
-Schedule.
a). Vision and Strategy. Experts believe that everything starts from the
vision. Each entrepreneur has a vision of the type:
- "I want to produce auto parts that you sell Plant X"!
- "I want to manufacture clothing for children"!
- "I want to produce and market berry juice"!
- "I want to establish a network of Internet - cafe"!
- "I want, want, want. . . "!
-"I want - this is a vision. This vision is really the ultimate goal to which you
want to continue straight through your business. The path you have decided to
start to fulfill the vision is to achieve business strategy.
To clarify the concept of strategy should answer the following questions:
-What is your core business?
-What will generate money and profit?
-How do you show your products / services?
-You already have a model or prototype?
-Who are your customers?
-There is a comparable market offer?
-Where are you going within 5 years.
-Set your goals measurable?

-What is your strong point that makes you think that will be successful?
-There is a consensus among partners / stakeholders on the issues above?
b). history, management, human resources, the current activity. Business
history is very important to understand the business itself, the business today.
And businesses are not born from nothing. They will be born around a / some
people, then develop and function, led by those people. To paraphrase the
popular saying "man holy place" we can certainly say that "sanctifies business
manager". Manager or manager's future would be to ask questions like:
-What experience you bring in business?
-For the theoretical knowledge you have?
-What references can you present?
-Is your family willing to support you?
-You have the financial means to support his family during the difficult
early stages of business?
-You have the financial means to support the business?
-You have the contribution in kind to support the business?
-Cunotinele/experiena You or your partner cover key business areas?
-Where will you locate the headquarters of the Organization?
-How many employees do you need?
-What qualifications must have employees?
-What salary level should be provided?
-You can find the labor necessary specializations?
-You have outlined an organizational structure?
A special question concerns a special significance:
-Where is your business located?
c). market analysis. To perform this analysis can provide the following
questions:
-Why is there a business? To sell certain products / services to market.
A market analysis of how that evolved in the past and how to anticipate
the future evolution, are fundamental pillars for the determination of future
income that will generate business. It is important to answer questions regarding:
-Our Customers
-Who are your customers?
-Companies or individuals?
-How can segment your market?
-How is the market potential of geographically divided?
-You know how big the potential market volume?
-Have an action plan to attract customers?
Knowing the competition involves the following questions:
-What do you know about the competition?
-How many employees?
-What sales force?
-What market shares?
-What competitive advantages are compared to you?
-What strategies have competition price?
-But communication strategies / advertising?

Market knowledge is equally important, it can ask the following questions:

-How do you think will grow sales?
-What is the forecast demand?
Marketing policy is another important element for a business. From here
you can states the following questions:
-You have a product strategy?
-Did you set a distribution policy?
-You have a policy of price and payment terms?
-Have you thought of a political image, communication with the market?
d). Analysis of operating costs. This is very important for understanding
and highlighting current business operating costs. The achievement
demonstrates both an understanding of technological aspects, economic and
managerial aspects of operations. Demonstrates that we understand the
technological, we know why we need infrastructure utilities, many people have to
engage in the structure must have them. Should consider the following costs:
-Costs of establishing a company:
-Permits.
-Entry in the Commercial Register.
-Current costs:
-Raw.
-Consumables, auxiliary materials.
-Staff costs (salaries, social costs), management personnel
salaries,
premiums and bonuses.
-Costs of training and personal training.
-Taxes and local taxes.
-Outside services.
-Accounting.
-Tax Consulting.
-Legal Consulting.
-Management-consultants.
-IT-Consulting.
-PR-Consultant.
-Cost of space:
-Office-space
-Area of production
-Space for sale
-Storage-space
-Heating costs, gas, electricity, cleaning, repair, insurance, water / sewer,
trash.
-Equipment costs.
-Repairs.
-Maintenance.
-Transport costs.
-Fuel.
-Review.

-ntreinere/Reparaii.
-Liability Insurance & all risks insurance.
-Taxes.
-Costs related to the sale:
-Travel.
-Presentation materials.
-Exhibition.
-Administrative costs:
-Move.
-Office supplies.
-Communications: telephone, fax, phone, e-mail.
-Copy documents.
-Evidence primary and payroll.
-Subscriptions (eg journals, legislation, office equipment maintenance,
etc.).
-Literature.
-Taxes.
e). Investment required. Often the business plan is necessary to start a
new activity. Most times a new activity requires a new investment. Must therefore
be based on a pragmatic, honest and realistic investment. To diminish or ignore
the issues related to investment, infrastructure such as utilities or oversize it by
introducing unnecessarily expensive equipment, luxury, are common mistakes
that immediately raises questions (justified) in the minds of shareholders,
partners, donors.
Investment costs can be grouped as:
-Buildings,
-Equipment
-Car
-Other capital goods,
Investment related costs:
-Infrastructure,
-Water,
-Gas
-Current
-Sewage,
-Access road,
-Rehabilitation,
-Arrangements,
-Ensuring safety standards,
-Environmental protection.
-Other costs that may arise:
-Project Expenses.
-Expenses for initialization to use new equipment.
-Expenses for technological tests.

f). financial projections for the plan. Financial projections are expectations
/ planning future business financial statements. Financial projections are
mathematical modeling future balance sheet, profit and loss and the calculation
of liquidity (cash flow) in calculating the rate of profitability possibly some
business. Projections are inextricably linked to points c, d and e above. These
points provide input in the mathematical model and these are erroneous data,
financial projections mathematical model results can only be all wrong and
therefore completely useless.
g). Schedule. Obviously can not proposed "Framework formats", limiting,
for the business plan. But funding for some programs can be made available to
applicants specific framework. As a manager-entrepreneur business plan must
evolve. You can enter these presentation materials that can help business, such
as:
-study certificates / qualifications of the management team and human
resources,
-certified quality
-feedback from customers,
-appreciation of the bank,
-constructive-technological details,
-any other materials or documents which it considers relevant managerentrepreneur in presenting their business.

2.6. CONFLICT
Represents a tense conflict occurs when two or more parts of a company
must enter into interaction to complete a task to make a decision and to achieve
a goal or solve a problem, but the parties' interests are different , shares a
defined negative reactions from others, and the parties are unable to resolve the
controversy and critique each other. In this situation the warring parties influence
their colleagues, collaborators and friends. They join the group and looks
forward. As long as the conflict remains unresolved, the affected firm
performance, labor relations of those involved directly and by extension, the
entire group are damaged.
Appearance of conflict may be due to disruption of business mechanisms,
violation of principles or rules of management. Drinking onset and conflict is
regarded as extremely harmful to the company, energy and time, but sometimes
they can have a positive role in regulating internal mechanisms, social and
economic aspects of the company. Conflict is defined as tense as a whole
generated by interference between two or more major problems. The
consequence of this view is that management should not eliminate any conflict at
all costs, but only those that prove real obstacles to achieving business
objectives. In some cases conflicts can be beneficial when the situation can be
used as tools for change and innovation. So the real issue to be discussed is the
conflict itself, but that of how it can be channeled and managed it as a clever
maneuver, even a potential conflict economically destructive and costly can be
transformed the one that cost less and bring organizational advantages.

2.7. NEGOTIATION
DEFINITION: Negotiation is a decision-making between the parties
interdependent preferences not identical.
The elements of an effective negotiations are as follows:
1). Adopt a winning attitude that winning is a state-which constantly seeks
mutual benefit in any human interaction. This attitude leads to the adoption of
agreements or solutions are mutually involved in negotiation.
2). Establishment by each party involved in negotiating favorable last
alternative, to rule on any proposal that the party with whom to negotiate. This is
an alternative that provides benefits at least a portion involved in the negotiation
(the last "price").
3). Identify areas of negotiation that is if it is necessary or unnecessary, if
overlapping interests of both sides.
4). Value added through negotiation is a process consisting of the
following phases:
-Classification of interests.
-Identification of options.
-Design option package.
-Select an option package.
-Improvement of the transaction.
In literature it is considered advisable that negotiations take place at those
who have limited authority. A negotiator in this category may prove strong
enough to achieve desired results, limited authority making up a certain "power
source". A negotiator may postpone such a decision thus gaining time in which to
think of it sometimes finding business solutions that can bring in a difficult
situation. Has the opportunity to more easily said "no" and this amicably, without
being accused of unfair methods or incivility. This is because he says "no" on
behalf of someone else, being someone who can not pass over, that is the
general manager or owner.
Often there is negotiation and upward authority, ie a certain escalation of
authority, its purpose being to put approval at high levels. In such a situation that
they negotiate is forced to repeat the arguments one at each level of authority in
the party. Such a tactic, tough in its own way, can put on any negotiating or even
both in difficulty. Also it occasionally fails to sow discord between the negotiator
and the organization he represents, negotiator and was placed in a position to
report after each question in part, that business is concluded that in fact to be
that this is not true.
If authority is well prepared tactic often leads upward to the desired
results. For it is but needs a well trained negotiator, highly prepared physically, to
cope with such tactics. During the negotiations there are certain requests that
can not be but satisfied. They are so extreme that a compromise on them seems
impossible, but curiously, that such claims can help the negotiator to have the
agreement of all members of the team, and scattered while those from the other
side.

Such applications are deeply rooted in the consciousness of certain

values of an individual, group, an ethnicity or a nation, values of nature such as:
ethnic, religious, professional or economic. The introduction of such hostility
creates immediate grievance. Dangerous for the nonnegotiable demands they
make, they can wind up so much that there is real risk partners termination of
any negotiations. However, most applications of this type may become
negotiable to the extent that there are serious and long enough to accept these
ideas. Psychological education in the positive traits, talents can be encouraged to
acquire a new meaning to rise to the skill and craftsmanship. In other words
negotiator personality is formed by grinding and finishing skills that a complex
process characterized by persistence and education of the will. In these
circumstances their negotiators selection consists of a lengthy and complex
experiences, observations and conducted training in the general activity.
Psychological preparation will pay off only a moral personality and
professional background. A good negotiator should however be prepared in
terms of psychological education, if it lacks professionally trained will always be
complexed by ignorance and by the use of Twitter, the inconsistencies, the lies,
the cunning. Psychological training is both theoretical and practical. Theoretically
this is done through periodic training and practical pedagogical input path
candidates in different teams of negotiators, first as observers and then the
coach during training and operations of documentary materials and processes
simulated negotiations.
The education process is based on psychological knowledge of individual
skills, the temperament, nature and character that define personality. It will
consider the rule that most individuals are characterized by average sized
general skills. Acquiring an education is important for the identification of the
personality of the person negotiating partner in terms of its psycho-physiological
traits. After several individual contacts can be identified some skills gaps and the
negotiation partner, other references can be collected on his personality primarily
vizndu the behavior and experience. In these conditions negotiator will be easier
to adopt appropriate strategies and tactics in battle psychological confrontation
caused by both partners. For shipping company managers following aspects are
important:
a). traits and qualities negotiator representing the company. Success in
negotiations depends largely on the qualities and traits negotiator. A good
negotiator must be the owner of properties are native or acquired through a
thoroughly trained to be developed through personal experience and careful
observation of others. A good negotiator must be endowed with specific traits
and native intelligence, imagination, a very good memory, courage, presence of
mind, charm, ability to adapt to unforeseen situations, modesty, tact, flair, etc. ..
First of all you must know that the negotiator is a person who is born, lives
and works are formed in the context of socio-economic realities, cultural and
political well-determined reality that is the formative elements of the profile and its
character. We must also note the fact that being a negotiator is not easy being
one of the most demanding. In fact, negotiation is nothing but "an unwritten
character and quality evaluation of negotiating". No matter how well prepared

negotiations would be successful to the table is determined largely by the

personality of the negotiator, the default size of the overlapping of its quality,
selected from the following:
-Culture vast, easily in speech, mind clear and large energy reserves.
-A deep and solid professional training, knowledge of negotiation
techniques, rules and their alternatives.
-Perfect-knowledge and in detail the topics and issues discussed.
-Clarity in thinking, mobility in mind, adaptability to complex situations.
-Capacity analysis, to listen and retain the essential, to judge the
practicality issues.
-Treasurer of information in every aspect, from general to particular, the
immediate prospects, from formal to informal.
-Self-reliance, power to keep cool under emotional or stress, willingness to
handle the situations.
-Ability to know to negotiate under time pressure and in difficult situations
to know to gain time required to receive new instructions and take effective
decisions.
-Ability to integrate into a team, being a good colleague and collaborator
endowed with the talent to get along with people located at all levels. In the spirit
of cooperation negotiations means team spirit, constructivitate, resilience and
perseverance in the partner's belief by logical arguments that prove they are
defended and interests.
-To be endowed with good sense, to be diplomatic and persuasive,
honest, persistent, calm, temperate, and the opportunity to have a sense of
timing.
-To be strong and flexible partner analysis of the case.
-Know how to transpose the partner situation, to understand his way of
thinking.
-Be able to self-control at all times, be empowered when they are in
situations of ambiguity.
-To have the courage to decide the right time, and presence of mind and
sharpness means that can be detected and disadvantages of unilateral or
reciprocal action reroute or delay negotiations.
-To show attachment to the company they represent.
b). factors on which the power to negotiate.
DEFINITION: bargaining power consists of all means that the negotiator can use
to obtain a solution as close to their own negotiating position.
This depends on a number of objective and subjective factors, closely
related to the field in which the negotiations. This also applies to factors such as:
-Experience of past negotiations,
-Pressure negotiating team,
-Information about third-degree,
-Negotiating partner and the firm he represents,
-Responsiveness,
-Ability to take a risk,

-Mode negotiation training, etc..

The negotiation process participants faced personality of individuals, are
going to tilt the balance of the most skilled. A negotiation is more than a
discussion followed by an agreement signed and initialed. This is an assessment
of the quality and the negotiation participants. From this perspective, integrity,
honesty and reliability are foremost elements. Integrity is really what makes the
business to go, being there no substitute for it. Without such a negotiation as no
matter how well prepared it is not hopeless because a negotiation should not be
a developed sense of values and above all must be willing to share equally with
the other part of the current difficulties occurring.
Credibility is a quality which often is hidden in the price the customer pays.
The price does not mean only money which is rather a combination of benefits. In
terms of the buyer the right to check what was said or what was promised so
much part of the deal as offered for sale. Credibility involves "what is said, as
they say, especially when he says who he says". It is very difficult if not
impossible to negotiate with people who do not trust. As the honor should be
noted that most negotiators want to be or at least to seem honest, reasonable,
but it quite difficult. Depending on which view is the concept of honor. The
negotiation must consider each individual, starting from its position in society and
especially the respect they enjoy and ultimately not from their material situation.
The concept of justice as do the honorable and reasonable but not quantifiable.
Such terms are subjective and interpreted.