Professional Documents
Culture Documents
Course Outline
Management & Its Functions Ethical & Environmental Foundations Planning Organizing Leading Controlling
Environment of Management Value Systems and Management Philosophy of management Role of Objective Management
Planning
Decision Making Heirarchy of Plans Management Objectives Tools in Developing Good Strategies
Leading
Elements of Leadership Types of Leadership Motivation Theories Seven Basic Habits of Highly Effective People
Management & Its Functions Management process by which selected people design and maintain an environment in which individuals working together in groups, efficiently accomplish specific objectives and goals.
Management & Its Functions Management attainment of organizational goals in an effective and efficient manner through planning, organizing , leading and controlling organizational resources.
Input- labor, capital, materials Output refers to products with higher quality, cheaper price, higher yield, simpler process, etc.
Management & Its Functions Productivity improvement through: 1. Inc O , same I 2. Dec I , same O 3. Inc O , dec I
Management & Its Functions Effectiveness attainment of objectives getting the job done Efficiency attainment of ends with least amount of resources
Top Managers Conceptual Skills Human Skills Technical Skills Middle Managers First-Line Managers Non-Managers
Ethical and Environmental Foundations of Management Four Important Social Institutions Affecting Value Systems of Management Family Educational System Church Government
Ethical and Environmental Foundations of Management Four Schools of Thought Relative to Social Responsibility 1. Profit maximization as socially desirable 2. No long-run conflict between corporate and social responsibility. 3. Improvement of ones own organizational behavior best leads to social betterment 4. Management as trustee
Ethical and Environmental Foundations of Management Value Systems and Management Two approaches to moral questions: - Natural Law - Situational Ethics Three Types of Men According to source of moral direction: (David Riesman) 1. Tradition directed 2. Inner directed 3. Other directed
Ethical and Environmental Foundations of Management Conflict of Six Kinds of Moral Values
Integrity Self-respect Rationality of individual Peace of mind Harmony Logical Consistency Platonic Justice Order,Plan Common Good
ACTION
Lawfulness Precedents Customs ,Contracts, Authorization Survival Political Power Effect on friendfoe relations Loyalty Institutional Trend Social Causes
Contribute to the community and quality of life Be ethical . Do what is right. Avoid harm Obey the law. Be profitable.
Ethical and Environmental Foundations of Management Philosophy of Management - refers to the general concepts and integrated attitudes that are fundamental to the cooperation of a social group. The concept of the firm is the total of how the firm got where it is, the place it occupies in the industry, its strengths and weaknesses, the viewpoints of its managers, and its relationship to social and political institutions.
Planning - Decision Making Decision Making - process of identifying problems and opportunities and then resolving them. Decision - refers to the choice made from available alternatives.
Planning - Decision Making Programmed & Non-programmed Decisions Programmed decision - made in response to a situation that has occurred often enough to enable decision rules to be developed and applied in the future. Non - Programmed decision - made in response to a situation that is unique, poorly defined and largely unstructured, and has important consequence for the organization.
Certainty, Risk, Uncertainty, & Ambiguity Certainty - means all the information that the decision maker needs are fully available. Risk means that a decision has a clear-cut goals and that good information is available, but future outcomes associated with each alternative are subject to chance.
Uncertainty - means that manager know which goals they wish to achieve, but information about alternatives and future events are not complete. Ambiguity means that goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable.
High Ambiguity
Programmed Decisions
Non-Programmed Decisions
Problem Solution
Planning - Decision Making Decision Making Models Classical Model based on the assumption that managers should make logical decisions that will be in the organizations best economic interests. Administrative Model describes how managers actually make decisions in situations characterized by non-programmed decisions,uncertainty and ambiguity ( descriptive, intuition)
Planning - Decision Making Political Model useful for non-programmed decisions when conditions are uncertain, information is limited, and there is disagreement among managers about what goals to pursue or what course of action to take.
Coalition informal alliance among managers to support a specific goal.
Model
Classical
Problem/ Goals Clear cut Condition Certainty Available Full Information Choice Rational choice
Satisficing choice Bargaining & discussion by individual for resolving problem among coalition members for max. outcomes using intuition
1. Recognition of Decision 6. Evaluation and Feedback Requirement Diagnosis 2. & Analysis of Causes Decision-Making Implementation of Chosen Alternatives 5. Selection of Desired Alternatives 4. Process Development of Alternatives 3.
Planning - Decision Making Decision Making By Groups Cooperative decision making process by which group attempts to develop a composite organization mind. Committee- any group interacting in regard to a common explicit purpose with formal authority delegated from an appointing executive.
Planning - Decision Making Purposes of Commitees For fact-finding, investigation, and collecting information To avoid appearance of arbitrary decisions and to secure support for a position To make a decision a choice among alternatives To negotiate between conflicting positions taken by opposing interests To stimulate human beings to think creatively, to generate ideas, and to reinforce thoughts advanced by others.
Planning - Decision Making Purposes of Commitees To distribute information to brief members of the organization on plans and facts To provide representation for important elements of an organization . To coordinate different parts and subgroups of an organization toward common , overall goals. To train inexperienced personnel through participation of groups with experienced members.
Planning - Decision Making Advantages of Group Decision Making Process Decision can be approached from different viewpoints by individual specialists on a committee. Coordination of activities of separate departments can be attained through joint interactions in meetings. Motivation of individual members to carry out a decision may be increased by the feeling of participation in the decision making process. It is a means by which executives can be trained It permits representation of different interest groups Provides venue for creative thinking
Planning - Decision Making Disadvantages of Group Decision Making Process Costly; considering the value of time spent by individual members Time consuming Group action may lead to compromise & indecision A superior line executive at the meeting may make decision individually , with subordinates attempting to appear competent by proposing ideas they believe will make good impression Committee decisions may be reached by method in which no one is held responsible for decision ; buck passing may results
Planning - Decision Making Decision Making Style Directive Analytical Conceptual Behavioral
Planning - Decision Making Decision Making Style Directive Style - used by people who prefer simple, clear-cut solutions to problems - for quick decisions, do not want lot of informations - are generally efficient and rational, prefer to rely on existing rules
Planning - Decision Making Decision Making Style Analytical Style - considers complex solutions based on as much data they can gather - carefully considers alternatives - based their decisions on objective rational data from management control systems and other sources - search for best possible decision based on available information
Planning - Decision Making Decision Making Style Conceptual Style - considers broad amount of information - are more socially oriented - considers broad amount of alternatives - rely on information both from people and systems - likes to solve problems creatively
Planning - Decision Making Decision Making Style Behavioral Style - prefers to talk to people one-on-one to understand their feelings about the problem and the effect of a given decision upon them. - concerned with the people development - make decisions that help others achieve their goals
Planning - Decision Making Decision Making Tools Stochastic Methods Simulation Techniques Breakeven Analysis Incremental Concept
Decision Making Involving Probabilities 1. Decision maker should lay out all possible action / seem reasonable to consider and all the possible outcomes of these actions. 2. State probability distribution projecting chances of each outcome that might result from each act. 3. Decision maker must use some quantitative yardstick of value that measures the value of each outcome. Calculate weighted average by using the assigned probabilities. Calculate EMVs.
Planning - Decision Making Payoff Table / Decision Tree Sample Problem: A manager must decide whether to stock Brand A or Brand B. Either brand can be stocked, but not both. If A is stocked and it is a success, the Manager can make $200, but if it is a failure , there can be a loss of $500. If Brand B is stocked and it is a Success, the manager can make $400, but if it is a Failure, there can be a loss of $300. Which brand should be stocked?
Payoff Table
Strategy Stock Brand A Stock Brand B State of Nature Success Failure $200 $400 -$500 -$300
Expected Values
Planning - Decision Making Breakeven Analysis Variable costs - costs that varies with volume eg. Direct materials, direct labor, etc. Fixed costs costs that remains constant regardless of the quantity of ouput. eg. Equipment cost, rentals, depreciation, etc.
Planning and Strategic Management Goals desired future state of the organization. Plan - a predetermined course of action - blueprint specifying the resource allocations, schedules and other actions necessary for attaining goals. Planning - determining what organizations goal and defining the means to achieve them.
Importance of Planning - change in technology - changes in the government policy - changes in the overall economic activity (including prices, employment of labor, raw materials, etc) - changes in nature of competition - changes in the social norms and attitudes
Elements of the Planning Process 1. Setting Primary and Intermediate Goals 2. Search for Opportunities 3. Formulators of Plans (conversion of opportunities into strategies and policies) 4. Target Setters 5. Follow- up of Plan
Forecasting Techniques
- Quantitative time series analysis - Derived forecasts - Causal Models - Survey of plans and attitudes - Brainstorming - Delphi Method
Forecasting Techniques
- Quantitative time series analysis - Derived forecasts - Causal Models - Survey of plans and attitudes - Brainstorming - Delphi Method
Organizing structure and process of job allocation ; job-oriented Staffing pertains to people; workeroriented
Organizing and Staffing Classical Theory of Organization Contributions: Clear definition of types of formal organization Certain generalizations that offer first approximations for planning an organization structure Limited models for organizing activities
Organizing and Staffing Types of Formal Organization Line Organization Staff Organization Functional Organization
Staffing Filling, keeping filled, positions in the organization which includes identifying the workforce requirement, recruiting, selecting, placing, promoting, training, appraising, compensating and planning for the general welfare of the employees. Situational Approach to Human Resource Management External Environment 1. Equal employment opportunity 2. Women in management 3. Staffing for international environment