Principles of Managment

1. Output control

2. Behavior control

3. Clan control

- financial measures (quantitative, numbers, assessment)

- Organizational goals

- Operating budgets: how to use resources to achieve organizational goals efficiently

Disadvantage: difficult to create output standards that motivate at all levels

direct supervision: monitor/observe actively, teach behavior f.eg. repair teams at airport

--> Micromanagement element, leads to red tape bureaucratic, less risk taking and innovation

management by objectives: Performance appraisal, feedback, evaluation, define goals (output), monitoring > people learn and behave better

Bureaucratic control: standard operating procedures, regulates behavior of divisions, functions, individuals

Risk assessment

Problems: expensive, managers can only manage small number of subordinates, can demotivate

norms, law, policy, peer pressure: “the way we do things around here”, create positive culture

1.) Need to improve operations 2.) Need to respond to new events

- Assess the need for change:  recognize problem and identify its source

- Decide on change to make: what org. ideal future state, identify obstacles to change

- Implement the change: will change occur top down, bottom up, introduce/manage change

- Evaluate change: compare prechange with postchange performance, use benchmarking (comparing performance with other high performing companies

Top-down change: after identifying change, managers quickly implement changes in org.

Bottom-up change: gradual, evolutionary approach to change, all levels work together to develop detailed plan

Data:               raw, number, measure, meaningless (5 degrees)

Information:    meaningful, processed, decision (cold)

Knowledge:     complex; helps decision making (wear jacket, hat)

Quality: accuracy, reliability of information > affects quality of decision

Timeliness: availability of real-time information reflecting current conditions

Completeness: complete information  > managers can control, achieve coordination, make decisions

Relevance: information suiting manager’s needs, circumstances to help make decisions

Information technology: sets of methods or techniques for acquiring, organizing, storing, manipulating, transmitting info

Effects of IT: helps create new product opportunities

Management information system (sub form of IT): specific form of IT managers utilize to generate specific, detailed info needed to perform roles effectively

- to decide

- to control

- to coordinate

where do they stand--> controlling; increase responsiveness to customers--> who are the customers-->define target group

• Artificial Intelligence: algorithms: search, customized advertisement, speech siri etc., sound data
• Blockchains: Bitcoins etc.; medicine

Transaction process: cash register f.eg. (programmed decision making); routine

Operations Information system

Decision support systems: shows processed data

Expert system: e-medicine --> gives person knowledge, data, information etc. (decision tree)

Enterprise resource planning system: SAP, Oracle

e-commerce system: zalando etc. (nonprogrammed decision making)

- Global strategic alliances org. creates with suppliers, manufacturers, distributors to produce new product

- linked by computers, mobile tech, video teleconferencing, rarely face-to-face

- employees linked to orgs.  Centralized info system and rarely face-to-face

- company-specific virtual information system--> knowledge of employees, sharing and integrating of expertise (wiki)

Disadvantage: you can be replaced easily

Embryonic stage: introductory, launching

Growth stage

Maturity stage

Decline stage: launching of new product --> Innovation

According to Object (Product, Process)

According to Sector (Organizational, Technological)

According to Intensity (Incremental, Radical)

1. Efficiency: as not to waste resources and measure how well we use them

2. Effectiveness: appropriateness of resources/goals we pursue and choose

- Productiveness

-Planning: vision, strategy, set objectives

-Ogranizing: resources, achieve objectives, decision making, delegating

-Leading: imfluencing employee and their behavior

-Controlling: Evaluation, Feedback, Performance Management

1. Decisional: Enterpreneur (develop g&s) , Disturbance handler (take corrective action, external environment, negociation)

2. Interpersonal: Figurehead (face of the company), Leader (example, orders to subordinate), Liaison (coordinate work, alliances)

3. Informational: Monitor (evaluate manager performance), Disseminator (inform about changes, communication, Spokesperson (advertising, public speeches)

First-line managers: day-to-day supervision of non-managerial employees

Middle managers: supervise first-line managers, develop, utilize resources efficiently and effectively

Top managers: monitor middle managers (department), cross-departmental responsibility

CEO: responsible for performance in all departments

1. Conceptual skill: distiguish between cause and effect of a problem

2. Human skills: understanding, respect, control behavior

3. Technical skills: know-how, competence

- Innovation (renew, improve)

- Efficiency/Speed (use resources better than competition)

- Quality upkeeping/control

- Responsiveness to customers

- customers

- community

- supplier and distributor

- employees

-shareholders/stockholders

-managers

- When a manager makes decisions for himself and not for the company

- Information flow that is only available in managment level and doesnt go through the rest of the company

- came up in 1913

- elimination of unnecessary motions so time could be saved: workers do only one task to be more efficient = job specialization

- as workers performance increased (mass production), managers required more work for sam pay; output was biggest concern

- control system leads to high efficiency and effectiveness, introduced bureaucracy

- P1: structure and authority comes from ones position

- P2: occupy positions because of performance and not rank

- P3: work distribution and of responsibilities comes from organization, job descriptions

- P4: hierarchically arranged authority, organizational chart

-P5: Rules and Regulations are to be followed (culture)

- equality, treating employees with respect and order, more humanistic side of management, well being of members is important

-how managers should personally behave, encourage and motivate employees, human side and mechanical side are interrelated

working productivity and working environment, nice place to work =no workers fatigue

managers should be trained on human front

X: average employee is lazy, managers should closely supervise employees, strict rules and defined system of rewards and punishment

Y: employees are not lazy, will do whats best for organization, managers should provide opportunities for employees to self direct, necessary resources to achieve goals