Principles of management

Efficiency: getting the most output from the least amount of input [goal: low waste]. Also referred to as “doing things right”

Effectiveness: completing activities so that organizational goals are attained [goal: highattainment]. Also referred to as “doing the right things”.

Planning:

(1) strategic planner,
(2) operational planner.

 Organizing and staffing:

(3) organizer,

(4) liaison,

(5) staffing coordinator,

(6) resource allocator,

(7) task delegator

Leading:
(8) motivator and coach,
(9) figurehead,
(10) spokesperson,
(11) negotiator,
(12) team builder,
(13) team player,
(14) technical problem solver, 

(15) entrepreneur.

Controlling:
(16) monitoring,
(17) disturbance handler.

Technical skill involves and understanding of or proficiency in specific technique.

Interpersonal skill is manager’s ability to workeffectively as a team member and to build cooperative effort in the unit. Multiculturalism is important subset of interpersonal skill.

Conceptual skill is ability to work with complex concepts and to see the organization as total entity (the “big picture”). Needed for strategic planning.

Diagnostic skill is investigating a problem, identifying possible causes and choosing course of action to solve it.

Political skill is ability to acquire power to achieve objectives. Understanding of people and group interactions is required. Should be a supplement to job competence.

Division of labor

Specialization

Unity of command

Span of control

Exporting

Licensing and franchising

Local assembly and packing

Strategic alliances and joint ventures

Direct foreign investment

Global startup (small firm that begins by serving an international market)

North American Free Trade Agreement (NAFTA) establishes liberal trade among United States, Canada, and Mexico.

The Central American Free Trade Agreement (CAFTA) facilitates trade among six countries (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Dominican Republic) and the U.S.

Association of Southeast Asian Nations

Involves a large association of countries in the region (Indonesia, Malaysia, the Philippines, Singapore, and Thailand, Brunei, Cambodia, Laos, Myanmar (Burma), and Vietnam).

It also have important partnerships with Australia, India, New Zeland and North Korea.

A) Developing global leadership skills
B) Currency fluctuations (strong currency makes exporting more difficult)

C) Balance of trade problems (in general, better to export than import)

D) Human rights violations, corruption, and violence (also, customers may object)

E) Cultural shocks

F) Difference in negotiating styles

G) Piracy and lack of aknowledgement to intelectual property rights.

H) Coping with dangerous and defective products.

Individual characteristics

1. Self-interest, including greed and gluttony

2. Unconscious bias leading to unjust treatment of others

3. Rationalization, or making up good excuses for unethical behavior

4. Job dissatisfaction

The nature of the moral issue

1. Moral intensity is driver of unethical behavior.

2. Many people willing to behavior unethically when issue does not appear serious.

3. Moral laxity—moral behavior slips because other issues seem more important at the time.

The ethical climate in the organization

1. Organizational climate might condone unethical

   behavior, such as risk taking and illegal behavior.

2. Pressure from management to achieve goals can compromise ethics.

3. Too much emphasis on meeting financial targets can prompt poor ethics.

1. Stealing from employers and customers

2. Illegally copying software

3. Treating people unfairly (discrimination and prejudice)

4. Sexual harassment

5. Conflict of interest (judgment or objectivity is

   compromised

6. Accepting kickbacks or bribes for doing business with another company

7. Divulging confidential information (thereby violating trust)

8. Misuse of corporate resources

9. Extracting extraordinary compensation from the

   organization

10. Corporateespionage

11. Poor cyberethics

1. Is it right?

2. Is it fair?

3. Who gets hurt?

4. Would you be comfortable if your decision were exposed publicly?

5. Would you tell your child (or young relative) to do it?

6. How does it smell?

I) Formal mechanisms for monitoring ethics (ethics programs such as ethics committee, channels for raising questions and voicing concerns).

II) Written organizational codes of conduct (include general and specific suggestions).

III) Widespread communication about ethics and social responsibility (executive commentary, small group discussions).

IV) Leadership by example and ethical role models (executives behave ethically, and other managers also serve as models).

V) Encouragement of confrontation about ethical deviations (every employee confronts anybody behaving unethically).

VI) Training programs in ethics and social responsibility (such as executive messages, classes, e-learning, videos).

Planning provides a direction.

Planning reduces uncertainty

Planning avoids waste and saves costs.

Planning defines expected standards of performance.

1. Define current situation

2. Define Goals (targets)

3. Evaluate the Environment and possible barriers

4. Develop operation plan to reach the Goals (targets)

5. Develop Budgets 

6. Implement the plan

7. Control the plan

• A vision is idealized picture of organization’sfuture.

• A mission identifies firm’s purpose, and where itfits into the world.

• Corporate-level strategy concerned with total direction of enterprise and selection of businesses.

• Business-level strategy focuses on how to compete in each of the businesses.

• Functional-level strategy specifies actions to implement above two strategies [functional managers should support corporate- and business-level strategies].

1) to be clear, concise and not ambiguous.

2) To be precise in terms of intended state and conditions.

3) To be achievable by competent workers.

4) To be challenging and innovative

5) To encourage the participation of all team members

6) To be related with events that are real, not obscure and undefined.

7) to be specific as to i) what, ii) who, iii) when, and iv) how.

1. Establish goals

2. Establish accountable objectives

3. Review subordinates proposals

4. Negotiate or agree

5. Create plans to reach goals

6. Review performance

i) launching,

ii) growth,

iii) maturity,

iv) decline.

1. Identify the problem

2. Develop alternative solutions

3. Evaluate alternative solutions

4. Decide

5. Implement the decision

6. Evaluate and control

Challenge (optimum amount)

Freedom (in how to accomplish a goal)

Resources (time and money needed)

Rewards and recognition for creative ideas (supplement to internal rewards)

Allocating time for creative thinking

Building on ideas of others

Greater diversity in groups

1. Creativity training (flexible thinking)

2. Brainstorming

3. gathering ideas from inside and outside the company

4. appropriate physical surroundings (workplaces)

be curious

laugh at own mistakes

take risks

find the best time to be creative and stop if you face a blockade

stretch your imagination

make sport

1. Hierarchy of authority / chain of command (organizational units controlled by a higher one)

2. Unity of command (subordinates receive assigned duties from one superior, and only accountable to that superior)

3. Span of control (number of persons supervised by a supervisor)

4. Task specialization (each organizational unit and each employee concentrates on one function)

5. Responsibilities and job descriptions (each employee has precise job description; policy and procedure manuals kept current and accessible)

6. Line and staff functions (line deal with primary outputs of firm, staff deals with support activities, and advise line units)

Strategy and goals—structure follows strategy.

Technology—high technology firms rely more on flexible structures.

Size—bigness leads to centralized controls and some formalization.

Financial condition—flat costs less.

Environmental stability—flexible structure for unstable environment.

Task Characteristics

- Autonomy, variety, significance, feedback

Knowledge Characteristics

- difficulty challegenge, using different skills, problem solving

Social Characteristics

- interaction with others, support and advice, feedback, 

Contextual Characteristics

- environment of the job, ergonomics, physical demand, work condition, equipment

Language

History

Rituals

Materials

Paperwork/Regulatories

Be a role model

Using rewards for change

recruit the right people

Productivity can increase

Maybe more talents want to join because of culture

more Innovation

people get out of their comfort zones, more creative thinking

- non satisfaction with the current situation

- possible alternatives with benefits

- Group has to be capable of changing

o Cognitive - Thinking about relationsship

o Linguistic - Explaining activities

o Conative - What the firm actually does

Task

Technology

People

Environment

Structure

Functional managers:
- Supervise workers in special activities, such as accounting

General managers:
- Are responsible for groups performing a variety of functions

Administrators:
- Are managers in public and non-profit organizations

Entrepreneurs:
- And small-business owners

Teams leaders:
- Are catalysts and facilitators