MANAGEMENT PRINCIPLES

Chapter 1Managers and Entrepreneurs

Reported by:Angela Cristine M. Gregorio

BSBA I

Mr. Daniel Vasella

The Four Key Realities

The only certainty today is change. Speed, Teamwork and Flexibility. Managers at all level need to stay close

to the customer. Without continuous improvement and

lifelong learning, there can be no true economic progress for individuals and organizations alike.

“For most employees, the immediate boss is the prime

representative of the organization. If they don’t like their immediate boss,

they don’t like the company”

-Terry Brag(President of a Management company in Utah)

What is Management?

Management is the process of working with and through others to achieve organizational objectives in changing environment.

Central to this process is the effective and efficient use of limited resources.

Five (5) Components in the Definition of Management

Working with and through others. Achieving organizational objectives. Balancing Effectiveness and Efficiency. Making the most of limited resources. Coping with a changing environment.

1.Working with and through Others

Management is, above all else, a social process. Many collective purposes bring individuals together-building cars, providing emergency health care, publishing books, and on and on. But in all cases, managers are responsible for getting things done by working with and through other people.

What is a Derailed Manager?

Derailed Manager were those who had not lived up to their

peers’ and superiors’ high expectations.

Shortcomings of Derailed Managers:

Problems with interpersonal relationships.

Failure to meet business objectives Failure to build and lead a team.

2. Achieving Organizational Objectives

An objective is a target to be strived for and, one hopes, attained. Although personal objectives are typically within the reach of individual effort, organizational objectives or goals always require collective action.

Organizational Objectives also serve later as measuring sticks for performance.

3.Balancing Effectiveness and Efficiency

Effectiveness entails promptly achieving a stated objective.

Efficiency enters the picture when the resources required to achieve an objective are weighed against what was actually accomplished.

Balancing Effectiveness and Efficiency

Effectiveness Efficiency0%

10%20%30%40%50%60%70%80%90%

100%

Balancing

Balancing

4.Making the most of limited resources

We live in a world of scarcity. Although experts and non-experts alike may quibble over exactly how long it will take to exhaust our nonrenewable resources or come up with exotic new technological alternatives, one bold fact remains: Our planet is becoming increasingly crowded.

Basic Factors of Production

1.Land2.Labor

3.Capital

5.Coping with a Changing Environment

Successful managers are the ones who anticipate and adjust to a changing circumstances rather than being passively swept along or caught unprepared.

Overarching Sources of Change

Globalization The Evolution of Product Quality Environmentalism An Ethical Reawakening The Internet and the E-Business

Revolution

1.Globalization

A controversial aspect of Globalization is the practice of off shoring, the outsourcing of jobs from developed countries to lower-wage countries.

Today’s model manager is one who is comfortable transacting business in multiple languages and cultures.

2.Evolution of Product Quality

The emphasis on quality has evolved through four distinct stages since World War II- from “fix it in” to “inspect it in” to “build it in” to “design it in”.

Notice how each stage of this evolution has broadened the responsibility for quality, turning quality improvement into a true team effort.

Approaches of Evolution of Product Quality

The fix-it-in approach•Rework any defective product The inspects-it-in approach•Avoidance of substandard outputs. The build-it-in approach•Identifying and eliminating causes of quality

problems. The design-it-in approach•Continuous improvement of personnel,

process and product.

3.Environmentalism

Green issues such as deforestation, global warming, depletion of the ozone layer, toxic waste food safety, and pollution of land, air, and water have gone mainstream.

Managers around the world are picking up the environmental banner and putting their creative ideas to work in a way that they doesn’t harm the environment.

4.An Ethical Reawakening

Managers are under strong pressure from the public, elected officials, and respected managers to behave better.

Different Ethical Problems

Lying to Supervisors Lying o reports or Falsifying records Stealing and Theft Sexual Harassment Abusing Drugs or Alcohol Conflict of Interest

5.The Internet and E-Business Revolution

Internet- the worldwide network of personal computers, routers and switches, powerful servers, and organizational computers has been explosive.

E-business- is one seeking efficiencies via the Internet in all basic business functions

What do Managers Do?

Managers are responsible in every aspects of the business. Management is a complex and dynamic mixture of systematic techniques and common sense. A certain manager must be educated enough and undergone many experiences in terms of managing.

Approaches in Analyzing Management

Managerial Functions Managerial Skills

Managerial Functions

Managerial functions are general administrative duties that need to be carried out in virtually all productive organizations

Henri Fayol

Eight (8) Managerial Functions

Planning Decision making Organizing Staffing Communicating Motivating Leading Controlling

8 Managerial FunctionsManagerial Functions

PlanningDecision makingOrganizingStaffingCommunicatingMotivatingLeadingControlling

Managerial Skills

Technical Skills Teambuilding Skills

Drive Skills

Some Managerial Facts of Life

A Hectic Place Managers lose their rights to do many

things

A Hectic Place

“ The manager is overburdened with obligations; yet he cannot easily delegate his tasks. As a result, he is driven to overwork and is forced to do many tasks superficially. Brevity, fragmentation, and verbal communication characterized his work.”

Once became a Manager, you must give up the following:

Loose your temper Be one of the gang Bring your personal problems to work Play favorites Put your self-interests first Ask others to do what you cannot do

Learning to Manage

What must be considered in learning to manage?

Formal Educationor

Experience

How do Managers learn to Manage?

Hard knocks of Managers

Making a big mistake Feeling threatened Being personally attacked Suffering an injustice at work

How can Future Managers Learn to Manage?

Theory

Acquiring the Ability to Manage

Practice

Small Business Management

Small business management have been called the “engine” of the U.S economy.

Seven (7) Sacred Questions in 45 seconds

What is your product? Who is the customer? Who will sell it? How many people will buy it? How much will it cost to design and

build? What is the sales price? When will you break even?

Exploding Myths about Small Business

80 percent-failure-rate Myth The low-wage-jobs Myth

Career Opportunities in Small Business

Become an independent contractor/consultant

Take a job with small business Join or buy a small business owned by

your family Purchase a franchise Start your own small business

Entrepreneurship

Entrepreneurship is the process by which individuals –either on their own side or organizations-pursue opportunities without regard to the resources they currently control