Praxis

You cannot graduate unless you know your evolution.

A lawyer cannot graduate unless he knows his constitution.

Meaning of mgt
Perspective of mgt
Evolution of mgt

Management: Man / Manage/ Men

- Man who has aged managing a group of men; organization; basic
- Formal
- Informal org. – no rules; no structure.
Management – practice of consciously & continually shaping orgs
-involves coordinating work activities so that they are completed efficiently

Efficiency – getting the most output from the least inputs

-scarce inputs

5 M’s of Mgt: Man, Money, Machine, Market, Material

Effectiveness – doing the right things

Managers – mentors

Managerial Levels:
1st Line Manager – lowest level; manage the work of non-managerial employees (supervisor of rank &
file)
Middle Managers – all levels between the first and top level
Top level – CEO’s

Why study organizations and mgt?

*Living in the present –org’s. - present standard of living of the people
e.g. sick – go to the hospital
*Building future – org. build toward a desirable future and keep individual decision the same

3 types of career:
1. Top and low
2. Spiral – seek employment at various levels
3. Butterfly – you go where the nectar is
*Remembering the past – know the history of the org.
Managers – organizations
The Mgt Process
Functions of MGT (POSLC)
1. Planning – setup of goals
2. Organizing
3. Staffing
4. Leading
5. Controlling
Managerial Roles
*Interpersonal – relationship w/ others and are related to human skills
` *Figurehead – ceremonial & symbolic duties such as receiving visitors, signing legal docs…
 Leader – directs and motivates subordinates; trains, counsels and communicates w/
subordinates
 Liaison – maintains info links in and out of org.; email
 Informational – describes the activities used to maintain and develop…info network
o Monitor – search and receives info, scan periodicals
o Dissemination – forward info to other org; sends memo, reports, makes phone calls
 Decisional
o Spokesperson – transmits info to others through speech reports, memoranda
o Entrepreneur – initiates improvement projects, identifies
o Disturbance handles
o Resource allocator – distributes resources, schedules, budget
o Negotiator – represents depts..

How the Manager’s Job is changing

 Changing technology
 Increased threats to security
 Increased emphasis on organizational and managerial ethics
 Increased competitiveness
Why study management?
 Universality of mgt – all type and size of org.
 The reality of work – you will either manage or be managed
 Rewards and challenges of being a manager
Rewards
- Creates a work environment…members can work to the work to the best of their ability
- Opportunities to think creatively & use imagination
- Help others find meaning & fulfillment in work (mentoring, coaching)
- Support, coach and nurture others
- Work w/ variety of people
- Receive recognition & status in org. # community
- Play a role in influencing organizational outcomes
- Receive appropriate compensation in form of salaries, bonuses & stock options
 - Good mgrs are needed by orgs.
Challenges
- Do hardwork
- -deal w/ variety of personalities
- Often have to deal w/ limited resources
- Motivate workers in chaotic & uncertain situations
- Successfully blend knowledge, skills, ambition & experience of diverse work group
- Success depends on other’s work performance.
The Challenge of Mgt.
- The need for vision
o Expanding new techs
o Vision for living & benefiting from changing circumstances
- Need for ethics
o Concern over industrial pollution
- Need for responsiveness to cultural diversity
- Talent is “gender blind”
The Evolution of Mgt Theories
 Industrial Revolution
 Preclassical contributions
o Robert Owen (British Entrep)
 Recognizing importance of human resources
 Interested in the working & living conditions of employees
 Upgraded streets, houses, sanitation
 Groundwork for human relations movement
o Charles Babbage “Father of Modern Computing”
 First mechanical calculator “analytical engine” -> computer
 Introduced work specialization
 Mental work specialization
 2 parts of profit sharing
 Bonuses
 Portion of wages dependent or factor profits
o Henry Towne
 Management can be regarded as a science.
 Classical Viewpoint
o 3 approaches: Scientific mgt, admin. Mgt, bureaucratic mgt.
 The Scientific Mgt
 Work in order to achieve efficiency
 Frederick Taylor “Father of Mgt”
o Eliminating body movements
 Observed a major problem at Midvale Steel:
Soldiering (ligoy)
 o 1. Decreased productivity caused them to lose their jobs.
o 2. Faulty wage
o 3.
 4 Major Principles to solve the problem
1. Study each part.
2. Select workers – staffing
3. Cooperate w/ workers
4. Divide work & responsibility
 Taylor pioneered “time and motion” study – breaking down the task into
various elements
 The Gilbreths (Frank & Lillian)
o Lillian – exploring ways to reduce task fatigue
 Rotation of 17 basic motions – therblig (anagram of Gilbreth)
o Select, position, hold
 Henry Gantt
o Gantt Chart – graphic aid to planning, scheduling & control
o Reward employees who achieved their targets as well as
their supervisors
 Max Weber – bureaucracy
o Specialization of labor
o Formal rules& procedures
o Impersonality
o Well-defined hierarchy…extra bureaucratic structures,
projects, task force
o Career advancement based on merit
 Administrative Management
 Henry Fayol
o 5 major functions: planning, org…
o 14 principles of mgt:
1. Division of work / work specialization
2. Authority – right to give orders & the power to exact
obedience
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual interest to gen. interest
7. Remuneration – Human beings are insatiable.
8. Centralization
9. Scalar chain – chain of command
10. Order
11. Equity
 12. Stability of tenure
13. Initiative
14. Spirit de corps – united we stand, united we fall.
 Chester Barnard
o Acceptance theory of authority – not dependent on the
person of authority but on the willingness of employee to
comply depends on:
1. If employees understand the communication
2. See the communication as consistent
3. Feel that the actions indicated are in line with
the needs
 Early Behaviorist
 Hugo Munsterberg – father of industrial psychology
1. Psychologist could study jobs & identify the best suited
individuals.
2. Identify the psychological conditions under…
3. Develop strategies that would influence employees to
behave in ways that are compatible.
 Mark Parker Follet
o Significance of functioning of groups in organizations
o power with” rather that “power over”
o concept of power w/mean:
1. cooperative
2. Integration – process of finding…
 Hawthorne Studies
1. Illumination studies – factors other than lighting were at work
since performance rose in both groups.
2. Alteration work conditions like changes in supervisor
arrangements
o Resulted to the increase in productivity
3. Recognition of informal social relations
Human Relations Movement
- Intense interest in the social dimension of HBO
Herzberg
1. Intrinsic – factors w/n the job / person
2. Extrinsic- change (salary, supervision)

Abraham Maslow
3 assumptions about human nature
1. Human beings have needs are never completely satisfied.
2. Human action is aimed at fulfilling the needs that are unsatisfied.
 3. Needs fit into a somewhat predictable hierarchy.
Psychological
Security
Belonging
Esteem
Self-actualization

Douglas McGregor’s Theory X and Y

Theory X
-workers are lazy; need to be coerced; have little amibiotn
-focused on security needs
Theory Y
-workers do not dislike work
-capable of self-control
-have the capacity to be creative and innovative

Quantitative Mgt Viewpoint

-major force WWII
-quantitative methods to help determine the most effective use of resources
-focused on the use of mathematics; statistics
-3 branches: Mgt.Sci, OM and MIS
Mgt.Science –increase decision effectiveness through the use of sophisticated mathematical models &
statistical methods
Operations Mgt. – responsible for managing the production & delivery of an org’s products & services
MIS – designing & implementing computer-based information

CONTEMPORARY VIEWPOINT
*The Systems Theory – inputs -> transformation process -> output
*Contingency Theory
*Emerging Views
*Theory Z (William Ouchi) – involves giving worker job security
*TQM – continually improving product & service quality
*Globalization
*Ethics
*problems of corporate lying
*Workforce diversity – heterogeneous workforce in terms of gender, age, ethnicity, age and other
characteristics

Entrepreneurship
-process whereby an individual / group uses organized efforts to pursue opportunities to create value &
grow by fulfilling wants and needs (e.g. business world)
-e-commerce
Knowledge MGT & Learning Orgs.
-cultivating a learning culture where org. members systematically gather knowledge and share it w/
others
Quality MGT
1.) Intense focus on the customers
2.) Concern for continual improvement - very good not enough

BCG Matrix – Boston Consulting Group

Planning
Purposes
1. Provide direction to managers & non-managers
2. Reduces uncertainty by forcing managers to look ahead, anticipate change, consider the impact
of change & develop appropriate responses
3. Planning reduces overlapping & wasteful activities
4. Establishes goals/ standards
Planning & controlling go together
Types of Plans
1. Strategic Plans – apply to entire org; establish the overall goals & seek to position the org in
terms of its environment
2. Operational plans – specify the details of how overall plans are to be achieved
3. Long-term – time-frame
4. Short-term – one year or less
5. Specific plans – clearly-defined; no room for interpretation
6. Directional plans – flexible
7. Single use
8. Standing
Strategy used in establishing goals:
MBO (Management By Objectives) – a mgt system in w/c specific performance goals are jointly
determined by employees & their managers, progress towards accomplishing goals is periodically
reviewed
Strategic Mgt
1.) Can make a diff. in how well an org performs – why succeed / fail
2.) Orgs of all types & sizes face continually changing situation
3.) Because of the diverse nature of orgs, work needs to be directed & focused toward the
achievement of goals
The Strategic Mgt Process
1. Identifying the org’s mission, VMO (Vendor Mgt. Office) objectives & strategies
-mission refers to the purpose of the organization
-components: customers, producers, etc.
 2. Environmental Analysis (SWOT)
S & W – internal
O & T - external
3. Strategy Formulation
4. Strategy implementation
5. Evaluation
Ethics & Social Responsibility
Stage 1: Classical View
 Expand to employee
 Extend to customers & suppliers
Stage 2:
Stage 3 – expands responsibility to customers and suppliers
Stage 4: managers feel the responsibility
Social obligation – obligation of a business to meet its economic & legal responsibilities
Social responsiveness – guided by social norms
Greening of mgt – recognition of the close link between org. & environment
1. light green / legal approach – doing what is required by law
2. market approach – environmental pref. of customers
3. stakeholder approach
4. dark green / activist approach – looking or ways to respect & preserve the earth & its natural
resources
value-based mgt. – managing in w/ managers
-shared values
1. serve as guideposts for managerial actions & decisions
2. shape employee behavior & communicate what org’s expect of its members
3. shared values influence mktg. efforts
4. way to build team spirit in the org.
*Ethnocentric Outlook (home-country oriented) – orientation of the foreign operation was based in
that of the parent company
Managerial Ethics
-refers to rules
Managing for International Corporations
...anything characterizing the home base of the firm that contriubted to its competitive success or
competitive advantage
...management techniques need to change...when firm distributes its prodiction facilities over many
countries

competitive - choose from a number of trade, contractual and investment modes of foreign market

The Porter Diamond and the Role of the Home Base

-Four central aspects - determinants of competitive advantage
1. Factor Conditions
-Labor, land, natural resources and physical capital - basic factors - inherited
- Sophisticated infrastructure
- labor educated and trained in very specific
2. Demand Conditions
3 aspects
1. Demand composition - sophisticad, demanding and anticipatory home demands
2. Demand size and pattern of growth - large, rapild
3. Degree of internationalization

3 Related and Supporting Industries

-efficient, early, rapid and cost-effective inputs
-ongoing coordination
-innovation and upgrading

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. a competitive domestic supplier industry is better than relying on well-qualified suppliers

Orientation of multinational corps...

Firm Strategy, Structure and Rivalry

Most Important Interactions in the Diamond
1. Domestic rivals - clustered in a geographic region - contribute to the creation of factors especiallluy
specialized, advanced actors
2. a group of domestic rivals contribute to the presence of specialized and sophisticated suppliers
3. Rivalry among domestic firms producing differentiated products enlarges home demand and makes it
more sophisticated

Cultural Issues
.Cultural Dominance - there are MNCs that impose its own national or business culture on the foreign
subsidiary
. Cultural accommodation - MNCs try to blend into their host country culture at all cost
.Cultural avoidance 0 both MNCs and hosts pretend as if there were no cultural differences
. Cultural compromise - MNCs and partners meet each other half way, sometimes literally, conducting
business in a third country
. Another Method - look for ways in which the two

Managing New Ventures

. Entrepreneurship - process of organizing, operating and assuming the risk of a business venture

The Role of Entrepreneurship in Society

1. Innovation - the resourcefulness and ingenuity typical of small business have spawned new industries
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Organizing is the process of creating an organization's structure.

* Organizational structure is the formal arrangement of jobs within an organization.
* Organizational design is the changing or development of organizational structure.

Organization design involves 6 key elements:

1. work specialization -- job are grouped accdg to function
2. departmentalization
3. chain of command
4. span of control -number of people a supervisor can supervise (5 to 7) but now it depends on the
quality of the leader
5. centralization and decentralisation - locating the seat of power
decentralization -- every person is given a duty / responsibility
deconcentration- administrative (memorandum, admin orders from regional to municipal, etc)
devolution -- political in nature
ex. Local Gov't Code of 1991
SHAPEST
Social
Health
Agricultural
Public Works
Environment
School Houses
Tourism
Police

6. formalization - rules and regulations

Purposes
-divides work to jobs and departments

Staffing
-filling up and keeping filled positions in the organization
HRM (Human Resource Management) -staffing practices that lead to high perfomrance work practices

High Work Performance Practices

-self-directed work teams
-job rotation
-high levels of skills training
-problem-solving groups
-quality management procedure

HRM process - influenced by external factors

-labor unions
-government laws (labor laws)
-affirmative action programs

1. HR planning
-assessing current human resources
-assessing future HR needs
-developing a program to meet future needs

Current Assessment

Meeting future needs

-Recruitment - job fairs
. Internet
. Employee Referrals
. Company web site
. College Recruiting

Decruitment
--firing
--lay offs
--Attrition -- position that has not been laid off could not be filled in
--transfers
--reduced workweeks
--early retirements
--job sharing

Selection
-Selection Devices
. Application forms
. Written tests
. Performance Simulation Tests
. Interviews
. Background Investigation
. Physical Examination

Orientation
1. work unit orientation
 -- familiarizes the employee with the goals of the work unit and includes introduction to his or her co-
employees
2. Organization orientation -- informs the employee about the org's objectives, history, procedures, rules
and regulations

Employee Training
Types:
- Interpersonal skills - building relationships
-technical
-business
Trivia: 5% of company budget must be given to gender and or sexual harassment.

-mandatory - safety, health, sexual harassment and other legal compliance

-performance management
-problem solving / decision making
- personal

Employee Performance Management

-- written essays
-critical incidents
-graphic rating scales
-(behaviorally anchored rating scales)BARS
-multiperson comparisons
-MBO
-360 degrees feedback

Compensation and Benefits

-skill-based pay

Career Development
-career refers to the sequence of positions held by a person durg his or her lifetime

Suggestions for a Successful Management Career

1. Select your job judiciously.
2. Do good work.
4. Present the right image.
4. Learn the power strategy.
5. Gain control of organizational resources.
6. Stay visible.
7. Don't stay too long in your first job.
8. Find a mentor.
9. Support your boss.
10. Stay mobile. - be around
11. Consider lateral career moves.
12. Continue upgrading your skills.
13. Develop a network.

Current issues in HRM

-managing downsizing
-managing work diversity
-sexual harassment
-work-life balance and family friendly benefits
Managing Technology innovations
Strategic Issues in Managing Technology and Innovation
Role of Mgt: - Encourage new product development
- Ensure that tech is being used most effectively w/ the consumer's in mind.

Environmental Scanning:
-External Scanning
-Impact of Stakeholders - lead users,
-Market Research
-Do internal scanning
-Resource Allocation Issues - spending on R&D
Time to Market Issues- time from inception to profitability; short cycle (4 years)
-Strategy formulation - Leader or follower;
-Product vs Process R&D
-Technology Sourcing

Outsourcing Technology:
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Organheir businessizational Change Management (blue black, orange title)
4 stages to achieve
-Denial
-Resistance
-Exploration
-Renewal

The Concept of Development

Meaning
-multi0dimensional prvess involving reorganizaton and reorientation

3 Objectives:
1. Raising people's living levels (incomes, levels of food, med.services)
2. Creating conditions conducive to the growth of people’s self-esteem - establishment of social, political
and economic systems and institutions which promote human dignity and respect
3. Increasing peoples freedom to choose by enlarging the range of their choice variables
development as econ growth
- growth in GNP
alternative interpretations of develpment
* dev't as modernicatiopn - process of social change
*dev't as distributive justice

Sustainable Development - likely to achieve; lasting satisfaction of human needs and improvement of
the quality of life and encompasses:
-help to the poorest
-idea of self-reliant dev't
-cost effective dev

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GLobalization
consist of 3 interrelated factor
What is your perspective
*Parochialism - views the world solely through its own eyes and perspective
*Ethnocnetric attitude - a parochialistic belief that the best approaches and practices are those of the
home country
*Polycentric attitude - managers in the host country know the best work approaches and practices for
running their business
*Geocentric attitude - using the best approaches and people from around the world

The Global Environment

*Global trade - shaped by 2 forces
*Regional alliance
-European Union
Types of global organizations
*MNCs - managed from a base un a hom\

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Work diversity
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Governance
To govern - to exercise power or authority over a territory, system or ogr
Governance is the process of decision making
-focuses on the formal and informal

The 3 actors in Governance

1. The state
-wielder of power, principal actor of governance
-As enabler - provide the legal and regulatory framework and political order w/n which firms and orgs
can plan and act
-can encourage citizens to act by liberating them from fear of military reprisal when they criticize
policies or serve marginalized groups
*It can assure private firms that policies are fair and not subject to caprice or whim or the private
interests of political officials

2. The civil society - consists of the complex of citizns and groups outside government bt working the
public arena
3. The market- creates wealth for distribution, to harness the capabilities and resources of the strong

8m
3 transparent
4. responsive
5. consensus oriented
6 equity and inclusiveness
8. accountability