Principles of Management Dyck / Neubert

1. Chapter 1 Introduction to Management Principles of Management Dyck / Neubert

2. Amer Hamzah Jantanamer@econ.upm.edu.my Tel: 03-89467781 HP: 012-2352592 Notes: http://econ3.upm.edu.my/kelasmaya/

3. Figure 1.1: Four Reasons To Study Management

4. Important Managerial Skills • Technical Skills • Expertise in a particular area—marketing, accounting, finance or human resources • Human Skills • Abilities in getting along with people, leadership, helping others to be motivated, communication and conflict resolution • Conceptual Skills • The ability to think about complex and broad organization issues

5. Types of Managers • First-Line Supervisors • Manage the work of employees who are involved in the actual production or creation of an organization’s products or services. • Middle Managers • Manage first-line managers and others. • Top Managers • Have organization-wide managerial responsibilities—Chief Executive Officers (CEOs), Vice-Presidents, and Board Chairs

6. What Is Management? • Management • The process of planning, organizing, leading and controlling human and other organizational resources towards the effective achievement of organizational goals. • Organization • A goal-directed (planning), deliberately-structured (organizing) group of people working together (leading) to achieve results (controlling).

7. Functions of Management (Fayol) • Four Management Functions: • Planning • Organizing • Leading • Controlling

8. Managerial Roles (Mintzberg) • Interpersonal Roles • Leader, Liaison and Figurehead • Decisional Roles • Resource Allocator, Negotiator, Entrepreneur, Crisis Handler • Informational Roles • Monitor, Disseminator, and Spokesperson

9. Fayol’s Functions and Mintzberg’s Roles

10. Defining “Effective” Management • Effectiveness • Choosing the “right” organizational goals to pursue • What about moral obligations? • Is profit-maximization a legitimate goal? • Efficiency • The level of output that is achieved with a given level of inputs • Maximizing output while minimizing inputs

11. Chapter 3 The Task and Macro Environments ofManagement Principles of Management Dyck / Neubert

12. Task Environment Has the greatest immediate influence on managers. Contains four key groups of stakeholders: Customers Members Owners Other organizations The Task And Macro Environments Of Management • Macro Environment • Contains four dimensions: • Socio-cultural • Natural • Political-legal • Economic-technological

13. Figure 3.1: Three Basic Levels of the Environment for Managers

14. Summary: Task Environment • All managers must pay attention to key stakeholders to: • Ensure that they are in tune with customer needs and wants to serve them adequately. • Attract and retain an adequately qualified workforce. • Ensure that owners’ needs are met. • Develop and maintain relationships with suppliers, competitors and neighbors.

15. Summary: Macro Environment • Managers must pay attention to the key dimensions of their macro environment to: • Monitor socio-cultural trends and changes in demographics, health care, education and other social institutions. • Consider how sensitive they will be with respect to the natural environment. • Keep informed of developments in the political-legal environment. • Pay close attention to economic opportunities and threats and remain technologically competitive.

16. Chapter 4 The InternationalEnvironment Principles of Management Dyck / Neubert

17. Figure 4.1: Ways to Internationalize an Organization

18. How to Internationalize an Organization (cont’d) • Exporting • When an organization manufactures products in its home country and transports them to other countries for sale there. • Importing • When a finished product is brought in from another country for resale domestically.

19. How to Internationalize an Organization (cont’d) • Global Outsourcing • When one or more sub-components for an organization’s products or services are imported from another country. • Counter-Trade • When products or services from one country are traded (rather than bought and sold for currency) for products or services from another country.

20. How to Internationalize an Organization (cont’d) • Licensing • When an organization in one country sells specific resources to an organization in another country. • Franchising • When a franchisor in one country sells to a franchisee in another country a complete package required to set up an organization.

21. How to Internationalize an Organization (cont’d) • Strategic Alliance • When managers from organizations in at least two countries agree to pool their organizations’ resources and “know-how” in order to share the risks and rewards for developing a new market or product. • Joint Venture • When partnering organizations agree to form a separate, independent, jointly-owned organization.

22. How to Internationalize an Organization (cont’d) • Foreign Subsidiaries • Maquiladoras • Are assembly plants and factories in special regions in Mexico along the U.S. border where international corporations can take advantage of low wages and also enjoy low duties and tariffs when their products are exported to the U.S.

23. Figure 4.3: Overview of Hofstede’s Five Dimensions of National Culture

24. Hofstede’s Dimensions of National Culture (cont’d) • Materialism • Is placing a high value on things like getting better jobs, material possessions, money and assertiveness. • Quality of Life • Is emphasized in cultures that overall tend to value relationships, the welfare of others, and the intrinsic satisfaction that comes from performing meaningful work.

25. Figure 4.4: Relative Emphasis of Countries on Hofstede’s Materialism/ Individualism Scores

26. Hofstede’s Dimensions of National Culture (cont’d) • Time Orientation • Short-term cultures live in the present. • Long-term cultures have a greater concern for the future. • Deference to Authority • The relative emphasis that a culture places on power differences

27. Hofstede’s Dimensions of National Culture (cont’d) • Uncertainty Avoidance • High uncertaintyavoidance cultures prefer predictable rules and regulation over ambiguity and risk. • Low uncertaintyavoidance cultures value risk-taking and innovativeness.

28. Chapter 5 Ethics Principles of Management Dyck / Neubert

29. Why Study Ethics? • The emphasis on ethics is related to: • The world is changing rapidly. • Unethical decisions by managers are receiving more attention. • Managers are moral agents.

30. What Is Ethics? • Ethics • A set of principles or moral standards that differentiate right from wrong. • Management Ethics • The study of moral standards and how they influence managers’ actions.

31. Components of Management Ethics • Sources where a manager may get their moral standards • The moral-point-of-view that a manager follows • The process a manager uses to make decisions that are ethical • The influence of ethics on how managers practice the four management functions

32. Sources of Management Ethics • Informal/Public • Work experiences, peers, managers • Ethical climate • The informal shared perceptions of what are appropriate practices and procedures • Informal/private • Examples set by the behavior of immediate family members • Family, friends, peer groups, society, and unspoken universal human norms

33. Table 5.1: The Four Types of Sources of Ethics

34. Levels of Personal Moral Development • Pre-conventional • What is rewarded and punished • Self-interest: “What’s in it for me?” • Conventional • Social norms or external standards • By others: “What is everyone else doing?” • Post-conventional • Universal principles established through conscience and reason • “What are timeless truths?”

35. Figure 5.2: Increasing Levels of Moral Development

36. Chapter 7 The Decision-Making Process Principles of Management Dyck / Neubert

37. Introduction to Decision-Making • Decision • A choice that is made among a number of available alternatives. • Decision Process • Identify the need for a decision • Develop alternative responses • Choose the appropriate alternative • Implement the chosen alternative

38. Figure 7.1: The Four-stepDecision-making Model

39. Mainstream Approach to the Four-Step Decision-Making Process • Step 1: Identify the need for a decision • Identifying problems and opportunities to meet or surpass financial goals • Using learned scripts: • Programmed decisions • Non-programmed decisions • Mistaking symptoms for the underlying issue

40. Figure 7.2: Considerations that Influence How Much Time Managers Invest in Developing Alternatives

41. Mainstream Approach to the Four-Step Decision-Making Process • Step 3: Choose the appropriate alternative • Choose an alternative, using a method based on how much goal consensus and knowledge is available for each alternative. • Key Factors: • Goal consensus about which goals to pursue • Available knowledge about: • How to achieve goals • Uncertainty about outcomes • Risk that alternative will result in negative outcome

42. Decision Making Approaches • Classical Rational Approach • High consensus, high knowledge • Political Approach • Low consensus, high knowledge • Incremental Trial-and-Error Approach • High consensus, low knowledge • Continuous improvement • Intuition

43. Decision-Making Approaches(cont’d) • Random (low consensus, low knowledge) • No agreement on goals and lack of knowledge about how to reach goals • Administrative model (medium consensus, medium knowledge) • Bounded rationality • Limited cognitive capabilities and personal biases • Limited information—anchoring, past practices • Limited resources for processing information • Satisficing—choosing an adequate response

44. Mainstream Approach to the Four-Step Decision-Making Process • Step 4: Implement the chosen alternative • Implement the alternative. Use a participative approach to overcome resistance • Involving members in earlier steps • Factors in implementation • Significance of the problem for the organization • Competency to analyze the problem and develop alternatives • Availability of adequate knowledge • Commitment to implementing the alternative

45. Poor Decisions • Causes • Failure to recognize significance of problem • Lack of participation • Insufficient information • Failure to delegate/facilitate decisions • Lack of commitment and support • Persistence Errors • Escalation of commitment • Information distortion • Administrative inertia

46. Chapter 8 Setting Goals andMaking Plans Principles of Management Dyck / Neubert

47. Introduction to Goals and Plans • Goals • The desired results or objectives that members in an organization are pursuing. • Plans • Describe the steps and actions that are required to achieve goals.

48. The Planning Process • Steps in the Planning Process • Setting an organization’s overarching mission and vision. • Setting strategic goals and plans. • Taking the strategic goals and plans and putting them into practice in everyday operations. • Implementing and monitoring the goals and plans.

49. Figure 8.1: Overview of the Four Steps of the Planning Process

50. Organizational Goals and Plans • Ongoing Goals and Plans • Guide the continuing activities that are consistent with the basic purpose of the organization. • Change-Oriented goals and Plans • Refer to new initiatives and changes to be made in an organization’s practices.