Documente Academic
Documente Profesional
Documente Cultură
What is Management?
• Influencing other people to perform the way you wish them to;
• Directing other people to achieve the desired objectives;
• Planning - It is defined as the process of identifying the • Coordinating the proper implementation of activities;
objectives of a task, assignment, or cause and the • Communicating effectively across various groups; and
corresponding activities to achieve those objectives. • Motivating individuals to perform their best.
• Controlling
It is defined as monitoring and evaluation of activities undertaken in
• Organizing - It is defined as gathering the resources required to
relation to the stated objectives.
carry out the activities and allocating the effective and
efficient use of those resources. • Identifying the gap (variance) between what was planned and
- effectiveness means doing the right things. what was accomplished in terms of quantity and quality of work;
- efficiency means to accomplish something with the • Determining the main cause of problems encountered during
least waste of time and effort implementation;
• Finding ways to correct those problems;
• Preventing those problems from recurring; and
• Seeking new ways to improve how things will be done in the
future.
Management Is Using Proper Resources
• Individual Fulfillment Perspective - the individual fulfillment perspective of management looks at how an organization
seeks to satisfy the needs of employees and develop their full capabilities. It empowers people within the
organization to reach their potentials.
• Mainstream Perspective vs. Multi-stream Perspective - Dyck and Neubert (2012) introduced a values-based way to study
management by comparing two contrasting management approaches or perspective that fall into a so-called
continuum. On one end of the continuum is the mainstream perspective. According to the authors, this
approach focuses on the traditional, materialist, and individualistic view of management, such that the
emphasis is maximizing profitability, productivity, and competitiveness.
What Is an Organization? o Partnership is another form of business owned by two or more persons.
Similar to sole proprietor, the business partners have full liabilities in
Organization - is a social setting composed of several groups of case of financial loss.
people who bond and work together to achieve a common
purpose. Organizations are established by people with common o Limited Partnership is a form of business also owned by two or more
interests. persons, but with limited liabilities during financial loss.
Types of Organizations:
o Cooperative is a form of business organization where ownership is
Government Organizations may be in the form of national equally shared among members. It is a group enterprise similar to a
government agencies or local government units (LGUs). corporation in having a board of directors and officers who manage the
National government agencies are mandated by law to cooperative.
perform specific duties and responsibilities and provide
services for people nationwide.
Nongovernmental Organizations, on the other hand, may be in the form
Private Organizations, on the contrary, may be subcategorized into of civil society associations, corporate foundations, educational
business associations which promote the interests of the industry institutions, small enterprises, or research institutions among others.
players or business enterprises which earn profits. NGOs aim to serve a particular group or target beneficiaries.
Open System
implies a borderless nature of organization in relation with its
environment.
Behavioral management
theories ushered in the “human
relations” view to management
approximately during 1930-
1950. The four dominant
thoughts, as well as their main
proponents, under behavioral
management.
Modern Management Theories
Modern Management Theories came into approximately during 1950-1980.
Functions, Role, and Skills of a Manager Role of Manager
In any type of organization, whether private, government, or nongovernment, a manager is expected to fulfill the three types of roles:
there are always persons who are designed as managers. A manager is the one who
is mainly responsible and accountable for accomplishing the specific goal or • Interpersonal Roles – a role model for the members of the organization.
objectives of a particular group (such as unit, division, or department) or several As a leader, he provides direction to the activities and outputs of his
groups. subordinates.
• Informational Roles- a manager is also serves the role of a monitor who is
A. Functions of a Manager responsible for gathering relevant information and tracking what is
Managerial function pertains to the specific tasks and happening inside and outside the organization.
responsibilities assigned to managers. A manager is expected • Decisional roles- a manager is an entrepreneur who develops new
to lead, direct, supervise, monitor, evaluate, and control the opportunities for the business. At the same time, he is also a disturbance
performance and output of his group. Managerial functions handler who resolves conflicts among members; a resource allocator who
vary depending on the level of managerial position. allocates funds and distributes resources for effective use; and a negotiator
These levels are as follows: who makes effective agreements with various parties
Political forces
Political forces in the environment pertain to legal regulations, political orientation, government policies, and compliance procedures of government
bodies that affect or control the operations of a firm.
Economic Forces
Economic forces that affect firms to economic conditions relevant to the business. The economic factors include employment rates, income levels,
inflation rates, savings and investment rates, insurance rates, and monetary policies. These are essential to businesses as they influence the cost of
capital, consumer spending, degree of tolerance or aversion to financial risks, job creation, and the market entry or exit of certain types of business.
Sociocultural Forces
Sociocultural forces are people’s characteristics and lifestyles that impinge on the operation of the firm. They pertain to social norms, customs, and
values. To help to understand the cultural forces, it is important to note Hofstede’s study on difference in national cultures based on the following
dimensions: power distance (the degree to which power differences among people are accepted), uncertainty avoidance (the degree to which members
of society become uncomfortable when faced with uncertainty or ambiguity), individualism-collectivism (focus on self-interests vs. focus on the group’s
or society’s interests), and masculinity-femininity (emphasis on career and economic achievement as measures of success vs. emphasis on quality of life
as measures of success).
Technological forces
Recent advancements in technology have led to great strides in product innovations, process improvements, and integrated systems in the
manufacturing and service sectors. Companies continue to invest in research and development to churn new products and services. Innovations in
digital technology, breakthroughs in medical science, and waves of inventions in transportation and communications have contributed significantly to
the rapid technological changes in the environment of many firms. These inventions create and open up new markets.
Natural risks
In addition to PEST environmental analysis, there are also natural risks that can affect the firm’s environment. In the light of adverse impacts of
climate change and global warming business establishments need to assess their exposure to natural risk.
Environmental Scanning and SWOT Analysis
Environmental scanning is the process of assessing the internal and external operating
environment of a firm to analyze its strengths, weaknesses, opportunities, and threats (SWOT
Analysis). The elements of environmental scanning pertain to the external analysis and internal
analysis of the firm.
External Analysis examines the opportunities and threats in the firm based on the difference
forces in the environment (PEST).
Internal Analysis, on the other hand, examines the strengths and weaknesses of the condition
inside the firm.
The local and international Business Environment of the Firm
Competitive Advantage pertains to distinguishing features or characteristics of
a business organization that enable it to perform better than rival organizations.
Benefits of Planning
It sharpens focus
It provides flexibility
It improves coordination
It tightens control
Types of Plans
Long range plans and short range plans
Long range plans are traditionally those that look at three or more years into the future. They are usually called strategic plans as
they chart the company’s long-term direction. Short-term plans are usually those that cover a period of one year or less.
Operational Plans: Standing Plans and Single-use Plans
Standing Plans are used for situations that occur repeatedly. They are in the form of policies, rules, and standard operating
procedures (SOPs). The following clarifies the distinctions among policies, rules, and standard operating procedures.
1. A policy is a general or broad guide for the actions or behavior of people in the workplace.
2. A rule is a more specific guide to actions or behavior in the workplace.
Standard operating procedure (SOP) is a series of action to be followed for a specific situation in the workplace.
Planning at Different Levels of the Firm
• Strategic Plans
Strategic Plans are developed by the top management of the company. Strategic plans cover the entire company and provide the
direction it will take for the coming years.
Strategic planning starts with clarifying the long-term vision and mission of the company. Top managers carefully craft the vision-
mission of the company because they reflect the heart and soul of the firm.
The Vision must be well thought out since it is the compelling future scenario desired for the company. It should be bold,
inspiring, and challenging- something which managers term as “bold, hairy, audacious, and goal-oriented” (BHAG)
The mission pertains to the guiding purpose of the company. It concisely describes what the company does in a manager that
differentiates it from other companies.
The values of a company need to be carefully identified and assessed since they stand for the strong character and ideal qualities of
the organizational members. They state how people in the organization should conduct them, and how they should operate the
business.
• Functional Plans
Functional plans are developed at the middle and supervisory levels. The strategic plans at the top level, therefore, are translated into
more detailed functional plans made at the middle or lower levels of management. Functional plans are also called tactical plans since
they are tactics prepared by the managers occupying the different functional departments, such as production, marketing, finance, and
human resource management.