MANAGEMENT CONCEPTS

BY
WASIF
TANIA
KUNTLESH
NARASIMHA
DEEPTHI
PRABHATH
SUMITH
KAUSTAV
 Management Is…

Efficiency
Efficiency
Getting
Getting work
work
done
done through
through
others
others Effectiveness
Effectiveness

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 Management Functions
3
Management Functions

Planning
Planning

Organizing
Organizing

Leading
Leading

Controlling
Controlling

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 Managerial Roles

Interpersonal Informational Decisional

Figurehead Monitor Entrepreneur

Leader Disseminator Disturbance

Handler
Liaison Spokesperson
Resource
Allocator

Negotiator
4

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4
 What Companies Look for
in Managers

Technical
Technical Skills
Skills Human
Human Skills
Skills

Conceptual
Conceptual Skills
Skills Motivation
Motivation to
to Manage
Manage

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 Why We Need Managers Today
Then
Then Now
Now

Work
Work in
infamilies
families Work
Workin
infactories
factories

Specialized,
Specialized,
Skilled
Skilledlaborers
laborers unskilled
unskilledlaborers
laborers

Small,
Small,self-organized
self-organized Large
Largefactories
factories
groups
groups

Unique,
Unique,small
smallbatches
batches Large
Largestandardized
standardized
of
ofproduction
production mass
massproduction
production

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 Scientific Management
7

Scientific
Scientific Management
Management

 Studies
Studies and
and tests
tests methods
methods to
to identify
identify
the
the best,
best, most
most efficient
efficient ways
ways

“Seat-of-the
“Seat-of-the Pants”
Pants” Management
Management

 No
No standardization
standardization of
of procedures
procedures
 No
No follow-up
follow-up on
on improvements
improvements

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 Taylor’s Four Management Principles

Develop
Develop aa science
science for
for each
each element
element of
of aa man’s
man’s work,
work,
which
which replaces
replaces the
the old
old rule-of-thumb
rule-of-thumb method.
method.

Scientifically
Scientifically select
select and
and then
then train,
train, teach,
teach, and
and
develop
develop the
the workman.
workman.

Cooperate
Cooperate with
with the
the men
men to
to insure
insure all
all work
work is
is done
done in
in
accordance
accordance with
with the
the principles
principles of
of the
the science.
science.

There
There is
is almost
almost equal
equal division
division of
of the
the work
work and
and the
the
responsibility
responsibility between
between management
management and and workmen.
workmen.
8
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 General Administrative Theorists
 Henri Fayol
 Believed that the practice of management was distinct from
other organizational functions
 Developed fourteen principles of management that applied to
all organizational situations
 Max Weber
 Developed a theory of authority based on an ideal type of
organization (bureaucracy)
 Emphasized rationality, predictability, impersonality,
technical competence, and authoritarianism

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 Human Relations Management

Efficiency alone is not

enough to produce
organizational success.

Success also depends on

treating workers well.

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10
 Changing Environments
Characteristics of
Changing External Environments

Environmental
EnvironmentalChange
Change

Environmental
EnvironmentalComplexity
Complexity

Resource
Resource Scarcity
Scarcity

Uncertainty
Uncertainty

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 External Environment

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12
 Components of the
General Environment

• Economy
• Technological trends
• Sociocultural trends
• Political / Legal trends

13
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 Advocacy Groups

Advocacy Groups

 Groups of concerned citizens who band

together to try to influence the business
practices of specific industries,
businesses, and professions

 Techniques to try to influence companies

 public communications
 media advocacy
 product boycotts

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14
 Making Sense of
Changing Environments

Environmental
Environmental
Scanning
Scanning
Evaluating
Evaluating
Interpreting
Interpreting
External
External Environmental
Environmental Factors
Factors
Environments
Environments
Acting
Acting on
on
Threats
Threats and
and Opportunities
Opportunities

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15
Successful Organizational Cultures
Adaptability
Adaptability
Consistency
Consistency Involvement
Involvement
Clear
ClearVision
Vision

Sales
Sales Employee
Employee
Growth
Growth Satisfaction
Satisfaction
Return
Return on
on Profits
Profits
Quality
Quality
Assets
Assets

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 Ethical and Unethical
Workplace Behavior

Ethics

The set of moral principles or values

that defines right and wrong for a
person or group.

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 Workplace Deviance

Workplace Deviance
Unethical behavior that violates
organizational norms about
right and wrong

 Two dimensions
 Degree of deviance
 Target of deviant behavior

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 Types of Workplace Deviance
Organizational

Production
Production Property
Property
Deviance
Deviance Deviance
Deviance

Minor Serious

Political
Political Personal
Personal
Deviance
Deviance Aggression
Aggression

Interpersonal

Adapted from Exhibit 4.1

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 Practical Steps to
Ethical Decision Making

Select
Select and
and hire
hire ethical
ethical employees
employees

Establish
Establish aa Code
Code of
of Ethics
Ethics

Train
Train employees
employees to
to make
make ethical
ethical decisions
decisions

Create
Create an
an ethical
ethical climate
climate

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20
 What Is Social Responsibility?
Social Responsibility

A business’s obligation to…

 pursue policies
 make decisions
 take actions that benefit society

21
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 To Whom Are Organizations
Socially Responsible?

Shareholder
Shareholder Maximize
Maximize Profits
Profits
Model
Model

Stakeholder
Stakeholder Satisfy
Satisfy Interests
Interests
Model
Model of
of Multiple
Multiple Stakeholders
Stakeholders

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 Planning:
Choosing a goal and developing a
method of strategy to achieve that goal

 Types of planning
 Informal: not written down, short-term focus; specific to an
organizational unit.
 Formal: written, specific, and long-term focus, involves shared
goals for the organization.
 Purposes of Planning
 Provides direction
 Reduces uncertainty
 Minimizes waste and redundancy
 Sets the standards for controlling

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What Is Rational Decision Making?
Decision Making

The process of choosing a solution from

available alternatives.

Rational Decision Making

A systematic process of defining

problems, evaluating alternatives, and
choosing optimal solutions.

24
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Steps to Rational Decision Making
11 Define
Define the
the problem
problem

22 Identify
Identify decision
decision criteria
criteria

33 Weight
Weight the
the criteria
criteria

44 Generate
Generate alternative
alternative courses
courses of
of action
action

55 Evaluate
Evaluate each
each alternative
alternative

66 Compute
Compute the
the optimal
optimal decision
decision

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 Devil’s Advocacy
Steps to Establish a Devil’s Advocacy Program

1.
1. Generate
Generateaapotential
potentialsolution
solution
2.
2. Assign
Assignaadevil’s
devil’sadvocate
advocatetotocriticize
criticizeand
andquestion
question
3.
3. Present
Presentthe
thecritique
critiqueofofthe
thesolution
solutionto
to
key
keydecision
decisionmakers
makers
4.
4. Gather
Gatheradditional
additionalinformation
information
5.
5. Decide
Decidewhether
whetherto
touse,
use,change,
change,orornot
notuse
use
the
theoriginally
originallyproposed
proposedsolution
solution

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 Dialectical Inquiry
Steps to Establish a Dialectical Inquiry Process

1.
1. Generate
Generateaapotential
potentialsolution
solution
2.
2. Identify
Identifythe
theassumptions
assumptionsunderlying
underlyingthe
the
potential
potentialsolution
solution
3.
3. Generate
Generateaaconflicting
conflictingcounterproposal
counterproposalbased
based
on
onopposite
oppositeassumptions
assumptions
4.
4. Have
Haveadvocates
advocatesof ofeach
eachposition
positionpresent
presenttheir
their
arguments
argumentsandandengage
engageininaadebate
debateininfront
frontof
of
decision
decisionmakers
makers
5.
5. Decide
Decidewhether
whethertotouse,
use,change,
change,orornot
notuse
use
the
theoriginally
originallyproposed
proposedsolution
solution

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 Nominal Group Technique
Steps to Establish Nominal Group Technique

1.
1. During
Duringaa“quiet
“quiettime,”
time,”group
groupmembers
memberswrite
writedown
down
as
asmany
manyproblems
problemsandandsolutions
solutionsas
aspossible
possible
2.
2. Each
Eachmember
membershares
sharesone
oneidea
ideaat
ataatime
time
3.
3. Ideas
Ideasare
areposted
postedon
onflipcharts
flipchartsuntil
untilall
allideas
ideasare
areshared
shared
4.
4. Group
Groupdiscusses
discussesadvantages/disadvantages
advantages/disadvantages
5.
5. Ideas
Ideasare
areranked
rankedduring
duringaasecond
second“quiet
“quiettime”
time”
6.
6. Members
Membersread
readrankings
rankingsaloud,
aloud,and
andthe
theidea
ideawith
withthe
the
highest
highestaverage
averagerank
rankis
isselected
selected

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 Delphi Technique
Steps to Establish Delphi Technique

1.
1. Assemble
Assembleaapanel
panelof
ofexperts.
experts.
2.
2. Create
Createaaquestionnaire
questionnaireof
ofopen-ended
open-endedquestions.
questions.
3.
3. Summarize
Summarizethetheresponses
responsesand
andfeed
feedback
backto
tothe
thepanel
panel
until
untilthe
themembers
membersreach
reachagreement.
agreement.
4.
4. Create
Createaabrief
briefreport
reportand
andsend
sendto
tothe
thepanel
panelmembers
membersforfor
agreement/disagreement.
agreement/disagreement.
5.
5. Continue
Continuethe
thefeedback
feedbackprocess
processuntil
untilpanel
panelreaches
reaches
agreement.
agreement.

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 Stepladder Technique
Member 4 Joins Group Members 1, 2, & 3 Discussion is Held and
Shares thoughts, ideas, Share previous Tentative Group
Step 3
recommendations thoughts, ideas, Decision is Made
recommendations

Member 3 Joins Group Members 1 & 2 Discussion is Held and

Shares thoughts, ideas, Share previous Tentative Group
Step 2 recommendations Decision is Made
thoughts, ideas,
recommendations

Member 1 Member 2 Discussion is Held and

Shares thoughts, ideas, Shares thoughts, ideas, Tentative Group
Step 1 Decision is Made
recommendations recommendations

Adapted From Exhibit 5.13

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30
 Strategy-Making Process

Assess need Conduct a Choose

for Situational Strategic
strategic change Analysis Alternatives

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 Industry-Level Strategies

Five
Five
Industry
IndustryForces
Forces Positioning
Positioning
Strategies
Strategies Adaptive
Adaptive
Strategies
Strategies

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32
 Firm-Level Strategies

Basics
Basicsofof Strategic
StrategicMoves
Moves
Direct
Direct
Competition in
in
Competition Entrepreneurship
Entrepreneurship
Direct
Direct
and
and
Competition
Competition Intrapreneurship
Intrapreneurship

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33
 Why Innovation Matters

Technology Innovation
Cycles Streams

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 Technology Cycles
Technology Cycle

A cycle that begins with the “birth” of a new

technology and ends when that technology
reaches its limits and is replaced by a newer,
better technology.

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 Innovation Streams
Innovation Streams

Patterns of innovation over time that can

create sustainable competitive advantage.

Technological Discontinuity

A scientific advance or unique combination

of existing technologies that creates a
significant breakthrough in performance or
function.
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 What Is Global Business?
Global Business

The buying and selling of goods and

services by people from different
countries.

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 Forms for Global Business

Cooperative
Exporting
Contracts
Global
New
Ventures

Wholly Owned Strategic

Affiliates Alliances

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 Cooperative Contracts
AAdomestic
domesticcompany
companyreceives
receivesroyalty
royalty
payments
paymentsforforallowing
allowinganother
another
Licensing
Licensing company
companyto toproduce
produceits itsproduct,
product,sell
sell
aaservice,
service,ororuse
useits
itsbrand
brandname
nameininaa
specified
specifiedforeign
foreignmarket
market

AAcollection
collectionof
ofnetworked
networkedfirms
firmsinin
which
whichthe
themanufacturer
manufactureror
ormarketer
marketerof of
Franchising
Franchising aaproduct/service
product/servicelicenses
licensesthe
theentire
entire
business
businesstotoanother
anotherperson
personoror
organization
organization
3.2

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 Strategic Alliances
An
Anagreement
agreementin
inwhich
whichcompanies
companies
Strategic
Strategic combine
combinekey
keyresources,
resources,costs,
costs,risk,
risk,
Alliance
Alliance technology,
technology,and
andpeople
people

AAstrategic
strategicalliance
alliancein
inwhich
whichtwo
two
Joint
JointVenture
Venture existing
existingcompanies
companiescollaborate
collaborateto
to
form
formaathird,
third,independent
independentcompany
company

40
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 Wholly Owned Affiliates
(Build or Buy)
Advantages


 Parent
Parentcompany
companyreceives
receivesall
all of
of the
the
profits
profitsand
andhas
hascomplete
completecontrol
control

Disadvantages

Expense
Expenseofof building
buildingnew
new operations
operations
or
orbuying
buyingexisting
existingbusiness
business


Losses
Losses can
can be
beimmense
immense ifif the
the venture
venture fails
fails
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