The process of coordinating and overseeing the work performance of individuals working together in organizations so that they could efficiently accomplish chosen aims or goals
Management Theories
Managers maintain an approach or set of principles which he uses as a guide in his day to day decisions and strategies
Scientific Management Theory (Taylorism)
Helps to improve an organization's level of task completion through scientific, engineering, and mathematical analysis
Its main objective is improving economic efficiency, especially labor productivity
Scientific Management Theory (Taylorism)
McDonald's institute bonus systems to encourage the employees to perform well to meet goals
General Administrative Theory
Attempts to find a rational way to design an organization as a whole
Calls for a formalized administrative structure, a clear division of labor, and delegation of power and authority to administrators relevanttotheirareas of responsibilities
General Administrative Theory
Apple Inc. is experiencing a problem with their products. Their solution is to divide labor. Divide into specialized teams, from hardware to software
Total Quality Management (TQM)
Continual process of detecting and reducing or eliminating errors in manufacturing
Improves customer experience and ensures that employees are up to speed with training
Total Quality Management (TQM)
When Toyota implemented the Kanban System to make its assembly line more efficient. They decided to keep just enough inventories to fulfill customer orders as they were generated. This emphasizes continuous improvement, waste reduction, and employee empowerment
Organizational Behavior (OB) Approach
The study of human behavior within an organizational environment
Asks questions about why humans behave the way they do in working environments
Organizational Behavior (OB) Approach
An employee suggesting something during a meeting, then being told by one of the higher-ups, "That's never going to work." We are learning organizational culture through observing the consequences of the actions of those around us rather than from our own experience. Positive behavior is implied
Manager
The person who is responsible for the overall operation of the organization as well as the people and all the resources within his/her control to ensure that every element is working together towards its goals and objectives
Managerial Levels
Lower-Level Managers/Frontline
Middle-Level Managers
Top-Level Managers
Lower-Level Managers/Frontline
Responsible for the day-to-day operations
Reports to middle-level manager
Serves as a bridge between management and non-management employees
Middle-Level Managers
Accountable to the top level managers for the activities of their departments
More aware of the company's problem than the top-level managers because they have close contacts with the frontline managers, customers, and other subordinates
Top-Level Managers
They set goals, handle external affairs, and make strategic plans and crucial decisions
Accountable to the shareholders for operating the business
Have authority over the organization's other human resources
Managerial Roles
Interpersonal
Informational
Decisional or Decision-Making
Interpersonal Roles
Figure Head: Stands as a source of inspiration and a symbol of legal authority to his employees and performs social, ceremonial duties like signing of documents and receiving visitors
Leader: Hires, trains, and motivates his personnel and he also communicates performance goals and evaluates the performance of the employees
Liaison: Interacts and communicates with internal and external members of the organization and this networking activity is critical in realizing the organizational goals especially concerning with the customers
Informational Roles
Monitor: The receiver and collector of useful information that can be obtained through meetings, conversations and documentations to keep abreast of the current and industry standards as well as the changes in both internal and external business environments
Disseminator: Takes and distributes information to the appropriate individuals or subordinates regularly
Spokesperson: Transmitsinformation about the organization to outside parties or individuals
Decisional or Decision-Making Roles
Entrepreneur: Designs and initiateschange within the organization and usually involves improvement that will contribute in the achievement of future goals
Mediator/Problem Solver: Handles and resolvesconflicts among employees, difficult problems and non-routine situations like strikes
Resource Allocator: Decides on how to allocate or distribute the resources and with whom to work closely to attain desired outcomes
Disseminator
Takes and distributes information to the appropriate individuals or subordinates regularly
Spokesperson
Transmits information about the organization to outside parties or individuals
Decisional or Decision-Making Role
Entails processing and using of information to make decisions in order for the managers to get things done
Types of Decisional Roles
Entrepreneur
Mediator/Problem Solver
Resource Allocator
Negotiator
Entrepreneur
Designs and initiates change within the organization and usually involves improvement that will contribute in the achievement of futuregoals
Mediator/Problem Solver
Handles and resolves conflicts among employees, difficult problems and non-routine situations like strikes. Responsible for the problems arising internally and externally
Resource Allocator
Decides on how to allocate or distribute the resources and with whom to work closely to attain desired outcomes. Decides which department they are going to give resources to
Negotiator
Represents a team or departments when negotiating an issue with the suppliers, individual employees, unions, customers, the government and outside parties. Usually negotiate on budgeting and purchases. Limited to decisions only
Since managers have varied nature of activities to perform, it is to be expected that they would need equally varied capabilities and skills
Technical Skills
Knowledge and proficiency in activities involving methods, know-how, procedures and processes. Involves working with tools and specific techniques to achieve desired results
Human or Interpersonal Skills
Ability to work with people. A cooperative effort. The need to be skilled in human relations and the creation of work environment in which people feel secured and free to express their opinions
Conceptual Skills
Ability to see the overall picture, to identify important elements in situation, and to understand the relationships among the elements
Environmental forces are factors that affect the operation of the business be it internal factors (within the business) or external factors (outside forces)
International Business
Business activities carried outside the country
Domestic/Local Business
A business operating in their own country and are affected by the economic, legal and cultural factors specific to that domestic environment or nation
When a business activity is performed in an international level, this can be termed as international business. The functions, techniques and processes are just the same with the domestic or local business. The only difference is that in International business, activities are carried outside the country
Aspects of International Business Environment
Social
Political
Economical
Regulatory
Tax
Cultural
Legal
Technology
Aspects of Domestic Business Environment
Economical
Cultural
Legal
Internal Environmental Factors
Value System
Missions and Objectives
Financial Factors
Internal Relationship
Value System
Denotes the culture and norms of the business. The regulatory framework of a business which every employee must abide and act within the context
Missions and Objectives
Different priorities, policies, and philosophies of business are guided by the mission and vision of a business