Management Principles & Dynamics

1. Management Principles & Dynamics

2. What is an ORGANIZATION? An ORGANIZATION is a deliberate arrangement of people to accomplish some specific purpose.

3. Organizations Distinct Purpose Goals Deliberate Structure People

4. Traditional Organization Stable Inflexible Job-focused Work is defined by position Individual-oriented Permanent jobs Command-oriented Managers always make decisions Rule-oriented Relatively homogenous workforce Workdays defined as 9-5 Hierarchical relationships Work at organizational facility during specific hours New Organization Dynamic Flexible Skills focused Work is defined in terms of tasks Team-oriented Temporary jobs Involvement-oriented Employees participation in decision-making Customer-oriented Diverse workforce Workdays have no tieme boundaries Lateral and networked relationships Work anywhere, anytime The Changing Organization

5. What is management? • The process of reaching organizational goals by working with and through people and other organizational resources. • What is a principle? • What is dynamics? • What is the importance of management?

6. Three Main Characteristics of Management 1. It is a process or series of continuing and related activities. 2. It involves and concentrates on reaching organizational goals. 3. It reaches these goals by working with and through people and other organizational resources. 4

7. Today’s Organization and Their Challenges • “Flattening of the world” • “The World is Flat”, Thomas Friedman • Technology • New business models • Strive to remain competitive in the global arena • Deal with uncertain environments • Massive worldwide economic, political, and social shifts

8. Revolution in Management,the New Leader • Ask to do more with less • To engage whole employees • To see change rather than stability as the nature of things • Create vision and cultural values promoting a collaborative workplace • Connecting and collaborating

9. Four Basic Management Functions Planning Organizing Influencing Controlling 5

10. Interrelations of the Four Functions of Management to Attain Organizational Goals Organizational Goals Planning Influencing Controlling Organizing 8

11. Management Process • Management is the process of planning, organizing, leading (influencing), and controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals.

12. Management Functions Planning Organizing Organization Leading/ Motivating Controlling

13. Management Functions • Planning • What, how, and when tasks must be performed to attain organizational goals • Organizing • Arranging and allocating work, authority, and resources developed under the planning function to various individuals or groups within the organization so as to achieve the organization’s goals.

14. Management Functions (cont’d) • Leading (influencing) • Directing, guiding, and motivating the activities of the organization members in appropriate directions. • Controlling • Establishing standards of performance; • Measuring current performance; • Comparing this performance with established standards; and • Taking corrective actions if deviations are detected.

15. Planning Select goals and ways to attain them Performance Resources • Attain goals • Products • Services • Efficiency • Effectiveness • Human • Financial • Raw Materials • Technological • Information Organizing Controlling Monitor activities and make corrections Assign responsibility for task accomplishment Leading Use influence to motivate employees Management Functions ORGANIZATIONAL GOALS

16. Management and Organizational Resources Human Resources Monetary Resources Production Process Capital Resources Raw Materials 7

17. Managerial Effectiveness & Efficiency • How can a manager be effective? • How can a manager be efficient?

18. Managerial Effectiveness & Efficiency • Managerial effectiveness • Management’s use of organizational resources in meeting organizational goals. • “Doing the right thing” • Managerial efficiency • Proportion of total organizational resources that contribute to productivity during the operations process • “Doing things right”

19. Not reaching goals And not wasting resources Reaching goals And not wasting resources EFFICIENT RESOURCE USE Not reaching goals And wasting resources Reaching goals And wasting resources INEFFICIENT EFFECTIVE INEFFECTIVE GOAL ACCOMPLISHMENT Combinations of Effectiveness & Efficiency

20. Management Skills Robert Katz, "Skills of an effective administrator," Harvard Business Review,

21. Management Skills • Technical Skill • Ability to use the procedures, techniques, and knowledge of a specialized field • Human Skill • Ability to work with, understand, and motivate other people as individual or in groups • Conceptual Skill • Ability to integrate and coordinate all of an organization’s interest and activities

22. What it takes to get ahead… • In medium sized companies. • Ability to get along with others: 36% • Integrity: 27% • Knowledge of business: 25% • Industriousness: 25% • Technical experience: 23% • Intelligence: 15% • Leadership: 14% • In large companies. • Integrity: 36% • Ability to get along with others: 32% • Industriousness: 25% • Intelligence: 25% • Knowledge of business: 23% • Leadership: 15% • Technical experience: 14%

23. Management Levels

24. Horizontal Differences • Functional managers, responsible for departments that perform a single functional task (Middle Managers and Supervisors) • General managers, responsible for several departments that perform different functions

25. Functional Departments • Advertising • Sales • Finance • Human resources • Manufacturing • Accounting

26. A Look at Managerial Activity • Provides for variety • Is fragmented • Represented by brevity • Performs a great deal of work quickly

27. FROM HENRY MINTNZBERG, “THE NATURE OF MANAGERIAL WORK”

28. Hierarchial Levels Leader role High Liaison role Med Importance Low Supervisory Managers Middle Managers Top Managers SOURCE: Based on information from A.I. Kraut, P.R. Pedigo, D.D. McKenna, and M.D. Dunnette, “The Role of the Manager: What’s Really Important in Different Management Jobs,” Academy of Management Executive 3 (1989), 286-293.

29. Supervisor as Manager Without the keystone (supervisor), the arch (organization) collapses *Keystone used by Keith Davis, Human Relations at Work: The Dynamics of Organizational Behavior, New York: McGraw-Hill, 1957

30. Revolution in Management,the New Leader • Ask to do more with less • To engage whole employees • To see change rather than stability as the nature of things • Create vision and cultural values promoting a collaborative workplace

31. Managing in the New Era • Internet • Globalization • Knowledge management • Collaboration and communication across boundaries

32. Communitarian spirit Understanding Filipino Values • Emotional closeness and security in the family • Small-group centeredness • Personalism • Authoritarianism From “Management by Filipino Values” by Andres

33. Western versus Filipino values in Industrial Organizations Filipino - Subjective - Personalistic (hiya, bahala na, Awa, padrino, Tulay, pakikisama) - Familial Western - Objective - Impersonal - First loyalty to the organization

34. Industrial Organizations Honesty is placed high “Yes” is “yes” Punctuality, regularity & timekeeping are important Quality is the cry of industry. Customer is King Filipino Values Dignity & family loyalty Yes has several meanings Time is elastic & sense of urgency is absent- “there is always tomorrow” Because of “tiyaga” & “pasensya”, he is not quality conscious - “areglo” or “remedyo” Filipino values in Industrial Organizations

35. Communitarian spirit Management by Filipino Values • Emotional closeness and security in the family • Small-group centeredness • Personalism • Authoritarianism Balance “Trust him like an angel but watch him like the devil” From “Management by Filipino Values” by Andres

36. GSB Mission • Inspired by Lasallian values, the De La Salle Professional Schools, Inc Graduate School of Business aims to be a center of excellence and innovation in management studies for working professionals and entrepreneurs committed to collaborating with the larger community to transform society

37. GSB Mission • To develop outstanding professionals and entrepreneurs who exemplify humanistic values and are socially responsible stewards and change agents • To create and disseminate practice-oriented business and management knowledge that will uplift society

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