Basic Principles of Management

New School / Old SchoolForces that Shape Management Today

Friendly Reminders

Each Team Must Present a Case Five content sections:

Summary Mission / Analysis SWOT Recommendations Research

Research paper must be submitted by the last class of the term

Management Is ... Working through others to accomplish tasks that fulfill organizational

objectives Efficiency – getting work done with a minimum of expense or waste Effectiveness – accomplishing tasks that help fulfill organizational

objectives – doing the right thing ... Management functions:

Planning – determining goals and how to achieve them Business Plan and Forecast

Organizing – deciding who, what and where of said planning decisions Tactical and logistical parameters

Leading – inspiring and motivating workers and teams Heading organizations and efforts

Controlling – monitoring progress and taking corrective actions if needed

Accounting, Quality and Remedy

New Style Managers

Think in terms of team leaders, mentors and sponsors

They work with anyone who can help achieve a groups goals

Perform functions that “make things happen” Organizing people, projects, processes Meeting the competition Motivating and inspiring

Mintzberg’s Categories of Managerial Roles Inter-personal

Figurehead: ceremonial duties Leader: encourage people to accomplish goals Liaison: bridging to outside organizational structures

Informational Disseminator: sharing information Monitor: scan for new and updated info Spokesperson: sharing info outside the dept

Decisional Entrepreneur: making changes to fit the needs of the

business and market Disturbance Handler: acting to solve severe problems Resource Allocator: budget decisions Negotiator: building schedules, projects, resources, etc.

A Manager’s Skill Set Technical

Specialized techniques and knowledge Programming, Accounting, Statistics, Forecasting, etc.

Important for lower level managers Human

The ability to work well with others Essential at all levels of management Upper level managers need to learn more about this!

Conceptual Skills How problems manifest from many components of the environment

Important at mid and upper level mgt Conceptual intelligence involves problem solving – liner and lateral

thinking abilities Motivation to Manage

How enthusiastic employees are about managing the work of others The outward “appearance” of a strong desire to “manage”

Ten Top Mistakes Mangers Make

Insensitive to others Cold, aloof, arrogant Betrayal of trust (Emerson) Overly ambitious Unable to manage the business Unable to staff effectively Unable to think strategically Unable to deploy different styles Over dependent on advocate or mentor Only issues “ownership” never “membership”

CEO’s, as self proclaimed owners of multi billion dollar corporations, often times have major management and leadership flaws.

This is taken from a 2003 edition of Business Week article titled “The Many faces of the Dysfunctional CEO”

Why Management Matters

Good management can increase customer satisfaction because employees tend to treat customers the same way that their manger’s treat them!

Investing in people and management will create long lasting competitive advantages that are, in fact, difficult for other companies to duplicate.

Past Organizations

Structured around autonomous self contained functions: Accounting Finance Human Resources Law Marketing Strategic Planning ...

Still, many companies, oriented themselves around this “past style” even though they pay major lip service to collaborative and fluid structures!

Six Forces Shaping New Mgt Structures

Crisis Management Issues Management TQM Environmentalism Globalism Ethics

Crisis Management

Design and Implement Plans for: Detection Prevention Containment Recovery and Learning from major crisis

Examples: Ford’s Pinto (exploding fuel tank) NASA (Challenger disaster)

Firestone Tires (exploding tires) CIA / FBI (failure to protect the nation)

Issues Management

Assess broad societal and industry trends and the power of associated stockholders in shaping issues

Examples: Marketing Myopia (being set “back to zero” by new paradigm) Deregulation (airline industry) Wireless Industry (brain cancer medical risk) Tobacco Industry (public health and productivity) Food Industry (use of hydrogenated and partially hydrogenated oils to prolong shelf life)

TQM

Goals of continual improvement regarding Products Manufacturing Operations Distribution

Examples: Quality Circles (integration of functions)

Effectiveness (doing the right thing)

Environmentalism

Designing products, services and manufacturing processes to benefit the environment and community

Examples: Clean fuel autos (Hydrogen)

Less Paper Waste (BK)

More efficient appliances

Energy efficient homes

Globalism

The innovation and building of products and service to compete in world markets

Examples: Japanese Auto Makers US vs. European jet Makers Software Development (US vs. India and China)

Ethics

Creating codes and a culture to inspire and increase productivity and a greater “social fairness”

Examples: Corporate Thieves SO 2002

Gerber Baby Food (Apple

Juice fake)

External Environments

Management does not exist within the “bubble” of an organization or firm

It is constantly impacted by the external environment which exerts the pressures of change, complexity and resource scarcity Environment Change: number and pace Environment Complexity: no. of external variables Resource Scarcity: raw materials or people Uncertainty: level of predictability

Types of Environments

General: Economy Technology Socio cultural Political

Specific: The Customer Competitors Suppliers Industry Regulations Public Pressure Groups

Team Presentation

Sample BW Article: “Boarders are so 20th Century”

How Companies are organizing in a hostile and intensely competitive environment

Virtual Organizations Real Managers Dynamic Results

“Borders Are So 20th Century"

Business Week Innovations in Strategic Management:

The Trend Micro Inc. “Case” Solve network virus problems (for example the Blaster

Worms of last month) Must respond to “world network” threats at “light speed” Exist in a highly hostile and competitive environment New breed of high tech organization centering around

decision making, action and evaluation Average revenue increase of “tech trans-nationals” is >

25% Excellent profits margins How is this being done in the tech “post bubble world?”

The Virtual Organization

“Trend Micro Inc is able to respond quickly because it’s not organized like most companies”

Virtual decision structure No HQ location Extensive “second nature” use of global

communications, information and knowledge ... Real time e-mail and documentation High speed, cost effective, data links & research Powerful mobile voice, video, text connections to assist

in decision making

Real Managers

Working in an “organic” environment Contributive nature of specialized knowledge Continual redefining of situations Spread of commitment Lateral rather than vertical direction of contact

Creating global “Natural Teams” as part of a continuous morphing organism constantly adapting to threats and building its strength through organizational learning adventures of survival ... fjd

Dynamic Decisions

That solve highly complex and urgent technical problems (reducing “time to decision fjd)

Decision Making that results in technology innovation and leadership

Building on good decisions “real time” to render the best in customer satisfaction and service ...

Types of Firms - Prahalad

Companies that operate in one nation and sell to others

Multinationals set up foreign operations to handle one country’s sales

MNC’s operate an entire line of business in another nation

Transnationals “decisions flows to solve problems and

enhance market position fjd

Backup For Discussion Only

Organizational Issues

Culture National, Regional, Psychological

Longevity Only existed for a few years

Scalability Can larger companies utilize this model?

As related to global enterprises Political and Ethical notions