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The concept of Managementauthor
PhD & chief of Department
Economy and Industrial
Management
Rafael Ciloci
The etymology of word - Management manus(Latin)- hand
manege( French)- place of horse training
,,The Principles of Scientific Management’’
Taylor, 1911.
Oxford dictionary:
1.The process of dealing with or controlling
things or people
2.The people managing a company or
organization
3. the responsibility for and control of a
company or organization
The definition of Management
Art & knowledge of leading
Administrative unity
Governing body
Different definitions for: HRM, Industrial
Management, Operational Management,
SME Management, NGO Management,
Educational Management, Environmental
management, Financial Management,
Strategic Management etc.
The definition of Management
Larry Smeltzer ,, Management Communication a
Strategic Approach’’- Communication is the base of
Management ( 75 % of the manager’s time)
J. Bower professor of Harvard Business School ,, The
Craft of General Management’’:
1. allocation of resources
2. staff development
3. development of organizational structure
4. internal environment
5. operational activity
6. strategy
Planning Organizing Staffing Coordination Controlling
People
Materials
Money
Information
Effectively & Efficiently goals
Goals
Profit Levels or Minimum cost levels
Maintenance or growth of financial strength
Quality standards
Consumer needs
Share of Market
Societal concerns etc.
The Management process
Management process
- Dynamism
- Continuous
- Stability
- Oriented to result
1. Management- science
2.Management- activity & administration
N 2 Manager & his role Manager is a person involved in the administration of an
organization by using and combining human resourses, financial
resourses, material & imformational resourses for achieving some
specific goals.
Manager is defined by 3 issues:
administration- control & ruling of organization
organization- group of people organized for achieving some results
authority- right to use power
manager system organization
Subject of
administration
Object of
administration
Levels of Management
Non Management Employees
Styles of a manager
Autocracy- take own decisions
Liberal- consulting about all questions
Democracy- taking into account opinion of personnel
(majority)
Methods Autocracy Liberal Democracy
of Management
Economical ++ ++ ++
Organizational +++ ++ +
Social & Psychology + ++ +++
Managers oriented to relations or results
Conceptual
skills
Human resource
skills
Technical skills
Middle Level
First Line Supervisors
Top Level
Skills of a manager
Horizontal division of Manager
Production
Research & Development
Human Resources Management
Financial
Commercial & Marketing
Formal and Informal Managers
Formal authority is granted based on the
person's position and according to the
organizational hierarchy followed
Informal authority have to gain by respect
through proven skills and leadership
N 3-4 The Enterprise and external
environment
The entrprise - group of people organized according some
economical, technological, managerial & legal
requirements for performing complex process of work
using some resources in order to produce goods or
services.
Analysis of internal environment:
- internal opportunity
- clarify goals
- Social conditions for personnel
Features of internal environment
Complex system ( HR, financial resources,
material & informational resources)
Open system (input, output)
Technical system
Socio-economical system (human being is most
important resource for enterprise)
Organic system
External Environment
Direct factors:
Clients
Suppliers
Competitors
Trade union
Bank
External Environment
Indirect factors:
Political & legal system
Economical system
Socio-cultural
Technological
Climate
Strengths: are characteristics of the business or
project that give it an advantage over others
Weaknesses: are characteristics that place the
business or project at a disadvantage relative to
others
Opportunities: elements in the environment that
the business or project could exploit to its
advantage
Threats: elements in the environment that could
cause trouble for the business or project.
SWOT :
SWOT Analysis is a planning method used to evaluate
the Strengths, Weaknesses, Opportunities, and Threats
involved in a project or in a business.
It involves specifying the objective of the business or
project and identifying the internal and external factors
that are favorable and unfavorable to achieving that
objective .
Creative use of SWOT
How can we use and capitalize on each
Strength?
How can we improve each Weakness?
How can we exploit and benefit from
each Opportunity?
How can we mitigate each Threat ?
Environmental Scan
Internal Analysis External Analysis
Strengths Weaknesses Opportunities Threats
SWOT Matrix
SWOT analysis framework
SWOT example
Strengths :
Strong brand name
Good reputation among customers
Exclusive access to material resources
Favorable access to distribution networks
Weakness:
A weak brand name
Poor reputation among customers
High cost structure
Lack of access to material resources
Opportunities:
An unfulfilled customer need
Arrival of new technologies
Loosening of regulations
Removal of international trade barriers
Threats:
Shift in consumer tastes away from the
firm’s products
Emergence of substitute products
New regulations
Increased trade barriers
N 5-6 Functions of Management
1. Planning
2. Organizing
3. Staffing
4. Coordinating
5. Controlling
Planning
Analyzing future process and phenomenon,
their impact on the organization, elaboration of
actions and determining needed resources.
Forecast ( 3-5 years period) – exploration,
fundamental objectives & resources
Plan- ( 1 month- 3 years period)- 1 month plan
is better defined & is more specific
Program - ( 1hour - 1 month period) – very
specific, detailed, with certainty & obligatory to
achieve.
Planning
Analyzing the activity of organization
Analyzing the external factors of
organization
Setting the schedule
Identification of resources
Plan development
Control of results
Organizing
Relating people and things to each other in such a way
that they are combined into a unit capable of being
directed toward the company’s objectives.
Differentiation means that the organization is
composed of units that work on specialized tasks using
different work methods and requiring employees with
unique competencies.
Integration means that the various units must be put
back together so that workis coordinated.
Organizing
Centralization- decision authority is located near the top of the
organization.
Decentralization- decision authority is pushed down the chain of
command to lower levels.
FactorsThat Influence Centralization /Decentralization
Amount of change and uncertainty
Availability of competent managers
Corporate culture
Geographical dispersion & Size of organization
Efficiency of communication and control systems.
Cost and risk of failure
Organizing
Organizing is determined by:
Division of labor
Delegation of authority
Establishing of organizational structure
(configuration of interpersonal and
authority relationships within a work unit)
Departmentalization( R & D, Production,
HR, Commercial-Marketing, Financial)
Organizing
Organizing of departments
Role & position of department
Establishing relations between departments
Establishing purposes, tasks & authority of every
position.
Establishing relations between positions.
Staffing
Recruiting
Selecting
Hiring
Training
Motivating
Motivation
Motivation is a complex activities that
determine personnel to achieve planned
objectives.
Correlation between personal interest &
assigned tasks.
Positive motivation
Negative motivation
Diversity of work, training, opportunity for the
manifestation of initiatives, increasing
responsibility, delegation, self control.
Motivation
McGregor’s Theory X & Theory Y
Theory X manager believes that people need
to be controlled & coerced
Theory Y managers believes that people are
willing to work, are creative & independent &
self directed when motivated properly.
Motivation
Maslow’s Hierarchy of Needs
5 levels- physiological, security, social, esteem,
self- actualization
Each level must be substantially satisfied before
moving to the next level
Refinements of Maslow’s theory today include a
recognition that individuals could be on more
than one level at a time and could move up and
down the hierarchy.
Maslow’s Hierarchy
Motivation
Herzberg’s Motivation- Hygiene Theory
Hygiene factors are extrinsic to the work (work
environment, relationship with supervisor & salary). If
absent, result is dissatisfaction, if present, result is
neutrality.
Motivator factors are intrinsic to the work itself (
achievement, recognition, nature of work, responsibility)
If absent, effect is neutral, if present, result is motivation.
Factor Affecting Delegation
Love for Authority (Boss)
Fear of losing position (Boss)
Lack of Trust (Boss)
Fear of Criticisms (Both)
Low Self confidence (Subordinate)
Absence of rewards (Subordinate)
Coordination
It is the act of assembling and synchronising
people and activity so they can act in harmony
to achieve the organisation goals.
Guidance of resources in a way to be available
on right time, required amount & quality for
achieving goals of organization.
Important fast communication flow, without
turbulence of message
Coordination
Two-way communication
Multilateral communication
Forms of coordonation:
-direct
-instructions
-procedures
-reports
- committee
Control
Controlling is the process of comparing
results obtained to objectives and taking
corrective actions when deviations occur.
It involves three steps:
· Establishing standards
· Measuring performance and comparing
actual results with standards
· Correcting deviation
Control
Preventive control (before working
process) raw material, macninery etc.
Current control ( during work process )
determine shortcomings, costly.
Final control ( at the end of working
process ) to stop defect products on the
market
Control
Common reason for controlling are to:
achieve planned performance and
results
obtain required quality in production
measure employee performance
protect the organization assets from
misuse.
Control
Control features:
Flexibility
Clear
Low cost