Management Chapter 1 - Introduction to Management - RS

7/29/2019 Management Chapter 1 - Introduction to Management - RS

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RULES

Min attendance 80%

10 minutes rule

No sandals or meal in class, plain water only! Silence / turn off cell phones

Zero tolerance for cheating and plagiarism


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COURSE OBJECTIVES

Students will be equipped with a broad

insight of management theories and their

practices in business.

An overview of management environment,functions and areas will be delivered, as well

as some managerial skills.


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AFTER THIS COURSE YOU ARE

EXPECTED TO

Have substantial knowledge andunderstanding about how to run a business

organization and related issues

Be equipped with basic managerial skills andart

Identify, analyze and design a business

organization and its managerial issues


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EVALUATION

Assignments, reviews, quizzes,attendance, attitude

: 45 %

Mid-Exam : 25 %

Final-Exam : 30 %


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Management and Organization

CHAPTER 1

INTRODUCTION TOMANAGEMENT

Arief Samuel Gunawan ST., MIM.


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BUSINESS ORGANIZATION

Business Organization or activities that createsvalue by delivering products or services to

consumers to gain profit

Business Objectives

Profit

Growth

Survival

Social Environmental Responsibility

Main activities : Manufacturing

Trade / Retail

Service


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ORGANIZATION

What is an Organization? A collection of people working together to achieve a

common purpose

Members are able to accomplish more than they wouldindividually

Thepurpose is to produce goods and/or services

that satisfy the needs of customers Quality products and customer satisfaction are sources

of organizational strength and performance advantage

As a system organizations are open systems that interact with their

environments

organizations transform resource inputs into product outputs

(goods and services)

feedback from the environment tells an organization how well itis meeting the needs of customers and society


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VALUE

Value = Benefits / Price

Value = Quality received / Expectations

Profit and Margin

Revenue Cost = Profit

Cost every expenditure need to create value

Business consists of a set of value adding activities

Goal of Profit oriented organization maximizeprofit

Goal of Non Profit organization maximize the

creation of product or service with its resources


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BUSINESS ENVIRONMENT

3 layers of environment : External / macro environment : politics,

economics, socioculture, technology, legal,environment

Industrial environment : supplier, customer,related government and financial institutions,competitors

Internal environment

Stakeholder vs shareholder Stakeholder : every side affecting or affected by

the organization

Shareholder : every side with ownership of theorganization


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BUSINESS ENVIRONMENT


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STAKEHOLDERS

Source: wikipedia


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DEFINITION OF

MANAGEMENT The Classic Definition

The art of getting things done through people.

Mary Parker Follett

How to organize the organizations

resources to reach the business goal in the

most effective and efficient way

Management or business system is a

system which transforms resources toreach the business goal

Organizational structure : hierarchy and

distribution of responsibilities in companies


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EFFECTIVENESS VS

EFFICIENCYEffectiveness

How far an organization reach its certain

goals

doing the right things.Efficiency

How far an organization use a minimal

input to produce a maximal output doing things right.


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ENTERPRISE RESOURCES

5 M + I

Man : managers, operators, consultants,staffs

Machine : machines, tools, land, buildings

Material : raw material, support material, etc

Method : procedures, rules, policy

Money : capital

Information and Knowledge


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COMPETITIVE ADVANTAGE

Competitive advantage is acompanys ability to perform in one or

more ways that competitors cannot or

will not match. PhilipKotler

Getting Competitive advantage Position and performance

Improving Customer value, satisfaction and loyalty

Improving Market share and profit

Lower cost

Sources

Technology and skills

Resources


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MANAGEMENT ACTIVITIES/

FUNCTIONS Planning

Setting goals and defining the actions necessary to achieve thosegoals.

Organizing

The process of determining the tasks to be done, who will dothem, and how those tasks will be managed and coordinated.

Leading / Actuating / Influencing The capacity to direct and motivate the members of work groups

toward the accomplishment of organizational goals.

Controlling

Monitoring the performance of the organization and its progress inimplementing strategic and operational plans.

Identifying deviations between planned and actual results.

Taking corrective action

Ensuring that the organization is moving toward the achievementof its goals.


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MODEL OF MANAGEMENT

ACTIVITIES

Courtesy of : Prentice Hall 2005


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FUNCTIONAL AREAS IN

MANAGEMENT Strategic Management

Marketing Management

Operations Management

Human Resources Management

Information Management

Finance and Accounting Management


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MANAGERS

Manageris someone in an organizationwho is responsible for the work

performance of one or more employees

ex. supervisor, team leader, division head,

administrator, project director

Managers work:

long hours

at an intense pace

at fragmented and varied tasks

largely through interpersonal relationships


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LEVELS OF MANAGEMENT

Lower Management

Middle Management

TopManagement

Operationals

StrategicPlanning

ManagementControl

OperationalControl

TransactionProcessing


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MANAGER TYPES

Types of Managers Top managers

ensure that major performance objectives are established and accomplished in

accordance with organizations purpose

responsible for performance of an organization as a whole or one of its significant

parts

ex. CEO, COO, President, VP Middle managers

report to top managers

in charge of relatively large departments or divisions

implement complex projects that require the participation of persons from different

parts of organizations

ex. Plant managers, division managers, branch sales managers, clinic directors,deans

Team Leader or Supervisor

in charge of a smaller work unity composed of nonmanagerial workers

ensure that their work team or unit meet performance objectives that are

consistent with plans of middle and top management

ex. team leader, supervisor, department head, unit manager


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ACCOUNTABILITY AND

PERFORMANCE Managers set the conditions through which

individuals and groups contribute to

organizational productivity

Accountability is the requirement of one person

to answer to a higher authority and show theresults that were achieved for assigned duties

Managers fulfill performance accountability while

achieving high performance outcomes and high

levels of job satisfaction


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MANAGERIAL ROLES

Interpersonal roles - interactions withpersons inside and outside the work unit

Informational roles - involve the giving,

receiving and analyzing of information Decisional roles - involve using

information to make decisions to solve

problems or address opportunities


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MANAGERIAL SKILLS AND

COMPETENCIES Managerial Skills and Competencies

Skill- ability to translate knowledge into action

that results in desired performance technical - special proficiency or expertise

human - work well with others conceptual - ability to view situations broadly and to

solve problems

Managerial Competency- skill or personal

characteristic that contributes to high

performance in a management job

includes

the management process

the managers roles


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MANAGEMENT SKILL

AREAS



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MANAGEMENT CAREERS



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MANAGEMENT

CHALLENGES Ethics Globalization

Technology

Knowledge Diversity

Change

Documents

Management Chapter 1 - Introduction to Management - RS