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M3 Principles of management M3 Ch.1 Introduction to Management and Organiz

1. ho are Managers !

Q1: Explain How Managers Difer From Non-Managerial Employees.

- Managers :Coordinate and o"ersee the #or$ of other people so that organizationalgoals can %e accomplished.

- Non-Managerial Employees :or$ directl& on a 'o% or tas$ and ha"e no onereporting to them.

Q2: Describe how o classi!y managers in organi"aions.

- Traditionally Structured Organizations :(a"e )rst*line+ middle+ and topmanagers.

- In other more loosely confgured organizations, -he managers ma& not %e asreadil& identi)a%le+ although someone must ful)ll that rule.

e"els Of Management ,

0. hat is Management !

Q1: De#ne Managemen.

Management in"ol"es coordinating and o"erseeing the ecient and e2ecti"e

completion of others3 #or$ acti"ities.

Chapter ! "

Introduction to Management and

Organizations

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Q2: Explain why e$ciency an% Efeci&eness are imporan omanagemen.

# E$ciency :Means doing things right. E%ecti&eness :Means doing theright things.

52ecti"eness and 5cienc& in Management ,

6. hat managers do !

Q1: Describe he !o'r !'ncions o! managemen.

The Four Functions Of Management are :'( )lanning, 7e)ning goals+ esta%lishing strategies and de"eloping plans.

*( Organizing, Arranging and 8tructuring #or$.

C( +eading, or$ing #ith and through people.

,( Controlling, Monitoring+ Comparing and Correcting or$ Performance.

Management 9unctions ,

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Q2: Explain Min"berg(s managerial roles.

Mintzbergs Managerial Roles Include :

'( Interpersonal, hich in"ol"es people and other ceremonial/s&m%olic duties: )gurehead+ leader+ and liaison;.

*( Inormational , hich in"ol"e collecting+ recei"ing and disseminating information: Monitor+ disseminator+ and spo$esperson ;.

C( ,ecisional, #hich in"ol"es ma$ing choice : 5ntrepreneur+ distur%ance hander+resource allocator + and negotiator;.

Mintz%erg3s Managerial

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-he 7ictionar& Of -his PartNo. ord -ranslation

! 'ccomplish =>?@

. 'rrange B?@ / DE@

3 Ceremonial FGHJKL

/ Compare H@0 Confgured @QRD

1 Coordinate ST?@

2 Correcting UQV@ / WXV@

,ecisional 4oles Y@LEGL LZ[\L

5 ,istur6ance 7andler ]H^LE_`G bGH

!8 ,isseminating ?@ / E?@

!! ,isseminator H / EH

!. E%ecti&eness YjkHGL

!3 E$ciency HRGL

!/ Ensure qJ@ / @!0 Entrepreneur [H@EGL / [HGL

!1 Esta6lish v?@

!2 9igurehead = / Qw

! 9ulfll FxQ@ / =>?@

!5 9unctions yH{Z

.8 oal 'ttainment |}GL SjXD

.! Identifa6le |E~ / =j

.. Inormational 4oles YjDHQkGL LZ[\L

.3 Interpersonal 4oles YjkHJGL LZ[\L

./ +eader H.0 +eading [Hj

.1 +iaison wZ YkK

.2 +oosely Y@EX^ / Sjk R^

. Manager E@GL

.5 Management L[L

38 Managerial 4oles Y@L[L LZ[\

3! Monitoring YLEGL

3. Negotiator ZHGL

33 Non-Managerial

Employees

: @E@GL Ej ; j{QGL

3/ Organization YB?GL

30 O&ersee LE@

31 4eadily YGQ}T^

32 4esource 'llocator [LQGL Q

3 Setting oals |L\L `Z

35 Spo;es )erson H^ XJGL

/8 Stated )urposes Y?kGL |L\L / LE\L

/! Strategies Yj>jDLEJL _

/. Stri&e `H?@ / WxHR@

/3 Structure H?GL / Rj}GL

// Structured F? / B?/0 Sym6olic ,uties Y@=EGL ]HLQGL

/1 Traditionally H@jkD

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/2

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* 7escri%e atz3s three essential managerial s$ills and ho# the importance of theses$ills changes depending on managerial le"el.* 7iscuss the changes that are impacting manager3s 'o%s.* 5plain #h& customer ser"ice and inno"ation are important to the manager3s 'o%.

atz3s managerial s$ills include technical : 'o%*speci)c+ $no#ledge and techniues ;+human: a%ilit& to #or$ #ell #ith people ;+ and conceptual : a%ilit& to thin$ andconceptualize ;. -echnical s$ills are most important for lo#er*le"el managers+ #hileconceptual s$ills are most important for top managers. (uman 8$ills are euall&important for all managers.

-he changes facing manager3s 'o%s include technolog& : digitalization ;+ increasedsecurit& threats+ increased emphasis on ethics and increased competiti"eness.

Managers must %e concerned #ith customer ser"ice %ecause emplo&ee attitudes and%eha"iors pla& a %ig role in customer satisfaction. Managers must also %e concerned#ith inno"ation %ecause it is important for organizations to %e competiti"e.

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* 8$ills Needed at 7i2erent Managerial e"els ,

Important Managerial 8$ills ,

* 7elegating 52ecti"el& : ma$ing sure or$ gets done right ;.* eing an e2ecti"e Communicator.* -hin$ing Criticall&.* Managing or$ oad/time.* Identif&ing clear roles for emplo&ees.* Creating an 5n"ironment of openness+ trust and challenge.

Changes A2ecting a Manager3s o% ,

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hat Is An Organization!

* 5plain the characteristics of an organization.* 7escri%e ho# toda&3s organizations are structured.

An Organization has three characteristics , A distincti"e purpose+ composed of people+and a deli%erate structure. Man& of toda&3s Organizations are more open+ ei%le+ andresponsi"e to changes than organizations once #ere.

* Characteristics of Organizations ,

h& 8tud& Management!

* 7iscuss #h& it3s important to understand management.* 5plain the uni"ersalit& of management concept.* 7escri%e the re#ards and challenges of %eing a manager.

It3s Important to stud& management for three reasons , :1; -he ni"ersit& ofManagement+ #hich refers to the fact that managers are needed in all t&pes and sizesof organizations+ at all organizational le"els and #or$ areas+ and in all glo%allocations :0; -he realit& of or$ that is+ &ou #ill either manage or %e managed and :6; -he a#areness that there are signi)cant re#ards

: such as creating #or$ en"ironment to help people #or$ to the %est of their a%ilities+supporting and encouraging others+ helping others )nd meaning and ful)llment in#or$+ etc. ; and challenges :such as it3s hard #or$+ ma& more clerical than managerialties+ ha"e to deal #ith a "ariet& of personalities+ etc.; in %eing a manager.

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ni"ersal Need for Management ,

*

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1. hat is 9inance !

* 9inance ,can %e de)ned as the science and art of managing mone&.

* Managerial 9inance ,is concerned #ith the duties of the )nancialmanager #or$ing in a %usiness.

- The Key Financial decisions facing the nancial manager of anybusiness rm are :

!- Capital *udgeting ,ecisions :

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Corporate Organization ,

0. oal of the )rm

A. Maimize 8hareholder ealth,ecision 4ule 9or Managers : = Only ta;e actions that are e>pected to increase the

share price(?

YjGHGL ZGL j H

Y?@=GL / @QJGL E@FGHGL LEGL

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. Maimize Pro)t !

hich In!estment is "referred #

# )roft ma>imization may not lead to the highest possi6le share price or at leastthree reasons :

1. -iming is importantthe receipt of funds sooner rather than later is preferred.0. Pro)ts do not necessaril& result in cash o#s a"aila%le to stoc$holders.6. Pro)t maimization fails to account for ris$.

C. hat a%out 8ta$eholders !

# Sta;eholders :are groups such as emplo&ees+ customers+ suppliers+ creditors+o#ners+ and others #ho ha"e a direct economic lin$ to the )rm.

A )rm #ith a sa)ehol%er !oc'sconsciousl& a"oids actions that #ould pro"edetrimental to sta$eholders. -he goal is not to maimize sta$eholder #ell*%eing %ut topreser"e it.

8uch a "ie# is considered to %e sociall& responsi%le.

6. Managerial 9inance 9unction

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No# contrast the di2erences in performance under the accounting method : accrual%asis ; "ersus the )nancial "ie# : cash asis ; ,

$ Finance and accounting also di%er &ith res'ect to decision-ma(ing :

Accountants de"ote most of their attention to the collecion an% presenaion o!#nancial %aa.

9inancial Managers e"aluate the accounting statements+ de"elop additional data+and ma)e %ecisionson the %asis of their assessment of the associated returns andris$s.

4. o"ernance and Agenc& Corporate o"ernance ,# Corporate o&ernance :refers to the rules+ processes+ and la#s %& #hichcompanies are operated+ controlled+ and regulated.

nli$e indi"idual in"estors+ institutional in"estors often monitor and directl&inuence a )rm3s corporate go"ernance %& eerting pressure on management to

perform or communicating their concerns to the )rm3s %oard.- ' )rincipal-'gent 4elationship :is an arrangement in #hich an agent actson the %ehalf of a principal. 9or 5ample + 8hareholders of a compan& : principals ;elect management : agents ; to act on their %ehalf.

- 'gency )ro6lem :arise #hen managers place personal goals ahead of thegoals of shareholders.

- 'gency Costs :arise from agenc& pro%lems that are %orne %& shareholders andrepresent a loss of shareholder #ealth.

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