PRINCIPLES OF MANAGEMENTTHOMSON SOUTH-WESTERN

Prof. Marianne A. Gallardo, MBA, LIC LET

Managing in the 21st CenturyCan be found with lots of amazing things USA economy was booming and dot-com companies appeared ready to take over the brick- and- mortar companies. New economy comes in the scene, ways of running a business did not apply anymore and was replaced by dot-bombs.

Managing in the 21st CenturyEven worsen by 9/11 2001 terrorist attacks hence making many changes in the economy & in society. busiManagerial Basic economics still ness principles applies Organization still need products and services to Customers & payto allow company to prosper

Important Factors that continue to changeInternet Information Technology Increasing Globalization Increasing Diversity Intellectual Capital Increased Emphasis on Ethics

Activities: Form a small group and discuss the given field and report to the class the outcome.

Explain why it is important to study management? Angle of: (1)home maker or housewife, (2)small-scale business entrepreneur, (3)factory worker/laborer, (4)church leader or worker, (5) career man/woman- public servant, private, CS..

Application: Individual BasisARE YOU READY TO LEAD THE 21ST CENTURY? Choose a scale that best suit your individual preferences. Almost Never 1 Irregularly 2 Occasionally 3 Sometimes 4 Usually 5 Frequently 6 Almost Always 7

Questions1.

2. 3.

4.

I thrive in uncertain situations where the outcome is unknown. I provide guidance to others. I am willing to make mistakes when learning a new process. I see change as an opportunity, not a threat.

Continuation of Questions1.

2.

3.

I challenge others to consistently do a better job. I seek new ways to do things better and faster. I motivate others to reach their highest potential.

Implication for LeadersAll organizations need to be managed. Purpose is to achieve the overall goals. Management must employ theories, concepts, principles and tools that are part of planning. Then everything else will run smoothly-directing, coordinating, staffing, controlling.

Meeting The ChallengeCarlos Ghosn, Star of Nissan and the Auto Industry By 2003 Carlos enjoyed the status of a celebrity. He is swamped by people seeking his autograph when he tours Nissan manufacturing plants. He is adored in Japan for saving Nissan and is featured in manga is comic books. He is

Continuation of Meeting the ChallengeHe is the star at auto shows in Paris, NY, & Beijing, where he gets along fine, speaking 5 different languages. Some people in Lebanon suggested that he run for the presidency of that country because he is a Lebanese citizen. Immediately upon arriving at Nissan in 1999, Ghosn established the revival plan

2nd Continuation of Meeting the ChallengeThis included setting up cross-functional teams that studied essentially everything about Nissan and its markets. Nothing was sacred. The markets were studied. Vehicles were designed , including a goal of 28 new vehicles by 2004. Goals also included cutting costs in purchasing and manufacturing. The sales organization

3rd Continuation of Meeting the ChallengeWas redesigned to focus on getting cars that people wanted to market. The goals and actions that Ghosn led also included some very sensitive issues. In a country where keiretsu (interrelationships between companies, including crossownerships, much like the interlocking directorates in the USA is very important

4th Continuation of Meeting the ChallengeAnd group reward is common. Ghosn broke up Nissans keiretsu to free cash and to get rid of poor suppliers and implemented a reward system based at least partly on individual performance. And people were definitely held accountable for performance. Nissan made a profit by 2001, achieving

5th Continuation of Meeting the ChallengeIts overall goals a year early! By2004 Nissan was one of the most profitable car companies in the world and had retaken the number 2 spot in market share in Japan back from Honda. In 2005 Ghosn became the CEO of Renault, while continuing as CEO of Nissan. Carlos Ghosn clearly applied the basic

6th Continuation of Meeting the ChallengeFunctions of management and added many of the details. In addition, he succeeded as a manager and leader by using his deep knowledge and appreciation for the different cultures of the countries in which he lived and worked to introduce changes in Japan that were unusual.

DYNAMIC ON CRITICAL THINKINGA 20 points activity: Rubrics are the preparedness of the group members to carry out the theories, clear voice & teamwork Debate the Issue (Left side Pros, right side Cons) Is Management Universal?

Experiential ExerciseAnswer must be Yes or No 1. Is your company doing well? Is it posting good financial results, drumming up new business, hiring & promoting others? 2. Do you get choice assignments? Are you put on projects that showcase your talents? Are your encouraged to learn

Experiential Exercise 2nd pageNew things & increase your skills? 1. Have you stopped learning? Are you getting stale? Do you no longer get the chance to increase your skills & broaden your experience? 2. Has your status slipped? Are exchanges with your boss becoming increasingly one sided? Do you feel as if you have

Experiential Exercise 3rd pageLess freedom to act than in the past?1.

Are big changes on the horizon? Has your company merged with another recently? Is any kind of major organizational restructuring undergoing/underway? Have new highlevel executives come in from the outside?

Evolution of ManagementI.

As agricultural societies were transformed into industrial societies as a result of the Industrial Revolution, managerial thinking was shaped by a variety of:

Evolution of ManagementII. 5 Major perspectives of Mgt Thought have evolved: A.Classical B.Behavioral C.Quantitative D.Systems and E.Contingency

Evolution of ManagementThe Classical perspective developed in the later part of the 19th c and the 1st part of the 20th c. The Behavioral evolve in the 1st 3rd of the 20th c. Development of the Quantitative systems perspective began to in 1950s. The Contingency is the most recent having begun in the 1960s.

Classical PerspectiveScientific management, administrative management and bureaucratic management subfields, each of which has a different focus. This focuses on the improvement of individual worker productivity. Time-and-motion studies observe & measure a workers physical movements

Scientific Management PerspectiveIn order to determine the best way of performing task. The expectation is that managers will develop (1)standard methods for performing each job, (2)select workers with appropriate abilities for each job, (3)train workers in standard methods, and (4) support workers by planning their work.|

Scientific Management Perspectivepage 2Financial incentives are the major motivating factor that will induce workers to produce more. Administrative Management focuses on the managerial process & the functions of managerial functions.

Fayol identified planning, organizing, leading, coordinating, and controlling the basic function of mgt.Bureaucratic mgt has its primary focus theOverall structure of the organization Subfield emphasizes the division of labor into specialized task A hierarchy of authority in which power and authority increases at higher levels A comprehensive set of rules & procedures for performing duties,

Behavioral Perspective of ManagementMary Parker Follett emphasized the importance of coordination & harmony in group efforts. Elton Mayo recognized the human element play a significant role in worker behavior and output. Douglas McGregor Theory of X & Y employees attitudes & behavior.

Behavioral Perspective of Management- 2nd pageChester Bernard focus on functions of executive. Responsible both for establishing & maintaining a communications system and for formulating purposes & objectives of the organization & motivating employees toward attaining objectives. Theory of authority-accept or reject emplyee-supr

Quantitative Perspective ManagementDecision-making focus in an alternative course of action/solution to some problem. It requires some measurable criteria to access the impact of each alternative compare to prior selection. Computers are helpful in problem-solving process.

System PerspectiveSet of inputs & subjects to some transformation process, generating some type of output. Basic structure remains the same. Feedback loops constantly filter information about the status & performance of the system.

Contingency Perspective MgtSuggests that there is no one best approach to mgt. It is a situational approach because the proper managerial style depends on the key variables, or contingencies, within the given situation.

In the future, cultural, racial & gender diversityWill have a huge influence on management thinking. will have an Quality Globalization Enormous impact on managedHow business & industry

are

Enhancing Communication SkillsQ1. In your own life experiences, you probably have had occasion to use aspects of scientific mgt approach. Prepare for the class a short presentation of 5 members which you describe that task & the results of your analysis.

2. Based on your personal observations of well-knownAuthority figures, identify at least 2 authority figures, identify at least 2 (traditional, charismatic, rational-legal). Write a short essay describing these authority in a sheet of yellow pad and why you classified each of them.

Team BuildingTry to recall an authority that you have had with a bureaucratic organization. Think about both the positive & negative aspects of that experience. To refine your teamwork skills, meet with a small group of students who have the same zodiac sign. Compare & discuss your experiences & represented the most rigid & unwavering bureaucratic response. Choose a spokesperson to shout bring it out to the class.

Ethics: Take a StandCurrent Events from journal, magazine, broadsheet or leading dailies, cable network.Global/Domestic. By pair boys & girl or same gender (students choice) Discuss the ethical issues & dilemmas. Determine the remedies or solutions.