TRAN THI THU HUYEN_PLAN_47K01.1

DA NANG UNIVERSITY OF ECONOMICS FACULTY OF INTERNATIONAL BUSINESS ◆ MANAGEMENT TOPIC: SUMMARY OF MANAGEMENT NAME: TRAN THI THU HUYEN CLASS: 47K01.1 LECTURER: NGUYEN PHUC NGUYEN YEAR:2021 _Management_47k01.1_Nguyen Phuc Nguyen CHAPTER 1: OVERVIEW OF MANAGEMENTMANAGEMENT IN UNSTABLE ENVIRONMENT - Management: is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources - Organization: Social entity that is goal directed and deliberately structured - Organizational effectiveness: Providing a product or service that customers value - Organizational efficiency: Refers to the amount of resources used to achieve an organizational goal What managers do? 1- Set objectives (establish goals for the group and decide what must be done to achieve them) 2- Organize (divide work into manageable activities and select people to accomplish tasks) 3- Motivate and communicate ( create a teamwwork via decisions on pay,promotions and though communicaton) 4- Measure( set targets anf standards, appraise performance)) 5- Develop people(recognize the value of employees and develop this critical organizational asset) Management skills: + Conceptual skill: is the understanding-based ability to view an organization as a whole and the relationships between its parts.This skill is essential for managers, but especially important for senior management + Human skill: Human resource skills are the manager's ability to work with and through others effectively.This skill includes the ability to motivate, facilitate, coordinate, lead, communicate, and resolve conflicts + Technical skill: is the ability to be knowledgeable and proficient in performing specific tasks Management Levels: Senior Manager: - Duties: make strategic decisions, organize the implementation of the strategy to maintain and develop the organization _Management_47k01.1_Nguyen Phuc Nguyen -Position: President of the board, vice president of the board, board members, general manager, deputy general manager, director, deputy director Admins intermediate: -Duties: make tactical decisions, implement business plans and policies, coordinate activities, work to accomplish common goals Review and check the work progress of junior staff -Position: Head of Department, Deputy Manager, Chief Manager, Deputy Manager Junior-level administrators: - Duties: Make operational decisions to urge, guide and control employees in specific daily business activities, in order to achieve common goals -Position: production team leader, sales team leader, foreman, shift leader Manager roles: 1.Human relationship role: Organizations are strong when many people in that organization are working towards the organization's goals ➢ Representative role: Representing the company and the people under it in the organization ➢ Leadership role: Coordinating and checking the work of subordinate staff; Recruit, train, guide and motivate employees ➢ Associate Role: Relationship with others to complete the work assigned to their unit Information role: Information is an asset of an enterprise, so information management is also an important role of administrators ➢ The role of collecting and receiving information: The administrator is responsible for regularly analyzing the context around the organization to collect information that affects the operation of the organization ➢ Information Dissemination Role: Disseminate information necessary for their work to all concerned ➢ Informational role: On behalf of the organization to bring news to the outside with a specific purpose to benefit the business 3.Decisional role: ➢ Entrepreneurial role: This role is manifested when a manager seeks to improve an organization's operations, such as adopting a new technology or adapting an existing technique _Management_47k01.1_Nguyen Phuc Nguyen ➢ Disturbance resolution role: Responding to surprises that disrupt the normal operations of the organization in order to return the organization to stability soon ➢ Resource allocator role: Reasonable resource allocation helps to achieve high efficiency Resources include people, money, time, powers, equipment, or materials ➢ Negotiating role: On behalf of the organization to negotiate with other units as well as impossible Manager functions: • • • • Planning is defining organizational goals and outlining ways to achieve those goals Organizing is the process of establishing a structure of relationships that enables people to carry out a plan and satisfy the goals of the organization Leading includes activities that motivate people to the work necessary to accomplish organizational goals Controlling is the process by which an individual, group or organization continuously monitors performance and takes actions to correct deviations from objectives CHAPTER 2: THE EVOLUTION OF MANAGEMENT THINKING Classical Perspective :includes thress subfields Scientific management: Improve efficiency and labor productivity through scientific methods - According to Frederick Winslow Taylor, developing a scientific method to guide workers instead of letting them choose their own way of doing things, dividing responsibility, authority, and rights in a reasonable way between managers and followers - Henry Gantt introduced a system of work norms and a reward system for workers and administrators who met and exceeded targets Henry Gantt developed the Gantt chart to measure and plan work o Contributions: developing management skills through division and specialization of the labor process o Limitations: only applicable in stable environment _Management_47k01.1_Nguyen Phuc Nguyen Bureaucracy management:Max Weber, a German theorist, introduced the concepts.Manage organizations on impersonal, rational basis Organization depends on rules and records Management principles: Henri Fayol was a major contributor 14 general principles of management and principles are still used today: ✓ ✓ ✓ ✓ Unity of command Division of work Unity of direction Scalar chain Humanistic Perspectives: Mary Parker Follett and Chester Barnard ✓ ✓ ✓ ✓ The original initiators Human Relations Movement Human Resources Perspective Behavioral Sciences approach Quantitative Perspective: Also referred to as management science.Use of mathematics and statistics to aid management decision making CHAPTER 3: ORGANIZATION ENVIRONMENT The external organizational environment: includes all outside elements that affect the organization + Macro/general environment: affect organizations indirectly.Includes technological, international, legal/political, economic, natural, saciocultural +Micro/task environment: Sectors that conduct transactions with the organization Includes customers, labor market, competitors, suppliers Relationship between organization and environment: The environment creates uncertainly for managers – managers must respond and design adaptive organizations Environment uncertainty :managers not have sufficient information about environmental factors to understand and predict environmental needs and changes Adapting to the environment: ✓ Boundary-spanning roles ✓ Interorganizational partnerships _Management_47k01.1_Nguyen Phuc Nguyen ✓ Mergers ✓ Joint ventures The internal environment: Corporate culture is the set of key values, beliefs, understandings, and norms that members of an organization share:Symbols, Stories, Heroes, Slogans, Ceremonies Types of organizational culture: ✓ ✓ ✓ ✓ Adaptability culture Achievement culture Involvement culture Consistency culture Managing the high performance culture:Bottom-line strategies are successful in the short term.Successful companies balance culture and business performance CHAPTER 4:PLANING AND STRATEGY - Planning is Fundamental Overview of goal setting and planning: -A goal: is a desired future state that the organization attempts to realize -A plan: is a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions PLANING Levels of Goals and Plans: Mission statement strategic goals/ plans senior management Tactical goals/plans Openrational gooals/plans Planning process of the organization: Develop the plan Translate the plan Plan operatons Execute the plan Monitor and learn Goals setting in organizations: _Management_47k01.1_Nguyen Phuc Nguyen - Organizational Mission:the organization’s reason for existence Strategic goals :official goals, broad statements describing the organization’s future Strategic plans : define the action steps the company will take Goals should be aligned using a strategy map Operational planning Single and Standing Plans: - - Single-Use Plans:Achieve one-time goals Program: building new headquarters, converting paper files to digital Project: renovating the office, setting up a new company intranet Standing Plans: Ongoing plans Policy: Sexual harassment policies, Internet and social media policies Rule: No eating rule in areas of company where employees are visible to public Procedure: Procedures for issuing refunds, Procedures for handling employee grievances Benefits of plan: ✓ ✓ ✓ ✓ Goals Goals Goals Goals and and and and plans plans plans plans provide a source of motivation and commitment guide resource allocation are a guide to action set a standard of performance Limitations of plan: - Goals and plans can create a false sense of certainty Goals and plans may cause rigidity in a turbulent environment Goals and plans can get in the way of intuition and creativity Strategic Management: is a specific type of planning -Purpose of strategy: Explicit strategy and Competitive advantage -Levels of strategy: ❖ Corporate-level strategy ❖ Business- level strategy ❖ Funtional -level strategy _Management_47k01.1_Nguyen Phuc Nguyen -SWOT Analysis: Formulating strategy often begins with an audit of internal and external factors ➢ Internal: Strengths and Weaknesses ➢ External: Opportunities and Threats Formulating Company-level strategy Formulating Business-level strategy International Business Strategy: o o o o Export strategy Globalization strategy Multi-domestic strategy Transnational strategy CHAPTER 5: DECISION MAKING Types of decisions and problems - Decision making is the process of identifying opportunities >> made from available alternatives Decision is a choice Programmed and non programmed decisions Facing uncertainty and ambiguity Models of decision making Ideal and rational Model Administrative Model Political Model Decision making steps Recognition of Decision Requirement – Identify problem or opportunity Diagnosis and Analysis – Analyze underlying causal factors Develop Alternatives – Define feasible alternatives Selection of Desired Alternative – Alternative with most desirable outcome Implementation of Chosen Alternative – Use of managerial, administrative, and persuasive abilities to execute chosen alternative Evaluation and Feedback – Gather information about effectiveness _Management_47k01.1_Nguyen Phuc Nguyen Personl Decision Model: Directive style – People who prefer simple, clear-cut solutions to problems Analytic style – Managers prefer complex solutions based on a lot of data Conceptual style – Managers like a broad amount of information Behavioral style – Managers with a deep concern for others CHAPTER 6: ORGANIZING Organizing: is the process of establishing a structure of relationships that enables people to carry out a plan and satisfy the goals of the organization The deployment of organizational resources to achieve strategic goals: Division of labor Lines of authority Coordination Organizing structure defines: ✓ ✓ ✓ ✓ The set of formal tasks assigned to individuals and departments Formal reporting relationships The design of the systems to ensure effective coordination Organizing is important because it follows from strategy Organizing the Vertical Structure: ✓ Work Specialization: is the degree to which organizational tasks are subdivided into individual jobs; also called division of labor ✓ Chain of Command: is an unbroken line of authority that links all individuals in the organization and specifies who reports to whom ✓ Span of Management: + Tall structure have more levels and narrow span + Flat structure have a wide span and fewer levels ✓ Centralization and Decentralization: + Centralization – decision authority is located near the top of the organization + Decentralization – decision authority is pushed downward to all levels + Factors that influence centralization versus decentralization are: - Change and uncertainty are usually associated with decentralization - Strategic fit - Crisis requires centralization Designing elements in the organizational structure _Management_47k01.1_Nguyen Phuc Nguyen ✓ ✓ ✓ ✓ ✓ Vertical Functional structure Divisional Structure Matrix approach Team approach Virtual network approach Organizing for Horizontal Coordination ✓ Coordination Needs ✓ Task Forces, team and project management ✓ Relational Coordination Factors Shaping Structure ✓ Structure Follows Strategy: Business performance is influenced by structure ✓ Structure Fits the Technology: Knowledge, tools, techniques, and activities should match production activities CHAPTER 7: LEADING The Nature of Leadership: Leadership is the ability to influence people toward the attainment of goals Level Leadership: Highest level in a hierarchy of manager capabilities o o o o Lack of ego (humility) Fierce resolve to what is best for organization Shy and self-effacing Credit other people Leadership Traits: Traits – distinguishing personal characteristics of a leader - Effective leaders possess varied traits and combine these with their strengths Strengths – natural talents and abilities that have been supported and reinforced with learned knowledge and skills Behavioral approach: Defined two leadership behaviors: + Task-oriented behavior + People-oriented behavior Followership : Organization does not exist without followers Power and influence: _Management_47k01.1_Nguyen Phuc Nguyen +Position Power: ➢ Legitimate power ➢ Reward power ➢ Coercive power +Personal Power: ➢ Expert power ➢ Referent power +Other sources of power: ➢ Personal effort ➢ Network of relationships ➢ Information +Interpersonal Influence Tactics Six Interpersonal Influence Tactics for Leaders: Use rational persuasion Help people like you Rely on the rule of reciprocity Develop allies Be assertive – ask for what you want Make use of higher authority CHAPTER 8: MOTIVATIVE Motivation – the arousal of enthusiasm and persistence to pursue a course of action Content Perspectives on Motivation - The Hierarchy of Needs ERG Theory: Existence needs – the needs for physical well-being Relatedness needs – the needs for satisfactory relationships with others Growth needs – the needs that focus on the development of human potential and the desire for personal growth Process Perspectives on Motivation: - Goal-Setting Theory: Increase motivation and enhance performance by setting goals and providing timely feedback Key components of the theory: ➢ Goal specificity 10 _Management_47k01.1_Nguyen Phuc Nguyen ➢ ➢ ➢ - Goal difficulty Goal acceptance Feedback Equity theory: Focuses on how individuals feel about how they are treated compared to other people doing the same job Expectancy Theory: Motivation depends on individuals’ expectations about their ability to perform tasks and receive desired rewards Reinforcement Perspective on Motivation : o Direct Reinforcement o Social learning theory: Individual’s motivation can result from the person’s observations of other people’s behavior Job design for motivation o Job Enrichment o Job Characteristics Model CHAPTER 9: CONTROLLING Organizational control is the systematic process through which managers regulate organizational activities to make them consistent with expectations established in plans, targets, and standards of performance Purposes of Control: • Provides organizations with indications of how well they are performing in relation to their goals • Provides a mechanism for adjusting performance to keep organizations moving in the right direction Feedback control model Setting up performance standards: Identify performance standards, measurement criteria that can be compared with the organization's activities Measuring the actual performance: Measure results both qualitatively and quantitatively and prepare reports according to established standards Comparing performance with standards: Compare actual results with performance standards, spot the difference, determine the reason for deviation from the standard, subjective judgment and discussion with employees from objective data analysis results Carrying out correctives activities: Identify the necessary changes Financial Control 11 _Management_47k01.1_Nguyen Phuc Nguyen Financial Statements : Financial Statements provide basic information for financial control Financial analysis Financial ratios Types of budgets used by managers ❖ Expense budget: forecast and actual costs for each responsibility center and the entire organization ❖ Revenue budget: -The organization's expected and actual revenues Cash budget -Daily or weekly cash receipts and disbursements to ensure the organization has enough cash to pay off ❖ Capital Budget: - Investment planning for major assets such as factories, machinery and equipment, complex information technology systems -Long-term expenses (more than year) Budgeting from scratch: - Set a budget from the top - Set a budget from the bottom up Total quality management: Focuses on Teamwork, Collaboration,Identifying improvements TQM Techniques • • • • • Quality team: The group consists of 6-12 voluntary workers who meet regularly to discuss and resolve issues affecting quality in their workplace Benchmark / Benchmark / Calibration: Continuous improvement process by comparison with products/services and quality management practices of the strongest competitors or industry leaders The Six Sigma Principle: Six Sigma: allows to achieve 3.4 errors per million errors or the probability of occurrence of non-error events is 99.9997% Establish a quality partner: Traditional quality control has often kept QA departments separate from the parts they service, often costly error correction due to the product produced, the service provided Continuous improvement: Make a series of small improvements in all areas of the organization on an ongoing basis 12 ... develop this critical organizational asset) Management skills: + Conceptual skill: is the understanding-based ability to view an organization as a whole and the relationships between its parts.This... skill: Human resource skills are the manager's ability to work with and through others effectively.This skill includes the ability to motivate, facilitate, coordinate, lead, communicate, and resolve... outside with a specific purpose to benefit the business 3.Decisional role: ➢ Entrepreneurial role: This role is manifested when a manager seeks to improve an organization's operations, such as adopting