Chapter 1

MANAGEMENT
Assoc. Prof. Dr. Trinh Thuy Anh

FACULTY OF BUSINESS ADMINISTRATION
KHOA QUẢN TRỊ KINH DOANH
Objective of the course
How to How to How to apply

What is How to
become a achieve management
management? manage?
manager? performance? mind set?
2
Content Planning
Decisi
Team on
Controlling work maki Orrganizing
ng
Commu
nication
Leading
Managerial environment
Teaching – learing method and evaluation

Lecturing Team work
Problem based Group assignment 25%

Individual assignment 25%
Case study Final examination 50%
Discusion
Role playing
4
Text book & reading
SYLABUS
Chapter 1. INTRODUCTION OF
MANAGEMENT
6
Chapter 1. INTRODUCTION OF MANAGEMENT
1. What is 2. Managerial
management? approachs
3. Managerial 4. Theory of
tasks management
7
1. What is management?
Concept of management
Individuals
Activities
Right way Right objective
Efficiency Effectiveness
8
Some concepts of management

Taylor (1911)
• Know what do you want to do
• Work to be done in a best way and cheapest
Stephen Robbins:
Process to to a job effectively and by others
Gareth R. Jones and Jennifer M. George

Planning, organizing, leading, controlling the resource to achieve
objective effectively and efficiently
France: “Management = Forecast”

American: “Management = achieve objective by others”
Quantitative theory: “Management = Decision making” 9

Objective of management?
Effectiveness Efficiency
Effectiveness = Output Efficiency = Output
Objective Cost
Do the right thing Do the things right
Achieve Low cost,

objective high performance
Example KHOA QUẢN TRỊ KINH DOANH
10.000 man shoes, 13.000 female shoes, 10 days
Average productivity: 1000 shoes/day

Unit 1: Lack of labour >>> 11 days, purnish 20 Efficiency
Man shoes mil.
Profit: 150 mil.
1200 shoes/day
Unit 2: Hire more man >>> increase 40 mil. Effectiveness
Female shoes Profit: 130 mil.
Effectiveness & Efficiency
Input Output Efficiency

Efficiency = Output
remain
Increase Cost
reduce
remain
reduce
increase
Effectiveness
Effectiveness = Output 12
Objective
2. Managerial approachs
Operation
Managing work Managing people management
Increase productivity Develop relationship Soft ware, model, scientific

Improve performance between people, create management theory (game
positive environment theory, decision making
Process, organizing theory)
Managing principle Behavior theory: psychology,
sociology, organizational Decision making
Classic management theory behavior
13
Management: scientific or art?
Scientific: Art:
Using Apply theory
knowledge of into practice
many fields in flexible way
Management: professional career
14
3. Managerial tasks?
HENRY FAYOL (1916)
Planning Organizing Cordinating Regulating Checking
LUTHER GULICK và LYNDAL URWICH (POSDCORB)
Planning Organizing HR Regulating

Coordinatin Checkin Financ
g g e
HAROLD KOONTZ và CYRIL O’DONNELL (’60)
Planning Organizing Leading Checking
JAMES STONER và STEPHEN P.ROBBINS (‘80)
Planning Organizing HR Leading Checking

Planning
Controlling Organizing
Leading
Planning
3.
Strategy
2.
Schedul
ing/plan
1. Goal
setting
17
Organizing
Organizational Work Human

structure organizing resource
design management
18
Leading
Setting a vision
Performance,
Lead, support commitment
Motivation
19

Controlling
Observation
Objective
Evaluation Implementing achievement
Regulation
Selection Define Checking

of Analyze Sollution
objective criteria system
20
4. The evolution of management theories

Modern
theory Organizational environment theory
Management science theory Right

decision
Neoclassical
theory Behavior management theory
Productivity
Administrative management theory
Classical
theory
Scientific management theory
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21
Major classification of management approach
Classical Scientific Bureaucratic Administrative

approach management management management
Neo-classical Behavioral Human
approach approach relation
movement
Modern The systems Contingency Management
approach theory theory science

Scientific Management Theory
Classical theory
F. W. Taylor (1856-1915)
- Study relationship between people - work
- Reduce time = work optimizing
4 scientific management principle:

- Work design scientifically, standardization of work
process
- Planning, allocating task clearly
- Selection, coaching employee to achieve requirement
- Finance reward
23

Classical theory
Frank (1868-1924) & Lillian Gibreth (1878-1972):
-Study time and method to conduct a work
-Specilization of work
-Work organizing to get performance
-Study productivity – motivation relationship
Improving Motivating Increasing

environment labour productivity
24

Classical theory
Henry Laurence Gantt (1861-1919)
Work 5/2015 6/2015 7/2015 8/2015

Whole project
Underground
Building
Completion
Tree,
environment
Marketing, sale
25
Administrative Management Theory
Henry Fayol (1841-1925) Principle Productivity

14 management principle
1. Division of labor
2. Authority & responsibility 9. Initiative
3. Unity of command 10. Discipline
4. Line of authority 11. Remuneration of personnel
5. Centralization 12. Stability of tenure of personnel
6. Unity of director 13. Subbordination of
individual interest to the
7. Equity
common interest
8. Order 14. Team spirit
Administrative Management Theory

Max Weber (1864-1920)
5 principles of bureaucracy
1. Formal authority derives from one’s position inside the

organization
2. Individuals occupy positions because of their
performance
3. Each individual’s authority and responsibilities are
specified by the organization
4. Authority is exercised effectively when positions are
arranged hierachically
5. Rules of the organization are followed and control
individual behavior 27
Behavior Management Theory
Hugo Munsterberg (1863-1916)
Right person
(competency,
Productivity
knowledge,
psychology)
28
Mary Parker Follet (1868-1933)
Build organization as
a “community”
Managerment: art Deal with Decision

to control others conflict making
29

Elton Mayo (1880-1949)
Hawthorne research (1924 – 1930)
Facilities (lighting, Psychology effects

heating, job break, on productivity
physical arrangement)
effects on productivity
Climate, environment Team work effects

effect on productivity on productivity
30

Abraham Maslow (1908-1970)
Self actulization Self-fulfillment

Achieving one’s full potential, including needs
creative activities
Esteem needs
Prestige & feeling of accomplishment Psychological
Belongingness & love needs needs
Intimate relationships, friends
Safety needs
security, safety Basic
Psychology needs needs
food, water, warmth, rest
31

Neoclassical theory
McGregor (1906-1964)
Theory X believe employees: Theory Y believe employees:
- Attitude: dislike work, find it boring, - Attitude: need to work, take
avoid if they can interest in it, enjoy under right
- Direction: must be forced or bribed conditions
to make right effort Direction: directed themselves
- Responsibility: will rather be toward a target they accepted
directed than accepted responsibility, - Responsibility: seek & accept
which they can avoid responsibility, under right conditions
- Motivation: motivated mainly by - Motivation: motivated by the
money and fears about their job desire to realize their own potential
security (under right conditions)
- Creativity: little creativity, except - Creativity: creative are widely
when it comes to getting round rules distributed & grossly underused32

Neoclassical theory
William Ouchi (1943)
Theory Z:
increase employee loyalty
33

Neoclassical theory
Chris Argyris (1923-2013)

Interpersonal competence
Employee is Manager
Increase
mature, Diversifies tasks, builds
producti
positive relationship
vity
34
Management Science Theory
Characteristic
Decision Resource Math model
making optimization application
Aspect
Management Operation
science management
Information system Quality
management management

Quality Management Theory
Total quality Supply Operation Distribution

management
Edwards Deming
ISO certification
36

Objective Management Theory
The role of marketing
Objective management: serve customer,

supply good/services
Peter Organizational objectives >>> unit objective

Ferrdinand >>> individual objective
Drucker Delegating for subordinate, develop
subordinate
Performance focus
37
Organizational Environment Theory
• Open-systems view
– Closed system
Input Operation Output

management management management
Environment
Open-systems view
Open system
Input Operation Output

management management management
• Raw materials • Machinery • Good

• Money & capital • Computers • Service
• Human resource • Human skills
• Sales of outputs allow
organization to obtain
new supplies of inputs
39
Centralized
Organization authority,
Contingency theory in stable vertical
environment communication
s: flows, control
Determine the through strict
Characteristics design of an mechanism rules &
of the organizations structure procedures
environment structure and
Organization decentralized
control systems authority,
in changing
horizontal
environment communication
s: organic flows, cross-
structure departmental
cooperation
Integrated management
Science
Classical theory Behavior theory
. management
Planni Organi Leader Contr

HR
ng zing ship olling
.
Contingency management theory
Theory (Ouchi): employee P.F. Drucker: Objective

loyalty focus management
41
Focus point
1. What is management? What is different between effectiveness &
efficiency?
2. Modern management focus on work, people or operation?
Why?
3. What are the management functions?
4. What is the evolution of management theory?

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MANAGEMENT

Assoc. Prof. Dr. Trinh Thuy Anh

KHOA QUẢN TRỊ KINH DOANH

Objective of the course

How to How to How to apply

Teaching – learing method and evaluation

Problem based Group assignment 25%

Text book & reading

Chapter 1. INTRODUCTION OF MANAGEMENT

Some concepts of management

Gareth R. Jones and Jennifer M. George

France: “Management = Forecast”

KHOA QUẢN TRỊ KINH DOANH

Do the right thing Do the things right

Achieve Low cost,

Example KHOA QUẢN TRỊ KINH DOANH

10.000 man shoes, 13.000 female shoes, 10 days

Average productivity: 1000 shoes/day

Effectiveness & Efficiency

Input Output Efficiency

Increase productivity Develop relationship Soft ware, model, scientific

KHOA QUẢN TRỊ KINH DOANH

Management: scientific or art?

Management: professional career

Planning Organizing Cordinating Regulating Checking

LUTHER GULICK và LYNDAL URWICH (POSDCORB)

Planning Organizing HR Regulating

HAROLD KOONTZ và CYRIL O’DONNELL (’60)

Planning Organizing Leading Checking

JAMES STONER và STEPHEN P.ROBBINS (‘80)

Planning Organizing HR Leading Checking

Organizational Work Human

KHOA QUẢN TRỊ KINH DOANH

Selection Define Checking

4. The evolution of management theories

Management science theory Right

Classical Scientific Bureaucratic Administrative

KHOA QUẢN TRỊ KINH DOANH

4 scientific management principle:

KHOA QUẢN TRỊ KINH DOANH

Improving Motivating Increasing

KHOA QUẢN TRỊ KINH DOANH

Work 5/2015 6/2015 7/2015 8/2015

Administrative Management Theory

Henry Fayol (1841-1925) Principle Productivity

Administrative Management Theory

1. Formal authority derives from one’s position inside the

Behavior Management Theory

Hugo Munsterberg (1863-1916)

Behavior Management Theory

Mary Parker Follet (1868-1933)

Managerment: art Deal with Decision

Behavior Management Theory

Facilities (lighting, Psychology effects

Climate, environment Team work effects

Behavior Management Theory

Self actulization Self-fulfillment

Behavior Management Theory

Behavior Management Theory

Behavior Management Theory

Chris Argyris (1923-2013)

Management Science Theory

KHOA QUẢN TRỊ KINH DOANH