FUNDAMENTALS OF BUSINESS MANAGEMENT

LECTURE 1: WHAT IS THE MANAGEMENT?

I. MANAGEMENT
1.1 Definition
- Allocate money, human, physical and informational.
- Good management is working through others to accomplish tasks that help
fulfill organizational objectives as efficiently as possible.
- Management are concerned with
- efficiency (nhanh nhất, tối ưu nhất): getting work done with a minimum of effort,
expense and waste.
- effectiveness (làm đúng): accomplish tasks that help fulfill organizational objectives.
1.2. Management Functions: 4 functions
- Planning
- Planning involves determining organizational goals and a means for achieving them.
- the heart of strategic.
- Meet the competition.
 Consider the threat from international competitors.
 Have a well-thought- out competitors.
 Be able to embrace change and foster new product and service ideas. ->
maintaining business.
 Structure their organizations to quickly adapt to changing customers and
competitors.
- Organizing
- is deciding where decisions will be made, who will do what jobs and tasks, and who will
work for whom.
- Organizing people, project, process
 consideration of people issues and work process.
- Create a group -> leader -> many people
- Do not waste time, energy, …
- Leading
- involves inspiring and motivating workers to work hard to achieve organizational goals.
- Working on people
 Motivating
 Inspiring
 Communicating
 Directing or guiding
  Teaching
- Controlling
- monitoring progress toward goal achievement and taking corrective action when
progress isn’t being made.
- The basic control process involves setting standards to achieve goals -> comparing
actual performance to those standards -> making changes to return performance to
those standards.
- Make sure everything run rights and smoothly
- Making things happen
 Determining what u want to accomplish
 Planning how to achieve the information
 Gathering and managing the information needed to make good decisions.
 Controlling performance.
Studies show that performing these management functions well leads to
better managerial performance.
II. Kind of managers: 4 kinds
II.1 Top managers: executives responsible for the overall direction of the
organization (CFO, CEO, COO, CIO)
- creating a context for change which includes forming a long-range vision or mission.
(3-5 years)
- develop employees’ commitment to and ownership of the company’s performance
-> responsible for creating employee buy-in.
- create a positive organizational culture through language + action. Top managers
impart company values, strategies, and lessons.
- monitoring the business environments. means that top managers must closely
monitor customer needs, competitors’ moves, and long-term business, economic,
and social trends
II.2 Middles managers: responsible for setting objectives consistent with top
management’s goals and for planning and implementing subunit
strategies for achieving these objective. (Plant managers, regional
manager or division manager)
- plan and allocate resources to meet objectives. (6-18 months)
- coordinate and link groups, departments, and divisions within a company
- monitor and manage the performance of the subunits and individual managers who
report to them (responsibility for maintaining quality standards in the company’s
consumer, medical device, and pharmaceutical segments)
- implementing the changes or strategies generated by top managers.
 II.3 First-Line Managers: managers responsible for setting objectives
consistent with top management’s goals and for planning and
implementing subunit strategies for achieving these objectives. (office
manager, shift supervisor, or department manager)
- managing the performance of entry-level employees who are directly responsible
for producing a company’s goods and services.
- managing the performance of non-managerial employees
- teaching and training entry-level employees how to do their jobs.
- include monitoring, teaching, and short-term planning (2weeks)
- detailed schedules and operating plans based on middle management’s
intermediate-range plans.
II.4 Team leader: Facilitating team activities toward goal accomplishment.
- facilitating team activities toward accomplishing a goal. are not responsible for team
performance. Help their team members plan and schedule work, learn -> solve
problems, and work effectively -> bring intellectual, emotional, and spiritual
resources to the team.
- Internal relationship -> fostering good relationships and addressing problematic
ones within their teams
- External relationship -> acting as the bridge or liaison between their teams and
other teams, departments, and divisions.
III. Managerial Roles
III.1 International roles
- Figurehead roles (đại diện, bù nhìn) -> perform ceremonial duties.
- Leader roles -> motivate + encourage workers to accomplish projects.
- Liaison role (liên kết) -> managers deal with people outside their units.
III.2 Information roles
- monitor role (quản lý) -> scan their environment for information.
- disseminator role (phổ biến) -> share the information collected with subordinates
and others in the company
- Spokesperson (phát ngôn) -> share information with people outside their
departments and companies.
III.3 Decisional roles
- entrepreneur role -> managers adapt themselves, their subordinates, and their units
to change.
- disturbance handler role (xử lý rắc rối) -> handle larger problems that demand
immediate action.
- Resources allocator role -> deciding resource recipients and amounts.
 - Negotiator role (đàm phán) -> bargaining with others about schedules, projects,
goals, outcomes, and resources.
IV. What does it take to be a manager?
IV.1 What companies look for in managers?
- Technical skills are the specialized procedures, techniques, and knowledge.
- Human skills -> as the ability to work well with others.
- Conceptual skills (nhận thức) -> ability to see the organization as whole. (forecast
the future -> top manages)
- Motivation to manage -> a desire to be in charge. An assessment of how enthusiastic
employees are about managing the work of others.
IV.2 Mistake managers make
- Insensitive to others: abrasive, intimidating, bullying style
- Cold, aloof, arrogant
- Betrayal of trust (phản bội niềm tin)
- Overly ambitious (tham lam): thinking of next job, playing politics
- Specific performance problems with the business
- Over managing: unable to delegate (ủy thác) or build a team
- Unable to staff effectively
- Unable to think strategically
- Unable to adapt to boss with different style
- Over dependent on advocate or mentor
IV.3 The transition to management.

Initial assumptions Reality

Exercise formal authority Cannot be bossy
Manage tasks not people Manage people not tasks
Help employee do their jobs Coach employee performance
Hire and fire Fast pace, heavy workload

IV.4 Competitive advantages through people

- Employment security -> Employees can innovate and increase company productivity
without fearing the loss of their jobs.
- Selective Hiring -> hire the most talented employees available.
- Self-Managed Teams and Decentralization -> Decentralization increases employee
satisfaction and commitment.
- High Wages Contingent on Organizational Performance -> to attract and retain
talented workers.
- Training and Skill Development -> a company whose competitive advantage is based
on its people must invest in the training and skill
- development of its people.
- Reduction of Status Differences -> much improved communication as employees
focus on problems and solutions rather than on how they are less valued than
managers.
- Sharing Information ->If employees are to make decisions that are good for the long-
run health and success of the company, they need to be given information about
costs, finances, productivity, development times, and strategies that was previously
known only by company managers.