Professional Documents
Culture Documents
Business Management
5th YEAR 1sd SEMISTER
CHAPTER ONE
Introduction to Principles
of Management
Brain storm Questions
• What are the Function and Roles of Manager?
efficiency.
Elements of definition
2. Middle Level:
o Middle level management develops departmental goals, executes the
policies, plans and strategies decisions determined by top management,
develops medium- term plans and supervises and coordinate lower-level
managers’ activities.
Conceptual skills:
situations.
o In short it is:
o In short it is:
Or in short:
and/or both.
In short it is:
Leadership skills
o The abilities to influence other people to achieve the common goal.
Organizational environment of Management
o Organizing is the process of allocating and arranging work, authority
and resources to the members of the organization so that they can
successfully execute the plans.
Objectives:
1. Developing the organizational structure
▪ Bureaucratic Structures
- Pre-bureaucratic
- Bureaucratic (Strict Hierarchy)
- Post-bureaucratic (Involves Total Quality, Culture and Matrix
Management)
o Functional Structure: Grouped based on functional areas, such as
product.
stockholders.
▪ Social Obligation
o The obligation of a business to meet its economic and legal responsibilities
and nothing more.
▪ Social Responsiveness
o When a firm engages in social actions in response to some popular social
need.
▪ Social Responsibility
▪ A general conclusion is that a firm’s social actions do not harm its long-
term performance.
Values-Based Management
▪ Values-Based Management
o An approach to managing in which managers establish and uphold an
organization’s shared values.
▪ The Purposes of Shared Values
o Guiding managerial decisions
sequentially.
▪ Personality Variables
> Ego strength
* A personality measure of the strength of a person’s convictions
> Locus of Control
❖ A personality attribute that measures the degree to which people
believe they control their own life.
• Internal locus: the belief that you control your destiny.
• External locus: the belief that what happens to you is due to luck or
chance.
Other Variables
▪ Structural Variables
o Organizational characteristics and mechanisms that guide
and influence individual ethics:
• Performance appraisal systems
▪ An Organization’s Culture
▪ Intensity of the Ethical Issue
Ethics in an International Context
▪ Ethical standards are not universal.
3. Lead by example.
▪ Helps employees become more confident that they will have the
stances.
Effective Use of a Code of Ethics
▪ Develop a code of ethics as a guide in handling ethical dilemmas in
decision making.
▪ Publicly reprimand and consistently discipline those who break the code.
Ethical Leadership
▪ Managers must provide a good role model by:
o Being always ethical and honest.
o Telling the truth; don’t hide or manipulate information.
o Admitting failure and not trying to cover it up.
o Communicating shared ethical values to employees through symbols,
stories, and slogans.
o Rewarding employees who behave ethically and punish those who do
not.
o Protecting employees (whistleblowers) who bring to light unethical
behaviors or raise ethical issues.
DECISION MAKING IN MANAGEMENT
▪ Decision making: the process by which managers respond to
▪ Unfortunately, mangers often do not have all (or even most) required
information.
The Classical Model
The Administrative Model
▪ Administrative Model of decision making: Challenges the classical
assumptions that managers have and process all the information.
▪ As a result, decision making is risky.
o Bounded rationality: There is many alternatives and information is
vast so that managers cannot consider it all.
5. Cultural Barriers
• can lead to misunderstandings; may directly influence
decision making
6. Physiological factors
7. Psychological factors
• Ego, emotions, patience, procrastination, biases
▪ SWOT analysis
SWOT
Establishing objectives
▪ First and real starting point of planning.
▪ This is the logical step to evaluate each alternative from its plus and
minus points.
technology etc.
Formulation of Supportive plan
▪ It is essential to formulate action of supportive plan for each step of
work and to all departments of the organization.
2. Innovation
3. Human organization
4. Financial resources
5. Physical resources
6. Productivity
7. Social responsibility
8. Profit requirements
MBO Advantages & Disadvantages
Advantages
• MBO programs continually emphasize what should be done in an
goals.
Disadvantages