BUSINESS

INTRODUCTION
SESSION 6 : BUSINESS
MANAGEMENT
Outline
1. Definition of Management
2. Management Theory
3. Management system
4. Management Functions
5. Manager's Role
6. Management Authority
7. Management Skills
6a. Definition of Management
Management is often interpreted as the word to
manage, which means to organize.
The word "manage" raises some basic questions
when the management will be applied in daily
business activities.
6a. Definition of Management
What? 3. Methods
What is regulated? 4. Materials
In general, what is 5. Machines
regulated is : 6. Market
1. Men
2. Money Abbreviated 6M.
6a. Definition of Management
Why?
Why should it be regulated?
All of these elements must be arranged to make it
easier to achieve the stated company goals.
6a. Definition of Management
Who?
Who is the assistance?
People who work are generally called managers or
people who are assigned tasks and are authorized to
help with certain matters to achieve the company's
goals.
6a. Definition of Management
Where?
Where is the help?
The answer is where the manager is.
6a. Definition of Management
When?
When to help?
The manager will help 6M during their tenure or face
certain conditions requiring expertise in assisting and
finding solutions to existing problems.
6a. Definition of Management
How?
How is the assistant?
Supervision by combining knowledge of the
application of management and management
functions owned by managers.
6a. Definition of Management
Harold Koontz dan Cryil O’Donnel states:
Management attempts to achieve certain goals
through other people's activities, where managers
coordinate some activities, including planning,
organizing, planning, directing, and controlling.
6a. Definition of Management
Andrew F. Sikula states:
An activity of planning, organizing, controlling,
placing, directing, motivating, communicating, and
making decisions carried out by each organization to
coordinate the company's various resources so that a
product or service is produced efficiently.
6a. Definition of Management
Griffin states:
Management is planning, organizing, coordinating,
and controlling resources to achieve goals effectively
and efficiently.
6a. Definition of Management
Important thing :
1. Management is a combination of science and art
in managing a company.
2. As knowledge - the management mindset is
based on proven scientific methods.
3. As an art - to carry out various jobs to achieve
certain goals will be influenced by the manager's
experience, habits, or behavior.
6a. Definition of Management
Important thing :
1. Effective - directed at the results (output).
2. Efficient directed at input or cost.
6b. Management Theory
Why management is important for companies:
1. Many workloads are heavy and difficult to do alone, so a
division of tasks and responsibilities is needed so that the
work can be done properly.
2. The application of management in a professional manner
makes it easier for companies to achieve success.
3. Management can increase the potential use value of the
company.
6b. Management Theory
Why management is important for companies:
4. Good management applications can reduce the waste of
resources.
5. Professional management can better manage 6M.
6. Management can be used as a guide for thinking and acting.
7. Management can be applied to establish cooperation
between group members.
6b. Management Theory
Why management is important for companies:
8. Management can anticipate situations that are full of
competence in the future so that the company will not be
too problematic when this happens and happens to the
company.
9. Management can be used to design and select alternative
strategies that will be applied in the future.
6b. Management Theory
Frederick Winslow Taylor considered it important to distribute certain
jobs to the right employees, and vice versa, not to assign other jobs that
were not properly done by employees. The application of this theory has
succeeded in increasing the effectiveness of employee performance.
Gilberth developed a tool to detect every movement of his employees.
This tool succeeded in separating the movements that were important
and correlated with the execution of the task from the unnecessary
movements that often occurred during the execution of the task. This
discovery succeeded in increasing the efficiency of each employee's
duties.
6b. Management Theory
Elton Mayo identifies that the incentives given have a
smaller effect on employee performance than the
effect of workgroup pressure, group acceptance, and
a sense of security at work.
6c. Management system
Paternalistic Management
Subordinates always follow whatever the leadership
says. In the subordinates' eyes, the leader is the
kindest, smartest, and greatest person.
Advantages of Paternalistic Management
If the leadership remains on the right track, the work
will be completed properly and thoroughly.
6c. Management system
Weaknesses of Paternalistic Management
1. If the leadership is not right, then the company's condition will be
worse because the employees will also deviate.
2. The company organization's progress depends on the leader's
figure, while the leadership only does the employees.
3. The thinking and creativity of employees become dull because
they are too dependent on leadership.
4. Employees find it difficult to adapt to new leaders.
6c. Management system
Closed Management
Managers do not inform subordinates about the
latest conditions of the company, making decisions
without involving employees.
Advantages of Closed Management
The company's condition and confidentiality are more
secure, and decision-making takes place quickly
without subordinates' participation.
6c. Management system
Weakness Closed Management
1. The subordinates do not know whether the company is in good
condition or not.
2. Generates apathy of employees to problems facing the company.
3. Managers only face company problems and solutions.
4. Not preparing a cadre of replacement leaders for the future.
6c. Management system
Open Management
Many managers inform employees of the company;
managers carry out decision making by involving
employee participation by providing various
alternatives and suggestions.
6c. Management system
Advantages of Open Management
1. Subordinates also think about the problems faced by the company.
2. Subordinates know the direction the company is going to achieve, so they do
not hesitate to act in achieving the company's interests
3. Subordinates are more motivated to carry out tasks.
4. Regeneration can go well.
5. Subordinates compete to increase knowledge and skills so that there is
healthy competition.
6. Supporting the establishment of harmonious communication
7. There is a feeling of the same fate.
6c. Management system
Weaknesses of Open Management
1. The decision-making process takes a long time, and the costs are
quite high
2. Company secrets are not guaranteed.
3. Managers' skills are known to employees, so if the manager is less
competent, it will reduce his authority.
6c. Management system
Democratic management
This system is similar to open management, but decisions are generally
made jointly by each member based on multiple votes.
Pros of Democratic Management
1. Relatively better decisions because many people think and decide
2. The decisions made will be accounted for by the members.
3. The scope and direction of the decisions are generally known.
4. Authoritarian action can be avoided.
6c. Management system
Weaknesses of Democratic Management
1. Decision making is long and expensive
2. The minority who lost the vote was forced to agree to the
decision.
3. The argumentative minority can influence others.
4. Less honest leaders can direct the meeting to smooth personal
decisions.
6d. Management Functions
The management function is a series of activities carried out by
managers where one activity is part of other related activities.
Several experts disclose these management functions. George R.
Terry described the following management functions:
a) Planning,
b) Organizing,
c) Actuating and
d) Controlling.
6d. Management Functions
Henry Fayol argued that management functions consist of:
a) Planning
b) Organizing
c) Commanding
d) Coordinating
e) Controlling
6d. Management Functions
Meanwhile Harold Koontz and Cyril O'Donnel divide the
management functions as follows:
a) Planning (perencanaan)
b) Organizing (pengorganisasian)
c) Staffing (penempatan)
d) Directing (pengarahan) dan
e) Controlling (pengendalian)
6d. Management Functions
Planning
It is a function of preparation for the future. In general, this
planning function includes setting goals to be achieved,
formulating various policies to facilitate activities to achieve
these goals, and planning the supervision that needs to be
carried out.
6d. Management Functions
Many benefits can be obtained from the planning function. These benefits are
as follows:
a. Can determine policies, procedures, work implementation guidelines to be
effective in achieving goals
b. More enabling the efficient utilization of company resources
c. Avoid or minimize business risks that may arise in the future
d. Avoiding miss management and miss communication in business activities
e. Planning can be a description of the scope of a project as a whole
f. It can be used as a guide when the control function will be carried out.
6d. Management Functions
Organizing (pengorganisasian) It is a function to apply planning into real activities. In this
function, an appropriate organizational structure will be arranged, the arrangement of
duties, authorities, and responsibilities of each organization member.
Several main factors apply to the organizing function. These factors are:
a. Have the same goal
b. There is a unity of orders
c. Control range coverage
d. Delegation of authority
e. Effectiveness and efficiency factors
f. Business continuity
6d. Management Functions
Staffing (placement) selects and fills each staff according to
the quality and quantity of human resources needed. To get
the right staff, an organization must first formulate job
specifications, namely the minimum standards that a person
must have to occupy a position and work properly by their
duties and responsibilities.
6d. Management Functions
Directing (direction) is a function to ensure that all
organization members make maximum efforts to achieve
predetermined goals. Actuating (action) is a function that
shows all concrete actions taken by mobilizing all the
abilities possessed by each member of the organization to
achieve goals.
6d. Management Functions
Controlling (control) is a function that ensures real action is
carried out according to a plan to achieve predetermined
goals. The objectives of control are:
a. Guarantee the implementation of various activities of the
members of the organization by the prepared plans
b. Take corrective action when deviations from the plan are
found.
c. The goals that have been set can be achieved.
6d. Management Functions
Several parties can exercise control based on the actor; then controls can be classified
as follows:
Internal control
Control is carried out by the company's internal party, for example, by a superior to his
employees in connection with the implementation of duties, work procedures, or
those related to discipline.
External control
Controls are exercised by external parties in the company, either formally or informally.
Formal controls are exercised by an official agency or official, such as a financial audit
agency or a corruption eradication committee. Meanwhile, informal control is the
community's control or consumers, either directly or indirectly, to the company.
6e. Manager's Role
A manager is a person who performs management
functions. Manager roles can be grouped into 3 main roles,
namely:
a. Interpersonal roles
b. Informational role
c. The role of decision making
6f. Management Authority
Management authority is a right or power that is owned
to do something or prohibit doing something to another
party. There are several types of authority, namely:
a. Line authority
b. Staff authority
c. Functional authority
d. Authority of authority
6g. Management Skills
Every manager must have certain skills to carry out their
duties properly. Managers are appointed based on ownership
of capital, not because of the expertise that many have failed
in their leadership. The skills that each manager must have
can be grouped into 3 main skills, as follows:
a. Conceptual skill
b. Human skills
c. Technical skillsl