UNIVERSITY OF SOUTH EAST ASIA

Principle of Management
Competing in the New Era LECTURED BY LUNN PISIDTH, MTM, DBA Candidate

McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 01

MANAGING and MANAGER

LECTURED BY LUNN PISIDTH, MTM, DBA Candidate

McGraw-Hill/Irwin Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

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Defining Management
 Management
The process of working with people and resources to accomplish organizational goals effectively and efficiently

 Effectiveness
Achieving organizational goals

 Efficiency
Achieving goals with minimal waste of money, time, materials, and people
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The Functions of Management

Planning Organizing Leading Controlling Delivering strategic value Building a dynamic organization Mobilizing people Learning and changing
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Performing all Four Functions of Management

 A managers day is not neatly divided into the four functions  Successful managers handle all four functions simultaneously

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Management Levels and Skills

Top managers Middle managers FirstFirst-line managers

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Management Levels and Skills

Top-level managers Middle-level managers Frontline managers Senior executive responsible for the overall management of the organization Located in the middle layers of the organizational hierarchy reporting to top-level managers Supervise the operational activities of the organization; also called operational managers
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Relative Emphasis Placed on Function of Management at Each Level of Management

Differences Among Managers

The Three Levels of Management
Top managers CEO, president, or vice president Sales manager, branch manager, or department head Crew leader, supervisor, head nurse, or office manager Workers in the organization who are supervised by firstline managers. Middle managers First-line managers Nonmanagement operative employees

What Do Managers Do?

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Management Levels and Skills

 Working leaders with broad responsibilities
Todays trends are toward less hierarchy and more teamwork The best managers are working leaders

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Management Levels and Skills

 Working leaders tend to engage in 10 activities that fall into three categories or roles
Interpersonal roles Informational roles Decisional roles

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Definitions of Management Roles

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Skill Type Needed by Manager Level

Top Managers Middle Managers Line Managers Conceptual Human Technical
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Management Levels and Skills

Key Skill Technical skill Definition The ability to perform a specialized task involving a particular method or process The ability to identify and resolve problems for the benefit of the organization and its members People skills; the ability to lead, motivate, and communication effectively with others
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Conceptual and decisional skills Interpersonal and communication skills

Managing in the New Competitive Landscape

Globalization Technological Change

Knowledge Management

Collaboration across Boundaries

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Globalization
 Strong demand for  Strong demand for products/services talent  Internet access across the globe  Global marketplace

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Technological Change
 The Internets impact on globalization
Increased speed of communication The Internet as a marketplace

 Problems
Stress when employees/supervisors do not set limits on being connected Lengthening of the workday due to constant access
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Knowledge Management
 Growing need for good, new ideas generates demand for knowledge workers
Managers cannot simply measure output of knowledge workers Managers should provide knowledge workers with interesting work to increase motivation

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Collaboration across Boundaries

 People in different parts of the organization must collaborate with one another  Collaboration also entails moving beyond the boundaries of the organization itself

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Managing for Competitive Advantage

Key Concept Innovation Definition The introduction of new goods and services The excellence of your product Giving customers what they want or need, the way they want it
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Quality

Service

Managing for Competitive Advantage

Key Concept Speed Definition Fast and timely execution, response, and delivery of results

Cost competitiveness Keeping costs low to achieve profits and offer prices attractive to customers

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Innovation
 Managers must adapt to
Changes in consumer demand Changes in new competitors

 Alternative product/service delivery can be as innovative as new products/services themselves  Innovation is driven by globalization
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Quality
 Quality standards are increasing  Total quality management
Preventing defects before they occur Achieving zero defects in manufacturing Designing products for quality

 Goal: Continuous improvement in how the company operates

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Service
 Continually meet customer needs to establish mutually beneficial long-term relationships  Make it easy for customers to experience a service or buy and use products

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Speed
 Speed involves rapidly
Developing and getting products to market Responding to customer requests

 Speed combined with quality is a measure of whether a company is operating efficiently

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Cost Competitiveness
 Managing costs requires efficiency
Efficiency is accomplishing goals by using resources wisely and minimizing waste

 Understanding all product/service specific costs is essential to managing for cost competitiveness

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Managing for Competitive Advantage

Key Concept Delivering all five Definition Incorporating innovation, quality, service, speed, and cost competitiveness

Although managers must make some tradeoffs, managing for competitive advantage means successfully delivering a winning mix
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You and Your Career

 Emotional intelligence
Understanding yourself Managing yourself Dealing effectively with others

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Understanding Yourself
 Realizing your strengths and limitations

Managing Yourself
 Dealing with your emotions  Making good decisions  Seeking and using feedback  Exercising self-control self-

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Dealing Effectively with Others

 Listening  Showing empathy  Motivating  Leading  Other similar traits
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You and Your Career

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You and Your Career

Tips for Success Be both a specialist and a generalist Be self-reliant Be connected Actively manage your relationship with your organization Survive and thrive
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You and Your Career

 Social capital
Goodwill stemming from your social relationships

 Business decisions both inside and outside the organization involve networks of people  Social capital leverages your goodwill to make you and your organization more successful
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You and Your Career

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