1 Welcome to Principles of Management MGS 2030 Joe McGill W403E 908 737 4166 (O) 973 729 4392 (H)...

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Welcome to

Principles of Management

MGS 2030

Joe McGill

W403E

908 737 4166 (O)

973 729 4392 (H)

jmcgill@kean.edu

turbo.kean.edu/~jmcgill

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So ….what is management?

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5000 years in 5 minutes• B.C. 2500 Egyptian pyramids• B.C. 500 No Greek merchant-citizens • A.D. 400 Buy stocks for Rome • A.D. 600 African Trade• A.D. 1300 Arabic Trade• A.D. 1400 Europe - Usury prohibited• A.D. 1600 Europe - Mercantilism• ~ 1750 ...The industrial revolution!

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Ownership and management

• Industrial Revolution = Division of labor

• Private (not state) ownership and property rights grew

• Ownership and management separated through stock ownership - owners no longer manage the business

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Managers ...

• ... focus on achieving organizational objectives in a changing environment

• … coordinate people and resources in an efficient and effective manner

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management is an economic activity: ....management has failed if it fails to … supply goods and services desired by the consumer at a price the consumer is willing to pay. It has failed if it does not improve or at least maintain the wealth producing capacity of the economic resources entrusted to it. (Peter F. Drucker, The Practice of Management, 1954)

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management is a business discipline ...• a professional activity - like law and

medicine, entry requires a formal education

• taught and researched• scholarly body of literature identified as

"management".

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Define management

Compare/contrast effectiveness and efficiency.

Compare/contrast functions and roles

Objectives

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Four Realities of Managing Today

Must adapt to change1.Be fast

2.Work well in teams

3.Be flexible

4.Stay close to the customer

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Management Defined

• Management

– Working with and through others to achieve organizational objectives in a changing environment.

– Management is the effective and efficient use of limited resources.

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Working with and Through Others

• Management is a social process - managers get things done by working with and through others.

• Shortcomings of “derailed” managers– interpersonal problems– business objectives not met– Unable to build and lead a team– Unable to adapt when things change

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Achieve Organizational Objectives

• An objective is a target to be strived for and attained.

– Examples?

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Effectiveness vs. Efficiency

• Effectiveness– Promptly achieving

a stated organizational objective

– Examples?.

• Efficiency– Balancing the

amount of resources used to achieve an objective against what was actually accomplished.

– Examples?

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Making the Most of Limited Resources

• We live in a world of scarcity.

• There is a lopsided use of resources.

• Our planet is becoming increasingly crowded.

• Over 80% of the world’s population lives in poor and less-developed countries.

• Managers are responsible for the efficient and effective use of the basic factors of production–land, labor, and capital.

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Coping with a Changing Environment

• Five Major Sources of Change for Today’s Managers– Globalization– environmentalism– ethical reawakening– e-Business – The evolution of product quality

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Ethical/Legal Problems in the Workplace

• Lying to supervisors

• Lying on reports or falsifying records

• Stealing and theft

• Sexual harassment

• Abusing drugs or alcohol

• Conflict of interest

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The Evolution Of Product Quality

• The fix-it-in approach

• The inspect-it-in approach

• The build-it-in approach

• The design-it-in approach

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How to categorize what managers do?

• Managerial Functions (P O L C)

– Planning • decision making

– Organizing• Staffing/Obtain resources• Communicating

– Leading• motivating, proper culture

– Controlling

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Managerial Roles

• Interpersonal – Care for the culture– Care for the

individual (up, down, peers)

• Informational – S/R Vertical– S/R Horizontal

• Decisional – Create change– Monitor

performance– Negotiate for and

distribute resources

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Learning to Manage

• How Do I Learn to Manage?– Make a big mistake.– Get a difficult assignment.– Get stuck in an impasse or dilemma.– Suffer an injustice at work.– Lose out to someone else.– Be personally attacked.

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Entrepreneurship

• Entrepreneurship– The process by which individuals–either on their

own or inside organizations–pursue opportunities without regard to the resources they currently control.

• Entrepreneur’s Dilemma– Either grow with the company or have the courage

to step aside and turn control over to professional managers with the requisite administrative skills.

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Entrepreneurship

• Traits of Entrepreneurs– Focus is on envisioned futures.– Emphasize external/market dimensions.– Display a medium-to-high tolerance for ambiguity.– Exhibit moderate-to-high risk-taking behavior.– Obtain motivation from a need to achieve.– Possess technical knowledge and experience in the

innovative area.