Management chapter 1:

MANAGEMENT - The process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. FIVE MANAGERIAL FUNCTIONS OF MANAGEMENT: Planning, Organizing, Staffing, Directing, Leading & Controlling EXTERNAL ELEMENTS THAT AFFECTS ORGANIZATION Technological, Political, Ethical Factor MANAGERS - Are charged with the responsibility of taking actions that will enable individuals to make their best contributions to group objectives. FOUR SKILLS REQUIRED OF ADMINISTRATORS Technical, Human, Conceptual and Design Skills The aim of all managers should be to create a SURPLUS, by establishing an environment in which people can accomplish group goals with the least amount of time, money, materials and personal dissatisfaction. To be successful in the 21st century, companies must take advantage of the new information technology- esp. INTERNET and GLOBALIZATION PRODUCTIVITY - The output input ratio within a time period which due consideration for quality. EFFECTIVENESS - The achievement of objectives EFFICIENCY - The achievement of the ends, with at least amount of resources. MANAGING: SCIENCE or ART? Managing like all other practices, whether medicine, music composition, engineering, accountancy or even baseball. Is an ART. Managers can work better by using the organized knowledge about management. Its SCIENCE.

The Evolution of Management Thought Many different contributions of writers and practitioners have resulted in different approaches to management, and these make up a Management Theory Jungle FREDERICK W. TAYLOR Acknowledged as the father of scientific management. His primary concern was to raise productivity through greater efficiency in production and increased pay for workers, by applying the scientific method. His principles emphasize using science, creating group harmony and cooperation, achieving maximum output, and developing workers. HENRY L. GANTT Called for scientific selection of workers and harmonious cooperation between labor and management. Developed the GANTT CHART FRANK & LILIAN GILBRETH Frank is known primarily for his Time and Motion Study, Lilian an industrial psychologist, focused on the human aspect of work and the understanding of workers personalities and needs HENRI FAYOL Father of modern management theory . Divided industrial activities into six groups Technical, Commercial, Financial, Security, Accounting, and Managerial. Recognized the need for teaching management. Formulated 14 principles of management: Authority and Responsibility Unity of Command, Etc. HUGO MUNSTERBERG Application of psychology to industry and management WALTER DILL SCOTT Application of psychology to advertising, marketing and personnel MAX WEBER Theory of Bureaucracy

VILFREDO PARETO Referred to as the father of the social systems and approach to organization and management, 80/20 W. EDWARD DEMING Introduced quality control in Japan LAWRENCE PETER Observed that eventually people get promoted to a level where they are incompetent WILLIAM OUCHI Discussed selected Japanese managerial practices adapted in the U.S. environment THOMAS PETERS AND ROBERT WATERMAN Identified characteristic of companies they considered excellent

Input output model

INPUT- People, capital, managerial skills, technical knowledge and skills INPUTS AND CLAIMANTS- Employees wants higher pay, more benefits, and job security, Consumer demand safe and reliable products at reasonable price. Suppliers want assurance that their products will be bought. Stockholders want not only a high return on their investment but also security for their money. State expect the enterprise to comply with their laws. Output- Products, services, profits, satisfaction, integration of the goal of claimants to the enterprise. FUNCTIONS OF MANAGEMENT Planning- Selecting missions and objectives as well as the actions to achieve them, which requires decision making. Organizing- Establishing an intentional structure of role for people to fill in an organization. Staffing- Filling and keeping filled, the position in the organizational structure. Leading- Influencing people so that they will contribute to organizational and group goal. Controlling- Measuring and correcting individual and organizational performance to ensure that events conforms to plans. Characteristic of Excellent and Most Admired Companies Were oriented towards actions Learned about the needs of their customers Promoted managerial autonomy and entrepreneurship Achieved productivity by paying close attention to the needs of the people. Were driven by a company philosophy often based on the values of their leaders. Focused on the business they knew best. Has a simple organization structure with a lean staff. Were centralized as well as decentralized, depending on appropriateness.

Management chapter 2:
Every time managers plan they take into account the needs and desires of members of society outside the organization, as well as the needs for material and human resources, technology, and other requirements in the external environment. Operating in a Pluralistic Society Pluralistic Society- A society where many organized groups represents various interest. The Technological Environment Technology- The sum total of the knowledge we have of ways to do things. The Third Wave: The Knowledge Age The first wave economy was based on land and farm labor. The second wave centered on machines and large industries. The third wave economy is the knowledge age, which encompasses data, symbols, cultures, ideology, values and information. Being at the frontiers of the new technologies, society must rethink the way it structures itself and how it strikes a balance between freedom and restrictions ( how to manage or control the massive amount of information available on the internet) Cyberspace is a bioelectronic environment that exist wherever one can find telephone and coaxial cables, fiber optic lines or electromagnetic waves. It will require a rethinking of centralization versus decentralization. Organizational hierarchy vs. empowerment. The Ecological Environment Ecology- The relationship of the people and other living things with their environment. Social Responsibility and Social Responsiveness

Corporate Social Responsibility- The serious consideration of the impact of the companys actions on society. Social Responsiveness- The ability of a corporation to relate its operations and policies to the social environment in ways that are mutually beneficial to the company and to society Ethics in Managing- all persons whether in business, government, university or any other enterprise are concerned with ethics. Ethics- The discipline dealing with what is good and bad and with moral duty and obligations. Business ethics- is concerned with truth and justice. Ex. Ford Pinto
The Ford Pinto, one of the best-selling cars of the 1970s, had a defective gas tank with an unfortunate tendency to burst into flames in rear-end collisions. Instead of fixing the Pinto, Ford lobbied against federal regulation affecting fuel tank safety. As part of the lobbying effort, the company prepared a costbenefit analysis. According to Ford's engineers, it would cost $11* per car, or $137 million per year for the industry as a whole, to meet the rollover standard, while avoiding an estimated 180 deaths per year, along with an equal number of serious burn injuries and a few thousand wrecked cars. Ford's cost-benefit analysis valued those lives at a mere $200,000 apiece. That number was calculated by the National Highway and Traffic Safety Administration at the request of the auto industry, mainly on the basis of lost wages, plus medical and legal costs and a small amount for pain and suffering. At $200,000 per head, 180 deaths are "worth" $36 million, not nearly enough to "justify" a $137 million expenditure. As Ford saw it, spending an extra $11 per car to fix the gas tank just wasn't worth it. Despite Ford's lobbying, the gas-tank safety regulation was adopted. Ford responded by immediately, and inexpensively, making the 1977 Pinto safer. But the damage to the company's image had been done. The public realized that Ford had knowingly produced a dangerous car, leading to hundreds, perhaps thousands, of preventable deaths. Ford finally discontinued the model in 1980.

Utilitarian theory- Plans and actions should be evaluated by their consequences. Theory based on rights- All people have basic rights. Theory of Justice- Decisions makers must be guided by fairness and equity as well as impartiality. Code- A statement of policies, principles or rules that guide behavior.

Code of Ethics for Professional Teachers Article VIII: The Teachers and Learners Section 1. A teacher has a right and duty to determine the academic marks and the promotions of learners in the subject or grades he handles, provided that such determination shall be in accordance with generally accepted procedures of evaluation and measurement. In case of any complaint, teachers concerned shall immediately take appropriate actions, observing due process. Section 2. A teacher shall recognize that the interest and welfare of learners are of first and foremost concern, and shall deal justifiably and impartially with each of them. Section 3. Under no circumstance shall a teacher be prejudiced or discriminate against a learner. Section 4. A teacher shall not accept favors or gifts from learners, their parents or others in their behalf in exchange for requested concessions, especially if undeserved. Section 5. A teacher shall not accept, directly or indirectly, any remuneration from tutorials other what is authorized for such service. Section 6. A teacher shall base the evaluation of the learners work only in merit and quality of academic performance. Section 7. In a situation where mutual attraction and subsequent love develop between teacher and learner, the teacher shall exercise utmost professional discretion to avoid scandal, gossip and preferential treatment of the learner. Section 8. A teacher shall not inflict corporal punishment on offending learners nor make deductions from their scholastic ratings as a punishment for acts which are clearly not manifestation of poor scholarship. Section 9. A teacher shall ensure that conditions contribute to the maximum development of learners are adequate, and shall extend needed assistance in preventing or solving learners problems and difficulties. Reaction or Proaction- To live within an environment and be responsive to it does not mean that managers should merely react in the face of stress. Since no enterprise can be expected to react very quickly to unforseen developments through forecast.

Ex: An alert company does not wait until its product is obsolete and sales have fallen off before coming out with new or improved products. Factors that Raise Ethical Standards 1. Public disclosure and publicity 2. The increased concerned of a well informed public. Whistle Blowing- Making known to outside agencies unethical company practices. Differing Ethical Standards between Societies Ethical as well as legal, standards differ, particularly between nations and societies. Example: Certain nations permit privately owned companies to make monetary contributions to political parties, campaigns and candidates. Trust as the basis for Change Management Managers are bombarded with new concepts, and old ones often are disguised by new terminology- all designed for coping with managerial change demanded by global competition, customer expectations, and the need to respond quickly to environmental changes.

Management chapter 4:

A seven step model of planning practice

6. Implement changes in policies, programs, and procedures 7. Reflect, encourage public learning, make adjustments

1. Define the problem

2. Map Stakeholder Interests

5. Seek agreement on what needs to be done

3. Analyze Institutional Resistance and Pressures for Reform

4. Engage the stakeholders

In designing an environment for the effective performance of individuals working together in a group, a managers most essential task is to see that everyone understand the groups mission and objectives and the method for attaining them. If group effort is to be effective, people must know what they are expected to accomplish. This is the function of planning. It is the most basic of all managerial functions. PLANNING Essential of Planning and Managing by Objectives Planning- Selecting missions and objectives as well as the actions to achieve them. Which requires decision making, that is choosing a course of action from among alternatives.

Types of Plans Mission and Purposes Objectives or Goals Strategies

Policies Rules Programs Budgets

Mission or Purpose- The basic purpose or functions or tasks of an enterprise or agency or any part of it. Synergy- means that the whole is greater than its parts 1 + 1 = 3 Objectives or Goals- The end toward which activity is aimed. Strategy- The determination of the basic long-term objectives of an enterprise and then adoption of courses of actions and allocation of resources necessary to achieve these goals. Policies- General statements or understanding that guide or channel thinking in decision making. Procedures- Plans that establish a required method of handling future activities. Rules- spell out specific required actions or nonactions, allowing no discretions. Program- A complex of goals, policies, procedures, rules, task assignments, steps to be taken, resources to be employed and other elements necessary to carry out a given course of actions. Budget- A statement of expected result expressed in numerical terms STEPS IN PLANNING 1. Being aware of opportunities: the market our strenghts competition our weaknessess what customer wants 2. Setting objectives or goals Where we want to be and what we want to accomplish and when 3. Considering planning premises In what environment- internal or external- will our plans operate? 4. Identifying alternatives What are the most promising alternatives to accomplishing our objectives? 5. Comparing alternatives in light of goals Which alternatives will give us the best chance of meeting our goals at the lowest cost and high profit? MIN- MAX

6. Choosing an alternatives Selecting the course of action we will pursue 7. Formulating supporting plans Such as plans to: Buy equipment Hire and train workers Buy materials Develop new products 8. Quantifying plans by making budgets Developing such budgets as: Volume and price of sales Operating expenses necessary for plans Expenditures for capital equipment Premises - Assumptions about the environment in which the plan is to be carried out. Principles of Planning Premises - The more thoroughly individuals charged with planning understand and agree to utilize consistent planning premises, the more coordinated enterprise planning will be. Objectives - is verifiable when at the end of the period one can determine whether or not it has been achieved. Key Result Area - An area in which performance is essential for the success of the enterprise. Although there is no complete agreement on what the key result areas of business should be- and they may differ between enterprisePeter F. Drucker suggest the ff: Market standing, innovation, productivity, physical and financial resources, profitability, manager performance and development, workers performance and attitude and public responsibility. Two other KRA have become strategic importance: Service and Quality. How to Set Objectives Without clear objectives, managing is haphazard. No individual and no group can expect to perform effectively and efficiently unless there is a clear aim.

Quantitative and Qualitative Objectives To be measurable, objectives must be verifiable. This means one must be able to answer this question: At the end of the period how do I know if the objective has been accomplished? Non Verifiable Objectives: To make a reasonable profit To improve communications To improve productivity of the production Dept. To develop better managers To install a computer system Verifiable Objectives To achieve a return on investment of 12% at the end of the current fiscal year. To increase production output by 5% by December 31, 2010 without additional costs while maintaining the current quality level. Management by Objectives - A comprehensive managerial system that integrates many key managerial activities in a systematic manner and is consciously directed toward the effective and efficient achievement of organizational and individual objectives. Benefits of M.B.O . Improvements of managing through result oriented planning . Encouragement of commitment to personal and organizational goals . Development of effective controls that measures result and lead to corrective actions. Failures of M.B.O Failure to teach the philosophy of M.B.O. Managers must explain to subordinates what is, how it works, why it is being done, what part of it will play in appraising performance, how the participants can benefit. Failure to give guidelines to goal setter Managers must know what the corporate goals are and how their own activities fit in with them. Managers also need planning premises and a knowledge of major company policies. Difficulty of setting verifiable goals with the right degree of flexibility.

Participants in MBO programs report at times that the excessive concerns with economic results puts pressure on individual that may encourage questionable behavior. To reduce the probability of resorting to unethical means to achieve results, top management must agree to reasonable objectives, clearly state behavioral expectations and give high priority to ethical behaviors. Rewarding it as well as punishing unethical activities. Danger in the overuse of quantitative goals and the attempt to use numbers areas where they are not applicable. E.g. Favorable company image may be the key strength of an enterprise, yet stating this in quantitative terms is difficult.