Management

• Efficiency
Systems • Effectiveness
• Cost

14 principles of Henry
• Productivity Fayol
Funtions • Profitability
• Service
Goblalization

Process • Change
• Utilities • Advantage competitive
• Competitiveness • Oranization without borders
Products • Innovation
• Quality
• Earnings
 Concepts
 Management: Management (or managing) is the administration of an organization,
whether it be a business, a not-for-profit organization, or government body.
Management includes the activities of setting the strategy of an organization and
coordinating the efforts of its employees or volunteers to accomplish its objectives
through the application of available resources, such as financial, natural,
technological, and human resources. The term "management" may also refer to the
people who manage an organization.
 Efficiency is the (often measurable) ability to avoid wasting materials, energy,
efforts, money, and time in doing something or in producing a desired result. In a
more general sense, it is the ability to do things well, successfully, and without
waste.
 Effectiveness is the capability of producing a desired result. When something is
deemed effective, it means it has an intended or expected outcome, or produces a
deep, vivid impression
 Management system: Documented and tested step-by-step method aimed at smooth
functioning through standard practices. Used primarily in franchising industry, management
systems generally include detailed information on topics such as (1) organizing an enterprise,
(2) setting and implementing corporate policies, (3) establishing accounting, monitoring, and
quality control procedures, (4) choosing and training employees, (5) choosing suppliers and
getting best value from them, and (6) marketing and distribution.
 Globalization: The worldwide movement toward economic, financial, trade, and
communications integration.
 PRODUCT: A good, idea, method, information, object or service created as a result of a process
and serves a need or satisfies a want.
 CHANGE: To make something different.
 PROCESS MANAGEMENT: Administrative activities aimed at (1) defining a process, (2)
establishing responsibilities, (3) evaluating process performance, and (4) identifying
opportunities for improvement.
 Innovation management is the management of innovation processes. It refers both to product
and organizational innovation.
 Service management in the manufacturing context, is integrated into supply chain management
as the intersection between the actual sales and the customer point of view. The aim of high
performance service management is to optimize the service-intensive supply chains, which are
usually more complex than the typical finished-goods supply chain.
 Competitive advantage: involves communicating a greater perceived value to a target
market than its competitors can provide. This can be achieved through many avenues
including offering a better-quality product or service, lowering prices and increasing
marketing efforts. Sustainable competitive advantage refers to maintaining a favorable
position over the long term, which can help boost a company's image in the
marketplace, its valuation and its future earning potential
 Productivity: A measure of the efficiency of a person, machine, factory, system
 Profitability: the state or condition of yielding a financial profit or gain. It is often
measured by price to earnings ratio.
 Gain: an increase in profit, price, or value
 Cost: An amount that has to be paid or given up in order to get something
 Quality: is the excellence of your product. Quality can be measured in the terms of
product performance, customer, service, and reliability, conformance to standards,
durability and aesthetics
 Profits: are determined based on a percentage of the net income according to the
activity that the company.
 14 principles of Henry Fayol
 1. Division of work. Specialization allows the individual accumulates experience, and
continuously improve your skills; thereby, you can be more productive.
 2. Authority. The right to issue orders with which must be balanced the responsibility of their
function.
 3. Discipline. Employees must obey, but this topic has two faces: the employees obey, only
management do its part by providing a good lesson.
 4. Unity of command. Each worker should only have a boss without other lines of command in
conflict.
 5. Unity of direction. The people hired to the same kind of activities should have the same
goals in a single plan. This is essential to ensure the unity and coordination in the company.
The command unit does not exist without the unity of direction, but does not necessarily flow
from it.
 6. Subordination of individual interest (in the general interest). The Administration should
consider that the goals of the companies are always Supreme.
 7. Remuneration. The payment is an important motivator but when Fayol analyzes a number
of possibilities, points out that perfect system of remuneration there is no.
 8 Centralization (decentralization). This is a matter of degree depending on the condition of
the business and the quality of the staff.
 9. Scalar Chain (line of authority). A hierarchy is required for the direction unit. But lateral
communication is also essential, while superiors know that such communication is happening.
Step chain refers to the number of levels in the hierarchy from the highest authority to the
lowest of the organization. It should not be very wide or consist of too many levels.
 10 order. Employees in an organization must have the right resources at their disposal so that
they can function properly in an organization.
 11 Equity. Employees must be treated kindly and equally. Employees must be in the right place
in the organization to do things right.
 12. stability of the recruitment of staff. Employees work best if you have security in their
employment and career progress. An insecure contracts and a high rate of turnover in a manner
contrary to the organization.
 13 Initiative. Allowing staff to display their initiative in some way is a source of strength for the
organization. Even though it may imply a sacrifice of the personal on the part of many managers
vanity.
 14. Esprit de Corps. The Administration must promote moral motivation of its employees. Fayol
goes even further: "the necessary a real talent to coordinate efforts, cause the enthusiasm,
using the capabilities of each person, and reward each one according to their merits, without
awakening any jealousy and disturb relations