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Introduction of Business Management

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Introduction of Business Management

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© © All Rights Reserved
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LESSON 1

INTRODUCTION TO MANAGEMENT

Prepared by: GENUINO, Rhadz Majal

Management performs a very vital role in any organization. Family, community,


business enterprise, government, and nonprofit institutions. It is management that is
responsible for planning and organizing the various productive resources for the
creation of goods and services. Resources like money, machines, and materials can
only be useful if they are properly managed. In fact, many governmental
organizations are inefficient due to mismanagement.

THE EVOLUTION OF MANAGEMENT

- Can be summarized into several distinct phases, each marked by key


developments and changes in management theory and practice. Here's a
concise summary of the evolution of management:

1. Classical Management Theories (Late 19th to Early 20th Century)

● Scientific Management - Pioneered by Frederick Taylor, it


focused on optimizing efficiency through scientific analysis of
work processes and worker training.

● Administrative Management - Introduced by Henri Fayol, it


emphasized principles of management, including planning,
organizing, coordinating, commanding, and controlling.

2. Behavioral Management Theories (Early to Mid-20th Century)

● Hawthorne Studies - Conducted at the Western Electric


Hawthorne Works, these studies highlighted the social and
psychological aspects of work, leading to the understanding
of the Hawthorne Effect.

● Human Relations Movement - Led by Elton Mayo and others,


this movement emphasized the importance of employee
satisfaction, motivation, and social interactions in the
workplace.

3. Management Science and Quantitative Approaches (Mid-20th


Century)

● Operations Research - Applied mathematical and statistical


techniques to solve complex management problems,
particularly in logistics and decision-making.
● Management Information Systems (MIS) Introduced
computer-based systems to aid in data processing and
decision support.

4. Contingency and Systems Theories (Mid-20th Century)

● Contingency Theory - Suggested that there's no one-size-


fits-all approach to management; it depends on the situation
or context.

● Systems Theory - Viewed organizations as complex systems


with interrelated parts, emphasizing the importance of
understanding the whole.

5. Total Quality Management (TQM) and Continuous Improvement


(Late 20th Century)

● TQM - Focused on improving product and service quality


through employee involvement, customer focus, and
continuous improvement.

● Lean Management - Emphasized eliminating waste and


optimizing processes for efficiency.

6. Contemporary Management Approaches (Late 20th Century to


Present)

● Strategic Management - Focused on long-term planning,


competitive advantage, and aligning organizational goals
with external opportunities and threats.

● Organizational Behavior - Explored how individual and group


behavior impacts organizational performance.

● Project Management - Developed techniques and tools for


managing temporary projects efficiently.

7. Sustainable and Ethical Management (21st Century)

● Emphasizes corporate social responsibility, environmental


sustainability, and ethical decision-making in management
practices.

● Addresses global challenges like climate change, social


justice, and ethical governance.

8. Digital Transformation and Technology Integration (21st Century)


● Embraces digital technologies, data analytics, and
automation to streamline operations and gain competitive
advantages.

● Focuses on adapting to the rapidly changing technological


landscape.

9. Remote and Hybrid Work Management (Post-2020)

● Driven by the COVID-19 pandemic, this era saw a


widespread shift to remote and hybrid work models,
necessitating new management approaches to maintain
productivity and employee well-being.

In summary, the evolution of management reflects a journey from efficiency and


scientific analysis to a more holistic and dynamic approach that considers not only
the technical aspects of management but also the social, behavioral, and ethical
dimensions of organizations. This evolution continues to adapt to the changing
needs and challenges of the modern business environment.

THE IMPORTANCE OF MANAGEMENT

- Organizations cannot be overstated. Management plays a pivotal role in


ensuring the efficient and effective functioning of an organization. Here are
some key points highlighting its significance:

● Goal Achievement - Management helps define and set


organizational goals, creating a clear sense of direction. It ensures
that these objectives are communicated to all employees and that
efforts are aligned to achieve them.

● Resource Allocation - Effective management involves allocating


resources such as finances, human capital, and materials optimally
to maximize productivity and minimize waste.

● Decision Making - Managers make crucial decisions that impact the


organization's success. They analyze information, consider
alternatives, and choose the best course of action.

● Leadership - Managers provide leadership and guidance to


employees, motivating them to perform at their best. Strong
leadership fosters a positive organizational culture.

● Efficiency and Productivity - Management processes and


techniques help streamline operations, reduce inefficiencies, and
enhance productivity, ultimately leading to cost savings and
improved competitiveness.
● Problem Solving - Managers are responsible for identifying and
addressing problems or challenges that may arise within the
organization. They implement solutions and monitor progress.

● Adaptability - In a rapidly changing business environment, effective


management helps organizations adapt to new trends,
technologies, and market conditions.

● Accountability - Management establishes accountability structures,


ensuring that employees are responsible for their actions and
results. This promotes a sense of ownership and responsibility.

● Communication - Effective management facilitates open and clear


communication both within the organization and with external
stakeholders, promoting transparency and understanding.

● Long-Term Sustainability - Management is essential for strategic


planning and ensuring an organization's long-term sustainability and
growth.

In summary, management is the backbone of any organization, providing direction,


leadership, and the coordination of resources to achieve its goals and objectives. It is
a fundamental element in achieving success, ensuring efficiency, and maintaining
competitiveness in today's dynamic business world.

THE FUNCTION OF MANAGEMENT

- These are the frameworks used by organizations to achieve their goals


and objectives effectively and efficiently. These functions are typically
divided into four key areas:

● Planning - This function involves setting goals, determining


strategies, and outlining the steps needed to achieve them. It
encompasses both short-term and long-term planning and requires
assessing the organization's current state and future opportunities
and challenges. Planning helps in providing direction and clarity for
the organization.

● Organizing - Organizing is about arranging resources, such as


people, materials, and equipment, in a way that supports the
achievement of the planned goals. This involves creating
organizational structures, defining roles and responsibilities, and
establishing communication channels. Proper organization ensures
that tasks are carried out in a coordinated manner.
● Leading (or directing) - Leading involves guiding and motivating
employees to work towards the organization's goals. Effective
leadership includes communicating the vision, providing guidance
and support, making decisions, and resolving conflicts. It's about
inspiring and influencing others to perform at their best.

● Controlling - Controlling is the process of monitoring and evaluating


the organization's performance to ensure that it aligns with the
established plans. This involves setting performance standards,
measuring actual performance, comparing it to the standards, and
taking corrective actions if necessary. Control helps in ensuring that
the organization stays on track and makes necessary adjustments
to achieve its objectives.

These four functions are interrelated and interdependent, and they are crucial for the
overall success of any organization. Effective management involves a continuous
cycle of planning, organizing, leading, and controlling to adapt to changing
circumstances and achieve desired outcomes.

THE ROLE OF A MANAGER

- Is essential in any organization, as they play a pivotal role in achieving the


company's goals and objectives. Managers are responsible for planning,
organizing, leading, and controlling various aspects of the organization.
Here is a summary of the key responsibilities and functions of a manager:

● Planning - Managers are involved in setting organizational goals,


developing strategies to achieve them, and creating detailed plans
to guide their teams. This involves considering long-term objectives
and short-term tactics.

● Organizing - Managers are responsible for structuring the


organization, which includes defining roles, responsibilities, and
reporting relationships. They ensure that resources, such as
personnel, budget, and materials, are allocated effectively.

● Leading - Managers provide leadership to their teams, motivating


and guiding employees to work towards common goals. Effective
communication, delegation, and coaching are crucial aspects of this
role.

● Controlling - Managers monitor and evaluate the performance of


their teams and departments to ensure they are on track to meet
their objectives. If necessary, they make adjustments to correct
deviations from the plan.

● Decision-Making - Managers make critical decisions that impact the


organization's success. They analyze data, weigh options, and
choose the best course of action based on the organization's goals
and values.

● Problem-Solving - Managers are often tasked with resolving


complex issues and challenges that arise within the organization.
They must use their problem-solving skills to find innovative
solutions.

● Interpersonal Skills - Managers interact with employees, peers, and


superiors regularly. They must possess strong interpersonal skills to
build relationships, resolve conflicts, and foster a positive work
environment.

● Time Management - Effective time management is crucial for


managers, as they often have multiple tasks and responsibilities to
juggle. Prioritizing and delegating tasks efficiently is key.

● Adaptability - Managers must be adaptable in a constantly changing


business environment. They should be open to new ideas,
technologies, and strategies to keep the organization competitive.

● Ethical Leadership - Managers should lead by example and uphold


ethical standards within the organization. Demonstrating integrity
and fairness is essential for gaining the trust and respect of
employees.

● Communication - Clear and effective communication is vital for


managers to convey expectations, provide feedback, and ensure
that everyone is aligned with the organization's goals.

In summary, the role of a manager encompasses a wide range of responsibilities


aimed at achieving the organization's objectives, ensuring efficient operations, and
nurturing a positive work environment. Effective managers are essential for an
organization's success and growth.

THE SUBSIDIARY ROLES OF A MANAGER

- Managers play various subsidiary roles within an organization to effectively


fulfill their primary responsibilities. These subsidiary roles may vary depending
on the level of management (e.g., top-level, middle-level, or front-line
managers) and the specific needs of the organization. Here are some
common subsidiary roles of managers:
1. Leader: Managers often serve as leaders within their teams or
departments. They provide guidance, direction, and motivation to their
subordinates, fostering a positive work environment.
2. Mentor and Coach: Managers may mentor and coach their employees
to help them develop their skills, reach their full potential, and grow
within the organization.
3. Problem Solver: Managers are responsible for addressing and
resolving various issues that arise within their areas of responsibility.
This could involve troubleshooting operational problems, managing
conflicts, or making decisions to improve processes.
4. Communicator: Effective communication is crucial for managers. They
need to relay information both up and down the organizational
hierarchy. Managers also serve as a liaison between different
departments or teams.
5. Decision-Maker: Managers make important decisions that affect their
departments or teams. These decisions can range from setting goals
and priorities to allocating resources or making strategic choices.
6. Planner: Managers are involved in the planning process, whether it's
setting short-term or long-term goals, creating budgets, or developing
strategic plans for the organization.
7. Organizer: Managers are responsible for organizing resources,
including personnel, time, and materials, to ensure that work is carried
out efficiently and effectively.
8. Evaluator: Managers assess the performance of their teams, projects,
or processes against established goals and standards. They use this
information to make necessary adjustments and improvements.
9. Mediator: Managers sometimes have to mediate conflicts or
disagreements within their teams, helping to reach resolutions that
benefit both individuals and the organization.
10. Innovator: Managers can play a role in fostering innovation within their
departments. They may encourage new ideas, technologies, or
approaches to improve processes and products.
11. Representative: In some cases, managers represent their teams or
departments in meetings with higher-level management, other
departments, or external stakeholders.
12. Change Agent: Managers may lead or facilitate change initiatives
within their areas of responsibility, helping employees adapt to new
processes, technologies, or organizational structures.
13. Resource Allocator: Managers allocate resources such as budgets,
personnel, and equipment to ensure that their departments can
achieve their objectives.
14. Quality Assurance: Managers are often responsible for ensuring that
the work produced by their teams meets quality standards and
complies with relevant regulations and policies.
15. Risk Manager: In some organizations, managers are responsible for
identifying and mitigating risks related to their department's activities.

These subsidiary roles are essential for managers to effectively carry out their
primary functions, which include planning, organizing, leading, and controlling to
achieve organizational goals. The specific roles and responsibilities of managers can
vary widely depending on the organization, industry, and management level.

CHALLENGES IN MANAGEMENT

- It refers to the various obstacles and difficulties that managers face in their
efforts to effectively plan, organize, lead, and control their organizations
and teams. These challenges can arise in different areas and contexts of
management, and they often require innovative solutions and adaptive
strategies to overcome. Some common challenges in management
include:

● Change Management - Adapting to and managing organizational


change, whether it's related to technology, market trends, or internal
restructuring, can be challenging. Resistance to change from
employees and stakeholders can hinder the process.

● Employee Engagement - Maintaining high levels of employee


motivation and commitment is essential for productivity and
retention. Managers must address issues such as communication,
work-life balance, and career development to keep employees
engaged.

● Talent Management - Attracting, retaining, and developing top


talent is a constant challenge, particularly in a competitive job
market. Managers need to implement effective recruitment and
talent development strategies.

● Diversity and Inclusion - Managing diverse teams and promoting


inclusion can be complex. Overcoming biases and fostering an
inclusive culture is crucial for harnessing the full potential of a
diverse workforce.

● Digital Transformation - Rapid advancements in technology require


managers to keep up with digital trends and incorporate them into
their business strategies. This may involve integrating new
software, optimizing processes, and ensuring data security.

● Globalization - Operating in a globalized world brings challenges


related to cultural differences, international regulations, and supply
chain complexities. Managers must navigate these issues to
expand their businesses internationally.

● Cost Management - Balancing cost-cutting measures with


maintaining quality and efficiency are a perpetual challenge.
Managers need to make decisions that optimize resources without
compromising performance.

● Risk Management - Identifying, assessing, and mitigating various


risks, including financial, operational, and reputational risks, is a
critical part of management. Failure to manage risks can lead to
significant setbacks.

● Ethical Dilemmas - Managers often face ethical decisions that can


impact their organizations' reputation and bottom line. Balancing
profit with ethical principles and corporate social responsibility is a
constant challenge.

● Communication - Effective communication within an organization is


essential for coordination and alignment. Managers must ensure
clear and transparent communication channels to prevent
misunderstandings and conflicts.

● Time Management - The demands on a manager's time can be


overwhelming. Prioritizing tasks, delegating, and managing time
effectively are essential skills.

● Leadership Development - Identifying and nurturing future leaders


within the organization is crucial for long-term success. Developing
leadership skills and succession planning are ongoing challenges.

In summary, management is a multifaceted role that involves addressing a wide


range of challenges. Successful managers are those who can adapt to changing
circumstances, implement innovative solutions, and effectively lead their teams and
organizations to achieve their goals despite these challenges.

THE CONCLUSION IN MANAGEMENT

- This typically serves as the last section of a report, presentation, or


analysis in the field of management. Its primary purpose is to summarize
key findings, insights, and recommendations drawn from the preceding
discussion. Here are some common elements that you might find in a
conclusion in management:

● Summary of Key Points: The conclusion begins by summarizing the


main points and findings discussed in the report or presentation.
This helps the reader or audience quickly review the key
takeaways.
● Insights and Implications: It delves into the insights gained from the
analysis and discusses their implications for the organization or the
management of the subject matter. This often involves identifying
strengths, weaknesses, opportunities, and threats (SWOT analysis)
and discussing their significance.

● Recommendations: The conclusion typically includes


recommendations for action or decision-making based on the
analysis. These recommendations should be actionable, specific,
and tied to the findings discussed earlier.

● Future Directions: In some cases, the conclusion may also touch


upon potential future directions for research, projects, or strategies
related to the management topic. This can highlight areas where
further investigation or action is needed.

● Overall Assessment: The conclusion often provides an overall


assessment of the topic or situation. This may involve summarizing
whether the management approach discussed is effective, efficient,
or in need of improvement.

● Call to Action: In some situations, the conclusion might include a


call to action, encouraging the reader or audience to take specific
steps based on the information presented.

● Closure: The conclusion typically offers closure to the report or


presentation, wrapping up the discussion and leaving an impression
on the reader or audience.

Overall, the conclusion in management serves as a crucial part of the document or


presentation, bringing together the key elements and leaving the reader or audience
with a clear understanding of the findings and what actions or decisions should be
taken next.
REFERENCES:

"Understanding Management" by Daft and Marcic (2016) is a textbook that provides


an in-depth exploration of the field of management.

- This textbook, in its 10th edition, offers a comprehensive overview of


management principles and practices. It covers various aspects of
management, including planning, organizing, leading, and controlling, and
emphasizes their relevance in today's dynamic and ever-changing
business environment.

Key topics covered in the book include:

1. Introduction to Management - The book begins by introducing the concept of


management, its evolution, and its importance in organizations.
2. The Environment of Management - It discusses the external factors that
influence management decisions, such as globalization, technological
advancements, and ethical considerations.
3. Planning - This section explores the planning process, including setting goals,
developing strategies, and creating plans to achieve organizational objectives.
4. Organizing - The book delves into how managers organize resources,
structure teams, and allocate responsibilities to ensure effective
implementation of plans.
5. Leading - It covers leadership styles, motivation, communication, and
decision-making, highlighting the role of managers in guiding and inspiring
their teams.
6. Controlling - This section focuses on measuring and evaluating performance,
as well as taking corrective actions to ensure that organizational goals are
met.
7. Managing Change and Innovation - The authors discuss the challenges and
opportunities associated with change management and fostering innovation
within an organization.
8. Managing in a Global Environment - The book addresses the complexities of
managing in a globalized world, including cultural diversity, international
business strategies, and ethical considerations.
9. Entrepreneurship and Small Business Management - It explores the unique
aspects of managing small businesses and entrepreneurial ventures.
10. Contemporary Issues in Management - The authors cover current trends and
issues in management, such as sustainability, corporate social responsibility,
and the role of technology in decision-making.

Throughout the book, Daft and Marcic use real-world examples, case studies, and
practical applications to help readers understand and apply management concepts.
The 10th edition of "Understanding Management" provides a valuable resource for
students and professionals seeking a solid foundation in the field of management.

"Fundamentals of Management" by Robbins, Coulter, and DeCenzo (10th Edition) is


a widely used textbook that introduces the essential principles and concepts of
management. The book covers various aspects of management, including planning,
organizing, leading, and controlling, and it is designed to help students and aspiring
managers understand the fundamental principles and practices of effective
management.

Key topics covered in the book include:

1. The Nature of Management - An overview of what management is and its role


in organizations.
2. Historical Evolution - A look at the historical development of management
theories and practices.
3. Planning - The process of setting organizational goals, developing strategies,
and creating plans to achieve those goals.
4. Organizing - How to structure an organization, allocate resources, and
establish lines of authority and responsibility.
5. Leading - The role of leadership in motivating and influencing employees to
achieve organizational objectives.
6. Controlling - Methods for monitoring and evaluating organizational
performance to ensure that goals are met.
7. Decision Making - Techniques for making effective decisions in various
management contexts.
8. Communication - The importance of effective communication in management
and ways to improve it.
9. Managing Change and Innovation - Strategies for managing and adapting to
change in the business environment.
10. Global Management - An overview of the challenges and opportunities of
managing in a global context.

Throughout the book, real-world examples and case studies are used to illustrate
key concepts and provide practical insights into the field of management.

Overall, "Fundamentals of Management" serves as a comprehensive resource for


individuals seeking to develop a foundational understanding of management
principles and practices, whether they are students or professionals looking to
enhance their management skills.

Henry Mintzberg's 1973 book, "The Nature of Managerial Work," offers a


comprehensive examination of the roles and activities of managers within
organizations. Mintzberg's research involved observing and analyzing the work of
managers in various settings, leading to several key insights:

1. Managerial Roles: Mintzberg identifies ten distinct roles that managers play,
which he categorized into three groups: interpersonal (figurehead, leader,
liaison), informational (monitor, disseminator, spokesperson), and decisional
(entrepreneur, disturbance handler, resource allocator, negotiator). These
roles highlight the diverse tasks and responsibilities managers must handle.
2. Managerial Activities: The book delves into the day-to-day activities of
managers, emphasizing that their work is often fragmented and driven by
interruptions. Mintzberg argues that managers engage in a variety of
activities, such as communication, decision-making, and problem-solving, to
fulfill their roles.
3. Non-Routine Nature of Managerial Work: Mintzberg challenges the traditional
view of managerial work as a planned and orderly process. He emphasizes
that managers frequently deal with unstructured, unpredictable, and non-
routine tasks, making their jobs complex and demanding.
4. Management as a Practice: Mintzberg suggests that management is more of
a practice or craft than a science. He argues that effective managers rely on a
combination of formal education, experience, intuition, and interpersonal skills
to navigate the challenges of their roles.
5. Managerial Workload: The book provides insights into the high workload and
time pressure faced by managers. Mintzberg's research revealed that
managers work long hours and often experience a lack of control over their
schedules.

Overall, "The Nature of Managerial Work" is a seminal work that sheds light on the
realities of managerial roles and challenges the traditional notions of managerial
work. It remains a foundational text in the field of management and has influenced
subsequent research and understanding of the managerial profession.

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