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1-CHAPTER 1 - Lesson 1 - The Management Concept

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4 views

1-CHAPTER 1 - Lesson 1 - The Management Concept

1-CHAPTER_1_-_Lesson_1_-_The_Management_Concept

Uploaded by

20sparkediting
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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ORGANIZATION AND MANAGEMENT

CHAPTER 1
Nature and Concept of
Management
Today's
Discussion
Nature of Management
Meaning and Importance of
Management
Efficiency and Effectiveness
Factors Influencing Management
THE MANAGEMENT CONCEPT

Nature of Management
Management is considered as both science and art
It is science since it evolved from a number of theories that
involved extensive studies and experiments. The management
principles practiced by businesspeople and professionals are based
on scientific principles, scholarly studies, and statistical data

It is an art since creativity and ingenuity are important traits of


managers that enable them to effectively use business strategies in
any situation, make innovations that results in new products,
services, and processes
MEANING AND IMPORTANCE OF
MANAGEMENT
Management

the process of planning, organizing, leading, and controlling the


activities of an organization effectively and effieciently to achieve
its goals
it also provides the means to maintain a firm's competitive
advantage. It lays out the foundation of successful operations that
lead to effieciency and profitability, and establishes the link
between the development of strategies and their implementation
and control

it plays a crucial role in every organization, especially in today's


world that is much more complex and where constant change is the
norm
EFFICIENCY AND EFFECTIVENESS
Efficiency and effectiveness are closely related concepts that
managers apply to render excellent performance. A skillful balance
between the two defines the success or failure of a manager.

Efficiency
often referred to as "doing things right", and is the ability to
maximize output with minimum input
there is an element of speed since it requires things to be done
quickly to avoid wasting time and effort

Effectiveness
often referred to as "doing the thing right", and is the capacity to
atatin an intended objective or result
the intention is to meet the desired goal regardless of the amount
of input required
if there is a goal that needs to be achieved, the things that need to
be done are prioritized to achieve that goal
FACTORS INFLUENCING
MANAGEMENT

Five Factors that Influence Today's Business Environment

1. Globalization

the phenomenon of growing interconnectivity and interdependent


relations between nations (greatly influenced by the advancements
in technology, transportation, communication, education, and
gradual deregulation of trade)
as a result, local companies have now become a part of a highly
competitive global market that is characterized by a wide audience
and a great potential for increased profit

this result poses a challenge for managers to consistently make


good decisions to satisfy and maintain their customers and attract
more buyers for their products and services
2. Technology

one of the main driving forces of business and advancements in this


area have immensely improved business trends
new technologies have rendered business functions and related
tasks easier to accomplish, bringing about increased levels of
productivity [e.g. (1) customers and suppliers now use websites, social
media, and email in several business functions, (2) people located in
different places can now work and communicate with each other at
the same time, and (3) a worker may perform one task at the office
while another performs a task at home or at another site]
these online tools and technology allow managers to have a firmer
control over the different functions of the company, from receiving
and carrying out orders from the top management to managing
every individual team member
3.Sustainability and Corporate Social Responsibility

Sustainability (in business) means that companies should plan and


conduct long-term business operations to ensure minimal negative
impact on the social, cultural, and economic aspects of their
external environment or community (e.g. implementation of
recycling, reduction of energy consumption in workplace, use and
production of environmentally friendly products)
Corporate Social Responsibility (in business) is the willingness of
companies to run their business operations in a sustainable and
responsible manner (e.g. social outreach programs, support of
significant causes, other forms of philantropic activities)
managers are continually challenged to implement programs and
processes that will enable their organizations to engage in
sustainable and sociall responsible activities while maintaining their
level of productivity
4. Psychology

an important facet in management since it focuses on developing


people management skills and analyzing customer satisfaction
a better understanding of psychological concepts such as
motivation, behavior, attitude, and personality is vital for effective
management

this can help managers foster closer relations and better


communication with employees that will later on enable them to
better assess their employees, determine their strengths and
weaknesses, and guide them toward personal and professional
development
5. Ecosystems

Business Ecosystems consists of a group of firms that provide


related products and services
the emergence of business ecosystems has resulted in
improvements and innovations in industries (e.g. the collaboration
between telecommunication firms, media, and technology to
disseminate information to the public)

thus, business ecosystems rely on collective and collaborative


action in carrying out organizational decisions. Information sharing
among organizations within a business ecosystem is crucial in
determining the direction that the industry should take, especially
in implementing changes that might impact their businesses and
external environment

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