Chapter 1: Introducing Management

Takeaway 1:
There are 6 elements are critically considered across industries: talent, technology,
globalization, ethics, diversity and careers

Talent: human resource is one of the advantages that every company want to achieve.
Talented people are able to deliver efficient outcomes in competing with rivals.

- Intellectual capital equation (Phương trình vốn trí tuệ): Intellectual Capital =
Competency x Commitment.

Competency (Năng lực) is your advantage, your ability or talent that needed
for your job

Commitment (Sự cam kết) is your willingness to work hard, to apply them to
your tasks.

➡ Both are required to meet career needs and performance requirements.

Knowledge workers: persons whose minds are critical assets (tài sản quan trọng). It relates
to the knowledge, the information you acquire and your mindset.

Technology:

- Tech IQ: your ability to use technology in all your life aspects and stay informed
on the latest technological developments. High TechIQ is important, because it
helps adapting quickly to new innovations.

Ex: LinkedIn.com as online career sites used by job hunters and employers.
Filling your online profile with the right key words. Employers use special software
to scan online profiles for indicators of real job skills and experiences that fit their
needs.

Globalization: indicates worldwide interdependence of resource flows, product markets,

and business competition that characterizes our economy.

- Job migration (Di cư việc làm) the shifting of jobs from one country to another.

Ethics: set of moral standards for what behavior is right and what is wrong. It depends on
individual being responsible for conducting right ethical business at all levels. Leaders are
supposed to conduct things right so that their followers can follow.

Diversity: a group of workers or a workforce that have differences in gender, age, race,
ethnicity, religion, sexual orientation, and able bodiedness. Since society is diverse, the way
we deal with diversity in the workplace is an issue. Some major problems are:
 - Prejudice: the holding of negative, irrational opinions and attitudes regarding
members of diverse populations.

- Discrimination: minority members are unfairly treated and denied the full
benefits of organizational membership.

- Glass ceiling effect: an invisible barrier that prevents women and minorities from
rising above a certain level regarding organizational responsibility.

Careers:

- Shamrock organization is a core group of permanent, full-time employees,

freelancers and part-time staff.

- Free- agent economy: you can change jobs often and work on flexible contracts
with a mix of employers over time.

- Self-management: realistically assess yourself, make constructive changes, and

manage your personal development.

Takeaway 2:
An organization is a collection of people working together to achieve a common purpose.
Its members perform tasks not only for their accomplishment (thành tựu) but also for the final
goal of the organization.

Organization as an open system that interacts with their environments: Obtaining

resource inputs (thu thập các nguồn đầu vào) —people, information, resources, and capita
(nguồn lực và vốn) l—and transforming them into outputs in the form of finished goods and
services for customers.

- Productivity: measures the quantity and quality of outputs relative to the cost of
inputs.

- Performance effectiveness is an output measure of task or goal

accomplishment.

- Performance efficiency is an input measure of the resource costs against goal

accomplishment.

There are changes in organizations:

- Focus on valuing human capital: work settings that create the knowledge,
experience, and commitment of all members.

- Demise of “command-and-control”: instead of “do as I say”, managers treat

people with respect.
 - Emphasis on teamwork: Organizations are driven by teamwork that consists of
talents for creative problem solving.

- Preeminence of technology: New developments change the way organizations

operate and how people work.

- Importance of networking: members are networked for intense, real-time

communication and coordination.

- New workforce expectations: A new generation is less tolerant of hierarchy, more

informal, attentive to performance merit, and concerned for work–life balance.

- Priorities on sustainability: more attention to natural resources and understanding

how work affects human well-being.

Takeaway 3:
Manager: supports, supervises, and helps motivate the work efforts and performance
accomplishments of staff, followers, team members.

If classifying by levels, we have 4 levels of managers.

- Board of directors whose members are elected by stockholders to represent

their ownership interests. The basic responsibilities of board members is to make
sure that the organization is always being run right

- Top managers are an executive team that reports to the board and is
responsible for the performance of an organization as a whole.

- Middle managers are in charge of relatively large departments consisting of

several smaller work units.

- Team leader is in charge of a small work group composed of non managerial

staff.

If classifying by levels, we have 4 types of managers.

- Line managers are responsible for work that makes a direct contribution to the
organization’s outputs.

- Staff managers use technical expertise to advise and support line workers.

- Functional managers have responsibility for a single area of activity such as

finance, marketing, production, human resources, accounting, or sales.

- General managers are responsible for activities covering many functional areas.

- Administrators are used in non-profit org.

Managerial Performance
 - Accountability is the requirement of one person to answer to a higher authority
for performance results in his or her area of work responsibility.

- Quality of work life (QWL) indicating the quality of staff experience with their job.

Changing Nature of Managerial Work

The concept of the upside-down pyramid fits with the changing mindset of managerial
today.

Takeaway 4:

These are the 4 basic functions of a manager

- Planning: is the process of setting performance objectives and determining

what actions should be taken to accomplish them. Through planning, a manager
identifies desired results and ways to achieve them.

- Organizing: Once plans are set, they must be implemented. The process of
assigning tasks, allocating resources, and coordinating the activities to
accomplish plans.

- Leading: is the process of arousing people’s enthusiasm and motivating their

efforts to work hard to accomplish objectives. Managers build commitments,
encourage activities and influencing others to do their work.

- Controlling: is the process of measuring performance, comparing results to

objectives, and taking corrective action as needed. Managers control by staying
in contact with people as they work, gathering and interpreting measurements
and make constructive changes.

Managerial Roles

Mintzberg identified a set of 10 roles commonly filled by managers:

- Interpersonal roles involve interactions with people inside and outside of org.

- A manager’s informational roles involve the giving, receiving, and analyzing of

information.

- The decisional roles involve using information to make decisions to solve

problems or address opportunities.

There are Essential Skills for a manager

- Technical Skills: the ability to use a special proficiency or expertise to perform

particular tasks. Technical skills are very important at job entry and early career
levels.
 - Human and Interpersonal Skills: the ability to work well in cooperation with
others.

o Emotional intelligence: how well you recognize, understand, and manage

feelings while interacting and dealing with others.

- Conceptual and Analytical Skills: the capacity to break problems into parts, see
the relations between the parts, and recognize the implications of each problem
for others. Conceptual skills are important in high levels of management.

Chapter 2: Management learning from past to

present
1. Classical management approaches
a. Scientific management
b. Administrative principles
c. Bureaucratic organization
2. Behavioral Management Approaches
a. Follett’s organizations as communities
b. The Hawthorne studies
c. Maslow’s theory of human needs
d. McGregor’s Theory X and Theory Y
e. Argyris’s theory of adult personality
3. Modern Management Foundations
a. Quantitative analysis and tools
b. Organization as systems
c. Contingency thinking
d. Quality management
e. Knowledge management and organizational learning
f. Evidence-based management

I-CLASSICAL MANAGEMENT APPROACHES:

Assumes that people are rational in taking opportunities to achieve personal and monetary
gain
I. Sciencetific management: emphasizes careful selection and training of workers
and supervisory support.
It comes with 4 guiding principles:
- A “science” that includes rules of motion, standardized work implements, and
proper working conditions.
- Carefully selection of workers with the right abilities.
- Carefully training workers to do the job and proper incentives to cooperate with
job “science.”
- Supporting workers by planning and by smoothing the jobs.
Motion study means reducing a task to its basic physical motions. It is encourage that
wasted activities in a task should be eliminated in order to improve efficiency
Insights from scientific management approach:
 - Advances of job design,
- Work standards, and incentive wage plans.
II. Administrative Principles
Fayol identifies the five “rules” of management:
1. Foresight—to complete a plan for the future
2. Organization—to provide and allocate resources to implement the plan
3. Command—to lead and evaluate workers to get the best work
4. Coordination—to fit diverse efforts and to ensure information is shared and problems
are solved
5. Control—to make sure things happen according to plan and to take necessary
corrective action
➡ The foundation for the 4 functions of management
Principles to guide managers including:
- Scalar chain principle—a clear and unbroken line of communication from the top
to the bottom in the organization. So that information can be shared and
transparency of a business is secured
- Unity of command principle—each person should receive orders from only one
boss in order to avoid confusion and power overlapping
- Unity of direction principle—one person should be in charge of all activities that
have the same performance objective
III. Bureaucratic Organization: a rational and efficient form of organization founded on
logic, order, and legitimate authority. His ideas developed after noticing organizations
performed poorly since people holding positions of authority not because of their
capabilities, but because of their “privileged” social status. So according to Weber’s
approach, people with ability will take authority and be in charge. A whole
organization will be run based on a hierarchy structure where managers give out
order to their lower level and then it is passed on to the subordinates.
The characteristics of bureaucratic organization are:
- Clear division of labor: Jobs are well defined, and workers become highly skilled
at performing them
- Clear hierarchy of authority: Authority and responsibility are well defined for each
position, and employees know who they report to
- Formal rules and procedures: established written guidelines and written files are
kept for historical record
- Impersonality: Rules and procedures are impartially and uniformly applied, with
no one receiving special treatment
- Careers based on merit: Workers are selected and promoted on ability,
competency, and performance

II-BEHAVIORAL MANAGEMENT APPROACHES: assume that people

are social and self-actualizing, responding to group pressures, and
searching for personal fulfillment.
- Follett’s notion of organizations as communities
- The Hawthorne studies
- Maslow’s theory of human needs
- Douglas McGregor
 - Chris Argyris
I. Follett’s Organizations as Communities
Organizations as “communities”: managers and workers labor in harmony without one party
dominating the other, and with the freedom reconcile conflicts and differences, the respect
for the experience and knowledge of workers, warned against the dangers of too much
hierarchy
Based on Follet’s study, there are insights that are still helpful:
- Emphasis on employee ownership in order to enhance their commitment
- Business problems involve a variety of factors that are in relationship to one
another
- And private profits should always be considered vis-à-vis the public good: ethics
and CSR
II. The Hawthorne Studies: people’s feelings, attitudes, and relationships with
coworkers affected their work, and that groups were important influences on
individuals
Social setting and human relation affect productivity: pleasant social interactions with one
another and received special attention that made employees feel important
Members would restrict their output to avoid the displeasure of the group -> groups have
strong negative/ positive influences on individual productivity
Hawthorne effect: the tendency of people who are singled out for special attention to
perform as anticipated because of expectations created by the situation
III. Maslow’s Theory of Human Needs
Maslow’s theory is based on two underlying principles:
- Deficit principle—a satisfied need is not a motivator of behavior. It means
people act to satisfy “desired” needs, a deficit
- Progression principle—a need at any level is activated only when the
next-lower-level need is satisfied
IV. McGregor’s Theory X and Theory Y
managers holding Theory X assumes that those who work for them generally dislike work,
lack ambition, are irresponsible, are resistant to change, and prefer to be led rather than to
lead
Theory Y assumes that manager believes people are willing to work, capable of self-control,
willing to accept responsibility, imaginative and creative, and capable of self-direction
V. Argyris’s Theory of Adult Personality
Managers who treat people positively and as responsible adults will achieve the highest
productivity. Theory is contradict to the classical management approaches:
- In scientific management, people will work more efficiently as tasks become
simpler and better defined. Argyris believes that this limits opportunities for
self-actualization
- In Weber’s bureaucracy, people work in a clear hierarchy of authority. Argyris
worries that this creates dependent, passive workers
- In Fayol’s administrative principles, the concept of unity of direction assumes that
efficiency will increase when a person’s work is planned and directed by a
supervisor. Argyris suggests that this creates conditions for psychological failure.

III-MODERN MANAGEMENT FOUNDATIONS

I. Quantitative Analysis and Tools
Managers mine data in order to make decisions --> analytics: the systematic analysis of
large databases to solve problems and make informed decisions.

Organizations as Systems

One company achieves great things by combining resources and the contributions of many
individuals to achieve a common purpose.

Subsystems are formed which are interrelated to each other

➡High performance occurs only when each subsystem both performs its tasks well
and works well in cooperation with others

II. Contingency Thinking

Contingency thinking matches responses with problems and opportunities specific to

different people and settings

➡ The contingency perspective tries to help managers understand situational

differences and respond to them in ways that fit their characteristics.

III. Quality Management

TQM makes quality principles part of the organization’s strategic objectives, applying them to
all aspects of operations. TQM approaches begin with the total quality commitment applies
to every subsystem in an organization

➡Measure and control the quality of the whole open system from the inputs to
outputs as well as the feedback which contributes to the improvement of input
resources

Continuous improvement: always looking for new ways to improve on current

performance.

ISO certification is a global quality benchmark that businesses want to achieve in order to
define their quality level

IV. Knowledge Management and Organizational Learning

Knowledge management describes the processes through which organizations use

information technology to develop, organize, and share knowledge to achieve performance
success

Intellectual assets such as patent, intellectual property rights, trade secrets, etc. need to be
well managed and continually enhanced

A learning organization is the one that people, values, and systems continuously change
and improve its performance based upon experience

➡Help all members to learn through information sharing, teamwork, empowerment,

and participation.
 V. Evidence-Based Management

Evidence-based management means making management decisions based on what really

works rather than on things that sound good but lack of empirical proof.

Four sources of information:

- Practitioner expertise and judgment: knowledge and past experience

- Evidence from the local context

- Critical evaluation of the best available evidence

- Perspectives of those people who might be affected by the decision

Chapter 4: Environment innovation and

sustainability
Takeawary 1: The General or Macro Environment
The general or macroenvironment — all of the background conditions in the external
environment of the organization including:

Economic conditions

- Overall health of economy in terms of financial markets, inflation, income levels, and
job outlook must be assessed before making decisions
 - Offshoring ( ex bye material from other countries with lower price ) : outsourcing of
jobs to foreign locations
- Reshoring: return of jobs from foreign locations (higher shipping costs, complicated
logistics, poor customer service, public criticisms)

Legal-political conditions

(current condi of the government- ex want to open a brand in china- need to follow the law in
china )

- Laws and regulations, government policies, and the objectives of political parties
- Vary from one country to the next
- Internet censorship - deliberate blockage of public access to information posted on
the Internet ( don’t allow to use other platform( face, google) but they can use their
own platform (china- wechat)

Sociocultural conditions

- They are norms, customs, and demographics of a society, as well as social values
like ethics, human rights, gender roles, and lifestyles. (need to follow the tradition ( tet
holiday)
- Diversity issues relating to educational opportunity, access to technology, housing/job
options are reflected in modern workplace(glass silling effect – an ivisible mindset
- Generational cohorts - people born within a few years of one another and who
experience somewhat similar life events during their formative years

Technological conditions (current tech of 1 place- ex: VN)

- Spending on social media usage for product promotions, reputation management

and more.
- If affects everything from the way we work to how we live (Grap, shopee, tiktok)
- In the workplace, it ranges form new product development to virtual meetings and
always-available chats.

➡ It brings both opportunities and problems- work-life balance

Natural environment conditions

- Calls for being “green” and “sustainable” are common in our communities
- Sustainable business: meets both the needs of customers and protects the natural
environment.
- Organizations try to reduce water consumption, cut back waste and increase
recycling, buy and consume more local produce, and eliminate pollution.

Ex: sample elements in the general environments of organizations

Takeaway 2: The Specific or Task Environment
The specific (task) environment - actual organizations, groups, and persons with whom an
organization interacts and conducts business.

Stakeholders : the persons/ groups/ institutions affected by the organization’s performance:

Multiple stakeholders in the environment of an organization

Competitive advantage

- A core competency that clearly sets an organization apart from competitors and gives
it an advantage over them in the market place
- Companies may achieve competitive advantage in many ways, including:
+ Cost: lower cost and thus earn profits with prices that one’s competitors have
difficulty matching
 + Quality: consistently higher quality for customers than what is offered by your
competitors
+ Delivery: outperform by delivering products faster and on time
+ Flexibility: adjust and tailor products and services to fit customer needs

Environmental uncertainty

- Lack of complete infor regarding what exists and what deve may occur in the external
envi

Two dimensions of environmental uncertainty:

- Degree of complexity: the number of diff factors in the envi

- Rate of change: changes in and among these factors (stable/ dynamic)

Dimensions of uncertainty

Takeaway 3 : Envi and Innovation

Innovation- process of putting new ideas into practice

Business innovations

- Product innovations: result in the creation of new/ improved goods and services
- Process innovations: result in better ways of doing things
- Business model innovations: result in new ways of making money fo the firm

Social business innovations:

find ways to use business models to address important social problems

Reverse innovation:

deve new products from settings where they are created under pricing constraints, and puts
them into use elsewhere

Disruptive innovation:

creates products/ services that become so widely used that they largely replace prior
practices and competitors

The innovation process:

1. imagining- thinking about new possibilities

2. designing- building initial models, prototypes/samples
3. experimenting- examining practicality and financial value through feasibility studies
4. assessing - identifying strengths and weaknesses, potential costs and benefits, and
potential markets or applications
5. scaling- implementing what has been learned and commercializing new products/
services

Takeaway 4: Envi and Sustainability

Sustainability- commitment to protect the rights of present and future generations as
co-stakeholders of natural resources
Sustainable deve- refers to many processes and pathways to achieve sustainability
Envi capital- natural resources used to sustain life and produce goods and services for
society
- Soil
- Atmosphere
- Water
- Minerals
Sustainable/green innovations- help reduce an organization’s negative impact; enhance
positive impact
Human sustainability- concern for the effect of management practices on employee
physical and physical well-being
- health and wellness programs
- stress management
- minimizing work-family conflict
- fair wages and opportunities
Chapter 5: Global Management and cultural
diversity
I. GLOBAL ECONOMY
1. Global economy in which resource supplies, product markets, and business
competition are worldwide rather than local or national in scope.

2. Globalization is the growing interdependence among elements of the global

economy

➡ Globalization is important because the flow affects jobs, salaries, income

distributions, and so on.

3. World 3.0 is a world where nations cooperate in the global economy while still
respecting different national characters and interests.
4. The term used to describe management in businesses and organizations with
interests in more than one country is global management.
5. Global management will require a global manager. The success of firms like these
depends on being able to attract and hire truly global managers who have strong
global perspectives, are culturally aware, and always stay informed about
international developments.
6. International businesses are businesses that conduct for-profit transactions of
goods and services across national boundaries, like Nike.
- Nike does no domestic manufacturing. All of its products are made from sources
abroad
- New Balance makes use of global suppliers and licenses its products
internationally, and produces at factories in the United States.
➡ Both are doing international businesses for these common reasons:
- Profits—Gain profits through expanded operations.
- Customers—Enter new markets to gain new customers.
- Suppliers—Get access to materials, products, and services.
- Labor—Get access to lower-cost talented workers.
- Capital—Tap a larger pool of financial resources.
- Risk—Spread assets among multiple countries.
7. There would be 2 approaches:
a. Market-entry strategies that involve the sale of goods or services to foreign
markets without expensive investments
b. Direct investment strategies require major capital commitments, create
rights of ownership and control over operations in the foreign country
Market entry strategies are the first steps in globalizing an organization:
- Global sourcing—the process of purchasing materials, manufacturing
components, or locating business services around the world.
- Exporting—selling locally made products in foreign markets.
- Importing—buying foreign-made products and selling them in domestic markets.
- Licensing agreement whereby foreign firms pay a fee for rights to make or sell
another company’s products in a specified region.
 - Franchising is a form of licensing in which the foreign firm buys the rights to use
another’s name and operating methods in its home country.
Direct investment strategies:
- Foreign direct investment, or FDI, involves setting up and buying all or part of a
business in another country. And the ability to attract foreign business investors
has been a key to succeeding in the global economy -> insourcing is job
creation through DI.
- When foreign firms invest in a new country, a common way to start is with a joint
venture. This is a co-ownership arrangement in which the foreign and local
partners agree to pool resources, share risks, and jointly operate the new
business. It can be a part ownership of the local organization or both can join
together to have a new operation.
- International joint ventures are types of global strategic alliances in which
foreign and domestic firms work together for mutual benefit. Both gain their own
benefits.
- A foreign subsidiary is a local operation completely owned and controlled by a
foreign firm. Or a company operating overseas that is part of a larger corporation
with headquarters in another country, often known as a parent company or a
holding company.
o The difference between a foreign subsidiary and a joint venture is that
subsidiary is operated as a completely foreign-owned enterprise while a
joint-venture company is owned by both foreign investors and at least one
domestic investor.
- Greenfield ventures where it is built from constructing all facilities from start by
the foreign owner. You open a business in a new market without the help of
another business which is already present there. It has advantages of high level
of control over business operations and image, High level of quality control over
the manufacturing and sale of products, and be able to create jobs for the
economy where the greenfield investment is taking place. However, this is the
riskiest form of foreign direct investment with potentially high market entry cost,
Government regulations and high fixed cost.

II. GLOBAL BUSINESS ENVIRONMENT

1. Legal and Political Systems
Some of the biggest risk in international business comes from differences in legal and
political systems. Global firms are expected to abide by local laws, some of which may be
unfamiliar.
Political risk—the potential loss in value of an investment in or managerial control over a
foreign asset because of instability and political changes in the host country. The major
threats of political risk today come from terrorism, civil wars, armed conflicts, and new
government systems and policies.
Most global firms use a planning technique called political-risk analysis to forecast
the probability of disruptive events that can threaten the security of a foreign investment.
2. Trade Agreements and Trade Barriers (foreign invester come to VN have
free tax for 3 yrs-> boost the economy grow )
When international businesses believe they are being mistreated in foreign countries, or
when local companies believe foreign competitors are disadvantaging them, their respective
governments might take the cases to the World Trade Organization.
Yet trade barriers are still common. They include
- Tariffs, which are taxes that governments impose on imports.
- Nontariff barriers that discourage imports in nontax ways such as quotas, import
restrictions.
- Protectionism that give favorable treatment to domestic businesses.
➡ The purpose for tariffs and protectionism is to protect local firms from foreign
competition and save jobs for local workers.
3. Regional Economic Alliances: nations agree to work together for economic
gains.
4. Global Businesses
a. Host-Country Issues

- Potential host-country costs are: complaints that global corporations extract

excessive profits, dominate the local economy, interfere with the local
government, do not respect local customs and laws, fail to help domestic firms
develop, hire the most talented of local personnel, and fail to transfer their most
advanced technologies.

b. Home-Country Issues
- Global corporations can also get into trouble at home in the countries where they
were founded and where their headquarters are located.
- Even as many global firms try to operate as transnationals, home-country
governments and citizens still tend to identify them with local and national
interests.
- Whenever a global business cuts back home-country jobs, or closes a domestic
operation in order to shift work to lower-cost international destinations, the loss is
controversial.
- Corporate decision makers are likely to be called upon by government and
community leaders to reconsider and give priority to domestic social
responsibilities.
5. Ethics Challenges for Global Businesses
- Corruption: occurs when people engage in illlegal practices to further their
personal business interests.
- Child Labor and Sweatshops:
o Child labor—the employment of children to perform work otherwise done
by adults, a major ethics issue for global businesses as they follow the
world’s low-cost manufacturing from country to country
o Sweatshops—business operations that employ workers at low wages for
long hours in poor working conditions

III. CULTURE AND GLOBAL DIVERSITY

- Culture is the shared set of beliefs, values, and patterns of behavior common to
a group of people.
 - Culture shock is the confusion and discomfort a person experiences when in an
unfamiliar culture.
- Ethnocentrism, a tendency to view one’s culture as su- perior to that of others.
- Cultural intelligence, the ability to adapt and adjust to new cultures.
1. The silent language of culture:
a. Context: cultures differ in their use of language in communication.
Most communication in low-context cultures takes place via the written or spoken word:
say or write what they mean and mean what they say.
In high-context cultures what is said or written may convey only part of the real message.
The rest must be interpreted from the situation, body language, physical setting, and even
past relationships.
b. Time
People in monochronic cultures often do one thing at a time. It is common in the United
States, for example, to schedule meetings with specific people and focus on a specific
agenda
Members of polychronic cultures are more flexible toward time. They often try to work on
many different things at once, perhaps not in any particular order, and give in to distractions
and interruptions
c. Space
Proxemics, the study of how people use space to communicate.
2. Tight and Loose Cultures

The concept of cultural tightness-looseness:

(1) the strength of norms that govern social behavior, and

(2) the tolerance that exists for any deviations from the norms.

3. Values and National Cultures

5 cultural dimensions: power distance, uncertainty avoidance, individualism–collectivism,
and masculinity
1. Power Distance is the extent to which power inequality is accepted by society.
Even though unequal distribution of power happens in many countries, cultures
are not harmonious in terms of public acceptance.
2. Individualism – Collectivism is whether an individual value is perceived with a
social system or their achievements. Individualism is individuals taking personal
interest over the purpose of the group.
3. Uncertainty Avoidance describes the tolerance of uncertain events. Culture with
high uncertainty avoidance dimension tends to minimize the unknowns with
formal regulations and principles.
4. Masculinity – Femininity refers to society's dominant value. Masculinity underlines
achievements, assertiveness and valuable materials while Femininity stresses
the importance of equality and relationships between individuals.
5. Long-term Orientation and Short-term Orientation how every society has to
maintain some links with its own past while dealing with the challenges of the
present and future.
Chapter 8:
I. Why do managers plan?
1. It creates a solid foundation for the other management functions. You know where
to put your staff and how to distribute your resources (organizing), you know what activities
need to be done and how to lead (leading) and you will be able to identify whether there is a
need for corrective actions (controlling)
Planning: The process of setting objectives and determining how to accomplish them
Objectives and goals: Identify the specific results or desired outcomes that one
intends to achieve
Plan: A statement of action steps to be taken in order to accomplish the objectives
2. Steps of planning process:
1. Define your objectives—Identify desired goals or results in very specific
ways.
2. Determine where you stand along with objectives—Evaluate your current
accomplishments relation with the desired results.
3. Develop premises regarding future conditions—Forecast future events.
4. Analyze alternatives and make a plan—Then list and evaluate possible
activities.
5. Implement the plan and evaluate results—Take the plan into real practice,
execute it and measure your progress toward your goals.
-> The main focus in planning phase is objectives and goals.
3. Benefits of Planning
a. Planning Improves Focus and Flexibility
An organization with focus knows what it does best, its strengths and it knows the
needs of customers, and how to serve those needs well. A person with focus knows where
he or she wants to go in life and what his or her competencies are
An organization with flexibility is willing and able to change and adapt to shifting
circumstances without losing focus, and it operates with an orientation toward the future
rather than the past. An individual with flexibility adjusts career plans to fit new
competencies, developing opportunities as well as shifting market demands
b. Planning Improves Action Orientation
During planing phase, you are able to set your objectives and it helps focusing our
attention on priorities and avoiding the complacency trap— being being carried along by the
flow of events and lose track of the actual target
c. Planning Improves Coordination and Control
 The individuals, groups, and subsystems’ efforts must be combined into meaningful
contributions to the organization.
Good plans will help coordinate the activities of individuals, groups, and subsystems
to achieve the common goals.
d. Planning and Time Management
Planning helps in terms of time management. Some tips for time management:
– DO say “no” to requests that distract from what you should be doing
– DO screen telephone calls, emails, and meeting requests
– DO prioritize your important and urgent work
– DO follow priorities; do most important and urgent work first
– DON’T let drop-in visitors instant messaging use up your time
– DON’T get bogged down in details that can be addressed later
– DON’T become calendar bound by letting others control your schedule

II. Types of Plans Used by Managers

By classifying plan in terms of period that plan is applied:
- Long-term plans looked three or more years into the future
- Short-term plans covered one year or less.
-> Long-term plan sets the context for staff to work on useful short-term plan
By classifying based on the scope that plan covers:
- Vision is what you want to be in the future, where you wanna to stand.
- Strategic plans focused on the performance of organization as a whole. They
set broad action directions and allocate resources for maximum performance impact.
- Tactical plans are developed and used to implement strategic plans. They
specify how the organization’s resources can be used to put strategies into action.
- Functional plans indicate how different components of the enterprise will
contribute to the overall strategy. It is a kind of tactical plans, but it focuses on each
department or sub-system of an organization.
- Operational plans are plans that identify behavior and describe what needs to
be done in the short term to support strategic and tactical plans. They include both standing
plans like policies and procedures that are used over and over again, and single-use plans like
budgets that apply to one specific task or time period.
III. Planning Tools and Techniques
1. Forecasting
Forecasting is the process of predicting what will happen in the future.
It relies on human judgement; hence, it is not recommended to base all your planning
on forecasting.
2. Contingency Planning
Contingency planning is identifying alternative courses of action that can be
implemented if circumstances change.
3. Scenario Planning
Scenario planning is a long-term version of contingency planning.
It involves identifying several possible future scenarios and making plans to deal with
each scenario. In this sense, scenario planning forces us to think far ahead and be open to lots
of possibilities that can impact our plans, impact our operation or even the objectives.
4. Benchmarking
Benchmarking is the use of external and internal comparisons to better evaluate
current performance and identify possible ways to improve for the future
The purpose of benchmarking is to find out best practices then plan how to
incorporate these ideas into your own operations.
5. Staff Planning
The use of staff planners to help coordinate and energize all dept and other employees
to participate in planning. They can help to improve focus and expertise to a wide variety of
planning tasks. The risk is communication. People / staff need to work closely in planning
and commit to implementing the plan
IV. Implementing Plans
1. Goal Setting
Specific—clearly targeted key results and outcomes to be accomplished.
Timely—linked to specific timetables and “due dates.”
Measurable—described so results can be measured without ambiguity.
Challenging—include a stretch factor that moves toward real gains.
Attainable—although challenging, realistic and possible to achieve.
2. Goal Alignment
Goal alignment is important, cause what we do within a company should contribute to
each other and to the overall performance. Each sub-system has its own goal to achieve but
those goals have to aligned with each other in contributing to the accomplishment of common
goals of org as a whole.
 Within a team, goal alignment is needed so that all team members are aware of what
the purpose of their tasks and how their contributions can help achieving team’s goal:
– Jointly plan: set objectives, set standards, choose actions
– Individually set: perform tasks (member), provide support (leader)
– Jointly control: review results, discuss implications, renew cycle
3. Participation and Involvement
– “Participation” and “Involvement” are two of planning core components.
– Participatory planning includes in all planning steps the people who will be
affected by the plans and asked to help implement them.
– Participation can increase the creativity and information available for
planning, increase the understanding and acceptance of plans, as well as commitment to their
success.
– Even though it is time consuming, it improves results by improve plan quality
and effectiveness when implementing.

Chapter 9:
I-Why and how to control?
Controlling purpose is to measure performance in order to take corrective action.
The target of it is to assure the right things happen, with the right process at the right
time
II-Types of control
· Feedforward controls input: solve problem before it occurs: make sure the
objective is cleared, direction is set and resource is available
· Concurrent controls throughput: solve problem during it occurs: keep things go as
planned
· Feedback controls output: solve problem after it occurs: perform improvement or
learning
· Internal – self-control: self-discipline influences the behavior.
· External: external factors influnece behavior
- Bureaucratic control: influences behavior by authority, policies, budget,
regulations
- Clan control: influence behavior by the organizational culture, norms
- Market control: market influences organization behavior with product adjustment,
process improvement
III-Steps of controlling process:

IV-Tools and techniques:

1. Gantt chart:
i. What Is a Gantt Chart?
A Gantt chart is a commonly used graphical depiction of a project schedule. It's a
type of bar chart showing the start and finish dates of a project's elements such as
resources, planning, and dependencies.
The chart shows the project timeline, which includes scheduled and completed work
over a period of time. The Gantt chart aids project managers in communicating
project status and completion rate of specific tasks within a project, and also helps
ensure the project remains on track. By convention, it is a standard tool that makes
communication unified among the
graphic display of scheduled tasks required to complete a project.
ii. Benefits of a Gantt Chart
The chart identifies tasks that may be executed in parallel and those that can't be
started or finished until others are complete. It can help detect potential bottlenecks
and identify tasks that may have been excluded from the project timeline.
The chart depicts things like task slack time or additional time for completion of a
task that shouldn't delay the project; noncritical activities that may be delayed; and
critical activities that must be executed on time.

2. CPM/PERT chart: combination of the critical path method and program

evaluation and review technique
i. PERT:
A PERT chart, also known as a PERT diagram, is a tool used to schedule, organize,
and map out tasks within a project. It provides a visual representation of a project's
timeline and breaks down individual tasks.
A PERT chart works by visually representing a project’s tasks and the dependencies
connected to each one. You might use one to create an initial project schedule and
estimated timeline to share with project stakeholders before the project actually
begins.

ii. CPM
The critical path is the longest sequence of tasks that must be completed to execute
a project. The tasks on the critical path are called critical activities because if they’re
delayed, the whole project completion will be delayed.
Finding the critical path is very helpful for project managers because it allows them
to:
· Accurately estimate the total project duration.
· Estimate the time that’s necessary to complete each project task.
· Identify critical activities which must be completed on time and require
close supervision.
· Find out which project tasks can be delayed without affecting the project
schedule by calculating slack for each task.
· Identify task dependencies, resource constraints and project risks.
· Prioritize tasks and create realistic project schedules.
iii. CPM vs. PERT
The critical path method (CPM) and program evaluation and review technique
(PERT) are both project scheduling techniques. But they aren’t interchangeable.
The difference between them lies in that PERT is about time planning and time
management, while CPM is about time and budgeting. PERT delivers a project
quickly and CPM gets the project done on budget and on time.
However, PERT and CPM can be used together for project planning and scheduling.

3. Inventory control: ensures that inventory is only big enough to meet

immediate needs
i. Economic order quantity: places new orders when inventory
levels fall to predetermined points
ii. Just-in-time scheduling: routes materials to workstations just in
time for use
4. Breakeven analysis: performs what-if calculations under different revenue
and cost conditions
i. Breakeven point: occurs where revenues just equal costs
5. Financial control: basic Financial Ratios
o Liquidity measures ability to meet short-term obligations: the higher the better
- Current Ratio = Current Assets/Current Liabilities
- Quick Ratio = Current Assets - Inventories/Current Liabilities
o Leverage measures use of debt: the lower the better
- Debt Ratio = Total Debts/Total Assets
o Asset Management measures asset and inventory efficiency: the higher the better
- Asset Turnover = Sales/Total Assets
- Inventory Turnover = Sales/Average Inventory
o Profitability measures ability to earn revenues greater than costs: the higher the
better
- Net Margin = Net Income/Sales
 - Return on Assets (ROA) = Net Income/Total Assets
- Return on Equity (ROE) = Net Income/Owner’s Equity
6. Balanced Scorecard: were originally meant for for-profit companies but were
later adapted for nonprofit organizations and government agencies. It is meant to
measure the intellectual capital of a company, such as training, skills, knowledge,
and any other proprietary information that gives it a competitive advantage in the
market. The balanced scorecard model reinforces good behaviour in an organization
by isolating four separate areas that need to be analyzed. These four areas, also
called legs, involve:
Factors used to develop scorecard goals and measures:
· Learning and growth are analyzed through the investigation of training and
knowledge resources. This first leg handles how well information is
captured and how effectively employees use that information to convert it
to a competitive advantage within the industry.
· Business processes are evaluated by investigating how well products are
manufactured. Operational management is analyzed to track any gaps,
delays, bottlenecks, shortages, or waste.
· Customer perspectives are collected to gauge customer satisfaction with
the quality, price, and availability of products or services. Customers
provide feedback about their satisfaction with current products.
· Financial data, such as sales, expenditures, and income are used to
understand financial performance. These financial metrics may include
dollar amounts, financial ratios, budget variances, or income targets.