1 Welcome to Principles of Management MGS 2030 Joe McGill W403E (O) (H) turbo.kean.edu/~jmcgill

2 So ….what is management?

years in 5 minutes B.C Egyptian pyramids B.C. 500 No Greek merchant-citizens A.D. 400 Buy stocks for Rome A.D. 600 African Trade A.D Arabic Trade A.D Europe - Usury prohibited A.D Europe - Mercantilism ~ The industrial revolution!

4 Ownership and management Industrial Revolution = Division of labor Private (not state) ownership and property rights grew Ownership and management separated through stock ownership - owners no longer manage the business

5 Managers focus on achieving organizational objectives in a changing environment … coordinate people and resources in an efficient and effective manner

6 management is an economic activity:....management has failed if it fails to … supply goods and services desired by the consumer at a price the consumer is willing to pay. It has failed if it does not improve or at least maintain the wealth producing capacity of the economic resources entrusted to it. (Peter F. Drucker, The Practice of Management, 1954)

7 management is a business discipline... a professional activity - like law and medicine, entry requires a formal education taught and researched scholarly body of literature identified as "management".

8 Define management Compare/contrast effectiveness and efficiency. Compare/contrast functions and roles Objectives

9 Four Realities of Managing Today Must adapt to change 1.Be fast 2.Work well in teams 3.Be flexible 4.Stay close to the customer

10 Management Defined Management –Working with and through others to achieve organizational objectives in a changing environment. –Management is the effective and efficient use of limited resources.

11 Working with and Through Others Management is a social process - managers get things done by working with and through others. Shortcomings of “derailed” managers –interpersonal problems –business objectives not met –Unable to build and lead a team –Unable to adapt when things change

12 Achieve Organizational Objectives An objective is a target to be strived for and attained. –Examples?

13 Effectiveness vs. Efficiency Effectiveness –Promptly achieving a stated organizational objective –Examples?. Efficiency –Balancing the amount of resources used to achieve an objective against what was actually accomplished. –Examples?

14 Making the Most of Limited Resources We live in a world of scarcity. There is a lopsided use of resources. Our planet is becoming increasingly crowded. Over 80% of the world’s population lives in poor and less-developed countries. Managers are responsible for the efficient and effective use of the basic factors of production–land, labor, and capital.

15 Coping with a Changing Environment Five Major Sources of Change for Today’s Managers –Globalization –environmentalism –ethical reawakening –e-Business –The evolution of product quality

16 Ethical/Legal Problems in the Workplace Lying to supervisors Lying on reports or falsifying records Stealing and theft Sexual harassment Abusing drugs or alcohol Conflict of interest

17 The Evolution Of Product Quality The fix-it-in approach The inspect-it-in approach The build-it-in approach The design-it-in approach

18 How to categorize what managers do? Managerial Functions (P O L C) –P lanning decision making –O rganizing Staffing/Obtain resources Communicating –L eading motivating, proper culture –C ontrolling

19 Managerial Roles Interpersonal –Care for the culture –Care for the individual (up, down, peers) Informational –S/R Vertical –S/R Horizontal Decisional –Create change –Monitor performance –Negotiate for and distribute resources

20 Learning to Manage How Do I Learn to Manage? –Make a big mistake. –Get a difficult assignment. –Get stuck in an impasse or dilemma. –Suffer an injustice at work. –Lose out to someone else. –Be personally attacked.

21 Entrepreneurship –The process by which individuals–either on their own or inside organizations–pursue opportunities without regard to the resources they currently control. Entrepreneur’s Dilemma –Either grow with the company or have the courage to step aside and turn control over to professional managers with the requisite administrative skills.

22 Entrepreneurship Traits of Entrepreneurs –Focus is on envisioned futures. –Emphasize external/market dimensions. –Display a medium-to-high tolerance for ambiguity. –Exhibit moderate-to-high risk-taking behavior. –Obtain motivation from a need to achieve. –Possess technical knowledge and experience in the innovative area.