Welcome to

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Welcome to Principles of Management MGS
2030 Joe McGill W403E 908 737 4166 (O) 973 729
4392 (H) jmcgill_at_kean.edu turbo.kean.edu/jmcgill
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So .what is management?
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5000 years in 5 minutes

• B.C. 2500 Egyptian pyramids
• B.C. 500 No Greek merchant-citizens
• A.D. 400 Buy stocks for Rome
• A.D. 600 African Trade
• A.D. 1300 Arabic Trade
• A.D. 1400 Europe - Usury prohibited
• A.D. 1600 Europe - Mercantilism
• 1750 ...The industrial revolution!

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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

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

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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)
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• 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".

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Objectives
Define management Compare/contrast effectiveness
and efficiency. Compare/contrast functions and
roles
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Four Realities of Managing Today

• Must adapt to change
• Be fast
• Work well in teams
• Be flexible
• Stay close to the customer

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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.

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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

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Achieve Organizational Objectives

• An objective is a target to be strived for and
  attained.
• Examples?

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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?

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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 worlds population lives in poor
  and less-developed countries.
• Managers are responsible for the efficient and
  effective use of the basic factors of
  productionland, labor, and capital.

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Coping with a Changing Environment

• Five Major Sources of Change for Todays Managers
• Globalization
• environmentalism
• ethical reawakening
• e-Business
• The evolution of product quality

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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

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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

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How to categorize what managers do?

• Managerial Functions (P O L C)
• Planning
• decision making
• Organizing
• Staffing/Obtain resources
• Communicating
• Leading
• motivating, proper culture
• Controlling

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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

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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.

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Entrepreneurship

• Entrepreneurship
• The process by which individualseither on their
  own or inside organizationspursue opportunities
  without regard to the resources they currently
  control.
• Entrepreneurs 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.

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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.