Principles of Management Introduction

Principles of Management Introduction

• Studying management helps identify and develop skills to manage individual and organizational behaviors.
• Management is creatively solving problems and "the art of getting things done through the efforts of other people."
• Principles of management include planning, organizing, leading, and controlling, often called the P-O-L-C framework.
• Managers are needed in all organizational activities, such as budgeting, designing, and selling.
• Management principles affect everyone in an organization, whether a manager or a subordinate.
• Managers don't spend all their time managing but also engage in other tasks related to their roles.
• The principles of management were developed by French theorist Henri Fayol (1841–1925)

Goodwill Industries International

• Goodwill Industries International has advocated for diversity for over 100 years.
• In 1902, in Boston, a missionary started an operation employing immigrants to clean and repair goods for sale, providing education and language training.
• The organization's philosophy was to provide a "hand up".
• Goodwill maintains its mission to respect individuals' dignity by removing barriers to opportunity through work, with 84% of revenue reinvested into employment programs.
• In 2008, Goodwill's employment programs amounted to $3.23 billion.
• Goodwill's diversity programs foster a culture of respect; its retail stores show employees with differences in gender, race, physical ability, sexual orientation, and age.
• Goodwill provides opportunities for those with disabilities, lack of education, or job experience, including those with criminal backgrounds.
• In 2008, more than 172,000 people got jobs at Goodwill, earning $2.3 billion in wages.
• Management and operations are decentralized across its 166 independent community-based Goodwill stores, which are set up as regional, not-for-profit human services organizations.
• Seattle's Goodwill focuses on aiding the city's immigrant community and those lacking education and English skills, while Goodwill Industries of Kentucky has recently invested in software to streamline how managers spend their time
• Goodwill has developed training programs to equip individuals with necessary skills, and in 2008, it provided 1.5 million people with career services.
• Goodwill business practices encompass the values of the triple bottom line of people, planet, and profit.
• At the start of 2010, Goodwill got a $7.3 million grant from the U.S. Department of Labor to prepare individuals for the green industry.
• Oregon's Goodwill Industries partners with the Oregon Department of Environmental Quality’s E-Cycles program to prevent improper electronics disposal.

Defining Managers and Management

• Managers are often perceived based on their position within an organization
• Top managers create the overarching strategy and are stewards to the organization's vision.
• Functional managers oversee the efficiency and effectiveness of specific areas.
• Supervisory/Team managers coordinate subgroups or teams from different parts of the organization.
• Line managers lead functions that directly contribute to the creation of products or services.
• Staff managers lead functions that provide indirect support to the organization's operations.
• Project managers are responsible for the planning, execution, and closing of specific projects
• General managers oversee clearly defined revenue-producing units and are accountable for their unit's performance.

Managerial Work

• Managers ensure activities are completed efficiently with and through other people.
• Managers set and achieve goals using planning, organizing, leading, and controlling.
• Mintzberg identified 10 roles of managers divided into interpersonal, informational, and decisional categories.
• The interpersonal roles involve relationships, consisting of figurehead, leader, and liaison
• All managerial work relies on informational roles, consisting of monitor, disseminator, and spokesperson
• Managers make decisions using informational roles, consisting of entrepreneur, disturbance handler, resource allocator, and negotiator
• Supervisory managers focus more on short-term goals while managers have a broader focus.

Leadership

• Leadership is defined as the social and informal influence used to inspire action in others towards a common goal.
• Leadership involves understanding how to use authority and power appropriately.
• P&G recruits individuals who demonstrate success through influence.
• Google's leaders have built a company around a challenging, fun work environment.

Entrepreneurship

• Entrepreneurship is recognizing opportunities and using resources to implement innovative ideas for new ventures.
• Entrepreneurs convert ideas into action and are catalysts for value creation by identifying and creating new markets.
• Opportunities are problems in search of solutions, with bigger problems often leading to bigger markets.

Strategy

• Organizational strategy involves having a long-term purpose with clear goals, objectives, and a coherent plan of action.
• Good strategy leverages unique resources and capabilities to exploit external opportunities.
• Strategic management involves making choices about what to do, what not to do, and what to stop doing.

Syncrhonizing Leadership, Entrepreneurship and Strategy

• Leadership, entrepreneurship, and strategy answer the questions of "who," "what," and "how" in management.
• Leadership defines who moves the organization forward, entrepreneurship defines the organization's purpose, and strategy ensures the right choices are made.