Week 1: Basic Concepts in Business, Management, and Organization PDF

MANAGEMENT & ORGANIZATION 07.11.2024 ASSOC. PROF. DR. G.NİLAY YÜCENUR İSTANBUL BEYKENT UNIVERSTIY INDUSTRIAL ENGINEERING (EN)  Course topics 2 Week 1 Basic...

MANAGEMENT & ORGANIZATION 07.11.2024 ASSOC. PROF. DR. G.NİLAY YÜCENUR İSTANBUL BEYKENT UNIVERSTIY INDUSTRIAL ENGINEERING (EN)  Course topics 2 Week 1 Basic Concepts Related to Business, Management, and Organization Week 2 An Overview of Management Approaches and Types of Management, Pre-Scientific Management Period Week 3 Classical Management and Contributors Week 4 Neo-Classical Management and Contributors Week 5 Contemporary Approaches in Management / Systems Approach, Contingency Approach, Z Theory Week 6 Contemporary Approaches in Management / Excellence Approaches, Total Quality Management Approach, Time Management Week 7 Management Functions / Planning, Organizing, Directing Week 8 Midterm Week Week 9 Midterm Week Week 10 Management Functions / Coordination, Interpersonal Relations and Communication, Control Week 11 Manager and Leadership, Managerial Education and Methods Applicable in Managerial Education, Decision- Making Process, Participation in Management in Organizations Week 12 Organizations, Basic Criteria Used in Departmentalization, Job and Position Descriptions in Organizations Week 13 New Organizational Models and Techniques, Downsizing, Network-Type Organizations in Businesses, Learning Organizations, Lean Organizations, Cluster-Type Organizations, Committee Management and Committee Organizations Week 14 Matrix Structuring in Businesses and Its Challenges, Coordination between Units Comprising the Organizational Structure, Examining Managerial Authority in Organizations, Improving Superior-Subordinate Relationships, Discipline in Organizations and Considerations in Maintaining Discipline, Distribution of Authority and Responsibility in Management, Conflict Resolution Week 15 Developments in Information Technology and Electronic Business Today, The Impact of Globalization on Management and Management in the 21st Century  3 BUSINESS, MANAGEMENT, and ORGANIZATION Basic Concepts Related to Business, Management, and Organization  4 Concepts Related to Business, Management, and Organization  Definition, Types, and Objectives of Business  Business Ethics and Social Responsibility  Definition of Management  Definition of Organization  The Relationship Between Management and Organization  Concepts of Manager, Entrepreneur, and Leader  Concepts Related to Business and 5 Management Definition of Business A business is an economic, social, and technical organization that consciously and systematically combines production factors to generate a certain level of profit and create services, producing and/or marketing goods and services in accordance with the desires and needs of consumers. Concepts Related to Business and 6 Management Types of Businesses (1/5) Types of Businesses According to Ownership Structure  Sole Proprietorship (Individual Enterprise)  Businesses established and managed by a single person.  Partnership (General Partnership)  Businesses established by two or more people.  Limited Company  A type of business established by one or more individuals, where the partners' liabilities are limited to their capital shares.  Joint Stock Company  Businesses whose capital is divided into shares, and the shareholders are only responsible for the capital shares they have committed to. Concepts Related to Business and 7 Management Types of Businesses (2/5) Types of Businesses According to Field of Activity  Manufacturing Businesses:  Businesses that produce products by processing raw materials (Industry and manufacturing, etc.).  Service Businesses:  Businesses that do not produce tangible products but provide services to customers (Hotels, banks, educational institutions, etc.).  Trade Businesses:  Businesses that engage in the buying and selling of products without manufacturing.  Agricultural and Livestock Businesses:  Businesses that carry out agricultural production and livestock activities. Concepts Related to Business and 8 Management Types of Businesses (3/5) Types of Businesses According to Size  Small Businesses:  Businesses that generally operate with small teams of a few people and serve local markets.  Medium-Sized Businesses:  Businesses that are larger than small businesses and typically operate regionally.  Large Businesses:  Businesses that predominantly operate in national and international markets, possessing significant capital and workforce. Concepts Related to Business and 9 Management Types of Businesses (4/5) Types of Businesses According to Management and Organizational Structure  Businesses with a Centralized Structure:  Businesses where decisions are made by a central authority.  Decentralized Businesses:  Businesses where decision-making authority is distributed among managers at different levels. Concepts Related to Business and 10 Management Types of Businesses (5/5) Public and Private Businesses  Public Enterprises:  Businesses owned and managed by the state.  Private Enterprises:  Businesses established and managed by private individuals or legal entities.  Concepts Related to Business and 11 Management Characteristics a Business Should Have  Quality awareness  Service awareness  Greater responsiveness to environmental changes  Ability to change quickly  Ability to produce different products compared to competitors  Ability to create market gaps  Having an organization with fewer hierarchical levels  Housing highly educated and flexible individuals  Ability to produce high value-added products  12 Ability to produce high value- added products  You got tired of working life and decided to devote yourself to farming.  You chose wheat as the easiest crop to grow. You planted a wheat field using heirloom seeds and harvested it.  Then, you ground the wheat into flour at the mill and started using it. Oh my God, what a wonderful flour this is!  You stop at using it in cakes and cookies; you started baking bread. Anyone who tastes your bread wants to eat it again, and suddenly, a brilliant idea comes to your mind: selling the bread you make.  Your business is going great; on one hand, you are growing wheat, and on the other, you are selling the bread you make from the wheat you grow.  13 Ability to produce high value- added products  While growing wheat, you gradually started cultivating fruits, greens, tomatoes, and peppers, and began selling these products to big cities as well.  Then, instead of always shipping them out, you thought, why not let people come to the farm and shop here? So, you started offering breakfast made from the products you grew.  Everyone who came for breakfast wanted to spend more time at the farm and even stay overnight, so you opened a small accommodation with a few rooms next to your restaurant.  And thus, the journey that began with growing wheat led you to a facility where you engage in agritourism. Here is the value-added production process that begins with a single grain of wheat. Concepts Related to Business and 14 Management The Objectives of a Business  Profitability  Productivity  Economic Efficiency  15 The Objectives of a Business Profitability Profitability expresses a business's ability to generate income and sustain its profits over time.  Why is Profitability Important?  How Can Profitability be Increased?  16 The Objectives of a Business Productivity Productivity refers to the amount of output obtained using a specific resource (time, labor, materials, etc.).  How is Productivity Measured?  Why is Productivity Important?  17 The Objectives of a Business Economic Efficiency Economic Efficiency refers to the use of resources in a way that provides the highest benefit at the lowest cost.  How is Economic Efficiency Achieved?  Why is Economic Efficiency Important? Concepts Related to Business and 18 Management Measuring Business Performance According to Lord Kelvin, the great 19th-century British physicist: You cannot manage and improve what you do not measure  Concepts Related to Business and 19 Management Business Ethics Business ethics is the set of moral principles and rules that businesses and employees must adhere to while conducting business.  Fundamental Principles of Business Ethics:  Honesty  Fairness  Confidentiality  Compliance with Laws  Social Responsibility  Why is Business Ethics Important?  Concepts Related to Business and 20 Management Business Morality In general, business morality consists of work ethics, professional ethics, and managerial ethics.  Work Ethics:  Personal attitudes and behaviors developed towards work.  Professional Ethics:  Principles that members of a profession must adhere to.  Managerial Ethics:  Represents the corporate or organizational morality of the business.  Concepts Related to Business and 21 Management Social Responsibility Social responsibility is the practice of individuals and businesses acting in a sensitive and responsible manner towards society and the environment.  Types of Social Responsibility:  Environmental Responsibility  Social Responsibility  Economic Responsibility  Why is Social Responsibility Important?  What are Examples of Social Responsibility?  22 Concepts Related to Business and Management The Social Responsibility Pyramid of Businesses Human Responsibility Ethics Responsibility Legal Responsibility Economic Responsibility Concepts Related to Business and 23 Management Definition of Management Management is the process of planning, organizing, directing, and controlling human, financial, informational, and other resources to achieve the goals of an organization or business.  Why is Management Important?  Management Models:  Classical Management:  A management style characterized by a hierarchical structure and strict rules.  Modern Management:  A management style that adopts flexible, employee- centered, and innovative approaches.  Concepts Related to Business and 24 Management Scientific Perspective on Management  According to economists, nature is one of the factors of production, along with labor and capital.  According to those interested in management science, management is a system of authority that shows the relationship between the manager and the managed.  According to sociologists, management is a class and prestige system. The common point is that management achieves certain goals through the efforts of others. Concepts Related to Business and 25 Management The Concept of Management If management achieves certain goals through the efforts of others, is management a SCIENCE or an ART?  Concepts Related to Business and 26 Management The Concept of Management Management is the oldest of the arts and the newest of the sciences.  The art of management is an approach that deals with human resources.  The science of management, on the other hand, occupies a position at the intersection of various fields of study, ranging from economics to law, utilizing the methods of these disciplines in an interdisciplinary approach.  27 Concepts Related to Business and Management Characteristics of the Management Process 1. It is aimed at achieving one or more objectives. 2. It requires the authority to freely use certain human and material resources. 3. For management to exist, there must be at least one manager and one managed person/thing. 4. Management necessitates division of labor and specialization, ensuring that instead of everyone doing everything, each person performs tasks they can do best based on their knowledge, skills, and experience. 5. Management requires the economic and careful use of time. Concepts Related to Business and 28 Management Definition of Organization Organization is the structuring and arrangement of people, materials, and other resources to achieve specific goals.  Why is Organization Important?  What is the Relationship Between Organization and Management? Concepts Related to Business and Management 29 The Relationship Between Management and Organization  Complementarity  Resource Management  Goal Setting  Communication and Coordination Concepts Related to Business and Management 30 The Relationship Between Management and Organization  Increase in Productivity  Rapid Decision-Making  Alignment and Adaptation  31 Concepts Related to Business and Management The most important elements of management: Organization People Manager  32 Concepts Related to Business and Management Fundamental Definitions Related to the Manager Who are the following individuals? Manager Entrepreneur Leader Concepts Related to Business and 33 Management Manager A person who manages people, resources, and processes to ensure that an organization achieves its goals.  Basic Responsibilities of a Manager:  Planning  Organization  Direction  Control Concepts Related to Business and 34 Management Characteristics of a Manager  Leadership Ability  Communication Skills  Problem Solving  Strategic Thinking Why is Manager Important? Concepts Related to Business and 35 Management Entrepreneur An entrepreneur is a person who develops innovative ideas, evaluates opportunities, and creates new business opportunities by taking risks.  Responsibilities of an Entrepreneur:  Opportunity Analysis  Business Plan Preparation  Financial Management  Networking Concepts Related to Business and 36 Management Characteristics of an Entrepreneur  Innovation  Risk-Taking  Decisiveness  Vision Why is Entrepreneur Important? Concepts Related to Business and 37 Management Leader A leader is a person who guides, motivates, and influences people within a group or organization to achieve goals.  Responsibilities of a Leader:  Goal Setting  Providing Motivation  Team Building  Performance Evaluation Concepts Related to Business and 38 Management Characteristics of a Leader  Vision  Communication Skills  Empathy  Decisiveness Why is Leader Important? Concepts Related to Business and Management 39 The Fundamental Difference Between a Leader and a Manager When getting work done by others: A manager uses the legal authority granted to them. A leader uses their power derived from personal qualities. Concepts Related to Business and 40 Management Managerial Skills Managers at different levels of the organization should possess different qualities. Concepts Related to Business and Management 41 Distribution of Skills According to Organizational Levels 100 Distribution of Necessary Skills Conceptual skill Human skill 50 Technical skill Lower Middle Upper  42 Next week… We will continue with Management Approaches...  43 References  R.K. Sharma, S.K. Gupta, R. Sharma (2019), Business Organisation Management, Kalyani Publishers,  LLC, L.A. Allen, K. Davis (2013), Management and Organization, Literary Licensing  E. Eren (2022), Yönetim ve Organizasyon, Çağdaş ve Küresel Yaklaşımlar, Beta Basım Yayın, 14. Baskı.  Jos Marcus & Nick van Dam, Handbook Organisation ans Management: A Practical Approach, Routledge-Noordhoff International Editions. 2019  Edilynda Enriquez, Organization and Management, JFS Publishing Services. 2016  George Macdoland, Organization and Management: Business Organization; Business Management, Classic reprint series, Forgetten boks, Lee Galloway. 2012  Fatma Atıgan, Yönetim ve Organizasyon. 2017  Prof.Dr. İsmail Efil, İşletmelerde Yönetim ve Organizasyon. 2013  Tamer Koçel, İşletme Yöneticiliği. 2020  Internet resources