MGT. 101 Lessons 3-4.docx

MGT. 101 -- BUSINESS FUNCTION 1 WEEK 2 Topics: Ten Commandments of Human Relations 1. Speak to people 2. Smile at people 3. Call the person by his/her name 4. Be friendly and helpful 5. Be cordial 6. Be genuinely interested in people 7. Be generous with praise and cautions with crit...

MGT. 101 -- BUSINESS FUNCTION 1 WEEK 2 Topics: Ten Commandments of Human Relations 1. Speak to people 2. Smile at people 3. Call the person by his/her name 4. Be friendly and helpful 5. Be cordial 6. Be genuinely interested in people 7. Be generous with praise and cautions with criticism 8. Be considerate with the feelings of others 9. Be thoughtful for the opinion of others 10. Be alert and give service Code of Ethics in Business 1. Follow the golden rule 2. Respect the human personality 3. No body is perfect 4. All things change 5. Sincerity is a virtue 6. Control one\`s temper 1. Pakikipagkapwa tao 2. Bahala na 3. Pakikipagsapalaran 4. Gaya gaya 5. Utang na loob 6. Kasipagan 7. Pagtitipid 8. Pagtitiis 9. Pagtitimpi 10. Katapatan Small Business Associations in the Philippines 1. Artificial Plant Manufacturing Association of the Philippines 2. Association of Footwear Industries of the Philippines 3. Association of Shrimp Producers and Exporters 4. Ceramics Association of the Philippines 5. Chamber of Furniture Industries of the Philippines 6. Christmas Decors Producers and Exporters Association 7. Coconut Oil Refiners Association 8. Coffee Exporters Association of the Philippines 9. Board of Investments 10. Development Bank of the Philippines 11. Department of Science and Technology 12. Department of Agriculture 13. University of the Philippines Institutes for Small Scale Industries 14. National Manpower and Youth Council 15. Department of Local Government 16. Department of Environment and Natural Resources 17. Government Resources Institution for Entrepreneurs Department of Trade and Industry 18. Technology and Livelihood Resource Center Management Categories 1. Management as a Process a. Management is a social process b. Management is an integrating process c. Management is a continuous process 2. Management as an Activity d. Informational activities e. Decisional activities f. Inter-personal activities 3. Management as a Discipline 4. Management as a Group 3 types of managers g. Patrimonial/family manager h. Professional managers i. Political managers/civil servants 5. Management as a Science j. Universally acceptance principles k. Experimentation and observation l. Cause and effect relationship m. Test of validity and predictability 6. Management as an Art n. Practical knowledge o. Personal skill p. Creativity q. Perfection through practice r. Goal oriented 7. Management as a Profession s. Specialized knowledge t. Formal education and training u. Social obligations v. Code of conduct w. Representative association Features of Management 1. Management is Goal oriented 2. Management integrates human, physical and financial resources 3. Management is continuous 4. Management is all pervasive 5. Management is a group activity Levels of Management 1. Top level/Administrative level Roles a. Top management lays down the objectives and broad policies of the enterprise b. It issues necessary instructions for preparation n of department budgets, procedures, schedules, etc. c. It prepares strategic plans and policies for the enterprise d. It appoints the executive for middle level, departmental managers. e. It controls and coordinates the activities of all the departments f. It is also responsible for maintaining a contact with the outside world. g. It provides guidance and direction h. The top management is also responsible towards the shareholders for the performance of the enterprise. 2. Middle level/Executory a. They execute the plans of the organization in accordance with the policies and directives of the top management b. They make plans for the sub-units of the organization c. They participate in employment and training of lower level management d. They interpret and explain policies from top level management to lower level e. They are responsible for coordinating the activities within the division or department f. It also sends important reports and other important data to top level management g. They evaluate performance of junior managers h. They are also responsible for inspiring lower level managers towards better performance. 3. Low level/Supervisory/Operative/First line managers a. Assigning of jobs and tasks to various workers b. They guide and instruct workers for day to day activities c. They are responsible for the quality as well as quantity of production d. They are also entrusted with the responsibility of maintaining good relation in the organization e. They communicate workers problems, suggestions, and recommendatory appeals, etc. to the higher level and higher level goals and objectives to the workers. f. They help to solve the grievances of the workers g. They supervise and guide the sub-ordinates h. They are responsible for providing training to the workers i. They arrange necessary materials, machines, tools, etc, for getting the things done j. They prepare periodical reports about the performance of the workers k. They ensure discipline in the enterprise l. They motivate workers m. They are the image builders of the enterprise because they are in direct contact with the workers. Main Objectives of Management 1. Getting maximum results with minimum efforts 2. Increasing the efficiency of factors of production 3. Maximum prosperity for employer and employees 4. Human betterment and social justice Importance of Management 1. It helps in achieving group goals 2. Optimum utilization of resources 3. Reduces costs 4. Establishes sound organization 5. Establishes equilibrium THE PRINCIPLES OF MANAGEMENT 1. Division of work 2. Authority and responsibility 3. Discipline 4. Unity of command 5. Unity of direction 6. Subordination of individual interest 7. Remuneration 8. The degree of centralization 9. Scalar chain 10. Order 11. Equity 12. Stability of tenure 13. Initiative 14. Esprit de corps Main importance of the Principles of Management 1. Improves understanding 2. Direction for training of managers 3. Role of management 4. Guide to research in management 5. Nature of management 6. Continuous process 7. Universal in nature 8. Multidisciplinary 9. Management is a group activity 10. Management is goal oriented 11. Dynamic 12. System of authority 13. Management is an art 14. Management is science Features of Principles of Management 1. Principles of management are universal 2. Principles of management are flexible 3. Principles of management have a cause and effect relationship 4. Principles of management -- aims at influencing human behavior 5. Principles of management are of equal importance FUNCTIONS OF MANAGEMENT PLANNING What is plan? Is a method for doing or making something and consisting of a good and a course of action. Plans should specify, at a minimum, what you will do, how you will do it, and by when you\`ll get it done. GOALS -- is a specific result to be achieved, the end result of a plan, critically appraising the present position of an organization, setting objectives. OBJECTIVES -- is a specific result toward which efforts is directed, and determining the course of action to follow and achieve objectives set are of themselves positive forces toward good management. PLANNING: is the process of setting the objectives to be accomplished by an organization during a future time period and deciding on the methods of reaching them. In planning, the manager attempts to bridge the gap between where the organization is at the moment and where he want it to go. Planning is a never-ending activity. The manager must examine plans regularly and if necessary modify them in view of new situations and variables. Planning is just as important when things are going well as when current difficulties and problems abound. IMPORTANCE OF PLANNING: People plan because they want their actions to be both effective and efficient. EFFECTIVE -- if it achieves its objectives EFFICIENT -- if it is undertaken with the expenditures of the least amount of resources. NATURE OF PLANNING: 1. Contribution to purpose and objectives 2. Planning as the first basic function 3. Planning as a function of all managers 4. Planning for efficient organization PROGRAM -- it is the actual course of action designed to carry out the established objective. To improve the quality of a product, a company may institute a quality awareness program. POLICIES -- These are basic guidelines for action. They indicated what is permitted and what is not permitted. Promoting people from within can be a personnel policy of a company. PROCEDURES -- step by step fashion the methods by and through which policies are achieved. RULES -- rules require specific and definite actions for a given situation. BUDGET -- it is an estimate of income and expenditures for a future period. The use of budget enables executives to perform their management functions more effectively since budget provides them with the proper guidance in matters of disbursement. PHILOSOPHY -- the values and beliefs an organization holds as the guiding light. These are usually passed on by the founder of the organization. STRATEGY -- it is the method of shaping a company\`s future and involves determining the long run direction of the organization. BASIC STEPS IN BUSINESS PLANNING 1. Define the business idea 2. Establish goals and objectives 3. Evaluate the ideas, goals, and objectives 4. Forecast cash needs 5. Identify sources of funds 6. Write a business plan PLANNING PROCESS: 1. Identification of Opportunities and Threats 2. Evaluation of present situation 3. Setting goals and objectives 4. Determining planning premises 5. Evaluating alternatives 6. Programming 7. Budget Preparation A. Plans classified according to time or duration: 1. Long range planning 2. Intermediate range planning 3. Short range planning B. Plans classified according to business function or use: 1. Sales plan 2. Production plan 3. Personnel plan 4. Finance plan 5. All plans concerning any other major function. OTHER TYPES OF PLANS 1. Standing plans 2. Single use plan 3. Long range plans 4. Intermediate plans 5. Short range plans 6. Marketing plans 7. Production plans 8. Financial plans 9. Manpower plans 10. Strategic plans 11. Tactical plans MAJOR KINDS OF PLANNING 1. Strategic planning 2. Tactical planning 3. Operational planning Types: 1. Single use plan a. Programs b. Project c. Scheduling d. Budget e. Forecasting 2. Standing plans Types: a. Policies b. Rules c. Procedures 3. On going plan PLANNING AT DIFFERENT LEVELS IN THE FIRM 1. Top level managers 2. Middle level managers 3. First level managers FACTORS AFFECTING PLANNING 1. Conditions 2. Time factor 3. Resource available 4. Skills and attitudes of management 5. Political, social and environmental conditions 6. Physical facilities 7. Collection and analysis of data 1. Lack of real commitment in planning 2. Interchanging planning studies with plans 3. Failure to develop and implement sound strategies 4. Lack of meaningful objectives and goals 5. Tendency to underestimate the importance of planning premises 6. Failure to see the scope of plans 7. Failure to see planning as a rational process 8. Too much reliance on experience 9. Failure to use the principle of limiting factor 10. Lack of top management support 11. Lack of clear delegation 12. Lack of adequate control techniques and information PLANNING TECHNIQUES AND TOOLS 1. Break even analysis 2. Forecasting models 3. Linear programming 4. Simulation models 5. Management by objectives DECISION MAKING Decision making versus problem solving Decision making -- is the process of choosing from among various alternatives Problem -- is any deviation from some standard or desired level of performance. Problem solving -- is the process of determining the appropriate responses or actions necessary to alleviate a problem. DECISION MAKING PROCESS 1. Set objectives 2. Identify constraints 3. Identify alternatives 4. Gather appropriate information 5. Evaluate alternatives 6. Choose the most acceptable alternatives BARRIERS TO EFFECTIVE DECISION MAKING 1. Complacency 2. Defensive avoidance 3. Panic 4. Deciding to decide