MGT 3404 Principles of Management Introduction 2025 PDF

Welcome to MGT 3404 Principles of Management MGT 3404 Course Admin Things you need to know to about class requirements and procedures What is MGT 3404?  Principlesof Management is designed to introduce you to the functions of management in today’s organizations  The work we...

Welcome to MGT 3404 Principles of Management MGT 3404 Course Admin Things you need to know to about class requirements and procedures What is MGT 3404?  Principlesof Management is designed to introduce you to the functions of management in today’s organizations  The work we do here will lay the foundations for work you will do in other Management courses and in life. Syllabus and Course Materials  Thecourse syllabus and course related materials can be accessed through Canvas https://canvas.vt.edu/courses/207389 Class Expectations Be on Time Be Prepared to Learn  What You Can Expect of Us  We will do everything we can to help you learn – We will hold regular Zoom office hours and be available for one-on-one meetings – I want to hear your suggests for improving class  We won’t waste your time – Much of what we are going to do in class is not in the book. What Is Management? Management – The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals effectively and efficiently. Managers – The people responsible for supervising the use of an organization’s resources to meet its goals. Resources are organizational assets People (Skills, Energy, Knowledge), Information, Raw materials, Machinery, Financial capital Why Study Management?  Good management directly impacts improvements in the well-being of a society.  Studying management helps prepare people to accomplish managerial activities in their lives and organizations.  Studying management opens a path to a well- paying job and a satisfying career. What is Commerce? The exchange of goods or services. CASTAWAY Photo by Rowan Heuvel on Unsplash Photo by Michael on Unsplash  Barter Theatre https://bartertheatre.com/app/uploads/ 2021/03/barterporterfield-copy-scaled.jpg https://bartertheatre.com/app/uploads/2023/01/ Main_Exterior_Aug2015-1.jpg Value Generation Dynamics Buyers’ Perceived Value Value Generated Sales Price by the Exchange Profit Cost to the Seller Productivity Outputs Inputs Definition – The overall output of goods and services produced divided by the inputs needed to generate that output. Benefits of high productivity – Fosters economic growth and development – Increases individual wages without inflation – Lowers costs and makes firms more competitive Profit Equation P = Q * (P – CV) – CF Where, P is profit Q is quantity sold P is Sales Price CV is Variable Cost CF is Fixed Costs Organizational Performance  Efficiency – A measure of how well or productively resources are used to achieve a goal.  Effectiveness – A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved.  Efficiency, Effectiveness, and Performance in an Organization 1. The exchange of goods and services is: A. Productivity B. Sales C. Commerce D. Efficiency 2. What determines how the value created by an exchange is divided between buyer and seller? A. Buyer’s perceived value B. Price C. Profit D. Cost 3. What is the definition of productivity A. Profit divided by resources used B. Outcomes divided by the resources used to generate those outcomes C. The amount of output that can be generated in any period 4. Which is a depiction of the profit equation? A. π = Q * (P – CV) – CF B. π = CF * (P – CV) – Q C. π = CV * (P – Q) – CF D. π = P * (Q – CV) – CF 5. If you could only be one, would you rather be... A. Efficient B. Effective C. Effective first, then efficient