Muamer Management Basics PDF

Management is the process of planning leading organizing and controlling resources including human financial and material resources to achieve a companies goals effectively and efficiently it involves making decisions, allocating resources, planning activities, setting objectives to be sure that the...

Management is the process of planning leading organizing and controlling resources including human financial and material resources to achieve a companies goals effectively and efficiently it involves making decisions, allocating resources, planning activities, setting objectives to be sure that the organization and team achieves the desired outcome setting a goal and determining the best way to achieve it arranging and organizing tasks to achieve the organizations objectives managing leading and motivating employees to work towards the companies goals Monitoring and controlling : controlling the progress and making adjustments if necessary to ensure the goals are met Institutional: viewed as specific people who occupy positions Functional: actions’ performed by the managers (planning leading organizing controlling) like setting goals allocating emphasized.Focusing on strategic planning,decision making , 2.Middle Management: formal positions, as well CEO, CF0, COO.At this level they require social competence They act as a bridge between Top and lower management,comunicating Reasoning of this is they required specific skills and. Skills required: Social Competence: Communication, emotional intelligence, and relationship management. Method Competence: Problem-solving, decision-making, and analytical skills. Professional Competence: Technical knowledge and expertise. Efficiency vs. Effectiveness: Efficiency: Doing things right (minimizing resources and time). Effectiveness: Doing the right things (achieving goals). Nb: While efficiency emphasizes speed and resource use, effectiveness often leads to greater success, as it ensures the goal is achieved, even if it takes more time or resources Planning Clear Direction: Provides well-defined objectives and guidelines to minimize confusion. Goal Achievement: Ensures clarity and focus, aligning efforts toward shared objectives. Strategic Implementation: Provides a structured approach to achieving goals through actionable plans. Prioritization of Tasks: Ensures that critical tasks are completed first, boosting overall productivity. Effective Time Management: Helps prioritize tasks and allocate time efficiently, minimizing procrastination. Improved Efficiency and Effectiveness: Strikes a balance between achieving goals and optimizing resources and time. Work Optimization: Enhances collaboration and ensures all activities contribute effectively to the overall goal. Different Environmental Analysis Control and Monitoring: Helps track progress, identify deviations, and make necessary adjustments Reduces Uncertainty and Stress: Planning anticipates potential risks and provides solutions, reducing stress. Steps in Planning: 1. Define objectives. 2. Conduct internal and external environmental analyses. 3. Develop strategies and contingency plans. 4. Prioritize tasks and allocate resources. 5. Monitor progress and make adjustments. Levels of Environmental Analysis: 1. Internal: o Resources: Financial, human, physical assets. o Capabilities: Strengths and weaknesses. o Culture: Shared values and norms. 2. External: o Micro (Industry): Customers, competitors, suppliers, regulators. o Macro (PESTEL): ▪ Political: Policies, trade restrictions, stability. ▪ Economic: Inflation, unemployment, GDP trends. ▪ Social: Cultural shifts, demographic changes. ▪ Technological: Innovation rates, automation. ▪ Environmental: Sustainability, climate impact. ▪ Legal: Employment laws, intellectual property. Tools for Planning: PESTEL Analysis: Framework to assess macro-level external factors.  SWOT Analysis: Identifies Strengths, Weaknesses, Opportunities, and Threats. Porter’s Five Forces: Evaluates competition, supplier/buyer power, new entrants, and substitutes. Contingency Planning: Prepares for specific scenarios (e.g., supply chain disruptions). Scenario Planning: Envisions best-case, worst-case, and expected scenarios. Crisis Planning: Focuses on managing severe disruptions (e.g., natural disasters). 1. Competitive Rivalry High: Airline Industry. Low: Utilities 2. Threat of New Entrants High: Technology Startups Low: Automotive Industry 3. Bargaining Power of Suppliers High: Luxury Fashion Low: Fast Food Chains  4. Bargaining Power of Buyers High: Online Retail (e.g., Amazon customers) Low: Oil and Gas (end consumers) 6. Threat of Substitutes High: Public Transport vs. Ride-Sharing Low: Commercial Aircraft Manufacturing Strategy Long-term goals and actions designed to achieve competitive advantage. outlines long- term goals and the actions needed to achieve them, ensuring sustainable success in a competitive environment. aligned set of activities, so every department knows exactly what to do to achieve a certain goal. Characteristics Long-term vision for the company complex concsious planning strong goal orientation Adaptable alternative strategies top management task 1 vision and mission 2. Objectives 3 external internal analysis 4 strategic choice 5 strategy implementation 6 competitive advantage Value chain analysis to analyze the internal environment Level strategy C level strategy: Focuses on directing the whole organization into the right track to make sure they met the long-term goal.Usually ,managed by a CEO, CFO,... B-level strategy : Focuses on competitive stratetigles for specific market or product. Operational planning : Focuses on day to day activities to support the highest strategy ,focusing on short term actions to meet the goal  Corporate-level Strategy Portfolio strategy is a mix of Strategic Business Units SBU or product lines In the same coorporation. The goal of this is to avoid dependance on a specific market or product, reducing business risk * To create synergies beetwen products and brands , so they can support each other, allowing them to work together for greater efficiency and competitive advantage. BCG MATRIX framework use to analyze Strategic Business Units SBU or product lines In the same organization, based on two factors In order to determine where to allocate extra financial resources , where to cash out and divest. The whole purpose of this matrix Is to make Investment decisions on a coorporate level. A tool to analyze product lines or business units based on market growth rate (Y-axis). and relative market share (X-axis) Question marks Stars Dogs Cash Cows High growth, high market share – Invest for growth. Question Marks: High growth, low market share – Decide to invest or divest. Cash Cows: Low growth, high marketshare – Generate steady cash flow. Dogs: Low growth, low market share – Divest or phase out. Business level strategies How a firm competes in a single business zooming in on one business unit in order to win the industry. There are 4 generic strategies: 1.Cost Leadership : The alm is to compete by being the cheapestInthe industry.Broader market range. Example : Large scale like Walmart that & minimize cost to offer lower price. 2.Differentiation: The aim is to offer unique or superior than the competitors. Broad market scope or range. Brands like apple or Tesla that stand out bes of innovation,quality or brand. 3.Focused Cost Leadership : Be the cheapest within a narrow , specific market segment.Focused on a niche market. Discount store focusing on specific demographics. 4.Focused Differentiation: Provide unique product or service to a niche. Market range is narrow. How: Tailor products/services to meet niche customer needs. - Example: Rolls- Royce creates luxury cars for high-income individuals Purpose: These strategies help organizations position themselves in the market, maximize competitive advantage, and achieve profitability Internal Factors 1. Strengths: - Positive attributes and capabilities that give an organization a competitive edge. - Example: Strong brand reputation, skilled workforce, proprietary technology. 2. Weaknesses: - Internal limitations or challenges that hinder performance. - Example: High production costs, poor customer service, lack of innovation. External Factors 1. Opportunities: - External conditions or trends that can be leveraged for growth. - Examples: Emerging markets, technological advancements, and industry deregulation. 2. Threats: - External challenges or risks that could harm the organization. - Example: New competitors, economic downturns, changing regulations operational planning Planning For what you can not plan: unpredicted events or situations that we can't control. Three different approaches we can do in these situations: 1.If then Planning contingency planning : Means preparing for emergencies or step-back by creating "If then Scenarios" 2. Scenario planning : Forecasting to envision possible scenarios based on variables and trends. Its an extension of Contingency planning but broader range. 3.Crisis planning: Focused on handling unexpected and devastating events. ------------------------- 1. Contingency Planning: - Purpose: Prepare for unexpected events or setbacks by having alternative plans in place. - How: Use "if-then" scenarios to anticipate potential disruptions. - Example: A company prepares backup suppliers in case the primary supplier fails. 2. Scenario Planning: - Purpose: Envision multiple future scenarios to adapt strategies accordingly. - How: Forecast various possibilities (best-case, worst-case, moderate- case). - Example: A retailer plans for economic growth, recession, or stable market conditions. 3. Crisis Planning: - Purpose: Manage sudden and severe events that could harm the organization. - How: Develop emergency response protocols and communication plans. - Example: A company creates a plan for handling cyberattacks or natural disasters. organizing Product life cycle How the product develops in the market, since is introduced to the market until its removed. each cycle has its own marketing,financial,management and strategies. It is used by businesses to decide when its approplate to increase advertising, lower prices and expand to new markets. In general to be able to identify which strategies to use in each stage. 4 stages: 1 Introduction: the product is put on sale, sales are very low bes the product is new in the market, great need for advertising to make people aware of the product, there are no many competitors, usually the profit is low strategies for this phase: Advertisment should be done In various channels to reach target group. C collaborations with the right partners should be done. 2.Growth: sales and profit increase, the product has recognition by the customers in the market, the cost related to the product starts to decrease; this leads to competitors bringing cheaper substitutes. strategies for this phase: I product should be distributed more -bes of competitors additional value or features must be added to the product. the target group should be expanded. In order not to loose market share it is necessary not to reduce costs of advertisment, but this time the values of the product should be highlated so it remains dominant in the market. 3.Maturity: competition in the market reaches its peak, competitors compete for market share, weak competitors leave, the price of the product falls due to high competition, sales is slowing down, this stage last longer compare to others. strategies for this phase: company should further intensify its distribution channels. higher versions of the product or similar versions should be created. advertising should focus on the new product family. 4. Decline: sales are decreasing, demand decrease for the product, revenues are falling, competitors for this product are leaving the market Factors: technological event change in costumer behaviour Internal problems. strategies for this phase: Advertising cost should be reduced product sales prices should be reduced. relationship with past loyal costumer should be improved. In some cases,companies may sell that brand to other companies. In some cases adding new value or features to the product can lead to rise again, but in other cases the only way is to remove the product from the market. Why do organizations exist ? Advantages and Implications : 1.Labor division and specialization: Reduction of complexity Adequate utilization of skills Reduction of costs learning 2.Exchange and coordination : * Dependency on third parties Resource consumption Exchange of service Coordination problems diminish overall value creation 3. Deficit of Labor division - limited learning effect / Reduced professional experience overspecialization,unqualifed experience n-lateral tasks 4. Deficits of exchange and coordination Bounded rationality Strategic Decisions 1. Differentiation vs. Integration: - Balancing specialized tasks with the need for coordination among departments. 2. Centralization vs. Decentralization: - Centralized decision-making ensures control, while decentralization promotes flexibility and autonomy. 3. Standardization vs. Adaptation: - Standardization ensures consistency, while adaptation allows flexibility to respond to changes. Organization Culture What is organization culture? Joint assumptions : about how we perceive the environment, about relationship, about values sustainability, social behaviour of the company and about the way of working. This influences how people act It's important to understand that this has to do with adapting your company to what the industry requires. 1. Tough Guy, Macho Culture: - Characteristics: High risk, rapid feedback. - Example: Entertainment or sports industries. 2. Work Hard, Play Hard Culture: - Characteristics: Focus on quick action, rewards teamwork, low risk. - Example: Sales-oriented businesses like retail or hospitality. 3. Bet Your Company Culture: - Characteristics: High risk, slow feedback. - Example: Aerospace or pharmaceutical industries with long project timelines. 4. Process Culture: - Characteristics: Low risk, slow feedback, emphasizes consistency and procedures. - Example: Government or banking institutions. Strenghts and Risks ofStrong Organizational Cultures Advantages : - low need for regulations reduces the need ForFormal rules. -Faster decision making clear understanding of "how things work" simplifies processes. - Motivation and team spirit – Stability During environmental or market challenges DISadvantages -Tendency to separation Isolate the company from different organization cultures - Lack of Flexibility - Emotional Barriers - collective avoidance - Rigidity Types of Change 1. Structure: Changes in labor division, work specialization, chain of command, or job design. - Example: Flattening hierarchies to increase efficiency. 2. Technology: Adopting new work processes, methods, or equipment. - Example: Automating production lines. 3. People: Modifying attitudes, behaviors, or expectations of employees. - Example: Training programs to build new skills. Internal Factors: New strategies. Changes in workforce composition.Employee attitudes or performance issues. External Factors: Market dynamics, regulatory changes, economic shifts, or technological advancements Resistance to Change Causes: Fear of the unknown, loss of control, organizational inertia, or lack of trust. How to Overcome: - Effective communication. - Employee involvement. - Clear benefits and training. Unfreeze: Prepare the organization by challenging the status quo. Change: Implement the desired transformation. Refreeze: Reinforce the change to make it sustainable. Team Development Forming: Team members meet, establish roles, and set goals. Focus: Building relationships and understanding the task. Storming: Conflicts arise as members assert opinions and roles. Focus: Resolving disagreements to build trust. Norming: Team develops cohesion, establishes norms, and works collaboratively. Focus: Cooperation and alignment on objectives. Performing: Team operates effectively to achieve goals. Focus: High productivity and problem-solving. Adjourning: Team disbands after task completion. Focus: Reflecting on achievements and transitioning What Influences Individual Motivation · Motivation Gains: Social facilitation, kohler effect working harder in groups ·Motivation losses: Social loafing reduced effort in groups , gimpel effect over reliance on others Group Effects: · Polarization: group opinions becoming extreme · groupthink : Desire for harmony leading to poor decisions Concentrated group actions : Unified group behavior Conflict Management 1. Types of Conflict: - Task: Can be functional, focused on work-related goals. - Process: Disputes over how work should be done. - Relationship: Dysfunctional, stemming from personal issues. 2. Measures: - Emphasize common goals. - Use job rotation or increase direct contact to build understanding. 3. Methods - Moderation, mediation, arbitration, or authority intervention leadership Definition: Influencing others to achieve goals. Five Sources of Power: 1. Legitimate: Authority from position. 2. Reward/Coercive: Ability to give rewards or punishments. 3. Resource: Control over resources. 4. Referent: Influence from respect/admiration. 5. Expert: Influence from knowledge/skills. Transactional vs. Transformational Leadership Transactional Leadership: Focus on clear goals, motivation through rewards punishments. very structure Transformational Leadership : Focus on vision,inspiration through charisma and mutual learning. Human Resources (HR) refers to the department or function within an organization that manages its people-related processes. It focuses on recruiting, training, retaining, and ensuring the well-being of employees while aligning their contributions with organizational goals. HR (Human Resources) Management Scope - Recruiting, training, performance appraisal, compensation, labor relations, health, and safety. Personnel Planning 1. Strategies: Align workforce supply and demand. 2. Recruiting Channels: - Internal: Databases, employee referrals. – External: Job fairs, employment agencies, events. 3 Alternatives: Overtime, temporary employees, outsourcing Performance management 1. SMART Goals: 2. Appraisal Methods: - Focus on traits, behaviors, competencies, and goal achievement. 3. Biases in Appraisal: - Halo/Horn effects, recent behavior bias, personal bias. - Halo effect: Overlooks areas needing improvement due to one strong positive trait. – Horn effect: Ignores strengths because of one negative trait. 4. Evaluators : - 360° Feedback: Inputs from superiors, peers, subordinates, and external sources