STRAMA REVIEWER PDF - Management Principles

STRAMA REVIEWER ▪ Liaison III. Decisional Roles What is Management? ▪ Entrepreneur...

STRAMA REVIEWER ▪ Liaison III. Decisional Roles What is Management? ▪ Entrepreneur ▪ Disturbance handler The process of achieving goals and ▪ Resource allocator objectives efficiently and effectively ▪ Negotiator through with people. Is the art of getting work done Basic Principles of Management through others. by Henri Fayol o Division of work Manager - someone who coordinates and o Authority and Responsibility oversees the work of other people so that o Unity of command organizational goals can be accomplished. o Discipline o Unity of direction 3 LEVELS OF MANAGEMENT o Subordination of individual inter interest over general interest o Remuneration o Centralization o Scalar chain Top Management o Order Middle Management o Equity o Stability of tenure Lower Management o Initiative Non-managerial employees o Esprit de Corps 3 Management Skills BUSINESS ENVIRONMENT 1. Technical skills The combination of internal and external ✓ As the name of these skills tells us, factors that influence a company's they give the manager knowledge operating situation. and ability to use different techniques to achieve what they INTERNAL EXTERNAL want to achieve. Management Politico – Legal 2. Conceptual skills Marketing Economical ✓ Conceptual skills present knowledge Finance Socio - Cultural or ability of a manager for more abstract thinking. Production and Technological 3. Human skills Operation ✓ Human skills present a manager’s Human Resources Natural knowledge and ability to work with people. MANAGERIAL ROLES I. Information Roles ▪ Monitor ▪ Disseminator ▪ Spokesperson II. Interpersonal Roles ▪ Figurehead ▪ Leader  TYPES OF PLANS ▪ Short-term plans − plans within less than one year ▪ Intermediate plans − period between 1-5 years ▪ Long-term plans – plans exceeding five years ▪ Directional Plans − plans that are bendable and that set out universal guidelines. FUNCTIONS OF MANAGEMENT ▪ Specific Plans − plans that are visibly defined and leave no room for PLANNING explanation. ORGANIZING ▪ Single-use plans −one time plan STAFFING specifically designed to meet the needs of an exceptional situation. DIRECTING ▪ Standing plans − ongoing plans that CONTROLLING provide direction for activities performed over and over again. PLANNING o It involves formulation of one or more detailed plans to achieve optimum balance of needs or demands with available resources. o It is systematic development of action programs aimed at reaching agreed upon business objectives by the process analyzing. evaluating and selecting among the opportunities which are foreseen. o It involves anticipating the future and DECISION MAKING consciously Choosing the appropriate course of action among alternatives to generate a desired outcome. PLANNING TECHNIQUES Decision making is the process of Environmental Scanning − examines making choices by identifying a the large amount of information to decision, gathering information, and predict and infer changes in the assessing alternative resolutions. environment. Forecasting − prediction of outcomes S - SPECIFIC ▪ Quantitative Forecasting M - MEASURABLE ▪ Qualitative Forecasting A - AGREED "Work Benchmarking − search for the best R - REALISTIC SMARTER, not practices among the competitors or T – TIME-BOUND HARDER." non-competitors that lead to their E - ETHICAL superior performance. R – RECORDED ORGANIZING requirements necessary to perform those activities. o The deployment of organizational ✓ helps the employer in recruitment and resources to achieve strategic goals selection, performance management, o Reflects deployment of resources choosing compensation and benefits, o Shows division of labor etc. It helps the employees to have a o Formal lines of authority and clear picture of what is actually required mechanisms is developed of them. ORGANIZATION Social unit of people that is structure and managed to meet a need or to pursue collective goal. NATURE OF ORGANIZING  Group of Persons  Common Objectives  Division of Work  Cooperative Efforts  Communication  Central Authority  Rules and Regulations Recruitment STAFFING ✓ the overall process of identifying, attracting, screening, shortlisting, and o Refers to the process of recruiting, interviewing candidates for jobs within placing, training and developing an organization. personnel. o Involves hiring personnel for MAJOR STEPS IN RECRUITMENT: carrying out various activities of 1. Planning and Approval the organization. 2. Position announcement/Job Posting 3. Recruitment and the strategies ELEMENTS OF STAFFING  Manpower planning INTERNAL HIRING  Job analysis EXTERNAL HIRING  Recruitment and selection  Training and development  Performance Appraisal Selection ✓ the process of choosing the most Manpower Planning suitable candidates from those who ✓ a process that identifies current and apply for the job. It is a process of future human resources needs for an offering jobs to desired candidates. organization to achieve its goals. STEPS IN THE SELCTION PROCESS 1. Psychological Testing a. IQ Test-mental ability Job Analysis b. Aptitude Test-measuring specific abilities ✓ procedures to identify the content of a c. Personality Test - behavior job in terms of the activities it involves in 2. Screen/Interview and Background Check addition to the attributes or a. Panel Job Interview b. Behavioral/Experienced-Based Interview Leadership vs. Management 3. Job Offer MANAGEMENT POWER: Training and Development − comes from organizational structure, it TRAINING − process or method of providing promotes stability, order and problem programs that may modify, change, solving within the structure. increase and improve and employee's level LEADERSHIP POWER: of performance. − comes from personal sources, promotes DEVELOPMENT − method that allows vision, creativity and change. employees grow by providing them 3 Representative distinctions between opportunities to take on bigger leadership and management: responsibilities in preparation for the future's ✓ Management scientific and more formal more challenging tasks. than leadership ✓ T&D Involves Improving the effectiveness ✓ Leadership can envision what the of organizations and the individuals and organization can become teams within them. ✓ Managing focuses on continuous improvement of the current situation, Performance Appraisal while leadership is a force for change ✓ Regular review of an employee's job that requires a group to innovate and performance and overall contribution to stay away from the routine. a company. ✓ process of evaluating and documenting Power and Authority an employee's performance with a view to enhancing work quality, output and efficiency LEADING ✓ also called directing or motivating ✓ refers to encouraging people to work towards the attainment of the company's goals and objectives "Leaders are born not made." Leadership ✓ Is the power to lead other people. ✓ Is the power or skill to motivate, influence and helps build confidence CONTROLLING and support among the employees who need to achieve the goals of the o involves evaluating the actual organization. performance, compare it with ✓ A leader is the one who stood up in the standards and take the times pf problems and is. able to be action needed. resourceful in thinking and acting o Verifying whether everything creatively in difficult situations. accus in conformity with the plan adopted, the Instructions issued and the principles established.  CONTROLLING AS A MANAGEMENT FUNCTION − A process of monitoring performance and taking action to ensure desired results. − It sees to it that the right things happen, in the right ways, and at the right time. − Done well, it ensures that the overall directions of individuals and groups are consistent with short- and long-range plans of the organization. − It helps ensure that objectives and accomplishments are consistent with one another throughout an organization. − It helps maintain compliance with essential organizational rules and policies. Three types of control on the basis of time action