BBA Principles of MGMT.pdf

 WELCOME WHAT IS BUSINESS ACUMEN AND WHY IS IT IMPORTANT?  SETTING THE CONTEXT WHAT IS BUSINESS ACUMEN AND WHY IS IT IMPORTANT?  SHARPENING YOUR BUSINESS ACUMEN WHAT IS BUSINESS ACUMEN? IT’S AN UNDERSTANDING OF THE BIG PICTURE OF HOW ORGANIZATIONS OPERATE AND SUCCEED. ...

 WELCOME WHAT IS BUSINESS ACUMEN AND WHY IS IT IMPORTANT?  SETTING THE CONTEXT WHAT IS BUSINESS ACUMEN AND WHY IS IT IMPORTANT?  SHARPENING YOUR BUSINESS ACUMEN WHAT IS BUSINESS ACUMEN? IT’S AN UNDERSTANDING OF THE BIG PICTURE OF HOW ORGANIZATIONS OPERATE AND SUCCEED.  What is business acumen? Has this ever happened to you? You’re in a meeting where people are discussing your organization’s financial performance, and you’re struggling to understand “the numbers.” You’re frustrated that a project you’re passionate about isn’t getting support from decision makers because it “doesn’t fit the company’s strategy.” You’re trying—and failing—to explain to a friend what your organization actually does.  Business acumen If any of these scenarios feel familiar to you, you’re not alone. Many managers have strong job-related skills with only a basic understanding of their business and how it makes money. But having sharp business sense isn’t just for top leaders and finance executives. Everyone can and should develop business acumen—an understanding of the big picture of how organizations operate and succeed. Probable interpretations A The majority would say yes, unemployment is clearly dropping. And you would be right if this was your answer. B A minority of readers may realize that many workers probably left Elkhart over the last few years since the depression. This normally happens in regions where job opportunities decrease. The data does not give us this information, but it is reasonable to assume this.  Business acumen So, what is business acumen? In a nutshell, when you have business acumen, you understand: How your organization serves customers, makes money, invests capital, and drives growth. How your organization gets the resources it needs, creates the products or services it offers, and delivers them to customers. What your organization’s financial big picture looks like, and how you can contribute to its financial health. What’s happening in your organization’s external environment—including what competitors are doing, how customer expectations are evolving, and how regulations might be changing.  Business acumen Business acumen refers to the ability to understand and deal with various business situations in a way that is likely to lead to a good outcome. It involves a keen sense of how a business operates, how different functions interact, and how decisions impact the overall organization. Key components of business acumen include strategic thinking, financial literacy, market insight, and problem-solving skills.  Why is Business Acumen Important? Strategic Decision-Making: Business acumen allows leaders to make decisions that align with long-term goals, ensuring that the company stays competitive and profitable. For example, Ratan Tata’s decision to acquire Jaguar Land Rover in 2008 was driven by a strategic vision that expanded Tata Motors' global footprint. Financial Insight: Understanding financial metrics and their implications is crucial for maintaining the health of a business. Leaders with strong business acumen can better manage resources, reduce costs, and increase profitability. Mukesh Ambani’s focus on cost control and revenue diversification at Reliance Industries is a testament to this. Adapting to Market Changes: Business acumen helps leaders anticipate market trends and adapt accordingly. For instance, Infosys co-founder Narayana Murthy's decision to pivot the company towards IT services in the 1990s was a response to global market opportunities, leading to Infosys becoming a global leader in IT.  Why is Business Acumen Important? Driving Innovation: Leaders with business acumen are often able to foster innovation by identifying unmet needs and creating solutions that add value. An example is Flipkart’s innovative approach to e-commerce in India, which involved adapting logistics and payment solutions to the local market, revolutionizing online shopping in the country. Risk Management: Business acumen includes the ability to assess risks and make calculated decisions. Kiran Mazumdar-Shaw, the founder of Biocon, exhibited this by entering the biopharmaceutical space, a high-risk but high-reward industry, and turning Biocon into one of India’s leading biotech companies.  What is Management?  Management – Concept https://www.youtube.com/watch?v=_OBqwhYLEJo Does management matter? Why? What does it take to be a manager? What is Management? Management issues are fundamental to any organization: How do we plan to get things done, organize the company to be efficient and effective, lead and motivate employees, and put controls in place to make sure our plans are followed and our goals met? Good management is basic to starting a business, growing a business, and maintaining a business once it has achieved some measure of success. Managers at McNeil Laboratories, a What will you do as division of Johnson & Johnson, discovered that a large batch of responsible Mortin pain reliever had failed a managers? number of quality tests.  Give examples of effectiveness and efficiency practices adopted by organizations? Management Is… Getting work done through others Efficiency – getting work done with a minimum of effort, waste, or expense Effectiveness – accomplishing tasks that help fulfill organizational objectives Management in the New Millennium A firm can be efficient by making the best use of people, money, physical plant, and technology. It is ineffective if its goals do not provide a sustained competitive advantage. A firm with excellent goals would fail if it hired the wrong people, lost key contributors, relied on outdated technology, and made poor investment decisions. "Change is the law of life, and those who look only to the past and present are certain to miss the future,“….John F. Kennedy. What will management look like in future?  Great Moonlighting resignation Quiet Gaslighting quitting Loud quitting Definitions F. W. Taylor: Management is the art of knowing what you want to do and then seeing that they do it in the best and cheapest way. Peter Drucker: Management is a multi-purpose organ that manages a business and manages managers and manages workers and work. Harold Koontz: Management is the art of getting things done with others and with formally organized groups. Henry Fayol: Be it a case of commerce, industry, politics, religion, war or philanthropy in every concern there is a management function to be performed. Characteristics of Management GROUP ACTIVITY CONTINUOUS PROCESS GOAL ORIENTED PROCESS PERVASIVE INTANGIBLE HIERARCHICAL NATURE SYSTEM What do you think are the three important practices that are generally considered to be essential elements of good management? Management practices 1 2 3 Targets: Does the Incentives: Does the Monitoring: Does the organization support organization reward high organization rigorously long-term goals with performers with collect and analyze tough but achievable promotions and bonuses performance data to short-term performance while retraining or moving identify opportunities benchmarks? underperformers? for improvement? As a first time manager….. Focus on results For an example: imagine you are a member of a professional football team – your daily activities would probably include?? Now imagine you are a director of the football club. What ‘results’ would you expect of the team? Did you notice the difference between ‘results’ and ‘activities’? INPUT Organization ENVIRONMENT FORMAL SUB-SYSTEM Management Strategy Goals Structure Operations Technology INFORMAL SUB-SYSTEM Culture Politics OUTPUT Leadership Management as a System Input Transformation Output Men Planning Desired Material Organizing objectives Machine Directing Methods Staffing Money Controlling Markets Importance of Management Dealing with change Achieving group goals Making optimum utilization of resources Creating a comprehensive organizational structure Directing and controlling Collaborating varied interests Creating a learning organization Serving as a control mechanism The Four Functions of Management Management Functions Planning ◦ determining organizational goals and a means for achieving them Organizing ◦ deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom in the company Management Functions Leading ◦ inspiring and motivating workers to work hard to achieve organizational goals Controlling ◦ monitoring progress toward goal achievement and taking corrective action when progress isn’t being made The Universalism of Management Across Organizations of Different Size and Types Business Governmental Educational Social Health Care Agencies Institutions Services Delivery Across Organizational Levels Across Functional Areas Top Management Middle Production Marketing Finance Personnel Management Lower Management 1–32  What Do Managers Do? Describe different kinds of managers. Explain the major roles and sub-roles that managers perform in their jobs Is it exciting to be managers? What is exciting and what is challenging? Relevance of managerial/middle management position Do you believe any or all of the following statements? Does your boss, or your boss’s boss? The only way someone at a company can truly advance is to be promoted out of their current role. The importance of someone’s job can be measured by how many people are underneath their box on the org chart. The more senior the role, the more the person in it should be paid and rewarded. Outstanding individual contributors should be rewarded with management roles. Anyone who stays in a middle-management role for a long time must not be very good. Basic Concepts Managers: ‘A person who is in charge of others and is responsible for the timely and correct execution of actions that promote his or her unit’s success. Line employee: “Employees involved directly in producing companies’ goods and delivering the services”. Staff employee: “An employee who supports line employee”. Top Managers CEO, COO, CFO, CIO Responsible for overall direction of the organization Responsible for creating a context for change Develop employees’ commitment to and ownership of company performance Create a positive organizational culture through language and action Responsible for monitoring the business environment Middle Managers Plant manager, regional manager, divisional manager Set objectives consistent with top management’s goals Implement subunit strategies for achieving objectives Plan and allocate resources to meet objectives Coordinate and link groups, departments, and divisions Monitor and manage subunits and individual managers First-Line Managers Office manager, shift supervisor, department manager Train and supervise the performance of nonmanagerial employees Teach entry-level employees how to do their jobs Encourage, monitor, and reward employees’ performance Make detailed schedules and operating plans Team Leaders Facilitate team activities toward accomplishing a goal Help team members plan and schedule work, learn to solve problems, and work effectively with each other Manage internal and external relationships What Does It Take to Be a Manager? Explain what companies look for in managers Discuss the top mistakes that managers make in their jobs Describe the transition that employees go through when they are promoted to management What Companies Look For Technical skills ◦ specialized procedures, techniques, and knowledge required to get the job done Human skills ◦ ability to work well with others Conceptual skills ◦ ability to see the organization as a whole, to recognize how the company fits into its external environment Motivation to manage ◦ an assessment of how motivated employees are to interact with superiors, participate in competitive situations, behave assertively with others, tell others what to do, reward good behavior, punish poor behavior, perform actions that are highly visible to others, and handle and organize administrative tasks  Management Skills © 2016 Cengage Learning India Pvt. Ltd. All rights reserved. Mistakes Managers Make 1. Insensitive to others: abrasive, intimidating, bullying style 2. Cold, aloof, arrogant 3. Betray trust 4. Overly ambitious: thinking of next job, playing politics 5. Specific performance problems with the business 6. Overmanaging: unable to delegate or build a team 7. Unable to staff effectively 8. Unable to think strategically 9. Unable to adapt to boss with different style 10. Overdependent on advocate or mentor  The Transition to Management: The First Year Initially, managers believed their job was to exercise formal authority and manage tasks After 6 months… Managers were surprised by pace and workload Realized subordinates wanted help solving problems they couldn’t solve After 1 year… Realized that people management is most important  Mintzberg’s Managerial Roles https://www.youtube.com/watch?v=3gIq uZu1rjQ Interpersonal Roles Figurehead ◦ managers perform ceremonial duties Leader ◦ managers motivate and encourage workers to accomplish organizational objectives Liaison ◦ managers deal with people outside their units Informational Roles Monitor ◦ managers scan their environment for information and receive unsolicited information Disseminator ◦ managers share information with subordinates and others in the company Spokesperson ◦ managers share information with people outside of the company Decisional Roles Entrepreneur ◦ managers adapt themselves, their subordinates, and their units to change Disturbance handler ◦ managers respond to problems so severe that they demand immediate action Resource allocator ◦ managers decide who will get what resources and in what amounts Negotiator ◦ managers negotiate schedules, projects, goals, outcomes, resources, and employee raises