CHAPTER 1 AN INTRODUCTION TO MANAGEMENT

CHAPTER CONTENTS

Section 1. Definition Of Management Section 2. Three Levels Of Manager Hierarchy Section 3. Basic Attitudes Of Managers Section 4. Cross-function Management Section 5. Management Function Section 6. Business Function

Section 7. Skills And Roles For Managers

Section 8. Truth, Goodness And Beauty Of Management

(1.1) MANAGERIAL WISDOM: GOAL

Hiking in a mountain, two friends saw a tiger running towards them. One of them squatted down to tighten his shoelaces immediately. The other one laughed at him, "Do you think you can run faster than the tiger?" The friend replied, "No. I don't need to run faster than a tiger. I only have to run faster than you. People can find their foothold everywhere with the support of reasoning. The purpose of business administration is leading the organization, enterprise or individual to achieve the desired goal or objective of the organization, enterprise or individual.

REMARK

People should have goals in life while managers should have goals in business. Managers accomplish their goals successfully by virtue of management. Many people cannot figure out the goal in competition. They miss the point in working and life and in consequence waste time, energy, money and other resources. Although they work hard, they are still blamed by others. This is what Taiwanese often say:you are working hard with sweat dropping while others blaming you a lot with spit spraying. It's more important to work with brain power (force above your shoulder) than brutal force (physical labor). Goal changes as time or environment changes. Originally, two friends went mountain hiking for their friendship and healthy. Their goal was changed to be saving their own lives and competing with each other when the tiger appeared. You will be less competitive unless you switch your goal swiftly in competition.

PREFACE

Management is to use visible norm (standard, game rules and regulation standard operation procedures, principles, discipline, and statement of work) and invisible norms (culture, custom and tradition) to put the systematic and institutionalized management into practice. The process of approaching this highest state is to use reasonable logic and thinking to reduce the weakness and defect of the organization or enterprise gradually. In other words, management is the base for personal living and organization's existence in business.

There are eighteen chapters in this book, which have been separated into three subcategories:

Cross-function (top) management

Business function

Management function
7

REMARK

10

PART ONE

This presents the cross-function (top) management in seven chapters as:

1) Decision making and Problem analysis, 2) Communication, 3) Quality, 4) Cost, 5) Just in time delivery,

6) Strategy management,
7) Corporate culture.
11

PART TWO

Part two (management function) has five chapters, as follows:

1) Planning, 2) Organization, 3) Leading, 4) Motivation, 5) Control

12

PART 3

Part three (business function) interprets the connotative meaning of enterprise function with:
1) Production and operation management, 2) Marketing management, 3) Human resources and administration

management, 4) Research and development management 5) Financial management.

13

SECTION 1 Definition Of Management

14

MANAGERIAL WISDOM(1.2)
ONE TIME LUCKY, LIFETIME MANAGEMENT

Per Forbes' investigative report on global billionaire in July, 1999, CEO of Microsoft, Bill Gates, who worth $90 billion, became "The World's Richest People" for the third time. He owned US$90 billion net assets in1999, US$49 billion more than what he owned in 1998. The speed of wealth accumulation is world's number one. Bill Gates made his fortune from Microsoft Corporation, which set up its leading position by MS-DOS, an operating system used on IBM personal computer.

At the beginning, the DOS system was called Q-DOS and was not developed by Microsoft, but Seattle Computer Products. IBM contacted a lot of software companies, including Microsoft to seek for a disk operation System for their personal computers, but they didn't contact Seattle Computer.

15

(1.2) MANAGERIAL WISDOM CONT.

At that time, Bill Gates was a university sophomore and also a player of Seattle Computer Community. He knew that Seattle Computer had developed a disk operation system. He borrowed US$50.000 from his father, who was a senior partner of a Seattle Law Firm, Bill Gates went to Seattle Computer and indicated the attempt of purchasing the rights of Q-DOS from the executive director.

The executive director agreed to sell it to Bill due to capital shortage. Bill revised Q-DOS and renamed it to be MS-DOS, then licensed to IMB.
16

REMARK

Is Bill Gates really lucky?

Absolutely. It's lucky that Seattle Computer didn't hear of IBM questioning the operation system but IBM contacted Bill Gates. Even luckier, Bill is familiar to Seattle Computer's system and he has a rich enough father who can lend US$50.000 to him. His father was a director of IBM.

However, it's incorrect to attribute the later successful of Microsoft to good luck.

17

REMARK CONT.

MS-DOS only get off to a good start for Microsoft but it cannot assure that Microsoft continuously enjoy the world's successful it owned. Microsoft achieved success on the teamwork, innovation, breakthrough and also the wholehearted devotion, crisis consciousness and understanding of the demand of market and customers as well as the good management capacity.

Bill Gates owned US$90 billion in 1990, but US$52.8 billion in 2002.
The speed of capital decline is also world's number one. Bill Gates was the world's richest man from 1995 through to 2007 and he was overtaken by Stock King Buffett in 2008.

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1.1 MANAGEMENT

Use resources to accomplish its goal.

The verb manage comes from the Italian maneggiare (to handle especially a horse).
Management is making workers more productive (Peter Drucker). Management is the art of getting things done through people (Mary Parker Follett). A manager is an excellent communicator and value creator. They are the lighting rod who can make work smoothly executed (Peters & Waterman).

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1.2 ENTERPRISE RESOURCE

Managerial

Wisdom--- converting resources to

advantages in competition

A sheep, standing on a roof, scolded a wolf, You bastard! You ate my family and my friends! The wolf looked at the sheep, I got it. But be reminded that Im not scolded by you, but the roof beneath your feet.

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REMARKS

Using of resources you own such as your parents wealth, position and status, or your own language competence, physical strength, good looks, intelligence and ingenuity, wealth and popularity, and your own skills, stature, communication skills, etc, can create yourself competitive edge. But if you are unable to use these resources, it is the same as being without them.

21

1.2 ENTERPRISE RESOURCE

Man

Machine

Materials

Money

Management

22

REMARKS

Personal health is [1], others such as fame, money, language, public relation, wealth, ability, talents and wisdom, etc as succeeding [0]. Without health, life would be back to zero, and we cant take anything away after die. Thinking in another way, manager is [1] of enterprise, and other resources such as employees, machines, material, money and management is the succeeding [0]. Without professional manager with specialty and sense of mission, more resource aggregation of organization or enterprise would have the same fate of [0].

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SECTION 2 Three Levels Of Manager Hierarchy

24

(1.4) MANAGERIAL WISDOM: THREE REFLECTION

LEVELS OF FLAG FLUTTERING, WIND BLOWING AND MIND SURGING

Three people- old monk, middle age monk and young monk were walking in the environs. monk pointed to the front flag and said, Master, Grand-master, there is a fluttering flag in the front.
Young

Middle age monk had a look, said with smile, Prentice, its not the flag fluttering, but wind blowing.

Hearing that, old monk smiled and said, Prentice, Grandprentice, its not the flag fluttering or wind blowing, but your mind surging.

25

REMARK
Young monk (first-line manager) only saw the problems and presentation; Middle age monk (middle manager) had cognized cause and learned the reason behind the problems. However, the old monk (top manager) had been in philosophy level.

Manager in higher level should have enough thoughts and concepts of high level to lead a company.

Many people criticize that changing a position will also change the head which is a bad way. However, when employees are promoted to manager from supervisors, not any C.E.O would like them still keep supervisors way of thinking and work methods without any improvement.

26

27

2.1 TOP MANAGERS

Top managers should: emphasize on conceptual skills and must have the entire, comprehensive and all-round macro-views.

act as the basis of the directions of organizations and enterprises and major policies of strategy.
must completely rely on their wisdom to make many decisions without adequate information. have a sense of mission and ideals and adhere to the principles.
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be responsible for the performance of the whole company.

2.2 MIDDLE MANAGERS

Middle managers:

are responsible officers of professional department with professional knowledge, specializing in production and operations, marketing, personnel, research and development, finance and other management work. binds the managers of the organization with first-line cadres closely, therefore, they should not only have accumulated departmental professional knowledge, but also have the communication function linking the preceding with the following and responsibilities of sharing cares and burdens each other and solving the difficulties.
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2.3 FIRST-LINE MANAGERS (SUPERVISORS)

Supervisors:

are workers responsible for the implementation of field direction, supervision and control.

have better professional competence than operation staff in the aspects of mastering performance of machines, operation techniques and production schedule. job titles usually do not have the name of manager, such as section supervisor, chief and team leader
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(1.5)MANAGERIAL WISDOM: COMPANY IS A ZOO

The employees of the company can be divided according to the individual personality:

1.Tiger type highly-dominant person, liking challenges and adventure, active and competitive for personality, with strong confidence, would like to master the whole situation

do not like to maintain the status quo, acts on the initiative and arbitrarily; not easy to compromise and thus is unwilling to be controlled by others

tend to create frictions and conflicts with others, but he is the best staff for sale representative and marketing.

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2. Peacock type

are optimistic with great passion, eloquent with strong persuasive capability, and attach great importance to selfpackaging and propaganda. active in interpersonal relationships with highly expressive quality hence are rather popular and welcomed by people.

3. Koala type are of high durability, gentle, stable and meek, and have strong persistence and high degree of adaptability,

act following the prescribed routine, but sometimes they are over-cautious.
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4. Owl type are conservative but respect for institutional ethics, act systematically, emphasize on the details and have strong analysis capability and strong initiative. cannot tolerate mistakes and are perfectionists requiring that everything should be strictly acted. 5.Chameleon type the strongest in strength is the main personality trend of a person

are of moderate temperament and have strong sociality ability. can adjust their roles depending on the requirements of circumstances.
33

People of tiger type engage in marketing work.

People of peacock type engage in advertising work. People of koala type engage in administrative work.

People of owl type engage in the accounting and financial work

people of chameleon type engage in public relations work.

The personality is particularly important for training professional managers.

No

matter how strong the koala will be trained for, it is difficult to win the

tiger.
the basic personality of the managers should be aware when34 selecting the managers. Every job has its own unique characteristics.
Therefore,

The

company should be able to appoint the talents in right positions, that is to make every employee within the company display their abilities. However, the applicable job for everyone is different due to its personality properties and the attitude expressed.
This

is method of practicing features of person in management. However, it is different from practicing palmistry and facial features, feeling the bones, Purple Star astrology and other fortune-telling methods, which has scientific basis.
The

vertical (power) division of the company is based on

hierarchy

the horizontal (professional) division of the company is in accordance with personality.

while

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SECTION 3

Basic Attitude Of Managers

36

(1.6) MANAGERIAL WISDOM: RESPECT-WORK

ATTITUDE

Seiko Noda went to work at Imperial Hotel of Tokyo during the summer vacation: the work she was assigned is to clean the toilets at the five-star hotel. The dedication that she has learned is that any work has the more ideal condition and higher quality for pursuit; while the meaning and values of work lie in that people engaging in the work can focus on the work and explore its fun. When cleaning the toilets, she did not take it as pains and considers it as the place for self-cultivation and promotion. After cleaning the closet-stool each time, she always asks herself, Could I pick up a cup of water from here and drink it?
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(1.6) MANAGERIAL WISDOM

The holidays ending, when the managers examine the trainer, the female student without hesitation picks up a cup of water from the closet-stool, which she has cleared and drinks it in the face of everyone. This movement has shocked all people present, but she proudly says, The closet-stool cleared by me are so clean that the water in them can be drunk! The manager believes that this female student is the talent worth recruiting! After graduation, she entered the Imperial Hotel and works there. With this dedication spirit, she is the employee who is the most excellent and promotes fastest in Imperial Hotel before the age of 37. After the year of 37, she enters politics, appointed by Prime Minister Junichiro Koizumi, and becomes the Postmaster General of the Cabinet of Japan.

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REMARK

The attitude you treat people determines the degree you are respected by others. The attitude you act determines the performance of your work. Your attitude determines the happiness of your life and the achievements of your career. People who have the courage to challenge the traditions and yourself are the real warriors.
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3.1 SIGNIFICANCE OF ATTITUDE

Attitude reflects subjective feelings of a person to someone and /or something. Matters by the likes and dislikes to specific affairs and the held durable positive or negative (external behavior) to people, things and matters. Attitude has very strong cognitive part, and usually is supported by strong reason meanwhile including strong emotional considerations.

Therefore, attitude is the integration of sense and behavior perception by others.

40

Attitude can be divided into: a) Positive attitude: if the worker has the attitude of optimism, initiative, enterprising, keeping smile, making people feel warm, making all-out efforts and keeping fit with exercise, then he will be welcomed wherever he works.
b) Negative attitude: if the worker is pessimistic, passive

or selfish, then he will not be welcomed wherever he works, for example, complaint is the least productive, distractive and backward attitude.

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3.2 WORK ATTITUDE OF MANAGERS

The attitude of managers can be illustrated by XY theory (details in Chapter 10 of this book). In practice, managers are most concerned about the attitudes relating to work, which mainly are: Organization commitment b) Job involvement c) Job satisfaction,
a)

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(1.7)MANAGERIAL WISDOM : THE RULE FOR

SUCCESS OF

3A IN WORK

In private enterprise or governmental organization, attitude, aim, and action are the only way to success for individual work, which are explained as follows: 1) Attitude: Self-motive, positive and confident attitude in work can exchange for trust and affirmation. In addition, workers who join the business should be sure to memorize the following two rules in workplace.

Workplace rule 1: Boss is always right Workplace rule 2: If boss was wrong, please refer to rule #1.
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MANAGERIAL WISDOM CONT.

2)
Aim: Focus on the achievement of the goals. Most of the supervisors determine your level of effort and your contribution to the company in accordance with the work results and performance.

3) Action: Percy Barnevk, president of Asea Brown Bover Company with employees over 100,000 says, For success, 5% depends on decision-making and 95% depends on action.

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REMARK
Every manager should always remember the rules for success of 3A in mind so that the effects of You can count on me. For example, for job candidates of start in life, your attitude determines whether you are employed or not; in work attitude, the taboo of managers is No idea. The taboo of subordinates is It does not matter. And the successful employees believe that hard work is done for the duty but not is passively forced to do.

Managers of successful enterprises usually can tolerant some small errors in work, but faults in ethics and conducts are absolutely not allowed. Nor the same mistakes are allowed to make twice.

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(1.9)MANAGERIAL WISDOM: MODEST REFERS TO

BOWING ONES HEAD AND THE HEAD WILL NOT
BE TOUCHED BREAKS

Franklin, a well-known American scientists and famous politicians, goes to visit an elder when young. When he passes from the gate of the house of the elder, he hits to the top of the door accidentally, and he shouts due to the pains as if seeing stars! At this time, the elder says to Franklin, Is it painful? It does not matter! This is your biggest gain for you to see me today! The elder strikes the head for Franklin, and simultaneously says, If you want to live in this world in peace, happiness and success, you must often bow your head, and then head broken cannot occur. After listening to this sentence, Franklin keeps in mind, hence he treat people with courtesy and is modest, and also sticks to honest principle. Finally, he becomes the famous statesman.

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REMARK

Russo says, The reason why people make mistakes is not because they do not understand, but because they claim to understand all. People in life will surely encounter setbacks. The important is how you face it. A person who wants to perform great works must humbly accept the advice of others, but not should be overly self-assured and impenetrably thickheaded. How could a proud and stubborn person or without listening to the advice be welcomed?

The most famous wrestling champion in the 1960s in Japan Rikidozan beat all the Japanese without opponents who can threat him, so he was immodest and self-congratulation; However, he was too arrogant, in the street a knife pierced into his stomach by a boy and he died after the disease struck in. Person can have confidence, but must not be proud, which must be kept in mind! Pride goes before a fall!

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3.3 THE THEORY OF COGNITIVE DISSONANCE

The theory of cognitive dissonance is the theory about attitude change that was put forward by the social psychologist L. Festinger in 1957. This theory holds that in most cases, for the attitude that people treat something, its cognitive component (view) is consistent with behavior. In the case of safe conscience, the attitude will also be maintained unchanged if the attitude is inconsistent with behaviors, that is to say that ideal does not match with the reality, the problem of cognitive dissonance will produced.

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SECTION 4

Cross-function (Top) Management

49

1.9 MANAGERIAL WISDOM: MODEST REFERS TO BOWING ONES HEAD AND THE HEAD WILL NOT
BE TOUCHED BREAKS

Franklin, a well-known American scientists and famous politicians, goes to visit an elder when young. When he passes from the gate of the house of the elder, he hits to the top of the door accidentally, and he shouts due to the pains as if seeing stars! At this time, the elder says to Franklin, Is it painful? It does not matter! This is your biggest gain for you to see me today! The elder strikes the head for Franklin, and simultaneously says, If you want to live in this world in peace, happiness and success, you must often bow your head, and then head broken cannot occur. After listening to this sentence, Franklin keeps in mind, hence he treat people with courtesy and is modest, and also sticks to honest principle. Finally, he becomes the famous statesman

50

REMARK

Russo says, The reason why people make mistakes is not because they do not understand, but because they claim to understand all. People in life will surely encounter setbacks. The important is how you face it.

A person who wants to perform great works must humbly accept the advice of others, but not should be overly selfassured and impenetrably thickheaded.

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CROSS FUNCTION MANAGEMENT

Enterprise is for commercial purposes, so making profits is the fundamental goal of the survival of enterprise.
Enterprise is cross-function management (also called top management functions), such as quality, cost and delivery period, etc. Each functional department (production, sales, human resources, Research & Development and finance) has many responsibilities of cross-function management. The goals of each cross-function management must be completed by many functional departments together, while these goals for cross-function management must cross the barriers of departments by functional department of the enterprise and can be achieved by joint efforts.

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CROSS FUNCTION MANAGEMENT

The task of top managers is to support all operating functional activities to make the company operate smoothly. The goals of cross-function (top) management should be set well before the departmental goals are determined. Cross-function (top) management committee should be composed of top managers and its task is to establish crossfunctional goals and methods to achieve these goals In addition, the effects on quality, cost and delivery goals by the development of product, equipment, production, sales and other matters should be explored.
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4.1 RATIONAL DECISION MAKING AND PROBLEM ANALYSIS

Destiny is decision-making including cross-function (top) management, management functions and business functions are required decision-making. Managers are decision makers; Chapter 2 of this book will use examples to explain rational decisions-making steps, which is a set of practical decision-making (Group decision-making) methods that managers have to learn.

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4.2 COMMUNICATION

Communication is the source of the vitality of organization; from the course of interpersonal communication, use communication method of spoken language illustrates the expression and acceptance of the manners of listening, speaking and writing. Use the communication method of non-verbal language to illustrate the meaning of body language, tone and distance. Finally, illustrate the organizational communication, that is, downward, horizontal and upward formal organizational communication and grapevine of informal communication channels.
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4.3 QUALITY

Quality is the most important factor to make the company competitive advantage and customers satisfaction. The quality system is illuminated by quality control circle, statistical control chart, and total quality control, etc. Prevention cost, appraisal cost and failure cost are used to illustrate quality cost

Finally the importance of specifications and standards are stated.

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4.5 JUST-IN-TIME MANAGEMENT AND TIME MANAGEMENT

When delivery cannot be made in time, the efforts of individual departments are a waste. The orders received by Sales Department and the products manufactured by Production Department, all the efforts become meaningless due to the delivery cannot perform in time. Chapter 6 of this book discusses just-in-time management and the material requiring, introduces the important management approaches in the aspect of in-time delivery speed and reducing costs in some countries.
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4.6 STRATEGIC MANAGEMENT

(1.10) Managerial Wisdom : Strategy of destroying the enemy

A friend of members of Congress frankly criticize Lincolns attitude towards opposite Congressmen.

He questioned, Why do you try to make friends with them? It is not right to do that! You should find a way to destroy them. President Lincoln moderately and wisely said, When they become my friends, dont I destroy the enemies?
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REMARK

One should treat others as one would like to be treated. When the enemy becomes the friend, you have not only destroyed one enemy but also have a good friend. The resistance can be turned into assistance power which is a win-win. Do you have enemies? Change your concept, and someway the enemies can become friends.

If you win the truth (sophistry) but lose the feelings (friendship), then it is not worth the candle; if you win in quarrel, you may also not feel good. If you can change your mental attitude, then your mood will become better and life path will become increasingly extensive.

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4.6 STRATEGIC MANAGEMENT

Explore the causes for the success or failure of enterprise organization to determine how to do best. Strategic management is the brightest jewel for Western management crown. Company strategies, business department strategies and functional strategies are determined by the understanding of the strengths and weaknesses owned inside the enterprise, analyzing the opportunities and threats controlled by external environment of SWOT analysis.
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4.7 CORPORATE CULTURE

Culture is the naturally formed common values and behavior norms in the long term as well as the standards or habits of right and wrong. The staffs study corporate culture through stories, rituals, actual symbol and language. Chapter 8 of this book has important instructions of the types and molded methods of corporate culture.
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SECTION 5

Management Function

62

(1.11) MANAGERIAL WISDOM: IMMEDIATE

ACTION

In a remote and quiet corner of a park, a young man gently pulls his girlfriend waist into his arms and talks love. He suddenly musters up his courage and asks, Can I kiss you? His girlfriend looks frontage straightly and does not reply with bowing the head. Both are silent for a while, and the young man is upset. Over some time, he plucks up his courage again and asks, Can I kiss you? It can be seen that his girlfriend face is lowered down, eyes are closed and two spots of color flies to her cheeks. The young man is more fluctuated and upset. Facing the tough and embarrassing atmosphere, he even does not know where to put his hands and feet. The minutes tick away. Finally the young man musters up his courage once again and asks for the third time, Can I kiss you? The girl is seen to raise her head with her face flushed. Snapped! a slap is given in the face of the young man. The girl angry says, You only say, but dare not do, a dead dog!

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REMARK

After thinking things through, one should grasp the opportunity and implement immediately because immediate action usually is the guarantee of success. Many people lie between the major events that cannot be accomplished and the little things that are disdained to do, then finally nothing is accomplished.

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5.1 PLANNING (P)

If you fail to plan, you plan to fail. I think therefore I am is the principle of planning. Planning is the uppermost management function for managers, and it is included among everything done by each manager. Planning makes all staff know about where is the future of the company and carry things out after knowing about specific direction and goal. Goals, plans, strategies, regulations, procedures, rules made by planning are the standard that should be obeyed together by all staff.

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5.2 DOING, EXECUTING OR DIRECTING (D)

Manager should try all means to ensure all staff obey the standard made according to planning and doing it coping with companys resources. Maintain I work hard therefore I am good as the principle of doing.

Inventor Edison once said that Genius is one percent talent and ninety-nine percent of perspiration.
Perseverance will prevail, master comes from training.
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DOING
a)Organization and authority

Key points of it include how to properly divide the organization into sub- units, how to properly authorize organization levels, how should sub-units cooperate with each other and how to make the organization structure strong, response promptly and skillful.

b)Human resources and administration (HR&A)

is the key factor deciding whether an organization or enterprise is competitive.

c)Leadership and motivation

Any manager of an enterprise organization should be the leader as well.

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5.3 SEEING AND CONTROLLING (S)

An organization can be effectively operated only through a proper control system to maintain the principle control goal achievement. Control system supplies information that managers need to know about the actual progress of the plan and to analyze and correct unexpected things. One should learn a lesson and avoid making the same mistake again, it is the same principle as Lightning never strikes in the same place twice.
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5.4 DESCRIPTION OF MANAGEMENT FUNCTION BASED ON PDS CYCLE

Plan is managers wisdom to reason considering the goal

and execution method of company.

No matter how perfect the planning is, it has to be completed through doing, because no company can gain profit only through planning. Profit comes from execution. Finally seeing is to give award to those who can finish work on time, for example, praise, bonus, promotion etc. Modify the plan, replace the principal, add resource input or change activities if necessary for those who fail to finish work on time.

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SECTION 6

Business Function

70

(1.12)MANAGERIAL WISDOM: COMMITMENT

Once there is a Japanese actress, in order to make a good job for her role as a granny, she asked a dentist to pull out all her beautiful teeth and wear artificial teeth in order to make her look like a granny from mouth, voice and facial expression.

She said Actually I could have chosen not to do this, but I had to so that I could make a promise to myself that I am serious.

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REMARK

Managers have the strong desire for success.

They

do not fear of sacrifice. They will try each means to solve difficulties. They will never find an excuse for themselves, which is a necessity for success.

It might be very safe to repeat walking on a foregone way, sometimes that is unchangeable:

sacrifice

is a necessity for breakthrough, because one who devotes into something wholeheartedly can have a bright future and a successful destiny.

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6.1 PRODUCTION AND OPERATION MANAGEMENT

Production activity is also called manufacturing management and operation management including visible goods and invisible service. Key point of production and operation management is planning, execution and control of production (refer to Chapter 14 for details). A significant events related with production and work management include plant lay-out, production planning, purchasing management, material management, production management, quality management, inventory management etc.

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6.2 MARKETING MANAGEMENT

Marketing management of a business means all activities related with transform distribution and supplied service. Chapter 15 of this book aims to explain marketing and put emphasis on marketing planning, doing and seeing. Marketing activity including products, price, place and promotion (called 4P for short).

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6.3 HUMAN RESOURCE AND ADMINISTRATION (HR&A)

Human is the vital factor that decides whether a business can be successful and whether it can gain profit or not. Business together with capital, raw material, machine, management, etc is governed and dominated by human. Chapter 16 of this book talks about methods for recruiting, selecting, nurturing, using and retention talents. It is the focus of HR&A management.

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6.4 RESEARCH AND DEVELOPMENT

Whether a business has a future or not? Whether a business can exist and develop permanently or not? It depends on new goods and new technologies. Products has their own lifecycles as human. Product will be sooner or later to enter decline period. Lag in technology may make a business lose competitive ability because of added cost or poor quality.

Chapter 17 of this book mainly talks about business research and development including basic theory research, product development, technology implementation and innovation.

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6.5 FINANCIAL MANAGEMENT

Capital is like blood of a business. A company cannot run without capital. There is an old saying goes like this Money is not everything, but without money you can do nothing. Business functions are like a humans hands, feet, eyes, a nose and touch, each function cooperates with each other so that a business can operate flexibly to avoid risks and seek profit. If any function does not work, the business will not continue operating like a link of a chain breaks, even enter a no-return road and cause bankrupt.
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SECTION 7

Skills And Roles Requirements For Managers

78

(1.13) MANAGERIAL WISDOM: NEW CONCEPT

BREAK THROUGH
Elephants in circus are all trained when they are young. Calf elephants are tied to stakes because they are naughty and playful.

calf elephants strength is weak, they cannot pull stakes even though they have tried many times.
Because
After

a long time calf elephants will become law-abiding knowing that it is useless to struggle.
Calf

elephants then grow up into elephants; they can make lots of performance in circus. Elephants are very powerful so that they can move lots of things, but they are still law-abiding to be tied to stakes when performance is over.
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REMARK
Elephants are powerful enough to move stakes, but they will think it is impossible to move stakes because of their past experiences. They are restricted by their own concepts.

Stake is the restrictions interfering personal potential.

Even

though there are thousands of words, it is not profound as a

factor. Maybe there is no obvious resistance, but fear caused by personal past experience. People will then become conversant and do not dare bring forth new ideas.
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7.1 SKILLS THAT MANAGERS HAVE TO OBTAIN

a) Technical skills

It means professional knowledge and experience needed for, from grass-roots level staff promoted in the application of operations or business.

b) Interpersonal skills It means the ability to live together with others and to promote the entire group to cooperate well. c) Conceptual skills The managers should think about the operational abilities of entire organization or enterprise in comprehensive, long-term and all-around way

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7.2 THE ROLES OF MANAGERS

7.2.1 Communication coordinators role

Figurehead role: Managers organizations or enterprises.

are

representatives

of

Leadership role: Managers encourage its subordinates including selecting, training and assign tasks to subordinates. Liaison role: To establish and maintain interpersonal relationship in and outside. a good
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7.2.2 Information transmission role

Monitor role: Much of routine or non-routine information are sent to the administrators of information receptionist and collector so that they can know about all-around conditions of the company and the opportunities and threats.
Disseminator role: To gather information from both inside and outside and convey it to persons of organizations or enterprises who need to receive it. Spokesman role: Managers are representatives of these departments which means that may be internal, such as high-level managers report salary increases or reaction conditions of the department.

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7.2.3 Decision maker

Entrepreneur role: managers should have ambition as entrepreneurs or designers. Disturbance handler role: Managers should be able to handle important or non-routine problems. Resource allocator role: Decide how to allocate the financial resources and non-financial resources within the organization or enterprise. Negotiator role: Hold important and non-routine negotiations with other organizations or individuals.
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THE ROLE OF MINIZIBOGE ADMINISTERS

No Communication Information coordinators role transmission role
Figurehead role Leadership role Monitor role Disseminator role

Decision maker

1 2

Entrepreneur role Disturbance handler role Resource allocator role Negotiator role

Liaison role

Spokesman role

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(1.15)MANAGERIAL WISDOM: SELF MANAGEMENT

Four better ways of improving good habits of oneself: 1. A little bit more smiles 2. A little bit more respect 3. A little bit faster 4. A little bit more open-minded Remark Too many people want to succeed, but only a few people are willing to endure hardships.
You

can develop your own point of philosophy such as a little bit more earlier time (10 minutes) for going to meeting, class, school, work and appointment, a little bit more magnanimous and further farsighted having a little bit more sweet, brave and simple, etc, which require careful pondering.

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SECTION 8 Management Is Science, Betterment And Art

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(1.16)MANAGERIAL WISDOM:

NO TRICKS BETTER THAN TRICKS

When Wuji Chang, a character of the martial arts novels written by Jin Yong, study shadowboxing (taijiquan), his master Sanfeng Zhang wants him to forget the moves, and when the moves are fluent with ease, then shadowboxing is considered to learn. Remark To learn management is to put the correct concepts deeply into mind and become a part of work and life. Do not just apply the management skills, but can skillfully and smoothly apply management concepts in thinking, action and control.
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8.1 SCIENCE

Truth is the spirit of science, such as physics, chemistry, physiology, astronomy, calculus, psychology, mathematics, etc. Finds out the coherence and relationships in confusion with objective, rational, intelligence and doing things no more than that should be done manner. Management is calm without emotion, written regulations, standards, systems, and rules of games, etc.
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8.2 BETTERMENT (IMPROVEMENT)

Betterment:

emphasizes on the pragmatic spirit of practice, advantages and disadvantages, and gains and losses.
It leans to something done that should be done for willpower in psychology and is in the pursuit of maximizing the corporate profits with rational thinking and reasonable logic to be able to maintain the survival of enterprise as its basis. Takes advantage of the environment to reduce the cost and pursue efficiency and take continuous improvement and creating benefits as goal.
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8.3 ART

Artistry belongs to the philosophical spirit of art, is things are done no more than those should be done in subjective emotion, is humanized, idealistic and emotional irrational feelings. Artists emphasize on personal subjective intentions and feelings, highly value savor and interpersonal relationships, but do not care about logic. It is exactly two different dimensions with the scientific spirit of seeking truth for everything.

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TAKING BENEFIT AS CORE AND TRUTH, BETTERMENT AND

ARTISTRY AS BASIC SPIRIT OF MANAGEMENT OF ENTERPRISE

Benefit

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TABLE 1.2 REAL SIGNIFICANCE OF MANAGEMENT PHILOSOPHY OF SCIENCE, BETTERMENT, AND ART
Science 1.Spirit Science seeks the truth(Scientist) Do things no more than that should be done Law objective Betterment For the profits, the more the better (Entrepreneur) Do things that should be done Reason: Practical Artistry Arts seek beauty (Artist)

2.Goal

Do things no more than should be done Feeling: objectives

3.Society

4.Practice

Decrease, regulations, systems, rules

5.Available

Long term (unchanged)

Principles, thinking, improvement, Implementation, success, making money & winning Middle term (elastic)

Spirit, feelings, move and control

Short term (changed constantly) Everyone is different

6.People

7.Communication

Everyone is the same (absolutely and definitely) Machinery( figure)

Different based on ethnicity (relatively with values) Function (thinking)

Satisfaction (peoples minds) Lead communication brand

8.Core opinion

Pursuing performance, quality, cost & delivery

Regulations, ideal, long range, prospective decisionmaking

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In management, the needs and satisfaction of the customers are considered as key points. The feelings of customers are the feelings of the enterprise and the ideals of customers are the Ideals of the enterprise.

The manufacturers provide values and quality as primary axis to satisfy the needs of customers, which is the second S (seeing) of SDS cycle and a part of control. Managers should

firstly talk about law (truth: objective, requirements, procedures and standards), then talk about improvement (betterment: moral, improvement, amelioration), and finally talk about feeling (artistry: subjective and experience).

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THE END OF CHAPTER 1.

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