Principles of Management
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Topics
Introduction
Management Overview and key components Management as a Field What are Organizations? Management Functions & Roles & Importance History and Evolution of Management Important Contributions Trends and Issues
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difficult in the context of open system theory (as it has to manage internal as well as external factors) The Organizational Environment is classified into two major categories
Internal (commonly known as Culture External Environment (simply called Environment) Specific General
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The Constraints
Two Perspectives on Management
Omnipotent View Vs. Symbolic View
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Organizational Culture
Internal Environment (Heavily effected by the norms and values shared by members of the organization) What is Organizational Culture? The 7 Dimensions of Organizational Culture Risk, Attention to Detail, Outcome Orientation, People Orientation, Team Orientation, Aggressiveness & Stability Types (Strong Vs. Weak Culture) Sources of Culture How employees learn organizational culture Stories, Rituals, Material Symbols & Language
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Creates a stronger employee commitment to the organization. Aids in the recruitment and socialization of new employees. Fosters higher organizational performance by instilling and promoting employee initiative.
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Excellence at Xerox
Xerox Strategy They are committed towards quality products for their customers and for providing a worldclass working environment for their employees To do so they need to attract and retain worldclass people Xerox Employment Trademark eXpress yourself yields for them innovation and leading working environment due to: Passion Diversity Ideas Contribution from everyone
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Xerox: Excellence
The Problem Era
Just few years back the company was fighting for its survival and no focus on improving its HR practices In year 2000 the company was facing $17 billion in debt and its stock price dropped from $63 to about $4 Company suffered loses for 7 consecutive quarters and investigations were called against the accounting matters
The Comeback
Shifted its product mix and offered desktop copiers for offices and quality printers for publishers Company had an increased income to $222 million from just $19 million The reasons behind this turnaround Focus on Customers Thinking about employees as a core
Orientation)
(People
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With strong values of social responsibility, diversity, quality Farhan Mir and innovation
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Task Environment
Task Environment: forces from suppliers, distributors, customers, and competitors. Suppliers: provide organization with inputs
Managers need to secure reliable input sources. Suppliers provide raw materials, components, and even labor. Working with suppliers can be hard due to shortages, unions, and lack of substitutes. Suppliers with scarce items can raise the price and are in a good bargaining position. Farhan Mir Managers often prefer to have many, similar IMS
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Task Environment
Distributors: organizations that help others to sell goods.
Compaq Computer first used special computer stores to sell their computers but later sold through discount stores to reduce costs. Some distributors like Wal-Mart have strong bargaining power. They can threaten not to carry your product.
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Task Environment
Competitors: other organizations that produce similar goods.
Rivalry between competitors is usually the most serious force facing managers. High levels of rivalry often means lower prices. Profits become hard to find. Barriers to entry keep new competitors out and result from: Economies of scale: cost advantages due to large scale production. Brand loyalty: customers prefer a given product.
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Organizational Environment
Organizational Environment: those forces outside its boundaries that can impact it. Opportunities: openings for managers to enhance revenues or open markets.
New technologies, new markets and ideas. Forces can change over time and are made up of Opportunities and Threats.
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Technological forces: skills & equipment used in design, production and distribution.
Result in new opportunities or threats to managers. Often make products obsolete very quickly. Can change how we manage.
Socialcultural forces: result from changes in the social or national culture of society.
Social structure refers to the relationships between people and groups. Different societies have vastly different social structures. National culture includes the values that characterize a society. Values and norms differ widely throughout the world. These forces differ between cultures and over time. Farhan Mir
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Demographic forces: result from changes in the nature, composition and diversity of a population.
These include gender, age, ethnic origin, etc. For example, during the past 20 years, women have entered the workforce in increasing numbers. Currently, most industrial countries are aging. This will change the opportunities for firms competing in these areas. New demand for health care, assisting living can be forecast. Farhan Mir
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All levels of managers should work to minimize the potential impact of environmental forces.
Examples include reduction of waste by first line managers, determining competitors moves by middle managers, or the creation of a new strategy by top managers.
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Boundary Spanning
Managers must gain access to information needed to forecast future issues.
Boundary spanning is the practice of relating to people outside the organization.
Seek ways to respond and influence stakeholder perception. By gaining information outside, managers can make better decisions about change.
More management levels involved in spanning, yields better overall decision making.
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Gatekeeping: the boundary spanner decides what information to allow into organization and what to keep out.
Must be careful not to let bias decide what comes in.
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stakeholders.
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Organizational Stakeholders
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Managers Must
Remain alert to internal and external
environments. Must forecast and plan for the changes they suspect will come. Must cultivate a sensible and controlled reactive behavior toward changes. Provide an imaginative program to manage and capitalize on changes.
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Influencing Environments
Influence legislation. Use the power of the media to influence public opinion and public policy. Build alliances and raise funds to push their agendas.
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