Principles of Management

Table des matières

I. Introduction................................................................................................................2
II. Managers and You in the Workplace...........................................................................3
A. The task of the managers......................................................................................................3
B. Classification of managers.....................................................................................................3
C. Management skills................................................................................................................4
D. The use of managers in organizations...................................................................................4
E. Universality of management.................................................................................................5
III. Management history...............................................................................................6
A. The major approach..............................................................................................................6
B. The historical examples.........................................................................................................6
C. The classical approach..........................................................................................................7
D. Behavioral approach.............................................................................................................8
E. Contemporary approaches....................................................................................................8
IV. Managing strategy................................................................................................10
A. The strategic management process.....................................................................................10
1. Identify the mission.............................................................................................................................10
2. SWOT analysis......................................................................................................................................10
3. Formulating strategies.........................................................................................................................11
I. Introduction
II. Managers and You in the Workplace

Who are the managers and where do they work?

Why are the managers important to the organization?
What is the difference between managers and non-managers employees?

Organization: a deliberate arrangement of people to accomplish some specific purpose

Management: Coordinating and overseeing the work activities of others so that their
activities are completed efficiently (low resource usage) and effectively (high goal
attainment)

A. The task of the managers

Planning: defining goals, establishing strategies to achieve goals, and developing plans to
integrate and coordinate activities

Organizing: arranging and structuring work to accomplish organizational goals

Leading: working with and through people to accomplish goals

Controlling: monitoring, comparing, and correcting work

B. Classification of managers
Front-line managers: managers at the lowest level of management who manage the work of
nonmanagerial employees

Middle managers: managers between the lowest level and top levels of the organization who
manage the work of first- line managers

Top managers: managers at or near the upper levels of the organization structure who are
responsible for making organization-wide decisions and establishing the goals and plans that
affect the entire organization

C. Management skills

Technical skills: knowledge and proficiency in a specific field

Human skills: the ability to work well with other people

Conceptual skills: the ability to think and conceptualize about abstract and complex
situations concerning the organization

D. The use of managers in organizations

Organizations need their managerial skills and abilities in uncertain, complex, and chaotic
times

They’re critical to getting things done

The single most important variable in employee productivity and loyalty is the relationship
between employees and their direct supervisors

E. Universality of management

Management is needed in all types and sizes of organizations, at all organizational levels, in
all organizational areas, and in organizations no matter where located
III. Management history

What management looked like in the beginning?

What are the classic management theories?
What is the behavioral approach?
What are the contemporary management theories?

A. The major approach

B. The historical examples

The construction of pyramids required up to 100k, who was leading the workers?

In The Wealth of Nations ADAM SMITH describes of the different task should be divided into
narrow and repetitive tasks

C. The classical approach

Classical approach: first studies of management, which emphasized rationality and making
organizations and workers as efficient as possible

Scientific management: an approach that involves using the scientific method to find the
“one best way” for a job to be done

General administrative theory: an approach to management that focuses on describing what

managers do and what constitutes good management practice

- Taylor scientific management

- Weber’s bureaucracy
 D. Behavioral approach

OB: Organizational Behavior, the study of the actions of people at work

E. Contemporary approaches

System: a set of interrelated and interdependent parts arranged in a manner that produces a
unified whole

Closed systems: systems that are not influenced by and do not interact with their
environment

Open systems: systems that interact with their environment

- Organization as an open system

 - Contingency approach

Contingency approach: a management approach that recognizes organizations as different,

which means they face different situations (contingencies) and require different ways of
managing
IV. Managing strategy

What is strategic management and why is it important?

What are the steps of the strategic management process?
What are the types of corporate strategies?
What are competitive advantage and competitive strategies?

Strategic management: what managers do to develop the organization’s strategies

Strategies are plans for:

-how the organization will do what it’s in business to do
-how it will compete successfully
- how it will attract and satisfy its customers

 Has a positive impact on performance

 Helps managers decide how to act in face of change and
uncertainty
 Helps complex and diverse organizations work together

- Business model

Business model: how a company is going to make money

ex: Nike produce sportwear produce and makes a margin while selling

A. The strategic management process

1. Identify the mission

Who/What are the: customers, markets, philosophy, product/ service…

ex: for Patagonia their missions are to build the best product, cause no unnecessary harm,
use business to inspire and implement solutions to the environment crisis

2. SWOT analysis

SWOT analysis: an analysis of the organization’s strengths, weaknesses, opportunities, and

threats
Opportunities: positive trends in the external environment
Threats: negative trends in the external environment

Strengths: any activities the organization does well or its unique resources
Weaknesses: activities the organization does not do well or resources it needs but does not
possess

For the shark tank example:

opportunities: people care more about hygiene and well-being, man caring more about self-
care
threats: is the tech easily imitable

strength: its technology is unique, the tech can be applied to a broad category type
weakness: problems with production and inventory management, seems way more
expensive than competitors
 3. Formulating strategies

Three types of strategies:

- Corporate

corporate: determines what’s the business of a company, what it wants the business to be,
what it wants to do with this business

Growth strategy: a corporate strategy that’s used when an organization wants to expand the
number of markets served or products offered, either through its current business(es) or
through new business(es)

concentration: focusing on a primary line of business

ex: Intel
vertical integration: integrating the supplier (backward) or the distributor (forward)
ex: Disney/Pixar, Netflix
horizontal integration: acquire competitors
ex: T mobile/Sprint, Marriott/Starwood,
diversification: acquiring companies in related or unrelated markets
ex: Facebook/WhatsApp
Stability strategy: a corporate strategy in which an organization continues to do what it is
currently doing

Renewal strategy: a corporate strategy designed to address declining performance (usually

by cutting cost and restructure ops)
-Retrenchment strategy: short-run renewal strategy for minor performance problems
-Turnaround strategy: drastic renewal strategy for major issues

How are the corporate strategies managed?

BCG matrix: a strategy tool that guides resource allocation decisions on the basis of market
share and growth rate of business units

Star: the thing you do really well and you want to keep
ex: iPhone,
Question mark: something that may be really big in the future but you have low market
share right now
ex: Glasses, Apple TV
Pet: is low growth and low market share so you want to sell it or get rid of it except if on the
short run it goes well with other products
ex: Case, iPod
Cash cow: the thing that brings you lots of money
ex: Airpods, iTunes, MacBook

- competitive

Competitive strategy: an organizational strategy for how an organization will compete in its
business(es)

Strategic business unit (SBU): the single independent businesses of an organization that
formulate their own competitive strategies

Economic moat: sustaining competitive advantage by protecting long-term profits and

market share using various means

What are the dynamics that can bring profit?

Porter’s Five Forces Model

Threat of new entrants: How likely is it that new competitors will come into the industry?
Threat of substitutes: How likely is it that products of other industries could be substituted
for a company’s products?
Bargaining power of buyers: How much bargaining power do buyers (customers) have?
Bargaining power of suppliers: How much bargaining power do a company’s suppliers have?
Current rivalry: How intense is the competition among current industry competitors?
 - functional

Functional strategies: a strategy used by an organization’s various functional departments to

support the competitive strategy

Mirror exercise:

Strength:
Weakness:

Opportunities:
Threats: