MG8591 -PRINCIPLES OF

MANAGEMENT
Mrs.P.Sangeetha
Assistant Professor
Department of CSE
P.A College of Engineering and Technology
 UNIT-I:INTRODUCTION TO MANAGEMENT
AND ORGANIZATIONS

• Definition of Management – Science or Art – Manager Vs

Entrepreneur - types of managers - managerial roles and skills
– Evolution of Management – Scientific, human relations ,
system and contingency approaches – Types of Business
organization - Sole proprietorship, partnership, company-
public and private sector enterprises - Organization culture and
Environment – Current trends and issues in Management.

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 DEFINITION OF MANAGEMENT

• According to Harold Koontz, ―Management is an art of

getting things done through and with the people in formally
organized groups. It is an art of creating an environment in
which people can perform and individuals and can co-operate
towards attainment of group goals.
(or)
• Management is the process of designing and maintaining an
environment in which individuals working together in groups
,efficiently accomplish selected aims.

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 MANAGING :SCIENCE OR ART

• Management is both an art and a science. Management

combines features of both science as well as art. It is
considered as a science because it has an organized body of
knowledge which contains certain universal truth. It is called
an art because managing requires certain skills which are
personal possessions of managers.
• Managing by practice is an art.
• The organized knowledge underlying the practice may be
referred to as a science

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 MANAGER

• It used to be fairly simple to define who managers were: They

were the organizational members who told others what to
do and how to do it. It was easy to differentiate managers
from non managerial employees.
• Definition:
A manager is someone who coordinates and oversees the
work of other people so that organizational goals can be
accomplished. A manager’s job is not about personal
achievement—it’s about helping others do their work.

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 CLASSIFYING MANAGERS

• First-line Managers
– Individuals who manage the work of non-managerial
employees.
• Middle Managers
– Individuals who manage the work of first-line managers.
• Top Managers
– Individuals who are responsible for making organization-
wide decisions and establishing plans and goals that affect
the entire organization.

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 MANAGERIAL LEVELS OR LEVELS OF
MANAGEMENT

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 ORGANIZATIONS

• Managers do their work in

organizations.
• Definition:
It’s a deliberate
arrangement of people to
accomplish some specific
purpose.
• Common Characteristics of
Organizations
 Have a distinct purpose
(goal)
 Are composed of people
 Have a deliberate structure

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 WHAT DO MANAGERS DO?

• Management is what managers do.

• Management involves coordinating and overseeing the work
activities of others so that their activities are completed
efficiently and effectively.
• Coordinating and overseeing the work of others is what
distinguishes a managerial position from a non managerial
one.
• This doesn’t mean that managers can do what they want
anytime, anywhere, or in any way. Instead, management
involves ensuring that work activities are completed efficiently
and effectively by the people responsible for doing them, or at
least that’s what managers aspire to do.

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 EFFICIENCY AND EFFECTIVENESS IN
MANAGEMENT
• Efficiency refers to getting the most output from the least amount of
inputs.
• Effectiveness is often described as “doing the right things”—that is,
doing those work activities that will help the organization reach its
goals.
• Management researchers have developed three approaches to
describe what managers do: functions, roles, and skills
• Efficiency • Effectiveness
– “Doing things right” – “Doing the right things”
– Getting the most output – Attaining organizational
for the least inputs goals

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 EFFICIENCY AND EFFECTIVENESS IN
MANAGEMENT

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 MANAGEMENT FUNCTIONS

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 MANAGEMENT FUNCTIONS

• 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.

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 MINTZBERG’S MANAGERIAL ROLES AND A
CONTEMPORARY MODEL OF MANAGING

• The term managerial roles refers to specific actions or

behaviors expected of and exhibited by a manager.
• The role of a manager.
10 roles are grouped around interpersonal relationships, the
transfer of information, and decision making.
• The interpersonal roles are ones that involve people
(subordinates and persons outside the organization) and other
duties that are ceremonial and symbolic in nature. The three
interpersonal roles include figurehead, leader, and liaison.
• The informational roles involve collecting, receiving, and
disseminating information. The three informational roles
include monitor, disseminator, and spokesperson.

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 MINTZBERG’S MANAGERIAL ROLES AND A
CONTEMPORARY MODEL OF MANAGING

The decisional roles entail making decisions or choices. The

four decisional roles include entrepreneur, disturbance handler,
resource allocator, and negotiator.
Interpersonal roles
Figurehead, leader, liaison
Informational roles
Monitor, disseminator, spokesperson
Decisional roles
Entrepreneur, disturbance handler, resource allocator,
negotiator

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 MINTZBERG’S MANAGERIAL ROLES AND A
CONTEMPORARY MODEL OF MANAGING

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 MANAGEMENT SKILLS

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 MANAGEMENT SKILLS

• Technical skills are the job specific knowledge and techniques

needed to proficiently perform work tasks.
• These skills tend to be more important for first-line managers
because they typically are managing employees who use tools
and techniques to produce the organization’s products or
service the organization’s customers.
• Human skills, which involve the ability to work well with
other people both individually and in a group. Because all
managers deal with people, these skills are equally important
to all levels of management

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 MANAGEMENT SKILLS

• Conceptual skills are the skills managers use to think and to

conceptualize about abstract and complex situations.
• Using these skills, managers see the organization as a whole,
understand the relationships among various subunits, and
visualize how the organization fits into its broader
environment.
These skills are most important to top managers.

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 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

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 IMPORTANT MANAGERIAL SKILLS

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 MOST IMPORTANT CHANGES FACING
MANAGERS

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 THE IMPORTANCE OF CUSTOMERS TO THE
MANAGER’S JOB

• Customers: the reason that organizations exist

– Managing customer relationships is the responsibility of all
managers and employees.
– Consistent high quality customer service is essential for
survival.
 THE IMPORTANCE OF INNOVATION TO THE
MANAGER’S JOB

• Innovation
– Doing things differently, exploring new territory, and
taking risks.
– Managers should encourage employees to be aware of and
act on opportunities for innovation.
 THE IMPORTANCE OF SUSTAINABILITY TO
THE MANAGER JOB

• Sustainability -
a company’s ability to achieve its business goals and
increase long-term shareholder value by integrating
economic, environmental, and social opportunities into its
business strategies.
 WHY STUDY MANAGEMENT?

• The value of studying management by looking at three things:

the universality of management, the reality of work, and the
rewards and challenges of being a manager.
• Universality of Management
– The reality that management is needed
• in all types and sizes of organizations
• at all organizational levels
• in all organizational areas
• in all organizations, regardless of location
 UNIVERSALITY OF MANAGEMENT

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 THE REALITY OF WORK

• To work for a living and recognizing that you’re very likely to

work in an organization, you’ll probably have some
managerial responsibilities even if you’re not a manager.
• Our experience tells us that you can gain a great deal of insight
into the way your boss (and fellow employees) behave and
how organizations function by studying management.
• Our point is that you don’t have to aspire to be a manager to
gain something valuable from a course in management.

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 REWARDS AND CHALLENGES OF BEING A
MANAGER

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 WHY MANAGERS ARE IMPORTANT TO
ORGANIZATIONS
Managers are important to organizations for three reasons.
 First, organizations need their managerial skills and abilities in
uncertain, complex, and chaotic times.
 Second, managers are critical to getting things done in
organizations.
 Finally, managers contribute to employee productivity and
loyalty; the way employees are managed can affect the
organization’s financial performance; and managerial ability
has been shown to be important in creating organizational
value.

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 EVOLUTION OF MANAGEMENT OR
MANAGEMENT HISTORY MODULE

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 MANAGEMENT HISTORY MODULE

• The first studies of management is called the classical

approach, emphasized rationality and making organizations
and workers as efficient as possible.
• Two major theories comprise
• The classical approach: scientific management and general
administrative theory.
• The two most important contributors to scientific management
theory were Frederick W. Taylor , Frank and Lillian Gilbreth.
• The two most important contributors to general administrative
theory were Henri Fayol and Max Weber.

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 CLASSICAL APPROACH

 Scientific management:
The use of scientific methods to define the “one best way”
for a job to be done.
 General administrative theory focused more on what
managers do and what constituted good management practice.
Henri Fayol ,the first identified five functions that managers
perform: planning, organizing, commanding, coordinating, and
controlling

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 TAYLOR’S SCIENTIFIC MANAGEMENT
PRINCIPLES

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 GENERAL ADMINISTRATIVE THEORY

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 14 PRINCIPLES OF MANAGEMENT BY HENRI
FAYOL

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 14 PRINCIPLES OF MANAGEMENT

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 14 PRINCIPLES OF MANAGEMENT

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 14 PRINCIPLES OF MANAGEMENT

• Definition of esprit de corps

The common spirit existing in the members of a group and
inspiring enthusiasm, devotion, and strong regard for the honor of
the group.

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 BUREAUCRACY BY MAX WEBER

• Theory of authority structures and relations based on an ideal

type of organization is called a bureaucracy
• A form of organization characterized by division of labor, a
clearly defined hierarchy, detailed rules and regulations, and
impersonal relationships.
• Weber recognized that this “ideal bureaucracy” didn’t exist in
reality. Instead he intended it as a basis for theorizing about
how work could be done in large groups.
• His theory became the structural design for many of today’s
large organizations.

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 BUREAUCRACY BY MAX WEBER

• Bureaucracy described by Weber, is a lot like scientific

management in its ideology.
• Both emphasized rationality, predictability, impersonality,
technical competence, and authoritarianism.
• Weber’s ideas were less practical than Taylor’s.
• His “ideal type” still describes many contemporary
organizations attests to their importance.

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 CHARACTERISTICS OF
WEBER'S BUREAUCRACY

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 THE WAY TODAY’S MANAGERS USE GENERAL
ADMINISTRATIVE THEORY

• Several of our current management ideas and practices can be

directly traced to the contributions of general administrative
theory.
• The functional view of the manager’s job can be attributed to
Fayol. In addition, his 14 principles serve as a frame of
• reference from which many current management concepts—
such as managerial authority, centralized decision making,
reporting to only one boss, and so forth have evolved.

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THE WAY TODAY’S MANAGERS USE GENERAL
ADMINISTRATIVE THEORY
• Weber’s bureaucracy was an attempt to formulate an ideal
prototype for organizations.
• Although many characteristics of Weber’s bureaucracy are still
evident in large organizations, his model isn’t as popular today
as it was in the twentieth century.
Limitation of bureaucratic structure
• Many managers feel that a bureaucratic structure hinders
individual employees’ creativity and limits an organization’s
ability to respond quickly to an increasingly dynamic
environment.
• Even in flexible organizations of creative professionals—such
as Microsoft, Samsung, General Electric, or Cisco Systems—
some bureaucratic mechanisms are necessary to ensure that
resources are used efficiently and effectively.

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 QUANTITATIVE APPROACH

• Quantitative approach, which is the use of quantitative

techniques to improve decision making. This approach also is
known as management science.
• The quantitative approach evolved from mathematical and
statistical solutions developed for military problems during
World War II.

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 WHAT EXACTLY DOES THE QUANTITATIVE
APPROACH DO?

• It involves applying statistics, optimization models,

information models, computer simulations, and other
quantitative techniques to management activities.

• Linear programming is a technique that managers use to

improve resource allocation decisions.

• Work scheduling can be more efficient as a result of critical-

path scheduling analysis.

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 WHAT EXACTLY DOES THE QUANTITATIVE
APPROACH DO?

• The economic order quantity model helps managers determine

optimum inventory levels.
Each of these is an example of quantitative techniques being
applied to improve managerial decision making.
Another area where quantitative techniques are used
frequently is in total quality management
• Total quality management, or TQM, is a management
philosophy devoted to continual improvement and responding
to customer needs and expectations.

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 TOTAL QUALITY MANAGEMENT, OR TQM

• The term customer includes anyone who interacts with the

organization’s product or services internally or externally.
• It encompasses employees and suppliers as well as the people
who purchase the organization’s goods or services.
• Continual improvement isn’t possible without accurate
measurements, which require statistical techniques that
measure every critical variable in the
• organization’s work processes.
• These measurements are compared against standards to
identify and correct problems.

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 QUALITY MANAGEMENT

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 USE THE QUANTITATIVE APPROACH

• The quantitative approach contributes directly to management

decision making in the areas of planning and control.
• when managers make budgeting, queuing,scheduling, quality
control, and similar decisions, they typically rely on
quantitative techniques.
• Specialized software has made the use of these techniques
less intimidating for managers, although many still feel
anxious about using them.

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 BEHAVIORAL APPROACH

• The field of study that researches the actions

(behavior) of people at work is called organizational
behavior (OB).
• Much of what managers do today when managing
people— motivating, leading, building trust, working
with a team, managing conflict, and so forth—has
come out of OB research.

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 BEHAVIORAL APPROACH

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 EARLY OB ADVOCATES

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 HAWTHORNE STUDIES

• The most important contribution to the OB field came out of

the Hawthorne Studies, a series of studies conducted at the
Western Electric Company Works in Cicero, Illinois.
• These studies, which started in 1924, were initially designed
by Western Electric industrial engineers as a scientific
management experiment.

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 HAWTHORNE STUDIES

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 TODAY’S MANAGERS USE THE BEHAVIORAL
APPROACH

• The behavioral approach has largely shaped how today’s

organizations are managed from the elements of the
behavioral approach.
 from the way that managers design jobs
 to the way that they work with employee teams
 to the way that they communicate.
• Early OB advocates proposed and the conclusions from the
Hawthorne studies have provided the foundation for our
current theories of motivation, leadership, group behavior
and development, and numerous other behavioral approaches.

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 CONTEMPORARY APPROACH

• Many elements of the earlier approaches to management

theory continue to influence how managers manage.
• Most of these earlier approaches focused on
managers’concerns inside the organization.
• Starting in the 1960s, management researchers began to look
at what was happening in the external environment outside
the boundaries of the organization.
• Two contemporary management perspectives—systems and
contingency—are part of this approach

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 CONTEMPORARY APPROACH

• A system is a set of interrelated and interdependent parts

arranged in a manner that produces a unified whole.
• The two basic types of systems are closed and open.
• Closed systems are not influenced by and do not interact with
their environment.
• In contrast, open systems are influenced by and do interact
with their environment.
• Today, describe organizations as systems .

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 CONTEMPORARY APPROACH

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 CONTEMPORARY APPROACH

• An organization takes in inputs (resources) from the

environment and transforms or processes these
resources into outputs that are distributed into the
environment. The organization is “open” to and
interacts with its environment.

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 CONTEMPORARY APPROACH OR SYSTEM
APPROACH
• Researchers envisioned an organization as being made up of
“interdependent factors, including individuals, groups,
attitudes, motives, formal structure, interactions, goals, status,
and authority.”
• This means that as managers coordinate work activities in
the various parts of the organization
• They ensure that all these parts are working together so the
organization’s goals can be achieved.
• Example, the systems approach recognizes that, no matter
how efficient the production department might be, the
marketing department must anticipate changes in customer
tastes and work with the product development department in
creating products customers want or the organization’s overall
performance will suffer.
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 CONTEMPORARY APPROACH

• In addition, the systems approach implies that decisions and

actions in one organizational area will affect other areas.
• Example, if the purchasing department doesn’t acquire the
right quantity and quality of inputs, the production department
won’t be able to do its job.
• Finally, the systems approach recognizes that organizations
are not self contained. They rely on their environment for
essential inputs and as outlets to absorb their outputs.
• No organization can survive for long if it ignores government
regulations, supplier relations, or the varied external
constituencies upon which it depends.

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 CONTEMPORARY APPROACH

• The contingency approach (sometimes called the situational

approach) says that organizations are different, face different
situations (contingencies), and require different ways of managing.
• A good way to describe contingency is “if, then.”
• If this is the way my situation is, then this is the best way for me to
manage in this situation.
• It’s intuitively logical because organizations and even units within
the same organization differ—in size, goals, work activities, and the
like. It would be surprising to find universally applicable
management rules that would work in all situations.
• The way to manage “depends on the situation” and another to say
what the situation is.

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 POPULAR CONTINGENCY VARIABLES

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 CULTURE AND OTHER IMPORTANT ASPECTS
OF MANAGEMENT’S CONTEXT
• The Manager :Omnipotent or symbolic
• The dominant view in management theory and society in
general is that managers are directly responsible for an
organization’s success or failure. This perspective is called as
omnipotent view of management.
• In contrast, others have argued that much of an organization’s
success or failure is due to external forces outside managers’
control. This perspective is called the symbolic view of
management.

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 OMNIPOTENT VIEW

• This view of managers as omnipotent is consistent with the

stereotypical picture of the take-charge business executive who
overcomes any obstacle in seeing that the organization
achieves its goals.
• This view isn’t limited to business organizations. It also
explains turnover among college and professional sports
coaches, who are considered the “managers” of their teams.
• Coaches who lose more games than they win are usually fired
and replaced by new coaches who are expected to correct the
poor performance.

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 SYMBOLIC VIEW

• The symbolic view says that a manager’s ability to affect

performance outcomes is influenced and constrained by
external factors.
• It is unreasonable to expect managers to significantly affect an
organization’s performance.
• Performance is influenced by factors over which managers
have little control such as the economy, customers,
governmental policies, competitors’ actions, industry
conditions, and decisions made by previous managers

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 SYMBOLIC VIEW

• This view is labeled “symbolic” because it’s based on the

belief that managers symbolize control and influence.
• They do that by developing plans, making decisions, and
engaging in other managerial activities to make sense out of
random, confusing, and ambiguous situations.
• The actual part that managers play in organizational success or
failure is limited according to this view.

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 SYMBOLIC VIEW

• Decisions and actions

are constrained.
• External constraints
come from the
organization’s
environment
• Internal constraints
come from the
organization’s culture.

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 EXTERNAL ENVIRONMENT

• The term external environment refers to factors and forces

outside the organization that affect its performance.

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COMPONENTS OF EXTERNAL ENVIRONMENT

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COMPONENTS OF EXTERNAL ENVIRONMENT

• The economic component encompasses factors such as interest

rates, inflation, changes in disposable income, stock market
fluctuations, and business cycle stages.
• The demographic component is concerned with trends in
population characteristics such as age, race, gender, education
level, geographic location, income, and family composition.
• The political/legal component looks at federal, state, and local
laws, as well as global laws and laws of other countries. It also
includes a country’s political conditions and stability.

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COMPONENTS OF EXTERNAL ENVIRONMENT

• The socio cultural component is concerned with societal and

cultural factors such as values, attitudes, trends, traditions,
lifestyles, beliefs, tastes, and patterns of behavior.
• The technological component is concerned with scientific or
industrial innovations.
• The global component encompasses those issues associated
with globalization and a world economy.
• Although all these components pose potential constraints on
managers’ decisions and actions, most important two of
them—the economic and demographic aspects.

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 ENVIRONMENT AFFECTS MANAGERS

• Three ways the environment constrains and challenges

managers

first, through its impact on jobs and employment

 next, through the environmental uncertainty that is
present: Environmental uncertainty refers to the degree of
change and complexity in an organization’s environment
 finally, through the various stakeholder relationships that
exist between an organization and its external
constituencies.

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 ENVIRONMENTAL UNCERTAINTY MATRIX

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 ENVIRONMENTAL UNCERTAINTY MATRIX

• The first dimension of uncertainty is the degree of change.

• If the components in an organization’s environment change
frequently, it’s a dynamic environment.
• If change is minimal, it’s a stable one. A stable environment
might be one with no new competitors, few technological
breakthroughs by current competitors, little activity by
pressure groups to influence the organization, and so forth.
• If change is predictable, is that considered dynamic?

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 ENVIRONMENTAL UNCERTAINTY MATRIX

• The other dimension of uncertainty describes the degree of

environmental complexity, which looks at the number of
components in an organization’s environment and the extent of
the knowledge that the organization has about those
components.
• An organization with fewer competitors, customers, suppliers,
government agencies, and so forth faces a less complex and
uncertain environment.
• Organizations deal with environmental complexity in various
ways. Complexity is also measured in terms of the knowledge
an organization needs about its environment.

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 CONCEPT OF ENVIRONMENTAL
UNCERTAINTY INFLUENCE MANAGERS

• Uncertainty poses a threat to an organization’s effectiveness,

managers try to minimize it. Given a choice, managers would
prefer to operate in the least uncertain environments. However,
they rarely control that choice.
• In addition, the nature of the external environment today is
that most industries today are facing more dynamic change,
making their environments more uncertain.

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 MANAGING STAKEHOLDER RELATIONSHIP

• Stakeholders are any constituencies in the organization’s

environment that are affected by an organization’s decisions
and actions.
• These groups have a stake in or are significantly influenced by
what the organization does.
• In turn, these groups can influence the organization.
• Some of these stakeholders also, in turn, may influence
decisions and actions of Starbucks’ managers.
• The idea that organizations have stakeholders is now widely
accepted by both management academics and practicing
managers.

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 ORGANIZATIONAL STACKHOLDERS

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 ORGANIZATIONAL CULTURE

• An organization has a personality, which is called as its

culture. And that culture influences the way employees act and
interact with others.
• Organizational culture has been described as the shared values,
principles, traditions, and ways of doing things that influence
the way organizational members act.
• In most organizations, these shared values and practices have
evolved over time and determine, to a large extent, how
“things are done around here.”

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 ORGANIZATIONAL CULTURE

• Culture implies three things.

First, culture is a perception. It’s not something that can be
physically touched or seen, but employees perceive it on the
basis of what they experience within the organization.
Second, organizational culture is descriptive. It’s concerned
with how members perceive the culture and describe it, not
with whether they like it.
 Finally, even though individuals may have different
backgrounds or work at different organizational levels, they
tend to describe the organization’s culture in similar terms.
That’s the shared aspect of culture.

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 DIMENSIONS OF ORGANIZATIONAL
CULTURE

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 STRONG CULTURE

• All organizations have cultures, but not all cultures equally

influence employees’ behaviors and actions.
• Strong cultures—those in which the key values are deeply held
and widely shared—have a greater influence on employees
than do weaker cultures.
• Definition: Organizational cultures in which the key values
are intensely held and widely shared.

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 STRONG CULTURES VS WEAK CULTURES

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 IMPORTANCE OF STRONG CULTURE

• Why is having a strong culture important?

 Organizations with strong cultures, employees are more
loyal than are employees in organizations with weak
cultures.
 Strong cultures are associated with high organizational. if
values are clear and widely accepted, employees know what
they’re supposed to do and what’s expected of them, so they
can act quickly to take care of problems.
• Drawback
 strong culture also might prevent employees from trying
new approaches especially when conditions are changing
rapidly

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ESTABLISHING AND MAINTAINING CULTURE

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ESTABLISHING AND MAINTAINING CULTURE

• The original source of the culture usually reflects the vision of

the founders.
• Company founders are not constrained by previous customs
or approaches and can establish the early culture by
articulating a vision of what they want the organization to be.
• The small size of most new organizations makes it easier to
instill that vision with all organizational members.
• certain organizational practices help maintain it.
• Employee selection process, managers typically judge job
candidates not only on the job requirements, but also on how
well they might fit into the organization.

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ESTABLISHING AND MAINTAINING CULTURE

• Job candidates find out information about the organization and

determine whether they are comfortable with what they see.
• The actions of top managers also have a major impact on the
organization’s culture
• Finally, organizations help employees adapt to the culture
through socialization, a process that helps new employees
learn the organization’s way of doing things.

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ESTABLISHING AND MAINTAINING CULTURE

• BENEFIT OF SOCIALIZATION
One benefit of socialization is that employees understand
the culture and are enthusiastic and knowledgeable with
customers.
Another benefit is that it minimizes the chance that new
employees who are unfamiliar with the organization’s
culture might disrupt current beliefs and customs.

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 EMPLOYEES LEARN CULTURE

• Employees “learn” an organization’s culture in a number of

ways.
• The most common are
 Stories,
 Rituals,
 Material symbols,
 Language.

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 EMPLOYEES LEARN CULTURE

• STORIES Organizational “stories” typically contain a

narrative of significant events or people including such things
as the organization’s founders, rule breaking, reactions to past
mistakes, and so forth.
• Power that rituals can have in shaping what employees believe
is important.
• Annual “ritual” plays a significant role in establishing desired
levels of motivation and behavioral expectations, which is,
after all, what management hopes an organization’s culture
does.

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 EMPLOYEES LEARN CULTURE

• MATERIAL ARTIFACTS AND SYMBOLS

 The layout of an organization’s facilities, how employees
dress, the types of automobiles provided to top executives, and
the availability of corporate aircraft are examples of material
symbols.
 Others include the size of offices, the elegance of furnishings,
executive “perks” (extra benefits provided to managers such as
health club memberships, use of company-owned facilities,
and so forth), employee fitness centers or on-site dining
facilities, and reserved parking spaces for certain employees.

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 EMPLOYEES LEARN CULTURE

• Material symbols convey to employees who is important and

the kinds of behavior (for example, risk taking, conservative,
authoritarian, participative, individualistic, and so forth) that
are expected and appropriate.
• LANGUAGE
Many organizations and units within organizations use
language as a way to identify and unite members of a culture

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 CULTURE AFFECTS MANAGERS
• organization’s culture constrains particularly to managers from
what they can and cannot do and how they manage.
Look busy even if you’re not.
 If you take risks and fail around here, you’ll pay dearly for
it.
 Before you make a decision, run it by your boss so that he
or she is never surprised.
We make our product only as good as the competition
forces us to.
 What made us successful in the past will make us
successful in the future.
If you want to get to the top here, you have to be a team
player.
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 MANAGERIAL DECISIONS AFFECTED BY
CULTURE

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 CURRENT ISSUES IN ORGANIZATIONAL
CULTURE

• Their organizational cultures have played a crucial role.

• Three current cultural issues:
 Creating an innovative culture
 Creating a customer responsive culture
 Nurturing workplace spirituality.

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 CURRENT ISSUES IN ORGANIZATIONAL
CULTURE

• Creating an innovative culture

According to Swedish researcher Goran Ekvall, it would be
characterized by the following:
Challenge and involvement – Are employees involved in,
motivated by, and committed to long-term goals and success
of the organization?
Freedom – Can employees independently define their
work, exercise discretion, and take initiative in their day-to-
day activities?

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 CURRENT ISSUES IN ORGANIZATIONAL
CULTURE

Trust and openness – Are employees supportive and

respectful to each other?
Idea time – Do individuals have time to elaborate on new
ideas before taking action?
Playfulness/humor – Is the workplace spontaneous and fun?
Conflict resolution – Do individuals make decisions and
resolve issues based on the good of the organization versus
personal interest?
 Debates – Are employees allowed to express opinions and
put forth ideas for consideration and review?
Risk-taking – Do managers tolerate uncertainty and
ambiguity, and are employees rewarded for taking risks?

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 CURRENT ISSUES IN ORGANIZATIONAL
CULTURE

• Creating a Customer-Responsive Culture

Five characteristics of customer-responsive cultures and
offers suggestions as to what managers can do to create that
type of culture

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 CURRENT ISSUES IN ORGANIZATIONAL
CULTURE

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 CURRENT ISSUES IN ORGANIZATIONAL
CULTURE

• Spirituality and Organizational Culture

• workplace spirituality :
It’s a culture in which organizational values promote a sense
of purpose through meaningful work taking place in the
context of community.
 Organizations with a spiritual culture recognize that people
have a mind and a spirit, seek to find meaning and purpose in
their work, and desire to connect with other human beings and
be part of a community.
 And such desires aren’t limited to workplaces, as a recent
study showed that college students also are searching for
meaning and purpose in life.

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 CURRENT ISSUES IN ORGANIZATIONAL
CULTURE

• Research shows that spiritual organizations tend to have five

cultural characteristics.
 Strong sense of purpose
 Focus on individual development
 Trust and openness
 Employee empowerment
 Toleration of employee expression

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 CURRENT ISSUES IN ORGANIZATIONAL
CULTURE

• Critics of the spirituality movement have focused on two

issues:
Legitimacy (Do organizations have the right to impose
spiritual values on their employees?)
Economics (Are spirituality and profits compatible?).

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 CURRENT ISSUES IN ORGANIZATIONAL
CULTURE

• spirituality and profits are compatible.

• Limited evidence suggests that the two may be compatible.
 One study found that companies that introduced spiritually
based techniques improved productivity and significantly
reduced turnover.
 Another found that organizations that provided their
employees with opportunities for spiritual development
outperformed those that didn’t.
 Others reported that spirituality in organizations was
positively related to creativity, ethics, employee satisfaction,
job involvement, team performance, and organizational
commitment
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 MANAGER VS ENTREPRENEUR

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 DIFFERENCE BETWEEN ADMINISTRATION
AND MANAGEMENT

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 BUSINESS ORGANIZATION

• A business (also called a

company, enterprise or firm)
is a legally recognized
organization designed to
provide goods and/or
services to consumers.

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 TYPES OF BUSINESS ORGANIZATION

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 CHOOSING A FORM OF BUSINESS
ORGANIZATION

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 CHOOSING A FORM OF BUSINESS
ORGANIZATION

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SOLE PROPRIETORSHIP/ SOLE TRADER

– It is a type of business entity which is owned and run by

one individual
 CHARACTERISTICS OF SOLE
PROPRIETORSHIP

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 ADVANTAGES OF SOLE PREITORSHIP

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DISADVANTAGES OF SOLE PROPREITORSHIP

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 JOINT HINDU FAMILY BUSINESS

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 JOINT HINDU FAMILY BUSINESS

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 ADVANTAGES OF HUFs

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 DISADVNTAGES OF HUFs

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 PARTNERSHIP FIRM

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 CHARACTERISTICS OF PARTNERSHIP

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 ADVANTAGES OF PARTNERSHIP

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 DISADVANTAGES OF PARTNERSHIPS

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 JOINT STOCK COMPANY

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 CHARACTERISTICS OF A CORPORATION

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 ADVANTAGES OF A CORPORATION

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 DISADVANTAGES OF A CORPORATION

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 TWO TYPES PF CORPORATIONS

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 TWO TYPES PF CORPORATIONS

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 CO-OPERATIVE SOCIETY

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 CHARACTERISTICS OF CO-OPERATIVE

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 ADVANTAGES OF CO-OPERATIVE

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 DISADVANTAGES OF A CO-OPERATIVE

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