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Introduction To Business Administration

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51 views38 pages

Introduction To Business Administration

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Mr.

Mansilla
Learning Objectives:
•Define management and its functions;
•Describe how the study of management
evolves through the years; and
•Name the different management gurus and
their contribution in the field of management.
According to Frederick Winslow Taylor,
•“Management is an art of knowing what to do, when to
do and see that it is done in the best and cheapest way.”
According to Harold Koontz,
•“Management is an art of getting things done through
and with people in formally organized groups. It is an
art of creating an environment in which people can
perform and individuals can cooperate towards
attainment of group goals. “

• The evolution of management is a
process that started in the early days of
man. It began since the period man
saw the need to live in groups. The
sharing was done accord to the
masses’ strength, mental capacities,
and intelligence. Management has
been practiced in one way or the other
since civilization began.
• Classical Management Theory- developed during
the Industrial Revolution when new problems
related to the factory system began to appear.

• Major Contributors:
• Frederick Taylor – is often called the “Father of
scientific management.” Taylor believed that
organizations should study tasks and develop
precise procedures.
• Henry Gantt – an associate of Taylor, developed
the Gantt chart, a bar graph that measures planned
and completed work along each stage of
production.
14 Principles of Management
Division of work When employees are specialized, output can increase because
they become increasingly skilled and efficient.

Authority and Managers must have the authority to give orders, but they must
responsibility also keep in mind that with authority comes responsibility.

Discipline Discipline must be upheld in organizations, but methods for


doing so can vary.
Unity of Command Employees should have only one direct supervisor.

Unity of Direction Teams with the same objective should be working under the
direction of one manager, using one plan. This will ensure that
action is properly coordinated.

Subordination of The interests of one employee should not be allowed to become


Individual Interest more important than those of the group. This includes managers.
Remuneration of Employee satisfaction depends on fair remuneration for everyone.
Personnel This includes financial and non-financial compensation.

Centralization This principle refers to how close employees are to the decision-
making process. It is important to aim for an appropriate balance.

Scalar Chain Employees should be aware of where they stand in the organization's
hierarchy, or chain of command

Order The workplace facilities must be clean, tidy and safe for employees.
Everything should have its place.

Equity Managers should be fair to staff at all times, both maintaining


discipline as necessary and acting with kindness where appropriate.

Stability of Managers should strive to minimize employee turnover. Personnel


Tenure planning should be a priority.

Initiative Employees should be given the necessary level of freedom to create


and carry out plans.
Esprit De Corps Organizations should strive to promote team spirit and unity.
• Major Contributors:
• Elton Mayo – his contributions came as part of the
Hawthorne studies, a series of experiments that
rigorously applied classical management theory only to
reveal its shortcomings. Together with F.J. Roethlisberger,
concluded that the increase in productivity resulted from
the supervisory arrangement rather than the changes in
lighting or other associated worker benefits.
• Abraham Maslow - a practicing psychologist, developed
one of the most widely recognized need theories, a theory
of motivation based upon a consideration of human needs.
3. Quantitative School of Management- involves the use of
quantitative techniques, such as statistics, information models, and
computer simulations, to improve decision-making.
4. Systems Management Theory - encourages managers to look at
the organization from a broader perspective. It composed of four
elements:
•Inputs
•Transformation processes
•Outputs
•Feedback
5. Contingency School of Management-
can be summarized as an “it all depends”
approach. It avoids the classical “one best
way” arguments and recognizes the need to
understand situational differences and
respond appropriately to them.
• END
Lesson Objectives:
•Identify the roles of a manager;
and
•Identify and differentiate the
skills of a manager.
A manager is a person who is
responsible for a part of a company, i.e.,
they 'manage' the
company. Managers may be in charge of
a department and the people who work in
it. In some cases, the manager is in
charge of the whole business.
A role is a function assumed or part played by a manager or thing
in a particular situation.
Most organizations have three management levels:
•Low-level managers. Supervisors, section leads,
and foremen are examples of low-level management
titles. These managers focus on controlling and
directing.
•Middle-level managers. General managers, branch
managers, and department managers are all
examples of middle-level managers. They are
accountable to the top management for their
department’s function.
• Top-level managers. The board of directors,
president, vice-president, and CEO are all
examples of top-level managers. These managers
are responsible for controlling and overseeing the
entire organization. They develop goals, strategic
plans, company policies, and make decisions on
the direction of the business. In addition, top-level
managers play a significant role in the
mobilization of outside resources. Top-level
managers are accountable to the shareholders and
general public.
1. Technical – refers to the ability to use a special
proficiency or expertise to perform particular
tasks.
2. Human – demonstrates the ability to work well
in cooperation with others.
3. Conceptual – calls for the ability to think
analytically.
1. Analytical Thinking – ability to interpret and
explain patterns in information.
2. Behavioral Flexibility – ability to suit or
adapt personal behavior to react objectively
rather than subjectively to accomplish
organizational goals.
3. Leadership - ability to influence others to
perform tasks.
4. Oral Communication - ability to express
ideas clearly in words.
5. Personal Impact - ability to create a good
impression and instill confidence.
6. Resistance to stress - ability to perform under
stressful conditions.
7. Self-objectivity - ability to evaluate yourself
realistically.
8. Tolerance for uncertainty - ability to perform
in ambiguous situations.
9. Written communication - ability to express
ideas clearly in writing.
•END
• Enumerate and discuss the internal and
external environment of the firm;
• Identify and distinguish the various
forces/elements of the firm’s environment;
• Describe the local and international
business environment of a firm; and
• Explain the role of business in relation to
economy.
• BUSINESS ENVIRONMENT refers to any
economic activity being carried on by person or
persons, natural or juridical which involves buying,
selling, transporting, financing or rendering of
service in pursuit of profit. Environment in the
context of business refers to the surrounding
circumstances in which the business is operating.
• Internal Environment – It includes man,
management, machinery, material, and money
(5Ms), usually within the control of business.
• External Environment – Those factors which are
beyond the control of business enterprise. It is of
two types:
a. Demographic Environment – study of perspective of
population, i.e. its size, standard of living, growth rate,
age-sex composition, family size, income level (upper
level, middle level, and lower level), education level, etc.
b. International Environment – It is particularly important
for industries directly depending on import
or exports. The factors that affect the business are:
globalization, privatization, liberalization, foreign
business policies, cultural exchange.
c. Natural Environment – It includes natural resources,
weather, climatic conditions, port facilities, topographical
factors such as soil, sea, rivers, rainfall, terrain, etc.
• Domestic Environment in Business – includes the climate,
business policies, business facilities, business regulations and
rules, logistics, political setup, style of governance, culture,
traditions, belief system, economic, etc.
• Global Business Environment – factors outside the country the
business operates in.

Factors that Impact the Domestic Environment and


International Environment
• 1. Market Analysis 4. Access to Materials
• 2. Cyclical Changes 5. Infrastructure
• 3. Market Size 6. Labor
Stages of Economic Development
•END

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