Management

Chapter 15

The Transferability

of Management

Definition of terms

• Concepts -are generally accepted

ideas or thought about management

• Principles -refers to the fundamental or

general truths of management

Definition of terms (con’t)

• Theories -are systematic syntheses of

concepts and principles

• Practice -the application of

management theory to reality in the light of situations

The need for Management Theory and practice

“We view management as the single most critical activity in connection with economic progress..” – Farmer and Richman

Two opposing views

• Culture – Bound Theory

- Gonzales and McMillan• Culture – Free Theory - Haire, Ghiselli & Porter - Harbison and Myers - Flores

What is transferable?

• Science -organized body of fundamental

knowledge as expressed in basic concepts, theories, and principles.

• Art -the application of these basic

concepts, theories and principles to a given situation.

Management and the Environment

• Farmer – Richman Model

-Educational Variables -Sociological – Cultural

Variables -Legal Political Variables -Economic Variables

Farmer – Richman Model

External Variables-Educational-Sociological-Cultural-Legal-Political-Economic

Elements of the Management

Process-Planning-Organizing-Staffing-Directing-ControllingPolicy making in operating

ManagementAnd

Managerial Effectiveness

System Efficiency Firm Efficiency

Determine

Determine

AFFECT

Negandhi – Estefan ModelMANAGEMENT

PHILOSOPHYManagement attitude

towards:

-employees-consumers-suppliers-stockholders-government-community

ENVIRONMENTAL FACTORS

-Socio-Economic-Educational-Political-Legal and Cultural

MANAGEMENT PRACTICES

-Planning-Organizing-Staffing-Motivating and Directing-Controlling

Management Effectiveness

Enterprise Effectiveness

AFFECT

Affect

Koonts Model Management Science-Concepts-Principles-Theory-Knowledge of General Application

EnterpriseFunction Science

-Marketing-Engineering-Production-FinanceHuman and Material

Resources

External Environment-Educational-Political-Legal-Economic--Technological-Sociological-Ethical

Non-Management Practices

-Marketing-Engineering-Production-Finance

Management Practices

-Approaches-Techniques-Objectives-Policies-Programs

Enterpris

eEffectiveness Effectiveness

due to management

factors

Effectiveness due to

management factors

AFFECT

AFFECT

Affect

AFFECT

Dueto

Chapter 16

InternationalManagement

• Exportation of goods and services

• Granting and Licensing agreement for producing foods

• Involvement of joint ventures

• Engaging in Management Contracts

• Setting up of wholly owned subsidiaries

The Need for International Managers

Managing International Operations

• Planning -the process of setting the

objectives to be accomplished by an organization during a future time period and deciding on the methods of reaching them

• Organizing -the process of grouping and

assigning activities and providing the necessary authority to carry out the activities

• Staffing -refers to the task of filling

positions with the most qualified people

•Motivating -getting people to contribute

their maximum effort towards the attainment of organizational activities

• Controlling -is the management activity

for ensuring the achievements of an organization’s objectives

Manager’s Role• First-he should never assume that western

methods are automatically superior

• Second-he should undertake an analysis of

possible problem areas…

• Third-he should develop techniques that

carefully dovetail with local situation and culture.

Chapter 17

Japanese Management :An Analysis

Different Areas

Corporate Paternalism

• oyabun (employer) -a person with a status of

oya(parent)• kobun (employee) - a person with a status of

ko(child)

1. Pre-Employment Training Program

2. New Employee Training Program

a. Orientation b. Work Experience c. Residency

Employment “Indoctrination” Training

• One of the ingredients of Japanese Managerial success

• Gives employees a sense of security

Employment for Life

• Prevents young people from becoming managers in Japanese companies.

• Pay is not set by kind of work done by the employee.

Seniority, Promotion, Pay

Collective Decision Making

• Decisions are generated from top to bottom

• Ringi -a decision making which begins

with a manager at a lower organization level sending out his decisions to his superiors

• Ringisho -document drafted by the

manager where he describes the matter to be decided and his recommendations

Quality Control Circles

• Performance - factor that has been

responsible for the extraordinary success of Japan• Works from bottom up

Government Support of Business

• MIT I(Ministry of International Trade and Industry)

-sets goals for specific industries and gives directions to much of Japan’s economic growth.

• Bank of Japan• Government’s Tax System

Japanese Propensity for Saving

• Japanese squirrel away 17% of their income in

savings account.

Kaizen

• On-going improvement• Aims for Total Quality of

product, process and people

~END~