Principles Of Management - Easy

MME 4272 ENGINEERING MANAGEMENT 2

INTRODUCTION TO THE PRINCIPLES OF MANAGEMENT

Principle of Management

Principle of Management

111-2

Engineering is based on application of physics, chemistry, biology, geology, mathematical and variety of physical sciences aimed towards solving specific applied problems.

Management involves the application of psychology, sociology, economics, statistics, accounting, finance and marketing and production methods

MM

E 3

113 W

eek 1

Management Key ConceptsManagement Key Concepts

Organizations: People working together and coordinating their actions to achieve specific goals.

Goal: A desired future condition that the organization seeks to achieve.

Management: The process of using organizational resources to achieve the organization’s goals by...

Planning, Organizing, Leading, and Controlling

1-3

Additional Key ConceptsAdditional Key Concepts

Resources are organizational assets and include:

People, Machinery, Raw materials, Information, skills, Financial capital.

Managers are the people responsible for supervising the use of an organization’s resources to meet its goals.

1-4

Achieving High PerformanceAchieving High Performance

Organizations must provide a good or service desired by its customers.

David Johnson of Campbell Soup manages his firm to provide quality food products.

Physicians, nurses and health care administrators seek to provide healing from sickness.

McDonald’s restaurants provide burgers, fries and shakes that people want to buy.

1-5

Organizational PerformanceOrganizational PerformanceMeasures how efficiently and effectively managers use resources to satisfy customers and achieve goals.Efficiency: A measure of how well resources are used to achieve a goal.

Usually, managers must try to minimize the input of resources to attain the same goal.

Effectiveness: A measure of the appropriateness of the goals chosen (are these the right goals?), and the degree to which they are achieved.

Organizations are more effective when managers choose the correct goals and then achieve them.

1-6

Managerial FunctionsManagerial Functions

Henri Fayol was the first to describe the four managerial functions when he was the CEO of a large mining company in the later 1800’s. Fayol noted managers at all levels, operating in a for profit or not for profit organization, must perform each of the functions of:

Planning, organizing, leading and controlling.

1-7

Four Functions of ManagementFour Functions of Management

PlanningPlanningChoose Choose GoalsGoals

OrganizingOrganizingWorking Working togethertogether

LeadingLeading Coordinate

ControllingControllingMonitor & measureMonitor & measure

1-8

PlanningPlanning

Planning is the process used by managers to identify and select appropriate goals and courses of action for an organization.

3 steps to good planning :1. Which goals should be pursued?2. How should the goal be attained?3. How should resources be allocated?

– The planning function determines how effective and efficient the organization is and determines the strategy of the organization.

1-9

OrganizingOrganizingIn organizing, managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals.Managers will group people into departments according to the tasks performed.

Managers will also lay out lines of authority and responsibility for members.

An organizational structure is the outcome of organizing. This structure coordinates and motivates employees so that they work together to achieve goals.

1-10

LeadingLeading

In leading, managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals.

Leadership involves a manager using power, influence, vision, persuasion, and communication skills.

The outcome of the leading function is a high level of motivation and commitment from employees to the organization.

1-11

ControllingControllingIn controlling, managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance.Managers will monitor individuals, departments, and the organization to determine if desired performance has been reached.

Managers will also take action to increase performance as required.

The outcome of the controlling function is the accurate measurement of performance and regulation of efficiency and effectiveness.

1-12

How Are Vision & Mission Statements Used to

Set the Strategic Direction?

Vision

• How the organization wants to be perceived in the How the organization wants to be perceived in the future – what success looks like future – what success looks like • An expression of the desired end state An expression of the desired end state • Challenges everyone to reach for something Challenges everyone to reach for something significant – inspires a compelling futuresignificant – inspires a compelling future• Provides a long-term focus for the entireProvides a long-term focus for the entire organization organization

MM

E 3

113 W

eek 1

Mission Statement

• Captures the essence of why the organizationCaptures the essence of why the organization exists – Who we are, what we do exists – Who we are, what we do • Explains the basic needs that you fulfillExplains the basic needs that you fulfill• Expresses the core values of the organizationExpresses the core values of the organization• Should be brief and to the pointShould be brief and to the point• Easy to understandEasy to understand• If possible, try to convey the unique nature of your If possible, try to convey the unique nature of your organization and the role it plays that differentiates it organization and the role it plays that differentiates it from others from others

MM

E 3

113 W

eek 1

Vision Statements that explain who we are

Type of organizationProducts/servicesNeeds we fill

Statements that explain our direction, our purpose, our reason for being

What difference do we make?

Statements that explain what makes us uniqueValuesPeopleCombination of products and services

Business Vision

A statement that clearly defines the firm’s “reason” for being in business

Should significantly stretch the resources and capabilities of the firm

Should inspire people in the organization to achieve things they never thought possible

Should unite people in the organization toward the pursuit of one common goal

Business Vision A guiding philosophy

Consistent with organizational value

Influenced by the strengths and weaknesses of the business

Components of a Vision Core ideology

Core Values - timeless guiding principlesCore Purpose - reason for being

Envisioned futureBig Hairy Audacious Goals (BHAG) -

clearly articulated goals Vivid description - a graphic description of what success and the future will be like

Recognition of service to stakeholdersOwners/creditorsEmployeesCustomers

Mission Statements

The mission statement of an organization is normally short, to the point, and contains the following elements:

Provides a concise statement of why the organization exists, and what it is to achieve;States the purpose and identity of the organization;Defines the institution's values and philosophy; andDescribes how the organization will serve those affected by its work.

Examples of Mission StatementsWyffels Hybrids

Wyffels Hybrids is a regional agricultural seed company providing elite corn hybrids, high oil corn seed blends, and premium alfalfas to farmers of the U.S. midwest.

Examples – Good and BadMission Statements

To Make People Happy

To Explore the Universe and Search for Life and to Inspire the Next Generation of Explorers

NASA

Walt Disney

Does a good job of expressing the core values of the organization. Also conveys unique qualities about the organization.

Too vague and and unclear. Need more descriptive information about what makes the organization special.

MM

E 3

113 W

eek 1

Vision vs. Mission

The vision is more broad and future oriented – the goal on the horizon

The mission is more focused – how you will get to the horizon

25

IIUM VISION

“IIUM aims at becoming a leading international centre of

educational excellence which seeks to restore the dynamic and

progressive role of the Muslim Ummah in all branches of

knowledge for the benefit of all mankind”

26

Towards actualising the University's vision, the IIUM endeavours:i) To undertake the special and greatly needed task of

reforming the contemporary Muslim mentality and integrating Islamic Revealed Knowledge and Human Sciences in a positive manner.

iii) To promote the concept of Islamisation of human knowledge in teaching, research, consultancy, dissemination of knowledge and the development of academic excellence in this university.

ii) To produce better quality intellectuals, professionals and scholars by integrating the qualities of faith (iman), knowledge (`ilm), and good character (akhlaq) to serve as agents of comprehensive and balanced progress as well as sustainable development in Malaysia and in the Muslim world.

IIUM MISSION STATEMENTS

27

v) To exemplify an international community of dedicated intellectuals, scholars, professionals, officers and workers who are motivated by the Islamic world-view and code of ethics as an integral part of their work culture.

vi) To enhance intercultural understanding and foster civilization dialogues in Malaysia as well as across communities and nations.

vii)To develop an environment which instils commitment for life-long learning and a deep sense of social responsibility among staff and students.

iv) To nurture the quality of holistic excellence which is imbued with Islamic moral-spiritual values, in the process of learning, teaching, research, consultancy, publication, administration and student life.

28

The above Mission statements are summarised as consisting of the following major goals:

i) Integration

ii) Islamisation

iii) Internationalisation, and

iv) Comprehensive Excellence

Core Values

Timeless Guiding Principles

Core Values

Building your company’s vision (Collins & Porras, 1996)

• Companies that enjoy enduring success have core values and a core purpose that remain fixed while their business strategies and practices endlessly adapt to a changing world.

Core Values

Core values - A small set of timeless guiding principles

• Only a few values can be truly core • To identify the core values, determine the

values that are central and passionately held

• Values must stand the test of time, they do not change with the market, company’s change markets to remain true to core values.

Core Values

Core Purpose is the organization’s reason for being

• Reflects people’s idealistic motivation for doing the company’s work.

• Captures the soul of the organization. • You might achieve a goal or complete a strategy,

you cannot fulfill a purpose. • Nike’s core purpose - to experience the emotion of

competition, winning and crushing competitors• 3M’s core purpose - to solve unsolved problems

innovatively• Walt Disney’s core purpose - to make people happy

Core Values

General Electric "I believe that our reputation for integrity and honorable dealings is our most important asset. Your GE team believes that strong integrity is the foundation of great performance. I hold myself to a high standard, and I know you will do the same." Jeffrey Immelt, Chairman & CEO

Core Values

Google “We’re building a culture rooted in transparency, innovation, and scale.” Sergey Brin & Larry Page

Core Values

The Soul of Dell - Dell's success is built on a foundation of personal and professional integrity. We hold ourselves to standards of ethical behavior that go well beyond legal minimums. We never compromise these standards and we will never ask any member of the Dell team to do so either. We owe this to our customers, suppliers, shareholders and other stakeholders. And we owe it to ourselves because success without integrity is essentially meaningless. Michael Dell, Chairman

Core Values

People who articulate core values must answer a few questions:

• What core values do you personally bring to work?• What would you tell your children are the core

values at work and that you hope they will hold at work someday?

• If you awoke tomorrow with enough money to retire, would you continue to live those core values?

• If you start a new organization, what core values would you build into the new organization?

Core Values of Carroll School of Management

Honesty & Integrity, We are committed to promoting the highest standards of honesty and integrity

Mutual Respect, We are committed to fostering an environment in which every member of our community nurtures the spirit of trust, teamwork, openness and respect

Pursuit of Excellence, We are committed to creating an environment where all members of the community pursue the highest possible level of academic performance and personal development.

Personal Accountability, We are committed to fostering an environment where every member of the community understands and accepts responsibility for upholding and reinforcing our values

Why are Core Values Important?

There is a need for alignment between personal values and organizational values

When there is misalignment, bad things usually happen

When there is alignment, your potential increases significantly

Thank You