BUSINESS MANAGEMENT A1 Session 1-2 September 30, 2014

What is management about … ? Game.. Homework – What does it take to be a manager? Good manager? At what level? – refer to and file posted in IS by Thursday Oct 2 nd, 2014 – Self-assessment test – Looking for core competencies of a manager inside of you

What is management about … ? Getting things done through people … In an organizational setting … Doing things now to get things done in the future … But how? By planning and administering (example) (planning & administration competency) – A factory … logistics dept manager … gathers info from sales dept. about times and dates when goods are to be shipped -> learns about who has what shifts -> analyzes who is best for what trucks’ destinations (language competencies of logistics HR) -> sets up a working schedule (shifts) for employees

Getting work done … By communicating (communication competency) – How does he best communicate the schedule? (in what form? Formal? Informal? Does he negotiate? Should he negotiate? Why/not?) – To whom? All employees in the dept? Their team leader? Why? – When? Next day? Why? By working together with others (teamwork competency) – knowledge, time (mother cannot stay late at work every day as she needs to pick up her child from kinder-garden … etc.) – How do you create a supportive and dynamic team environment? What if two workers hate each other? Do you want them to load up one truck together?

Getting work done … By setting a strategic path (strategic action competency) – What if the goods must be delivered by Saturday every week because the law prohibits its transportation on Sundays? -> do you have this knowledge & understanding of this industry? – => how do you plan the shipments? Will you not let employees stay at home on Fridays? (organizational changes)=> sales strategy => sales plans set accordingly => pricing strategy => marketing strategy … By being able to work with people of different cultures and backgrounds (multicultural competency) – Understanding and feeling other cultures, empathy -> employing cheap yet educated labor from East may be insensitive and not proper

Getting work done … By being able to practice self-management (self-management competency) – Equality of treatment of all subordinates regardless of race, religion, language, etc. -> ethics – Keeping promises -> integrity? – Daily life and work shall be balanced for all -> would you ask subordinates to work 3 hours of overtime every day w/without adequate compensation? (lifting heavy boxed goods) – How do you encourage people to work more efficiently in a logistics dept?

Cell-phone R&D project management example – 1 observer per group How much $ do we have available? E.g. 100,000 EUR? – What for? – How many people involved? Who is paid? How much? When? Planning & organizing a project? – What do we do ourselves? (knowledge, time, $ capacities) – What do we outsource? (knowledge, time, $ capacities) Time management of the project? – Deadlines? Why? -> e.g. Apple wants to present to the world a next generation phone by a certain date – Breakdown of deadlines for individual steps – operations … ?

Cell-phone R&D project management example – 1 observer per group Who will work with whom? Why? How do you decide this? -> team work? At what pace do you plan R&D projects? How often do you plan the release of a new cell-phone? What kinds? Why? Who do you hire and why? Based on what criteria? How much of what are you willing and ready to invest in this project? Why?

Terminology – home assignment Organization … define Manager … define all items below – functional vs. general – First-line vs. middle vs. top managers Managing … define all items below – Planning – Organizing – Leading – Controlling – Evaluating – Taking corrective actions, changing plans, etc.

HISTORY OF MANAGEMENT THOUGHT Session 2 October 7, 2014

Traditional viewpoint of management – the oldest concept Bureaucratic management – Belief – only one best way to manage an organization (business) – Max Weber (Germany) – A blueprint of how an org should operate – by implementing a formal system of: fixed rules impersonal attitudes and behavior clear division of labor strict hierarchical structure, detailed authority structure – Traditional – based on custom, ancestry, gender, birth-order – Charismatic – Rational-legal – using uniformly established and applied laws & rules long-lasting career commitment rationality of behavior

Traditional viewpoint of management – the oldest concept Bureaucratic management (continued) - Home assignment – examples …? – Advantages, disadvantages?

Traditional viewpoint of management – the oldest concept Scientific management – US born concept – end of 1800s – production-based companies – need to plan what and how much of what to manufacture and when, planning the resources, HR, scheduling, etc. – Frederick W. Taylor (USA) – Based on observation and factual information – Aim to increase efficiency of work -> lower unit costs, time utilization, higher productivity, organization of tasks, etc. Time & motion studies – measuring physical motion of workers (no robots, just tools) Specialization needed – authority thru specialized knowledge and expertise of a narrow area

Traditional viewpoint of management – the oldest concept Scientific management (continued) – Production scheduling – nowadays used for project planning – visual plans and progress reports -> Gantt charts -> home assignment – Henry Gantt – examples for both …? (home assignment) – Advantages, disadvantages? (home assignment)

Traditional viewpoint of management – the oldest concept Administrative management – French born concept – early 1900s – successful managers must follow formal structure and processes in an organization with a clearly defined goals and tasks to meet these goals (Henri Fayol) – E.g. unity of command principle – subordinate shall report to only one supervisor (manager) – examples …? (home assignment) – Advantages, disadvantages? (home assignment)

Behavioral viewpoint of management Workers are no longer viewed as robots – 1930s … managers began to realize that workers are human beings with needs, values, and desire for respect – i.e. workers do not perform up to their physiological capabilities – i.e. focusing on human aspects of organizations Hawthorne studies – 1924 – 1933 … Western Electric Company Hawthorne plant – Illumination tests … – Results?

Systems viewpoint of management Systems types Quantitative techniques

Contingency viewpoint of management Variables

Quality viewpoint of management Quality control process Lessons learned