1. Introduction to Management
Welcome to MT140
Introduction to Management
Unit 2 Seminar – Foundations of Management
This seminar is being recorded

2. Instructor Contact Information
Professor: Dr. Janis McFaul
Home/ Office Phone:
Office Hours: Monday-Friday from 10:00 a.m. – 4:00 p.m. or by appointment
Kaplan Technical Support:
You don’t need to wait until office hours to contact me! I check my several times a day and I welcome your telephone calls! If you have a question, don’t wait! Ask immediately. 2

3. Agenda General Questions and Announcements Introduction
Business Organizations as Open Systems
Management Environmental Considerations / Q & A
Major Management Theories / Q & A
Conclusion of Seminar 3

4. It Is Not That We Aim Too High And Miss It……….
But That We Aim Too Low And We Reach It”
Michelangelo 4

5. Unit 2 Objectives During this unit we will:
Identify significant past and current management theories
2. Describe the business organization as an open system
3. Identify the role of internal and external environmental factors in business

6. Key Concepts
Organizations are open systems that are influenced by their environment and in turn, influence their environment.
All organizations must operate in a macroenvironment.
All organizations must operate within a competitive environment.

7. Businesses are Open Systems
Organizations that are affected by, and that affect, their environment.
The take in Inputs: In the form of goods and services to create products or services.
They produce Outputs: In the form of goods or services. These are in constant interaction with the firm’s environment.
These impact and are impacted by both the External Environment and the Macroenvironment.

8. Inputs Into The Open System
Raw Materials
Services
Equipment
Capital (Human Labor, Money, Intellectual, Managerial, etc.)
Information (Knowledge)

9. Outputs Into The Open System
Products (Example: Cars, Computers, Furniture, Groceries, etc.)
Services (Example: accountants, medical services providers, etc.).

10. External Environment
All relevant forces outside the firm’s boundaries. These include competitors, customers, the government, and the economy.
Examples:
Copyrights, patents, trademarks, government licenses
Industry-specific requirements for entry
Specific taxes
Interest rates for both customers and business
Technological changes that impact the firm (Example: iPods versus tape players; regular cameras versus digital cameras, etc.)

11. Any questions ?

12. Macroenvironment
A part of the External Environment that forms the general environment for the firm. Includes:
Governments (Government actions, rules, laws, regulations, etc.)
Economic Conditions (Amount of money, interest rates, etc.)
Other fundamental conditions that could affect the firm.

13. Competitive Environment
A part of the External Environment that forms the immediate environment surrounding the firm. Includes:
Customers: Current customers as well as potential customers.
Rival Firms: Size, efficiency, and market position of current competitors.
Potential rival firms: Size, efficiency, and market position of potential competitors. What could customers substitute for your product?
Suppliers and others: that the firm needs to conduct business (Distribution channels).

14. Barriers to Market Entry
New firms enter markets when barriers to entry are low and less enter when these increase. Barriers can originate from:
Government Policy
Capital Requirements
Brand Identification
Cost Disadvantages
Distribution Channels

15. Ultimately the Customer Decides!
Ultimately, it is the customer who determines the success or the failure of a business. Regardless of the type of customer involved, business organizations that create value for their customers will retain their customers and attract new ones. Those that fail to provide perceived value for the customer will eventually lose the customer and fail.
Profit is only the measure of how well a business provides value to its customers! Management plays a key role in determining how well a business provides this value.

16. Any questions ?

17. Management Theories
As you no doubt discovered as you watched the video “The Evolution of Management,” business management theories extend over many years and cover many different aspects of the management function. One way to describe these is to divide them into three broad categories: Scientific Management Theories, Bureaucratic Management Theories, and Human Relations Management Theories.

18. Management Theories (Continued)
Scientific Management Theories: Concerned with specific work tasks. These theories were called “scientific” because they introduced task definition and specific measurement to the process of work (Taylor, Fayol, etc.) Around 1900 until about 1940.
Our current POLC is derived from Henri Fayol’s Theory circa 1917! 18

19. Management Theories (Continued)
Bureaucratic Management Theories: These added to the measurement and specifications of earlier theories to recognize the need for structure, lines of authority, and control within the management of businesses. It responded to the growth of large business organizations by adding hierarchy to the business structure (Weber, etc. 1930s to 1950s). 19

20. Management Theories (Continued)
Human Relations Management Theories: This broad range of management theories responded to the impersonal approach of earlier theories by recognizing the uniqueness of humans and the need for managers to resolve the needs of the business with the needs of workers. Many of these come from the Behavioral Sciences (McClelland, Maslow, Lewin, McGregor, etc. 1930s to today). 20

21. HOMEWORK REVIEW – WEEK TWO
READING
This week's required reading is from Chapter 2 in the Bateman and Snell text pp Click the Chapter 2 icon above for an electronic version of Chapter 2. I would start reading at the first page of the chapter and read until the end of page 35!
This reading introduces the concept of a business organization as an open system and investigates the internal and external environmental forces that interact with this system. These forces act to shape the organization and in turn, are shaped by the organization.

22. HOMEWORK REVIEW – WEEK TWO
DISCUSSION QUESTION
Discussion scenario: Marc has opened a 24-Hour fitness center in a fast-growing city. Before purchasing the franchise and starting his new business, Marc looked at the one other fitness center currently operating in that area. In the same general area are video game rooms, fast food restaurants, a sports bar, a golf driving range, a sporting goods store, and a bowling alley. Marc believes that the one fitness center forms his competition. Based on your reading of “Substitutes and Complements” in pp of the text, do you agree with Marc or disagree? Why?

23. HOMEWORK REVIEW – WEEK TWO
DISCUSSION QUESTION
Based on your reading of “Substitutes and Complements” in pp of the text, do you agree with Marc or disagree? Why?
To earn 100% - you must quote you textbook!
From your syllabus:
Clarity and Organization of Writing (20%) of your post will be measured on the following criteria:
Posts were organized and  logical
No spelling or grammatical errors
References were used and cited properly

24. HOMEWORK REVIEW – WEEK TWO
ASSIGNMENT
MT140 Unit 2 Assignment
For this assignment, you must watch the video presentation on the Evolution of Management. You will find the video on page 2 of the Assignments page in your course.
Assignment Checklist:
Explain how the theories presented are different from one another
State which management theory you think is more important and why.
Respond in a paper consisting of 100 words and submit your paper to the dropbox.
Submit your Assignment to the correct unit Dropbox for grading before the close of the unit as an attachment.
Submit Assignment 2 to the Dropbox
Draft your Assignment paper of at least several paragraphs or more in MS Word format. Make sure to respond to items in the Assignment Checklist. Be sure your paper is well written in paragraph form, with correct spelling, grammar, and punctuation. Name your file according to the Kaplan file-naming convention. Observe print font and style guidelines found in the course syllabus.
1. Go to the Dropbox to submit your saved file.
2. Click the link that says 'Submit an Assignment'.
3. In the 'Submit to Basket' menu, select Unit 2: Assignment.
4. In the optional 'Comments' field, type any additional information you wish your instructor to see.
5. Click the button that says 'Add Attachments'.
6. Follow the steps listed to complete attaching your file.
You will be able to come back to the Dropbox and view your graded work or in the Gradebook after your instructor evaluates it.

25. HOMEWORK REVIEW – WEEK TWO
REVIEW QUIZ
MT140 Unit 2 Assignment
Tips for success…
Know about what demographics are
Understand what the macroenvironment economy refers to (interest rates, unemployment rates, etc.)
Define what role suppliers play in business
Describe what a regulator is in government as it pertains to the business world

26. Next Week: Unit 3 Planning!
Next week, we begin our examination of the four functions of management (POLC) with the Planning function. Professional business managers devote much of their time to planning at every level of the business organization. We will learn about the types of plans and how planning differs at different levels within the firm.
We will also familiarize ourselves with Sandwich Blitz, Inc. a little business case through which we will discuss many of our course concepts and practices. This will allow us to apply these to a hypothetical business in operation!
Do not start week three until WEDNESDAY! 26

27. Any questions ?

28. See you next week!
After this seminar has concluded, there will be a recording in the archives located in the seminar room. It may be selected by date.

29. Thank You for Joining Me This Evening!
Good Night All!