MANAGEMENT

Thai Thanh Tuan, MBA

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Learning objectives of the course

After studying this course, you should be able to:

• Explain the basic concepts of management.

• Apply the theories that have been learned in practice.

• Solve the basic issues of management operations in practice.

 Outline of Instruction
Introduction
 Outline of Instruction to Management
 Manager
 Managerial Environment
 Planning
 Organizing
 Leading
 Controlling
 Decision-making in management
 Communication in Management
 Managing Team
Refere
nce
Book
Teaching – Learning method & Evaluation

Evaluation Ratio

Final examination 50%

Midterm 50%

- Individual 10%

- Group 25%

- LMS 15%
MANAGEMENT
Chapter 1: Introduction To Management
Learning objectives of chapter 1

After studying this chapter, you should be able to:

• Explain the goal, concept, and functions of management.

• Describe the Evolution of Management Thought.

Content

Topic 1
The goal, concept, and functions of
Management

Topic 2 The Evolution of Management

Thought
Topic 1: The goal, concept and functions of Management
.
Topic 1: The goal and concept of management.
After studying this topic, you should be able to:
 Explain Organizational Performance, effectiveness, efficiency.

 Describe what management is.

 Distinguish among planning, organizing, leading, and

controlling
Content

 Organizational Performance: Effectiveness & Efficiency

 What is Management?

 The four functions of Management: Planning,

Organizing, Leading, and Controlling.
Discussion Case Study

1. What is Performance?

2. What is Organizational Performance?

3. What is Effectiveness?

4. What is Efficiency?

5. What is Planning/Organizing/ Leading/Controlling?

6. What is Management?
1. Goal of Management

Organizational
performance

High Performance (What)

What is organizational performance?

Performance: How well or badly you do something.

Real
outputs

Intended
outputs

Effectiveness & efficiency

What is Effectiveness?

Real
goals

Intended
goals
What is efficiency?

Maximum
output

Minimum
input
Efficiency, Effectiveness, and Performance in an Organization

Efficiency,
Effectiveness,
and
Performance
in
Organization
For example of Effectiveness, Efficiency, and performance in an organization

• A manager has 12 rolls of fabric. He hands them over to 4 people.

Each one has 3 rolls, and he wants every person to make up 100 T-
shirt within 5 hours.

• End result

• Person A has made up 100 T-shirts within 5 hours.

• Person B has made up 80 T-shirts within 6 hours.

• Person C has made up 80 T-shirts within 5 hours.

• Person D has made up 100 T-shirts within 6 hours.

• Person E has made up 102 T-shirts within 4 hours.

For example of Effectiveness, Efficiency, and performance in an organization

• With the above result:

• Person A achieves effectiveness but doesn’t attain efficiency.

• Person B achieves efficiency but doesn’t attain effectiveness.

• Person C doesn’t achieve effectiveness and efficiency.

• Person D achieves effectiveness and efficiency.

2. Concept of Management

• What is Management?

Do

Planning
What for? how
what
Organizing Organizational effectively
Manager resources goals efficiently
Leading Human
&
Controlling Others
3. Essential managerial tasks

Planning

Controlling Organizing

Leading
What is Planning?

Resources
allocation

Strategies
choice
Choose
appropriate
organizational
goals
What is Organizing?

Organizational Human
structure resource
management
What is Leading?

Setting a vision

Lead, support Performance, Organizational

commitment goals

Motivation
What is Controlling?

Take
correct
Evaluate • Desired
• Efficiency and performance
Measure effectiveness standard
• Performance
 Group Exercise
Game: Fold the shirts
Request:
• Fold the shirts as sample.
• Time: 10 minutes
Procedure
1. Establishing the teams
2. Elect a manager, a secretary, a
designer
3. Tasks division
4. Planning, organizing, leading,
controlling
5. Material buying
6. Time count
7. Doing (performance)
8. Report
9. Experience studying (writing &
presentation)
 Suggestion

• Planning (goal, way of doing (strategy), resources allocation

(human & materials – how many))

• Organizing ( tasks division)

• Leading (how manager motivate)

• Controlling (finished product control, experience studying)

Loss and profit

• Pay for workers: 5 USD/person
• 1 paper : 1USD
• Price of a shirt: 7USD
Topic 2: The Evolution of Management Thought.
After
Topic studying thisand
1: The goal topic, you should
concept be able to:
of management.
 Describe the process of the evolution of management theories.

 Explain classical management theories that contributed to

increase organizational effectiveness and efficiency.
 Discuss the development of the behavioral approach.

• Explain Management Science Theories to the efficiency use of

organizational resources.

• Explain the importance of Organizational Environment Theory

Content

 The Evolution of Management Theory

 Classical approaches to management.
 Behavioral approach to management
 Quantitative and contemporary approaches to
management
1. The Evolution of Management Theory

Organizational environment theory

Management Science theory

Behavioral management theory

Administrative management theory

Scientific management theory

1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
2. Classical Management Theory

Scientific
Management
Classical
Management
Administrative
Management
Scientific Management

Four principles of management

1. Study the way workers perform their tasks

and develop the best way of doing it.
2. Codify the new methods into written rules
and standard operating procedures.
3. Carefully select and train workers according

Frederick Winslow Taylor to the established rules and procedures

(1856-1915)
4. Establish acceptable level of performance
and develop a pay system above the
acceptable level.
 Scientific Management

Three ways to increase efficiency of

1. Analyze necessary actions to
complete a task.
2. Find better ways to perform
each action.
3. Reorganize each of the actions
to complete the task efficiently.
Administrative Management

organizatio
nal efficiency
structure and
Study
effectivene
control
ss
system
Administrative Management

Weber’s Principles of Bureaucracy

1. Formal authority derives from one’s

position inside the organization.
2. Individuals occupy positions because of
their performance.
3. Each individual’s authority and
responsibilities are specified by the
organization.
(1841 – 1925)
4. Authority is exercised effectively when
positions are arranged hierarchically.
5. Rules of the organization are followed and
control individual behavior..
Administrative Management

Fayol’s 14 Principles of Management

1. Division of labor 8. Order
2. Authority and 9. Initiative
responsibility
3. Unity of command 10. Discipline
4. Line of authority 11. Remuneration of personnel
5. Centralization 12. Stability of tenure of personnel
6. Unity of direction 13. Subordination of individual
interests to the common
interest
7. Equity 14. Esprit de corps
(1841 – 1925)
3. Behavioral Management Theory

Behavior Research fields: Motivating, leading, building

trust, working with a team, managing conflict…

Organizational Behavior
Major contributions for Organizational behavior

• Concerned about deplorable working

conditions
• Proposed idealistic workplace
• Argued that money spent improving

Robert Owen (1771-1858) labor was smart investment

Major contributions for Organizational behavior

• Hiring workers with personalities

and mental abilities the best suited
to certain types of vocations.
• Increase motivation, performance,
and retention to workers.
• Psychological tests for employee
selection, learning theory concepts
for employee training, and study of
human behavior for employee
Hugo Munsterberg (1863-1916)
motivation.
• Matching an individual’s personality
with the correct job set and skills.
 Major contributions for Organizational behavior

• Organizations could be viewed from perspective of

individual and group behavior.

• Organizations should be based on a group ethic rather

than individualism.

Mary Parker Follett (1868-1933)

 Major contributions for Organizational behavior

• Actual manager who thought organizations

were social systems that required cooperation.

• Believed manager’s job was to communicate

and stimulate employees’ high levels of effort.

• First to argue that organizations were open

Chester Barnard (1886 – 1961)
systems.
Hawthorne Studies

Conclusion

• Social norms and group standards were the

key determinants of individual work behavior.
• People’s behavior and attitudes are closely
related.
• Group factors significantly affect individual
behavior.
• Group standards establish individual worker
output.
• Money is less a factor in determining output
than group standards, group attitudes, and
security.
How today’s managers use the behavioral approach?

Manager use the behavior approach to:

• Design jobs

• Work with employee teams

• Communicate with subordinates

• Motivate and leading employees

Learning objectives

• Explain Management Science Theories to the efficiency use of

organizational resources.

• Explain the importance of Organizational Environment Theory.

4. Management Science Theory

A contemporary approach to management that focuses on the use of rigorous

quantitative techniques to help managers make maximum use of organizational
resources to produce goods and services.

• Quantitative Management,

• Operations Management,

• Total Quality Management (TQM),

• Management Information System (MIS).

Quantitative Management

• linear and nonlinear

programming,
Use mathematical help managers
• modeling,
and statistical take a decision.
simulation, queuing
techniques
theory,

• chaos theory
Operations Management

Operations Management is a set of techniques manager can use to

analyze, design, control the process of production and redesigning
business operations in the production system of goods or services to
increase efficiency.
Total quality management

• Input
Analyze Increase
• Conversion
product quality.
• Output
Management information systems

the best information

Give managers For effective
from internal & external
decision making
environment
Organizational Environment Theory

The set of forces and conditions that affect to an

organization’s operation or use resources.

• The open systems theory

• The contingency theory

Environment theory within organizational system
The open system of an organization
Contingency theory

Organizational
structures
Contingency
theory
Control
systems
Characteristics of external environment

Mechanistic
Characteristics structure
of external
environment Organic
structure