Principles of Management

AREAS Of MANAGEMENT
Group 5- MM 1B
Acibar Angeline M. Baquero, Arjay C.
Tabayay Stephanie Jane G Aguilar Gian Henri G.
Coluso May Ann O. Pacto Christian E.
Almazan Diona S. Young Vincent
Betinol Fheil Angelie Fenix Maricar G.
Delmonte Jay
Strategic Management
 Involves analyzing, determining objectives and deciding what action

need to be taken to achieve organizational goal and to sustain competitive advantages
IMPORTANCE:
• Managers at all levels must continue focusing on their effort on the short term and long term
• goals
• Top management are responsible in developing strategic plan
• Some firm strategically involve middle and lower level managers to create an integrative plan
PROCESS:
 STEP I – Identify organizational mission, goals and objectives

 STEP II –
Analyze Internal and External Environment
(Both are critical,this will provide important information)
• Internal Analysis – Focus on the strength and weakness of the organization

Resources – Tangible, intangible core competencies that give an edge over other competencies
• External Analysis – Also known as macro environment, examination of general environment

And the competitive environment before identifying the opportunities and threats that
Includes trends and changes in the environment
SWOT Analysis - A framework used for examining organizational Strength,weaknesses

Opportunities and threats
EXTERNAL ANALYSIS
General Environment -
The effect of these factors may create opportunities or

threats That directly or indirectly present challenges to the organization that is beyond the control of the
manager
6 Segments
1. Demographic
2. Socio Cultural
3. Political
4. Legal
5. Economic
6. Global
EXTERNAL ANALYSIS
Competitive Environment – The immediate environment surrounding a firm it includes rivals,

Suppliers,customers,new entrants and substitute products
 Michael Porter’s 5 forces model of Industry Competition
Threat of new entrants
Bargaining power Bargaining power of

RIVALRY
of buyers
supply
Threat of Substitute
products
STEP III – Strategy Formulation
3 levels of Organizational Strategy
1. Corporate level strategy – concerned w/ the direction of the organization

Involves making decisions on what should the firm be in & wants to be in
 Growth Strategy - Create new opportunities by expanding their operations by introducing

New products,invest,acquire additional business units
• Concentration
• Diversification
• Vertical Integration
 Stability Strategy – Focus on maintaining the organization current business operation

 Retrenchment Strategy – use when they want to reduce the scope of their operations by
Eliminating business or product units
• Wants to improve it’s performance by increasing efficiency
• Wants to focus on their core competencies
• Realize that they entered an area wherein they lack product

expertise w/c resulted Less profit
2. BUSINESS LEVEL STRATEGY – Deals on how organization will compete in a particular industry
3 Generic Strategies (Michael Porter)
I Overall cost leadership Strategy – to achieve higher profits while keeping the costs low to attract customers
II – Differentiation Strategy – Designed to create differences in product offering unique, innovative design &
Features, high quality, superior customer service, technology capability, positive brand image
III – Focus Strategy – Designed to concentrate its resources to a well defined segment
Strategic Business Unit –
A distinct business that has it’s own set of competitors and can be managed reasonably,
Independently of other business (Ghillyer 2009)
Boston Consulting Group matrix (BCG) –
developed the popular portfolio planning method w/

limited resources of the organization
- Guide strategic managers in terms of making decision in the
Allocation of the resources of the firm
3. FUNCTIONAL LEVEL STRATEGY
Deals w/ different functional areas of the business to support the organizations business strategy
It also guides the use of resources
IV. Implement Strategies - Executing the Strategic Plan

Includes the creation of teams, adapting new technologies, focusing on processes rather than fuctions,
Facilitating communications, offering incentives & making structural changes
(Plunkett,Attner & Allen 2008)
V . Evaluation & Control – done to determine if the obgectives & goals are met,if the strategy is effective
& what adjustment are needed to be done
Management Information System (MIS) – Used by managers to provide them valuable information
needed
In making decisions for the organization
Ex. Chief Information Officer (CIO) – Making of strategic decisions and in managing
competitiveness in a
challenging environment
HUMAN RESOURCE MANAGEMENT
- plays a very important role in the organization success.
- according to Mike Smith, Human Resource Management is defined as the

productive recruitment, development, deployment and motivation of
people at work in order to achieve strategic business objectives and the
satisfaction of individual employees. (Smith, 2011)
Human Capital is a intangible resource of a firm. Almost all businesses
consider this asset as one of the most important assets of an organization
because this can be a great source of competitive advantage most
especially when,
1. It creates value to customers by providing a superb customer service

satisfaction.
2. It is difficult to imitate due to the unique culture embedded to the

employees.
3. It is rare because of the skills, abilities, experiences and knowledge of

the people which competitors does not possess.
ATTRACTING WORKFORCE
- attracting talented people is the first major activities of human resource
management in this stage companies tend to create a pull strategy in
getting the attention of qualified and talented individuals to join the
organization this is commonly known as a recruitment.
I. INTERNAL AND EXTERNAL RECRUITMENT
1.1 internal recruitment involves notifying employees in the organization,

through job posting in the organization, to submit and apply for the open
position in the company.
1.2 external recruitment involves hiring job candidates or applicants
outside the organization which brings new workforce and can be a source
of new ideas.
II. RECRUITMENT PROCESS
2.1 Application Forms
- this document is very important because it indicate here the

personal profile, skills, accomplishments and other special qualifications of
the job applicant.
2.2 Interview
- this is the most popular selection tool. Interviews can be structured and
unstructured.
a. Structured Interview is a selection technique that involves asking all

applicants the same questions and comparing the responses to a
standardized set of answers.
b. Unstructured Interview is the other way around where in interviewer

asks different questions to different interviews.
2.3 Testing
- job applicants will required to take a written test to measure their

intelligence, personality, behavioral, and aptitude.
2.4 Reference and Background Check
- this stage is the verification of the information given by the applicants.
2.5 Physical Examination
- this stage is where the organization mandates the job applicants to

undergo a physical examination to make sure that he or she is physically fit
to the job before the company hire him or her.
DEVELOPING WORKFORCE
I. Orientation
- a process of introducing and familiarizing new employees to his or
her new job, co-workers, company policies, history, rules, procedures,
culture and the nature of his or her work.
II. Training and Development

- a method of learning and improving employees basic skills and
abilities.
a. On-the-job training
- the former is the oldest form of training in which the acquisition of
learning takes place in the work place.
b. Off-the-job training
- is the type of training done outside the working place.
III. Performance Management System

-it aims to improve, evaluate and motivate employees. Performance
appraisal is a method in which it measures individual or groups
performance against the established standard work behavior.
-it plays a very important role in an organization because this will
provide vital information.
RETAINING WORKFORCE
-companies must able to retain qualified employees to the organization.

Especially when their contribution brought positive change or success to
the company.
-these employees should be nurtured and manage properly. Providing

them rewards and other factors such as career development and work life
balance which will reinforce them
to remain in a company.
ENTREPRENEURSHIP
Person who starts a business and also willing to take risk loss in
order to take money
 CHARACTERISTIC
− Willing to gamble and to take risk

− High degree of confidence
− Motivated and they believe in our ability
− Responsible
− Hard working
 Importance:
 Small Business
− Having fewer than 100 employee’s they have usually
lower rate of failure
 Intrapreneur
− An entrepreneurial behaviors of people inside the
organization is the creating of a new
Enterprise inside the firm using the resources of the company
with a purpose of creating a new organization
 Entrepreneurial Strategy
- Skilled and dedicated Entrepreneur
Skunk Works – A group of people who work together

in large organization to produce Innovative product
Entrepreneurial Venture
- Organization’s that are pursuing opportunities are

characterized by innovative practice and have growth
and Profitability as their main goals.
Business plan
Written document that that summarize
business opportunity
Franchising
− An entrepreneurial alliance between a franchisor
(an innovator who has a created
At least one successful store and wants to grow)
Family Business
− A privately held firm where the control remains
within a family
 First mover Strategy

− The competitive advantage gained by the firm
or organization by being the first to introduce or
develop a new process or product
OPERATION
MANAGEMENT
PROCESS
IMPORTANCE OF OPERATIONS
MANAGEMENT
Operations Management is the heart of many

businesses. The success of every business is based on
how effectively and efficiently they were able to
manage their resources.
TYPES OF OPERATING SYSTEM
SMALL
BATCH
FLEXIBLE
PRODUCTION
PRODUCTION
LARGE
BATCH
PRODUCTION
SMALL BATCH PRODUCTION
- is often performed by small business organizations that produce a small
quantity of finished products.
- it enables the organization to respond quickly to the different demands of

the market.
- the flexibility of small batch production allows organization to offer other

customized products so they can satisfy the needs of the customers.
LARGE BATCH PRODUCTION
- also known as mass production, is a type of system of operation that
organizations use specialized machines in it’s operations to produces large
quantities of standardized products.
- this helps in making the operation very efficient and easy to control.
- one advantage of this system is that workers follow a standard operating

procedure (SOP).
FLEXIBLE PRODUCTION
- a more complicated sequence of operation is needed to make a wide
variety of customized products. The key is the use of computer in
integrated manufacturing that it eliminates the need to physically retool
machines to produce different or customized products.
- this is also known as continuous process. Most organizations focus on

achieving a flexible operation system where an organization will be able to
minimize the cost but enhance the quality of the output.
OPERATION MANAGEMENT
- plays a vital role in the organization. It helps the organization achieve a
competitive advantage.
- in order to accomplish and create a big impact on the profitability of the

business, managers need to consider these different factors of operation
management.
TOTAL QUALITY MANAGEMENT
- can be defined as managing the entire organization to ensure that it excels
on all dimensions of products and services that are important to the
customer.
- this process is committed in the continuous improvement to minimize the

costs and increase the quality of the product.
- SIX SIGMA refers to the method of eliminating defects which is

popularized by Motorola.
INVENTORY MANAGEMENT
- is a store of goods that is held by the organization.
- one of the main reasons why organization store goods is the anticipation
of the customer demand and also to take advantage of the quantity
discounts.
- one requirement for effective an inventory management system is for

managers to be able to forecast the demand and create a system to monitor
the supplies or inventory.
SUPPLY CHAIN MANAGEMENT
- the central idea of supply chain management is to apply a total system
approach to managing the flow of information, materials and services from
raw material suppliers through factories and warehouses to the end
customer.
- FORECASTING is a tool used in making future projection on the

demand and supply.
- OUTSOURCING can defined as a process of contracting other

organization to provide the goods or services for the firm.

Principles of Management

Uploaded by

Copyright:

Available Formats

Principles of Management

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Principles of Management

Uploaded by

Copyright:

Available Formats

AREAS Of MANAGEMENT

 Involves analyzing, determining objectives and deciding what action

 STEP I – Identify organizational mission, goals and objectives

• Internal Analysis – Focus on the strength and weakness of the organization

• External Analysis – Also known as macro environment, examination of general environment

SWOT Analysis - A framework used for examining organizational Strength,weaknesses

The effect of these factors may create opportunities or

Competitive Environment – The immediate environment surrounding a firm it includes rivals,

 Michael Porter’s 5 forces model of Industry Competition

Threat of new entrants

Bargaining power Bargaining power of

1. Corporate level strategy – concerned w/ the direction of the organization

 Growth Strategy - Create new opportunities by expanding their operations by introducing

 Stability Strategy – Focus on maintaining the organization current business operation

• Wants to improve it’s performance by increasing efficiency

• Wants to focus on their core competencies

• Realize that they entered an area wherein they lack product

3 Generic Strategies (Michael Porter)

Boston Consulting Group matrix (BCG) –

developed the popular portfolio planning method w/

IV. Implement Strategies - Executing the Strategic Plan

- according to Mike Smith, Human Resource Management is defined as the

1. It creates value to customers by providing a superb customer service

2. It is difficult to imitate due to the unique culture embedded to the

3. It is rare because of the skills, abilities, experiences and knowledge of

I. INTERNAL AND EXTERNAL RECRUITMENT

1.1 internal recruitment involves notifying employees in the organization,

II. RECRUITMENT PROCESS

2.1 Application Forms

- this document is very important because it indicate here the

a. Structured Interview is a selection technique that involves asking all

b. Unstructured Interview is the other way around where in interviewer

- job applicants will required to take a written test to measure their

2.4 Reference and Background Check

- this stage is the verification of the information given by the applicants.

2.5 Physical Examination

- this stage is where the organization mandates the job applicants to

II. Training and Development

III. Performance Management System

-companies must able to retain qualified employees to the organization.

-these employees should be nurtured and manage properly. Providing

− Willing to gamble and to take risk

Skunk Works – A group of people who work together

- Organization’s that are pursuing opportunities are

 First mover Strategy

Operations Management is the heart of many

- it enables the organization to respond quickly to the different demands of

- the flexibility of small batch production allows organization to offer other

- one advantage of this system is that workers follow a standard operating

- this is also known as continuous process. Most organizations focus on

- in order to accomplish and create a big impact on the profitability of the

- this process is committed in the continuous improvement to minimize the

- SIX SIGMA refers to the method of eliminating defects which is

- one requirement for effective an inventory management system is for

- FORECASTING is a tool used in making future projection on the

- OUTSOURCING can defined as a process of contracting other

You might also like