Introduction to Management Welcome to AB 140 Unit

Introduction to Management Welcome to AB 140 Unit 2 Seminar – Foundations of Management

Agenda Review of Unit 1 What is due in Unit 2? Business Organizations as Open Systems Management Environmental Considerations Major Management Theories Conclusion of Seminar

Unit 1 RECAP Management ◦ POLC Planning, Organizing, Leading, and Controlling ◦ Revenue Money coming into an organization ◦ Expenses Money leaving the organization ◦ Profit Difference between revenue and expenses

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Week 2 Deliverables There are three graded assignments in Unit 2: 1. Discussion – 35 points 2. Dropbox Assignment - 45 points 3. Quiz - 10 points 4. Seminar - 15 Reading: Chapter 2

Unit 2 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 the text, do you agree with Marc or disagree? Why?

Discussion Question Example Sample Discussion Question response: The author claims that the Internet has changed teaching. How would you respond to this assertion? Unacceptable: “I agree” Unacceptable: “I think the author is off her rocker on this point. I can’t stand when techies try to write about education. ” Acceptable: I agree with the author’s basic point—that is, I think she is right that the advent of the Internet means dramatic changes in how we teach. But I think she’s so concerned with whether technology is going to replace teachers that she misses an essential point. Teachers must use change themselves to use the Internet effectively. The Internet will never replace teachers and it will never be a successful tool unless teachers make it one. ”

What is wrong with this response? 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. 33 -34 of the text, do you agree with Marc or disagree? Why? “Yes, Marc is correct, his only form of competition iz the other fitness center. The other places hv nothing to do with fitness so Y in the world would they be his competition? He did not need to look at the other places so he should just focus on his own place. “

Unit 2 Participation Two responses to your classmates on separate days. Must be substantial ◦ ◦ Just saying “I agree” will not receive credit Posts must enhance and advance the discussion Utilize the readings and research Messages need to be on-topic

Unit 2 Assignment For this assignment, you must watch the video presentation on the Evolution of Management. You will find the video on the Assignments page under Unit 2. Assignment Checklist: ◦ Explain how theories presented are different from one another ◦ State which management theory you think is more important and why. Respond in a paper of at least one full double-spaced page in length, using size 12 -point Times New Roman font. This should be free of spelling and punctuation errors. Due Tuesday!

Unit 2 Quiz Complete readings and video before attempting the quiz May be completed during the Unit only! ◦ Due Tuesday! ◦ Quiz closes at midnight!

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Unit 2 In Unit 2, we examine: ◦ The environmental forces that shape the business organization ◦ Business organization as an open system, constantly exchanging information with both its macro environment and its competitive environment. ◦ Major management theories over time

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

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

External Environments Macroenvironment ◦ A part of the External Environment that forms the general environment for the firm. Competitive Environment ◦ A part of the External Environment that forms the immediate environment surrounding the firm

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. ) • Technology • Demographics • Social Values • Other fundamental conditions that could affect the firm.

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? Are there complements? • Suppliers and others: that the firm needs to conduct business (Distribution channels).

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Substitutes and Complements Substitutes ◦ Potential Threat ◦ Customers use product as an alternative, buying less of one kind of product for more of another. Complements ◦ Potential Opportunity ◦ Customers buy more of a given product as they also demand more of the complementary product.

Management Theories Classical Approach ◦ Scientific ◦ Administrative Behavioral Approach Systems Approach Contingency Approach

Scientific Management Frederick Taylor ◦ Midvale Steel Company ◦ 1878 Advocated the application of scientific methods to analyze work and to determine how to complete production tasks efficiently. Four Principles

Administrative Management Henry Fayol ◦ French Mining Engineer ◦ 1916 Emphasized the perspective of senior managers within the organization, and argued that management was a profession and could be taught. Five Functions Fourteen Principles

Behavioral Approach Elton Mayo ◦ Western Electric Hawthorne, Chicago plant ◦ 1927 -1932 Researched the effect of fatigue and monotony on job productivity. Looked at breaks, hours, temperature. Understanding people’s needs—want to be valued.

Systems Approach W. Edwards Deming ◦ Statistical Approach Total Quality Improvement Work together—no one job is more important than another

Contingency Approach Refutes universal principles of management by stating that a variety of factors, both internal and external to the firm, may affect the organization’s performance Therefore, there is no “one best way” to manage and organize, because circumstances vary. Situational characteristics are called contingencies.

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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.

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Good Night All!