Principles of Management
Session 2
MBA-Health Class 2012
Assignment for June 16

All students: Read Chapters 10 and 18

All students: Submit Case Reflection #2
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Group 4
:
30-min report on Organizing

Comment on your organization’s Mission and
Vision based on the concepts learned in class
(max 2 pages)
Select an organization and do a SWOT
analysis (max 3 pages)

All students: bring an example of team
norms

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15 minutes : Discuss major
concepts briefly
15 minutes : Creatively present 2
companies and how they are
organized
Maximum 25 slides
Date
Management Topic
Individual Assignments and
cases for the session
June 2
Introduction, Evolution of Management
Read Chap 1,2,3, 5 and 9
The Environment and Corporate Culture,
Ethics and Social Responsibility
Managerial Decision-Making
Read the 4 cases and prepare to discuss the
questions in the book : “Elektra:, “
The
Supervisor” “SIA Corp” and “Rio Grande Supply
Co”
Current Management Topics
Read Chap 4, 6, 7 & 8
Planning , Goal Setting, Strategy
formulation and Implementation
Submit written case reflection 1 :
“Ethical dilemna case and Application case
Group 1 : Planning
June 16
Organizing and Teamwork
Read Chapter 10 and 18
Submit written case reflection 2:
“Mission/ Vision and SWOT Analysis“
Group 2 : Organizing
June 23
Dynamics of Behavior and Leadership
Read Chapters 14, 15, 16, 17
Submit written case reflection 3:
Group 3 : Leading
June 9
Group
Reports
Motivation and communication
June 30
July 7
MIDTERM EXAMS
Coverage: Chapters 1-18 (except 11,12, 13)
Change and Innovation ,
Meeting the challenge of diversity
Read Chapters 11 and 13
Controlling
Read Chapter 12, 19, 20, 21
Submit written case reflection 4:
IT, HR, Operations and Value Chain
July 14
July 21
Group Presentations
Course Integration
Submit final paper
Group 4 : Controlling
Cultural Sensitivity
Hofstede’s Value Dimensions
 Power distance
 Uncertainty Avoidance
 Individualism vs. Collectivism
 Masculinity vs Femininity
 Long-term vs Short-term orientation
Professor Geert Hofstede
conducted one of the most
comprehensive studies of
how
values
in
the
workplace are influenced
by culture.
Power Distance

The degree of inequality that exists – and is
accepted – among people with and without
power.


A high PD score indicates that society
accepts an unequal distribution of power
and people understand "their place" in the
system.
 Acknowledge a leader's power.
 Be aware that you may need to go to the
top for answers
Low PD means that power is shared and well
dispersed; society members view
themselves as equals.
 Use teamwork
 Involve as many people as possible in
decision making.
Uncertainty Avoidance

Relates to the degree of anxiety society members feel when in uncertain or
unknown situations.

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High UAI-scoring nations : try to avoid ambiguous situations ; governed by
rules and order and they seek a collective "truth".
 Be clear and concise about your expectations and parameters.
 Plan and prepare, communicate often and early, provide detailed plans and
focus on the tactical aspects of a job or project.
 Express your emotions through hands gestures and raised voices.
Low UAI scores indicate the society enjoys novel events and values
differences. There are very few rules and people are encouraged to discover
their own truth.
 Do not impose rules or structure unnecessarily.
 Minimize your emotional response by being calm and contemplating
situations before speaking.
 Express curiosity when you discover differences.
Individualism

Strength of the ties people have to others within the community

A high IDV score : loose connection with people; lack of
interpersonal connection and little sharing of responsibility,
beyond family and perhaps a few close friends.




Acknowledge accomplishments.
Don't ask for too much personal information.
Encourage debate and expression of own ideas.
A low IDV score : strong group cohesion, large amount of
loyalty and respect for members of the group. The group itself is
also larger and people take more responsibility for each other's well
being.



Show respect for age and wisdom.
Suppress feelings and emotions to work in harmony.
Respect traditions and introduce change slowly.
Vx
Masculinity

Refers to how much a society sticks with, and
values, traditional male and female roles.

High MAS scores : found in countries
where men are expected to be tough,
to be the provider, to be assertive and
to be strong. If women work outside
the home, they have separate
professions from men.


Be aware that people may expect male
and female roles to be distinct.
Advise men to avoid discussing
emotions or making emotionally-based
decisions or arguments.

Low MAS scores : gender roles
are simply blurred ; women and
men working together equally
across many professions. Men
are allowed to be sensitive and
women can work hard for
professional success.



Avoid an "old boys' club"
mentality.
Ensure job design and practices
are not discriminatory to either
gender.
Treat men and women equally.
Long Term Orientation (LTO)

Refers to how much society values long-standing – as opposed
to short term – traditions and values.

Countries with a high LTO score : delivering on social obligations
and avoiding "loss of face" are considered very important.
 Show respect for traditions.
 Do not display extravagance or act frivolously.
 Reward perseverance, loyalty, and commitment.
 Avoid doing anything that would cause another to "lose face".
Launching a Start-up
1.
2.
3.
4.
Start with an idea
Write the business plan
Choose a legal structure
Arrange financing
The Big Ideas on Planning


Planning is the most fundamental of all
management functions. Everything else
stems from planning.
Planning is the act of determining the
organization’s goals and the means for
achieving them.
Daft
Deep and Sussman
Specific
Specific
Specific
Measurable
Measurable
Quantitative
Achievable (realistic) Challenging but realistic Challenging but achievable
Relevant
Covers KRA
Time-bound
Defined time period
Linked to rewards
Reflects CSF
Individual-group link
Participatory
Goals mutually reinforcing
Means and ends
Self-subordinate development
Put into writing
Characteristics of an Effective Plan
1. Stated clearly in terms of desired results
2. Put into writing
3. Drafted by people responsible for its implementation
4. Communicated to all those affected by it
5. One person is ultimately responsible for its
implementation
6. With specific date for completion, with
milestone review
3
Source: Sam Deep and Lyle Sussman, “Smart Moves,” 1990
Characteristics of an Effective Plan
7. With clear criteria and how to apply the same
8. Intermediate review allowing for revisions
9. Potential problems identified and acted upon
10. Potential opportunities identified and reinforced
11. Person responsible for reporting progress identified
2
Planning for high performance




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Start with a strong mission and vision
Set stretch goals for excellence
Embrace event-driven planning
Use performance dashboards
Organize temporary task forces
Strategic Management


The art and science of formulating, implementing and
evaluating cross-functional decisions that enable an
organization to achieve its objectives
The set of decisions and actions used to formulate
and implement strategies that will provide a
competitively superior fit between the organization
and its environment to achieve organizational goals.
Importance of Strategic Management

The PLAN allows for:






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A proactive approach to shaping its own future
Better strategies through the use of a systematic, logical, rational approach
Prioritization of opportunities and allocation of resources accordingly
Objective view of management problems
Framework for improved coordination and control of activities
Clarification of individual responsibilities
A degree of discipline and formality to the management of the business
The PROCESS allows for:




Enhanced communication
Deeper understanding of purpose and colleagues’ views
Integration of behavior of individuals into a total effort
Greater commitment from employees to achieve objectives, implement strategies and
work hard
STRATEGIC MANAGEMENT PROCESS
where we want to be
EXTERNAL
ENVIRONMENT
GAPS --how do we get there
INTERNAL
ENVIRONMENT
where we are today
The Strategic Management Process
STRATEGY FORMULATION
IMPLEMENTATION
MONITORING
External
Analysis
Dev’t of
Vision/
Mission
Statement
Establish
Longterm
Objective
Generate
Evaluate,
And
Select
Strategies
Implement
Strategies:
Mgt. Issues
Implement
Strategies:
Functional
Units
Measure and
Evaluate
Performance
Fred R. David
Internal
Analysis
Strategy Formulation
Strategy Implementation
Strategy Evaluation
Vision and Mission


Vision = What we want to become
Mission = What is our business?
What is our reason for being?
A business is not defined by its name, statutes or articles of incorporation.
It is defined by the business mission.
Only a clear definition of the mission and purpose of the organization
makes possible clear and realistic business objectives.” - Peter Drucker
A VISION is a shared image of what the people in
an enterprise aspire for it to become.
It conveys a desired future state.


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What will our business look like in 3 to 5 years from now?
What new things do we intend to pursue?
What future customer needs do we want to satisfy?
Audacious Future-casting

Does our vision statement provides a powerful picture of what our business will look like in 3 to 5 years from now?
Clear and Compelling/Motivating



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Does
Does
Does
Does
Does
it clarify the future direction the company is headed?
it clarify the customer focus our company should have?
it clarify the market position our company should try to occupy?
is clarify the business activities our company it to pursue?
is clarify the capabilities our company plans to develop?
Purpose-Driven


Does our vision statement give employees a larger sense of purpose?
Is our vision statement worded in such a way that our employees see themselves as “building a cathedral” rather than
“laying stones.”
Inspiring



Is our vision statement worded in engaging language that inspires and engages people?
Does it create a vivid image in people’s heads that provokes emotion and excitement?
Does it create enthusiasm and pose a challenge that inspires and engages people in the company?
Capitalizes on Unique Competencies


Does our vision statement build on our company’s core competencies?
Does it build on our company history, customer base, strengths, and unique capabilities, resources and assets?
The Mission
“Three people were at work on a construction site. All
were doing the same job, but when each was asked
what his job was, the answers varied:
“Laying rocks”, the first replied.
“Earning a living”, responded the second.
“Building a cathedral” said the third.
To the extent that we see a cathedral in whatever cause
we are following, the job seems more worthwhile.
MISSION
A MISSION states an
enterprise’s fundamental reason
for being and its primary
commitments to its stakeholders. It
guides an organization in terms of
how it must do business.
It usually states an
enterprise’s:
 Primary purpose
 Commitments to its stakeholders
 Basic philosophy
 Core values
Mission Statement Components
1)
2)
3)
4)
5)
6)
7)
8)
9)
Customers
Products or Services
Markets
Technology
Concern for survival, growth and profitability
Philosophy
Self-concept
Concern for public image
Concern for employees
SWOT Matrix
External
INTERNAL
OPPORTUNITIES
Characteristics of the
environment that have
the potential to help
achieve or exceed goals
THREATS
Characteristics of the
environment that may
prevent the achievement
of goals
STRENGTHS
WEAKNESSES
Positive internal
characteristics that can be
exploited to achieve goals
Internal characteristics
that can inhibit from
achieving goals
How do we use our strengths
to capitalize on the
opportunities ?
What weaknesses should
be overcome to take
advantage of the
opportunities?
How do we use our strengths
to overcome the threats to the
business?
How do we ensure that we
compensate / correct the
weakness in order to
manage the threat?
Strategic choices
Growth vs Stability vs Retrenchment
Growth :
Company is positioned to increase revenues in a growing market
Diversification, vertical and horizontal integration
Stability :
Pause strategy, remain the same size/ grow slowly
Retrenchment :
Forced decline by shrinking current business units
Liquidation
Divestiture
Downsizing
Levels of Strategy


Business-level : How do we compete?
Analysis of competitive forces
Competitive Strategies



Differentiation
Cost leadership
Focus
Cite examples in the ff industries
1.
Hotels
2.
Auto
3.
Pharmaceuticals
4.
Restaurant
Levels of strategy

Functional level : How do we support
the business level strategy?

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Marketing
Finance
Sales
IT
HR
Logistics