Principles of Management

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Principles of Management by Mind Map: Principles of Management

1. Group-level performance focuses on both the outcomes and process of collections of individuals, or groups. In some cases, individuals might be expected to work on their own agendas in the context of a group. Groups might also consist of project-related groups, such as a product group or an entire store or branch of a company. The performance of a group consists of the inputs of the group minus any process loss that result in the final output,

1.1. Group-Level Performance

2. Empowerment is the process of enabling or authorizing an individual to think, behave, take action, and control work and decision making in autonomous ways.

2.1. Types of Managers

3. The Nature of Managerial Work

3.1. The three interpersonal roles are primarily concerned with interpersonal relationships. In the figurehead role, the manager represents the organization in all matters of formality. The top-level manager represents the company legally and socially to those outside of the organization. The supervisor represents the work group to higher management and higher management to the work group. In the liaison role, the manager interacts with peers and people outside the organization. The top-level manager uses the liaison role to gain favors and information, while the supervisor uses it to maintain the routine flow of work. The leader role defines the relationships between the manager and employees.

4. Leadership

4.1. Leadership is defined as the social and informal sources of influence that you use to inspire action taken by others.

5. Entrepreneurship

5.1. Entrepreneurship is defined as the recognition of opportunities (needs, wants, problems, and challenges) and the use or creation of resources to implement innovative ideas for new, thoughtfully planned ventures. An entrepreneur is a person who engages in the process of entrepreneurship. Entrepreneurship is best understood as a process because it often involves more than simply coming up with a good idea—someone also has to convert that idea into action.

6. Strategy

6.1. Strategic management is important to all organizations because, when correctly formulated and communicated, strategy provides leaders and employees with a clear set of guidelines for their daily actions.

7. Planning

7.1. The process begins with environmental scanning, where planners must be aware of the critical contingencies and trends facing their organizations in terms of economic conditions, their competitors, and their customers.

7.2. There are many different types of plans and planning. Strategic planning involves analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in their environment. Strategic planning has a long time frame, often three years Tactical planning is intermediate-range (one to three years) planning that is designed to develop relatively concrete and specific means to implement the strategic plan. Middle-level managers often engage in tactical planning. Operational planning generally assumes the existence of organization-wide or sub-unit goals and objectives and specifies ways to achieve them. Operational planning is short-range (less than a year) planning that is designed to develop specific action steps that support the strategic and tactical plans.

8. Organizing

8.1. Traditionally, job design was based on principles of division of labor and specialization, which assumed that the more narrow the job content, the more proficient the individual performing the job could become.

8.2. Organizing is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives.

9. Leading

9.1. Leading involves the social and informal sources of influence that you use to inspire action taken by others.

10. Controlling

10.1. Effective controlling requires the existence of plans, since planning provides the necessary performance standards or objectives. Controlling also requires a clear understanding of where responsibility for deviations from standards lies. .

10.2. Two traditional control techniques are budget and performance audits. An audit involves an examination and verification of records and supporting documents. A budget audit provides information about where the organization is with respect to what was planned or budgeted for, whereas a performance audit might try to determine whether the figures reported are a reflection of actual performance

11. Economic preformance

11.1. Traditionally, economic performance of a firm is a function of its success in producing benefits for its owners in particular, accomplished through product innovation and the efficient use of resources to produce some form of profit.

12. Social and Environmental Performance

12.1. Corporate social responsibility is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities, and the environment in all aspects of their operations.

13. Integrating Economic, Social, and Environmental Performance

13.1. The financial benefits of social or environmental CSR initiatives vary by context. For example, environment-friendly strategies are much more complicated in the consumer products and services market. For example, cosmetics retailer The Body Shop and StarKist Seafood Company, a strategic business unit of Heinz Food, both undertook environmental strategies but only the former succeeded. The Body Shop goes to great lengths to ensure that its business is ecologically sustainable.[17] It actively campaigns against human rights abuses and for animal and environmental protection and is one of the most respected firms in the world, despite its small size. Consumers pay premium prices for Body Shop products, ostensibly because they believe that it simply costs more to provide

14. Individual-Level Performance

14.1. Individual-level performance draws upon those things you have to do in your job, or in-role performance, and those things that add value but are not part of a formal job description.

15. Compatibility of Individual and Group Performance

15.1. Looking at goals first, there should be compatibility between individual and group goals. For example, do the individuals’ goals contribute to the achievement of the group goal or are they contradictory? Incentives also need to be aligned between individuals and groups.

16. Gauge-Discover-Reflect

16.1. The three essential components are (1) gauge—take stock of your knowledge and capabilities about a topic; (2) dis- cover—learn enough about a topic so that you can set specific development goals that you can apply and practice, and later gauge again your progress toward your set goals; and (3) reflect—step back and look at the ways you have achieved your goals, take the opportunity to set new ones, and chronicle this experience and thought process in a daily journal.