OPMAN Lecture Part I

Operations Management PART I
DR. ABIGAIL I. MANZANO, RND

Clustered Courses OPMAN
 OPMAN- Operations Management
 AOM- Administrative Office
Management
 HBO-Human Behavior in
Organization
Operations Management
I. Basic Management
II. Organizational Behavior
III. Operations Management
What is Management?
A set of activities
planning and decision making, organizing,
leading, and controlling
Directed at an organization’s resources

human, financial, physical, and information
With the aim of achieving organizational

goals in an efficient and effective
manner.
Basic Purpose of
Management
EFFICIENTLY
Using resources wisely and
in a cost-effective way
EFFECTIVELY
Making the right decisions and
successfully implementing them
Why Study OB & Management?
 The better you can work with people, the

more successful you will be in both your
personal and your professional lives.
 Employers want to hire employees
who can participate in managing
the firm.
 Even non-managers (Individual
Contributors) are being trained
to perform management
functions.
Copyright © 2006 Thomson Business and

1–6 Economics. All rights reserved.
 The study of management builds the skills

needed in today’s workplace to succeed in:
 Becoming a partner in managing your organization
through participative management.
 Working in a team and sharing in decision making and
other management tasks.

 The study of management also applies directly

to your personal life in helping you to:
 Communicate with and interact with people every day.
 Make personal plans and decisions, set goals,
prioritize what you will do, and get others to do things
for you.
 Society Needs Leaders and Team Players
 Be Successful in our Community, Religious, Social,
Professional, Recreational and Other Organizations.
 Become Leaders for a “Just and Humane World”

What is a Manager?
 Someone whose primary
responsibility is to carry out the
management process.
 Someone who plans and makes
decisions, organizes, leads, and
controls:
human, financial, physical,
and information resources.
What Does It Take to Be a Successful
Manager?
 Management Qualities (Survey of

Execs.)
 Integrity, industriousness, and the
ability to get along with people
 Management Skills
 Technical
 Human and communication (Teaming)
 Conceptual and decision-making skills
• “Systems Thinking” & “Critical
Thinking”
Copyright © 2006 Thomson Business and Exhibit 1–2

What Does It Take to Be a Successful
Manager?

The Management Process
 Planning and Decision Making

 Setting an organization’s goals and selecting a course of
action from a set of alternatives to achieve them.
 Organizing
 Determining how activities and resources are grouped.
 Leading
 The set of processes used to get organizational
members to work together to advance the interests of
the organization.
 Controlling
 Monitoring organizational progress towards goals.
Fundamental Management Skills
 Management Skill Mixes at Different
Organizational Levels
What Do Managers Do?
 Management Functions (Different Scope at job
level)
 Planning
• Setting objectives and determining in
advance exactly (?) how the objectives
will be met.
• Monitor for Change and Anticipate or
React
• PDCA – Plan – Do – Check - Act
 Organizing
• Delegating and coordinating tasks
and allocating resources to achieve
objectives.

What Do Managers Do?
 Leading
• Influencing employees to work
toward achieving objectives.
• Setting an Example (Shadow of the
Leader)
 Controlling
• Establishing and implementing
mechanisms to ensure that objectives are
achieved.

The Systems Relationship among the Management Functions
Planning
Management
Functions
Controlling Organizing
Management
Skills
Leading

Differences between Large and Small
Businesses

Differences between Large and Small Businesses
(cont’d)
ALSO OFTEN APPLIES TO NON-PROFITS AND CIVIC

ORGANIZATIONS, WITH FOCUS ON THEIR MISSION
Copyright © 2006 Thomson Business and Exhibit 1–7 cont’d
An Integrative Framework
of Management Perspectives
Systems Approach Contingency Perspective
• Recognition of internal • Recognition of the situational
interdependencies nature of management
• Recognition of • Response to particular
environmental influences characteristics of situation
Classical Behavioral Quantitative

Management Management Management
Perspectives Perspectives Perspectives
Methods for Insights for moti- Techniques for
enhancing vating performance improving decision
efficiency and and understanding making, resource
facilitating planning, individual behavior, allocation, and
organizing, and groups and teams, operations
controlling and leadership
Effective and efficient management

Ten Roles Managers Play
Managers play various roles as necessary while performing their

management functions so as to achieve organizational objectives.

Management Skills and Functions
 Differences among management levels in skill
needed and the functions performed:
Planning
Controlling Organizing

1–24 Economics. All rights reserved. Leading
Classical Management Perspective
 Scientific Management
 Concerned with improving the
performance of individual workers (i.e.,
efficiency).
 Grew out of the industrial revolution’s
labor shortage at the beginning of the
twentieth century.
 Administrative Management
 A theory that focuses on
managing the total organization.
Scientific Management
 Frederick Taylor (1856–1915)

 Replaced old methods of how to do work with
scientifically-based work methods to eliminate
“soldiering,” where employees deliberately
worked at a pace slower than their capabilities.
 Believed in selecting, training, teaching, and
developing workers.
 Used time studies of jobs, standards planning,
exception rule of management, slide-rules,
instruction cards, and piece-work pay systems
to control and motivate employees.
Classical Management Perspective
 Administrative Management Theory

 Focuses on managing the whole organization rather
than individuals.
 Henri Fayol (1845–1925)
 Was first to identify the specific management
functions of planning, organizing, leading, and
controlling.
 Max Weber (1864–1920)
 His theory of bureaucracy is based on a rational set
of guidelines for structuring organizations.
Behavioral Management Perspective
 Behavioral Management
 Emphasized individual attitudes and
behaviors, and group processes, and
recognized the importance of
behavioral processes in the workplace.
 Hawthorne Studies (1927–1932)
 Mayo: founder of human relations
The Hawthorne Studies
(1927–1932)
 Conducted by Elton Mayo and associates at
Western Electric
 Illumination study —workplace lighting
adjustments affected both the control and the
experimental groups of production employees.
 Group study—implementation of piecework
incentive plan caused production workers to
establish informal levels of acceptable individual
output.
• Over-producing workers were labeled “rate
busters” and under-producing workers were
considered “chiselers.”
 Human Relations Movement

 Grew out of the Hawthorne studies.
 Proposed that workers respond primarily
to the social context of work, including
social conditioning, group norms,
and interpersonal dynamics.
 Assumed that the manager’s
concern for workers would lead to
increased worker satisfaction and
improved worker performance.
 Abraham Maslow
 Advanced a theory that employees are
motivated by a hierarchy of needs that
they seek to satisfy.
 Douglas McGregor
 Proposed Theory X and Theory Y
concepts
of managerial beliefs about people
and work.
Organizational Behavior
 A contemporary field focusing on behavioral

perspectives on management.
 Draws on psychology, sociology, anthropology,
economics, and medicine.
 Important topics in organizational behavior
research:
 Job satisfaction and job stress
 Motivation and leadership
 Group dynamics and organizational politics
 Interpersonal conflict
 The structure and design of organizations
Quantitative Management Perspective
 Quantitative Management
 Emerged during World War II to help
the Allied forces manage logistical
problems.
 Focuses on decision making, economic
effectiveness, mathematical models,
and the use of computers to solve
quantitative problems.
Quantitative Management Perspective
 Management Science
 Focuses on the development of
representative mathematical models to
assist with decisions.
 Operations Management
 Practical application of management
science to efficiently manage the
production and distribution
of products and services.
The Systems Perspective of
Organizations
Outputs into
Inputs from the Transformation
the environment:
environment: process: technology,
products/services,
material inputs, operating systems,
profits/losses,
human inputs, administrative
employee behaviors,
financial inputs, and systems, and
and information
information inputs control systems
outputs
Feedback
The Contingency Perspective
 Universal Perspectives
 Include the classical, behavioral, and quantitative
approaches.
 An attempt to identify the “one best way” to
manage organizations.
 The Contingency Perspective
 Suggests that each organization is unique.
 The appropriate managerial behavior for
managing an organization depends
(is contingent) on the current
situation in the organization.
Decision Making and the
Planning Process
 The Planning Process
The Environmental Context
The organization’s mission
• Purpose • Premises • Values • Directions
Strategic goals Strategic plans
Tactical goals Tactical plans
Operational goals Operational plans

Kinds of Goals
 By Level
 Mission statement is a statement of an
organization’s fundamental purpose.
 Strategic goals are goals set by and for top
management of the organization that address
broad, general issues.
 Tactical goals are set by and for middle
managers; their focus is on how to
operationalize actions to strategic goals.
 Operational goals are set by and for lower-
level managers to address issues associated
with tactical goals.
SWOT
Analysis
Mission
An organization’s fundamental purpose
 Strengths SWOT Analysis

 Weaknesses To formulate strategies that support the mission
 Opportunities Internal Analysis External Analysis

 Threats Strengths Opportunities
(distinctive
competencies)
Weaknesses Threats
Best Strategies
Those that support the mission and
• exploit opportunities and strengths
• neutralize threats
• avoid (or correct) weaknesses
Managing Diversification
 BCG Matrix
 A method of evaluating businesses relative to the
growth rate of their market and the organization’s
share of the market.
 The matrix classifies the types of businesses that a
diversified organization can engage as:
• “Dogs” have small market shares and no growth
prospects.
• “Cash cows” have large shares of mature
markets.
• “Question marks” have small market shares in
quickly growing markets.
• “Stars” have large shares of rapidly growing
markets.
Organizational Structure
 The Nature of Organizing

 Job Specialization
 Grouping Jobs: Departmentalization
 The Bureaucratic Model of Organization

Design
 Situational Influences on Organization
 Core Technology
 Environment
 Organization Size and Life Cycle

Alternatives to Specialization
 Job Rotation
 Systematically moving employees from one job to
another. Most frequent use today is as a training
device for skills and flexibility.
 Job Enlargement
 An increase in the total number of tasks workers
perform.
 Job Enrichment
 Increasing both the number of tasks the worker does
and the control the worker has over the job.
Establishing Reporting Relationships
 Chain of Command
 A clear and distinct line of authority among the
positions in an organization.
 Unity of Command
• Each person within an organization must have
a clear reporting relationship to one and
only one boss.
 Scalar Principle
• A clear and unbroken line of authority
must extend from the bottom to the
top of the organization.
Work-Related Attitudes
 Job Satisfaction or Dissatisfaction

 An attitude that reflects the extent to which an
individual is gratified or fulfilled by his or her
work.
 Job Satisfaction and Work Behaviors
 Job satisfaction is influenced by personal, group,
and organizational factors.
 Satisfied employees are absent from work less
often, make positive contributions, and stay with
the organization.
 Dissatisfied may experience stress which disrupts
coworkers.
 Job Satisfaction and Work Behaviors

 High levels of job satisfaction do not
necessarily lead to high job
performance.
 Organizational Commitment
 An attitude that reflects an individual’s
identification with and attachment to an
organization.
 Organizational Commitment and Work
Behaviors
 Employee commitment strengthens with an
individual’s age, years with the organization,
sense of job security, and participation in decision
making.
 Committed employees have highly reliable habits,
plan a longer tenure with the organization.
Motivation
 The Nature of Motivation
 Content Perspectives on Motivation
 The Need Hierarchy Approach
 The Two-Factor Theory
 Individual Human Needs (nAch, nAff)
 Process Perspectives on Motivation

 Expectancy Theory
 Equity Theory
 Goal-Setting Theory
Process Perspectives on Motivation
 Porter-Lawler Extension of
Expectancy Theory
Intrinsic
rewards
(outcomes)
Perceived
Performance Satisfaction
equity
Extrinsic
rewards
(outcomes)
Source: Edward E. Lawler III and Lyman W. Porter, “The Effect of Performance on Job Satisfaction,”
Industrial Relations, October 1967, p. 23. Used with permission of the University of California. Figure 10.5
Popular Motivational Strategies
 Empowerment and Participation
 Empowerment
• The process of enabling workers to set their own
work goals, make decisions, and solve problems
within their sphere of influence.
 Participation
• The process of giving employees a voice in
making decisions about their work.
 Areas of Participation for Employees
• Making decisions about their jobs.
• Participating in decision making about broader
issues of product quality.
Using Reward Systems to
Motivate Performance
 Designing Effective Reward Systems

 Reward system must meet an
individual’s needs.
 Rewards should compare favorably with
other organizations.
 Distribution of rewards must be
perceived to be equitable.
 Reward system must recognize
different needs.
 Popular Approaches to Rewarding
Employees
 Traditional systems
• Fixed hourly or monthly rate.
 Merit systems
• Employees get different pay raises at the end
of the year based on overall job performance.
 Incentive systems
• Employees get different pay amounts at each
pay period in proportion to what they do
(e.g., piece-rate pay plans).
 Popular Approaches (cont’d)
 Profit sharing plans
• Provides bonus based to corporate profits.
 Gainsharing
• All group members get bonuses when
performance targets are exceeded.
 Lump sum bonuses
• One-time reward, not an increase in base.
 Pay-for-knowledge
• Pay the individual rather than the job.
Leadership
 The Nature of Leadership

 The Meaning of Leadership
 Leadership Versus Management
 Power and Leadership
 The Search for Leadership Traits

 Leadership Behaviors
 Michigan Studies
 Ohio State Studies
 Leadership Grid
 Situational Approaches to Leadership

 LPC Theory
Leadership
 Situational Approaches to Leadership

(cont’d)
 Path-Goal Theory
 The Leader-Member Exchange Approach
 Related Perspectives on Leadership
 Substitutes for Leadership
 Charismatic Leadership
 Transformational Leadership
Types of Power in
Organizations
Source: Van Fleet, David D., and Tim Peterson, Contemporary Management, Third Edition. Copyright © 1994 by Houghton Mifflin Company. Used with permission.
The Nature of Leadership
Power and Leadership
Power: ability to affect the behavior of others.
•Legitimate power is granted through the
organizational hierarchy.
•Reward power is the power to give or withhold
rewards.
•Coercive power is the capability to force compliance
by means of psychological, emotional, or physical
threat.
•Referent power is the personal power that accrues to
someone based on identification, imitation, loyalty, or
charisma.
•Expert power is derived from the possession of
information or expertise.
Groups
 Groups and Teams in Organizations

 Types of Groups and Teams
 Why People Join Groups and Teams
 Stages of Group and Team Development
 Characteristics of Groups and Teams

 Role Structures
 Behavioral Norms
 Cohesiveness
 Formal and informal Leadership

Groups and Teams in Organizations
 Functional Group
 A permanent group created to accomplish a
number of organizational purposes within an
indefinite time horizon.
 Informal or Interest Group
 A group created by its own members for
purposes that may or may not be relevant to
organizational goals.
 Task Group
 A group created by the organization to
accomplish a relatively narrow range of purposes
within a stated time horizon.
Groups and Teams in Organizations
 Team
 A group of workers who function as a
unit, often with little or no supervision,
to carry out work-related tasks,
functions, and activities.
 Sometimes are called self-managed
teams, cross-functional teams, or high
performance teams.
Stages of
Group
Development
(Tuchman)
Source: Van Fleet, David D., and Tim

Peterson, Contemporary Management,
Third Edition. Copyright © 1994 by
Houghton Mifflin Company. Used with
permission.
Characteristics of Teams
 Role
 The part an individual plays in helping
the group reach its goals.
• Task-specialist—role concentrating on
getting the group’s tasks accomplished.
• Socioemotional role—providing social
and emotional support to others on
the team.
Characteristics of Teams
 Cohesiveness
 The extent to which members are loyal and
committed to the group; the degree of mutual
attractiveness within the group.
 Factors That Influence Group Cohesiveness
Factors That Increase Factors That Reduce

Cohesiveness Cohesiveness
Intergroup competition Group size

Personal attraction Disagreement on goals
Favorable evaluation Intragroup competition
Agreement on goals Domination
Interaction Unpleasant experiences
Interpersonal and Intergroup Conflict
 The Nature of Organizational Conflict
High
Performance
Optimal level of conflict
Low
Low Conflict High
The Business in
General
CONCEPT OF
Business
AND DEVELOPMENT
OF
Business Culture
Business
Human wants is the
evolutionary
needsgrowth of
various activities
developing from a
simple to a complex
system.
Consumer
acceptance
Satisfy
Government
the
consu
regulations
and Business taxation
supervision
mer’s
basic
and
Technologica
l changes secon
dary
needs
Strategies:
Effective
marketing
practices
PROFIT
Reasonable
returns ( to
compensate
efforts and
risk of loss)
PROFIT
Main objective of business which made it different from charitable

institutions and government agencies
 The difference between the income an entrepreneur receives from sale of
his good and services and the expenses he incurs to produce them
 The PROFIT MOTIVE

 *profit is the prime motivator in a capital system
-return of -just wages -
consumers
workers
management
investments
- benefits Reasonable
- dividends prices
- remuneration
-Quality
goods and
services
Business
 Any activity involved in the production
and distribution of goods and services,
aimed to meet the economic needs
and consumers with an objective of
eventually earning profit.
Relationship between
Business and the
Economy
services.
- deals with how society

uses its resources to
produce goods and
services
Elements of a Business
System

Factors of Production
Land:all natural resources found on the
planet available for production
Renewable resources are those that can
replenish themselves: i.e trees, water, and
fish stocks
Non-renewable resources are those that
cannot be replaced once consumed, i.e
minerals and fossil fuels

Labor:physical and mental effort of people
used in the production of a good or service
 Quantity not always as important as quality.
(education)
Factors of Production
 Capital: all non-natural (manufactured) resources
used in production.
I.e. money, buildings, equipment, tools, machinery
 Can also be investment
 Governments also contribute to investment
 Roads, schools, museums, libraries
 Enterprise: The control of the other factors

 Also known as entrepreneurship, refers to the
management, organization, and planning of the
other three factors.
 Have to have the ability to oversee entire
production process and ability/willingness to take
risks.
 Traits: creative, innovative, and passionate.
Labor intensive: labor is used more
Capital-intensive: capital is used more
Financial Return for their part

Land – Rent (the reward for the use of land):
Owners earn income by letting out their
property for a period of time
Capital – Interest (the return for the use of

capital): Capital that is hired out to others earns
interest
Labor – Wages/Salaries (the remuneration for

labor): given in return for their physical and
mental efforts given during the production
process
Entrepreneurs – Profit: received when

entrepreneurs take responsibilities and takes
Responsibility of a
Business Enterprise
Activity # 2: Potential
as an Entrepreneur
 You will be given 15 minutes to answer
the test. Write the letter that
correspond to your answer.
 The test will help you find out whether
you have the drive to realize your
entrepreneurial dream
WHY PEOPLE ENGAGE IN
BUSINESS
 Human behavior including consumer behavior
involves a complex process of
stimulus- and- response system
Reasons why people engage in business

• Power
• Profit
• Service to community
• Prestige
• Livelihood
• Social approval
Business man want to earn
profit, serve the
community and achieve
prestige because of stimuli
MOTIVATIONAL FACTORS
Maslow’s Hierarchy of
Needs
Kind of Business
Services
 Industries
concerned with the making or manufacturing
of goods. It is that constituent of production
which is involved in changing the form of
goods at any stage from raw material to the
finished product
CLASSIFICATION
 (1) Extractive- supply basic raw materials
that are mostly the products from farming,
fishing, mining, soil.
 (2) Manufacturing- use the materials and
supplies turned out by the extractive
Commerce
 Involves the process of buying and selling
where the goods are moved from the point of
production to the point of consumption.
( involves purchasing & actual investment)
 The goal of commerce is to ensure a proper
flow of goods and services for the benefit of
both producers and consumers
E.g. SM, Rustan’s, Robinsons, National Bookstore

Service

Enterprise
Primary concerned with the
satisfaction of the needs and wants of
the consumers
• Public and community services
• Professional or trade service
• Recreation Services
• Personal services- hotels, restaurants,
schools, beauty parlors
Kinds of Economic
System
Phases of Economic
Development
 CRITERIA in Classifying the Phases:
(1) Means of Livelihood
(2) Extent of Economic Activity
(3) Medium of Exchange
Hunting and Fishing
Phase
Pastoral Phase
 This phase made it necessary
for man to satisfy the needs
of his group during seasons
of inclement weather and the
realization of a greater need
for planning, saving, and
setting aside of stocks.
Handicraft Phase
 Items or objects were made
by skilled and trained manual
laborers.
 Medieval guilds period
 Guilds made an excellent
workmanship of sculpture,
tapestries, jewelry, etc.
Agricultural Phase
 A man’s need for a continuous supply
of food led to the development of
agriculture and the concept of land
ownership.
 Vast agricultural land and the

shortage of foreign exchange is
needed to buy modern machineries
and technology that’s why agriculture
is the primary industry in the
Philippines
Industrial Phase
 It is characterized by the presence
of manufacturing companies in
certain areas like Metro Manila.
 Using the power and machines,

Industrial production led to the
mass production of other
machines.
Extent of Economic
Activity
Household Economy
• The needs of the
family
were satisfied
largely
by the efforts and
contributions
of all members of
Extent of Econom
Village Economy
 When several families
organize a village economic
and social relations spread
among the various families
resulting in the rise of the
village economy
Extent of Econom
National Economy
 This phase involves the
grouping of villages into
bigger and broader social
units. Consequently, nation-
building develops economic
activities on a nationwide
scale.
Extent of Econom
International Economy
 With better and modern
means of transportation and
communication, a country
expands its economic
relationship through
international trade and
diplomatic cooperation.
Extent of Econom
Medium of Exchange
Medium of Exchange is compose of:
 Barter Economy
 Money Economy
 Money and Credit Economy
Medium of Ex
Barter Economy
 Barter is the direct exchange
of goods for goods, services
for services, goods for
services for goods.
 It is involved in the physical
transfer of commodities with
every transaction, it is very
inconvenient
Medium of Ex
Money Economy
 Used as an exchange.
 Money solved the problem of
barter economy, when such
objects became standardized
in value and regular in
appearance so that it
became identified and
accepted by the general
public as a medium of
Medium of Ex
Money and Credit
Economy
 Credit is the power to obtain
economic goods and services
in exchange for the promise
to pay the agreed equivalent
at some future time.
 It also supplements money
as a medium of exchange
Medium of Ex
The Project Feasibility
Study
Preparation of a project study
covers:
1. The collection of data (trough

research work) which is
significant to all areas of
undertaking
2. The analysis of the collected
data; and
VARIOUS ASPECTS OF
PROJECT
FEASIBILITY STUDY
Marketing aspect
 -considered the ” life blood”
 “profitability” is the focal point
 take into account-- demand, supply demand
and supply gap analysis, marketing program,
and the projected sales
 main objective is to determine the quantity of
the product that can be sold at a certain price
given the competitive situation.
Technical Aspect
 Main objective is to determine to what extent
the project meets the technical soundness
criteria
Technical
Requirement of
the Project
A. Stating
1.The quantity and quality of produc
2. The specifications of raw material
3. The supplies to be used
4. The labor needed, both skilled
5. The utilities needed
6. The waste disposal methods
7. The manufacturing proces
B. Providing estimates of total project cost
and enumerating the major items of capital
cost.
C. Listing down in detail estimated

production cost and overhead cost that will
go into the operating of the proposed plan.
D. Taking into consideration any major

technological development in the industry
which may affect the commercial or
technical soundness of the project. Once the
technical requirements have been prepared,
the project proponent is ready to analyze
technical feasibility
Financial Aspect
 this pertains to quantities, the results of the
marketing, technical, management, taxation
and legal phases of the project study, and
expresses in peso terms the possible outcome
of operating the project.
Objectives of the Financial
study
1) Make a realistic, complete, and conservative
estimate of the total cost
2) Determine the amount of capital financing
available and borrowing needed
3) Make a complete, safe and realistic
projections of operating cost and revenues
4) Determine whether the project will be able to
pay its total debt w/ reasonable margin of
safety
5) Determine the necessary financial
arrangements
6) Determine the company’s earning performance
and the soundness and liquidity of its
financial positions
SOCIO –ECONOMIC
Aspect
 Objective of the socio-economic aspect:
1. income, considering the benefits it
will give to the families and individuals
2. Taxes, indicating the amount of
revenue it could raise for the government
3. Prices, considering the influence
of the proposed project on supply of goods
and foreign exchange balances
4. local producers, considering
locally manufactured machines
5. community, in terms of its
benefits
Parties/ Company
requiring Project
feasibility
 Management of on-going concerns
 Proponents or promoters of new projects
 Stockholders
 Lending Institutions
 Government Offices
Limitations of Project
Feasibility Study
1. Certain information is usually not
available
2. Non professionally competent
3. The study is still a forecast, the
results do not usually tally with
actual events
HOW TO REGISTER
YOUR BUSINESS
Purpose of Business
registration
 To establish the legal personality of
the business
 To obtain a Permit to Operate (PTO)
 To comply with the requirements of
special regulatory or promotional
programs of government
Government Agencies
involve in Business
Registration
Government Agencies
involve in Business
Registration
 Securities and Exchange Commission
(SEC)
 Bureau of Internal Revenue
 Local Government Unit
 Social Security System
Purpose of Licensing
THE ENTREPRENEUR
AND THE MANAGER
POSITIVE VALUES OF
FILIPINO
ENTREPRENEUR
Positive Values
 Pakikipagkapwa Tao
 Bahala na
 Pakikipagsapalaran
 Gaya –gaya
 Utang na loob, hiya, awa, bayanihan
 Kasipagan
 Pagtitipid
 Pagtitiis
 Pagtitimpi
 Katapatan
Social and Economic
Contributions of
Entrepreneurship
 Creates employment
 Improves the quality of life
 Contributes to more
equitable distribution of
income taxes and therefore
eases social unrest
 Utilizes and mobilizes
resources for greater
national productivity
INTERNATIONAL
BUSINESS
ENVIRONMENT
-Trading of goods and services
across national boundaries
result from the principle of
competitive advantage
EXPORTING &
IMPORTING
Exporting- the selling of goods in

another country
Importing- the purchasing of goods
and services from a foreign company
MNC- MULTI NATIONAL
CORPORATIONS
Any business that maintains a

production, assembly, sales or
service
NATURE AND
CONCEPT OF
MANAGEMENT
What is Management?
PLAN ORGAN STAFFI
MEN
NING IZING NG
MONEY
MATERIAL PROFIT
S
CONTROLLING
MACHINE DIRE
S CTIN
METHODS G
MARKET
PLANNING
refers to the formulation of objectives,
programs, policies, procedures, rules and
regulations, in order to achieve the goals of
business
 Decision making
 Used to further accomplish the objectives
today and its relationship in the future
 Thinking before doing.
ORGANIZING
 Grouping together of people,
establishing relationship among them,
and defining the authority and
responsibility that the personnel have
in the use of company’s material
resources
Staffing- Involves filling and keeping
filled the positions provided in the
organization structure.
Directing- It does the predominantly

interpersonal aspect of managing.
Controlling- The process of measurin

Activities of subordinates and the co
conformity to plans. Thus, it measure
goals and plans, Shows where negat
and by actions to correct deviations
Management as a
And as an
Management
 Is both art and Science
because..
 It is art because it results in
the accomplishment of
objectives through the use of
human efforts. It requires
skill and careful study in the
management of any
endeavor,

OPMAN Lecture Part I

Uploaded by

Document Information

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

OPMAN Lecture Part I

Uploaded by

Copyright:

Available Formats

Operations Management PART I

DR. ABIGAIL I. MANZANO, RND

Directed at an organization’s resources

With the aim of achieving organizational

 The better you can work with people, the

Copyright © 2006 Thomson Business and

 The study of management builds the skills

Copyright © 2006 Thomson Business and

 The study of management also applies directly

Copyright © 2006 Thomson Business and

 Management Qualities (Survey of

Copyright © 2006 Thomson Business and Exhibit 1–2

Copyright © 2006 Thomson Business and Exhibit 1–2

 Planning and Decision Making

Copyright © 2006 Thomson Business and

Copyright © 2006 Thomson Business and

Copyright © 2006 Thomson Business and Exhibit 1–3

Copyright © 2006 Thomson Business and Exhibit 1–7

ALSO OFTEN APPLIES TO NON-PROFITS AND CIVIC

Classical Behavioral Quantitative

Effective and efficient management

Managers play various roles as necessary while performing their

Copyright © 2006 Thomson Business and Exhibit 1–4

Copyright © 2006 Thomson Business and Exhibit 1–6

 Frederick Taylor (1856–1915)

 Administrative Management Theory

 Human Relations Movement

 A contemporary field focusing on behavioral

Strategic goals Strategic plans

Tactical goals Tactical plans

Operational goals Operational plans

 Strengths SWOT Analysis

 Opportunities Internal Analysis External Analysis

 The Nature of Organizing

 The Bureaucratic Model of Organization

 Organization Size and Life Cycle

 Job Satisfaction or Dissatisfaction

 Job Satisfaction and Work Behaviors

 Individual Human Needs (nAch, nAff)

 Process Perspectives on Motivation

 Designing Effective Reward Systems

 The Nature of Leadership

 Leadership Versus Management

 Power and Leadership

 The Search for Leadership Traits

 Ohio State Studies

 Situational Approaches to Leadership

 Situational Approaches to Leadership

 Groups and Teams in Organizations

 Why People Join Groups and Teams

 Stages of Group and Team Development

 Characteristics of Groups and Teams

 Formal and informal Leadership

Source: Van Fleet, David D., and Tim

Factors That Increase Factors That Reduce

Intergroup competition Group size

Optimal level of conflict

 The PROFIT MOTIVE

- deals with how society

 Enterprise: The control of the other factors

Financial Return for their part

Capital – Interest (the return for the use of

Labor – Wages/Salaries (the remuneration for