mmk seminar - 2

8/17/2019 MMK Seminar - 2

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SEMINAR 2

MANAGEMENT FUNCTIONS

2.1. MANAGEMENT FUNCTIONS

Management functions is the essence of leadership. Therefore knowledgeand thorough understanding of their contents is essential condition for learningscience and practice of management and effective use of systems, methods andtechniques that own them are. For the first time management process analysisand identification of management functions was made by Henry Fayol, whobelieve that there are 5 functions of management: forecasting, organization,control (decision), coordination and control.

Other experts have said that management has the following functions:-planning and decision making,-organization for high performance,-direction and motivation,-control results.In Romania Constantin Pintilie believes that management has 7 functions:

forecasting, organization, motivation, coordination, control, evaluation,maintenance and development of a climate of competition, incentives andcreativity.

There are basically five essential functions of management:-forecasting and planning,

-organization,-coordination,-training-motivation,-control-evaluation.The diversity of these views is the fact that some authors confuse the

functions of management and enterprise. The controversy is due to the novelty of management science, tentative views, innovation. Management is the coremanagement functions as they are, in fact, typical process managementcomponents, without which management may take place in any socioeconomicsystem.

2.2. INTERDEPENDENCIES MANAGEMENT FUNCTIONSProcess management is a cyclical. Begins with forecasting and planning,which define the objectives and perspectives of company action, shall beactionable under the organizational and coordination of organizationalcomponents, train staff to implement activities and ends with monitoring andevaluation results. The logical way of management functions in a consistentmanagement process reflects interdependencies management functions. Inpractice, the management must be approached as a whole, dealing with


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management functions in their close interdependence. Such an approach stemsfrom:

-Complementarity of management functions, management functionsoverlap because organic and ignoring one or more of them were promptly reflectreduced quality management process as a whole,

-Determination once the systemic nature of the company to which itcarries. Any deficiency in the management process is reflected in decreased

efficiency of one or more activities of that company. Over time there have beenchanges in the importance and prevalence of management functions in themanagement of such company:

-50-60 years now, the management companies were organized andpriority control functions, along with evidence of such methods cazon(authoritarian, military) in the exercise of these functions,

-In the contemporary functions of forecasting, organization and motivationtend to play a more important extent they are supplemented by participatory

management, forward. Addressing management functions reveals that besides the obviousinterdependencies between them, appears to highlight the specificities of eachmanagement function has many features and functions specific facets.

2.3. GENERAL PRINCIPLES OF MANAGEMENT

Management exercise based on a set of processes that have the sametriple determination that management processes and relationships: socio-economic, material and human. Management processes are:

a). process of decentralization and increased autonomy of economicmanagement involves:

-Reducing the presence and role within the state decision and reduce thepowers of these bodies.-Simplifying and rationalizing planning methodology activities. Discarding

socialist central plan with mandatory and is replaced with a plan to each trader autonomously establishing indicators indicative of its activity: turnover, number of employees, productivity, profit size, profitability, earnings, etc..

-Reduce dependence on the central economic units.-Increase the rights, powers and responsibilities at the microeconomic

level.In these circumstances, the central management perspective (ministries)

will handle the direction of the management and development of the economic

and social analyzes, studies, forecasts and recommended directions, strategies,policies to achieve economic and business orientation of favorable economicresults. Increased decision-making autonomy and responsibility in each trader allow them to compile their own way management and strategy, because onlythey know their best available resources, socio-economic environment in whichthey operate, market or market segment which addresses the needs andpreferences, opportunities to meet this market.


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b). principle of optimizing the relationship between management and thepresent in perspective. Any manager in charge and solve everyday issues to thefore so that it can escape to the future objectives. Thus, the manager needed tolead the company in view at all times, anticipating change and environmentalperspective. Therefore appears as an objective necessity for any manager to

study, to know and anticipate future trends for development on this basis, toprovide resources and remedies to cope with competition in terms of futurerequirements.

c). principle of participatory management involves the participation of company staff in the exercise of the most important decisions and managementprocesses. The need for this participative leadership is determined by:

-Increasing complexity and dynamism of the activity of the company.-Changes of major components of the environment: competition,

legislation, inflation, exchange rate, etc..Rapid advances in scientific-technical, commercial and organizationalcontemporary.

-The increasingly higher training of most staff within companies.Exercise is both participatory management in large enterprises, which isindispensable, and in small and very small, which is decreasing, giving greater emphasis unipersonal management.

d). principle of material incentives and moral stimulation is the main drivingforce to promote quality activities, profit growth and economic efficiency. Theprinciple that the active factor in the development of any company, shouldcombine harmoniously 3 groups of interest:

-The general interests of society, through tax levies, taxes.-Company interests in the development, modernization, expansion and

profitability.-Individual interests of entrepreneurs, owners shareholders, managers,

employees materialized in the amount of income: dividends, salaries, bonuses,bonuses, etc..Underestimating one of the three interest groups negatively affects other interests meet.

e). principle of efficiency expresses the need for system modelingmanagement companies in order to determine the survival and competitiveness.

Achieving this objective requires the involvement and use of moderninstrumentation methods, tools, concepts of modern management, economic andsocial to be applied correctly in efficiency.

f). principle of correspondence between the company managementsystem parameters and key features of the environment is determined by thenecessity of constant correlations, improvements and adaptations of themanagement of each company to actual situation existing in their social andeconomic context in evolving.

The origin of this principle results from the dynamism of economic,technological, scientific, cultural. Following the management change frequentlyoccurring parameters must adapt to these changes, taking into account: firm


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size, complexity of potential material, financial, human, firm market position,quality human resources, the technical equipment, etc..

2.4. MANAGEMENT SYSTEM

Performance management is achieved by the company management

system. Management system are all elements with binding, organizational,informational, motivational and methodological exercising the managementprocesses and relationships. Management system components are:

a). The organization includes:-Organization process of trial work with the components:

-functions,-activities,-functions,-tasks.

-Structural organization with the components:-position,

-function.-compartment,-organizational relationships,-level hierarchical-hierarchical-weight (time management, control area).

b). Information System is a set of data, information, digital information,information flow, procedures and means of treating existing information in acompany.

c). The decision means all decisions taken and implemented in acompany.

d). The methodology is a set of methods, techniques and procedures used

in managing a company. These methods and techniques are grouped as follows:-General-management methods and techniques:-management by objectives,-management by exception,-management of the budgets,-participatory management,-management projects.

-Methods and techniques of management:-Work-session or meeting,-delegation,-Scoreboard driver

-diagnosis,-feasibility study, etc..


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2.5. BUSINESS PLAN

To address issues of theoretical and formal business plan can put thefollowing questions, which answers trying to convince businessman who set up abusiness, on the usefulness of this business plan as a business managementtool. Questions are the following:

-What is a business plan?-Why you need a business plan?-What is the content of a business plan?1). What is a business plan? To understand what a business plan should

define first the concept of "business". An unconventional definition of this conceptmay be the intention of a person (natural or legal) to make, to undertake certainactivities in order to obtain a profit. A business plan is based on:

-an entrepreneur or businessman-consciously assume certain risks,-wants to obtain a profit-more activities consume resources and generate income (business idea)

-an environment in which these activities are carried (the business).The main aspects that may be considered in a business plan are thefollowing:

-Vision, strategy.-History, management, human resources, the current activity.-Market Analysis.-Analysis of operating costs.-Investments required.-The financial projections.-Schedule.

a). Vision and Strategy. Experts believe that everything starts from thevision. Each entrepreneur has a vision of the type:- "I want to produce auto parts that you sell Plant X"!- "I want to manufacture clothing for children"!- "I want to produce and market berry juice"!- "I want to establish a network of Internet - cafe"!- "I want, want, want. . . "!-"I want - this is a vision. This vision is really the ultimate goal to which you

want to continue straight through your business. The path you have decided tostart to fulfill the vision is to achieve business strategy.

To clarify the concept of strategy should answer the following questions:

-What is your core business?-What will generate money and profit?-How do you show your products / services?-You already have a model or prototype?-Who are your customers?-There is a comparable market offer?-Where are you going within 5 years.-Set your goals measurable?


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-What is your strong point that makes you think that will be successful?-There is a consensus among partners / stakeholders on the issues above?

b). history, management, human resources, the current activity. Businesshistory is very important to understand the business itself, the business today.

And businesses are not born from nothing. They will be born around a / some

people, then develop and function, led by those people. To paraphrase thepopular saying "man holy place" we can certainly say that "sanctifies businessmanager". Manager or manager’s future would be to ask questions like:

-What experience you bring in business?-For the theoretical knowledge you have?-What references can you present?-Is your family willing to support you?-You have the financial means to support his family during the difficult

early stages of business?-You have the financial means to support the business?-You have the contribution in kind to support the business?

-Cunoştinţele/experienţa You or your partner cover key business areas?-Where will you locate the headquarters of the Organization?-How many employees do you need?-What qualifications must have employees?-What salary level should be provided?-You can find the labor necessary specializations?-You have outlined an organizational structure?

A special question concerns a special significance:-Where is your business located?c). market analysis. To perform this analysis can provide the following

questions:-Why is there a business? To sell certain products / services to market.

A market analysis of how that evolved in the past and how to anticipatethe future evolution, are fundamental pillars for the determination of futureincome that will generate business. It is important to answer questions regarding:

-Our Customers-Who are your customers?-Companies or individuals?-How can segment your market?-How is the market potential of geographically divided?-You know how big the potential market volume?-Have an action plan to attract customers?Knowing the competition involves the following questions:-What do you know about the competition?-How many employees?-What sales force?-What market shares?-What competitive advantages are compared to you?-What strategies have competition price?-But communication strategies / advertising?


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Market knowledge is equally important, it can ask the following questions:-How do you think will grow sales?-What is the forecast demand?Marketing policy is another important element for a business. From here

you can states the following questions:

-You have a product strategy?-Did you set a distribution policy?-You have a policy of price and payment terms?-Have you thought of a political image, communication with the market?d). Analysis of operating costs. This is very important for understanding

and highlighting current business operating costs. The achievementdemonstrates both an understanding of technological aspects, economic andmanagerial aspects of operations. Demonstrates that we understand thetechnological, we know why we need infrastructure utilities, many people have toengage in the structure must have them. Should consider the following costs:

-Costs of establishing a company:

-Permits.-Entry in the Commercial Register.-Current costs:

-Raw.-Consumables, auxiliary materials.-Staff costs (salaries, social costs), management personnel

salaries,premiums and bonuses.

-Costs of training and personal training.-Taxes and local taxes.-Outside services.-Accounting.-Tax Consulting.-Legal Consulting.-Management-consultants.-IT-Consulting.-PR-Consultant.

-Cost of space:-Office-space-Area of production-Space for sale-Storage-space

-Heating costs, gas, electricity, cleaning, repair, insurance, water / sewer,trash.

-Equipment costs.-Repairs.-Maintenance.-Transport costs.-Fuel.-Review.


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-Întreţinere/Reparaţii.-Liability Insurance & all risks insurance.-Taxes.-Costs related to the sale:-Travel.

-Presentation materials.-Exhibition.-Administrative costs:-Move.-Office supplies.-Communications: telephone, fax, phone, e-mail.-Copy documents.-Evidence primary and payroll.-Subscriptions (eg journals, legislation, office equipment maintenance,

etc.).-Literature.

-Taxes.e). Investment required. Often the business plan is necessary to start anew activity. Most times a new activity requires a new investment. Must thereforebe based on a pragmatic, honest and realistic investment. To diminish or ignorethe issues related to investment, infrastructure such as utilities or oversize it byintroducing unnecessarily expensive equipment, luxury, are common mistakesthat immediately raises questions (justified) in the minds of shareholders,partners, donors.

Investment costs can be grouped as:-Buildings,-Equipment-Car -Other capital goods,Investment related costs:-Infrastructure,-Water,-Gas-Current-Sewage,-Access road,-Rehabilitation,-Arrangements,-Ensuring safety standards,-Environmental protection.-Other costs that may arise:-Project Expenses.-Expenses for initialization to use new equipment.-Expenses for technological tests.


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f). financial projections for the plan. Financial projections are expectations/ planning future business financial statements. Financial projections aremathematical modeling future balance sheet, profit and loss and the calculationof liquidity (cash flow) in calculating the rate of profitability possibly somebusiness. Projections are inextricably linked to points c, d and e above. These

points provide input in the mathematical model and these are erroneous data,financial projections mathematical model results can only be all wrong andtherefore completely useless.

g). Schedule. Obviously can not proposed "Framework formats", limiting,for the business plan. But funding for some programs can be made available toapplicants specific framework. As a manager-entrepreneur business plan mustevolve. You can enter these presentation materials that can help business, suchas:

-study certificates / qualifications of the management team and humanresources,

-certified quality

-feedback from customers,-appreciation of the bank,-constructive-technological details,-any other materials or documents which it considers relevant manager-

entrepreneur in presenting their business.

2.6. CONFLICT

Represents a tense conflict occurs when two or more parts of a companymust enter into interaction to complete a task to make a decision and to achievea goal or solve a problem, but the parties’ interests are different , shares a

defined negative reactions from others, and the parties are unable to resolve thecontroversy and critique each other. In this situation the warring parties influencetheir colleagues, collaborators and friends. They join the group and looksforward. As long as the conflict remains unresolved, the affected firmperformance, labor relations of those involved directly and by extension, theentire group are damaged.

Appearance of conflict may be due to disruption of business mechanisms,violation of principles or rules of management. Drinking onset and conflict isregarded as extremely harmful to the company, energy and time, but sometimesthey can have a positive role in regulating internal mechanisms, social andeconomic aspects of the company. Conflict is defined as tense as a whole

generated by interference between two or more major problems. Theconsequence of this view is that management should not eliminate any conflict atall costs, but only those that prove real obstacles to achieving businessobjectives. In some cases conflicts can be beneficial when the situation can beused as tools for change and innovation. So the real issue to be discussed is theconflict itself, but that of how it can be channeled and managed it as a clever maneuver, even a potential conflict economically destructive and costly can betransformed the one that cost less and bring organizational advantages.


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2.7. NEGOTIATION

DEFINITION: Negotiation is a decision-making between the partiesinterdependent preferences not identical.

The elements of an effective negotiations are as follows:1). Adopt a winning attitude that winning is a state-which constantly seeks

mutual benefit in any human interaction. This attitude leads to the adoption of agreements or solutions are mutually involved in negotiation.2). Establishment by each party involved in negotiating favorable last

alternative, to rule on any proposal that the party with whom to negotiate. This isan alternative that provides benefits at least a portion involved in the negotiation(the last "price").

3). Identify areas of negotiation that is if it is necessary or unnecessary, if overlapping interests of both sides.

4). Value added through negotiation is a process consisting of thefollowing phases:

-Classification of interests.-Identification of options.-Design option package.-Select an option package.-Improvement of the transaction.

In literature it is considered advisable that negotiations take place at thosewho have limited authority. A negotiator in this category may prove strongenough to achieve desired results, limited authority making up a certain "power source". A negotiator may postpone such a decision thus gaining time in which tothink of it sometimes finding business solutions that can bring in a difficultsituation. Has the opportunity to more easily said "no" and this amicably, without

being accused of unfair methods or incivility. This is because he says "no" onbehalf of someone else, being someone who can not pass over, that is thegeneral manager or owner.

Often there is negotiation and upward authority, ie a certain escalation of authority, its purpose being to put approval at high levels. In such a situation thatthey negotiate is forced to repeat the arguments one at each level of authority inthe party. Such a tactic, tough in its own way, can put on any negotiating or evenboth in difficulty. Also it occasionally fails to sow discord between the negotiator and the organization he represents, negotiator and was placed in a position toreport after each question in part, that business is concluded that in fact to bethat this is not true.

If authority is well prepared tactic often leads upward to the desiredresults. For it is but needs a well trained negotiator, highly prepared physically, tocope with such tactics. During the negotiations there are certain requests thatcan not be but satisfied. They are so extreme that a compromise on them seemsimpossible, but curiously, that such claims can help the negotiator to have theagreement of all members of the team, and scattered while those from the other side.


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Such applications are deeply rooted in the consciousness of certainvalues of an individual, group, an ethnicity or a nation, values of nature such as:ethnic, religious, professional or economic. The introduction of such hostilitycreates immediate grievance. Dangerous for the nonnegotiable demands theymake, they can wind up so much that there is real risk partners termination of

any negotiations. However, most applications of this type may becomenegotiable to the extent that there are serious and long enough to accept theseideas. Psychological education in the positive traits, talents can be encouraged toacquire a new meaning to rise to the skill and craftsmanship. In other wordsnegotiator personality is formed by grinding and finishing skills that a complexprocess characterized by persistence and education of the will. In thesecircumstances their negotiators selection consists of a lengthy and complexexperiences, observations and conducted training in the general activity.

Psychological preparation will pay off only a moral personality andprofessional background. A good negotiator should however be prepared interms of psychological education, if it lacks professionally trained will always be

complexed by ignorance and by the use of Twitter, the inconsistencies, the lies,the cunning. Psychological training is both theoretical and practical. Theoreticallythis is done through periodic training and practical pedagogical input pathcandidates in different teams of negotiators, first as observers and then thecoach during training and operations of documentary materials and processessimulated negotiations.

The education process is based on psychological knowledge of individualskills, the temperament, nature and character that define personality. It willconsider the rule that most individuals are characterized by average sizedgeneral skills. Acquiring an education is important for the identification of thepersonality of the person negotiating partner in terms of its psycho-physiologicaltraits. After several individual contacts can be identified some skills gaps and thenegotiation partner, other references can be collected on his personality primarilyvizîndu the behavior and experience. In these conditions negotiator will be easier to adopt appropriate strategies and tactics in battle psychological confrontationcaused by both partners. For shipping company managers following aspects areimportant:

a). traits and qualities negotiator representing the company. Success innegotiations depends largely on the qualities and traits negotiator. A goodnegotiator must be the owner of properties are native or acquired through athoroughly trained to be developed through personal experience and carefulobservation of others. A good negotiator must be endowed with specific traitsand native intelligence, imagination, a very good memory, courage, presence of mind, charm, ability to adapt to unforeseen situations, modesty, tact, flair, etc. ..

First of all you must know that the negotiator is a person who is born, livesand works are formed in the context of socio-economic realities, cultural andpolitical well-determined reality that is the formative elements of the profile and itscharacter. We must also note the fact that being a negotiator is not easy beingone of the most demanding. In fact, negotiation is nothing but "an unwrittencharacter and quality evaluation of negotiating". No matter how well prepared


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negotiations would be successful to the table is determined largely by thepersonality of the negotiator, the default size of the overlapping of its quality,selected from the following:

-Culture vast, easily in speech, mind clear and large energy reserves.-A deep and solid professional training, knowledge of negotiation

techniques, rules and their alternatives.-Perfect-knowledge and in detail the topics and issues discussed.-Clarity in thinking, mobility in mind, adaptability to complex situations.-Capacity analysis, to listen and retain the essential, to judge the

practicality issues.-Treasurer of information in every aspect, from general to particular, the

immediate prospects, from formal to informal.-Self-reliance, power to keep cool under emotional or stress, willingness to

handle the situations.-Ability to know to negotiate under time pressure and in difficult situations

to know to gain time required to receive new instructions and take effective

decisions.-Ability to integrate into a team, being a good colleague and collaborator endowed with the talent to get along with people located at all levels. In the spiritof cooperation negotiations means team spirit, constructivitate, resilience andperseverance in the partner’s belief by logical arguments that prove they aredefended and interests.

-To be endowed with good sense, to be diplomatic and persuasive,honest, persistent, calm, temperate, and the opportunity to have a sense of timing.

-To be strong and flexible partner analysis of the case.-Know how to transpose the partner situation, to understand his way of

thinking.-Be able to self-control at all times, be empowered when they are in

situations of ambiguity.-To have the courage to decide the right time, and presence of mind and

sharpness means that can be detected and disadvantages of unilateral or reciprocal action reroute or delay negotiations.

-To show attachment to the company they represent.

b). factors on which the power to negotiate.DEFINITION: bargaining power consists of all means that the negotiator can useto obtain a solution as close to their own negotiating position.

This depends on a number of objective and subjective factors, closelyrelated to the field in which the negotiations. This also applies to factors such as:

-Experience of past negotiations,-Pressure negotiating team,-Information about third-degree,-Negotiating partner and the firm he represents,-Responsiveness,-Ability to take a risk,


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-Mode negotiation training, etc..The negotiation process participants faced personality of individuals, are

going to tilt the balance of the most skilled. A negotiation is more than adiscussion followed by an agreement signed and initialed. This is an assessmentof the quality and the negotiation participants. From this perspective, integrity,

honesty and reliability are foremost elements. Integrity is really what makes thebusiness to go, being there no substitute for it. Without such a negotiation as nomatter how well prepared it is not hopeless because a negotiation should not bea developed sense of values and above all must be willing to share equally withthe other part of the current difficulties occurring.

Credibility is a quality which often is hidden in the price the customer pays.The price does not mean only money which is rather a combination of benefits. Interms of the buyer the right to check what was said or what was promised somuch part of the deal as offered for sale. Credibility involves "what is said, asthey say, especially when he says who he says". It is very difficult if notimpossible to negotiate with people who do not trust. As the honor should be

noted that most negotiators want to be or at least to seem honest, reasonable,but it quite difficult. Depending on which view is the concept of honor. Thenegotiation must consider each individual, starting from its position in society andespecially the respect they enjoy and ultimately not from their material situation.The concept of justice as do the honorable and reasonable but not quantifiable.Such terms are subjective and interpreted.

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