management. what is management all about ? – 1. 1. the organization definition : ~ is a system...

MANAGEMENTMANAGEMENT

WHAT IS MANAGEMENT ALL WHAT IS MANAGEMENT ALL ABOUT ? – 1.ABOUT ? – 1.

1. The organization1. The organization DefinitionDefinition : ~ is a system which operates : ~ is a system which operates

through human activity.through human activity. Determinative Determinative elementselements of the society, eg.: of the society, eg.:

cash income, entertainment, producing cash income, entertainment, producing products, services, etc. products, services, etc.

Theory: organizations are very complex Theory: organizations are very complex social formations, their links can’t be social formations, their links can’t be described with only one theory. described with only one theory.


Particular theories – different viewpoints, Particular theories – different viewpoints, different characteristics :different characteristics :

3 levels3 levels

Macro : cooperation among different Macro : cooperation among different organizations organizations

Mezzo : structures of the organizations, Mezzo : structures of the organizations, and influencing factors and influencing factors

Micro : behaviour of the members of the Micro : behaviour of the members of the organizations, organizations,motmotivation, ivation,

conflictsconflicts


2. The management2. The management DefinitionDefinition : management is about planning, : management is about planning,

organizing, leading, and controlling the organizing, leading, and controlling the financial-, physical-, informational-, and financial-, physical-, informational-, and human resources.human resources.

Management functionsManagement functions

4 areas4 areas

PlanningPlanning: is the process of setting : is the process of setting objectives and then objectives and then determining the determining the

steps needed to attain them. steps needed to attain them.


The planning process itself consists of five The planning process itself consists of five steps : (1) awarness of the opportunity, (2) steps : (1) awarness of the opportunity, (2) establishment of the objectives, (3) establishment of the objectives, (3) determination and choice of alternative determination and choice of alternative courses of action, (4) formulation of derivative courses of action, (4) formulation of derivative plans, and (5) budgeting of the plan. plans, and (5) budgeting of the plan.

OrganizingOrganizing : is the process of assigning duties : is the process of assigning duties to personnel and coordinating employee to personnel and coordinating employee efforts in order to ensure maximum efficiency.efforts in order to ensure maximum efficiency.The manager must consider both structure The manager must consider both structure and people ! and people !


ControllingControlling : every organization needs to : every organization needs to control both operations and people. The control both operations and people. The controlling process consists of three steps : controlling process consists of three steps : (1) establishment of standards, (2) (1) establishment of standards, (2) comparison of results against standards, and comparison of results against standards, and (3) correction of deviations.(3) correction of deviations.

LeadershipLeadership : is the process of influencing : is the process of influencing people to direct their efforts toward the people to direct their efforts toward the achievement of some particular goal. achievement of some particular goal. Managers must be knowledgeable about Managers must be knowledgeable about human behavior, the concept of leadership, human behavior, the concept of leadership, and communication.and communication.


3. The Roles of Managers 3. The Roles of Managers ( Mintzberg ) ( Mintzberg ) Interpersonal roles : to keep the organization Interpersonal roles : to keep the organization

running smoothly. As a running smoothly. As a Figurehead (1)Figurehead (1) : : manager meets important people, takes manager meets important people, takes customers to lunch, and simply lets people know customers to lunch, and simply lets people know that he or she is the key person; As a that he or she is the key person; As a Leader Leader (2) : the manager is responsible for hiring, (2) : the manager is responsible for hiring, training, counseling, and directing subordinates; training, counseling, and directing subordinates; As a As a Liaison (3) : the manager interacts with Liaison (3) : the manager interacts with people at the same level of the hierarchy as well people at the same level of the hierarchy as well as with others outside the organization .as with others outside the organization .


Informational roles : enable the manager to Informational roles : enable the manager to gather and pass on information. As a gather and pass on information. As a Monitor Monitor (1) : (1) : the manager talks to subordinates and the manager talks to subordinates and gathersgathers information that is useful in running the information that is useful in running the department. As a department. As a Disseminator (2) :Disseminator (2) : he or she he or she passes information along to subordinates. As a passes information along to subordinates. As a Spokesman (3) : Spokesman (3) : the manager provides the manager provides information to people outside the department.information to people outside the department.


Decisional roles : are the ones through which Decisional roles : are the ones through which the manager makes things happen. As an the manager makes things happen. As an Entrepreneur (1) : Entrepreneur (1) : who seeks to improve the who seeks to improve the unit and adapt it to changingunit and adapt it to changing conditions.conditions. As a As a Disturbance Handler (2) : Disturbance Handler (2) : trying to resolve trying to resolve problems before theyproblems before they become serious. As a become serious. As a Resource Allocator (3) : Resource Allocator (3) : the manager decides the manager decides who will get resources and how much they will who will get resources and how much they will receivereceive. As a. As a Negotiator (4) : a role that varies Negotiator (4) : a role that varies with the level of the organization.with the level of the organization.

STRUCTURAL CHARACTERISTICS STRUCTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. OF THE ORGANIZATIONS – 2.

1.1. Basic characteristics of the organizational Basic characteristics of the organizational structuresstructures

Division of labor : dividing work into small Division of labor : dividing work into small components so that the workers become components so that the workers become specialists in their tasks. ( functional, product, specialists in their tasks. ( functional, product, geographic – one dimension: functional-line geographic – one dimension: functional-line structure/multi dimensions: divisional, matrix structure/multi dimensions: divisional, matrix organizatorganizatiions )ons )

Authority : the right to command.( one line: Authority : the right to command.( one line: line structure/ multi lines: funline structure/ multi lines: funcctional, matrix ) tional, matrix )


Coordination : the synchronization of the Coordination : the synchronization of the human efforts of individuals and groups for human efforts of individuals and groups for the purpose of attaining organizational the purpose of attaining organizational efficiency. Coordination tools : Technocratic efficiency. Coordination tools : Technocratic – planning system, budgeting; Structural – – planning system, budgeting; Structural – report system, teams, projects; Employee report system, teams, projects; Employee oriented – individual/group motivationsoriented – individual/group motivations


2. Organizational Structures2. Organizational Structures2.1. Line Structure2.1. Line Structure Advantage : simple, well arranged, only one Advantage : simple, well arranged, only one

boss, reports and orders following the official boss, reports and orders following the official way, if the quantity of tasks has changed this way, if the quantity of tasks has changed this structure can be easily modified.structure can be easily modified.

Disadvantage : the activity of top management Disadvantage : the activity of top management is very complex, not flexible, distorbed is very complex, not flexible, distorbed informationinformation


Application : at small organizations, in critical Application : at small organizations, in critical situationssituations

Division of labor: according to the Division of labor: according to the accomplishing tasks, according to the accomplishing tasks, according to the manager’s decisionmanager’s decision

Authority : through the official way, centralized Authority : through the official way, centralized decisionsdecisions

Coordination : vertically through the official way, Coordination : vertically through the official way, with the tools of power with the tools of power


2.2. Staff Structure2.2. Staff Structure

Complete the line structure, the goal is to Complete the line structure, the goal is to help the managers in their complex taskshelp the managers in their complex tasks— includes experts on different fields ( eg.: — includes experts on different fields ( eg.: sales, accounting, etc.) without authority.sales, accounting, etc.) without authority.

STRUCTURAL CHARACTERISTICS STRUCTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.OF THE ORGANIZATIONS – 2.

2.3. Functional-Line Structure2.3. Functional-Line Structure Advantage : division of labor among top Advantage : division of labor among top

managers -according to professions-high managers -according to professions-high efficiency, clear regulations, complicated tasks efficiency, clear regulations, complicated tasks could be accomplishedcould be accomplished

Disadvantage : red tape, slow decision making Disadvantage : red tape, slow decision making process, decisions are concentrated on the top process, decisions are concentrated on the top of the hierarchy, decrease the ability of of the hierarchy, decrease the ability of accommodation, can not use wide range of accommodation, can not use wide range of productsproducts

STRUCTURAL CHARACTERISTICS OF STRUCTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. THE ORGANIZATIONS – 2.

Application : stabil environments, a narrow Application : stabil environments, a narrow range of productsrange of products

Division of labor: according to functions, task Division of labor: according to functions, task regulations according to job descriptionsregulations according to job descriptions

Authority : decision making according to Authority : decision making according to functions centralized, highly regulated decisionsfunctions centralized, highly regulated decisions

Coordination : vertically through the official way, Coordination : vertically through the official way, horizontally on the same level of hierarchy, horizontally on the same level of hierarchy, strong regulations, technocratic toolsstrong regulations, technocratic tools


2.4. Divisional Structure2.4. Divisional Structure2 faces of Janus : big organization - small 2 faces of Janus : big organization - small

organization organization Advantage : division of labor according to Advantage : division of labor according to

functions, big independency, motivation is functions, big independency, motivation is important, strategic and operational tasks are important, strategic and operational tasks are seperatedseperated

Disadvantage : paralell existing functional Disadvantage : paralell existing functional organizations,organizations, increased number of staff-increased number of staff-decentralization, divisions became selfish-decentralization, divisions became selfish-independencyindependency


Application : dynamic environments, a wide Application : dynamic environments, a wide range of productsrange of products

Division of labor: according to products, Division of labor: according to products, customers or regions; strategic leading comes customers or regions; strategic leading comes mainly from the center, but one part of them mainly from the center, but one part of them comes from the divisions. comes from the divisions.

Authority : decentralized decisions between the Authority : decentralized decisions between the central unit and the divisions, centralized within central unit and the divisions, centralized within the divisionsthe divisions


Coordination : horizontally hardly among Coordination : horizontally hardly among the divisions, technocratic toolsthe divisions, technocratic tools

2.5. The Matrix Structure2.5. The Matrix Structure Advantage : horizontally functional groups, Advantage : horizontally functional groups,

vertically groups of products or projects, vertically groups of products or projects, dynamic and flexible structure, good dynamic and flexible structure, good studying process at problem handlings, studying process at problem handlings, mixed structure, accommodate to the mixed structure, accommodate to the challenges challenges


Disadvantage : two way leading- conflicts are Disadvantage : two way leading- conflicts are always there, competition among the always there, competition among the managers, nobody dares to take the managers, nobody dares to take the responsibility for the decisionsresponsibility for the decisions

Application : dynamic environments, conflict Application : dynamic environments, conflict management skills within the organization, at management skills within the organization, at complex innovation claimscomplex innovation claims

Division of labor: horizontally functional Division of labor: horizontally functional (technical, sales, etc. ) vertically products or (technical, sales, etc. ) vertically products or projects, well done conflict management are projects, well done conflict management are highly suggested between the two divisionshighly suggested between the two divisions


Authority : functional and project leaders Authority : functional and project leaders making the decisions together, making the decisions together, decentralized decisions, decisions are notdecentralized decisions, decisions are not

highly regulated highly regulated Coordination : horizontally and vertically Coordination : horizontally and vertically

because of the structure, employee because of the structure, employee oriented toolsoriented tools


2.6. The Mechanical Structure2.6. The Mechanical Structure

Accommodates to the stabil environmentAccommodates to the stabil environment Division of labor : exact tasks, expertsDivision of labor : exact tasks, experts Hierarchy : coordination on top levels only, Hierarchy : coordination on top levels only,

Official way, regulationOfficial way, regulation Loyalty, Obedience ( eg.: manufacturing )Loyalty, Obedience ( eg.: manufacturing ) Concentrated authorityConcentrated authority


2.7. The Organical Structure2.7. The Organical StructureAccommodates to the dynamic environmentAccommodates to the dynamic environment No specialization, no expertsNo specialization, no experts Flexible Flexible Communication and interaction is in the Communication and interaction is in the

whole organizationwhole organization Decentralized authorityDecentralized authority Functions based on commitment( eg.: Functions based on commitment( eg.:

Research & Development )Research & Development )


2.8. Patological Structure2.8. Patological Structure

Organizations which are not able to became Organizations which are not able to became organical, because of the regulations of the organical, because of the regulations of the mechanical structure.mechanical structure.

( New type of tasks )( New type of tasks )

2.9. Mintzberg2.9. Mintzberg Mechanical Bureaucracy : simple tasks, stabil Mechanical Bureaucracy : simple tasks, stabil

environment, centralized controlling, being environment, centralized controlling, being efficient in productivity is the most important efficient in productivity is the most important


Professional Bureaucracy :decrease Professional Bureaucracy :decrease centralization, stabil environment, complicated centralization, stabil environment, complicated tasks, experts needed, independence is tasks, experts needed, independence is required eg.: hospitals, universitiesrequired eg.: hospitals, universities

Enterpreneur Structure : simple, flexible, Enterpreneur Structure : simple, flexible, centralized, experts behind the enterpreneur centralized, experts behind the enterpreneur

Adhocracy : are founded for certain projects Adhocracy : are founded for certain projects ( problems ), eg.: marketing, R&D( problems ), eg.: marketing, R&D

STRUCTURAL CHARACTERISTICS OF STRUCTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2.THE ORGANIZATIONS – 2.

3. 3. Environment, technology and strategyEnvironment, technology and strategy3.1. The organization & the environment3.1. The organization & the environmentAn organization exists in a certain environment An organization exists in a certain environment

that can be described as followsthat can be described as follows In a broad sense: by the economical In a broad sense: by the economical

procedures, legal regulations, government, procedures, legal regulations, government, technological development, politics, technological development, politics, international relationsinternational relations

In a narrow sense: by customers, suppliers, In a narrow sense: by customers, suppliers, competitors, newcomers, substitute product competitors, newcomers, substitute product producersproducers


According to Mr. Thompson & Mr. Duncan the According to Mr. Thompson & Mr. Duncan the most important environmental dimensions are :most important environmental dimensions are :

The Simpleness (few elements only – weak The Simpleness (few elements only – weak influence) & Complexity (many elements – influence) & Complexity (many elements – strong influence): how the number of the strong influence): how the number of the environmental elements influence the environmental elements influence the organizationorganization

Static ( not too many changes) & Dynamic Static ( not too many changes) & Dynamic (several changes) environment(several changes) environment

Uncertainty: we don’t have enough information Uncertainty: we don’t have enough information about the environmentabout the environment


Organizations respond to the environmental Organizations respond to the environmental changes:changes:

Adopt the changes – follower attitudeAdopt the changes – follower attitude Initiative attitudeInitiative attitude

Organizations can also influence the environment Organizations can also influence the environment by:by:

Good connections with the elements of the Good connections with the elements of the environment, eg.: organizational alliancesenvironment, eg.: organizational alliances

New employees - consultantsNew employees - consultants


3.2. Technology & Strategy3.2. Technology & Strategy

Connections between technology and Connections between technology and organizational structure. Woodward ( 3 groups):organizational structure. Woodward ( 3 groups):

Unique production – Organical org. structure Unique production – Organical org. structure (decentralized)(decentralized)

Mass production- Mechanical org. structure Mass production- Mechanical org. structure (bureaucracy)(bureaucracy)

Standardized production - Organical org. Standardized production - Organical org. Structure (decentralized)Structure (decentralized)


Connections between strategy and Connections between strategy and organizational structure. organizational structure.

Chandler:Chandler: Strategy determines the structure and the Strategy determines the structure and the

structure has weak influence on strategy. structure has weak influence on strategy.

CULTURAL CHARACTERISTICS OF CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 3.THE ORGANIZATIONS – 3.

1.1. Organizational CulturesOrganizational Cultures

Definition :Definition : the system of accepted values the system of accepted values and beliefs by the members of the and beliefs by the members of the organization.organization.


2. Components2. Components Decisions of the founder members: vision, Decisions of the founder members: vision,

values, norms in terms of employee selection, values, norms in terms of employee selection, profile, etc.profile, etc.

Mission & Principles: determine the future of Mission & Principles: determine the future of the organization, eg.: environmental relationsthe organization, eg.: environmental relations

Structure of the society: determine the quality of Structure of the society: determine the quality of interaction between people interaction between people


Norms & Values: expected behavior of the Norms & Values: expected behavior of the employees & activitiesemployees & activities

Preserved stories & symbols: stories from the Preserved stories & symbols: stories from the past eg.: ceremonies, rituals; which belong to past eg.: ceremonies, rituals; which belong to the cultural values of the organizationthe cultural values of the organization

Institutional operation: organizational policies, Institutional operation: organizational policies, motivation system, authority, communication, motivation system, authority, communication,


3. Tipologies3. Tipologies3.1.Handy3.1.Handy Power culture : the ”pater”, who founded the Power culture : the ”pater”, who founded the

organization, is in the central; he makes all the organization, is in the central; he makes all the decisions, useful at small organizations, eg.: decisions, useful at small organizations, eg.: financial crisisfinancial crisis

Role culture : stabil environment, rules & Role culture : stabil environment, rules & regulations are the most important, bureaucratic regulations are the most important, bureaucratic organizations, eg.: mass productionorganizations, eg.: mass production

Task culture : the goal is to solve the tasks, Task culture : the goal is to solve the tasks, regulations are not too important, matrix regulations are not too important, matrix organizations, eg.: R&Dorganizations, eg.: R&D

CULTURAL CHARACTERISTICS OF THE CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 3.ORGANIZATIONS – 3.

Personality culture : special organizations eg.: Personality culture : special organizations eg.: attorney officesattorney offices

3.2. Quinn3.2. Quinn

MarginMargin

2 dimensions : Margin of movements ( level of flexibility / 2 dimensions : Margin of movements ( level of flexibility / controlling ), Orientation ( whether the organizations focus on controlling ), Orientation ( whether the organizations focus on inside or outside of the company )inside or outside of the company )

Regulation oriented

Goal oriented

SupportiveInnovation oriented

Orientation


Supportive : focus on human relations, Supportive : focus on human relations, inside inside

Regulation oriented : focus on regulations Regulation oriented : focus on regulations and stability,and stability,

Goal oriented : focus on goals, strong Goal oriented : focus on goals, strong regulations, outside regulations, outside

Innovation oriented : accommodate to the Innovation oriented : accommodate to the environment, creativity, developmentenvironment, creativity, development


3.3. Schein : organizational cultures according 3.3. Schein : organizational cultures according to professionsto professions

Operators : basic activitiesOperators : basic activities Engineers : experts in technical processesEngineers : experts in technical processes Executives : managersExecutives : managers

Conflicts : operators-engineersConflicts : operators-engineers


3.4. Hofstede : cultural differences3.4. Hofstede : cultural differences Power distance dimension : boss - Power distance dimension : boss -

subordinatessubordinates Uncertainity-Avoidance dimension : how Uncertainity-Avoidance dimension : how

strong are the regulations eg.: risk or strong are the regulations eg.: risk or security, hard work, etc.security, hard work, etc.

Individualism-Collectivism dimension : I-WeIndividualism-Collectivism dimension : I-We Masculinity dimension : Feminine : equality -Masculinity dimension : Feminine : equality -

Masculine : man dominates ( US-Japan )Masculine : man dominates ( US-Japan )

MOTIVATION – 4.MOTIVATION – 4.

1.1. What is motivation?What is motivation? How to manage subordinates to reach the How to manage subordinates to reach the

company’s goals and be satisfied at the same company’s goals and be satisfied at the same timetime

Motivation is concerned with the ”why” of Motivation is concerned with the ”why” of human behavior. Why do people do things?human behavior. Why do people do things?

The person directs his/her behavior toward The person directs his/her behavior toward important goals ( wishes, desires, etc.). important goals ( wishes, desires, etc.). Unsatisfied needs Goal directed behavior Unsatisfied needs Goal directed behavior

Need satisfaction Need satisfaction


An unsatisfied need is a starting point in the An unsatisfied need is a starting point in the process of motivation. This cause tension within process of motivation. This cause tension within the individual, leading the individual to engage the individual, leading the individual to engage in some kind of behavior to satisfy the need, in some kind of behavior to satisfy the need, and therand thereeby reduce the tension.by reduce the tension.

If the need couldn’t be satisfied, cause If the need couldn’t be satisfied, cause frustration, and aggressive behavior, such asfrustration, and aggressive behavior, such as

1. Rational behavior : always blame it on others1. Rational behavior : always blame it on others

2. Regration : always give up trying2. Regration : always give up trying


3. Complex : always behave the same 3. Complex : always behave the same way, and never reach anythingway, and never reach anything

4. Resignation : always escape from 4. Resignation : always escape from reality, looses faith in lifereality, looses faith in life


2. The content theories of motivation2. The content theories of motivation

2.1. Maslow’s need theory : holds that an 2.1. Maslow’s need theory : holds that an individual strives for need satisfaction at a individual strives for need satisfaction at a particular level. When needs at one level particular level. When needs at one level basically satisfied, they no longer serve as basically satisfied, they no longer serve as motivators, and the individual moves on to the motivators, and the individual moves on to the next level of hierarchy.next level of hierarchy.

2

3

4

1

5

MOTIVATION – 4.MOTIVATION – 4. The Five LevelsThe Five Levels1.1. Physiological needs : primary needs, eg.: Physiological needs : primary needs, eg.:

food, clothing, etc.food, clothing, etc.2.2. Safety needs : individual’s need for security or Safety needs : individual’s need for security or

protectionprotection3.3. Social needs : individual’s need for love, Social needs : individual’s need for love,

sense of belongingnesssense of belongingness4.4. Esteem needs : the individual needs to feel Esteem needs : the individual needs to feel

important, and power and status provide a important, and power and status provide a basis for this feelingbasis for this feeling

5.5. Self – Actualization needs : to fulfill one’s Self – Actualization needs : to fulfill one’s desiredesire

MOTIVATION – 4.MOTIVATION – 4.2.2. Alderfer’s need theory 2.2. Alderfer’s need theory

E- Existence needs -1: are related to survival and E- Existence needs -1: are related to survival and safety safety

R- Relatedness needs – 2: stress interpersonal R- Relatedness needs – 2: stress interpersonal and social relationships and social relationships

G- Growth needs – 3: are related to the G- Growth needs – 3: are related to the individual’s desire for personal developmentindividual’s desire for personal development

2.3. Herzberg’s two-factor theory2.3. Herzberg’s two-factor theory

When do people feel exceptionally good or bad When do people feel exceptionally good or bad about their job. What kind of factors link to about their job. What kind of factors link to satisfaction or dissatisfaction ?satisfaction or dissatisfaction ?


Motivators – some job conditions build Motivators – some job conditions build high levels of motivation and job high levels of motivation and job satisfaction, such as :satisfaction, such as :Achievement,Achievement,Recognition,Recognition,Advancement,Advancement,The work itself,The work itself,The possibility of personal growth,The possibility of personal growth,ResponsibilityResponsibility

MOTIVATION – 4.MOTIVATION – 4. Maintenance factors : don’t build strong Maintenance factors : don’t build strong

motivation, but dissatisfy employees when they motivation, but dissatisfy employees when they are not present.are not present.

Salary,Salary,

Supervision,Supervision,

Working conditions,Working conditions,

Interpersonal relations,Interpersonal relations,

Company policies, and administrationsCompany policies, and administrations


Satisfaction No satisfaction

Motivators

Maintenance factors

No dissatisfaction Dissatisfaction


2.4. McClelland : achievement motivation 2.4. McClelland : achievement motivation theory : based on ”learned” needstheory : based on ”learned” needs

1. Affiliation Need: friendship, love, 1. Affiliation Need: friendship, love, cooperationcooperation

2. Achievement Need: success, new 2. Achievement Need: success, new challchalleengenge

3. Need of Power: prestige, the desire to 3. Need of Power: prestige, the desire to influence people influence people

MOTIVATION – 4.MOTIVATION – 4.3. The process theories of motivation3. The process theories of motivation

3.1. Skinner – Reinforcement theory 3.1. Skinner – Reinforcement theory

considers the use of positive or negative considers the use of positive or negative reinforces to motivate or create an environment reinforces to motivate or create an environment of motivation.of motivation.

Positive : rewarding someone for certain Positive : rewarding someone for certain achievementsachievements

Negative : stops those consequences which the Negative : stops those consequences which the subordinates don’t like ( disciplines ).subordinates don’t like ( disciplines ).


3.2. Theory of Objectives-Management by 3.2. Theory of Objectives-Management by Objectives ( MbO )Objectives ( MbO )

What are the goals and thoughts of the What are the goals and thoughts of the subordinates ?subordinates ?

This method typically involves the This method typically involves the establishment of objectives to be establishment of objectives to be accomplished by the subordinate.accomplished by the subordinate.


3.3. Vroom’s Expectancy Theory3.3. Vroom’s Expectancy TheoryIndividuals will exert work effort to achieve Individuals will exert work effort to achieve performance which will result in preferred performance which will result in preferred rewards. The management FOCUS that follows rewards. The management FOCUS that follows is about rewarding workers in such a way that is about rewarding workers in such a way that increased effort occurs.increased effort occurs.Individual effort to perform (tools, resources, Individual effort to perform (tools, resources, skills): results in Level of performance (this skills): results in Level of performance (this effort will lead to reward): results in Outcomes effort will lead to reward): results in Outcomes (Instrinsic reward : eg.: recognition, or Extrinsic (Instrinsic reward : eg.: recognition, or Extrinsic reward: eg.: job security )reward: eg.: job security )

Why is a led company Why is a led company marketable? - 5.marketable? - 5.

1.1. The leader & the managerThe leader & the manager The leaderThe leader = conductor of an orchestra, = conductor of an orchestra,

creates global concepts and hands them out creates global concepts and hands them out to to the managersthe managers to transform into well- to transform into well-structured tasksstructured tasks

The leader analyzes the logical relations The leader analyzes the logical relations ( if-then rules ), and the manager deals ( if-then rules ), and the manager deals with arithmetical relationswith arithmetical relations

The leader: what to do?The leader: what to do? The manager: how to do?The manager: how to do?


The charismatic leaderThe charismatic leader What makes a charismatic leader is the What makes a charismatic leader is the

coherence between his/her acts and thinking. coherence between his/her acts and thinking. He supplies a certain power. His/her position is He supplies a certain power. His/her position is justified by his/her aptitude rather than mere justified by his/her aptitude rather than mere appointmentappointment

The charismatic leader moves throughout the The charismatic leader moves throughout the network to be on time on the right place to network to be on time on the right place to make the needed decisionmake the needed decision


At the modern organizations the leader goes At the modern organizations the leader goes after the decisions, not the decisions go after after the decisions, not the decisions go after the leader the leader

Possessing knowledge is essential to efficiently Possessing knowledge is essential to efficiently interact with the network. To be able to make interact with the network. To be able to make decisions at all levels of the network the decisions at all levels of the network the decision maker has to be familiar with every decision maker has to be familiar with every field at a certain level. And to be able to field at a certain level. And to be able to influence he/she has to have the attributes of influence he/she has to have the attributes of the charismatic leader the charismatic leader


concept construction realization

WHAT ?

Knowledge of process

Knowledge of human characterchanges (NEW)

HOW?


2. How does an e-leader make influence?2. How does an e-leader make influence?

The leader needs followers ( the The leader needs followers ( the managers)managers)

Leadership: ‘A’ influences ‘B’ to do Leadership: ‘A’ influences ‘B’ to do things that serve B’s interest anywaythings that serve B’s interest anyway

Managing: ‘A’ motivates ‘B’ to fulfill Managing: ‘A’ motivates ‘B’ to fulfill the expectations throughout which the expectations throughout which they both can satisfy their own needsthey both can satisfy their own needs


3. How does the e-leader create symbols & 3. How does the e-leader create symbols & metaphoresmetaphores

The changes of the environment are so The changes of the environment are so accelerated that even the weak signals accelerated that even the weak signals (homályos jelek ) are received too late for the (homályos jelek ) are received too late for the traditional responses.traditional responses.

We could prepare ourselves for the surprises We could prepare ourselves for the surprises by learning, and keeping in shape our ability to by learning, and keeping in shape our ability to respond ( reagáló képesség) .respond ( reagáló képesség) .


Strong negative signs ( eg. Toothache ) Strong negative signs ( eg. Toothache ) override the positive ( eg.: being in love with override the positive ( eg.: being in love with someone ) ones. Strong or familiar signs call someone ) ones. Strong or familiar signs call more our attention. We can only focus on one more our attention. We can only focus on one thing at the same time. thing at the same time.

The leader doesn’t define the signs in The leader doesn’t define the signs in advance he/she looks for. advance he/she looks for.

He/she creates symbols from the signsHe/she creates symbols from the signs


The leader use the language of the Metaphores The leader use the language of the Metaphores – tailored to the actual need . (new concepts – tailored to the actual need . (new concepts cannot be described with old metaphores). Eg. cannot be described with old metaphores). Eg. An elephant-blind peopleAn elephant-blind people

The leader is able to see the whole picture, and The leader is able to see the whole picture, and use the rules of logic- he/she thinks in use the rules of logic- he/she thinks in metaphoresmetaphores

Why are routine decisions delegated to Why are routine decisions delegated to the subordinates by the e-leader? - 6.the subordinates by the e-leader? - 6.

1. Implicit knowledge1. Implicit knowledge

It can’t be put in words, but can be experiencedszavakba önthetetlen ésmegtapasztalható

It can be put in words, and learned

Szavakba önthetőtanulható

Knowledge-tudás

Skill-ügyesség

rulesmesterségbeliszabályok

(statical-statikus

additional-

járulékos)

actioncselekedet

(dynamical-dinamikus

focalfokális)

Facts-tények

measurement(statikus

járulékos)

event(dinamikus

fokális)

Intuition intuíció

explanationmagyarázat

(statikusjárulékos)

cluesejtés

(dinamikusfokális)

What is the knowledge all about?

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I. Intuition is needed when a new dilemma is I. Intuition is needed when a new dilemma is there, and looking for the solution. It suddenly there, and looking for the solution. It suddenly happens. Intuition=picture ( eg.: the first kiss )happens. Intuition=picture ( eg.: the first kiss )

Clue : The leadership is based on a clue, Clue : The leadership is based on a clue, which can’t be put in words, but can be which can’t be put in words, but can be experienced.experienced.

Explanation: The leader explains how he/she Explanation: The leader explains how he/she got this solution. Rules are not valid for a new got this solution. Rules are not valid for a new dilemma dilemma


II. FactsII. Facts Event : Something happens, which Event : Something happens, which can’t be put

in words, but can be experienced. ( eg.: an explosion)

Measurement : what is the truth? Measurement : what is the truth? Truth=measurable? ( eg.: the radiation of the Truth=measurable? ( eg.: the radiation of the explosion, do I have 10.000 Ft in the pocket, explosion, do I have 10.000 Ft in the pocket, are you in love?). True/false- Compromised are you in love?). True/false- Compromised measure. If the truth is not measurable there measure. If the truth is not measurable there are no facts. The more the knowledge is are no facts. The more the knowledge is improved, the more uncertain it isimproved, the more uncertain it is


Leadership is not always based on the Leadership is not always based on the improvable facts. The leader is looking for the improvable facts. The leader is looking for the connections behind the facts, where the connections behind the facts, where the personal knowledge is needed. The leader personal knowledge is needed. The leader uses the facts to support his/her beliefs-uses the facts to support his/her beliefs-decisions. The leader is inseparable from decisions. The leader is inseparable from his/her decision. Rules are not valid for a new his/her decision. Rules are not valid for a new dilemma.dilemma.


III. SkillsIII. Skills The rules of profession : how well we know our The rules of profession : how well we know our

profession, how well we are able to imitate the profession, how well we are able to imitate the master. ( eg.: reading, speaking a language ) master. ( eg.: reading, speaking a language ) It can be put in words, and learned

Action: Action: It can’t be put in words, but can be experienced. ( eg.: reading, speaking a language) The more you practice the better you be!

The leaders use their skills for communication to have their decisions accepted


2. Explicit /Implicit knowledge in the decisions2. Explicit /Implicit knowledge in the decisions

Reflex, routine, original decisionsReflex, routine, original decisionsreflex

WC, cigarettes Flower,

rutinmanager

megtanult szabályok

eredeti

explicit tudás

hallgatólagos tudáshallgatólagos tudás

reflexExecutor-feladatelvégző

Instinctive action-ösztönös cselekvés

WC, c, Flower, car divorce, Stock-készlet, payement Customer, product S&D-K+F, human-humán

routinemanager

megtanult szabályok- learned rules

originalLeader

Symbols, pictures-szimbólumok és képek

Explicit knowledgeexplicit tudás

Implicit knowledgehallgatólagos tudás

Implicit knowledgehallgatólagos tudás

Implicit knowledge: it can not be put in words. „ If….then” rules

Explicit knowledge : It can be put in words


The leader faces different kind of dilemmas, The leader faces different kind of dilemmas, where he/she has to decide which-, and what where he/she has to decide which-, and what level of his/her knowledge (explicit, implicit) level of his/her knowledge (explicit, implicit) will be appliedwill be applied

There are 3 types of dilemma:There are 3 types of dilemma:

1.1. Reflex decision: we do not think about it, we Reflex decision: we do not think about it, we just do it.- Instinctive actions. Eg.: WC, Paying just do it.- Instinctive actions. Eg.: WC, Paying out the wages: you will be paid out for your out the wages: you will be paid out for your monthly work, buying cigarettes, etc.monthly work, buying cigarettes, etc.


2. Routine decision: explicit knowledge- learned 2. Routine decision: explicit knowledge- learned rules. Eg.: buying flower for someone’s rules. Eg.: buying flower for someone’s birthday, writing a contract, buying a car which birthday, writing a contract, buying a car which satisfies our criterias, production according to satisfies our criterias, production according to the technological descriptionthe technological description

3. Original decision: new situation - the leader 3. Original decision: new situation - the leader has to find the new solution- implicit knowledge has to find the new solution- implicit knowledge – symbols and pictures. Eg.: R&D, divorce– symbols and pictures. Eg.: R&D, divorce


3. 3. Routine decisionsRoutine decisions

Original decisionOriginal decision leader ( leader (he is thehe is the coordinator )coordinator )

Routine decisionRoutine decision manager manager (he is the(he is the expert)expert)

Reflex decisionReflex decision executorexecutor

The leader delegates the routine decisions to the manager


Problems:Problems:- Making a routine decision, as an original one- Making a routine decision, as an original one- Focus on simple solutions without - Focus on simple solutions without

understanding the rules of routineunderstanding the rules of routine- Treat a new dilemma like another type of an old Treat a new dilemma like another type of an old

dilemmadilemmaThe organization is slow, if each dilemma is The organization is slow, if each dilemma is handled as unique, and the organization can handled as unique, and the organization can not react in time if each dilemma is handled not react in time if each dilemma is handled from routine from routine

Why can’t creative communities be Why can’t creative communities be effectively led by orders? – 7.effectively led by orders? – 7.

2.-3. 2.-3. How will be the novum accepted?How will be the novum accepted? Novum: to create new expectations, new Novum: to create new expectations, new

connectionsconnections

ProduktumOutput

IQIQ

FenyegetThreat

VonzóAttractive

HitelesAuthentic

Behódolsubserve

AzonosulSelf-identification

InteriorizálInteriorisate

Meggyőzés

Convincing

EQ

EQ

StatikusStatical

DinamikusDynamical


The layman believes that the quality of the The layman believes that the quality of the output is enough for securing acceptance of the output is enough for securing acceptance of the novum--- unfortunately this is not enoughnovum--- unfortunately this is not enough

The solution of the output is a new knowledge The solution of the output is a new knowledge ( a dynamical value ), which is known by the ( a dynamical value ), which is known by the leaders, but not known by the followersleaders, but not known by the followers

Mistake : If the leader wants to convince the Mistake : If the leader wants to convince the follower with professional arguments follower with professional arguments


1. The EQ leadership1. The EQ leadership The output is already given, and it has to be a The output is already given, and it has to be a

good quality outputgood quality output If the leader wants to convince the follower with If the leader wants to convince the follower with

IQ ( professional arguments), can cause IQ ( professional arguments), can cause inferiority complex, that is whyinferiority complex, that is why

The leader has to influence the follower with The leader has to influence the follower with EQ instead of IQEQ instead of IQ


The leader use the EQ ( 3 types: authentic, The leader use the EQ ( 3 types: authentic, attrattraactive, threat ) to influence the follower ctive, threat ) to influence the follower

Eg. : if the leader describes only the profit of Eg. : if the leader describes only the profit of the output, the follower refuses its acceptance. the output, the follower refuses its acceptance. If the leader threatens the follower: ” we are If the leader threatens the follower: ” we are not able to keep step with the competition” – not able to keep step with the competition” – the follower will subserve the follower will subserve

If the follower likes the leader’s performance– If the follower likes the leader’s performance– he/ she is able to identify oneself with the he/ she is able to identify oneself with the output output


When the leader is able to change the When the leader is able to change the follower’s order of value-the follower follower’s order of value-the follower interorisate the outputinterorisate the output

The leader with EQ knows exactly that he/she The leader with EQ knows exactly that he/she has to influence the emotions of the follower has to influence the emotions of the follower to be able to sell the productto be able to sell the product

(The followers are very sensitive for the soft (The followers are very sensitive for the soft signs) signs)

Why is there a need for extraordinary Why is there a need for extraordinary creators? -8.creators? -8.

1.1. Along which way does the creator think?Along which way does the creator think?

The weird ideaThe weird idea During the problem solving process we are During the problem solving process we are

not paying attention to the explanationnot paying attention to the explanation If the weird idea is there (result of the intuition) If the weird idea is there (result of the intuition)

our sense starts to act as an inspector, and our sense starts to act as an inspector, and tries to refute it. tries to refute it.

We compare the weird idea with our explicit We compare the weird idea with our explicit expectations. expectations.


Although we know that our explicit expectations Although we know that our explicit expectations are not satisfied with it, we do feel that this is are not satisfied with it, we do feel that this is the right solution, because we have satisfied the right solution, because we have satisfied our implicit expectationsour implicit expectations

Explanations help to reduce the contradictions Explanations help to reduce the contradictions between our knowledge and our actionsbetween our knowledge and our actions

There are two possibilities to reduce the There are two possibilities to reduce the contradictions: Either we don’t act against our contradictions: Either we don’t act against our knowledge, or we change our knowledgeknowledge, or we change our knowledge


The knowledge of the novum’s users are The knowledge of the novum’s users are based on learned and experienced patternsbased on learned and experienced patterns

Their knowledge is opposite to the weird Their knowledge is opposite to the weird ideaidea The new solution does not fit in their The new solution does not fit in their worldworld That is why logical That is why logical explanations are needed!explanations are needed!

We have to convince the novum’usersWe have to convince the novum’users

Why is there a need for Why is there a need for extraordinary creators? -8.extraordinary creators? -8.

2. What defines the quality of novum?2. What defines the quality of novum? There are a lot of so called „”high quality There are a lot of so called „”high quality

products” ( eg.: Barbie doll, Tamagocchi, products” ( eg.: Barbie doll, Tamagocchi, Atomic bomb)- But are these good things?-Atomic bomb)- But are these good things?-NO!NO!

High quality should come with the concept of High quality should come with the concept of right-we have to make good things in high right-we have to make good things in high qualityquality

There may be 2 different approaches to There may be 2 different approaches to quality :quality :


””Doing things well”-target oriented,”Producing Doing things well”-target oriented,”Producing good things”- value orientedgood things”- value oriented

Neither the quality nor the human knowledge Neither the quality nor the human knowledge can be comprehended by its elements ( eg.: can be comprehended by its elements ( eg.: Grandmother’s cake, Mc Donalds hamburger)Grandmother’s cake, Mc Donalds hamburger)

Quality cannot be unpersonal, universal, and Quality cannot be unpersonal, universal, and objective. Quality always come together with objective. Quality always come together with the experience of the real worldthe experience of the real world

We are only able to experience the value, and We are only able to experience the value, and through the value we perceive the quality through the value we perceive the quality


The value of the product is defined purpose The value of the product is defined purpose rather than its elementsrather than its elements

The value of the output:The value of the output:

- we want something valuable,- we want something valuable,

- dynamic value: discovering new - dynamic value: discovering new materials, working out new methodsmaterials, working out new methods

- static value: interpretation of the- static value: interpretation of the


Static value ( standardization)Static value ( standardization)

Sometimes you have to accept standards, but Sometimes you have to accept standards, but that doesn’t mean that standards can be that doesn’t mean that standards can be applied in every situationapplied in every situation

The executors have to accept the expectations The executors have to accept the expectations of the manager, problem solvers are not bound of the manager, problem solvers are not bound by themby them


The static value (process) defines the The static value (process) defines the structurestructure

At the planning process precision is very At the planning process precision is very importantimportant

Strict deadlines, budgetStrict deadlines, budget The process is sensitive to changes and The process is sensitive to changes and

interruptionsinterruptions


Standardized expectations: you don’t have to Standardized expectations: you don’t have to make a decisionmake a decision makes your life very makes your life very comfortablecomfortable standardized needs ( eg.: Ads standardized needs ( eg.: Ads on TV : certain products you’ll like, certain on TV : certain products you’ll like, certain products you won’t like )products you won’t like ) You loose your You loose your freedom, BUT that makes your life easier !freedom, BUT that makes your life easier !

Human relations should work by default and Human relations should work by default and not by standardsnot by standards

The problem solver should not smile only The problem solver should not smile only because he was trained to, but because because he was trained to, but because he/she has something to offerhe/she has something to offer


Dynamic qualityDynamic quality

There is always something good in There is always something good in everything, which emerging suddenly everything, which emerging suddenly without you being able to forecast or without you being able to forecast or repeat it repeat it

The leader often has to go beyond the The leader often has to go beyond the static quality to be able to create static quality to be able to create something newsomething new


3. How can be a genios sponsored / supported?3. How can be a genios sponsored / supported? FoundationsFoundations TendersTenders CompaniesCompanies Attila József – Baumgartner Foundation, Attila József – Baumgartner Foundation,

Mozart – Maecenas: individuals were Mozart – Maecenas: individuals were supported, not the achievement!supported, not the achievement!

Problems: - Lack of Maecenas,Problems: - Lack of Maecenas, - Results wanted in advance – - Results wanted in advance –

what about the genius?what about the genius?


Moral philosophy: if a company supports a Moral philosophy: if a company supports a creative community – the company wants creative community – the company wants to influence the creators, and use the to influence the creators, and use the sponsorship in their own interest. Eg.: sponsorship in their own interest. Eg.: MATÁV: Mindentudás EgyetemeMATÁV: Mindentudás Egyeteme

Why is the web age trigger a culture Why is the web age trigger a culture change? – 9.change? – 9.

1.1. The e- communicationThe e- communication

Accelerated world: where nothing is secure Accelerated world: where nothing is secure

( eg.: workplace, technology, etc.): ( eg.: workplace, technology, etc.):

when someone leaves the company the when someone leaves the company the „knowledge” goes with him/her. „knowledge” goes with him/her.

We are looking for virtual connections: no We are looking for virtual connections: no time & space barriers! – web interactivity : time & space barriers! – web interactivity : „knowledge producer”„knowledge producer”


we want more and more information, sowe want more and more information, so rapidity,rapidity, briefness,briefness, signs signs (-: (-: )-: )-: illustrations, pictures needed!illustrations, pictures needed! Errors of spelling are not too important!Errors of spelling are not too important! BUT!!! CONFIDENCEBUT!!! CONFIDENCE


2. The share in customers2. The share in customers How can we support the share in customers?How can we support the share in customers?

The share in customers replaces the share in The share in customers replaces the share in market, as we created a basis for trust for our market, as we created a basis for trust for our current customers.current customers.

Our customers know what they can expect from Our customers know what they can expect from us ( quality, quantity) us ( quality, quantity) similarly to our similarly to our competitors, who also have their own regular competitors, who also have their own regular customerscustomers


Consequence: we do not have to look out Consequence: we do not have to look out for new customers, BUT! We have to learn for new customers, BUT! We have to learn how to sell other products to our regular how to sell other products to our regular customers; as it is the simplest and customers; as it is the simplest and cheapest solution to survive.cheapest solution to survive.

We have to influence the customers: We have to influence the customers: Marketing: 4P! Eg.: Tesco, CoraMarketing: 4P! Eg.: Tesco, Cora


3. What is the problem with out-of-date notions?3. What is the problem with out-of-date notions? If we want to satisfy the expectations clients’, If we want to satisfy the expectations clients’,

we have to learn how to change the culturewe have to learn how to change the culture Changing a culture is not easy, we have to mix Changing a culture is not easy, we have to mix

the existing culture with the new e-culturethe existing culture with the new e-culture If we want to sell a novelty then, we have to If we want to sell a novelty then, we have to

show the customers its essence, BUT!show the customers its essence, BUT! A novelty cannot be described by the old, out-A novelty cannot be described by the old, out-

of-date notions – SO! of-date notions – SO!


We have to create new metaphores and We have to create new metaphores and pictures, otherwise our company is not pictures, otherwise our company is not able to survive.able to survive.

Why can’t the knowledge user company Why can’t the knowledge user company become a knowledge creator ? – 10.become a knowledge creator ? – 10.

1.1. Provincial & Civilized companiesProvincial & Civilized companies I. Profit-oriented company: accepts staticI. Profit-oriented company: accepts static values- values-

(provincial) successful companies(provincial) successful companies Fiscal reasoning dominates : positive financial Fiscal reasoning dominates : positive financial

balancebalance The target of development, and expected The target of development, and expected

results are clearly outlinedresults are clearly outlined The company wants to satisfy the customer’s The company wants to satisfy the customer’s

explicit needsexplicit needs Well structured, centralized task divisionWell structured, centralized task division


The static value (process) defines the structureThe static value (process) defines the structure At the planning process precision is very At the planning process precision is very

importantimportant Strict deadlines, budgetStrict deadlines, budget The process is sensitive to changes and The process is sensitive to changes and

interinterrruptionsuptions


II. Value - oriented company:II. Value - oriented company: accepts dynamic accepts dynamic values: civilized companiesvalues: civilized companies

Owners reasoning: the value of the knowledge Owners reasoning: the value of the knowledge is not defined by a positive balance, but the is not defined by a positive balance, but the market price of a companymarket price of a company

The problem is circumscribable, but the solution The problem is circumscribable, but the solution is notis not

The stress is on creating new solutions, that The stress is on creating new solutions, that increase the value of the companyincrease the value of the company


Dynamic value (the response) determines the Dynamic value (the response) determines the structurestructure

New solutions quickly turn into static value, New solutions quickly turn into static value, which brings a fast change in organizatiwhich brings a fast change in organizatioonal nal structure, and production organizationstructure, and production organization

Individual concepts are supportedIndividual concepts are supported There are a number of ad hoc teams working There are a number of ad hoc teams working

on the same issue.on the same issue.


2. 2. How should a genius be used and how not?How should a genius be used and how not? Normally you would think in a convergent way: Normally you would think in a convergent way:

there is only one logical solutionthere is only one logical solution Lateral thinking is differentLateral thinking is different Lateral thinking -Lateral thinking - we change our reference we change our reference

system to be able to understand the weird ideasystem to be able to understand the weird idea The new reference system shows things from The new reference system shows things from

different aspects Eg.: jokes-punchlines: shows different aspects Eg.: jokes-punchlines: shows the order the order


The genious:The genious: Able to create extraordinary ideas, solutionsAble to create extraordinary ideas, solutions At the age of 2-3 – creative gamesAt the age of 2-3 – creative games At the age of 5 – looking for coherence behind At the age of 5 – looking for coherence behind

things which are incoherentthings which are incoherent They are rigid to changeThey are rigid to change Lots of friends around them – sometimes they Lots of friends around them – sometimes they

lead a loose lifelead a loose life They are not good at IQ tests, and well They are not good at IQ tests, and well

structured tasksstructured tasks


3. Decision making or Creativity?3. Decision making or Creativity?

a.) Decision making process play a bigger role:a.) Decision making process play a bigger role: at the profit oriented (provincial) companies, at the profit oriented (provincial) companies,

where where they have mostly well – structured tasks ( only they have mostly well – structured tasks ( only

1 solution!), and the goals are1 solution!), and the goals are to use the knowledge as effectively as possible.to use the knowledge as effectively as possible.


b.) Creativity plays a bigger role:b.) Creativity plays a bigger role: at the value oriented (civilized) companies, at the value oriented (civilized) companies,

where where they have mostly bad– structured tasks they have mostly bad– structured tasks

( more than 1 solution!), and the goals are( more than 1 solution!), and the goals are to create new values, novumsto create new values, novums

Strategic analysis methods – 11.Strategic analysis methods – 11.

1.1. The BCG portfolio: used to evaluate the SBUsThe BCG portfolio: used to evaluate the SBUs The first step in this approach is to identify the The first step in this approach is to identify the

various divisions, product lines, and so forth various divisions, product lines, and so forth that can be considered a ”business”. When that can be considered a ”business”. When identified, these are referred to as strategic identified, these are referred to as strategic business units (SBUs) and have the following business units (SBUs) and have the following characteristics: They have :a distinct mission, characteristics: They have :a distinct mission, their own competitors, they are a single their own competitors, they are a single business or collection of related businesses, business or collection of related businesses, they can be planned independently from the they can be planned independently from the other businesses of the organizationother businesses of the organization


The BCG Matrix helps the organization to The BCG Matrix helps the organization to allocate resources among the various SBUsallocate resources among the various SBUs

The BCG matrix illustrates 2 business The BCG matrix illustrates 2 business indicators of great strategic importance:indicators of great strategic importance:

1.1.The vertical indicator is the market growth rate: The vertical indicator is the market growth rate: refers to the annual rate of growth of the market refers to the annual rate of growth of the market in which the product, division, or product is in which the product, division, or product is locatedlocated

2.2.The horizontal indicator: relative market share: The horizontal indicator: relative market share: illustrates an SBUs market share compared to illustrates an SBUs market share compared to that of the most successful of the competitionthat of the most successful of the competition


Star Question mark

Cash cow Cash trapsRelative market share

Market growth share

High

Low

High Low


Stars: an SBU with high share of a high – Stars: an SBU with high share of a high – growth market is considered a star. Eg.: growth market is considered a star. Eg.: building & investing. Stars need a great deal of building & investing. Stars need a great deal of financial resources, because of their rapid financial resources, because of their rapid growth. When growth slows down, they become growth. When growth slows down, they become cash cows. cash cows.

Cash cows: an SBU that has a high share of a Cash cows: an SBU that has a high share of a low-growth market is labeled a cash cow. Eg.: low-growth market is labeled a cash cow. Eg.: banks. They produce a great amount of cash banks. They produce a great amount of cash for the organizfor the organizaation, and do not require a great tion, and do not require a great amount of financial resources for growth and amount of financial resources for growth and expansionexpansion

Strategic analysis methods – 11.Strategic analysis methods – 11. Question marks: when an SBU has a low share Question marks: when an SBU has a low share

of a high-growth market, the organization must of a high-growth market, the organization must decide whether to spend more financial decide whether to spend more financial resources to build it into a star or to phase it or resources to build it into a star or to phase it or eliminate it all togethereliminate it all together

Cash traps: when an SBU has a low share of a Cash traps: when an SBU has a low share of a low-growth market, it may generate enough low-growth market, it may generate enough cash to maintain itself or may drain money from cash to maintain itself or may drain money from the other SBUs. the other SBUs.


2. 2. MCKinsey portfolio (GE matrix)MCKinsey portfolio (GE matrix) The GE matrix illustrates 2 business indicators The GE matrix illustrates 2 business indicators

of great strategic importance:of great strategic importance:

1.1.The vertical indicator : competitiveness: shows The vertical indicator : competitiveness: shows the organization position on the market, eg.: the organization position on the market, eg.: market share, cusmarket share, custtomer loyality, innovation, omer loyality, innovation, new products, the size of the company, etc. new products, the size of the company, etc.

2.2.The horizontal indicator: industrial sector The horizontal indicator: industrial sector attraction, eg.: market size, technology, attraction, eg.: market size, technology, competition, labour-market supply, etc.competition, labour-market supply, etc.


Selectivity Selective Investment expansion and

expansion

Harvest

elimination

Selectivity Selective

expansion

Harvest Harvest Selectivityelimination elimination

Industrial sector attraction

Competitiveness

High

Low High

Strategic analysis methods – 11.Strategic analysis methods – 11. Investment: a strong strategic position : the Investment: a strong strategic position : the

most perspective group of products. A good most perspective group of products. A good strategy is to develop themstrategy is to develop them

Selectivity: an average strategic position: Selectivity: an average strategic position: the strategy has to be selective, eg.: the strategy has to be selective, eg.: selective expansionselective expansion

Harvest, elimination: a weak strategic Harvest, elimination: a weak strategic position: the strategic goal is the elimination position: the strategic goal is the elimination


3. 3. SWOT AnalysisSWOT Analysis

A complex analysis about the external and A complex analysis about the external and internal environmentinternal environment

S - Strengths,S - Strengths,

W – Weaknesses,W – Weaknesses,

O – Opportunities,O – Opportunities,

T - ThreatsT - Threats


Strengths Opportunities

Basic skills, experience, Know how

New group of customer, cooperations, fusions, widening the range of products

Weaknesses Threats

Old technology, weak market image, low profit, weak innovation

The appearance of a new competitor, stronger customer and supplier positions , replaceable products

Internal factors External factorsCan be influenced Cannot be influenced

Positive

Negative


Relations:Relations: Strengths - Opportunities: embrace the Strengths - Opportunities: embrace the

opportunityopportunity Strengths - Threats: avoid threatsStrengths - Threats: avoid threats Weaknesses - Opportunities: Weaknesses - Opportunities:

development, or eliminationdevelopment, or elimination Weaknesses - Threats: withdrawalWeaknesses - Threats: withdrawal

Strategy types and levels – 12.Strategy types and levels – 12.

1.1. The levels of strategic planningsThe levels of strategic planningsI.I. Organizational: Organizational: Main task: to create complex strategy for the Main task: to create complex strategy for the

divisions: divisions: - reconciliation of the long-, and short term - reconciliation of the long-, and short term profit optionsprofit options- recommend more than one direction ( if it’s - recommend more than one direction ( if it’s necessary)necessary)- try to reduce the economic and political - try to reduce the economic and political risks ( make them acceptable)risks ( make them acceptable)

Strategy types and levels – 12.Strategy types and levels – 12.- main part of its activities can be realized out - main part of its activities can be realized out of the organizationof the organizationMain function: good resource allocation Main function: good resource allocation among the divisionsamong the divisions

II. Divisional: (portfolios, missions, targets, II. Divisional: (portfolios, missions, targets, actions within the SBU’s) actions within the SBU’s)

Shows the future of the SBU’s ( Strategic Shows the future of the SBU’s ( Strategic Business Units):Business Units):- independent decision making process - independent decision making process focuses on the following areas: R&D focuses on the following areas: R&D ( Research & Development), production and ( Research & Development), production and salessales


- - market competitors can be well definedmarket competitors can be well defined

- its performance can be well measuredits performance can be well measured

III. Functional: inside the divisionsIII. Functional: inside the divisions Marketing, technology, production, finance, Marketing, technology, production, finance,

investment, logistic and human strategyinvestment, logistic and human strategy


2. Ansoff : Product – Market Matrix2. Ansoff : Product – Market Matrix

Present ProductsProducts

MarketsNew Products

Product developmentPresent customers

Market penetration

New customers

Market development Diversification


It indicates that an organization can grow in a It indicates that an organization can grow in a variety of ways by concentrating on present or variety of ways by concentrating on present or new products, and on present or new new products, and on present or new customerscustomers

Market Penetration Strategies: these Market Penetration Strategies: these organizational strategies focus on improving the organizational strategies focus on improving the position of the organization’s present products position of the organization’s present products with its present customers. Eg.: A charity seeks with its present customers. Eg.: A charity seeks ways to increase contributions from present ways to increase contributions from present contributorscontributors

Strategy types and levels – 12.Strategy types and levels – 12. Market Development Strategies: following this Market Development Strategies: following this

strategy, an organization would seek to find strategy, an organization would seek to find new customers for its present products. Eg.: A new customers for its present products. Eg.: A manufacturer of industrial products may decide manufacturer of industrial products may decide to develop products for entrance into the to develop products for entrance into the consumer marketconsumer market

Product Development Strategies: the Product Development Strategies: the organization in effect seeks new things to do. organization in effect seeks new things to do. With this particular strategy the new products With this particular strategy the new products developed would be directed to present developed would be directed to present customers.Eg.: A college may develop customers.Eg.: A college may develop graduate programs for minority studentsgraduate programs for minority students


Diversification: an organization diversifies Diversification: an organization diversifies when it seeks new products for customers when it seeks new products for customers it is not serving at present. Eg.: A cigarette it is not serving at present. Eg.: A cigarette mamannufacturer diversifies into real estate ufacturer diversifies into real estate developmentdevelopment


3. Porter : corporate strategies3. Porter : corporate strategies

Differentiation Cost leadership

Focus

Customer preferences

Efficiency

Industrial sector

Particular segment


Cost leadership: implies that the firm will Cost leadership: implies that the firm will outstrip its competition by being the low-outstrip its competition by being the low-cost producer. The firm will build efficient-cost producer. The firm will build efficient-scale facilities, pursue cost-control scale facilities, pursue cost-control policies, avoid marginal customers, and policies, avoid marginal customers, and generally be cost conscious in all areas of generally be cost conscious in all areas of the businessthe business the firm will emphasize the firm will emphasize efficiency and productivity.efficiency and productivity.


Differentiation: involves the firm creating Differentiation: involves the firm creating products that are perceived to be unique. products that are perceived to be unique. The perception of differentiation can be The perception of differentiation can be based upon a variety of factors, such as based upon a variety of factors, such as brand image, product features, customer brand image, product features, customer service or dealer network . service or dealer network . the the firm will emphasize flexible response to firm will emphasize flexible response to changing customer preferences and changing customer preferences and perceptions.perceptions.


Focus: involves achieving either cost Focus: involves achieving either cost leadership or differentiation, or both, in a leadership or differentiation, or both, in a particular segment of the market. Rather particular segment of the market. Rather than competing throughout the market, the than competing throughout the market, the firm focuses on one segment. Eg.: Porter firm focuses on one segment. Eg.: Porter Paint attempts to serve the needs of Paint attempts to serve the needs of professional painter rather than do-it-professional painter rather than do-it-yourself customer. Thus, the focus yourself customer. Thus, the focus strategy implies a tradeoff between market strategy implies a tradeoff between market share and profitability.share and profitability.

Models of the environment – 13.Models of the environment – 13.

1. The PEST matrix – gives an overall picture of 1. The PEST matrix – gives an overall picture of the environmentthe environment

Political Elements Social Elements

Stability of the government,Laws, regulations,Taxation policy,European Integrity

Demographical processes,Income – distribution,Social mobility, Lifestyle

Economical Elements Technological Elements

Globalization,Unemployment,Inflation,Financial Statement of the country

Governmental Research Programmes,

Celerity of technical changes

Models of the environment – 13Models of the environment – 13

2. 2. Porter: The Five – Forces Model : Porter: The Five – Forces Model : Competitive AnalysisCompetitive Analysis

The rationale behind this model is that The rationale behind this model is that industry profitability is not determined by industry profitability is not determined by what the product looks like, nor whether it what the product looks like, nor whether it embodies high or low technology: it s embodies high or low technology: it s determined by the structure of the industrydetermined by the structure of the industry

Firms can influence the five forces through Firms can influence the five forces through the strategies they persuethe strategies they persue


Rivalry among competing sellers

BuyersSuppliers ofthe inputs

Potential new entrants

Firms in other industries offering Substitute products


1.1. Competitive rivalry: this is the most obvious Competitive rivalry: this is the most obvious form of competition: Head to head rivalry form of competition: Head to head rivalry between firms making similar products and between firms making similar products and selling them in the same market.selling them in the same market.

Competitive forces arising from rivals’ Competitive forces arising from rivals’ jockeying for a better market position and a jockeying for a better market position and a competitive advantagecompetitive advantage

The following conditions can cause rivalry:The following conditions can cause rivalry: When demand for the product is growing When demand for the product is growing

slowly slowly


As the number of competitors increases and as As the number of competitors increases and as they become more equal in size and capabilitythey become more equal in size and capability

When competitors are tempted by industry When competitors are tempted by industry conditions to use price cuts or other competitive conditions to use price cuts or other competitive weapons to boost unit volumeweapons to boost unit volume

When it costs more to get out of the business When it costs more to get out of the business than to stay in and competethan to stay in and compete

When competitors’ products and services are When competitors’ products and services are so similar that customers incur low costs in so similar that customers incur low costs in switching from one brand to anotherswitching from one brand to another


2. Threat of entry : competitive forces coming 2. Threat of entry : competitive forces coming from the threat of entry of new rivalsfrom the threat of entry of new rivals

The most common barriers to entry are:The most common barriers to entry are: The existence of considerable cost benefits to The existence of considerable cost benefits to

be gained from experiencebe gained from experience Brand preferences, and customer loyaltyBrand preferences, and customer loyalty Capital requirementsCapital requirements Access to distribution channelsAccess to distribution channels Government actions and policiesGovernment actions and policies


3. Threat of substitutes: competitive forces 3. Threat of substitutes: competitive forces coming from the market attempts of coming from the market attempts of outsiders to win buyers over to their outsiders to win buyers over to their productsproducts

A substitute is something that meets the A substitute is something that meets the same needs as the product produced in the same needs as the product produced in the industry. If the substitute becomes more industry. If the substitute becomes more attractive in terms of price, performance, or attractive in terms of price, performance, or both – customers move away from the firms both – customers move away from the firms in the industry.in the industry.


4. Power of buyers: competitive forces arising 4. Power of buyers: competitive forces arising from buyers’ exercise of bargaining. Buyers are from buyers’ exercise of bargaining. Buyers are powerful in the following situations:powerful in the following situations:

When customers are few in number and they When customers are few in number and they purchase in large quantitiespurchase in large quantities

When the item being bought is not an important When the item being bought is not an important inputinput

When it is economically feasible for customers When it is economically feasible for customers to purchase the input from several suppliers to purchase the input from several suppliers rather than onerather than one


5. Power of suppliers: competitive forces arising 5. Power of suppliers: competitive forces arising from suppliers’ exercise of bargaining. Buyers from suppliers’ exercise of bargaining. Buyers are powerful where:are powerful where:

The input is, in one way or another, important to The input is, in one way or another, important to the buyerthe buyer

The supplier industry is dominated by a few The supplier industry is dominated by a few large producerslarge producers

Suppliers’ respective products are uniqueSuppliers’ respective products are unique


3. 3. How the Internet Influences IndustryHow the Internet Influences Industry Structure Structure - Porter- Porter : The Five – Forces Model : The Five – Forces Model

The Internet is an extremely important new The Internet is an extremely important new technology, which changes everything, technology, which changes everything, rendering all the old rules about companies and rendering all the old rules about companies and competition obsolete competition obsolete

The Internet has created also some new The Internet has created also some new industries such as on-line auctions and digital industries such as on-line auctions and digital market placesmarket places


Whether an industry is new or old, its Whether an industry is new or old, its structural attractiveness is determined by structural attractiveness is determined by five underlying forces of competition:five underlying forces of competition:

1.1.Competitive rivalryCompetitive rivalry

2. Threat of entry2. Threat of entry

3. Threat of substitutes3. Threat of substitutes

4. Power of buyers4. Power of buyers

5. Power of suppliers5. Power of suppliers


1.1. Competitive rivalry:Competitive rivalry:

(-) Reduces differences among competitors as (-) Reduces differences among competitors as offerings are difficult to keep proprietaryofferings are difficult to keep proprietary

(-) Migrates competition to price(-) Migrates competition to price

(-) Widens the geographic market, increasing the (-) Widens the geographic market, increasing the number of competitorsnumber of competitors

(-) Lowers variable cost relative to fixed cost, (-) Lowers variable cost relative to fixed cost, increasing pressures for price discountingincreasing pressures for price discounting


2. Threat of entry2. Threat of entry(-) Reduces barriers to entry such as t(-) Reduces barriers to entry such as thhe need for e need for

a sales force, access to chaa sales force, access to channnels, and physical nels, and physical assets- anything that Internet technology assets- anything that Internet technology eliminates or makes easier to do reduces eliminates or makes easier to do reduces barriers to entrybarriers to entry

(-) Internet applications are difficult to keep (-) Internet applications are difficult to keep proprietary from new entrantsproprietary from new entrants

(-) A flood of new entrants has come into many (-) A flood of new entrants has come into many industriesindustries


3. Threat of substitutes3. Threat of substitutes

(+) By making the overall industry more (+) By making the overall industry more efficient, the Internet can expand the size efficient, the Internet can expand the size of the marketof the market

(-) The proliferation of Internet approaches (-) The proliferation of Internet approaches creates new substitution threatscreates new substitution threats


4. Power of buyers4. Power of buyers

(+) Eliminates powerful channels or (+) Eliminates powerful channels or improves bargaining power over traditional improves bargaining power over traditional channelschannels

(-) Shifts bargaining power to end (-) Shifts bargaining power to end consumersconsumers

(-) Reduces switching costs(-) Reduces switching costs


5. Power of suppliers5. Power of suppliers

(+/-) Procurement using the Internet tends to (+/-) Procurement using the Internet tends to raise bargaining power over suppliers, raise bargaining power over suppliers, though it can also give suppliers access to though it can also give suppliers access to more customersmore customers

(-) The Internet provides a channel for (-) The Internet provides a channel for suppliers to reach the end users, reducing suppliers to reach the end users, reducing the leverage of intervening companiesthe leverage of intervening companies


(-) Internet procurement and digital markets (-) Internet procurement and digital markets tend to give all companies equal access to tend to give all companies equal access to suppliers, and gravitate procurement to suppliers, and gravitate procurement to standardized products that reduce standardized products that reduce differentiationdifferentiation

(-) Reduces barriers to entry and the (-) Reduces barriers to entry and the proliferation of competitors downstream proliferation of competitors downstream shifts power to suppliersshifts power to suppliers


Cost and price advantages can be achieved in Cost and price advantages can be achieved in two ways:two ways:

1.1.Operational Effectiveness: doing the same Operational Effectiveness: doing the same things your competitors do, but doing better. things your competitors do, but doing better. Eg.: better technologies, better trained people – Eg.: better technologies, better trained people – ”Best Practice”. Once a company establishes ”Best Practice”. Once a company establishes new best practice, its rivals tend to copy it new best practice, its rivals tend to copy it quickly. Best practice competition eventually quickly. Best practice competition eventually leads to competitive convergence, with many leads to competitive convergence, with many companies doing the same things in the same companies doing the same things in the same waysways


2. Strategic Positioning: as it becomes 2. Strategic Positioning: as it becomes harder to sustain operational advantages, harder to sustain operational advantages, strategic positioning becomes all the more strategic positioning becomes all the more important . The only way to generate important . The only way to generate higher levels of economic value is to offer higher levels of economic value is to offer unique value. Eg. : a new logistical methodunique value. Eg. : a new logistical method


Consequences:Consequences: Just applying the Internet technology doesn’t Just applying the Internet technology doesn’t

mean advantage in the competitionmean advantage in the competition We have to examine how the Internet We have to examine how the Internet

technology can complete our company strategytechnology can complete our company strategy The industrial sector of Internet should integrate The industrial sector of Internet should integrate

with the traditional industrial sectors. with the traditional industrial sectors. Outsourcing methods are not recommendedOutsourcing methods are not recommended

The Balanced Scorecard – 14.The Balanced Scorecard – 14.1.1. The BSC modelThe BSC model A new approach to strategic management was A new approach to strategic management was

developed in the early 1990's by Drs. Robert developed in the early 1990's by Drs. Robert Kaplan (Harvard Business School) and David Kaplan (Harvard Business School) and David Norton. They named this system the Norton. They named this system the 'balanced scorecard'. Recognizing some of 'balanced scorecard'. Recognizing some of the weaknesses and vagueness of previous the weaknesses and vagueness of previous management approaches, the balanced management approaches, the balanced scorecard approach provides a clear scorecard approach provides a clear prescription as to what companies should prescription as to what companies should measure in order to 'balance' the financial measure in order to 'balance' the financial perspective.perspective.

The Balanced Scorecard – 14.The Balanced Scorecard – 14.

The balanced scorecard is a The balanced scorecard is a management management systemsystem (not only a measurement system) that (not only a measurement system) that enables organizations to clarify their vision and enables organizations to clarify their vision and strategy and translate them into action. It strategy and translate them into action. It provides feedback around both the internal provides feedback around both the internal business processes and external outcomes in business processes and external outcomes in order to continuously improve strategic order to continuously improve strategic performance and results. When fully deployed, performance and results. When fully deployed, the balanced scorecard transforms strategic the balanced scorecard transforms strategic planning from an academic exercise into the planning from an academic exercise into the nerve center of an enterprise.nerve center of an enterprise.


The balanced scorecard suggests that we view The balanced scorecard suggests that we view the organization from the organization from fourfour perspectives, and to perspectives, and to develop metrics, collect data and analyze it develop metrics, collect data and analyze it relative to each of these perspectives:relative to each of these perspectives:

The Learning and Growth PerspectiveThe Learning and Growth Perspective The Business Process PerspectiveThe Business Process Perspective The Customer PerspectiveThe Customer Perspective The Financial PerspectiveThe Financial Perspective

The Balanced Scorecard – 14.The Balanced Scorecard – 14. The Learning and Growth PerspectiveThe Learning and Growth Perspective

This perspective includes employee training This perspective includes employee training and corporate cultural attitudes related to and corporate cultural attitudes related to both individual and corporate self-both individual and corporate self-improvement. In a knowledge-worker improvement. In a knowledge-worker organization, organization, peoplepeople -- the only repository of -- the only repository of knowledge -- are the main resource. In the knowledge -- are the main resource. In the current climate of rapid technological current climate of rapid technological change, it is becoming necessary for change, it is becoming necessary for knowledge workers to be in a continuous knowledge workers to be in a continuous learning mode.learning mode.

The Balanced Scorecard – 14.The Balanced Scorecard – 14. The Business Process PerspectiveThe Business Process PerspectiveThis perspective refers to internal business This perspective refers to internal business

processes. Metrics based on this processes. Metrics based on this perspective allow the managers to know perspective allow the managers to know how well their business is running, and how well their business is running, and whether its products and services conform whether its products and services conform to customer requirements (the mission). to customer requirements (the mission). These metrics have to be carefully designed These metrics have to be carefully designed by those who know these processes most by those who know these processes most intimately; with our unique missions these intimately; with our unique missions these are not something that can be developed by are not something that can be developed by outside consultants.outside consultants.

The Balanced Scorecard – 14.The Balanced Scorecard – 14. The Customer PerspectiveThe Customer PerspectiveRecent management philosophy has shown Recent management philosophy has shown

an increasing realization of the importance an increasing realization of the importance of customer focus and customer of customer focus and customer satisfaction in any business. These are satisfaction in any business. These are leading indicators: if customers are not leading indicators: if customers are not satisfied, they will eventually find other satisfied, they will eventually find other suppliers that will meet their needs. Poor suppliers that will meet their needs. Poor performance from this perspective is thus a performance from this perspective is thus a leading indicator of future decline, even leading indicator of future decline, even though the current financial picture may though the current financial picture may look good. look good.

The Balanced Scorecard – 14.The Balanced Scorecard – 14. The Financial PerspectiveThe Financial Perspective Timely and accurate funding data will always be a Timely and accurate funding data will always be a

priority, and managers will do whatever priority, and managers will do whatever necessary to provide it. In fact, often there is necessary to provide it. In fact, often there is more than enough handling and processing of more than enough handling and processing of financial data. With the implementation of a financial data. With the implementation of a corporate database, it is hoped that more of the corporate database, it is hoped that more of the processing can be centralized and automated.processing can be centralized and automated.

There is perhaps a need to include additional There is perhaps a need to include additional financial-related data, such as risk assessment financial-related data, such as risk assessment and cost-benefit data, in this category.and cost-benefit data, in this category.


2. The BSC hierarchy2. The BSC hierarchy


Financial perspective: expectations of the Financial perspective: expectations of the shareholders, measure: Return on investment shareholders, measure: Return on investment and economic value added and economic value added

CuCusstomer perspective: expectations of the tomer perspective: expectations of the customers, measure: Satisfaction, retention, customers, measure: Satisfaction, retention, market, and account sharemarket, and account share

Internal business processes: in order to achieve Internal business processes: in order to achieve the goals of customer orientation and the goals of customer orientation and subsequent financial ramifications, the subsequent financial ramifications, the processes measure: Quality, response time, processes measure: Quality, response time, cost, and new product introductions cost, and new product introductions

The Balanced Scorecard – 14.The Balanced Scorecard – 14. Learning and growth perspective: based on the Learning and growth perspective: based on the

skills of the employees, measure: Employee skills of the employees, measure: Employee satisfaction and information system availabilitysatisfaction and information system availability

All perspectives must relate to the strategic All perspectives must relate to the strategic vision, and each perspective relates to the vision, and each perspective relates to the others through the central vision driving the others through the central vision driving the company. As tactics are implemented, the data company. As tactics are implemented, the data collected in the BSC reflects the company's collected in the BSC reflects the company's progress toward achieving the goals delineated progress toward achieving the goals delineated by the strategic vision. The financial by the strategic vision. The financial perspective assumes prime importance in perspective assumes prime importance in nearly all companies and will be considered nearly all companies and will be considered firstfirst..

The Balanced Scorecard – 14.The Balanced Scorecard – 14.3. Cause and effect3. Cause and effectResult and Performance indicatorsResult and Performance indicators Result indicators (post-indicators): do not show Result indicators (post-indicators): do not show

the way how to reach a certain result, and not the way how to reach a certain result, and not even good for indicating the temporary results even good for indicating the temporary results of the strategyof the strategy

Performance indicators ( foreshow-indicators): Performance indicators ( foreshow-indicators): show how to reach a better level of show how to reach a better level of performance – only for short-term! But do not performance – only for short-term! But do not reflect the way of the final result.reflect the way of the final result.


ROCE

FOLYAMATOK MINŐSÉGE

FOLYAMATOK ÁTFUTÁSI IDEJE

FOGYASZTÓI HŰSÉG

PONTOS RENDELÉS TELJESÍTÉS

Financial performance

Customers

Internal business Internal business processesprocesses

Learning and growth Learning and growth perspectiveperspective

Quality of the processes

Skills of employees

Loyalty of the customers

process time

Dependant service

management. what is management all about ? – 1. 1. the organization definition : ~ is a system...

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