Introduction to Management

1. Intro Introduction to Management: Hello and welcome. My name is doctor Pernns and today I present to you the introduction to management course. Have you ever wondered what it takes to be a successful manager or what one has to know to be successful in this art? We have a lot of resources in organizations. We have time constraints, we have people, we have financial aspects, and somehow we have to do some magic and to organize everything so that the end result is good. This is pretty much what we are going to see in this course. We're going to go through the basics of management. We'll start with a introductory class to management. Then we'll move on to managing in organizations, the models of management, the environment because the external part of businesses is also very important and we will finish by talking about planning and decision making. I'm looking forward to see you in your first class. 2. Introduction to Management: Hello, and welcome to the introduction to management course. In this first module, we are going to embark in a journey about the classical theories of management and also some of the basics of management. Starting with the basics, that is the definition and the importance of management. You can think of management as the process of coordinating and overseeing the activities of an organization in order to achieve their goals. It involves a lot of things such as planning, organizing, leading and controlling resources. These resources can be human, financial, material, even technological, and they will ensure an efficient and effective operations within the company. There are four key elements of management, planning, which is all about setting objectives and determining the best course of action to achieve them. Organizing about arranging resources and tasks in a structured manner to accomplish the goals. Leading, it involves directing and motivating people to work towards the organizational objectives and controlling. It involves monitoring and evaluating progress to ensure that the goals are fully met. Why is then management important? Because it will allow to achieve goals. Management helps organizations to set and achieve their objectives, ensuring that all activities are aligned with the desired outcomes. It also improves research optimization. If you have an efficient management, you will ensure that resources are used effectively, minimizing waste, and therefore, maximizing productivity. Also, management will allow adaptability and innovation. It will allow organizations to adapt to changing environments and to foster innovation, which is particularly important these days where technology keeps moving faster and faster. Then another important aspect is related to employee motivation and development. If we have an effective management, it involves leading and motivating employees which in turn Ss job satisfaction and this can lead to personal growth. Of course, one of the main goals of management is to achieve strong competitive advantages. Having good and solid management practices will give organizations a competitive edge by improving efficiency, productivity, and overall performance. It is important to understand the historical development and the evolution of the management. Let's start from the beginning. That is the classical management theories. The first one that we are going to analyze is scientific management, whose father is Frederick Taylor. It emphasizes the scientific study of work methods to improve efficiency. As the key principles, they had the use of scientific methods to determine the best way to perform a task, the selection and training of workers based on scientific criteria, the cooperation between management and workers to ensure tasks are performed according to standardized method and the division of work between managers and workers where managers plan the supervised and workers executed the tasks. Then we moved on to administrative management. Is founder was Henri Fayol and the theory focuses on management processes and the principles of management. It supports several principles, the division of work. So they believed at the time that specialization increased productivity, authority and responsibility. Managers must have authority to give orders and the responsibility to ensure that they are carried out. The unity of command, which it was interesting concept at the time. Each employee should receive orders from one and only one superior. The scholar chain, a clear line of authority from top management to the lower ranks and the spirit the corps. Promoting the team spirit will build harmony and unity within the organization. Then Max Weber brought to us bureaucratic management that emphasizes on a structured and formal network of relationships among specialized positions in the organization. It had a clear hierarchy and division of labor, a set of formal rules and procedures to ensure consistency and impartiality, impersonality in interactions to avoid any authorities or biases, employment and advice based on technical competence. After the classical theories era, we started on the age of behavioral management theories. The first one that we are going to check is the torn studies conducted by Elton Mayo and his colleagues that finds that social and psychological factors significantly affect worker productivity and job satisfaction. This emphasize the importance of human relationships, teamwork, and employee welfare and management. Then McGregor introduced the Theory X and the theory Y. The concept was quite basic. There were two contrasting views of the worker motivation and behavior. On theory X, we would assume that employees are lazy, they lack ambition, and they need strict supervision. On theory, y, it was pretty much the opposite. It assumes that employees are self motivated, they seek responsibility, and they can be creative under proper conditions. Finally, we have the modern management theories. The first one that we are going to check is the systems theory. The views an organization as an open system that interacts with the environment. There are several key aspects, inputs, which are resources, processes, outputs that are products or services and feedback loops. It empatizes the interconnectnes of interdependence of all organizational components. I really it's called the system theory and it's thinking about the company as a system. Something gets in, something is processed or add value, then the company send something to the environment, can be a product, can be a service, and the customers will provide feedback, and this is an iterative cycle, so the company will try to improve and improve. Next on our list is the contingency theory. It suggests that there is no one best way to manage. Instead, effective management depends on the specific situation. It argues that managers must identify the most appropriate management approach based on the context, including the organization's environment, technology, and human resources. Then we have the total quality management in short TCM. It focuses on the continuous improvement of processes, products and services through the involvement of all employees. Here, there is a customer focus, so the companies should meet or exceed customer expectations. There is a continuous improvement. There are ongoing efforts all over the organization to improve products services and processes and there is employee involvement. All employees must be engaged in the pursuit of quality. Finally, we have lien management. It focus on maximizing waste and maximizing value in the organizational process. As the key principles, we have value, so we have to define what is valuable from a customer perspective. Then we have the value stream that is analyzing the flow of materials and information to identify and eliminate what could be considered as waste. Regarding the flow, the company has to ensure a smooth and continuous process. The pull is about producing only what is needed, when is needed, based on the customer demand, and perfection is the strive for continuous improvement and excellence. Goal of this module is to provide a foundational understanding of management, highlighting why it is significant in achieving organizational goals and optimizing resources. The historical evolution of management theories showcases the diverse approaches and continuous improvement in management practices. From the classical theories to modern frameworks that emphasize flexibility, quality and efficiency. This overview sets the stage for deeper exploration of management concepts that we are going to see in the next module. 3. Managing in Organizations: Hello, and welcome to Module two, where we are going to talk about managing in organizations. Specifically, we are going to discuss the management functions, that is planning, organizing, leading, and controlling. This is known as the Polk framework. Planning is all about setting goals and determining what is the best way to achieve these goals. It is the first step in the management processes, and it will lay the groundwork for all other functions. Effective planning and requires understanding the organization objectives, analyzing the current situation, anticipating future conditions, and making decisions that outline the necessary actions and resources. Basically, planning is drawing a line from where we are to where we want to be. What are then the key aspects of planning? We have to set objectives. They should be very well defined, clear, and they should be measurable. We have to analyze the situation, so we have to assess the internal and external environment to identify opportunities and threats and remember that in management and the business, not everything is under our control, so we have to understand and to analyze even the things that are out of our control. Then we have the developing plans. We have to formulate strategies and detailed action plans to achieve the objectives, and we love as well to allocate the resources. That means determining the necessary resources and no they will be used. This is basically having the right resources at the right place at the right time. Organizing refers to arranging resources and activities in such a way that will allow us to achieve the organization's goals. It includes the development of the organizational structure, defining the roles and responsibilities, who is responsible for what and coordinating activities across several departments. To be able to organize, we have to have some structure. This means creating a framework that defines the hierarchy and the reporting relationships. Everybody should know exactly who to report. Division of labor. This means assigning tasks based on specialization and competence, coordination, ensuring that all parts of the organization work together harmoniously, and resource allocation. This is basically related to distributing the resources in an efficient manner to different parts of the organization. Then we have leading. Leading is the process of influencing and motivating people to work towards the organizational goals. It involves several things such as directing, coaching, and inspiring employees to achieve high performance and to align with organizational vision. Key aspects to consider when we're talking about leading. Number one, motivation. We have to encourage employees to perform their best through incentives and rewards, and these have to be seen as fair. Then communication. Facilitating clear and effective communication throughout the whole organization will be very useful for us to achieve success and for the message to come across. Then we have to keep in mind that there are different leadership styles and we should adapt our leadership approach to fit different situation and the employee needs. Different people, different situations require different types of leadership. Then team building, we cannot just put a bunch of people in a room and expect everything to work fine. We have to create and we have to nurture effective teams that collaborate and support each other. We have to promote the team building within the teams. Lastly, we have our C and the Cs for controlling. This involves monitoring and evaluating the progress towards achieving the organizational goals. It ensures that what we do inside the organization is aligned with the plans and objectives, and it includes taking corrective actions when it is needed. Controlling is all about measuring the performance, we should define the performance standards and we should compare it to the actual performance. Then we should have feedback systems. That is, we should implement systems that allow us to provide information on performance. This should be clear and a transparent process to everybody. Corrective actions. If we identify deviations from plans, we have to do something about it, so we have to make the necessary adjustments and of course, continuous improvement. We should use the insights gained from controlling based on the feedback, based on errors that we detected in order to improve the planning and organizing inside a company. To illustrate this with an example, I bring you a case study about Ryanair. As you might know, Ryanair is an Irish low cost airline known for its cost saving strategies and efficient operations. It was founded in 1984, and Ryanair has grown to become one of Europe's largest airlines, primarily by focusing in low fares and no frills service. How can then we apply the Polk framework in Ryanair. Let's start from the beginning. That is with the planning and with the strategic planning. Reiner strategic planning focus on maintaining low operational costs. This is the main objective of the company and in offering the lowest fares in the market. The company's vision is to be Europe's most profitable and largest low cost Airline. Regarding the operation planning, Ryanair does detailed plans to streamline operations, reduce turnaround times, and to maximize the use of the aircraft. This includes implementing strict cost control measures and negotiating favorable terms with airports and suppliers. Particularly in the industry that Ryanair operates, it is very important also to do some contingency planning. In this case, Ryanair plans for potential disruptions by having backup plans for label drugs, fuel price situations, and other unforeseen events. This helps the company to ensure that their operations run smoothly and that they are able to manage risks in an effective manner. How does organizing look like at Ryanair? First, and regarding the organizational structure, Ryanair employs a flat organizational structure with clear lines of authority and responsibility and this enables quick decision making and efficient communication. Then regarding the division of labor, tasks are highly specialized with employees being trained to perform specific roles. For example, pilots focus on flying while ground staff handles checking and boarding process. Ryanair also ensures coordination across its various departments, through centralized management and standard operation procedures. This helps in maintaining consistency and efficiency across all operations. Then we have resource allocation. Resources are allocated in a strategic fashion in order to minimize costs. An example is that Ryanair chooses secondary airports in order to get the lower fees and it uses a single type of aircraft. In this case, the Boeing 737 to simplify maintenance and training. Trainer leadership is very important. Reiner's leadership is often characterized as autocratic with the CEO and the top management making most of the decisions. This approach helps in terms of maintaining a tight control over operations and costs. Regarding motivation, the company uses performance based incentives to motivate employees. For instance, staff may receive bonuses for meeting on time performance targets and cost saving initiatives. Ryanair also uses clear and direct communication channels to ensure that all employees understand the company's goals and expectations. So they have regular meetings and update everybody. Regarding team building, despite this cost cutting culture, Ryanair invests in training and development to ensure that teams are skilled and capable. This helps in terms of building a competent and motivated workforce. Finally, regarding controlling, Ryanair closely monitors K performance indicators or KPIs, such as cost per seat, on time performance, and customer satisfaction. These metrics help the company to evaluate the efficiency and competitiveness. Then they have their feedback systems. Customer feedback and operational data are collected regularly and analyzed in order to identify areas of possible improvements. Ryanair uses then this information to refine its services and to address any issues. When things go out of track or when performance deviates from target, Ryanair quickly implements corrective actions. For example, if the on time performance drops, the company may adjust flight schedules or even streamline the boarding process. Regarding continuous improvement, Ryanair seeks to find ways to improve its operations and reduce costs. This involves adopting new technologies, optimizing routes, and enhancing customer service. The success of Ryanair in this highly competitive industry can be attributed to its effective application of the Polk framework. By focusing on meticulous planning, efficient organizing, strong leadership, and rigorous controlling, Ryan Air has maintained its position as a leading low cost carrier. This case study illustrates how the fundamental management functions are critical to achieve organizational success. I hope you enjoyed the case study and I'm looking forward to see you in Model three. 4. Models of Managment: Hello, and welcome to Model three, where we're going to talk about models of management. We will start our journey by exploring the theoretical perspectives on different management models. The first one that we are going to explore is the rational goal model. It emphasizes the efficiency and productivity through goal setting and planning. It comes from the classical management theories that prioritize rational decision making and having clear objectives. It emphasizes achieving high productivity and efficiency through rational planning and control. It establish specific measurable goals and develops strategies that enable companies to achieve them. Decisions are made based on logical analysis and data driven approaches, and it utilizes performance indicators and metrics to evaluate progress and success. So the question now is where it can be applied. Can be applied in the strategic planning in organization to set long term goals in operation management in order to streamline processes and reduce waste and in performance management systems to measure and reward productivity. Second on our list is the internal process model. It focuses on the internal mechanisms of the organization, emphasizing stability, control, and continuity. It is aligned with bureaucratic management principles. It presents as key characteristics the following formal procedures. It relies on established procedures, rules and policies to maintain order and consistency, hierarchy and authority. There is a clearly defined hierarchical structure with formal authority lines. It emphasizes also accurate record keeping and documentation for accountability and consistency and regarding control mechanisms, it implements control systems to monitor compliance and performance. It can be applied in several situations such as in quality assurance programs to ensure standardization and consistency on financial management to maintain accurate records and internal records, and in regulatory compliance to adhere to legal and industry standards. Then we have the human relations model. As the name suggests, it highlights the importance of the human factors in management, such as employee motivation, leadership, and group dynamics. It stems from the behavioral management theories. Not surprisingly, it focus on the employee well being, so the welfare, motivation, and satisfaction of employees. On leadership and communication, it emphasizes effective leadership and open communication in order to foster a positive work environment. It encourages teamwork and collaboration among employees and develops a supportive and inclusive organizational structure. It is applied in human resources management practices that have as a priority the employee engagement and development in leadership development programs in order to enhance managerial effectiveness and in organizational development initiatives to improve workplace culture and morale. Then we have the open systems model. It views organization as open systems that interact with their external environment. It is influenced by systems theory and constituency theory. It considers environmental interaction. I recognize the impact of external factors. We're talking about things like market trends, competition and regulations. Also, it emphasizes the need for organizations to adapt and respond to changes in the environment. It views the organization as a system of interconnected parts that must work together in harmony. Also it utilizes feedback from the environment to make adjustments and improvements. It can be applied in situations where strategic management aligns organizational strategies with external opportunities or threats, innovation and change management to respond to technological advancements and market shifts, and stakeholder management to balance the interest of various external and internal stakeholders. Then we have the competing values framework. CVF is a comprehensive model that integrates the four theoretical perspectives on management. It was developed to help managers understand and balance competing demands within an organization. What are then the key dimensions of the model. First, we have internal versus external focus. Internal focus prioritize internal processes, stability and control, and on the external focus side of things, there is an eptization in external adaptability, growth, and interaction with the environment. Then we have flexibility versus control. Flexibility encourages innovation, adaptability, and responsiveness, while on the other end, control focus on stability, consistency, and order. The model is subdivided in four quadrants. First, we have the rational goal model related to external control. It emphasizes productivity, efficiency, and goal achievement. The key values are competitiveness, profitability, and goal clarity. Then we have the internal process model. This is related to internal control, focuses on stability, control, and internal efficiency, and as key values, it has formality, order, and documentation. We have also the human relations model related to internal flexibility, prioritizes employee well being, collaboration, and organizational culture. As for the key values, it considers cohesion, morale, human resource development. Finally, we have open systems model or external flexibility. Tithizes adaptability, innovation, and responsiveness to the external environment, and for core values, it presents growth, resource acquisition, and external support. We can use a CVS as a diagnostic tool to help managers diagnose organizational culture and performance. For strategic planning, it can assist in balancing competing demands and aligning strategies with the organizational values and for leadership development. It can help in terms of guiding the development of leadership skills to manage diverse and competing needs. To illustrate how the models may work, I bring you the case study of Innocent Drinks. Innocent Drinks is a UK based company known for its smoodies and other LT beverages. It was founded in 1998, and it has built a reputation for its ethical values, innovative products, and strong brand identity. We will check what is the application of the management models at innocent drinks. If we look at the company from a rational goal model perspective, we can see that Innocent Drinks focuses on optimizing its production processes to achieve high efficiency and maintaining product quality. This involves meticulous planning and goal setting in order to streamline operations. Also, the company uses performance indicators to monitor its progress and ensure that it meets the strategic objectives such as market share growth and profitability. If we use the lenses of internal process model, we can see that innocent drinks maintain strict quality control processes to ensure product consistency and safety. This includes having standardized processes for sourcing ingredients, productions, and distributions. Also, while the company fosters a collaborative culture, it also has a clear organizational structure with defined roles and responsibility to maintain order and efficiency. If you look at the company from the perspective of human relations model, we can see that it places a strong emphasis on employee welfare, offering supportive work environments, training and development opportunities. This approach, in essence, motivation and job satisfaction. Also, the company promotes a positive and inclusive culture encouraging open communication, teamwork and collaboration among its employees. If we look at it from an open system perspective, we can see that Innocent Drinks actively engages with external environment, including suppliers, customers, and regulatory bodies. The company adapts to market trends and consumer preferences to stay competitive. Also, they continuously innovate on their products, introducing new flavors, a health focused beverage to meet changing consumer demand. The company also embraces sustainability initiatives, adapting its practices to reduce its environmental impact. Finally, we will look at the integration of competing values framework at innocent drinks. Regarding balancing competing demands, the company effectively balances the competing demands of internal efficiency and external adaptability. They also maintain strict quality controls while also being responsive to market changes and customer preferences. The leadership at innocent rings embodies the values of the human relation models. That is, it fosters a supportive and inclusive work environment. At the same time, they leverage the rational goal model to drive performance and achieve their strategic objectives. Regarding sustainability focus, the company integrates sustainability into its business strategy, and this is aligned with the open systems model. The company's commitment to ethical sourcing, environmental conservation, and community engagement reflects its adaptability and responsiveness to external pressures. Innocent Rings serves as a very good example of how different management models can be applied to address various organizational needs. By integrating rational goal model, internal process model, human relations model, the open systems model, innocent Rings has built a successful and sustainable business. It is also important to note that the competing values framework provides a valuable tool for understanding and balancing these different approaches, ensuring that the company can achieve its goals while maintaining a positive and adaptable organizational culture. I hope you enjoyed the case study, and I'm looking forward to see you in our next module. 5. The Environment of Management: Hello, and welcome to Model four, where we are going to talk about the environment of management. We will start with focusing in organizational culture and context. Let's start with the basics, that is the definitions. Well, organizational culture refers to the shared values, beliefs, norms and practices that shape the behavior and interactions of members within a certain organization. It represents the collective personality of the organization and it will influence how employees perceive their roles and responsibilities within a certain company. There are several components to the organizational culture. We have values, which are the core principles and standards that guide behavior within the organization. Here we're talking about things like integrity, excellence or innovation. We have beliefs. These are convictions or assumptions held by members of the organization about what is true and how things work. We have also norms, which are not more than unwritten rules and expectations about how people within the organization should be behave when faced with certain situations and we have symbols. Here we are talking about objects, logos, and artifacts that represents the organization values and identity. We may also have rituals and ceremonies. Here, we're talking about things like meetings, award ceremonies, or social gatherings. We have stories and myths. These are the narratives about organization's history, funders, and significant events in the story of the company. Finally, we have language and jargon. These refer to specific terms that organization use that reflect its culture and values. As we've seen in previous models, the external factors are very important in management. Why? Because companies have a lot of interactions with their environment. It's very important to analyze the external factors. For that, we have tools such as the pestle analysis, which is a strategic tool that is used to identify and analyze external factors that may impact an organization. PESTEL stands for political, economical, social, technological, environmental, and legal factors. When we're talking about political factors, we're talking about government policies, regulations, political stability, and trade agreements that might affect our company's operation. For example, we're talking about things like tax laws, labor rules, and trade tariffs. Economic factors refer to things such as inflection, exchange rates, economic growth, and employment rates that may influence the organization financial performance and market demand. Then we have social factors. These are the societal trends, demographics, cultural attitudes, and lifestyles challenges that may impact the consumer behavior and the organizational practices. For instance, changes in consumer preferences, population aging, and increased focus on wealth and wellness. Technological factors refer to advancements, innovations, and to the rate of technological change that can affect the organization processes, products and services. This includes things like adoption of new technologies, automation, and digital transformation. Then we have environmental factors, environmental and ecological aspects such as climate change, sustainability, and environmental regulations that may influence the way that company operates and even its reputation. Legal factors refer to requirements, regulations and compliance obligations that the organization must adhere to. This may include health and safety regulations, customer protection laws, and intellectual property rights. Managing is never easy because there are a lot of factors involved, a lot of variables moving at the same time. But if we move management to an international context, things get even a bit more complex. Here are some challenges of international management, cultural differences. So there are variation in cultural norms, values, and practices across different countries that can pose several kinds of challenges in communication, management styles, and employees interaction. Then we have legal and regulatory compliance. Obviously, different countries will have different laws, different regulations that the organization must navigate. This include things like labor laws, taxation and trade regulations. Regarding the economic environment, we're talking about things like inflation, currency fluctuations, and economic stability. All of these may vary across countries and they may have a big impact on the financial planning and on the operations of a company. We also have to consider political stability, government policies and geopolitical risks in different regions that may affect our operations and even our strategies. Then we may have language barriers. Having or working with different languages can be bad to having an effective communication and collaboration among your international team. Regarding supply chain management, managing global supply chains involve dealing with logistics, transportation, customs and local suppliers, which could be, as you might imagine, very complex and challenging. Finally, the main asset of companies are people, the last challenge that I have for you is the human research management. Recruiting, training, and managing employees in different countries will require an understanding of local labor laws and employment practices and cultural nu acets. With so many challenges, it's important for companies to define strategies to mitigate them. We have several aspects to consider. First, we have cultural sensitivity and adaptation. We have to understand and to respect cultural differences and adapt management practices to fit the local context. Then in terms of global strategic planning, we have to develop a comprehensive global strategy that aligns with organization overall objectives while at the same time, we consider regional variations. And local partnerships. In some cases, forming partnerships with local businesses, suppliers, and stakeholders will help us to gain market insights and to facilitate operations. Obviously, we have to keep an eye on compliance and risk management, ensuring that we are compliant with local laws and regulations and implementing risk management strategies in order to mitigate geopolitical and economical risks. Regarding talent management, it's important that we are able to attract, retain, and develop a diverse and culturally competent workforce to support our international operations, and we cannot forget the role of technology. Levering technology to improve communications, coordination and efficiency across global operations. The last strategy I bring to you is market research and analysis. In order to be successful, companies must conduct thorough market research to understand local consumer behavior, preferences, and competitive dynamics. It is also very important for us to understand and explore the concept of corporate responsibility. One of the pillars of corporate responsibility is ethics. This includes ethical decision making, ensuring that the business decisions align with ethical principles such as honesty, fairness, and integrity. Also we have to balance the interests of several stakeholders, including employees, customers, shareholders, and the community, and we have to implement effective governance structures to ensure transparency, accountability, and ethical conduct within the organization. Corporate social responsibility may involve several aspects. One of them refers to environmental responsibility. It is expected from companies that they implement sustainable practices to minimize the organization environmental impact, such as reducing carbon emissions, conserving resources, and promoting recycling. On the social side of things, it is expected that the company contributes to the social welfare through initiatives such as community engagement, philanthropy, and supporting social causes. In the economic side of responsibility, the company must ensure that they are financially stable and profitable while considering the broader economic impact of its operations, we have also ethical responsibility. So it's expected that companies adhere to ethical standards and business practices, including fair trade, anti corruption measures, and respecting human rights. To illustrate what we've been talking until now, I bring you the case studies of Nokia and Starbucks. Let's start with Nokia regarding organizational culture. Nokia was once a global leader in mobile phones. It is known for its innovative culture and adaptability, and the company's organizational culture has played a significant role in its successes and also challenges. Regarding its values and beliefs, NCEA emphasizes innovation, consumer orientation, and teamwork. These values have contributed to drive the company's efforts in developing cutting edge technologies and products. Regarding norms and practices, the company fosters a culture of collaboration and continuous learning. Employees are encouraged to share ideas, experiment new technologies, and learn from their own failures. The leadership at Nocia promotes an open communication, transparency and inclusivity. Leaders are accessible and encourage feedback from employees at all levels. Also, the company's culture is characterized by its ability to adapt to a changing market and technological advancements. This adaptability has enabled the company to pivot its business strategy and focused in new growth areas. One of the classical case studies when we talk about international management is Starbucks. As you probably know, Starbucks is a global coffeehouse chain that has successfully expanded its operations to a lot of countries adapting its strategies to fit diverse cultural and market context. Although they do that, they have cultural sensibility, so they tailor the product offerings, the store design, and the marketing strategies to reflect the local tastes and preferences. For example, in China, Starbucks offers tea based beverages and local snacks. They also form strategic partnerships with local businesses and suppliers to enhance its market presence and supply chain efficiency. Again, the example of China where they have partnered with Alibaba to enhance its digital and delivery capabilities. Also, Starbucks invests in comprehensive training programs to ensure that its employees known as partners understand the company's values and service standards. This includes cultural training to help employees relate to customers from different backgrounds. Starbucks integrates sustainability into its international strategy by sourcing ethically produced coffee, reducing its environmental footprint, and engaging in community development projects. In regards to technology integration, Starbucks leverages technology to enhance customer experience and operational efficiency. This includes mobile ordering, digital payment systems, and loyalty programs tailored to different markets. Regarding brand consistency, while they do adapt to local markets, Starbucks maintains a consistent brand identity, emphasizing quality, customer experience, and social responsibility. Understanding the environment of management is pivotal for an organization to have success. By examining the components of organizational culture, conducting pest analysis, addressing international management challenges, and embracing corporate responsibility, organizations can navigate complex environments effectively. The case studies of Nokia and Starbucks illustrate how organizations can apply these concepts to est their operations and achieve sustainable growth. I hope you enjoyed this module and I'm looking forward to seeing on the next one. 6. Planning and Decision Making: Hello and welcome to our fifth and final model planning and decision making. We will start by discussing strategic planning. Why is planning important in management? It is one of the most important functions in management that involves defining an organizational goal. Establishing strategies for achieving those goals and developing plans to integrate and coordinate activities. The importance of planning in management cannot be overstated as it provides direction, it reduces uncertainty and minimizes waste and redundancy and sets the standards for controlling. O we will dissecate a little bit on the key reasons for planning being so important. First of all, it provides directions, establishes a direction for the organization, and for its members. It sets clear objectives and provides guidelines on how to achieve them. Then it reduces uncertainty. Through planning, managers can anticipate potential program problems and prepare solutions in advance. This will reduce uncertainty and it will equip the organization on a way that make them capable of handling future challenges. Will also minimize waste and redundancy. Having an effective planning will ensure the efficient use of the resources and it will minimize waste and it will avoid redundant efforts. It is also important to note that planning provides a framework for decision making by setting priorities and identifying necessary actions. It will also set the standards for controlling. Or does this work, it compares the actual performance with the planned objectives so that the manager can identify deviations and take corrective actions. The planning process involves several steps that guide managers in developing and implementing plans. These steps include setting objectives. We have to define clear specific and measurable objectives that the organization have to achieve. Objectives should be time bound and aligned with the overall mission and vision of the organization. Then we have to analyze the environment. We have to conduct a situational analysis to assess internal strengths and weaknesses, as well as external opportunities and threats. For this, we can use the SWAT analysis. We may also use tools like Pastel to understand in a more detailed way our external environment. Then we have to develop strategies. That is to formulate strategies that will help to achieve the defined objectives. These strategies should leverage strengths, address the weaknesses, exploit opportunities while mitigating threats. It all us to consider various strategic options and select the most appropriate ones. Then we'll have to develop plans. That means creating detailed action plans that outline the specific steps needed to implement the strategies. Plans in order to be effective should include timelines, resources, allocations, and who is responsible for doing what. After developing them, we have to implement the plans. This means executing the action plans by coordinating resources and activities. We have to ensure that all team members understand the roles and their responsibilities. Our work is not done yet, so we're missing the final step which is monitoring and controlling. We have to continuously monitor the progress and compare the actual performance with the objectives that we have planned. I needed, we have to take corrective actions to address any deviations from the plan. Decision making is crucial for management. Good managers have to be good decision makers and we have to take into consideration that there are different types of decisions. We have program decisions, they are routine and repetitive decisions that follow established guidelines and procedures. They typically involve structured problems with clear solutions. Examples, reordering inventory when stock levels reach a certain point, approving routine expensive reports. These are things that keep happening so we can have a program decision. And as we cannot predict everything that happens in management, we have non programmed decisions. These are unique and nonrecurring decisions that require tailor made solutions. They involved struck problems with predefined solutions. For example, deciding on entering a new market, developing a new product line, or responding to a crisis. Decision making models and biases. There are several decision making models and we have to be careful about the bias that may come with the decision making. Let's go through the decision making models. The first one that we are going to talk about is the rational decision making model. It assumes that decision makers are rational and make decisions that maximizes the organization objectives. The steps include identifying the problem, gathering relevant information, identifying alternatives, evaluating them, choosing the best alternative, implementing the decision, and monitoring and evaluating the decision. Then we have the bonded rationality model. It recognizes the limitation of the decision maker ability to process information and make optimal decisions. It suggests that decision maker satisfies or choose the first acceptable solution rather than the optimal one. Factors include limited access to information, cognitive biases, and times constraints. We also have the intuitive decision making model. It relies on the good feeling, instincts, and personal judgment rather than a systematic analysis. It is often used in situations where there is limited information or time pressure. It can be effective when decision makers have significant experience or expertise. There are common biases that happen when we are making decisions. The first one is the confirmation biases. That is the tendency to seek out information that confirms pre existing beliefs and ignore contradictory evidence. Then we have to consider the role of anchoring bias. This is the tendency to rely heavily on the first piece of information in court or the anchor. When making decisions. Then the overconfidence biases. This is the tendency to overestimate one's ability and knowledge, and the accuracy of predictions. We also have the valuability heuristic. This is the tendency to base decisions on readily available information rather than relevant data and escalation of commitment. This is the tendency to continue investing in the failing course of action due to the s cost already incurred. To illustrate the concepts that we talked about, I bring you the case study of Ikea. As you probably know, Ikea is a globally renowned furniture retailer known for its flat back furniture, affordable prices, and innovative designs. The company has a strong focus on strategic planning and decision making, which has contributed heavily to its global success. How does strategic planning look in ACA? They have a long term vision to create a better everyday life for many people. The vision drives its strategic planning process. AKA conducts extensive market research to understand customer needs, preferences, and trends, disinformation informs strategic decisions. Also, sustainability is a key component of ACA's strategic planning. The company aims to use sustainable materials and processes to reduce its variatal impact. Ikea's expansion strategy involves entering new markets with the standardized store format and localized product offerings. The company adapts its products to meet local tastes and preferences while maintaining its core brand identity. Regarding decision making, AKA use a rational decision making approach for major strategic decisions. This includes a thorough analysis and evaluation of alternatives, and a selection of the best course of action. Decisions related to product design and innovation are often driven by a communication of market research, consumer feedback, and creative intuition. Also, their decision making process emphasizes cost efficiency. The company continuously seek ways to reduce costs while maintaining quality, such as automizing supply chains and using cost effective materials. ACA also encourages employee involvement in decision making process. The teams are empowered to contribute ideas and solutions, fostering a collaborative and innovative culture. With this, we come to the end of Model five of our course. I hope you enjoyed it and I look forward to see you in the near future.