Introduction to Business Management
Ethics and Corporate Social Responsibility
Business decisions must consider ethical aspects, involving five core values: equality, freedom, dialogue, respect, and solidarity. This consideration is known as Corporate Social Responsibility (CSR), primarily promoted by large businesses.
Why the Boom in Ethical Considerations?
- Increasingly demanding customers
- Importance of horizontal organizations
- Accounting scandals
- Gradual environmental damage
- Impact of anti-globalization groups
Evolution of the Entrepreneur
Classical Approach
- 18th Century: Physiocrats limited the entrepreneur to the farmer.
- Entrepreneur as a Capitalist (Adam Smith): Identifies the entrepreneur as the owner of the means of production and the “master” of work.
- Employer Agent or Businessman Theory (R. Cantillon and J.B. Say): The employer buys means of production at certain prices, combines them into a product, and sells it at an uncertain price.
- Employer as a Fourth Factor of Production: Has a dual function: predicting demand and organizing production factors.
- Employer Risk Theory: Anticipates input costs under uncertainty. Success depends on the ability to anticipate scenarios.
- Innovative Entrepreneur Theory (Schumpeter): Introduces continuous innovations like new products, production methods, markets, procurement forms, and organizational ways.
- Employer Control or Policy-Making Theory: Identifies the employer as the “administrative man” making decisions.
- Entrepreneur and Technological Structure Theory: Firms are managed by a technical college of professionals, forming the techno-structure, which makes decisions.
- Leader or Employer Leadership Role Theory: Identifies the employer as a visionary, motivating, and cohesive leader who develops a successful culture.
Managerial Functions
Planning
Sets targets and goals, specifying actions to achieve them. Characteristics include: driving force, adaptability, coordination, and consensus-building.
Organization
Designs the structure and assigns tasks to achieve objectives. Considers resources and comprises relationships between company elements, requiring a common goal.
Decision-Making
Chooses between alternatives to solve problems or achieve goals. Involves analysis, design, and implementation.
Control
Observes, measures, and compares results with objectives. Aims to enhance successful efforts and correct deficiencies. Stages include: evaluating results, comparing with predictions, analyzing deviations, and adjusting future operations.
The Nature of Managerial Work
Management activities are grouped into four levels:
- Interpersonal Roles: Relationships with company members (figurehead, leader, liaison).
- Informational Roles: Responsible for information analysis and transmission (monitor, disseminator, spokesperson).
- Decision-Making Roles: Making decisions (entrepreneur, disturbance handler, resource allocator, negotiator).