The document discusses the history and principles of management. It describes how ancient construction projects required strong leadership to organize massive resources. It also summarizes Adam Smith's contribution to advocating for the division of labor to increase productivity. The industrial revolution substituted machine power for human resources and improved transportation, allowing larger organizations to serve larger markets. The document defines an organization as a systematic arrangement of people brought together to accomplish specific purposes, and explains how management is needed to help organizations operate efficiently and effectively to achieve their goals using limited resources.

1. PRINCIPLES of
MANAGEMENT
Presented by Sugiharto, SH. MM
© SUGIHARTO, SH.MM GICI Business School

2. Ancient massive construction projects
Require strong leadership skills
to organize massive people and
resources
© SUGIHARTO, SH.MM GICI Business School

3. PRINCIPLES of
MANAGEMENT Adam Smith’s Contribution To
INFLUENCE FACTORS
The Field Of Management
Advocated the economic advantages that
organizations and society would reap from the
division of labor:
(1776)
Increased productivity by increasing
each worker’s skill and dexterity
Time saved that is commonly lost in
changing tasks
The creation of labor-saving
inventions and machinery
© SUGIHARTO, SH.MM GICI Business School

4. PRINCIPLES of
MANAGEMENT
INFLUENCE FACTORS
Machine Power began to
substitute human resources
The Industrial
Revolution’s Improve and less costly
Influence On transportation system
Management became available
Practices
Larger organization develops
to serve larger market
© SUGIHARTO, SH.MM GICI Business School

5. PRINCIPLES of
MANAGEMENT
THE ORGANIZATION
© SUGIHARTO, SH.MM GICI Business School

6. PRINCIPLES of Without Goals There Will
MANAGEMENT be No Organizations
THE ORGANIZATION
PURPOSES
PEOPLE
An Organization is a
systematic arrangement STRUCTURES
of people brought
together to accomplish
some specific purposes Profit
Nonprofit
© SUGIHARTO, SH.MM GICI Business School

7. PRINCIPLES of
MANAGEMENT
THE ORGANIZATION
NEED MANAGEMENT
Preserving Knowledge
© SUGIHARTO, SH.MM GICI Business School

8. PRINCIPLES of
MANAGEMENT
THE ORGANIZATION
NEED MANAGEMENT
Efficient
Effective
Limited Resources GOALS
ORGANIZATIONS
Priority
Competitive
Advantages
© SUGIHARTO, SH.MM GICI Business School

9. PRINCIPLES of Efficient means doing the task correctly and refers
to the relationship between inputs and
MANAGEMENT outputs Management is concerned with
minimizing resource costs
THE OBJECTIVES
means doing the right things. In an
Effective organization, that translates into goal
attainment
Efficiency Effectiveness
Low High
Resources GOALS
Usage Goal
Attainment
Waste Attainment
© SUGIHARTO, SH.MM GICI Business School

10. Men Money Method
Material Machine Market
© SUGIHARTO, SH.MM GICI Business School

11. PRINCIPLES of
MANAGEMENT
THE DEFINITION
Effectively
Getting
Management The PROCESS Things
Done
Efficiently
Through other
PEOPLE
© SUGIHARTO, SH.MM GICI Business School

12. PRINCIPLES of
MANAGEMENT
THE DEFINITION
Generally
Specifically management is
leading the activity
Management To Manage
© SUGIHARTO, SH.MM GICI Business School

13. THANK YOU FOR LISTENING
1st Meeting
Principles of Management
STIE GiCI Business School
September 2012
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Closing theme by Westlife
‘Season in The Sun’
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© SUGIHARTO, SH.MM GICI Business School