Overview of Management Types and Functions môn Principle of Management | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

1-1 Describe management and the kinds of managers found in organizations. → Description:
Management is the process of planning, organizing, leading, and controlling an
organization’s resources (human, financial, physical, and informational) to achieve
its goals effectively and efÏciently.
→ Kinds of managers:
1. Top managers – Set overall goals and strategic direction.
2. Middle managers – Translate top management’s strategies into specific plans.
3. First-line managers – Supervise and coordinate the day-to-day activities of employees.
→ Example (Apple):
Tim Cook (CEO) → Top manager – decides the long-term strategy such as
expanding Apple’s services (like Apple TV+ and Apple Pay).
Vice Presidents (e.g., VP of Marketing) → Middle managers – create
marketing plans to launch new products like iPhone 16.
Store Managers in Apple Stores → First-line managers – manage sales
staff and ensure excellent customer service daily.
1-2 Explain the four basic management functions. The four basic functions are:
1. Planning: Setting objectives and deciding how to achieve them.
→ Example: Apple plans new product launches years in advance, such as
creating a roadmap for the next iPhone or Apple Watch.
2. Organizing: Arranging tasks, people, and resources to accomplish the plan.
→ Example: Apple organizes design, software, and hardware teams to work
together efÏciently on new devices.
3. Leading: Motivating, communicating, and inspiring employees to achieve goals.
→ Example: Tim Cook encourages innovation and teamwork through open
communication and ethical leadership.
4. Controlling: Monitoring performance and making necessary adjustments.
→ Example: Apple tracks sales performance after launching new products and
adjusts its marketing strategies if needed. 1
1-3 Describe the fundamental management skills and the concept of
management as both science and art.
→ Fundamental management skills:
1. Technical skills – Understanding and using specific methods or tools.
→ Example: Apple’s engineering managers must understand chip design technology (e.g., M3 chip).
2. Human skills – Working effectively with people.
→ Example: Apple’s retail managers motivate and train employees to deliver great customer service.
3. Conceptual skills – Seeing the organization as a whole and understanding
how different parts fit together.
→ Example: Apple’s executives align design, production, and marketing
toward one vision — user-friendly innovation.
→ Management as both science and art:
Science – Based on systematic knowledge, theories, and data analysis.
Art – Based on personal insight, creativity, and experience.
→ Example: Apple uses data analysis (science) to predict customer needs and
creative design (art) to make attractive products.
1-4 Explain the importance of history and theory to managers. → Importance:
History helps managers understand how management practices evolved and avoid past mistakes.
Theory provides a framework for making decisions and predicting organizational outcomes.
→ Example (Apple):
Apple learns from past management history — e.g., after Steve Jobs was fired in
1985, Apple’s leadership realized the importance of visionary leadership and
innovation. When Jobs returned in 1997, the company applied this lesson and
focused again on creative product design and integration.
1-5 Explain the evolution of management thought through the classical,
behavioral, and quantitative perspectives. 2
1. Classical Perspective: Focused on efÏciency, hierarchy, and structure.
→ Example: Apple’s manufacturing processes follow structured production
lines for efÏciency — similar to classical ideas of productivity.
2. Behavioral Perspective: Emphasized human relations and motivation.
→ Example: Apple promotes a collaborative and inspiring work environment
to motivate creativity among designers and developers.
3. Quantitative Perspective: Uses mathematics, data, and decision models.
→ Example: Apple uses big data to forecast demand, manage supply chains,
and optimize logistics decisions worldwide.
1-6 Discuss the key contemporary management perspectives represented
by the systems and contingency perspectives. 1. Systems Perspective:
oViews an organization as a set of interrelated parts working together toward a common goal.
→ Example: Apple operates as a system where R&D, design,
production, marketing, and customer support work together to deliver one unified user experience.
2. Contingency Perspective:
oSuggests that the best management style depends on the situation — “no one best way.”
→ Example: During the COVID-19 pandemic, Apple shifted from in-
ofÏce collaboration to remote work and digital coordination — adapting
management style to fit new conditions.
1-7 Identify the major challenges and opportunities faced by managers today.
→ Major challenges: Rapid technological change Global competition
Sustainability and ethical issues Managing remote teams → Opportunities: Expanding digital innovation 3 Entering new markets
Using AI and data analytics for decisions
→ Example (Apple):
Apple faces challenges such as maintaining privacy standards and competing with
global tech giants like Samsung. However, it also seizes opportunities — e.g.,
investing in AI, sustainability (carbon-neutral products), and expanding services like Apple Vision Pro.
2-1 Discuss the nature of an organization’s environments and the
components of its general, task, and internal environments.
→ Nature of an organization’s environment:
An organization’s environment includes all external and internal factors that affect
its operations and performance. → Components:
1. General environment – Broad external conditions such as economic,
technological, political, sociocultural, and international factors.
→ Example: Apple faces economic fluctuations (like inflation) and rapid
technological changes that influence its innovation strategy.
2. Task environment – Specific external groups that directly affect the
company, such as customers, suppliers, competitors, and regulators.
→ Example: Apple’s task environment includes suppliers like Foxconn,
competitors like Samsung, and customers who demand high-quality products.
3. Internal environment – Elements within the organization such as
employees, culture, and management.
→ Example: Apple’s internal environment is shaped by its innovative culture,
teamwork, and leadership style that emphasize creativity and perfection.
2-2 Describe managerial ethics and the ethical environment of management.
→ Managerial ethics:
Managerial ethics are the standards of behavior that guide managers in their
decisions and actions — what is right or wrong in a business context.
→ Ethical environment:
An ethical environment promotes honesty, fairness, respect, and accountability in decision-making. 4
→ Example (Apple):
Apple practices strong managerial ethics by protecting customer privacy (e.g.,
refusing to unlock iPhones for external agencies without consent). It also ensures
fair labor conditions through audits of supplier factories and promotes transparency in its environmental reports.
2-3 Discuss the concept of social responsibility. → Definition:
Social responsibility is the idea that businesses should act in ways that benefit
society, not just maximize profits. It includes environmental protection, community
engagement, and ethical labor practices.
→ Example (Apple):
Apple shows social responsibility through its environmental initiatives, such as
using recycled materials in products, achieving carbon neutrality, and ensuring
that all suppliers move toward clean energy. It also supports education and
accessibility programs through its “Apple Education” projects.
2-4 Discuss the international environment of management. → Definition:
The international environment includes the global forces that affect how a company
operates across different countries — such as trade laws, cultural differences, global
competition, and exchange rates.
→ Example (Apple):
Apple manages operations in more than 100 countries. It faces global supply chain
challenges (e.g., manufacturing in China and India), cultural differences in
marketing strategies, and political risks like tariffs between the U.S. and China.
Apple adapts by diversifying suppliers and tailoring products to regional markets.
2-5 Describe the importance and determinants of an organization’s culture. → Importance:
Organizational culture defines the shared values, beliefs, and norms that influence
how employees behave and make decisions. A strong culture motivates employees,
promotes innovation, and ensures consistent brand identity.
→ Determinants of culture:
Company history and founder’s values 5 Leadership style
Employee behavior and communication
Corporate mission and goals
→ Example (Apple):
Apple’s culture is built on innovation, design excellence, and secrecy. Steve
Jobs’ philosophy of simplicity and perfection shaped the company’s culture.
Employees are encouraged to “think different,” work collaboratively, and maintain
high standards for every product — from iPhones to Macs.
3-1 Summarize the planning process and organizational goals.
→ Planning process:
1. Establish organizational goals – Define what the company wants to achieve.
2. Identify resources and constraints – Determine what is needed and what limits exist.
3. Develop plans – Create strategies to reach the goals.
4. Implement plans – Put strategies into action.
5. Evaluate performance – Monitor and adjust as necessary.
→ Example (Apple):
Apple’s planning process for launching a new iPhone includes setting a goal
(increase sales and innovation), allocating resources (R&D, marketing, supply
chain), executing the plan, and analyzing sales results to improve future products.
→ Organizational goals:
Apple’s main goals are innovation, customer satisfaction, and sustainability.
3-2 Discuss the components of strategy and the types of strategic alternatives.
→ Components of strategy:
1. Scope – The range of markets and products.
2. Resource deployment – How resources are distributed.
3. Distinctive competence – What makes the company unique.
→ Types of strategic alternatives: 6
Corporate-level strategies (overall company direction)
Business-level strategies (how to compete in a market)
Functional-level strategies (how each department supports the business)
→ Example (Apple):
Apple’s corporate strategy focuses on diversification (devices, services, and software).
Its business strategy emphasizes premium quality and innovation.
Its functional strategy ensures seamless coordination between design, marketing, and retail.
3-3 Describe how to use SWOT analysis in formulating strategy.
→ SWOT Analysis:
Strengths – Internal advantages
Weaknesses – Internal disadvantages
Opportunities – External positive trends
Threats – External challenges
→ Example (Apple):
Strengths: Strong brand, loyal customers, advanced design
Weaknesses: High product prices
Opportunities: Growth in wearables and AI integration
Threats: Global competition, changing regulations
Apple uses SWOT to design strategies — for example, investing in new technologies
(AI chips) to turn opportunities into growth while maintaining its premium brand.
3-4 Discuss various alternative approaches to business-level strategy formulation.
→ Main approaches:
1. Differentiation strategy – Offering unique products.
2. Cost leadership strategy – Producing at the lowest cost.
3. Focus strategy – Serving a specific market segment. 7
→ Example (Apple):
Apple uses a differentiation strategy by creating innovative, high-quality
products (like the iPhone and MacBook) with a strong brand identity and superior user experience.
3-5 Describe various alternative approaches to corporate-level strategy formulation.
→ Main approaches:
1. Growth strategy – Expanding the business.
2. Stability strategy – Maintaining current operations.
3. Retrenchment strategy – Reducing or restructuring operations.
4. Diversification strategy – Entering new markets or products.
→ Example (Apple):
Apple follows a growth and diversification strategy — expanding into digital
services (Apple Music, Apple TV+) and new product categories (Apple Vision Pro, AR/VR devices).
3-6 Discuss how tactical plans are developed and implemented. → Definition:
Tactical plans translate strategic goals into specific short-term actions for departments or teams. → Process:
1. Identify specific objectives.
2. Allocate resources and assign responsibilities. 3. Set timelines.
4. Monitor and adjust execution.
→ Example (Apple):
After deciding to launch a new iPhone, Apple’s marketing department creates
tactical plans for advertising campaigns, retail displays, and online promotions within a specific timeframe.
3-7 Describe the basic types of operational plans used by organizations.
→ Types of operational plans: 8
1. Single-use plans – Developed for one-time projects (e.g., launching a new product).
2. Standing plans – Ongoing policies, rules, and procedures used repeatedly.
3. Contingency plans – Backup plans for unexpected situations.
→ Example (Apple):
Single-use: Launching the first Apple Vision Pro.
Standing plan: Standard quality control and privacy policies.
Contingency plan: Backup production plans when supply chains in China are disrupted.
6-1 Identify the basic elements of organizations.
→ Basic elements:
1. Job specialization – Dividing work into specific tasks.
2. Departmentalization – Grouping jobs into departments.
3. Chain of command – The hierarchy of authority.
4. Span of management (control) – Number of employees a manager supervises.
5. Centralization vs. decentralization – Where decision-making power is concentrated.
6. Formalization – How standardized policies and procedures are.
→ Example (Apple):
Apple divides its organization by function — design, engineering, marketing, retail —
each led by senior vice presidents. Decision-making is centralized, meaning major
decisions are made by top management like Tim Cook to maintain consistency and product quality.
6-2 Describe the bureaucratic perspective on organization design. → Description:
The bureaucratic model (developed by Max Weber) emphasizes: A clear hierarchy Formal rules and regulations Division of labor 9 Impersonal relationships Career-based advancement
→ Example (Apple):
Apple applies elements of bureaucracy by maintaining a well-defined hierarchy
(from CEO to managers to teams) and strict quality-control rules to ensure every
iPhone and Mac meets company standards. However, Apple balances this with
creativity and flexibility to stay innovative.
6-3 Explain key situational influences on organization design.
→ Key influences:
1. Organization size – Larger firms need more structure.
2. Technology – Affects how work is done and coordinated.
3. Environment – Stable vs. dynamic markets require different flexibility levels.
4. Strategy – The company’s goals shape its structure.
→ Example (Apple):
Size: Apple’s global scale requires formal coordination between departments.
Technology: New AI and chip technologies push Apple to integrate R&D with hardware and software.
Environment: Fast-changing tech markets make Apple flexible and adaptable.
Strategy: Its innovation strategy demands cross-functional collaboration among designers and engineers.
6-4 Describe the basic forms of organization design that characterize many organizations. → Basic forms:
1. Functional structure – Groups employees by similar skills or functions.
2. Divisional structure – Based on products, customers, or geography.
3. Matrix structure – Combines functional and project-based structures.
4. Team-based or network structure – Focuses on collaboration and flexibility. 10
→ Example (Apple):
Apple mainly uses a functional structure:
Design team (led by VP of Design)
Marketing team (led by VP of Marketing) Operations team (led by COO)
But for major projects (like Apple Vision Pro), Apple also applies a matrix
structure, combining engineers, designers, and software experts into one product team.
6-5 Identify emerging issues in organization design.
→ Emerging issues:
1. Managing rapid change – Adapting to new technologies and global markets.
2. Cross-cultural management – Operating in multiple countries with different cultures.
3. Remote and hybrid work – Balancing flexibility and productivity.
4. Diversity, equity, and inclusion (DEI) – Building inclusive workplaces.
5. Sustainability and ethical governance – Designing structures that support social responsibility.
→ Example (Apple):
Apple faces emerging challenges such as managing global remote teams,
promoting diversity (hiring more women and underrepresented groups), and
maintaining ethical supply chains. It also redesigns its organization to focus more
on environmental sustainability and innovation in green technologies.
7-1 Describe the nature of organization change, including forces for
change and planned versus reactive change.
→ Nature of organization change:
Organization change is the process of modifying a company’s structure, strategy,
technology, or culture to adapt to internal and external factors.
→ Forces for change:
External forces: Technology, competition, customer preferences, laws, economy.
Internal forces: Leadership changes, employee behavior, company goals. 11
→ Planned vs. Reactive change:
Planned change: Carefully designed and implemented in advance.
Reactive change: Responding to unexpected events or crises.
→ Example (Apple):
Apple made planned changes when it transitioned from Intel processors to its own
Apple Silicon (M1/M2 chips) — a strategic, long-term plan.
It made reactive changes during COVID-19 by shifting to remote work and
online events to adapt to sudden global restrictions.
7-2 Discuss the steps in organization change and how to manage
resistance to change.
→ Steps in organization change:
1. Recognize the need for change.
2. Establish goals for the change.
3. Plan the change.
4. Implement the change.
5. Evaluate and follow up.
→ Managing resistance to change:
Communicate clearly about the reasons for change.
Involve employees in the process.
Provide support, training, and motivation.
→ Example (Apple):
When Apple introduced the Apple Silicon transition, some engineers resisted
learning new chip architectures. Management handled this by offering training
programs, open communication about benefits (better performance,
independence), and recognizing teams’ efforts — which helped reduce resistance and increase motivation.
7-3 Describe the major areas of organization change and the assumptions,
techniques, and effectiveness of organization development.
→ Major areas of organization change:
1. Technology: Adopting new systems or tools. 12
2. Structure: Redesigning departments or hierarchy.
3. People: Changing employee attitudes or skills.
4. Strategy: Shifting company direction or goals.
→ Organization Development (OD):
A planned effort to improve an organization’s effectiveness through behavioral science. → Assumptions:
Employees want to grow and participate in change.
Collaboration improves performance.
Open communication builds trust. → Techniques: Team building Sensitivity training Survey feedback Coaching and mentoring
→ Example (Apple):
Apple applies OD by promoting collaboration between design, software, and
hardware teams through cross-functional projects. Regular team workshops and
open communication channels help maintain innovation and unity across
departments, increasing overall performance.
7-4 Discuss the innovation process, forms of innovation, failure to
innovate, and how organizations can promote innovation.
→ Innovation process:
1. Development – Creating and testing ideas.
2. Application – Turning ideas into products.
3. Launch – Introducing to the market.
4. Growth – Refining and scaling successful innovations.
→ Forms of innovation:
Product innovation: New or improved products.
Process innovation: Better production or delivery methods. 13
Business model innovation: New ways of creating value.
→ Failure to innovate:
Companies that fail to innovate lose competitiveness or market share.
→ How to promote innovation:
Encourage creativity and risk-taking. Provide R&D funding.
Build an open and supportive culture. Reward innovative ideas.
→ Example (Apple):
Apple’s innovation process led to products like the Apple Watch and Vision Pro.
The company fosters innovation by investing heavily in R&D, maintaining a
creative culture, and rewarding employees for breakthroughs. Its failure to
innovate in the 1990s almost led to bankruptcy — a lesson that drives its current
focus on continuous innovation.
organization A group of people working together in a structured and coordinated
fashion to achieve a set of goals
ex: which may include profit (Netflix, Starbucks, and Facebook), the discovery of
knowledge (the University of Nebraska or the National Science Foundation), national
defense (the U.S. Navy or Marines), the coordination of various local charities (the
United Way of America), or social satisfaction (a fraternity or sorority).
management A set of activities (including planning and decision making,
organizing, leading, and controlling) directed at an organization’s resources (human,
financial, physical, and information) with the aim of achieving organizational goals
in an efÏcient and effective manner
manager Someone whose primary responsibility is to carry out the management process
efÏcient Using resources wisely in a cost-effective way
effective Making the right decisions and successfully implementing them
Top managers make up the relatively small group of executives who manage the overall organization.
Ex: Reed Hastings is a top manager. Kevin Johnson, CEO of Starbucks, is also a top
manager, as is Matthew Ryan, the firm’s global chief marketing executive. Likewise, 14
Mark Zuckerberg (Facebook’s founder and top executive), Tim Cook (CEO of Apple),
and Mary Barra (CEO of General Motors) are also top managers.
Middle management is probably the largest group of managers in most
organizations. Common middle-management titles include plant manager,
operations manager, and division head.
Middle managers are primarily responsible for implementing the policies and
plans developed by top managers and for super vising and coordinating the
activities of lower-level managers.
Ex: Jason Hernandez, a regional manager at Starbucks responsible for the firm’s
operations in three eastern states, is a middle manager.
First-line managers supervise and coordinate the activities of operating employees.
Ex: John Koch and Nita Garcia, managers of Starbucks coffee shops in Texas, are first line managers.
ADVANTAGE AND DISADVANTAGE [Chapter 1]
* The Classical Management Perspective Contributions:
Introduced numerous management methods and principles that remain
valuable in modern organizations.
Highlighted the importance of studying management as a distinct and significant discipline. Limitations:
Best suited for stable and straightforward organizations, making it less
effective in today’s dynamic and complex environments.
Suggested universal rules that may not apply to all types of organizations.
Overlooked the significance of individual differences and human factors within the workplace.
Ex: Ford Motor Company (early 1900s) – Henry Ford applied Scientific Management to car production.
He used time-and-motion studies to simplify tasks and introduced the
assembly line, which increased productivity dramatically. 15
Benefit: Cars were produced faster and cheaper.
Limitation: Workers felt bored and unmotivated because the jobs were
repetitive and offered little freedom.
* The Behavioral Management Perspective Contributions:
Helped managers better recognize the significance of human behavior within organizations.
Encouraged leaders to see employees as important assets rather than just instruments for production. Limitations:
Human behavior is complex, making it challenging to forecast or manage accurately.
Some managers may struggle to fully grasp or apply behavioral principles in real situations.
Ex: The Hawthorne Studies (conducted at Western Electric Company, 1920s–1930s) led by Elton Mayo:
Contribution: Showed that workers are more productive when they feel
valued and receive attention — this highlighted the importance of social factors and motivation.
Limitation: The results were later criticized for lacking scientific precision and
for overestimating the effect of attention on performance
* The Quantitative Management Perspective Contributions:
Offers managers a wide range of analytical tools and methods for making informed decisions.
Enhances comprehension of how various parts of an organization function together.
Especially effective in improving planning and control activities. Limitations:
Does not completely explain or predict human behavior and personal attitudes.
The technical expertise required can limit the growth of other essential management abilities. 16
Relies on assumptions that may not always reflect real-world conditions.
Ex: During World War II, the U.S. military used operations research to determine the
best flight paths, weapon use, and resource allocation.
Contribution: Greatly improved efÏciency and success rates in military operations.
Limitation: These mathematical models didn’t account for human emotions or
unpredictable behavior, which could still affect real-life outcomes. [Chapter 2] 1. Importing or Exporting Advantages:
Requires only a small financial investment.
Involves minimal risk for the business.
No major changes to existing operations are needed. Disadvantages:
Subject to tariffs and import/export taxes.
High shipping and logistics costs.
Possible restrictions or regulations from governments. 2. Licensing Advantages:
Can lead to higher profits from overseas markets.
Allows companies to extend their product or brand reach. Disadvantages:
Limited flexibility in operations and decisions.
Risk of competition from licensees or similar products.
3. Strategic Alliances or Joint Ventures Advantages:
Enables companies to enter new markets more quickly.
Provides access to local resources, knowledge, and technologies. 17 Disadvantages:
Shared control can reduce independence and potential profits. 4. Direct Investment Advantages:
Offers stronger control over operations and decision-making.
Makes use of the host country’s infrastructure and resources. Disadvantages:
Involves complicated management processes.
Exposes the company to higher economic and political risks.
Carries greater uncertainty about returns and stability. Ex 1. Importing or Exporting Advantage example:
A small Vietnamese coffee company exports packaged coffee to Japan. It earns
extra profit with low investment and minimal risk, since it doesn’t need to build a new factory abroad. Disadvantage example:
However, due to high transportation costs and import tariffs, its products become
more expensive and less competitive in the Japanese market. 2. Licensing Advantage example:
Disney licenses its characters (like Mickey Mouse) to a Japanese toy company.
Disney earns steady profits without directly managing production or sales in Japan. Disadvantage example:
But Disney faces competition and loss of control, since the licensee may not
maintain Disney’s high product quality or brand image.
3. Strategic Alliances or Joint Ventures Advantage example:
Sony (Japan) and Ericsson (Sweden) formed a joint venture — Sony Ericsson — 18
combining Sony’s electronics expertise with Ericsson’s mobile technology for quick
market entry and shared resources. Disadvantage example:
However, shared ownership caused conflicts in decision-making and limited profits
for both sides, eventually leading to the venture’s breakup. 4. Direct Investment Advantage example:
Toyota builds a manufacturing plant in the U.S. This gives Toyota enhanced control
over production quality and access to existing infrastructure. Disadvantage example:
Yet, it faces high costs, complex management, and political risks if U.S. trade
policies or economic conditions change. [chapter 3]
Unrelated Diversification Advantages:
Helps maintain consistent performance over time because different
businesses are affected by economic cycles in different ways.
Allows the company to direct resources toward divisions with the greatest
profit potential, improving overall corporate results. Disadvantages:
Limited understanding or expertise in industries that are not related to the firm’s core operations.
Ex: General Electric (GE) is a classic example.
GE has operated in unrelated fields such as aviation, healthcare, energy, and financial services.
Benefit: When one sector (like energy) struggled, profits from another (like
healthcare) helped balance overall performance.
Limitation: Over time, managing such a wide range of unrelated businesses
became too complex, leading GE to sell off several divisions to refocus its strategy. [chapter 6] 19
* Job Specialization Benefits:
Employees gain expertise and efÏciency by focusing on a single task.
Time lost when switching between different activities is minimized.
It becomes easier to design and use equipment tailored to specific tasks.
Replacing or training workers is simpler since each role requires limited skills. Limitations:
Performing the same routine work can lead to boredom and dissatisfaction among employees.
The expected improvements in productivity and efÏciency may not always be achieved.
Ex: Henry Ford’s automobile assembly line is a classic example of job specialization.
Benefit: Each worker performed a single task (like attaching tires or doors),
which greatly increased production speed and lowered costs.
Limitation: Workers became bored and less engaged because their jobs were repetitive and lacked variety.
* Grouping Jobs: Departmentalization
- Functional Departmentalization Advantages:
Each department can employ specialists with deep expertise in their specific functional area.
Supervision becomes easier since managers only need to oversee a limited range of related skills.
Coordination within individual departments is more efÏcient and organized. Disadvantages:
Decision-making often slows down and becomes more bureaucratic due to multiple hierarchical levels.
Employees may focus too much on their own departmental goals and lose
awareness of the organization’s overall objectives.
It becomes harder to evaluate overall accountability and measure
performance across departments. Ex: 20