Management, its evolution, levels and approaches to management

1. Management, its evolution, levels and approaches to management

2. WHAT IS MANAGEMENT? The stem of the word is manage, which according to Webster’s Dictionary is a verb meaning “to control the movement or behavior of, to lead or direct, or to succeed in accomplishing” (Allee, 1990).

3. WHAT IS MANAGEMENT? According to Tootelian and Gaedeke (1993), management is “a process which brings together resources and unites them in such a way that, collectively, they achieve goals or objectives in the most efficient manner possible.”

4. Principles of management: • Purposefulness - any activity at the enterprise should be directed on achievement of specific goals and execution of the tasks • Taking into account of requirements and interests - this principle urged to satisfy requirements and interests of workers for the purpose of enterprise goal achievement on motivation bases • Hierarchy - an arrangement of administrative posts in organizational structure since bottom level of management and finishing the higher • Interdependence - the organisation consists of internal factors (The purposes, structure, technology, workers, tasks, resources) which are closely connected among themselves. • Dynamic balance is a continuous development of the enterprise and observance of general balance at each stage of development • Profitability - forms principles of functioning of the enterprise from a position of equation of expenses, profits, provides development of budgetary relations • Activization - a principle which pushes the enterprise to effectiveness, constant development, use of innovations • Systematic character - according to this principle the enterprise is considered as open system which consists from interdependent elements • Autocracy - expects availability of the unique responsible centre which exercises administration and coordination of activity of the enterprise for the purpose of achievement of its purposes

5. THE HISTORY OF MANAGEMENT • Development of science about management of people in the course of production • Forming of administrative mechanisms on principles of development of human relations • Construction of management systems focused on the market • Active application of quantitative methods as important directions of formalisation of methods of management and their transformation in management decisions • Forming of system and situational approaches • Computerisation of management processes

6. THE HISTORY OF MANAGEMENT While management and managers have been with us since humans have had tasks to perform and goals to accomplish (e.g., gathering food or finding shelter), the study of management as a scientific and academic curriculum is relatively new. Around the turn of the twentieth century, an American industrialist and a French engineer began to publish observations in what would become known as the classical, or administrative, school of management thought. It was F. Taylor and A. Fayol.

7. Classical Management Theory (Fayol) Fayol’s 5 management functions: 1. Forecast and plan 2. Organize 3. Command 4. Coordinate 5. Control

8. Classical Management Theory (Fayol) Fayol’s 14 principles for organizational design and effective administration: • Specialization/division of labor. People should perform tasks specific to their skills. No one person should be expected to perform all the skills needed to run an organization. • Authority with corresponding responsibility. People with responsibility also have sufficient authority within an organization to ensure that a task is performed. • Discipline. People should follow rules, with consequences for not following rules. • Unity of command. The organization has an administrator who is recognized as having the ultimate authority (e.g., CEO or president). • Unity of direction. The organization has a sense of direction or vision that is recognized by all members (e.g., mission statement). • Subordination of individual interest to general interest. The goals of the organization supersede the goals of any individuals within the organization. • Remuneration of staff. Employees should be paid appropriately given the market for their skills and their level of responsibility. • Centralization. Performing similar tasks at a single location is more effective than performing these tasks at multiple locations. • Scalar chain/line of authority. Each employee has one, and only one, direct supervisor. • Order. Tasks should be performed in a systematic fashion. • Equity. Supervisors should treat employees with a sense of fairness. • Stability of tenure. Benefits should go to employees who have stayed with an organization longer. • Initiative. Organizations and employees are more effective when they are proactive, not reactive. • Esprit de corps. Teamwork, harmony

9. THE MANAGEMENT PROCESS

10. PLANNING Planning is predetermining a course of action based on one’s goals and objectives. Managers must consider many factors when planning, including their internal and external environments.

11. PLANNING Characteristics of planning: • Goal oriented. • Primacy. • Pervasive. • Flexible. • Continuous. • Involves choice. • Futuristic. • Mental exercise. • Planning premises.

12. PLANNING Importance of planning: • Make objectives clear and specific. • Make activities meaningful. • Reduce the risk of uncertainty. • Facilitators coordination. • Facilitators decision making. • Promotes creativity. • Provides basis of control. • Leads to economy and efficiency. • Improves adoptive behavior. • Facilitates integration.

13. Formal and informal planning • Formal planning usually forces managers to consider all the important factors and focus upon both short- and long-range consequences. Formal planning is a systematic planning process during which plans are coordinated throughout the organization and are usually recorded in writing. • Planning that is unsystematic, lacks coordination, and involves only parts of the organizations called informal planning

14. PLANNING Stages in planning. • The first step in planning is to develop organizational objectives. • Second, planning specialists and top management develop a strategic plan and communicate it to middle managers. • Third, use the strategic plans to coordinate the development of intermediate plans by middle managers. • Fourth, department managers and supervisors develop operating plans that are consistent with the intermediate plans. • Fifth, implementation involves making decisions and initiating actions to carry out the plans. • Sixth, the final stage, follow-up and control, which is critical.

15. ORGANIZING Organizing is the arrangement and relationship of activities and resources necessary for the effective accomplishment of a goal or objective. Once a pharmacist has decided which drug products or services she should offer, she needs to ask herself what resources she needs to provide them, how she will go about obtaining these resources, and then determine when she will need to obtain them.

16. ORGANIZING Importance of the organization process and organization structure. • Promote specialization. • Defines jobs. • Classifies authority and power. • Facilitators' coordination. • Act as a source of support security satisfaction. • Facilitators' adaptation. • Facilitators' growth. • Stimulators creativity.

17. LEADING This step combines Fayol’s command and coordinate steps to provide a better description of what managers actually do in today’s world. Leading or directing involves bringing about purposeful action toward some desired outcome.

18. LEADING The degree of leader's influence on individuals and group effectiveness is affected by several energizing forces: • Individual factors. • Organizational factors. • The interaction (match or conflict) between individual and organizational factors.

19. CONTROL Control or evaluation involves reviewing the progress that has been made toward the objectives that were set out in the plan. This step involves not only determining what actually happened but also why it happened.

21. MOTIVATION Motivation is to inspire people to work, individually or in groups in the ways such as to produce best results. It is the will to act. It is the willingness to exert high levels of effort towards organizational goals, conditioned by the efforts and ability to satisfy some individual need.

22. MOTIVATION

23. MOTIVATION • (1) Achievement Motivation • It is the drive to pursue and attain goals. An individual with achievement motivation wishes to achieve objectives and advance up on the ladder of success. Here, accomplishment is important for its own shake and not for the rewards that accompany it. It is similar to ‘Kaizen’ approach of Japanese Management. • (2) Affiliation Motivation • It is a drive to relate to people on a social basis. Persons with affiliation motivation perform work better when they are complimented for their favorable attitudes and co-operation. • (3) Competence Motivation • It is the drive to be good at something, allowing the individual to perform high quality work. Competence motivated people seek job mastery, take pride in developing and using their problem-solving skills and strive to be creative when confronted with obstacles. They learn from their experience. • (4) Power Motivation • It is the drive to influence people and change situations. Power motivated people wish to create an impact on their organization and are willing to take risks to do so. • (5) Attitude Motivation • Attitude motivation is how people think and feel. It is their self confidence, their belief in themselves, their attitude to life. It is how they feel about the future and how they react to the past. • (6) Incentive Motivation • It is where a person or a team reaps a reward from an activity. It is “You do this and you get that”, attitude. It is the types of awards and prizes that drive people to work a little harder. • (7) Fear Motivation • Fear motivation coercions a person to act against will. It is instantaneous and gets the job done quickly. It is helpful in the short run.

24. MOTIVATION REQUISITES TO MOTIVATE • We have to be Motivated to Motivate • Motivation requires a goal • Motivation once established, does not last if not repeated • Motivation requires Recognition • Participation has motivating effect • Seeing ourselves progressing Motivates us • Challenge only motivates if you can win • Everybody has a motivational fuse i.e. everybody can be motivated • Group belonging motivates

25. DIFFERENCE BETWEEN MOTIVATION, SATISFACTION, INSPIRATION AND MANIPULATION

26. LEVELS OF MANAGEMENT The term “Levels of Management’ refers to a line of demarcation between various managerial positions in an organization. The number of levels in management increases when the size of the business and work force increases and vice versa. The level of management determines a chain of command, the amount of authority & status enjoyed by any managerial position.

27. LEVELS OF MANAGEMENT

29. Thank you for attention!