MANAGEMENT

1. MANAGEMENT

2. WHAT IS MANAGEMENT ALL ABOUT ? – 1. 1. The organization • Definition : ~ is a system which operates through human activity. • Determinative elments of the society, eg.: cash income, entertainment, producing products, services, etc. • Theory: organizations are very complex social formations, their links can’t be described with only one theory.

3. WHAT IS MANAGEMENT ALL ABOUT ? – 1. • Particular theories – different viewpoints, different characteristics : 3 levels Macro : cooperation among different organizations Mezzo : structures of the organizations, and influencing factors Micro : behaviour of the members of the organizations,motivation, conflicts

4. WHAT IS MANAGEMENT ALL ABOUT ? – 1. 2. The management • Definition : management is about planning, organizing, leading, and controlling the financial-, physical-, informational-, and human resources. • Management functions 4 areas Planning: is the process of setting objectives and then determining the steps needed to attain them.

5. WHAT IS MANAGEMENT ALL ABOUT ? – 1. The planning process itself consists of five steps : (1) awarness of the opportunity, (2) establishment of the objectives, (3) determination and choice of alternative courses of action, (4) formulation of derivative plans, and (5) budgeting of the plan. Organizing : is the process of assigning duties to personnel and coordinating employee efforts in order to ensure maximum efficiency. The manager must consider both structure and people !

6. WHAT IS MANAGEMENT ALL ABOUT ? – 1. Controlling : every organization needs to control both operations and people. The controlling process consists of three steps : (1) establishment of standards, (2) comparison of results against standards, and (3) correction of deviations. Leadership : is the process of influencing people to direct their efforts toward the achievement of some particular goal. Managers must be knowledgeable about human behavior, the concept of leadership, and communication.

7. WHAT IS MANAGEMENT ALL ABOUT ? – 1. 3. The Roles of Managers ( Mintzberg ) • Interpersonal roles : to keep the organization running smoothly. As a Figurehead (1) : manager meets important people, takes customers to lunch, and simply lets people know that he or she is the key person; As a Leader (2) : the manager is responsible for hiring, training, counseling, and directing subordinates; As a Liaison (3) : the manager interacts with people at the same level of the hierarchy as well as with others outside the organization .

8. WHAT IS MANAGEMENT ALL ABOUT ? – 1. • Informational roles : enable the manager to gather and pass on information. As a Monitor (1) : the manager talks to subordinates and gathersinformation that is useful in running the department. As a Disseminator (2) : he or she passes information along to subordinates. As a Spokesman (3) : the manager provides information to people outside the department.

9. WHAT IS MANAGEMENT ALL ABOUT ? – 1. • Decisional roles : are the ones through which the manager makes things happen. As an Entrepreneur (1) : who seeks to improve the unit and adapt it to changingconditions. As a Disturbance Handler (2) : trying to resolve problems before they become serious. As aResource Allocator (3) : the manager decides who will get resources and how much they will receive. As aNegotiator (4) : a role that varies with the level of the organization.

10. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. • Basic characteristics of the organizational structures • Division of labor : dividing work into small components so that the workers become specialists in their tasks. ( functional, product, geographic – one dimension: functional-line structure/multi dimensions: divisional, matrix organizatons ) • Authority : the right to command.( one line: line structure/ multi lines: funtional, matrix )

11. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. • Coordination : the synchronization of the human efforts of individuals and groups for the purpose of attaining organizational efficiency. Coordination tools : Technocratic – planning system, budgeting; Structural – report system, teams, projects; Employee oriented – individual/group motivations

12. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. 2. Organizational Structures 2.1. Line Structure • Advantage : simple, well arranged, only one boss, reports and orders following the official way, if the quantity of tasks has changed this structure can be easily modified. • Disadvantage : the activity of top management is very complex, not flexible, distorbed information

13. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. • Application : at small organizations, in critical situations • Division of labor: according to the accomplishing tasks, according to the manager’s decision • Authority : through the official way, centralized decisions • Coordination : vertically through the official way, with the tools of power

14. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. 2.2. Staff Structure Complete the line structure, the goal is to help the managers in their complex tasks— includes experts on different fields ( eg.: sales, accounting, etc.) without authority.

15. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. 2.3. Functional-Line Structure • Advantage : division of labor among top managers -according to professions-high efficiency, clear regulations, complicated tasks could be accomplished • Disadvantage : red tape, slow decision making process, decisions are concentrated on the top of the hierarchy, decrease the ability of accommodation, can not use wide range of products

16. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. • Application : stabil environments, a narrow range of products • Division of labor: according to functions, task regulations according to job descriptions • Authority : decision making according to functions centralized, highly regulated decisions • Coordination : vertically through the official way, horizontally on the same level of hierarchy, strong regulations, technocratic tools

17. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. 2.4. Divisional Structure 2 faces of Janus : big organization - small organization • Advantage : division of labor according to functions, big independency, motivation is important, strategic and operational tasks are seperated • Disadvantage : paralell existing functional organizations,increased number of staff-decentralization, divisions became selfish-independency

18. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. • Application : dynamic environments, a wide range of products • Division of labor: according to products, customers or regions; strategic leading comes mainly from the center, but one part of them comes from the divisions. • Authority : decentralized decisions between the central unit and the divisions, centralized within the divisions

19. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. • Coordination : horizontally hardly among the divisions, technocratic tools 2.5. The Matrix Structure • Advantage : horizontally functional groups, vertically groups of products or projects, dynamic and flexible structure, good studying process at problem handlings, mixed structure, accommodate to the challenges

20. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. • Disadvantage : two way leading- conflicts are always there, competition among the managers, nobody dares to take the responsibility for the decisions • Application : dynamic environments, conflict management skills within the organization, at complex innovation claims • Division of labor: horizontally functional (technical, sales, etc. ) vertically products or projects, well done conflict management are highly suggested between the two divisions

21. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. • Authority : functional and project leaders making the decisions together, decentralized decisions, decisions are not highly regulated • Coordination : horizontally and vertically because of the structure, employee oriented tools

22. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. 2.6. The Mechanical Structure Accommodates to the stabil environment • Division of labor : exact tasks, experts • Hierarchy : coordination on top levels only, Official way, regulation • Loyalty, Obedience ( eg.: manufacturing ) • Concentrated authority

23. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. 2.7. The Organical Structure Accommodates to the dynamic environment • No specialization, no experts • Flexible • Communication and interaction is in the whole organization • Decentralized authority • Functions based on commitment( eg.: Research & Development )

24. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. 2.8. Patological Structure Organizations which are not able to became organical, because of the regulations of the mechanical structure. ( New type of tasks ) 2.9. Mintzberg • Mechanical Bureaucracy : simple tasks, stabil environment, centralized controlling, being efficient in productivity is the most important

25. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. • Professional Bureaucracy :decrease centralization, stabil environment, complicated tasks, experts needed, independence is required eg.: hospitals, universities • Enterpreneur Structure : simple, flexible, centralized, experts behind the enterpreneur • Adhocracy : are founded for certain projects ( problems ), eg.: marketing, R&D

26. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. 3. Organizational Cultures • Definition :the system of accepted values and beliefs by the members of the organization. 3.1. William Ouchi ”Z” theory How American business can meet the Japenese challenge ? How could a Japenese company function in the US, and in Japan ?

27. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. • JAPAN : lifetime employment, guarantee of job security, identical salary increases and promotion appointments for those in the same age group, career path that provide each employee experience in every phase of the organization’s operations-no specialized careers, the boss knows well his subordinates, collective decision making and responsibilities

28. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. • USA : unsecure job, not identical salary & promotion at the same age group, quick career path-quick failure, the boss doesn’t know well his subordinates, specialized career, individual decision making and responibilities • ”Z” Organization: long term plans, soft methods, lots of information at decision making, groups, trainings

29. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. 3.2. Handy • Power culture : the ” pater ”, who founded the organization, is in the central; he makes all the decisions, useful at small organizations, eg.: financial crisis • Role culture : stabil environment, rules & regulations are the most important, bureaucratic organizations, eg.: mass production • Task culture : the goal is to solve the tasks, regulations are not too important, matrix organizations, eg.: R&D

30. Regulation oriented Goal oriented Supportive Innovation oriented Orientation STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. • Personality culture : special organizations eg.: attorney offices 3.3. Quinn Margin 2 dimensions : Margin of movements ( level of flexibility / controlling ), Orientation ( whether the organizations focus on inside or outside of the company )

31. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. • Supportive : focus on human relations, inside • Regulation oriented : focus on regulations and stability, • Goal oriented : focus on goals, strong regulations, outside • Innovation oriented : accommodate to the environment, creativity, development

32. High Make a bet for your company Game Fellow Risk taking Work hard, play hard Process Low Fast Feedback Slow STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. 3.4. Deal & Kennedy 2 dimensions : risk taking, feedback from the market

33. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. • Game Fellow : risk lovers, high risk takers, fast feedback about the good / bad decision, eg.: PR companies • Work hard,play hard : small risk, quick feedback ( eg.: bonus at big organization ), low risk activities • Make a bet for your company : serious decisions eg.: new investments, very slow feedback • Process culture : low risk, eg.: banks, no feedback, important : how to make it

34. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. 3.5. Schein : organizational cultures according to professions • Operators : basic activities • Engineers : experts in technical processes • Executives : managers Conflicts : operators-engineers

35. STRUCTURAL AND CULTURAL CHARACTERISTICS OF THE ORGANIZATIONS – 2. 3.6. Hofstede : cultural differences • Power distance dimension : boss - subordinates • Uncertainity-Avoidance dimension : how strong are the regulations eg.: risk or security, hard work, etc. • Individualism-Collectivism dimension : I-We • Masculinity dimension : Feminine : equality -Masculine : man dominates ( US-Japan )

36. MOTIVATION – 3. • What is motivation? • How to manage subordinates to reach the company’s goals and be satisfied at the same time • Motivation is concerned with the ”why” of human behavior. Why do people do things? • The person directs his/her behavior toward important goals ( wishes, desires, etc.). Unsatisfied needs Goal directed behavior Need satisfaction

37. MOTIVATION – 3. • An unsatisfied need is a starting point in the process of motivation. This cause tension within the individual, leading the individual to engage in some kind of behavior to satisfy the need, and therby reduce the tension. • If the need couldn’t be satisfied, cause frustration, and agressive behavior, such as 1. Rational behavior : always blame it on others 2. Regration : always give up trying

38. MOTIVATION – 3. 3. Complex : always behave the same way, and never reach anything 4. Resignation : always escape from reality, looses faith in life

39. MOTIVATION – 3. 2. The content theories of motivation 2.1. Maslow’s need theory : holds that an individual strives for need satisfaction at a particular level. When needs at one level basically satisfied, they no longer serve as motivators, and the individual moves on to the next level of hierarchy. 2 5 4 3 1

40. MOTIVATION – 3. • The Five Levels • Physiological needs : primary needs, eg.: food, clothing, etc. • Safety needs : individual’s need for security or protection • Social needs : individual’s need for love, sense of belongingness • Esteem needs : the individual needs to feel important, and power and status provide a basis for this feeling • Self – Actualization needs : to fulfill one’s desire

41. MOTIVATION – 3. 2.2. Alderfer’s need theory E- Existence needs -1: are related to survival and safety R- Relatedness needs – 2: stress interpersonal and social relationships G- Growth needs – 3: are related to the individual’s desire for personal development 2.3. Herzberg’s two-factor theory When do people feel exceptionally good or bad about their job. What kind of factors link to satisfaction or dissatisfaction ?

42. MOTIVATION – 3. • Motivators – some job conditions build high levels of motivation and job satisfaction, such as : Achievement, Recognition, Advancement, The work itself, The possibility of personal growth, Responsibility

43. MOTIVATION – 3. • Maintenance factors : don’t build strong motivation, but dissatisfy employees when they are not present. Salary, Supervision, Working conditions, Interpersonal relations, Company policies, and administrations

44. Motivators No satisfaction Satisfaction Maintenance factors No dissatisfaction Dissatisfaction MOTIVATION – 3.

45. MOTIVATION – 3. 2.4. McClelland : achievement motivation theory : based on ”learned” needs 1. Affiliation Need: friendship, love, cooperation 2. Achievement Need: success, new challange 3. Need of Power: prestige, the desire to influence people 2.5. Hunt : individual goals : the person own goals direct his/her behavior at the workplace. Welfare, Comfort, Cooperation, Relationships, Power, Respect, Creativity

46. MOTIVATION – 3. 3. The process theories of motivation 3.1. Skinner – Reinforcement theory considers the use of positive or negative reinforces to motivate or create an environment of motivation. Positive : rewarding someone for certain achievements Negative : stops those consequences which the subordinates don’t like ( disciplines ).

47. MOTIVATION – 3. 3.2. Theory of Objectives-Management by Objectives ( MbO ) What are the goals and thoughts of the subordinates ? This method typically involves the establishment of objectives to be accomplished by the subordinate.

48. MOTIVATION – 3. 3.3. Vroom’s Expectancy Theory Individuals will exert work effort to achieve performance which will result in preferred rewards. The management FOCUS that follows is about rewarding workers in such a way that increased effort occurs. Individual effort to perform (tools, resources, skills): results in Level of performance (this effort will lead to reward): results in Outcomes (Instrinsic reward : eg.: recognition, or Extrinsic reward: eg.: job security )

49. LEADERSHIP – 4. • What is leadership all about? The process of influencing people to direct their efforts toward the attainment of some particular goal or goals. 2. Personal –Behavioral Theories 2.1. Kurt Lewin - 3 styles of leadership : 1. Autocratic: makes all the decisions, has the authorty, creates strict rules 2. Democratic: let the subordinates participating in the decision makin process, feedback- Lewin preferred this style 3. Laissez Faire : leave the organization alone, doesn’t play the leader role

50. LEADERSHIP – 4. 2.2. Liker : leadership styles according to the level of subordinate’s participations 1. Exploit-commanding : manager makes decision, and announces it 2. Kindly-commanding : the communication channels working on both way, but in a paternalistic way; still the manager makes the decision, but listen to the subordinates