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MANAGEMENT

MANAGEMENT. THE PROCESS OF PLANNING, ORGANIZING, LEADNIG, AND CONTROLLING THE WORK OF ORGANIZATION MEMBERS AND OF USING ALL AVAILABLE ORGANIZATIONAL RESOURCES TO REACH STATED ORGANIZATIONAL GOALS. Traditional Definition of Management.

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MANAGEMENT

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  1. MANAGEMENT THE PROCESS OF PLANNING, ORGANIZING, LEADNIG, AND CONTROLLING THE WORK OF ORGANIZATION MEMBERS AND OF USING ALL AVAILABLE ORGANIZATIONAL RESOURCES TO REACH STATED ORGANIZATIONAL GOALS. AIMA-PGCM-GM11

  2. Traditional Definition of Management Attainment of organizational goals in an effective and efficient manner through: • Planning • Organizing • Leading • Controlling and some authorities add: • Staffing AIMA-PGCM-GM11

  3. What is Management? “[Management] involves people looking beyond themselves and exercising formal authority over the activities and performance of other people.” [Mullins 1999] AIMA-PGCM-GM11

  4. FAYOL’S PRINCIPLES OF MANAGEMENT • DIVISION OF LABOR • AUTHORITY • DISCIPLINE • UNITY OF COMMAND • UNITY OF DIRECTION • SUBORDINATION OF INDIVIDUAL INTEREST • TO THE COMMON GOOD • REMUNERATION AIMA-PGCM-GM11

  5. PRINCIPLES OF MANAGEMENT • CENTRALIZATION • THE HIERARCHY • ORDER • EQUITY • STABILITY OF STAFF • INITIATIVE • EXPRIT DE CORPS. AIMA-PGCM-GM11

  6. Is Management Art or Science? • The Science of Management • The Art of Management AIMA-PGCM-GM11

  7. Four Functions Defined • Planning • Setting an organization’s goals and selecting a course of action from a set of alternatives to achieve them [Griffin 2003] • Deciding in advance what to do, how to do it, when to do it, and who is to do it • Organizing • Determining how activities and resources are grouped [Griffin 2003] • Determining the composition of work groups and the way in which work and activities are to be coordinated AIMA-PGCM-GM11

  8. Four Functions Defined • Leading • The set of processes used to get organizational members to work together to advance the interests of the organization[Griffin 2003] • Motivating and communicating with the organization’s human resources to ensure goals are attained AIMA-PGCM-GM11

  9. Four Functions Defined • Controlling • Monitoring organizational progress towards goals[Griffin 2003] • The process of comparing results and expectations and making the appropriate changes • And that fifth one: Staffing • The recruitment, selection, assignment, training, development, evaluation and compensation of staff AIMA-PGCM-GM11

  10. Management Cycle Planning Monitoring Getting Resources Implementation AIMA-PGCM-GM11

  11. Classical Management Functions • Planning • Organizing • Staffing • Directing • Coordination/Control • Reviewing • Budgeting Acronym to remember: POSDCoRB AIMA-PGCM-GM11

  12. New Management Functions: • Problem Solving • Innovation • Leadership & team building • Motivation of staff AIMA-PGCM-GM11

  13. What is a Manager? • Someone whose primary responsibility is to carry out the management process • Someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources [Griffin 2003] AIMA-PGCM-GM11

  14. The Evolution of Management Theory AIMA-PGCM-GM11

  15. The Evolution of Management Theory AIMA-PGCM-GM11 Figure 2.1 Source:

  16. Theories of Management AIMA-PGCM-GM11

  17. Scientific Management Theory • Evolution of Modern Management • Began in the industrial revolution in the late 19th century as: AIMA-PGCM-GM11

  18. Frederick Taylor Developed the specific principles of Scientific Management AIMA-PGCM-GM11

  19. Taylor’s 4 Principles ofScientific Management • Scientifically study each part of a task and develop the best method for performing the task • Carefully select workers and train them to perform the task by using the scientifically developed method AIMA-PGCM-GM11

  20. Taylor’s 4 Principles ofScientific Management • Cooperate fully with workers to ensure that they use the proper method • Divide work and responsibility so that management is responsible for planning work methods using scientific principles and workers are responsible for executing the work accordingly AIMA-PGCM-GM11

  21. Frank and Lillian Gilbreth • Refined Taylor’s work and made many improvements to the methodologies of time and motion studies. • Also studied worker-related fatigue problems caused by lighting, heating, and the design of tools and machines. AIMA-PGCM-GM11

  22. Administrative Management Theory • Administrative Management • The study of how to create an organizational structure that leads to high efficiency and effectiveness. • Max Weber • Developed the concept of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness. AIMA-PGCM-GM11

  23. Weber’s Five Principles of Bureaucracy • Authority is the power to hold people accountable for their actions. • Positions in the firm should be held based on performance, not social contacts. AIMA-PGCM-GM11

  24. Position duties are clearly identified so that people know what is expected of them. • Lines of authority should be clearly identified such that workers know who reports to who. • Rules, standard operating procedures (SOPs), and norms guide the firm’s operations. AIMA-PGCM-GM11

  25. Behavioural Theories Emphasise the importance of attempting to understand the various factors that affect human behaviour in organisations. AIMA-PGCM-GM11

  26. Behavioral Approach • Behavioral Approach theorists believe that effectiveness is attained through: • decreased control • greater autonomy for people • encouragement of innovation • creativity AIMA-PGCM-GM11

  27. Behavioral Approach Examples • Ad agencies • Design firms • Most dotcoms • Software development AIMA-PGCM-GM11

  28. The Philosophy of Industrial Humanism • Elton Mayo • Believed emotional factors were more important determinants of productive efficiency than were physical and logical factors. AIMA-PGCM-GM11

  29. Douglas McGregor • Developed Theory X and Theory Y • Theory X: management’s traditionally negative view of employees as unmotivated and unwilling workers. • Theory Y: the positive view of employees as energetic, creative, and willing workers. AIMA-PGCM-GM11

  30. Management Science Theory • An approach to management that uses rigorous quantitative techniques to maximize the use of organizational resources. • Quantitative management—utilizes linear programming, modeling, simulation systems. AIMA-PGCM-GM11

  31. Total Quality Management (TQM)—focuses on improving quality throughout an organization. • Operations management—techniques to analyze all aspects of the production system. • Management Information Systems (MIS)—provides information about the organization. AIMA-PGCM-GM11

  32. Management InformationSystems Focuses on designing and implementing computer-based information systems for use by management. These systems turn raw data into information that is useful to various levels of management. AIMA-PGCM-GM11

  33. Systems Theory Based on the idea that organisations can be visualised as systems System A set of interrelated parts that operate as a whole in pursuit of common goals AIMA-PGCM-GM11

  34. The Systems Approach • Chester I. Barnard’s Early Systems Perspective • Wrote Functions of the Executive. • Characterized all organizations as cooperative systems. • Defined principle elements in an organization as • willingness to serve. • common purpose. • communication. • Strong advocate of business ethics. AIMA-PGCM-GM11

  35. Systems Approach Examples • Military & government agencies • Traditional major industrial production (automobiles, etc.) • Some service firms (insurance,banking) AIMA-PGCM-GM11

  36. Contingency Theory A viewpoint that argues that appropriate managerial action depends on the circumstances of the situation. In other words ……….. there is no single right way to manage AIMA-PGCM-GM11

  37. Contingency Theory of Organizational Design AIMA-PGCM-GM11 Figure 2.5 Source:

  38. Management Levels Defined • First line Managers • Middle Managers • Top (or Senior) Managers AIMA-PGCM-GM11

  39. Horizontal Differences • Functional managers • Responsible for departments that perform a single functional task • General managers • Responsible for several departments that perform different functions AIMA-PGCM-GM11

  40. Managers by Area • Marketing Managers • Financial Managers • Operations Managers • Human Resource Managers • Administrative Managers • Other Kinds of Managers [Griffin 2003] AIMA-PGCM-GM11

  41. Management Skills required by management levels Top Managers Middle Managers First-Line Managers Non-managers (Personnel) Conceptual Skills “People” Skills Technical Skills AIMA-PGCM-GM11

  42. SOCIAL RESPONSIBILITY AND ETHICS AIMA-PGCM-GM11

  43. CORPORATE SOCIAL RESPONSIBILITY WHAT AN ORGANIZATION DOES TO INFLUENCE THE SOCIETY IN WHICH IT EXISTS, SUCH AS THROUGH VOLUNTEER ASSISTANCE PROGRAMS. AIMA-PGCM-GM11

  44. ETHICS THE STUDY OF RIGHTS AND OF WHO IS– OR SHOULD BE– BENEFITED OR HARMED BY AN ACTION. AIMA-PGCM-GM11

  45. Provide clear guidelines for ethical behavior. • Teach ethical guidelines and their importance. • Where it is likely that the acts of a managers can be questioned, avoid such areas. In other words, don’t get into problem areas that invite criticism. AIMA-PGCM-GM11

  46. Appoint an outside agency (that reports directly to the Board of Directors) to audit the ethical behavior of managers. Such controls facilitate a check on illegal or unethical deeds. Conduct frequent and surprise audits. • Punish trespassers in a meaningful way, and make it public so that it may deter others. • Emphasize regularly that loyalty to the company does not excuse improper behavior or actions. AIMA-PGCM-GM11

  47. CORPORATE SOCIAL RESPONSIVENESS A THEORY OF SOCIAL RESONSIBILITY THAT FOCUSES ON HOW COMPANIES RESPOND TO ISSUES, RATHER THAN TRYING TO DETERMINE THEIR ULTIMATE SOCIAL RESPONSIBILITY. CORPORATE SOCIAL PERFORMANCE A SINGLE THEORY OF CORPORATE SOCIAL ACTION ENCOMPASSING SOCIAL PRINCIPLES, PROCESSES, AND POLICIES. AIMA-PGCM-GM11

  48. THE FOUR LEVELS OF ETHICAL QUESTIONS LEVEL 4 THE INDIVIDUAL LEVEL 3 INTERNAL POLICY LEVEL 2 STAKEHOLDERS LEVEL 1 SOCIETY AIMA-PGCM-GM11

  49. SOCIAL RESPONSIBILITY OF MANAGERS • Responsibility towards shareholders • Responsibility towards consumers • Responsibility towards employees AIMA-PGCM-GM11

  50. Responsibility towards creditors • Responsibility towards the government • Responsibility towards suppliers • Responsibility towards competitors • Responsibility towards general public AIMA-PGCM-GM11

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