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التعليم المفتوح كلية التجارة المستوى الأول – فصل دراسى أول لغة إنجليزية فى المجالات التجارية. Part two Management Dr. Mamdouh Refaiy Associate Professor Business Administration Department Faculty of Commerce, Ain Shams University. Part two: Management. Dr.Mamdouh Refaiy. Chapter Eight.

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التعليم المفتوح

كلية التجارة

المستوى الأول – فصل دراسى أول

لغة إنجليزية فى المجالات التجارية

Dr Mamdouh Refaiy


Part two


Dr. Mamdouh Refaiy

Associate Professor

Business Administration Department

Faculty of Commerce, Ain Shams University

Dr Mamdouh Refaiy

part two management

Part two: Management

Dr.Mamdouh Refaiy

chapter eight

Chapter Eight

Introduction to Management

organizations and the society
Organizations and the Society:

** What is an organization?

  • An organization is a collection of people working together in a division of labor to achieve a common purpose.

** Organizations as systems:

  • Organizations are considered to be a group of open systems. An open system is a system that

Dr Mamdouh Refaiy

links between the environment and the organization. This system is what transforms the inputs to outputs.

Dr Mamdouh Refaiy


The environment Provides

The organization creates

The environment consumes

Resources Inputs







Turn resources into inputs

Transformation Process

Product Outputs


Goods and or services

Consumer feedback

Figure (1): Organizations as open systems.

Dr Mamdouh Refaiy

** Productivity and organizational performance:

Productivity is the quantity and quality of work performance, with resource utilization taken into account. It can be measured at the individual, group, or organization level.

  • Productivity may be expressed as success in two dimensions of organizational performance: effectiveness and efficiency.

Dr Mamdouh Refaiy


Productivity = ـــــــــــــــــــــــــــــــــــــ


  • Performance effectiveness is a measure of task output or goal accomplishment.
  • Performance efficiency is a measure of resource cost associated with goal accomplishment.

In other words, performance efficiency is used as a measure to assess whether or not the goal of the organization was attained withreasonable resource cost.

Dr Mamdouh Refaiy

This measure is very important because an organization could have high performance effectiveness, but it has attained that with high resource costs. That means that the organization has used a lot of resources, like money, people, materials, etc. to attain its goal. That is not desired. This measure compares that outputs produced to inputs consumed.

Dr Mamdouh Refaiy

managers and the new workplace
Managers and the New Workplace:
  • A manager is a person who is responsible for the work performance of one or more than one person.
  • Management is the process of planning, organizing, leading, and controlling the use of resources to accomplish performance goals.

** Types of Managers:

Dr Mamdouh Refaiy

Top managers, such as the CEO (Chief Executive Officer), main job is to make sure those major performance objectives and goals are established and accomplished in accordance with the organization\'s main purpose.
  • Middle managers should be able to develop and implement action plans consistent with higher level objectives. Middle managers are responsible to implement the orders and plans of the top managers.

Dr Mamdouh Refaiy

Supervisory managers or first line managers. The job is the first job in any management system. These managers are in charge of an example a technical specialist.
  • Line managers are responsible for work activities that make a direct contribution to the organization\'s output of finished goods and services.
  • Staff managers are responsible for giving support to linemanagers. Staffmanagers use

Dr Mamdouh Refaiy

special technical expertise to support and advice the efforts of the line managers.
  • Functional managers are responsible for a single area of the organizations activity. Like managers of the finance department for example.
  • General Managers are responsible for more complex units that include many functional areas.

Dr Mamdouh Refaiy

The Management Process :

The management process involves the four basic functions: planning, organizing, leading and controlling.

Dr Mamdouh Refaiy

** Managerial skills:

There are three essential skills that managers need to have. They are classified into three categories as follows: technical, human, and conceptual skills.

  • Technical skill is the ability to use a special expertise to perform particular tasks. For example, accountants and engineers possess technical skills these are necessary for their jobs to be done.
  • Human skill is the ability to work well in cooperation with other employees. This human skill

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varied from one manager to the other, and it is based on their interpersonal relationships with their peers and employees.

C. Conceptual skill is the ability to break down problems into smaller parts, to see the relations between the parts, and to recognize the implications of any one problem for others.

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Lower level


Middle level


Top level


  • Conceptual Skills–The ability to think analytically and achieve integrative problem solving
  • Human Skills – The ability to work well in cooperation with other persons

Technical Skills– The ability to apply expertise and perform a special task with proficiency

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chapter ninth

Chapter Ninth

Functions to Management


The management process involves four basic functions. Those are as follows: planning, organizing, leading, and controlling.

Dr Mamdouh Refaiy



Setting performance objectives and deciding how to achieve them


Measuring performance and taking action to ensure desired results


Arranging tasks, people, and other resources to accomplish the work


The process of making the employees interested to work hard




Four functions of management.

Dr Mamdouh Refaiy

Planning Function:

Planning is the process of setting performance objectives and goals, and determining what actions should be taken to accomplish them. It is a plan that the organization should follow in order to achieve its desired final goals.

a) Steps of planning:

Step 1:Defining the objectives of the organization:

Managers should identify the desired outcomes and results in every specific ways.

Dr Mamdouh Refaiy

Step 2:Determining where does the organization stand in relation to its objectives:

The organization should be able to evaluate its current accomplishments relative to the desired goals and outcomes.

Step 3: Developing action regarding future conditions:

Organizations should try to anticipate and foresee the future events that might happen that could either help them or harm them in achieving its objectives.

Dr Mamdouh Refaiy

Step 4: Analyzing possible action alternatives, and choosing the best one:

Organizations usually list and choose among the possible actions that might be taken in case any of the future expected situations take place. The managers choose the alternative or scenario that most likely accomplishes the desired objectives of the organization.

Step 5: Implementing the alternative and evaluating the results:

Dr Mamdouh Refaiy

The managers then implement the chosen alternative. They follow up and evaluate that alternative that has been implemented to see if their choice was a successful one or not.

b) Types of plans in organizations:

Plans are usually in three forms. The short range plans cover 1 year or less, and the intermediate range plans cover 1 to 2 years, and the long range plans cover 3 or more years into the future of the organization.

Dr Mamdouh Refaiy

Organizing Function:

Organizing is the process of assigning tasks, jobs, allocating resources, and arranging the coordinated activities of the employees to implement the plans.

Through organizing, managers turn the plan that is set into actions by defining jobs, assigning employees, and supporting them with technology and resources in order for those employees to do their jobs that they were assigned to.

Dr Mamdouh Refaiy

Organization Structure:

The organization structure is the system of tasks, workflows, reporting relationships, and communication channels that link together the work of the employees and groups in the organization. They are the formal and informal organizational structures.

  • Formal organizational structure:

It is the official structure of the organization which is written,documented, and drawn as chartsin the

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books of the organization.

(B) Informal organizational structure:

Behind every formal organizational structure lies an informal one. Informal organizational structure is the set of unofficial relationships among an organization\'s employees, these set of organizational relationships are made up by the employees of the organization as a result of their daily activities with each other.

Dr Mamdouh Refaiy

Traditional organization structures:
  • Functional structures:

They are groups of employees with similar skills who perform similar tasks.

(2) Divisional structures:

This structure groups together the employees who work on the same product or process, serve similar customers, and are located in the same area or geographical region.

Dr Mamdouh Refaiy

(3) Matrix structure:

This structure combines both the functional and divisional approaches to emphasize project or program team.

  • Leading Function:

Leading is the process of making the employees interested and enthusiastic to work hard and direct their efforts to fulfill the organizational plans and accomplish its objectives. Through leading,

Dr Mamdouh Refaiy

managers build certain levels of commitment to achieve the organizational goals through encouraging its employees to work hard at their jobs; these will eventually lead to achieve the organizational goals and objectives.
  • Controlling Function:

Controlling is the process of measuring work performance, comparing results to the desired objectives, and taking corrective actions in order to compile the desired objectives.

Dr Mamdouh Refaiy

Steps in the control process:

The management control process consists of four steps in which organizations typically follow in order to carry on the control process.

This are (1) establish objectives and standards; (2) measure actual performance; (3) compare results with objectives and standards; and (4) take corrective action as needed.

Dr Mamdouh Refaiy


Step 1:



Objective and Standards

The Control


Step 2:





Step 4:





Step 3:


Compare actualperformance

With Objective and Standards

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chapter ten

Chapter Ten


The nature of Leadership:

Leadership is the process of inspiring others to work in order to accomplish important tasks. Those tasks are usually the desired goals and objectives of the organization as a whole.

Leadership builds the commitment and enthusiasm of the employees and ties it with the desired goals and objectives of the organization.

** Leadership and Vision:

Dr Mamdouh Refaiy

Vision is a clear view of things that might happen in the future.

There are five principles of a visionary leader:

  • Visionary leaders need to challenge the process.
  • Visionary leaders need to be enthusiastic.
  • Visionary leaders need to help others to act and to be team\'s players.
  • Visionary leaders need to set the example
  • Visionary leaders need to celebrate the

Dr Mamdouh Refaiy

achievements that have been achieved by them or by other employees.

** Leadership and Power:

Leadership and power are closely related and tied to each other.

Power is the ability to get some one else to do something you want them to do.

There are two types of power:

Dr Mamdouh Refaiy

Position power : is stemmed from the power of the position that the leader occupies, There are three bases for the position power .They are as follows :
  • Reward power :
  • Coercive power :
  • Legitimate power :
  • Person Power: is stemmed from the person of the leader himself.

There are two bases of person power they are as follows:

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Expert power :
  • Referent power :

** Leadership and Empowerment:

Empowerment is the process in which managers and leaders enable their employees to gain power and achieve influence within the organization; Effective leaders empower their employees to make them feel good about themselves and their work.

Dr Mamdouh Refaiy

chapter eleven

Chapter Eleven

Decision Making

Definition and importance
  • A decision is a choice made from available alternatives.

Programmed decisions: They involve situation that have occurred often enough to enable decision rules to be developed and applied in the future.

Every decision situation can be organized on a scale according to the availability of information and possibility of failure. The four positions on the

Dr Mamdouh Refaiy

scale are:
  • Certainty few decisions are certain in the real world.
  • Risk means that a decision has clear-cut goals and good information available, but the future outcomes associated with each alternative are subject to chance.
  • Uncertainty means that :
  • Managers Know which goals they wish to achieve
  • But information about alternatives and future events is incomplete.

Dr Mamdouh Refaiy

Ambiguity means that :
  • The goals to be achieved or the problem to be solved is unclear.
  • Alternatives are difficult to define.
  • And information about outcomes is unavailable.

(B) Steps of decision-making

    • Recognition of decision requirement.
    • Diagnosis and analysis of causes.
    • Development of alternatives.

Dr Mamdouh Refaiy

Selection of desired alternative.
  • Implementation of chosen alternative.
  • Evaluation and feedback.

(C) Participation in decision-making:

      • Individual managers often make decisions, but decision makers in the business world also operate as part of a group. Decisions are also made through a committee.
      • There are different levels of subordinate participationin decision-making ranging

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from highly autocratic to highly democratic.

Advantages and disadvantages of participative decision-making:

      • Advantages:
  • Broader perspective
  • More alternatives can be evaluated
  • Reduces uncertainty about alternatives
  • Provide member support for the decision

Dr Mamdouh Refaiy

Disadvantages :
  • Time consuming.
  • Wasted resources if used for programmed decisions.
  • Compromise decisions may satisfy no one.
  • Group thinking.
  • No focus for decision responsibility.

Dr Mamdouh Refaiy

chapter thirteen

Chapter Thirteen

Teamwork in Organizations


A team is a unit of two or more people who interact and coordinate their work to accomplish a specific goal, this definition has three components:

  • Two or more people are required
  • People in a team have regular interaction.
  • Members of a team share performance goal.

** Work team effectiveness is based on two outcomes:

Dr Mamdouh Refaiy

Satisfaction: the team\'s ability to meet the personal needs of its members to maintain their membership and commitment.
  • Productive output: The quality and quantity of task outputs as defined by team goals.

(B) Types of teams

Teams can be classified as those created as part of the organization\'s formal structure and those created to increase employee participation.

Dr Mamdouh Refaiy

Formal teams:They are created by the organization as part of the formal organization structure.
  • Vertical team: Composed of a manager and subordinates in the formal chain of Command. It is also called a functional team
  • Horizontal team: Composed of employees from about the same level but from different areas of expertise.
  • The most common horizontal teams are task forces and committees.

Dr Mamdouh Refaiy

A task force is a group of employees from different departments formed to deal with a specific task and existing only until the task is completed.
  • A Committee is generally long-lived and may be a permanent part of the organization\'s structure.

Committees are typically formed to deal with takes that recur regularly.

  • Task forces and committees offer several advantages to their members:

Dr Mamdouh Refaiy

Exchange information
  • Coordinate the organizational units they represent.
  • Develop new ideas and solutions for problems.
  • Assist in developing new practices and policies
  • Self –directed teams:Consist of five to twenty multi skilled workers who rotate jobs and produce an entire product or service.
  • They combined skills are sufficient to perform a major organizational task.

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The team has the resources to perform the complete task.
  • The team is empowered with decision-making authority to complete the task.

(C) Work team characteristic

1. Size:Ideal size of work teams is about seven, although variations of five to twelve seem to work best.

Dr Mamdouh Refaiy

Small teams( two to four members ) tend to:
  • Show more agreement, ask more questions, and exchange more opinions.
  • Report more satisfaction.
  • Large teams( twelve or more members ) have the following characteristics :
  • Tend to have more disagreements.
  • Conflicts more.
  • Fewer opportunities for members to participate.

Dr Mamdouh Refaiy

2. Members Roles:
  • Task-specialist role: Employees who play the task specialist role help the team reach its goal and often have the following behaviors:
  • Propose new solutions to team problems
  • Offer opinions and feedback
  • Socioemotional role:Employees who adopt this role support team members\' needs and tend to be the following:
  • Encourage others.

Dr Mamdouh Refaiy

Harmonize and reconcile conflicts.

(D) Team Cohesiveness and Team Norms

Team cohesiveness concerns the extent to which members are attracted to the team and motivated to remain in the team.

High cohesiveness is normally considered a positive feature of teams.

Determinants of team cohesiveness:

  • Team interaction:

Dr Mamdouh Refaiy

Shared goals:
  • Personal attraction:
  • Presence of competition:
  • Team success:

Consequences of team-cohesiveness falls into two categories: morale and productivity.

  • Morale is higher in cohesive teams.
  • In a cohesive team performance tends to more uniform.

Dr Mamdouh Refaiy

Team Norms:A team norm is a standard of conduct that is shared by team members and guides their behavior.
  • Norms help in:
    • Identify key values
    • Clarify role expectations
    • Facilitate team survival

(E) Managing team conflict

Conflict occurs when one part attempts to block the

Dr Mamdouh Refaiy

intentions or goals of another. Of all the skills required for effective team management, none is more important than handling the conflicts that rise among team members.

Causes of conflict:

  • Scarce resources
  • Ambiguity about responsibilities
  • Communication breakdown
  • Personality clashes
  • Power and status differences
  • Goal differences

Dr Mamdouh Refaiy

Styles to handle conflict:
    • Competitive style :
    • Avoiding style :
    • Compromising style :
    • Accommodating style :
    • Collaborating:
    • Techniques for solving conflicts:
    • Subordinate goals:
    • Bargaining/ negotiation:

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  • Providing well-defined tasks:
  • Facilitating communications:
  • Exchange information:

(F) Benefits and costs of teams

Potential benefits of teams:

Teams come closest to achieving their full potential when they enhance individual productivity through the following:

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Level of effort :
    • Effort is increases primarily from workers who like the idea of using their brains as well as their bodies on the job.
    • Social facilitation is the tendency for the presence of others to influence an individual\'s motivation and performance.
  • Satisfaction of members:
  • Workers need for belongingness and affiliation can be met by working in teams.

Dr Mamdouh Refaiy

Workers in a healthy team cope better with stress and enjoy their jobs.
  • Expanded job knowledge and skill:
  • Multi-skilled employees learn all of the jobs that the team performs.
  • Teams gain the intellectual resources of all members who offer alternative points of view for team decisions.
  • Organizational flexibility:

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Results when team members are able to exchange jobs.
  • The organization is able to be responsive to rapidly changing customer needs.
  • Potential costs of teams:

When managers consider using teams, they must assess costs or liabilities associated with teamwork. When teams do not work well together, the cost can be significant. The major reasons for teams not being successful are:

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Power realignment :
  • Free riding:
  • Coordination cost :

Dr Mamdouh Refaiy