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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