Invented high speed steel cutting tools and spent most of his life as a consulting engineer Acknowledged as father

of scientific management Famous work entitled The Principles of Scientific management published in 1911

Replacing rules of thumb with science Obtaining harmony in group action Achieving cooperation of human beings, rather than individualism Working for maximum output Developing all workers to the fullest

Father of modern management theory 14 Principles: Authority and responsibility both are related Unity of command receive orders from one superiors only Scalar chain Chain of superiors from highest to the lowest ranks Esprit de corps Union is strength

Hawthrone studies Illumination was either increased or decreased for a test group productivity improved But other factors were responsible for it Factors such as morale, satisfactory interrelationships between the members of a work group Phenomenon - Hawthrone effect

Peter F Drucker - written general management topics Keith Davis informal organisation W. Edward Demings and Joseph M Juran Quality of Japanese products Laurence Peter People get promoted to a level where they are incompetent and no further promotion is possible

William Ouchi best selling book Theory Z Thomas Peters and Robert waterman characteristics of excellent companies

1. Empirical Approach Studies experience through cases Identifies successes and failures

Consisted of observations of five chief executives On the basis of this study ten managerial role were identified Interpersonal, informational and decision roles

Managerial practice depends on circumstances Cause and effect depends on contingency i.e situation

Management is seen as mathematical processes Concepts, symbols and models Logical process expressed in symbols

Focus on the making of decisions, persons or group making decisions Entire area of business activity, nature of organisation structure, information decision, group decision making, value of decision makers, individual decision making and process of decision making

Fundamental rethinking process analysis, radical redesign, dramatic results Operations: Input transformation Output

Broad applicability Systems have boundaries but they also interact with external environment Interrelatedness of planning, organising, and controlling in an organisation as well as subsystems

Technical system has great effect on social system Focus on production, office operations and other areas with close relationships

Concerned with both interpersonal and group behavioural aspects leading to a system of cooperation

Emphasis on behaviour of people in groups Study of group behviour patterns

Focus on interpersonal behaviour, human relations, leadership and motivation

The seven SS are: Strategy Structure Systems Style Staff Shared values Skills

Dependable satisfying products and services Attention to teamwork Quality education Customer needs

Draw knowledge from approaches above Integrates the approaches with science and theory

Planning involves selecting missions and objectives and the actions to achieve them; it requires decision making which is, choosing from the alternatives available the future courses of action

Plans provide a rational approach to achieve the preselected objectives

Its contribution to purpose and objectives Its primacy among the managers tasks Its pervasiveness The efficiency of resulting plans

1. Purposes or missions Identifies the basic function or task of an enterprise Meaningful purpose Ex: Business Production and distribution of goods and services University Teaching and research

Mission Social purpose of producing and distributing goods and services Ex: Hall mark The social expression business

Ends toward which activity is aimed Goals contribute to the attainment of enterprise objective Ex: Objective to make profit by producing a home entertainment equipment Goals Produce required number of television design, quality, cost

Determination of the long term objectives of an enterprise Adoption of courses of action Allocation of necessary resources Ex: Decide what kind of business Is it transportation or a paper manufacturer Purpose of strategies furnish a framework for guiding, thinking and action

General statement/guide or channel thinking in decision making Define an area within which decision is to be made Helps to decide issues before they become problems

Exist on all levels of organisation Range from major to minor policies Ex: University trained engineers Setting competitive prices Making policies consistent is difficult due to: a. seldom defined in writing b. Exact interpretation are too little c. Not easy to control policy

Are plans that establish a required method of handling future activities Guides to action Ex: Procedure for handling orders involve sales department, finance, accounting, production department

POLICY

PROCEDURES

To grant employees vacations

To implement policyprovide for scheduling vacations to avoid disruption of work

Specific required actions or non actions, allowing no discretion Procedure may be looked upon as a sequence of rules Rule may not be a part of procedure Ex: No smoking rule Handling of orders - Procedure Rule allows no deviation

Are a complex of goals, policies, procedures task assignments, steps to be taken and other elements necessary to carry out a given course of action Ex: 5 year program to improve quality standard Morale of workers in manufacturing department

Ex: Investing in new jets involve million of dollars for purchase of aircraft, spare parts

Is a statement of expected results expressed in numerical terms Expressed in financial terms in labour hours, units of product, machine hours Capital expenditure, cash flow To make in advance for a week or 5 years Necessary for control

Types: Variable/flexible budget according to level of output Program budgets Agency develops detailed programs Zero base budget Combination of both As programs started from Base Zero

Being aware of opportunity

Comparing alternatives

Setting objectives or goals

Choosing an alternative

Considering planning premises

Formulating supporting plans

Identifying alternatives

Numberizing plans by making budgets

1. Being aware of opportunities Aware of opportunities within the organisation and external environment Preliminary look at future opportunities Know strength and weakness What problems to solve, why? what to gain Setting objectives depends on awareness

Objectives for entire enterprise For each subordinate work unit For long term/short term Specify end results what is to be done Give direction to the major plans Objectives form a hierarchy Managers should contribute their ideas

Assumptions about the environment in which the plan is to be carried out Forecasting in premising Kinds of markets? Volume of sales, prices, products, costs, wage rates, tax rate, technical development, dividend, expansion

Examine alternative courses of action Reduce the number of alternatives analyse Mathematical techniques and computer used Discover fruitful possibilities

Examine strong and weak points Some suit the companys long range objectives So many variables and limitations to be considered Evaluation is difficult with simple problems

Real point of decision making Decide to follow several courses rather than one best course

Required to support the basic plan

Numberize the plans and convert them into budgets Represent the sum total of income and expenses Each department have its own budgets

Set important standards against which planning progress can be measured Ex: Apply the planning steps in preparing for college

Objectives were defined as the important ends toward which organisational and individual activities are directed Verifiable objectives At the end of the period it should be possible to determine whether or not the objective has been achieved

Objectives form a hierarchy as well as network Multiple goals that are sometimes incompatible and may lead to conflicts within the organisation, within the group and even within individuals

1. Purpose of the society 2. Mission of the business 3. Overall objectives 4. More specific objectives (KRA key Result areas) 5. Division objectives 6.Department and unit objectives 7.Individual objectives

Objectives must be verifiable Verifiable to achieve a return on investment of 12% at the end of the current year Non verifiable to make a reasonable profit Quantitative/qualitative objectives Not be too long Present a challenge, indicate priorities, promote personal and professional growth and development

Refer to determination of purpose Allocation of resources

Strategies and policies are closely related, framework for plans, basis of operational plans, affect all areas of managing

1. Inputs goal inputs 2. Enterprise profile determine where the company is?, Where is should go? 3. Orientation of Top managers Enterprise profile shaped by people Give orientation Examine their values, preferences, attitudes

4. purpose and major objectives End points activities directed 5. external environment Present and future environment assessed Environment scanned economic, social, political, legal, geographic factors

6. Internal environment SWOT Analysis Audit resources, production, marketing, procurement, human and financial resources 7. Development of alternative strategies Specialise or concentrate Ex: Korean Hyundai company produced lower priced cars, diversify and extend operation

8. Evaluation and choice of strategies Consider risks involved, timing, reaction of competitors Ex: IBM reduced the price of PCs in reaction to apples computer

9. medium and short range planning, implementation and control Implementation of the plan during all phases of the process, control monitor the performance Feedback

10. Consistency and contingency Testing for consistency, preparing for contingency plans, key aspect of strategic planning