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Management
Is it a Management?
Is it a Management?
Management
Introduction to Management
Management is the process of planning, organizing, leading, and controlling the work of organization members and of using all available organizational resources to reach stated organizational goals.
What is an organization?
Two or more people who work together in a structured way to achieve a specific goal or set of goals
What is Goal?
The purpose that an organization strives to achieve; organizations often have more than one goal; goals are fundamental elements of organization
Who is a Manager?
Person responsible for directing the efforts aimed at helping organizations achieve their goals.
What is a process?
A process is a systematic way of doing things. Management is the process of planning, organizing, leading, and controlling the efforts of organization members and of using all other organizational resources to achieve stated organizational goals.
Planning
The process of establishing goals and a suitable course of action for achieving those goals. 1. Organization obtain and commits the resources 2. Members of the organization carry on activities 3. Progress is monitored to take corrective action
Organizing
Organizing is the process of arranging and allocating work, authority, and resources among an organizations members so they can achieve the organizations goals.
a. Structured assembly line b. Teams
Leading
Leading is the process of directing and influencing the task related activities of group members or an entire organization.
i. Directing ii. Influencing iii. Motivating
Controlling
Controlling is the process of ensuring that actual activities conform to planned activities. Four main elements
1. Establishing standards of performance. 2. Measuring current performance. 3. Comparing current performance with established standards. 4. Taking corrective actions if needed.
Demings 14 Principles
Dr. William Edwards Deming is known as the father of the Japanese post-war industrial revival and was regarded by many as the leading quality guru in the United States. Deming created 14 Principles for Management that summarized his business philosophy. The principles became a basis for transformation of industry. The 14 principles apply anywhere, from small organizations to large ones, to the service industry as well as to manufacturing. They apply to any division within a company.
Demings 14 Principles
1. Create Constancy of Purpose Towards Improvement 2. Adopt the New Philosophy 3. Cease Dependence on Inspection 4. Move Towards a Single Supplier for any One Item 5. Improve Constantly and Forever 6. Institute Training
Demings 14 Principles
7. Institute Leadership 8. Drive Out Fear 9. Break Down Barriers Between Departments 10. Eliminate Slogans 11. Eliminate Management by Objectives 12. Remove Barriers to Pride of Workmanship 13. Institute Education and Selfimprovement 14. The Transformation is Everyones Job
Management Levels
1. First line managers managers who are responsible for the work of operating employees only and do not supervise other managers. 2. Middle Managers They are responsible for other managers and sometimes for some operating employees; they also report to senior managers.
Management Levels
3.
Top managers Managers responsible for the overall management of the organization; they establish operating policies and guide the organizations interaction with its environment.
Types of Managers
1. Functional Managers A manager responsible for just one organizational activity such as finance or human resources management. 2. General Managers The individual responsible for all functional activities, such as production, sales, marketing, and finance, for an organization such as a company or subsidiary.
Ethics in Management
The study of who is-and should bebenefitted or harmed by an action is called ethics. It deals with both conflict and opportunity in human relationships Ethics provides the glue that holds our relationship, and the larger society together.
What is a Theory?
Theory is a coherent group of assumptions put forth to explain the relationship between two or more observable facts and to provide a sound basis for predicting future events.
Approaches to Management
Ancient Civilisation (PreScientific) Sumerian, Egyptian, Roman, Adam Smith Classical Approach (Scientific) Taylor, Gantt, the Gilbreths, Weber, Fayol Behavioural Approach Maslow, Munterberg, Mayo, Follett, McGregor,
Bernard, Owen Quantitative/Management Science Approach Statistical, mathematical, optimization Contemporary Approach Contingency/Situational Theorists Systems Theorists
Management Theories
Scientific Management
The process of approaching various aspects of organizations in a scientific manner using scientific tools such as research, management, and analysis.
Industrial Age Migration to cities Reliance on electricity and gasoline Changes both on the farm and in factories Autos, airplanes, movies, and radio became common
Frederick Taylor
Efficiency Expert in U.S. Steel Industry Invented New Tool Designs and Handling Methods Designed Stop-Watch Task Timing Created Piece-Rate Payment Scheme Developed Industrial Departments
The development of a true science of management The scientific selection of workers The scientific education and development of worker Intimate, friendly cooperation between management and labor
Studied most efficient worker Used stop-watch timing to measure each production step Eliminated any unnecessary movements Designed standardized instruction cards for employees Employees paid for meeting the established rate of production
Taylor based his management system on production line time studies. instead of relying on traditional work methods, he analyzed and timed steel workers movements on a series of jobs. Using time study he broke each job down into its components and designed the quickest and best method of performing each components. In this way he established.
As a result more workers joined unions and thus reinforced a pattern of suspicious and mistrust that shaded labor relations for decades.
The Gantt chart: Still accepted as an important management tool today, it provides a graphic schedule for the planning and controlling of work, and recording progress towards stages of a project. The chart has a modern variation, Program Evaluation and Review Technique (PERT).
The Gilbreths
Frank and Lillian Gilbreth made contribution To scientific management movement as Husband and Wife Gilbreths Main Goals in Working with Companies: Increase efficiency by removing unnecessary movements(using motion picture cameras) Reduce fatigue for employees Help the workers reach their full potential
Therbligs
System developed to analyze the basic movements of the body. Simo chart (Simultaneous motion chart)
HENRI FAYOL
Henri Fayol (1841-1925) is generally hailed as the founder of the classical management school Not because he was the first to investigate managerial behaviour but because he was the first to systematize it.
3. DISCIPLINE Members in an organization need to respect the rules and agreements that govern the organization. Disciplined leadership at all levels of the organization, fair agreements and judiciously enforced penalties for infractions.
4. UNITY OF COMMAND Each employee must receive instruction from one person, Fayol believed that if employee reported more than one manager conflict in instruction and confusion in of authority would result.
5. UNITY OF DIRECTION Those operations with in the same organization that have the same objective should be directed by only one manager using one plan. For example the personnel department in the company should not have two directors each with a different hiring policy.
6. SUBORDINATION OF INDIVIDUAL INTERESTS TO GENERAL INTERET In any undertaking the interest of employees should not take the precedence over the interest of the organization as a whole. 7. REMUNERATION: Compensation of work done should be common to both employees and employers.
8. CENTRALIZATION: Decreasing the role of subordinates in decision making is centralization, increasing their role is decentralization. Fayol believed that the managers should retain the final responsibility. But should at the same time give their subordinate enough authority to do the jobs properly. The problem is finding the proper degree of centralization in each case.
9. SCALAR CHAIN The line of authority in an organization should represent in the neat box and the line of chart runs in order of rank from top management and lowest levels of enterprise. 10. ORDER: Materials and the order should be in the right place at the right time. People in particular should be in job or position they are most suited to.
11. EQUITY:
13. INITIATIVE: Subordinate should be given the freedom to conceive and carry out their plans even though some mistake may result. 14. ESPRIT DE CORPS: Promoting team spirit will give the organization a sense of unity. To Fayol even the small factor helps to develop the spirit. He suggested for example the use of verbal communication instead of formal, written communication whenever possible
Max Weber
Max Weber a German Sociologist developed a theory of bureaucratic management that stressed the need for a strictly defined hierarchy governed by clearly defined regulations and lines of authority. He considered the ideal organization to a bureaucracy whose activities and objectives were rationally thought out and whose division of labor were explicitly spelled out
Mary Parker Follett worked in the area of Human relations and Organizational structures. She proposed a new thinking in the management no one could become a whole person except as a member of a group; human beings grew through their relationships with others in organisations
She called the management the art of getting things done through people She noted that the artificial distinction between managers and subordinates obscured the natural relationship. She strongly believed in the power of group, where individuals could combine their diverse talents into something bigger. Her approach of management was holistic which involved the influence of politics economics, and biology on groups and people in general.
Follett paved the way for management theory to include a broader set of relationships, some inside the organization and some across the organizations borders.
Chester I. Barnard
According to Barnard: people come together in formal organizations to achieve ends they cannot accomplish working alone. Individual and organizational purpose could be kept in balance if managers understood an employees zone of indifference. (Inclinations conditioning individuals to accept orders that fall within a familiar range of responsibility or activity. )
Executives have a duty to instill a sense of moral purpose in their employees. the organization is cooperative enterprise of individuals working together as groups
Researchers divided the employees into test groups, who were subjected to deliberate changes in lighting, and control groups whose lighting remained constant throughout the experiments.
The results of the experiments were ambiguous. When the test groups lighting was improved, productivity tended to increase. But when lighting conditions were made worse, there was also a tendency for productivity to increase in the test group. To compound this mystery, the control groups output also rose over the course of studies, even though it experienced no changes in illumination. Something besides lighting was influencing the workers performance.
THE HAWTHORNE EXPERIMENTS Relay Assembly Test Room A small group of female workers was placed in a separate room and a number of variables were altered. A series of experiments in which the output of the workers was observed to increase as a result of improved treatment by their managers. Named for their site, at the Western Electric Company plant in Hawthorne, Illinois, Chicago.
What can a manager do to improve productivity? Purpose of study was to examine what effect monotony and fatigue had on productivity and how to control them with variables such as rest breaks, work hours, temperature, and humidity. Under normal conditions, the work week was 48 hours, including Saturdays. There were no rest pauses.
Experiment One The workers were put on piece-work for eight weeks. Output went up. Experiment Two The workers were given two rest pauses, five minutes each, in the morning and afternoon for a period of five weeks. Output went up again.
Experiment Three The rest pauses were increased to ten minutes each. Output went up sharply. Experiment Four The workers were given six five minute breaks. Output fell slightly. The workers complained that the work rhythm was broken by frequent pauses.
Experiment Five The two original rest pauses were put back in place, and the workers were given a free hot meal by the company. Output went up. Experiment Six The workers were dismissed at 4:30 p.m. instead of 5:00 p.m. Output went up.
Experiment Seven The workers were dismissed at 4:00 p.m. Output remained the same. Experiment Eight All improvements were taken away and the workers returned to their original working conditions. Output was the highest ever recorded!
Explanation of Findings
The employees would work harder if they believed management was concerned about their welfare and supervisors paid special attention to them. This phenomenon was subsequently labeled as Hawthorne effect The group developed an increased sense of responsibility and discipline no longer needed to come from a higher authority, it came from within the group.
Informal work groups, the social environment of employees have a positive influence on productivity. Group pressure was frequently a stronger influence on worker productivity than management demands.
It relies heavily on the use of computers and mathematical models in planning. It is focused on the evaluation of effectiveness of models like the techniques of the use of models in managerial decision making: the return on investment analysis for example.
Assignment 1
Subsystem
Those parts making up the whole System Synergy The situation where whole is greater than its parts. In organizational terms, synergy means that departments that interact cooperatively are more productive than they would be if they operated in isolation. Open and closed system An open system interacts with the surroundings and a closed system doesnt.
System boundary The boundary that separates each system from its environment. It is rigid in closed system, flexible in an open system. Flow Components such as information, material, and energy that enter and leave a system. Feedback The part of system control in which the results of actions are returned to the individual, allowing work procedures to be analyzed and corrected.
Input n
Employees Banks sf5ey6dhdhhdh The Organization Unions Shareholders and the Board of directors Economic Variables Media Interest groups
Supplier
Govt.
Political variables
Ethics?
The code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong.
Organizational Ethics
Actions an organization takes beyond what is legally required to protect or enhance the well-being of living things
Areas of Responsibility
Ethical Education
ETHICS
Beliefs about right and wrong.
SOCIAL RESPONSIBILITY
The obligation of a business to contribute to society.
Tools of Ethics
Values Rights and duties Moral values Human relationships Morality of care Common morality
Business Ethics
The standards of conduct and moral values governing actions and decisions in the work environment. Social responsibility. Balance between whats right and whats profitable. Often no clear-cut choices. Often shaped by the organizations ethical climate
Chapter 2
Types of plans
1. Strategic plans Plans designed to meet an organizations broad goals (by high ranking managers) 2. Operational plans Plans that contains details for carrying out, or implementing, those strategic plans in day-to-day activities.
STRATEGIC PLANS
OPERATIONAL PLANS
MISSION STATEMENT
Broad organizational goal, based on planning premises, which justifies an organizations existence. Mission statement is a relatively permanent part of an organizations identity and can do much to unify and motivate members of the organization.
2.
3.
Case study