MANAGERIAL LEVELS

Top Managers Middle Managers First-Line Managers Non Managerial Employees

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TOP MANAGERS
Managers at or near the top level of the organization who are responsible for making organization-wide decisions and establishing the goals and plans that affect the entire organization.

FIRST LINE MANAGERS Managers at the lowest level of the organization who manage, the work of non managerial employees who are involved with the production or creation of the organizations products or services. MIDDLE MANAGERS
Managers between the first-line level and the top level of the organization who manage the work of first-line managers.

NON MANAGERIAL EMPLOYEES Those organizational members who work directly on a job or task and had no one reporting to them.
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TRADITIONAL OBJECTIVE SETTING

We need to improve the
companys performance

I want to see a significant

improvement in this divisions profits.

Increase profits regardless of

the means

Dont worry about

quality; just work fast.

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Taylors Four Principles of Management

1. Develop a science for each element of an individuals work, which will replace the old rule of thumb method. 2. Scientifically select and than train, teach and develop the worker. (Previously workers chose their own work and trained themselves as best they could).
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Taylors Four Principles of Management

3. Heartily cooperate with the workers so as to ensure that all work is done in accordance with the principles of the science that has been developed. 4. Divide work and responsibility almost equally between management and workers. Management takes over all work for which it is better fitted than the workers. (Previously, almost all the work and the greater part of the responsibility were thrown on the workers.)
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THREE LEADERSHIP STYLES AUTOCRATIC STYLE. 2. DEMOCRATIC STYLE. 3. LAISSEZ-FAIRE STYLE.

1.
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AUTOCRATIC STYLE

A leader who tended to centralize authority, dictate work methods, make unilateral decisions, and limit employees participation.
DEMOCRATIC STYLE

A leader who tended to involve employees in decision making delegate authority, encourage participation in deciding work methods and goals, and use feedback as an opportunity for coaching employees.
LAISSEZ-FAIRE STYLE

A leader who generally gave the group complete freedom to make decisions and complete the work in whatever way it saw fit.
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PODUCTIVITY GROWTH
It is the increase in productivity from one period to the next relative to the productivity in the preceding period. Thus:

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EXAMPLE
If productivity increased from 80 to 84, the growth rate would be;

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FORECAST BY EXPONENTIAL SMOOTHING

It is a sophisticated weighted averaging method based on the previous forecast plus a percentage of the difference between that forecast and the actual value of the series at that point. That is: Next forecast = Previous forecast + (Actual Previous forecast) More concisely, Ft = Ft-1 + (At-1 Ft-1) where Ft = forecast for period t Ft-1 = forecast for the previous period = smoothing constant (represent a percentage of the forecast error) At-1 = actual demand or sales for the previous period Example: suppose the previous forecast was 42 units, actual demand was 40 units, and = .10. the new forecast would be computed as follows:

Ft = Ft-1 + (At-1 Ft-1)

Ft= 42 + .10(40-42) Ft= 41.8
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TABLE OF EXPONENTIAL DISTRIBUTION

T/MTBF eT/MTBF

T/MTBF

eT/MTBF

T/MTBF

e-T/MTBF

T/MTB.0 183F

e-T/MTBF

T/MTB.0 050F

e-T/MTBF

T/MTB.0 014F

e-T/MTBF

0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1.10 1.20 1.30

.9048 .8187 .7408 .6703 .6065 .5488 .4966 .4493 .4066 .3679 .3329 .3012 .2725

1.40 1.50 1.60 1.70 1.80 1.90 2.00 2.10 2.20 2.30 2.40 2.50 2.60

.2466 .2231 .2019 .1827 .1653 .1496 .1353 .1255 .1108 .1003 .0907 .0821 .0743

2.70 2.80 2.90 3.00 3.10 3.20 3.30 3.40 3.50 3.60 3.70 3.80 3.90

.0672 .0608 .0550 .0498 .0450 .0408 .0369 .0334 .0302 .0273 .0247 .0224 .0202

4.00 4.10 4.20 4.30 4.40 4.50 4.60 4.70 4.80 4.90 5.00 5.10 5.20

.0183 .0166 .0150 .0136 .0123 .0111 .0101 .0091 .0082 .0074 .0067 .0061 .0055

5.30 5.40 5.50 5.60 5.70 5.80 5.90 6.00 6.10 6.20 6.30 6.40 6.50

.0050 .0045 .0041 .0037 .0033 .0030 .0027 .0025 .0022 .0020 .0018 .0017 .0015

6.60 6.70 6.80 6.90 7.00

.0014 .0012 .0011 .0010 .0009

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SOLUTION FOR EXAMPLE OF EXPONENTIAL DISTRIBUTION

MTBF = 4 years
a) T = 4 years T/MTBF = From Table, b) c) = 1.00

e-T/MTBF = e-1 = .3679 The probability of failure before T = 4 years is: 1- e-1 , or 1 - .3679 = .6321 T = 6 year: T/MTBF = =1.50
From Table, e-T/MTBF = e-1.5 = .2231
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