Management & Its Functions
Definition of management
Functions of management
Management Skills
Management Types
What it is like to be a manager

Environment of Management
Value Systems and Management
Philosophy of management
Role of Objective Management

Decision Making
Heirarchy of Plans
Management Objectives
Tools in Developing Good Strategies

Definition
Structures of formal organization
Principles of organization
The Art of Delegation
Situational Approach to Human Resource
Management
Performance Appraisal
Career Strategies

Communication Flow in the organization
Barriers to Communication
Non-Verbal Communication
Essential Elements of a Control System
Principles of controlling
The PDCA Cycle

Elements of Leadership
Types of Leadership
Motivation Theories
Seven Basic Habits of Highly
Effective People

Management & Its Functions
– process by which selected people design and maintain an environment in which individuals working together in groups, efficiently accomplish specific objectives and goals.

Management & Its Functions
– attainment of organizational goals in an effective and efficient manner through planning, organizing , leading and controlling organizational resources.

Management & Its Functions
Productivity
– output-input ratio within a time period with due consideration for quality
- labor, capital, materials
– refers to products with higher quality, cheaper price, higher yield, simpler process, etc.

Management & Its Functions

Management & Its Functions
– attainment of objectives – “getting the job done”

Management & Its Functions
Management is…
- an economic resource
- a system of authority
- a class and status system

Management & Its Functions
Roles of a Manager ( H. Mintzberg)

Informational
Monitor, Disseminator , Spokeperson

Interpersonal
Figurehead, Leader, Liason

Decisional
Entrepreneur, Disturbance handler,
Resource Allocator, Negotiator

Management & Its Functions
Three Fundamental Skills of Managers (R.Katz)

Technical

Human

Conceptual

Management & Its Functions
Conceptual
Skills
Human
Skills
Technical
Skills
Management Level
Top Managers
Middle Managers
First-Line Managers
Non-Managers

Management & Its Functions
Three Important Factor in Developing Managers
(Charles E. Summer)

Knowledge Factors ideas , concepts, principles

Attitude Factorsbeliefs,feelings,desires,values

Ability Factorsskill, art,judgement,wisdom

Ethical and Environmental Foundations of Management
Four Important Social Institutions Affecting Value
Systems of Management

Family
 Educational System
 Church

Government

Ethical and Environmental Foundations of Management
Four Schools of Thought Relative to Social Responsibility
1. Profit maximization as socially desirable
2. No long-run conflict between corporate and social responsibility.
3.
Improvement of one’s own organizational behavior best leads to social betterment
4. Management as trustee

Ethical and Environmental Foundations of Management
Some Social Issues faced by modern managers:
Policies on racial discrimination
Position on divestment
Willingness of business to accept voluntary restraints
Controls over exports to certain countries
Responsibilities to developing countries
Support to educational institutions
Involvement in political campaigns & organization
Marketing policies in product promotion
Operating policies on social costs
Involvement in community and family life of employees
Opportunities for women in roles traditionally for men

Ethical and Environmental Foundations of Management
Value Systems and Management
Two approaches to moral questions:
Natural Law
Situational Ethics
Three Types of Men According to source of moral direction: (David Riesman)
1. Tradition – directed
2. Inner directed
3. Other directed

Ethical and Environmental Foundations of Management
Conflict of Six Kinds of Moral Values
Integrity
Self-respect
Rationality of individual
Peace of mind
Lawfulness
Precedents
Customs
,Contracts,
Authorization
Harmony
Logical Consistency
Platonic Justice
Order,Plan
Common Good
A C T I O N
Survival
Political Power
Effect on friendfoe relations
Happiness
Desirable results
Maximized
Satisfactions
Efficiency
Loyalty
Institutional
Trend
Social Causes

Ethical and Environmental Foundations of Management
Total Corporate Social Responsibility
Discretionary
Responsibility
Ethical
Responsibility
Legal Responsibility
Economic Responsibility
Contribute to the community and quality of life
Be ethical . Do what is right. Avoid harm
Obey the law.
Be profitable.

Ethical and Environmental Foundations of Management
Philosophy of Management
- refers to the general concepts and integrated attitudes that are fundamental to the cooperation of a social group. The concept of the firm is the total of how the firm got where it is, the place it occupies in the industry, its strengths and weaknesses, the viewpoints of its managers, and its relationship to social and political institutions.

Ethical and Environmental Foundations of Management
Total Corporate Social Responsibility
Discretioanary
Responsibility
Ethical Responsibility
Legal Responsibility
Economic Responsibility

Planning - Decision Making
Decision Making
- process of identifying problems and opportunities and then resolving them.
Decision - refers to the choice made from available alternatives.

Planning - Decision Making
Programmed & Non-programmed Decisions
Programmed decision - made in response to a situation that has occurred often enough to enable decision rules to be developed and applied in the future.
Non - Programmed decision - made in response to a situation that is unique, poorly defined and largely unstructured, and has important consequence for the organization.

Planning - Decision Making
Certainty, Risk, Uncertainty, & Ambiguity
Certainty - means all the information that the decision maker needs are fully available.
Risk – means that a decision has a clear-cut goals and that good information is available, but future outcomes associated with each alternative are subject to chance.

Planning - Decision Making
Uncertainty - means that manager know which goals they wish to achieve, but information about alternatives and future events are not complete.
Ambiguity – means that goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable.

Planning - Decision Making
Condition that affect the Possibility of Decision Failure
Organizational Problem
Low
Certainty
Programmed
Decisions
Risk
Possibility of Failure
Uncertainty
Problem Solution
High
Ambiguity
Non-Programmed
Decisions

Planning - Decision Making
Decision Making Models
Classical Model – based on the assumption that managers should make logical decisions that will be in the organization’s best economic interests.
Administrative Model – describes how managers actually make decisions in situations characterized by non-programmed decisions,uncertainty and ambiguity ( descriptive, intuition)

Planning - Decision Making
Political Model
– useful for non-programmed decisions when conditions are uncertain, information is limited, and there is disagreement among managers about what goals to pursue or what course of action to take.
“Coalition” – informal alliance among managers to support a specific goal.

Planning - Decision Making
Model Classical Administrative Political
Problem/
Goals Clear cut Vague Pluralistic, Conflicting
Condition Certainty Uncertainty Uncertainty/Ambiguity
Available Full Limited Inconsistent,ambiguous
Information
Choice Rational choice Satisficing choice Bargaining & discussion by individual for resolving problem among coalition members for max. outcomes using intuition

Planning - Decision Making Steps
1.
Recognition of
Decision
6.
Evaluation and
Feedback
Implementation of
Requirement
Diagnosis
& Analysis
2.
of Causes
Decision-Making
Process
Development of
Chosen Alternatives
Alternatives
5.
3.
Selection of Desired
Alternatives
4.

Planning - Decision Making
Decision Making By Groups
Cooperative decision making – process by which group attempts to develop a composite organization mind.
Committeeany group interacting in regard to a common explicit purpose with formal authority delegated from an appointing executive.

Planning - Decision Making
Purposes of Commitees
 For fact-finding , investigation, and collecting information
 To avoid appearance of arbitrary decisions and to secure support for a position

To make a decision
– a choice among alternatives
 To negotiate between conflicting positions taken by opposing interests

To stimulate human beings to think creatively, to generate ideas, and to reinforce thoughts advanced by others.

Planning - Decision Making
Purposes of Commitees
 To distribute information – to brief members of the organization on plans and facts

To provide representation for important elements of an organization .

To coordinate different parts and subgroups of an organization toward common , overall goals.

To train inexperienced personnel through participation of groups with experienced members.

Planning - Decision Making
Advantages of Group Decision Making Process
 Decision can be approached from different viewpoints by individual specialists on a committee.
 Coordination of activities of separate departments can be attained through joint interactions in meetings.

Motivation of individual members to carry out a decision may be increased by the feeling of participation in the decision making process.

It is a means by which executives can be trained

It permits representation of different interest groups

Provides venue for creative thinking

Planning - Decision Making
Disadvantages of Group Decision Making Process
 Costly; considering the value of time spent by individual members
 Time consuming
 Group action may lead to compromise & indecision

A superior line executive at the meeting may make decision individually , with subordinates attempting to appear competent by proposing ideas they believe will make good impression

Committee decisions may be reached by method in which no one is held responsible for decision ; “buck passing” may results

Planning - Decision Making
Decision Making Style
 Directive

Analytical

Conceptual

Behavioral

Planning - Decision Making
Decision Making Style
Directive Style
- used by people who prefer simple, clear-cut solutions to problems
- for quick decisions, do not want lot of informations
- are generally efficient and rational, prefer to rely on existing rules

Planning - Decision Making
Decision Making Style
Analytical Style
- considers complex solutions based on as much data they can gather
- carefully considers alternatives
- based their decisions on objective rational data from management control systems and other sources
- search for best possible decision based on available information

Planning - Decision Making
Decision Making Style
Conceptual Style
- considers broad amount of information
- are more socially oriented
- considers broad amount of alternatives
- rely on information both from people and systems
- likes to solve problems creatively

Planning - Decision Making
Decision Making Style
Behavioral Style
- prefers to talk to people one-on-one to understand their feelings about the problem and the effect of a given decision upon them.
- concerned with the people development
- make decisions that help others achieve their goals

Planning - Decision Making
Decision Making Tools
 Stochastic Methods

Simulation Techniques

Breakeven Analysis

Incremental Concept

Planning - Decision Making
Decision Making Involving Probabilities
1.
Decision maker should lay out all possible action / seem reasonable to consider and all the possible outcomes of these actions.
2.
State “ probability distribution “ projecting chances of each outcome that might result from each act.
3.
Decision maker must use some quantitative yardstick of value that measures the value of each outcome. Calculate weighted average by using the assigned probabilities. Calculate EMVs.

Planning - Decision Making
Payoff Table / Decision Tree
Sample Problem: A manager must decide whether to stock Brand A or Brand B. Either brand can be stocked, but not both. If A is stocked and it is a success, the
Manager can make $200, but if it is a failure , there can be a loss of $500. If Brand B is stocked and it is a
Success, the manager can make $400, but if it is a
Failure, there can be a loss of $300. Which brand should be stocked?

Planning - Decision Making
Probability of Brand A Brand B
Success 0.80 0.50
Failure 0.20 0.50
Payoff Table
Strategy
State of Nature
Success Failure
Stock Brand A
Stock Brand B
$200
$400
-$500
-$300

Planning - Decision Making
Expected Value Payoff Table
Strategy
State of Nature
Success Failure
Stock Brand A $200x .80=$160 -$500x 0.20=-$100
Stock Brand B $400x .50=$200 -$300x 0.50=-$150
EMV
$60
$50

Planning - Decision Making
Decision Tree
Alternatives
Brand A
Brand B
Outcomes
Success $200x .80=$160
Expected Values
$60
Failure
-$500x 0.20=-$100
Success
$400x .50=$200
$50
Failure
-$300x 0.50=-$150

Planning - Decision Making
Breakeven Analysis

Variable costs - costs that varies with volume eg. Direct materials, direct labor, etc.

Fixed costs
– costs that remains constant regardless of the quantity of ouput.
eg. Equipment cost, rentals, depreciation, etc.

Planning - Decision Making
Output

Planning and Strategic Management
Goals – desired future state of the organization.
Plan - a predetermined course of action
- blueprint specifying the resource allocations, schedules and other actions necessary for attaining goals.
Planning determining what organization’s goal and defining the means to achieve them.

Planning and Strategic Management
Importance of Planning
- change in technology
- changes in the government policy
- changes in the overall economic activity
(including prices, employment of labor, raw materials, etc)
- changes in nature of competition
- changes in the social norms and attitudes

Planning and Strategic Management
Elements of the Planning Process
1. Setting Primary and Intermediate Goals
2. Search for Opportunities
3. Formulators of Plans (conversion of opportunities into strategies and policies)
4. Target Setters
5. Follow- up of Plan

Planning and Strategic Management
Useful Generalization of Planning
1.
A plan should be directed toward well defined objectives.
2.
Plans made by different specialists should be coordinated through adequate communications among specialists.
3.
Planning is a prerequisite to other functions of management.
4.
Adaptation of plans to current actions demands continual redrafting of plans.
5.
Planning pervades the heirarchy of an organization.
6.
A manager should relate the degree of commitment of his resources to the need for definite plans.
7.
Plans should retain flexibility .

Planning and Strategic Management
Forecasting Techniques
- Quantitative time series analysis
Derived forecasts
Causal Models
Survey of plans and attitudes
Brainstorming
Delphi Method

Planning and Strategic Management
Forecasting Techniques
- Quantitative time series analysis
Derived forecasts
Causal Models
Survey of plans and attitudes
Brainstorming
Delphi Method

Planning and Strategic Management
Components of Strategic Management
Goals of Organization
Mission of Organizations
Strategy of Organization
Policies

Organizing and Staffing
Organizing – structure and process of job allocation ; job-oriented
Staffing – pertains to people; workeroriented

Organizing and Staffing
Classical Theory of Organization
Contributions:

Clear definition of types of formal organization
 Certain generalizations that offer first approximations for planning an organization structure

Limited models for organizing activities

Organizing and Staffing
Types of Formal Organization

Line Organization

Staff Organization

Functional Organization

Organizing and Staffing
Types of Formal Organization

Line Organization - simplest, most direct type, observes heirarchy

Staff Organization
– purely advisory (generalist/specialist) to the line structure, with no authority to place recommendations into action.
 Functional Organizationpermits specialist in a given area to enforce directives within a limited and clearly defined scope of authority.

Organizing and Staffing
Comparison of the various types of organization
 Line Organization
Advantages:
- Maintains simplicity
- Makes clear division of authority
- Encourages speedy action
Disadvantages:
- Neglects specialists in planning
- Overworks key people
- Depends upon retention of a few key people

Organizing and Staffing
Comparison of the various types of organization
 Staff Organization
Advantages:
- Enables specialist to give expert advice
- Frees the line executive of detailed analysis
- Affords young specialists a means of training
Disadvantages:
- Confuses organization if functions are not clear
- Reduces power experts –to place recommendations to action
- Tends toward centralization of organization

Organizing and Staffing
Comparison of the various types of organization
 Functional Organization
Advantages:
- Relieves line executives of routine , specialized decisions
- Provides framework for applying expert knowledge
- Relieves pressure of need for large numbers of well rounded executives
Disadvantages:
- Makes relationships more complex
- Makes limits of authority of each specialist a difficult coordination problem
- Tends toward centralization of organization

Organizing and Staffing
Classical Principles of Organizations
 Unity of Command
 Exception Principle

Span of Control

Scalar Principle
 Departmentation
 Decentralization

Organizing and Staffing
Classical Principles of Organization

Unity of command - no member of an organization should report to more than one superior on any single function.

Exception Rule
– recurring decisions should be handled in a routine manner by lower level managers, whereas problems involving unusual matters should be referred to higher levels
 Span of control -there is a limit to the number of subordinates that one superior should supervise.

Organizing and Staffing
Classical Principles of Organization
 Scalar Principle - authority and responsibility should flow in a clear unbroken line from highest executive to the lowest. “chain of command”

Departmentation – activities should be divided and formed into specialized groups usually referred to as departments.
common types: geographical, commodity or functional

Decentralization -an organizing concept which pushes decision making to lower levels of the heirarchy.

Organizing and Staffing
Departmentation Criteria

Similar activities may be grouped together, based upon likeness of personal qualifications or common purpose
 An activity may be grouped with other activities with which it is used, eg. Safety with Production

Functions may be assigned to the executive who is most interested in performing them well.

Activities may be grouped to encourage competition among departments or to avoid friction.
 If it is difficult to make definite distinctions between two activities, they may be grouped together

Certain functions require close coordination and if separated , would increase problems of higher level managers; in this case they are grouped together.

Organizing and Staffing





Bureaucracy

Regular activities aimed at organization goals are distributed as fixed official duties
Organization follows the principles of heirarchy.
Operations are governed by a consistent system of abstract rules that are applied to individual cases.
The ideal official operates as a formalistic impersonality w/out emotion
Employment in the organization is based on technical qualifications and not subject to arbitrary termination.
From purely technical point of view, bureaucracy attains the highest degree of efficiency.

Organizing and Staffing
Staffing – Filling, keeping filled, positions in the organization which includes identifying the workforce requirement, recruiting, selecting, placing, promoting, training, appraising, compensating and planning for the general welfare of the employees.
Situational Approach to Human Resource Management
External Environment
1. Equal employment opportunity
2. Women in management
3. Staffing for international environment