MANAGEMENT process of coordinating and overseeing the work of other people so that organizational goals can be efficiently and effectively accomplished. ➢ Doing things right; maximum output for the minimum inputs 3. EFFECTIVENESS ➢ “Doing the right things” ➢ Doing things correctly ➢ Attaining organizational vision, mission, goals and objectives 5 management functions 1. PLANNING Defining goals Establishing strategies to achieve goals Developing plans to integrate and coordinate activities 2. ORGANIZING Assigning tasks Setting aside funds Bringing harmonious relations among individuals and groups or teams in the organization organize his/her team and materials according to her plan & assigning work and granting authority 3. STAFFING Filling in the different job positions recruiting, selecting, training, and developing employees 4. DIRECTING / LEADING Influencing or motivating people in achieving their goals motivating, communicating, guiding, and encouraging requires the manager to coach, assist, and problem solve with employees. 5. CONTROLLING Evaluating or correcting the performance of individuals or workgroups Monitoring & comparing set goals versus actual accomplishments managerial concerns (INTRINSIC VALUES) 1. COORDINATION ➢ Harmonious; integrated action 2. EFFICIENCY Historical BACKGROUND ANCIENT MANAGEMENT ➢ CHINA: The Great Wall ➢ EGYPT: Pyramid ➢ VENETIAN: Floating warship assembly lines ADAM SMITH ➢ The Wealth of Nations (1776) ➢ Advocated the division of labor (job specialization) to increase the productivity of workers INDUSTRIAL REVOLUTION ➢ Substituted machine power for human labor ➢ Created large organizations in need of management MANAGEMENT THEORIES classical management o belief that workers only have physical and economic needs o advocates: - specialization of labor - centralized leadership and decision making - profit maximization o Designed solely to streamline operations, increase productivity and enhance the bottom line. © Catherine Aperocho | 12 ABM 9 i. THE AUTOCRATIC LEADERSHIP MODEL the central part of classical management theory no need to consult large groups of people for decisions to be made. a. HIERARCHIAL STRUCTURE ❖ workplaces are divided under three distinct layers of management. b. SPECIALIZATION ❖ an assembly line view of the workplace in which large tasks are broken down into smaller ones that are easy to accomplish. c. INCENTIVES ❖ employees are motivated by financial rewards. ❖ employees will work harder and be more productive if they are awarded incentives based on their work. 1. SCIENTIFIC MANAGEMENT THEORY ▪ FREDERICK TAYLOR ▪ improving the efficiency of the work process. ▪ a systematic study of people, tasks and work behavior ▪ Taylor's theory broke the work process down into the smallest possible units, or sub-tasks, in an effort to determine the most efficient method possible for completing a particular job four principles 1. Replace guesswork methods with a scientific study of the tasks. example: having a standardized method of doing the job 2. Select, train, and develop each worker rather than leaving them to train themselves. ex: putting the right person on the job with the correct tools and equipment. 3. Ensure that the scientifically developed methods are being followed. 4. Make sure the managers apply scientific management principles to planning the work and the workers actually perform the tasks. Divide work and responsibility almost equally between management and workers. ex: Providing an economic incentive to the worker. Management takes over all work for which it is better fitted than the workers. 2. BUREAUCRACY MAX WEBER selection and promotion only occur on the basis of technical qualifications. Should look like the extension of the government and the legal system. Organizations should act more rationally: ✓ Clarified leadership ✓ Clarified rules for decision making Wanted a Legal-Rational Authority – came from the position you occupied from the structure. AUTHORITY HIERARCHY: positions organized in a hierarchy with a clear chain of command. IMPERSONALITY: uniform application of rules and controls not according to personalities. AUTHORITY RESIDES WITHIN THE OFFICE OR POSITION & NOT WITHIN THE PERSON © Catherine Aperocho | 12 ABM 9 3. ADMINISTRATIVE MANAGEMENT HENRI FAYOL emphasized the perspective of senior managers within the organization, and argued that management was a profession and could be taught. based on the concept of DEPARTMENTALIZATION: different activities to be performed for achieving the common purpose of the organization should be identified and be classified into • • different groups or departments, such that the task can be accomplished effectively. more emphasis should be laid on organizational management and the human and behavioral factors in the management. MAIN FOCUS: how the management of the organization is structured and how well the individuals therein are organized to accomplish the tasks given to them. 14 principles of fayol • STRENGTHS OF CLASSICAL A clear • structure for management, its functions and operations The division of labor that can make tasks easier and more efficient to • accomplish, which can enhance productivity Clear definition of employee roles and tasks with little left to guesswork WEAKNESS OF CLASSICAL By attempting to predict and control human behavior, this theory overlooks the importance of human relations and creativity. In essence, this theory views workers almost as machines, but fails to take into account what job satisfaction, employee input and morale can bring to the workplace human relations management 1. behavioral management theory GEORGE ELTON MAYO human relations movement because it addresses the human dimension of work. grew from his observations of employee productivity levels under varying environmental conditions. used a matrix which he used to illustrate the likelihood that a given team would be successful. demonstrates the role that varying combinations of group norms and group cohesiveness play in team effectiveness. © Catherine Aperocho | 12 ABM 9 LOW COHESIVEN ESS HIGH COHESIVEN ESS • • • LOW HIGH NORM NORM INNEFECTI SOME DEGREE VE: they OF POSITIVE have no IMPACT: impact, through since individual none of member the accomplishme members nts. are motivated to excel NEGATIVE GREATEST IMPACT: POSITIVE since IMPACT: since fellow group members members encourag encourage e one another negative to excel. behavior (e.g., gangs). STRENGTHS OF B.M.T Worker recognition / appreciation Consideration of employees’ well-being Building a relationship between workers and managers WEAKNESS OF CLASSICAL • Oversimplified human behavior – one way works for all • Difficult to predict workplace behavior • Strategies based on predicted behavior vs. observed behavior SYSTEMS THEORY • • organization as a dynamic and interrelated set of parts. Each part represents a department or a sub-system. Each department has its sub-system. • • Continuous and effective interaction of sub-systems helps to attain goals of the larger system. every sub-system is a system and has sub-systems which together make an organization a set of mutually dependent parts and their sub-parts. 1. total quality management ❖ EDWARDS DEMING & JOSEPH JURAN ❖ description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs ❖ requires quality in all aspects of the company’s operations ❖ processes being done right the first time and defects and waste eradicated from operations. ❖ management and employees can become involved in the continuous improvement of the production of goods and services. eight elements CUSTOMER FOCUSED TOTAL EMPLOYEE INVOLVEMENT PROCESS – CENTERED INTEGRATED SYSTEM STRATEGIC AND SYSTEMATIC APPROACH CONTINUAL IMPROVEMENT FACT – BASED DECISION MAKING COMMUNICATION deming’s fourteen points 1. Create constancy of purpose for improving products and services. 2. Adopt the TQM philosophy. 3. Cease dependence on inspection to achieve quality. 4. End the practice of awarding business on price alone; instead, minimize total cost by working with a single supplier. 5. Improve constantly and forever every process for planning, production and service. 6. Institute training on the job. © Catherine Aperocho | 12 ABM 9 7. Adopt and institute leadership. 8. Drive out fear. 9. Break down barriers between staff areas. 10. Eliminate slogans, exhortations and targets for the workforce. 11. Eliminate numerical quotas for the workforce and numerical goals for management. 12. Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit system. 13. Institute a vigorous program of education and self-improvement for everyone. 14. Put everybody in the company to work accomplishing the transformation. juran trilogy 4. Develop a product that can respond to needs. 5. Develop processes which are able to produce those product features. 6. Prove that the process can produce the product. 7. Transfer the resulting plans to the operating forces. STRENGTHS OF T.Q.M • • • • 1. – through market research, product and concept. • 2. – through management, manpower, and technology. 3. – through reliability, maintainability, and logistic support. 4. – through promptness, competence, and integrity. juran’s quality planning roadmap 1. Identify your customers. • holistic view of the organizations and emphasizes on their adaptive nature studied as a whole and not through its parts Decisions are made keeping in mind organizationenvironment interface. analyses the system at different levels and interrelates and integrates it into a unified set of direction effective interaction of parts of the organization in a specific arrangement for attainment of its goals Interaction of external environment with the internal environment is the most significant contribution of systems theory WEAKNESS OF T.Q.M • • fails to provide uniform approach to management. Management practices change with changes in environmental variables. fails to provide concepts that apply to all types of organizations 2. Determine their needs. 3. Translate them into one’s language. © Catherine Aperocho | 12 ABM 9 contingency theory o there is no one best way to lead an organization. o There are too many external and internal constraints that will alter what really is the best way to lead. o Depends upon the situation at hand. o Management is situational in nature. The technique of management depends on complexity of the situation. o Management principles are not universal in nature as there is no best style of management. Management is situational and managerial actions depend upon the environmental circumstances. o insight into organization’s adaptability to both internal and external environment. It is a matter of fitting the internal environment to its external environment. 1. fred fiedler’s contingency theory ▪ there is no one best way to manage an organization. ▪ a leader must be able to identify which management style will help. achieve the organization's goals in a particular situation. ▪ the least preferred co-worker (LPC) scale which measures a manager's leadership orientation. STRENGTHS OF T.Q.M • • • integrates the principles of different schools of thought and applies them contingent upon the needs of the situation follows the technique of multivariate analysis. It thinks of all possible variables or factors that affect the situation helps to design the organization structure and plan the • information decision systems devise motivational and leadership approaches to motivate the workers. ORGANIZATIONAL BEHAVIOR The study of the actions of people at work; people are the most important asset of an organization EARLY ADVOCATES OF OB management levels WEAKNESS OF T.Q.M • • • does not follow the concept of ‘universality of principles’ which often apply to specific management situations. costly in terms of time and money. not possible for managers to determine all the factors relevant to the decisionmaking situation © Catherine Aperocho | 12 ABM 9 managerial roles involves human interaction 1. FIGUREHEAD a source of inspiration perform ceremonial and symbolic and legal duties 2. LEADER direct and motivate subordinates counsel and communicate with subordinates manage the performance and responsibilities of everyone in the group 3. LIASION maintain information links both inside and outside organization via email, phone calls, and meetings. 1. MONITOR regularly seek out information related to your organization and industry looking for relevant changes in the environment monitor your team, in terms of both their productivity, and their well-being 2. DISSEMINATOR where you communicate potentially useful information to your colleagues and your team 3. SPOKESPERSON responsible for transmitting information about your organization and its goals to the people outside it. allocating funding, as well as assigning staff and other organizational resources 4. NEGOTIATOR represent company or department during important negotiations within your team, department, or organization. managerial skills A. CONCEPTUAL SKILLS o enable managers to think of possible solutions to complex problems o visualize abstract situations, they develop a holistic view of their organization and its relation to its environment B. HUMAN SKILLS relate well with people Communicating, leading, inspiring and motivating them C. TECHNICAL SKILLS managers to be proficient in performing their tasks. helped to manage nonmanagement workers who employ varied techniques to yield good quality products/services 1. ENTREPRENEUR solving problems, generating new ideas, and implementing them. 2. DISTURBANCE HANDLER help mediate disputes within it resolve conflicts 3. RESOURCE ALLOCATOR where organizational resources are best applied © Catherine Aperocho | 12 ABM 9