To be efficient means minimal waste of resources or inputs in achieving the goal(Bateman
& Snell, 2008). It is often referred as doing things right.
Effectively refers to accomplishing a tasks or achieving a goal. It is often describe as
doing the right things.
A manager is responsible for achieving organizations goals and objectives and
responsible in utilizing the firm’s resources (Lussiert 2006).
Hard skills are technical, teachable abilities you learn through school, training and job
experience.
soft skills are applicable in any role or industry and are often even more important for
management than technical proficiencies.
A role is a set of behaviors that people are expected to perform because they hold certain
positions in an organization (McShane & Glinow, 2008 p.272).
Informational roles involve managing information from receiving, collecting and
analyzing the information.
Interpersonal roles involve interacting within and outside the organization.
Interpersonal roles involve interacting within and outside the organization.
Four Functions of Management:
Planning is the process of determining objectives and organizational goals, establishing
strategies and integrating coordinated activities in the organization to achieve the goals
and objectives. Planning provides a clear direction to the organization,' it requires decision
making with the purpose, of anticipating the future. Top Level Management is often
responsible in handling or creating a plan for their company.
Organizing is the process of establishing a structure by assigning tasks, assembling and
allocating resources to achieve the organizational goals and objectives. Part of organizing
is staffing, this is the process of selecting, training and evaluating employees (Lussier,
2006, p. 11).
Leading is the process of influencing people to work in achieving the organizational goal
(Weihrich & Koontz, 2004, p.26). Managers must inspire and motivate its employees
through constant interaction in order to stimulate their performance.
Controlling is the process of monitoring performance and taking a corrective action when
necessary to ensure that the objectives of the organization will be achieved.
A management system is the framework of processes and procedures used to
ensure that an organization can fulfill all tasks required to achieve its objectives.
Classical Approaches to Management
Classical management theory is based on the belief that workers only have
physical and economic needs. It does not take into account social needs or job
satisfaction, but instead advocates a specialization of labor, centralized leadership and
decision-making, and profit maximization.
The classical approaches focus in developing principles to manage the
organization. Known approaches that emerged during the classical period were the
Scientific Management, Administrative Management, Bureaucracy and Human Relation
Management.
Concepts of the Ideal Workplace
The theory outlines an ideal workplace as one that rests on three main concepts:
1.
Hierarchical structure – Under classical management theory, workplaces are
divided under three distinct layers of management. At the very top are the owners,
board of directors and executives that set the long-range objectives for a firm.
Middle management takes on the responsibility of overseeing supervisors while
setting goals at the department level to fit within the confines of the managers’
budget. At the lowest level of the chain are supervisors, who manage day-to-day
activities, address employee problems and provide training.
2.
Specialization – The classical management theory involves an assembly line
view of the workplace in which large tasks are broken down into smaller ones that
are easy to accomplish. Workers understand their roles and typically specialize in
a single area. This helps increase productivity and efficiency while eliminating the
need for employees to multi-task.
3.
Incentives – This theory believes that employees are motivated by financial
rewards. It proposes that employees will work harder and be more productive if
they are awarded incentives based on their work. Employers who can motivate
their employees using this tactic may be able to achieve increased production,
efficiency and profit.
FAYOL's 14 Principles of Management
1.
DIVISION OF WORK- divide work into specialized tasks and assign
responsibilities to specific individuals. When employees are specialized, output can
increase because they become increasingly skilled and efficient.
2.
AUTHORITY- delegate authority along with responsibility. Managers must have
the authority to give orders, but they must also keep in mind that with authority comes
responsibility.
3.
DISCIPLINE- make expectations clear and punish violations. Discipline must be
upheld in organizations, but methods for doing so can vary.
4.
UNITY OF COMMAND- each employee should be assigned to only one
supervisor. Employees should have only one direct supervisor.
5.
UNITY OF DIRECTION- employee's efforts should be focused on achieving
organizational objectives. Teams with the same objective should be working under the
direction of one manager, using one plan. This will ensure that action is properly
coordinated.
6.
SUBORDINATION OF INDIVIDUAL- interest to the general interest the general
interest must predominate. The interests of one employee should not be allowed to
become more important than those of the group. This includes managers.
7.
REMUNERATION- systematically rewards efforts that support the organization's
direction. Employee satisfaction depends on fair remuneration for everyone. This
includes financial and non-financial compensation.
8.
CENTRALIZATION- determines the relative importance of superior and
subordinate’s roles. This principle refers to how close employees are to the decisionmaking process. It is important to aim for an appropriate balance.
9.
SCALAR CHAIN- keep communication within the chain of command. Employees
should be aware of where they stand in the organization's hierarchy, or chain of
command.
10.
ORDER- order jobs and material so they support the organization's direction. The
workplace facilities must be clean, tidy and safe for employees. Everything should have
its place.
11.
EQUITY-Fair discipline and order enhance employee commitment. Managers
should be fair to staff at all times, both maintaining discipline as necessary and acting
with kindness where appropriate.
12.
STABlLlTY AND TENURE OF PERSONNEL-Promote employee loyalty.
Managers should strive to minimize employee turnover. Personnel planning should be a
priority.
13.
INITIATIVE-encourage employees to act on their own in support of the
organization’s direction. Employees should be given the necessary level of freedom to
create and carry out plans.
14.
ESPIRIT DE CORPS- Promote a unity of interests between employees and
management. Employees should be given the necessary level of freedom to create and
carry out plans.
Hierarchy of Needs". It consists of five basic categories of needs. Need refers to
the deficiencies that energize or trigger behaviors to satisfy those needs (McShane).
1. Physiological Needs- It is also known as the basic needs. (food water, and air)
2. Safety Needs-A need which involves need for security and Protection from physical
and emotional needs.
3. Social Needs- This level is also known as Belongingness needs. It includes need for
love and affection, acceptance and friendship.
4.Esteem Needs- It involves self-respect, recognition and achievement.
5.Self-Actualization Needs- The highest level in the hierarchy. It is also known as selffulfillment; it involves a person realizing his/her full potential and abilities.
Quantitative Approaches to Management
Management Science
Management Science is an approach that emphasizes the use of mathematics or
quantitative techniques to analyze and support management decisions and problems.
After World War Il the efforts to develop several quantitative techniques continues which
helps business managers make decisions in terms of solving problems. It includes other
areas of finance and operations management particularly in forecasting that will help
manager make future projections that are very useful for determining how variable will
change the future, Linear programming is used to calculate allocation scarce resources,
It can also be used in inventory management.
Quantitative management allows tot developing quantitative approaches such as
statistics and computer Simulations to a thrive at management decision. The main
branches of quantitative management are management science and operations
management (Zatate, 2009).
Modern Approaches to Management
System Theory
The system theory focuses on viewing the organization as a whole and the
interrelationships of its parts. During the 1950s management scholars attempted to
integrate a holistic view of management process (Lussier, 2006), System is a collection
of interrelated elements that function as a whole. Subsystems are small units of a larger
system. Organizations are open systems that process resources (inputs) into a product
or services (outputs) in which the environment reacts to the output in the form of
feedbacks.
An external environment is composed of all the outside factors or influences that
impact the operation of business. The business must act or react to keep up its flow of
operations.
Five (5) M’s of Management
MAN is the most important "M" of management: It refers to people or human resource.
The right people for the right position will contribute to the overall organizational
effectiveness and efficiency. Human resource activities involve proper hiring, recruiting,
training, selecting, development of skills, compensating and dismissing personnel. Many
businesses invest in people because this provides the organization a valuable asset that
when it is successfully processed, it can be a source of competitive advantage. If the
organization will effectively use this first "M" of management, it will directly affect the entire
system which may also create a valuable source of new ideas and innovation.
MATERIALS refers to the main component in producing a product which commonly
known as raw materials. Materials can create additional value for their product and can
yield a competitive advantage for the firms. The advancement of modern technology
increases the variety of materials with the right selection of materials. It can provide the
firms cost-effective supply of materials which can generate greater profits or savings for
the company.
MONEY is defined as any good or token that functions as a medium of exchange. It is
socially and legally accepted in payment for goods and services and in settlement of
debts.
MACHINES is an important tool that helps improve efficiency and effectiveness in
producing a goods or services of a firm.
METHODS is a series of steps which managers use with the purpose of creating
systematic process in achieving the goals and objectives of the firm. Managers use a
method as a course of action in solving a problem and making a decision for the company.
PLANNING is the process of determining objectives and organizational goals,
establishing strategies and integrating coordinated activities in the organization to achieve
the goals and objectives.
Planning sets a direction for an organization in achieving its goals. A manager must
know that planning is one of the tasks that they need to perform effectively. Planning
plays an important part in the success of meeting organizational objectives. It is like a
map that outlines how an organization will meet or accomplish a goal. It involves making
decisions, choosing alternative courses of actions and developing strategies for the
organization to help them get to where they want to go.
Planning is the first and most important function of management. It is needed at
every level of management. In the absence of planning all the business activities of the
organization will become meaningless. The importance of planning has increased all the
more in view of the increasing size of organizations and their complexities.
SINGLE USE PLANS
It is a set of activities designed for a specific goal that.is unlikely. to be repeated
the future. Most of the time a single use plan is used for a particular time period; it is
developed for a one-time project or event.
The mission or purpose identifies the basic function or task of an enterprise. Every
organization has or should have a purpose so that its working becomes meaningful. The
purpose or mission is assigned to every organization by the society. The purpose of a
business is to produce and distribute goods or services, the purpose of public works
department is to construct and maintain roads, the purpose of courts is to interpret and
apply laws and so on. The purpose is a standing plan in a business organization which
defines its basic purpose in the light of which other actions are designed.
An organization’s purpose consists of a long term vision of what it seeks to do and the
reasons why it exists. The organization’s mission indicates exactly what activities the
organization intends to engage in now and in future.
STANDING PLANS
It is an ongoing plan designed without a determined time period. It is often created
to achieve a continuing set of goals. Standing plans are usually policies, rules, procedures
and program developed to serve as guidelines or methods to be followed in
accomplishing particular objectives. Example: Schools have a standing plan for students
who failed in a particular course subject. The school will offer a remedial class or a
summer class for the concerned students.
Standing plans in the form of organizational policies and procedures are designed
to be used over and over again. They set guidelines that, direct behavior in uniform
directions for certain types of situations regardless of where or when they occur in an
organization. (Schermerhorn, 1999).
The mission or purpose identifies the basic function or task of an enterprise. Every
organization has or should have a purpose so that its working becomes meaningful. The
purpose or mission is assigned to every organization by the society. The purpose of a
business is to produce and distribute goods or services, the purpose of public works
department is to construct and maintain roads, the purpose of courts is to interpret and
apply laws and so on. The purpose is a standing plan in a business organization which
defines its basic purpose in the light of which other actions are designed.
An organization’s purpose consists of a long term vision of what it seeks to do and
the reasons why it exists. The organization’s mission indicates exactly what activities the
organization intends to engage in now and in future.
CONTINGENCY PLANS
Managers must able to detect changes before they happen. It is about thinking
ahead and preparing for the worst-case scenario. Since the future cannot be predicted
with a high degree of certainty, contingency plans need to be prepared (Koontz &
Weihrich, 2004). It involves identifying an alternative course of action to be taken and
implemented if the initial plans do not work
BENEFITS OF PLANNING
Planning reduces uncertainty. Managers cannot accurately predict the demand of
the products and services in advance given this scenario. A manager should be able to
plan and anticipate by looking ahead the needs of the organization including the costs or
the budget in order to handle the future demand.
Planning create goals that is used in controlling. Every time a manager tries to control his
subordinates without any plan is pointless. They need to know where they are headed
and will the efforts of the subordinates' leads in achieving the goal of the organization.
Planning gives direction. All managers should take a preliminary look at possible
future opportunities and see them clearly and completely, know where they stand in light
of their strengths and weaknesses, understand problems they wish to solve and why and
know what they expect to gain (Koontz & Weihrich, 2004).
Planning improves performance of the people within an organization (managers
and employees) because planning provides a sense of direction. It also shows
advantages in anticipating opportunities which can lead to quality output and higher profit.
Planning improves coordination of work. It helps synchronizing the process or
activities which reduces overlapping activities (redundancies), Poor planning of activities
can lead to greater expenses that directly affect the budget and the efficiency of the
organization.
STRATEGIC PLANNING
Strategic Planning involves analyzing and determining objectives and deciding
what actions are needed to be taken to achieve them. Developing strategy is a never
ending job of crafting the story line for success. Each big acquisition or divestiture on a
big Research and Development investment, changes the company's position and the
possibilities for the future (Lauer, 2008). The to level managers are responsible for the
development of the plan. The length of the planning horizon will cover 3-7 years that is
why strategic planning is also called long range planning.
TACTICAL PLANNING
Tactical Planning is a set of procedures for translating broad strategic goals and
plans into specific goals and plans that is relevant to a distinct portion of the organization,
such as a functional area like marketing (Bateman & Snell, 2008): The length of the
planning horizon will cover 1-3 years or less. The creation of the Tactical plans is the
responsibility of the middle managers. 'It is important that a tactical planning is aligned
with the strategic planning.
OPERATIONAL PLANNING
It deals with limited scope and focus on specific areas. It processes of setting b,
short-range objectives and determining in advance how they will be accomplished.
(Lussier, 2006) It is used to identify the procedures and resources needed by the lower
level managers. Frontline or operational managers are the one responsible in developing
this plan. The length of the planning horizon usually covers less than one year.
Operational planning must be updated time to time to address the changing needs of the
organization.
An organization needs to have a goal to drive every member from the top
management down to the lower of organization towards a common desired outcome, in
this c.an GOALS as a desired outcome or that needs to be by an individual or the entire
organization. Before planning organization, it needs to establish a set goats or objectives
to as a foundation of the planning.
Goals are outcome statements that define what an organization is trying to
accomplish, both programmatically and organizationally. Goals are usually a collection of
related programs, a reflection of major actions of the organization, and provide rallying
points for managers. For example, Wal-Mart might state a financial goal of growing its
revenues 20% per year or have a goal of growing the international parts of its empire. Try
to think of each goal as a large umbrella with several spokes coming out from the center.
The umbrella itself is a goal.
An organization needs to have a goal to drive every member from the top
management down to the lower of organization towards a common desired outcome, in
this c.an GOALS as a desired outcome or that needs to be by an individual or the entire
organization. Before planning organization, it needs to establish a set goats or objectives
to as a foundation of the planning.
Goals are outcome statements that define what an organization is trying to
accomplish, both programmatically and organizationally. Goals are usually a collection of
related programs, a reflection of major actions of the organization, and provide rallying
points for managers. For example, Wal-Mart might state a financial goal of growing its
revenues 20% per year or have a goal of growing the international parts of its empire. Try
to think of each goal as a large umbrella with several spokes coming out from the center.
The umbrella itself is a goal.
Types Goals
Short—Term Goal is a type of goal that needs to be achieved in a short period Of
time. One may achieve this goal in a day, week, month or year. It is more manageable
and results are easily available once a task is completed. Other people use short term
goal as motivation towards achieving larger goats because of its characteristics which is
more achievable and it gives manager or a person a sense of satisfaction.
Long Term Goal is a type of goal that deals in the future because it need to be
achieve over a longer period of time and typically not achievable in one simple step. Often
times goals set in this period is more meaningful but achieving this goal requires greater
effort and focus that is why it is important to manage and maintain a positive attitude and
outlook.
What Is Decision Making?
Decision Making is a process of choosing and selecting best possible
alternatives; A decision is useless unless they are not acted on or implemented. All
managers in different level perform different functions and possess various skills; one
of the important skills all managers need to acquire is the conceptual and decisional
skills. This is one basic
qualification of effective managers and one major criterion
needed for success in management.
Decision making is important to achieve the organizational goals/objective within
given time and budget. It searches the best alternative, utilizes the resources properly
and satisfies the employees at the workplace. As a result, organizational goals or
objectives can be achieved as per the desired result.
Programmed Decision
A programmed decision is a type of decision that is highly structured wherein
procedures in a decision are provided with predetermined decision rules. A type of
decision that have been encountered before which 'involves established procedures,
policies and rules. Programmed Decisions are made in response to repetitive situation.
Programmed Decision
A programmed decision is a type of decision that is highly structured wherein
procedures in a decision are provided with predetermined decision rules. A type of
decision that have been encountered before which 'involves established procedures,
policies and rules. Programmed Decisions are made in response to repetitive situation.
Basic Decision Making Process
1. Identify the problem
The first stage in the decision making process is the identification of the
problem. It involves the assessment of the situation. A manager should be able to
identify the difference between the current and desired state of affairs. A problem
can be an opportunity; in this case the manager should continually search and. scan
the environment for the greater advantage that the organization may gain.
2. Gather information about the problem
The second stage is gathering information. It is important to call the necessary
information related to the problem. A manager s be able determine reliable information
from inaccurate information the manager fails to seek all essential information, it may
result generating poor quality decisions. In this stage, managers expected to find the
source of the problem to better understand scenario in order to realize what kind of
information is needed.
3. Develop alternative solutions
The next step in making a decision .is to generate alternative Brainstorming is one
of the best decision making methods; it is also good method in developing an alternative
solution. In this method you are able to generate many ideas. In organizations, manager
usually rely on education and experience as well as knowledge of the situation to generate
alternatives. In addition, they may seek information from other people such as peers,
subordinates and supervisors (Griffin & Moorhead, 2012).
4. Analyze the alternatives
In the analyzing of the alternatives stage, a manager needs to determine the
advantages and disadvantages of each alternative. A manager needs to examine all
the alternatives against each criterion before making a final decision. is important to
use all the information in evaluating each option to minimize the discrepancy between
the desired state and the current state. .1n evaluating alternatives, it, is necessary to
include the different factors such as the benefits, the costs, the acceptability, the
impact and the risk involved.
5. Select the best alternative
After evaluating the alternatives, the next step is to choose the best alternative.
This is the most crucial stage of the Decision Making Process. A manager needs to
realize the best possible alternative also known as maximizing and not just choosing
an • alternative that is acceptable enough that meets the minimal requirements but not
necessarily the perfect one which is commonly known as satisfying. If possible the
manager. may still use additional criteria and obtain more information in making a
choice. A manager often includes others in making a final decision.
6. Implement an alternative
Once a manager has already made a decision, it is time tb put things in action.
The Implementation will be the next Step. For an implementation to be able to succeed,
commitment and proper motivation from the manager and other people who are
involved in a decision process is needed. In this stage proper use of good management
skills is needed because a manager need to presume that during implementation period
problem may still arise or occur that is the reason why managers still need to develop
a contingency plan.
7. Evaluate the decision
The evaluation is the final step of the decision making process. In this final step, a
manager needs to examine the consequences of the decision both positive and
negative. Evaluation stage will be made easier if the solution involves are clear.
objectives that include measurable targets and timetables (Schermerhorn, 1999), An
evaluation system should provide feedback especially if the desired state was not
achieved. A corrective action 'is necessary.
Importance of Mission and Vision
Strategic planning is a key function of an organization’s management that helps to
set priorities, allocate resources, and ensure that everyone is working towards common
goals and objectives. However, for strategic planning to be effective, there are two
important tools that are needed – a vision and a mission statements. These serve as a
guide for creating objectives and goals in the organization, thus providing a road-map that
is to be followed by everyone.
Unfortunately, despite the importance of vision and mission statements, many
organizations do not have them. In other cases, the two statements are lumped together
as one or used interchangeably despite their distinctive differences. This creates a
confusion in the organization that makes it harder to achieve the set objectives and goals.
Mission Statement
An organization mission is the reason for its existence. It is expressed in its mission
statement the purpose of an organization. A mission statement serves as the basis for
organizational goals which provides more detail. It also describes the scope of the
mission (Stevenson & Chuong, 2010), It guides the actions of the organization and
describe what the organization does. Managers often times use mission statement as
a guide in making decisions because it focuses on the company's present state.
Vision Statement
An organization vision is a mental image of a possible and desirable future state
of the organization. The best visions are ideal and unique. Ideal, if it communicates a
standard of excellence and a clear choice of positive values. Unique, if it communicates
and inspires pride in being different from other organization; the vision statement
clarifies the long-term direction of the company and its strategic intent (Bateman & Snell,
2008). It sets the direction to the organization. Vision statement can influence a
manager's decision. It can influence his or her's way of the management of the
organization and its resources. It simply answers the question "Where do you want to
go?
Criteria in Preparing Mission Statement
When preparing a mission statement keep in mind these five basic criteria:

It should be clear and easily to be understood

If possible, keep it shod the idea/ mission statements tend to have three to four
sentences.

It should describe what your company does, who does it for, how you do it and
why

It should include the core competencies, values, moral and ethical positions that
are expressed in your business.It should be able to withstand the changes and
aim for the substances by putting your mission statement at work.