ManagementHarold Koontz warned all management experts to stop this jungle warfare because of its destructive nature. He asked them to remove all these confusions. This is because if confusion exists, then management will not have universal application. So now all the management theories / thoughts / schools / experts are converging. That is, they are coming together at a same point. All the experts are agreeing with each other.This unification or convergence of the management thoughts, now being adopted globally, is called as the "Global Theory of Management."
Today, there are many schools of management. There are also many management experts. Each school and each expert gives their own theory about management. They say that their theory is right, and the theories of the other experts are wrong. There are so many management theories. We cannot say, which one right and, which one is wrong. This has caused a lot of confusion in the field of management. 1. The empirical approachNow-a-days most writers purify the basics. That is, they make the basic concepts of management very simple and clear. So, the trainee managers can understand the basics very easily. Secondly, whenever there is a problem, most experts first try to find out the root cause of the problem. 2. System thinkingMost experts agree that the organisation is a unified, purposeful system which consists of many different parts. The organisation is a part of the total environment.
1. Management Key ConceptsOrganizations: People working together and coordinating their actions to achieve specific goals.Goal: A desired future condition that the organization seeks to achieve.Management: The process of using organizational resources to achieve the organization’s goals by...Planning, Organizing, Leading, and Controlling
7. Unified development and behaviourMost experts feel that Organization Development and Organization behavior, are both moving towards the same direction. So, the experts are making uniform (same) theories for organization development and a behaviour. These theories are used for managing MNCs all over the world.8. Research supports the management processResearch all over the world, found that the management process (planning, organizing, directing, controlling) is the best way to manage an organization. So, organizations all over the world are using the management process.
9. Common meaning for management termsAbout twenty-five years ago, different management experts gave different meanings for the same management terms. However, now this situation has stopped. Today, management terms have same meaning in all books.
Management - is the managing of people working in the same organization with the final goal. But management is not just people management, organization, and its special shape, it is in control of the market conditions, the market economy, under conditions of constant change, risk. Therefore, management is aimed at creating favorable conditions (technical, economic, psychological, etc.) operation of the organization to achieve its success.
Management is a specific type of work. It stood out as a special kind of work together with cooperation and division of labor. In terms of cooperation, each manufacturer performs only part of the job, so to achieve a common result efforts are required on the connection, coordination of activities of all participants in the joint working process. Management establishes consistency between individual works and performs general functions arising from the movement of the entire organization. As such, management establishes a common bond and unity of action of all members of joint production process to achieve the common goals of the organization. That is the essence of the management process.
Global Theory ofManagement• 1. The empirical approachNow-a-days most writers purify thebasics. That is, they make the basicconcepts of management verysimple and clear. So, the traineemanagers can understand the basicsvery easily. Secondly, wheneverthere is a problem, most expertsfirst try to find out the root cause ofthe problem.• 2. System thinkingMost experts agree that theorganization is a unified, purposefulsystem which consists of manydifferent parts. The organization is apart of the total environment.Today, there are many schoolsof management. There are alsomany management experts. Eachschool and each expert gives theirown theory about management.They say that their theory is right,and the theories of the otherexperts are wrong. There are somany management theories. Wecannot say, which one right and,which one is wrong. This hascaused a lot of confusion in thefield of management.
Global Theory ofManagement3. Situational and contingency approachMost experts believe that we cannot haveuniversal styles of management, which canbe used in all situations.A manager must first study the situationvery carefully then he must use a style ofmanagement, which is suitable for thatsituation.4. Motivation and leadership theoryMost experts feel that the theories ofmotivation and leadership must becombined. They support the FollowerTheory of leadership.According to the follower theory, peoplewill follow those leaders who will helpthem to satisfy their wants. So, a leaderwill be successful only if he can satisfy thewants of his followers. Now-a-days leadersmust combine both financial and non-financial motivation plans.1. Management Key ConceptsOrganizations: People workingtogether and coordinating theiractions to achieve specific goals.Goal: A desired future conditionthat the organization seeks toachieve.Management: The process ofusing organizational resources toachieve the organization’s goalsby...Planning, Organizing, Leading,and Controlling
Global Theory ofManagement5. Impact of technologyAll experts agree that technology has a big influence on management.Management has to change according to the changes in technology.Technology has a direct effect on the organizational structure, plantlocation, plant layout, production design and role of manpower. As thetechnology changes, these factors will also change.6. Merger of theory and practiceMost experts agree that the best way to teach management is to combinetheory (fundamentals) and practice (case studies). Management trainees allover the world read the same management books. They also read the samecase studies. They are given the same type of training. They also talk toother managers all over the world using advanced communicationtechnology. Today, all multi-national corporations (MNCs) use the samemanagement techniques. This justifies the emergence of Global Theory ofManagement.
Global Theory ofManagement7. Unified development andbehaviourMost experts feelthat OrganizationDevelopment and Organizationbehavior, are both movingtowards the same direction. So,the experts are making uniform(same) theories for organizationdevelopment and a behaviour.These theories are used formanaging MNCs all over theworld.8. Research supports themanagement processResearch all over the world,found that themanagement,process(planning, organizing,directing, controlling)is the best way to manage anorganization. So, organizations allover the world are using themanagement process.
9. Common meaning for managementtermsAbout twenty-five years ago, differentmanagement experts gave differentmeanings for the same managementterms. However, now this situation hasstopped. Today, management termshave same meaning in all books.
Nature ManagementThe concept of management, itsnecessity.Definitions management
The main ingredients for success are:1) the survival of the organization inthe long term;2) a performance;3) a efficiency.
2. Management as a particular type ofactivity, its specificityTo give a complete definition ofmanagement is difficult, because itis a very complex and multifacetedphenomenon. There are more than300 definitions of management.
Lee Iacocca believes that the management- no more than a "tune people into work."Akio Morita wrote that the quality managercan be judged by how well he can organize alarge number of people and how effectivelycan achieve the best results from each of them,merging them work together.
Peter Drucker - defines management as aspecial kind of activity that transforms anunorganized crowd into a focused,effective and efficient group.Werner Siegert emphasizes that control - hence leadto the success of others.
Michael Mesckon believes that themanagement - the process ofplanning, organization, motivationand control, necessary to formulateand achieve organizational goalsthrough other people.
The specific nature of management are:1) The object of labor, which is the work of others;2) the means of labor - organizational and computerengineering, information system of collection, processingand transmission;3) the object of labor, which acts as a collective of peoplewithin a certain cooperation;4) the product of labor, which is a management decision;5) the results of labor, manifested in the final results of thecollective.
3. Organization as to control:component parts, the levels ofthe basic processes
Any organization is an open system that is built into the environmentwith which the organization is in a constant state of exchange. Theinput it receives resources from the environment, it sends the output tothe external environment created product. Therefore livelihoodsorganization consists of three main processes:1) obtaining resources from the externalenvironment;2) the conversion of resources into a finishedproduct;3) transfer of the product produced in theenvironment.
4. The elements of the managementprocess. Management functionsManagement - is a single process, whichis represented by differentmanagerial employees or agencies.The purpose of their interaction isthe development of a single controlto the control object. For managerialstaff are managers (managers),experts and employees (technicalartists). The central place in themanagement ranks manager. Heheads a certain team, he owns theright to take control andmanagement decisions, that he bearsfull responsibility for the results ofthe collective.Manager - Head, professional manager,who is a permanent position with theauthority and decision-making onspecific activities of the organization.Specialists - workers performingcertain functions of management.They analyze the information andprepare options for solutions to theleaders of the appropriate level.Employees serve technicalperformers: secretaries, assistants,technicians, etc.
THESE ARE THE BASIC FUNCTIONS OFMANAGEMENT, THEY HAVE A PLACE ONANYONE, EVEN A SMALL ENTERPRISE.SINCE MANAGEMENT - THIS IS A SPECIFIC TYPE OFWORK, A PARTICULAR PROFESSION SHOULD BECOMMON FEATURES IN THE CONTENT OF THE WORKOF MANAGERS. THESE ARE SHORT DURATION,DIVERSITY AND FRAGMENTATION.Direct control action on the control object is theinteraction of the three functions: planning,organization and motivation.
5. Personnel management and their rolesthree conceptual categories:information (informationmanagement),interpersonal (people management)and related decision-making(management actions).
four management functions:planning, organization, motivation andcontrol.Informational role is to collect informationabout the internal and externalenvironment, its distribution in the formof facts, regulatory systems andexplanation of the policies and the maingoals of the organization.
6. The necessary skills and qualitymanagerThe manager should have a variety ofmanagement skills and abilities.They are usually combined into threegroups:conceptual, communication,technical.
Principles of Management“ Management is the art of getting things done throughand with an informally organized group”Characteristics of Management• Art as well as science• Management is an activity• It is a continuous process• It is a dynamic process• It is aimed at achieving pre-determined objectives• Organized activity• It is a discipline
……….CONT• It is all pervasive• Team-spirit• It involves decision-making• It is innovative• It is different from ownership• Universal application• Management is a profession• It has different operational levels
Functions of Management• Planning• Organizing• Staffing• Directing• Coordinating• Motivating• Controlling• Innovation• Decision-making• Communication
Importance of Management• Optimum utilization of resources• Effective functioning of the business• Integrates various interests• Coordination and team-spirit• Cordial industrial relations• Reduces turnover and absenteeism• Accomplishment of group goals• Stability, Prosperity, expansion
• Conceptual – be able to see the “big picture” ofthe situation. Ability to arrive at ideas, create avision and plan for the future.(the ability to analyze and diagnose a situation and findthe cause and effect.)• Technical – possess specific knowledge or have aspecialized expertise.(the job-specific knowledge required to perform a task.Common examples include marketing, accounting, andmanufacturing)• Human – be able to work well with others bothindividually and in a group setting.(the ability to understand, alter, lead, and controlpeople’s behavior)
• Conceptual Skills-Vision, imagination and intelligence to set appropriate organizational goals for theorganization.• Human relations skills-Interaction, motivation, guidance, self evaluation, coordination.• Technical skills-Knowledge, competence, techniques.• Diagnostic skills-Analyze, examine and determine solution to management problems.• Analytical skills-Logic, rationality, problem solving, evaluate alternatives.• Communication skills-Soft skills to deal with employees, suppliers, Govt., outside world.• Leadership skills-Inspire, respect, lead, motivate• Administrative skills-Framing policies, plans, conflict free working
Why Study Management?• The Value of Studying Management–The universality of management• Good management is needed in all organizations.–The reality of work• Employees either manage or are managed.–Rewards and challenges of being a manager• Management offers challenging, exciting andcreative opportunities for meaningful and fulfillingwork.• Successful managers receive significant monetaryrewards for their efforts.
Who Are Managers?*Manager–Someone who works with andthrough other people bycoordinating and integrating theirwork activities in order toaccomplish organizational goals.
Classifying Managers• First-line Managers– Are at the lowest level of management and managethe work of non-managerial employees.• Middle Managers– Manage the work of first-line managers.• Top Managers– Are responsible for making organization-wide decisionsand establishing plans and goals that affect the entireorganization.
manager job titles are:*Team or area leader*Front-line supervisor*Mid-level manager*Department head*Vice-President*President*Officer, Chief Officer*Managing Director*Deputy Officer
If we look at the question, “whatdoes a manager do?” the answer isnot straightforward!
Management functions• Planning – managers have to plan what they want toaccomplish and develop specific actions in order to reachthose goals.• Organizing – managers must figure out how manypeople are needed to get the jobs and tasks done. Theyalso determine how the job flow happens (who does what).Generally, we talk about what kind of structure will be putin place to get these tasks done.• Leading – managers must supervise, lead, motivate,train, coach, guide, hire and assess employees. There are alot of ways that these can be done.• Controlling – managers must monitor what’s going onin their area, to make sure that the goals or objectives aregoing to be met. If the goals are not going to be met, thencorrective action can be taken.
Henry Mintzberg.• One of the most important pieces of research intothe job of a manager comes from HenryMintzberg. He is a Canadian academic andresearcher who has studied management foryears. He believes that a manager’s work is neverreally done!• He was the person who categorized thevarious roles that a manager plays in theorganization. The following chart outlinesMintzberg’s categories and roles. It also gives briefexamples of the roles.
A quote from “Peter Drucker”When I first began to study management, during andimmediately after World II War, a manager wasdefined as ‘someone who is responsible for the workof subordinates’. A manager, in other words, was a‘boss’, and management was rank and power … Butby the early 1950s, the definition had already changedto ‘a manager is responsible for the performance ofpeople’. Now we know that this also is too narrow adefinition.The right definition is “a manager is responsible for theapplication and performance of knowledge”.
Planning in the organizationPlanning in the organizationCompetitive advantageStrategic planning processGrand StrategyMission statementsAction/implementation plan
Using the example from the previous section, here isa sample of their action planWhat? Develop new products. Specific goal - develop one new product by the endof six months. Cross-train present employees.Who? Representatives from design, manufacturing and sales department form a team to determine market needs and manufacturing capability. HR Administrator.How?/When? Prototype presented to management by the end of four months forapproval. Production in place at the end of six months. Training plan presented to management by the end of one month.Training started in six weeks and completed by the end of three months.
Organizing the organizationStructure follows strategyBureaucracy“Rules” of a bureaucracyCentralized vs. decentralizedDisadvantages of a bureaucracyAuthority – staff and lineLine departments/line authorityStaff departments/staff authorityThe rise of the “group” structureNot-for-profit note
Leading – Calm Seas case• Calm Seas has a strong emphasis on qualityin the products they make – indeed they havemade it part of their competitive advantage.• The organization has a curious mixture of abureaucratic structure and a team structure.In the production area, they haveimplemented a team structure, as outlined inthe previous section.
Leading in the organizationLeader vs. manager• The first thing we have to do is to separate a“leader” from a “manager• Manager is somebody who is responsible fordirecting and controlling the work and staff ofa business, or of a department within it.Leader is somebody whom people follow.
Leadership theories• This is different from soliciting input and then themanager choosing to do something else. As long as theemployees are listened to and their opinions truly considered,if the manager then chooses another option, the manager canstill be described as democratic. The big difference comesdown to listening.• After all, in today’s business world, the description of theautocratic manager doesn’t “sound” as good as the otherstyles. “Autocratic” itself is a term that does not soundpositive.• A manager can say that they have a democratic style andmay believe that they are democratic managers but it’s theactions that count.
Knowing what kind of manager/leader to beFor example, an autocratic style would often be wise to use: In a crisis or emergency When there is a legitimate, unforeseen rush needed for production Sometimes with untrained, unskilled employeesBy contrast, a participative style would often be wise to use: When the outcome is more important to the employees than theleader When the employees know more about the issue than the leader When the employees can improve and develop their skills When lots of creativity is needed
Motivation Theories and Conceptsmotivate means:“give somebody incentive” or “makesomebody willing”.
Intrinsic and extrinsic motivationOne of the first distinctions to be made,which is a concept which also arises insome of the following motivationtheories, is the distinction betweenintrinsic and extrinsic motivation.
Content Theories of motivationMaslow’s Hierarchy of Needs:*5 levels, physiological, security, social, esteem,self-actualization* each level must be substantially satisfied beforemoving to the next* refinements of Maslow’s theory today include arecognition that individuals could be on morethan one level at a time and that individuals couldmove up and down the hierarchy overnight.
McGregor’s Theory X and Theory Y* actually defines how managers view employeemotivation Y* Theory X manager believes that employees needto be controlled, coerced and bribed.* Theory Y manager believes that people are willingto work, are creative and independent and selfdirected when motivated properly.* Concept of “self-fulfilling prophecy” may enter inhere. If manager follows Theory Y beliefs, doesthat create Theory Y employees?
Herzberg’s Motivation – Hygiene Theory* hygiene factors are extrinsic to the work (workenvironment, relationship with peers, supervisor,and salary). If absent, result is dissatisfaction; ifpresent, result is neutrality.* job satisfiers are intrinsic to the work itself(achievement, recognition, nature of the work,responsibility). If absent , effect is neutral; ifpresent, result is motivation.* both hygiene and motivators must be present formotivation to occur. Can’t have motivation ifhygiene issues are not dealt with.
Control in the organizationWhat does “control” mean?We should instead think of the term “monitor”when we think of controlling in theorganization.The question becomes, “what do we want tomonitor?” Or, “what do we want and need tokeep track of?”
What kinds of controls?Traditional financial control measures are ratios such asliquidity, leverage, activity and profitability –all of these are indicators of financial performance.What?• Develop new products. Specific goal - develop one new product by the end of sixmonths.• Cross-train present employees.Who?• Representatives from design manufacturing and sales department form a team todetermine market needs and manufacturing capability• HR Administrator.How?/When?• Manager by the end of Prototype presented to four months for approval.Production in place at the end of six months.• Training plan presented to management by the end of one month. Training startedin six weeks and completed by the end of three months.
Skill Type Needed by Manager Level• Management Challenges• Increasing number of global organizations.• Building competitive advantage through superiorefficiency, quality, innovation, and responsiveness.• Increasing performance while remaining ethicalmanagers.• Managing an increasingly diverse work force.• Using new technologies.