Characteristics of Today’s Organization Organization Bigness Diversification Globalization Govt. Interference Competition Information Change Science & Tech
Management Process ORGANIZATIONAL GOALS Planning Leading Controlling Organizing HUMAN RESOURCES INFORMATION RESOURCES PHYSICAL RESOURCES FINANCIAL RESOURCES
Management Functions Management Functions Planning Organizing Leading Controlling
Management Functions ‘ Planning Organizing Leading Controlling Management Functions
Management Functions: Planning, Organizing, leading & controlling Planning Setting performance Objectives & deciding How to achieve them Organizing Arranging tasks, people, & other resources To accomplish the work Controlling Measuring performance & taking action to Ensure desired results Leading Inspiring people to Work hard to achieve High performance The Management Process
LEADING Managers direct, Influence, & Motivation employees to perform essential tasks PLANNING Managers use logic & methods to think through goals & actions ORGANIZING Managers arranged & allocate work authority & resources to achieve organization goals CONTROLLING Managers make sure org is moving towards org objectives
Managerial Functions Achieving the Org Stated purpose Planning Defining Goals, Establishing strategy, & developing Sub-plans to Coordinate activities Organization Determining What Needs to be done, How it will be done, & who is to do it Leading Directing & Motivating all Involved parties & resolving conflicts Controlling Monitoring activities To ensure that they are Accomplished as Planned Lead to
The individuals responsible for determining the goals, objectives and plans that chart the organization’s long-range course. The most important task of Top-level management is strategic planning. Examples of Top Level Mangers are Managing Directors, Directors etc .
All levels of mangers between the Top level mangers and First Line Mangers are called Middle Level Managers. They involve in tactical planning and control. Examples of Middle Level Mangers are General Managers, Deputy General Managers and Managers etc.
They are directly responsible for planning and controlling the activities of workers so that higher-level targets are met; this is the lowest level of management in the organizational hierarchy. Examples of First Line Mangers are Assistant Managers, Supervisors, and Foremen etc.
The term line refers to a position and describes managers whose organizational function contributes directly to the achievement of organizational objectives. Managers of Production, Quality and design functions are called line managers and their authority is called line authority.
The term staff refers to a position and describes managers who offer advice or assist line managers to perform their functions. They are not directly involved in production activities. Managers of Human Resource, Finance, Auditing and Security functions are called Staff Managers and their authority is called Staff Authority.
It is the ability to see the big picture, to recognize significant elements in a situation, to understand the relationships among the elements and the ability to solve problems in ways that will benefit the enterprise
Managers and Skills First-Line Middle Level Top Level Technical Skills Human Skills Conceptual Skills
Planning that apply to the entire organization, establishes the organization’s overall objectives and seek to positions an organization in terms of its environment is called strategic planning. It takes place at the highest level of the organization.
Decision Making Process Problem Identification “ New Supplier is required ” Identification of Decision Criteria Price Quality Mode of payment Credibility Location Allocation of Weights to Criteria Quality 10 Price 8 Mode of Pay 5 Location 4 Credibility 3 Development of Alternatives Anex Haji & sons Linkers Hassan Bro. Globe Inn Implementation of an Alternative Hassan Bro . Evaluation of Decision Effectiveness Analysis of Alternatives Anex Haji & sons Linkers Hassan Bro. Globe Inn Selection of an Alternative Anex Haji & sons Linkers Hassan Bro. Globe Inn
The integration of the activities of the separates parts of an organization to accomplish organizational goals
A version of organizational restructuring which results in decreasing the size of the organization and often results in a flatter organizational structure
Types of Organizational Structures Options for Departmentalization Market- Channel Functional Matrix Customer Product Geography
Functional Organization President Marketing Mgr Production Mgr. Finance Mgr HRM Mgr
Geographical Organization President VP South Asia VP East Asia. VP Australia VP North America
Product Organization President VP Tea Line VP Oil Line. VP Soap Line VP W/Powder Line
Customer Organization President North America Metals and Chemicals Group Material Science Group Aerospace & Industrial Products International Group Packing Systems Group
Matrix Organization Finance Grp Marketing Grp Materials Grp HR Grp HR Grp Production Grp Finance Grp Materials Grp Production Grp Marketing Grp Project A Manager Project B Manager Production Finance Marketing Material & Procurement Human Resource Chief Executive Line operation– Work performance Support assistance from functional departments
The theory of motivation that says people strive to meet a hierarchy of existence, relatedness and growth needs, if efforts to reach one level of needs are frustrated individuals will regress to a lower level.
Herzberg’s theory that work dissatisfaction and satisfaction arise from two different sets of factors. Dissatisfiers which he called hygiene factors included salary, working conditions, and company policy. Satisfiers or motivating factors include achievement, recognition, responsibility and advancement
It attempts to explain distinctive characteristics accounting for leadership effectiveness to identify a set of traits that all successful leaders possess. This approach assumed that leaders share certain inborn personality traits.
It attempts to explain distinctive styles used by effective leaders or the nature of their work. It determines the types of leadership behaviors that lead to successful task performance and employee satisfaction. Researchers at Ohio state and University of Michigan performed the most extensive series of leadership studies in developing this theory.
Leadership Styles Low Structure and High Consideration High Structure and High Consideration Low Structure and Low Consideration High Structure And Low Consideration (High) (Low) Consideration (Low) (High) Initiating Structure
They facilitate task efficiency and high morale by coordinating and integrating work related activities
They inspire people, motivate them and support them to the last
Their evaluation is an ongoing process with objective to improve teamwork and enhance productivity
Their communication style is completely open, multidirectional and highly supported
Continuum of Leadership Behavior Use of authority by the manager Area of freedom for subordinates Boss-centered Leadership Subordinate-centered Leadership Manager makes decision and announces it Manager “sells” decision Manager presents ideas and invites questions Manager presents tentative decision subject to change Manager presents problem, gets suggestions, makes decision Manager defines limits; asks group to make decision Manager permits subordinates to function within limits defined by supervisor
Leader Behavior 4-44 Characteristics of subordinates Functions of leader Effective organization Work Environment Motivated subordinates Leader behavior
It attempts to explain the appropriate leadership style based on the leader, followers, and situation. It holds that there is no universal approach to leadership; rather, effective leadership behavior depends on situational factors that may change over time. Current leadership depends on three variables: the leader, the led, and the situation
This approach to leadership by Hersey and Blanchard -describes
“ how leaders should adjust their leadership style in response to their subordinates evolving desire for achievement, experience, ability & willingness to accept responsibility”.
Situational Model of Leadership High Relationship and Low Task High Task and High Relationship Low Relationship and Low Task High Task and Low Relationship (High) (Low) Relationship Behaviour (Low) (High) Task Behaviour
Fiedler’s Contingency Model of Leadership 4-65 Very favorable favorable unfavorable Very un favorable Style Of leadership Task- directed Human Relations - - + I Favorableness of the situation
Fiedler’s Contingency Model of Leadership Leader-member relations Task structure Position power 3 Variables of Situational Favorableness.
It is the capacity to be heroic and colourful. It steers the emotions of people and capture their heart and minds. Charismatic leadership can be disadvantageous and dangerous because people abdicate responsibility and put on their leader to take care of every problem.
Empowers Others Visionary Self Promoting Verbal Skills Minimum Internal Conflict High Energy Action Orientation Inspires Trust High Risk Orientation Self Confidence Moral Conviction Relational Power Base Charismatic Leader Characteristics
Strategies to Develop Charismatic Qualities Develop visionary skills Practice being candid Develop warm, positive, humanistic attitude. Develop an enthusiastic, optimistic, energetic personality.
Group & Team Individual & mutual Accountability Individual Complementary Skills Random and Varied Positive Synergy Neutral (Sometimes Negative) Collective Performance Goal Share Information Work Team Work Group Comparison
The processes of planning, developing, implementing, administering and performing ongoing evaluation of recruiting, hiring, orientation and organizational exit, to ensure that the workforce will meet the organization's goals and objectives
It can be defined as a set of systematic and planned activities designed by an organization to provide its members with the opportunities to learn necessary skills to meet current and future job demands.
The processes of analyzing, developing, implementing, administering and performing ongoing evaluation of a total compensation and benefits system for all employee groups consistent with human resource management goals
The processes of analyzing, developing, implementing, administering and performing ongoing evaluation of programs, practices and services to promote the physical and mental well-being of individuals in the workplace and to protect individuals and the workplace from unsafe acts, unsafe working conditions and violence
The process of analyzing, developing, implementing, administering and performing ongoing evaluation of the workplace relationship between employer and employee (including the collective bargaining process and union relations), in order to maintain effective relationships and working conditions that balance the employer's needs with the employees' rights in support of the organization's strategic objectives
“ While change and uncertainty have always been a part of life, what has been shocking over the last years has been both the quantum and suddenness of change”
Model for an Organization’s Environment Macro or Far Environment T echnological Factors S ocial Factors P olitical Factors E conomic Factors Near or Operating Environment Customers Clients Competitors Partners Suppliers ORGANIZATION
Approaches to Planned Change Change in Structure Techno-Structural Change Change in Technology Change in People Change Agent Organization Redesign Decentralization, Modification of Work Flow Redesign of Structure and Work Operations Redesign of Work Operations Changes in Skills, Attitudes, Expectations, Perceptions Improved Organizational Performance
Techniques or Methods of Organizational Change
The management activity that includes planning, production, organizing resources, directing operations and personnel and monitoring system performance.
Operations Management System Outputs Products, services, & other (pollution) Inputs Raw materials, human resources, capital (land, buildings, equipment), technology information. Feedback Product/ Service Design & Facilities Transformation Process Control Processes
It is the continuous process of comparing a company’s strategy, products and processes with those of world leaders and best-in-class organizations in order to learn how they achieved excellence and then setting out to match and even surpass it.