Education refers to the discipline that is concerned with methods of teaching and learning in schools or school-like environments, as opposed to various nonformal and informal means of socialization
2. UNIT-I:INTRODUCTION TO MANAGEMENT
AND ORGANIZATIONS
• Definition of Management – Science or Art – Manager Vs
Entrepreneur - types of managers - managerial roles and skills
– Evolution of Management – Scientific, human relations ,
system and contingency approaches – Types of Business
organization - Sole proprietorship, partnership, company-
public and private sector enterprises - Organization culture and
Environment – Current trends and issues in Management.
12/26/2022 MG8591-Principles of Management 2
3. DEFINITION OF MANAGEMENT
• According to Harold Koontz, ―Management is an art of
getting things done through and with the people in formally
organized groups. It is an art of creating an environment in
which people can perform and individuals and can co-operate
towards attainment of group goals.
(or)
• Management is the process of designing and maintaining an
environment in which individuals working together in groups
,efficiently accomplish selected aims.
12/26/2022 MG8591-Principles of Management 3
4. MANAGING :SCIENCE OR ART
• Management is both an art and a science. Management
combines features of both science as well as art. It is
considered as a science because it has an organized body of
knowledge which contains certain universal truth. It is called
an art because managing requires certain skills which are
personal possessions of managers.
• Managing by practice is an art.
• The organized knowledge underlying the practice may be
referred to as a science
12/26/2022 MG8591-Principles of Management 4
5. MANAGER
• It used to be fairly simple to define who managers were: They
were the organizational members who told others what to
do and how to do it. It was easy to differentiate managers
from non managerial employees.
• Definition:
A manager is someone who coordinates and oversees the
work of other people so that organizational goals can be
accomplished. A manager’s job is not about personal
achievement—it’s about helping others do their work.
12/26/2022 MG8591-Principles of Management 5
6. CLASSIFYING MANAGERS
• First-line Managers
– Individuals who manage the work of non-managerial
employees.
• Middle Managers
– Individuals who manage the work of first-line managers.
• Top Managers
– Individuals who are responsible for making organization-
wide decisions and establishing plans and goals that affect
the entire organization.
12/26/2022 MG8591-Principles of Management 6
7. MANAGERIAL LEVELS OR LEVELS OF
MANAGEMENT
12/26/2022 MG8591-Principles of Management 7
8. ORGANIZATIONS
• Managers do their work in
organizations.
• Definition:
It’s a deliberate
arrangement of people to
accomplish some specific
purpose.
• Common Characteristics of
Organizations
Have a distinct purpose
(goal)
Are composed of people
Have a deliberate structure
12/26/2022 MG8591-Principles of Management 8
9. WHAT DO MANAGERS DO?
• Management is what managers do.
• Management involves coordinating and overseeing the work
activities of others so that their activities are completed
efficiently and effectively.
• Coordinating and overseeing the work of others is what
distinguishes a managerial position from a non managerial
one.
• This doesn’t mean that managers can do what they want
anytime, anywhere, or in any way. Instead, management
involves ensuring that work activities are completed efficiently
and effectively by the people responsible for doing them, or at
least that’s what managers aspire to do.
12/26/2022 MG8591-Principles of Management 9
10. EFFICIENCY AND EFFECTIVENESS IN
MANAGEMENT
• Efficiency refers to getting the most output from the least amount of
inputs.
• Effectiveness is often described as “doing the right things”—that is,
doing those work activities that will help the organization reach its
goals.
• Management researchers have developed three approaches to
describe what managers do: functions, roles, and skills
• Efficiency
– “Doing things right”
– Getting the most output
for the least inputs
• Effectiveness
– “Doing the right things”
– Attaining organizational
goals
12/26/2022 MG8591-Principles of Management 10
13. MANAGEMENT FUNCTIONS
• Planning - Defining goals, establishing strategies to achieve
goals, and developing plans to integrate and coordinate
activities.
• Organizing - Arranging and structuring work to accomplish
organizational goals.
• Leading - Working with and through people to accomplish
goals.
• Controlling - Monitoring, comparing, and correcting work.
12/26/2022 MG8591-Principles of Management 13
14. MINTZBERG’S MANAGERIAL ROLES AND A
CONTEMPORARY MODEL OF MANAGING
• The term managerial roles refers to specific actions or
behaviors expected of and exhibited by a manager.
• The role of a manager.
10 roles are grouped around interpersonal relationships, the
transfer of information, and decision making.
• The interpersonal roles are ones that involve people
(subordinates and persons outside the organization) and other
duties that are ceremonial and symbolic in nature. The three
interpersonal roles include figurehead, leader, and liaison.
• The informational roles involve collecting, receiving, and
disseminating information. The three informational roles
include monitor, disseminator, and spokesperson.
12/26/2022 MG8591-Principles of Management 14
15. MINTZBERG’S MANAGERIAL ROLES AND A
CONTEMPORARY MODEL OF MANAGING
The decisional roles entail making decisions or choices. The
four decisional roles include entrepreneur, disturbance handler,
resource allocator, and negotiator.
Interpersonal roles
Figurehead, leader, liaison
Informational roles
Monitor, disseminator, spokesperson
Decisional roles
Entrepreneur, disturbance handler, resource allocator,
negotiator
12/26/2022 MG8591-Principles of Management 15
18. MANAGEMENT SKILLS
• Technical skills are the job specific knowledge and techniques
needed to proficiently perform work tasks.
• These skills tend to be more important for first-line managers
because they typically are managing employees who use tools
and techniques to produce the organization’s products or
service the organization’s customers.
• Human skills, which involve the ability to work well with
other people both individually and in a group. Because all
managers deal with people, these skills are equally important
to all levels of management
12/26/2022 MG8591-Principles of Management 18
19. MANAGEMENT SKILLS
• Conceptual skills are the skills managers use to think and to
conceptualize about abstract and complex situations.
• Using these skills, managers see the organization as a whole,
understand the relationships among various subunits, and
visualize how the organization fits into its broader
environment.
These skills are most important to top managers.
12/26/2022 MG8591-Principles of Management 19
20. MANAGEMENT SKILLS
• Technical skills
– Knowledge and proficiency in a specific field
• Human skills
– The ability to work well with other people
• Conceptual skills
– The ability to think and conceptualize about abstract and
complex situations concerning the organization
12/26/2022 MG8591-Principles of Management 20
23. THE IMPORTANCE OF CUSTOMERS TO THE
MANAGER’S JOB
• Customers: the reason that organizations exist
– Managing customer relationships is the responsibility of all
managers and employees.
– Consistent high quality customer service is essential for
survival.
24. THE IMPORTANCE OF INNOVATION TO THE
MANAGER’S JOB
• Innovation
– Doing things differently, exploring new territory, and
taking risks.
– Managers should encourage employees to be aware of and
act on opportunities for innovation.
25. THE IMPORTANCE OF SUSTAINABILITY TO
THE MANAGER JOB
• Sustainability -
a company’s ability to achieve its business goals and
increase long-term shareholder value by integrating
economic, environmental, and social opportunities into its
business strategies.
26. WHY STUDY MANAGEMENT?
• The value of studying management by looking at three things:
the universality of management, the reality of work, and the
rewards and challenges of being a manager.
• Universality of Management
– The reality that management is needed
• in all types and sizes of organizations
• at all organizational levels
• in all organizational areas
• in all organizations, regardless of location
28. THE REALITY OF WORK
• To work for a living and recognizing that you’re very likely to
work in an organization, you’ll probably have some
managerial responsibilities even if you’re not a manager.
• Our experience tells us that you can gain a great deal of insight
into the way your boss (and fellow employees) behave and
how organizations function by studying management.
• Our point is that you don’t have to aspire to be a manager to
gain something valuable from a course in management.
12/26/2022 MG8591-Principles of Management 28
30. WHY MANAGERS ARE IMPORTANT TO
ORGANIZATIONS
Managers are important to organizations for three reasons.
First, organizations need their managerial skills and abilities in
uncertain, complex, and chaotic times.
Second, managers are critical to getting things done in
organizations.
Finally, managers contribute to employee productivity and
loyalty; the way employees are managed can affect the
organization’s financial performance; and managerial ability
has been shown to be important in creating organizational
value.
12/26/2022 MG8591-Principles of Management 30
31. EVOLUTION OF MANAGEMENT OR
MANAGEMENT HISTORY MODULE
12/26/2022 MG8591-Principles of Management 31
32. MANAGEMENT HISTORY MODULE
• The first studies of management is called the classical
approach, emphasized rationality and making organizations
and workers as efficient as possible.
• Two major theories comprise
• The classical approach: scientific management and general
administrative theory.
• The two most important contributors to scientific management
theory were Frederick W. Taylor , Frank and Lillian Gilbreth.
• The two most important contributors to general administrative
theory were Henri Fayol and Max Weber.
12/26/2022 MG8591-Principles of Management 32
33. CLASSICAL APPROACH
Scientific management:
The use of scientific methods to define the “one best way”
for a job to be done.
General administrative theory focused more on what
managers do and what constituted good management practice.
Henri Fayol ,the first identified five functions that managers
perform: planning, organizing, commanding, coordinating, and
controlling
12/26/2022 MG8591-Principles of Management 33
36. 14 PRINCIPLES OF MANAGEMENT BY HENRI
FAYOL
12/26/2022 MG8591-Principles of Management 36
37. 14 PRINCIPLES OF MANAGEMENT
12/26/2022 MG8591-Principles of Management 37
38. 14 PRINCIPLES OF MANAGEMENT
12/26/2022 MG8591-Principles of Management 38
39. 14 PRINCIPLES OF MANAGEMENT
• Definition of esprit de corps
The common spirit existing in the members of a group and
inspiring enthusiasm, devotion, and strong regard for the honor of
the group.
12/26/2022 MG8591-Principles of Management 39
40. BUREAUCRACY BY MAX WEBER
• Theory of authority structures and relations based on an ideal
type of organization is called a bureaucracy
• A form of organization characterized by division of labor, a
clearly defined hierarchy, detailed rules and regulations, and
impersonal relationships.
• Weber recognized that this “ideal bureaucracy” didn’t exist in
reality. Instead he intended it as a basis for theorizing about
how work could be done in large groups.
• His theory became the structural design for many of today’s
large organizations.
12/26/2022 MG8591-Principles of Management 40
41. BUREAUCRACY BY MAX WEBER
• Bureaucracy described by Weber, is a lot like scientific
management in its ideology.
• Both emphasized rationality, predictability, impersonality,
technical competence, and authoritarianism.
• Weber’s ideas were less practical than Taylor’s.
• His “ideal type” still describes many contemporary
organizations attests to their importance.
12/26/2022 MG8591-Principles of Management 41
43. THE WAY TODAY’S MANAGERS USE GENERAL
ADMINISTRATIVE THEORY
• Several of our current management ideas and practices can be
directly traced to the contributions of general administrative
theory.
• The functional view of the manager’s job can be attributed to
Fayol. In addition, his 14 principles serve as a frame of
• reference from which many current management concepts—
such as managerial authority, centralized decision making,
reporting to only one boss, and so forth have evolved.
12/26/2022 MG8591-Principles of Management 43
44. THE WAY TODAY’S MANAGERS USE GENERAL
ADMINISTRATIVE THEORY
• Weber’s bureaucracy was an attempt to formulate an ideal
prototype for organizations.
• Although many characteristics of Weber’s bureaucracy are still
evident in large organizations, his model isn’t as popular today
as it was in the twentieth century.
Limitation of bureaucratic structure
• Many managers feel that a bureaucratic structure hinders
individual employees’ creativity and limits an organization’s
ability to respond quickly to an increasingly dynamic
environment.
• Even in flexible organizations of creative professionals—such
as Microsoft, Samsung, General Electric, or Cisco Systems—
some bureaucratic mechanisms are necessary to ensure that
resources are used efficiently and effectively.
12/26/2022 MG8591-Principles of Management 44
45. QUANTITATIVE APPROACH
• Quantitative approach, which is the use of quantitative
techniques to improve decision making. This approach also is
known as management science.
• The quantitative approach evolved from mathematical and
statistical solutions developed for military problems during
World War II.
12/26/2022 MG8591-Principles of Management 45
46. WHAT EXACTLY DOES THE QUANTITATIVE
APPROACH DO?
• It involves applying statistics, optimization models,
information models, computer simulations, and other
quantitative techniques to management activities.
• Linear programming is a technique that managers use to
improve resource allocation decisions.
• Work scheduling can be more efficient as a result of critical-
path scheduling analysis.
12/26/2022 MG8591-Principles of Management 46
47. WHAT EXACTLY DOES THE QUANTITATIVE
APPROACH DO?
• The economic order quantity model helps managers determine
optimum inventory levels.
Each of these is an example of quantitative techniques being
applied to improve managerial decision making.
Another area where quantitative techniques are used
frequently is in total quality management
• Total quality management, or TQM, is a management
philosophy devoted to continual improvement and responding
to customer needs and expectations.
12/26/2022 MG8591-Principles of Management 47
48. TOTAL QUALITY MANAGEMENT, OR TQM
• The term customer includes anyone who interacts with the
organization’s product or services internally or externally.
• It encompasses employees and suppliers as well as the people
who purchase the organization’s goods or services.
• Continual improvement isn’t possible without accurate
measurements, which require statistical techniques that
measure every critical variable in the
• organization’s work processes.
• These measurements are compared against standards to
identify and correct problems.
12/26/2022 MG8591-Principles of Management 48
50. USE THE QUANTITATIVE APPROACH
• The quantitative approach contributes directly to management
decision making in the areas of planning and control.
• when managers make budgeting, queuing,scheduling, quality
control, and similar decisions, they typically rely on
quantitative techniques.
• Specialized software has made the use of these techniques
less intimidating for managers, although many still feel
anxious about using them.
12/26/2022 MG8591-Principles of Management 50
51. BEHAVIORALAPPROACH
• The field of study that researches the actions
(behavior) of people at work is called organizational
behavior (OB).
• Much of what managers do today when managing
people— motivating, leading, building trust, working
with a team, managing conflict, and so forth—has
come out of OB research.
12/26/2022 MG8591-Principles of Management 51
54. HAWTHORNE STUDIES
• The most important contribution to the OB field came out of
the Hawthorne Studies, a series of studies conducted at the
Western Electric Company Works in Cicero, Illinois.
• These studies, which started in 1924, were initially designed
by Western Electric industrial engineers as a scientific
management experiment.
12/26/2022 MG8591-Principles of Management 54
56. TODAY’S MANAGERS USE THE BEHAVIORAL
APPROACH
• The behavioral approach has largely shaped how today’s
organizations are managed from the elements of the
behavioral approach.
from the way that managers design jobs
to the way that they work with employee teams
to the way that they communicate.
• Early OB advocates proposed and the conclusions from the
Hawthorne studies have provided the foundation for our
current theories of motivation, leadership, group behavior
and development, and numerous other behavioral approaches.
12/26/2022 MG8591-Principles of Management 56
57. CONTEMPORARY APPROACH
• Many elements of the earlier approaches to management
theory continue to influence how managers manage.
• Most of these earlier approaches focused on
managers’concerns inside the organization.
• Starting in the 1960s, management researchers began to look
at what was happening in the external environment outside
the boundaries of the organization.
• Two contemporary management perspectives—systems and
contingency—are part of this approach
12/26/2022 MG8591-Principles of Management 57
58. CONTEMPORARY APPROACH
• A system is a set of interrelated and interdependent parts
arranged in a manner that produces a unified whole.
• The two basic types of systems are closed and open.
• Closed systems are not influenced by and do not interact with
their environment.
• In contrast, open systems are influenced by and do interact
with their environment.
• Today, describe organizations as systems .
12/26/2022 MG8591-Principles of Management 58
60. CONTEMPORARY APPROACH
• An organization takes in inputs (resources) from the
environment and transforms or processes these
resources into outputs that are distributed into the
environment. The organization is “open” to and
interacts with its environment.
12/26/2022 MG8591-Principles of Management 60
61. CONTEMPORARY APPROACH OR SYSTEM
APPROACH
• Researchers envisioned an organization as being made up of
“interdependent factors, including individuals, groups,
attitudes, motives, formal structure, interactions, goals, status,
and authority.”
• This means that as managers coordinate work activities in
the various parts of the organization
• They ensure that all these parts are working together so the
organization’s goals can be achieved.
• Example, the systems approach recognizes that, no matter
how efficient the production department might be, the
marketing department must anticipate changes in customer
tastes and work with the product development department in
creating products customers want or the organization’s overall
performance will suffer.
12/26/2022 MG8591-Principles of Management 61
62. CONTEMPORARY APPROACH
• In addition, the systems approach implies that decisions and
actions in one organizational area will affect other areas.
• Example, if the purchasing department doesn’t acquire the
right quantity and quality of inputs, the production department
won’t be able to do its job.
• Finally, the systems approach recognizes that organizations
are not self contained. They rely on their environment for
essential inputs and as outlets to absorb their outputs.
• No organization can survive for long if it ignores government
regulations, supplier relations, or the varied external
constituencies upon which it depends.
12/26/2022 MG8591-Principles of Management 62
63. CONTEMPORARY APPROACH
• The contingency approach (sometimes called the situational
approach) says that organizations are different, face different
situations (contingencies), and require different ways of managing.
• A good way to describe contingency is “if, then.”
• If this is the way my situation is, then this is the best way for me to
manage in this situation.
• It’s intuitively logical because organizations and even units within
the same organization differ—in size, goals, work activities, and the
like. It would be surprising to find universally applicable
management rules that would work in all situations.
• The way to manage “depends on the situation” and another to say
what the situation is.
12/26/2022 MG8591-Principles of Management 63
65. CULTURE AND OTHER IMPORTANT ASPECTS
OF MANAGEMENT’S CONTEXT
• The Manager :Omnipotent or symbolic
• The dominant view in management theory and society in
general is that managers are directly responsible for an
organization’s success or failure. This perspective is called as
omnipotent view of management.
• In contrast, others have argued that much of an organization’s
success or failure is due to external forces outside managers’
control. This perspective is called the symbolic view of
management.
12/26/2022 MG8591-Principles of Management 65
66. OMNIPOTENT VIEW
• This view of managers as omnipotent is consistent with the
stereotypical picture of the take-charge business executive who
overcomes any obstacle in seeing that the organization
achieves its goals.
• This view isn’t limited to business organizations. It also
explains turnover among college and professional sports
coaches, who are considered the “managers” of their teams.
• Coaches who lose more games than they win are usually fired
and replaced by new coaches who are expected to correct the
poor performance.
12/26/2022 MG8591-Principles of Management 66
67. SYMBOLIC VIEW
• The symbolic view says that a manager’s ability to affect
performance outcomes is influenced and constrained by
external factors.
• It is unreasonable to expect managers to significantly affect an
organization’s performance.
• Performance is influenced by factors over which managers
have little control such as the economy, customers,
governmental policies, competitors’ actions, industry
conditions, and decisions made by previous managers
12/26/2022 MG8591-Principles of Management 67
68. SYMBOLIC VIEW
• This view is labeled “symbolic” because it’s based on the
belief that managers symbolize control and influence.
• They do that by developing plans, making decisions, and
engaging in other managerial activities to make sense out of
random, confusing, and ambiguous situations.
• The actual part that managers play in organizational success or
failure is limited according to this view.
12/26/2022 MG8591-Principles of Management 68
69. SYMBOLIC VIEW
• Decisions and actions
are constrained.
• External constraints
come from the
organization’s
environment
• Internal constraints
come from the
organization’s culture.
12/26/2022 MG8591-Principles of Management 69
70. EXTERNAL ENVIRONMENT
• The term external environment refers to factors and forces
outside the organization that affect its performance.
12/26/2022 MG8591-Principles of Management 70
72. COMPONENTS OF EXTERNAL ENVIRONMENT
• The economic component encompasses factors such as interest
rates, inflation, changes in disposable income, stock market
fluctuations, and business cycle stages.
• The demographic component is concerned with trends in
population characteristics such as age, race, gender, education
level, geographic location, income, and family composition.
• The political/legal component looks at federal, state, and local
laws, as well as global laws and laws of other countries. It also
includes a country’s political conditions and stability.
12/26/2022 MG8591-Principles of Management 72
73. COMPONENTS OF EXTERNAL ENVIRONMENT
• The socio cultural component is concerned with societal and
cultural factors such as values, attitudes, trends, traditions,
lifestyles, beliefs, tastes, and patterns of behavior.
• The technological component is concerned with scientific or
industrial innovations.
• The global component encompasses those issues associated
with globalization and a world economy.
• Although all these components pose potential constraints on
managers’ decisions and actions, most important two of
them—the economic and demographic aspects.
12/26/2022 MG8591-Principles of Management 73
74. ENVIRONMENT AFFECTS MANAGERS
• Three ways the environment constrains and challenges
managers
first, through its impact on jobs and employment
next, through the environmental uncertainty that is
present: Environmental uncertainty refers to the degree of
change and complexity in an organization’s environment
finally, through the various stakeholder relationships that
exist between an organization and its external
constituencies.
12/26/2022 MG8591-Principles of Management 74
76. ENVIRONMENTAL UNCERTAINTY MATRIX
• The first dimension of uncertainty is the degree of change.
• If the components in an organization’s environment change
frequently, it’s a dynamic environment.
• If change is minimal, it’s a stable one. A stable environment
might be one with no new competitors, few technological
breakthroughs by current competitors, little activity by
pressure groups to influence the organization, and so forth.
• If change is predictable, is that considered dynamic?
12/26/2022 MG8591-Principles of Management 76
77. ENVIRONMENTAL UNCERTAINTY MATRIX
• The other dimension of uncertainty describes the degree of
environmental complexity, which looks at the number of
components in an organization’s environment and the extent of
the knowledge that the organization has about those
components.
• An organization with fewer competitors, customers, suppliers,
government agencies, and so forth faces a less complex and
uncertain environment.
• Organizations deal with environmental complexity in various
ways. Complexity is also measured in terms of the knowledge
an organization needs about its environment.
12/26/2022 MG8591-Principles of Management 77
78. CONCEPT OF ENVIRONMENTAL
UNCERTAINTY INFLUENCE MANAGERS
• Uncertainty poses a threat to an organization’s effectiveness,
managers try to minimize it. Given a choice, managers would
prefer to operate in the least uncertain environments. However,
they rarely control that choice.
• In addition, the nature of the external environment today is
that most industries today are facing more dynamic change,
making their environments more uncertain.
12/26/2022 MG8591-Principles of Management 78
79. MANAGING STAKEHOLDER RELATIONSHIP
• Stakeholders are any constituencies in the organization’s
environment that are affected by an organization’s decisions
and actions.
• These groups have a stake in or are significantly influenced by
what the organization does.
• In turn, these groups can influence the organization.
• Some of these stakeholders also, in turn, may influence
decisions and actions of Starbucks’ managers.
• The idea that organizations have stakeholders is now widely
accepted by both management academics and practicing
managers.
12/26/2022 MG8591-Principles of Management 79
81. ORGANIZATIONAL CULTURE
• An organization has a personality, which is called as its
culture. And that culture influences the way employees act and
interact with others.
• Organizational culture has been described as the shared values,
principles, traditions, and ways of doing things that influence
the way organizational members act.
• In most organizations, these shared values and practices have
evolved over time and determine, to a large extent, how
“things are done around here.”
12/26/2022 MG8591-Principles of Management 81
82. ORGANIZATIONAL CULTURE
• Culture implies three things.
First, culture is a perception. It’s not something that can be
physically touched or seen, but employees perceive it on the
basis of what they experience within the organization.
Second, organizational culture is descriptive. It’s concerned
with how members perceive the culture and describe it, not
with whether they like it.
Finally, even though individuals may have different
backgrounds or work at different organizational levels, they
tend to describe the organization’s culture in similar terms.
That’s the shared aspect of culture.
12/26/2022 MG8591-Principles of Management 82
84. STRONG CULTURE
• All organizations have cultures, but not all cultures equally
influence employees’ behaviors and actions.
• Strong cultures—those in which the key values are deeply held
and widely shared—have a greater influence on employees
than do weaker cultures.
• Definition: Organizational cultures in which the key values
are intensely held and widely shared.
12/26/2022 MG8591-Principles of Management 84
85. STRONG CULTURES VS WEAK CULTURES
12/26/2022 MG8591-Principles of Management 85
86. IMPORTANCE OF STRONG CULTURE
• Why is having a strong culture important?
Organizations with strong cultures, employees are more
loyal than are employees in organizations with weak
cultures.
Strong cultures are associated with high organizational. if
values are clear and widely accepted, employees know what
they’re supposed to do and what’s expected of them, so they
can act quickly to take care of problems.
• Drawback
strong culture also might prevent employees from trying
new approaches especially when conditions are changing
rapidly
12/26/2022 MG8591-Principles of Management 86
88. ESTABLISHING AND MAINTAINING CULTURE
• The original source of the culture usually reflects the vision of
the founders.
• Company founders are not constrained by previous customs
or approaches and can establish the early culture by
articulating a vision of what they want the organization to be.
• The small size of most new organizations makes it easier to
instill that vision with all organizational members.
• certain organizational practices help maintain it.
• Employee selection process, managers typically judge job
candidates not only on the job requirements, but also on how
well they might fit into the organization.
12/26/2022 MG8591-Principles of Management 88
89. ESTABLISHING AND MAINTAINING CULTURE
• Job candidates find out information about the organization and
determine whether they are comfortable with what they see.
• The actions of top managers also have a major impact on the
organization’s culture
• Finally, organizations help employees adapt to the culture
through socialization, a process that helps new employees
learn the organization’s way of doing things.
12/26/2022 MG8591-Principles of Management 89
90. ESTABLISHING AND MAINTAINING CULTURE
• BENEFIT OF SOCIALIZATION
One benefit of socialization is that employees understand
the culture and are enthusiastic and knowledgeable with
customers.
Another benefit is that it minimizes the chance that new
employees who are unfamiliar with the organization’s
culture might disrupt current beliefs and customs.
12/26/2022 MG8591-Principles of Management 90
91. EMPLOYEES LEARN CULTURE
• Employees “learn” an organization’s culture in a number of
ways.
• The most common are
Stories,
Rituals,
Material symbols,
Language.
12/26/2022 MG8591-Principles of Management 91
92. EMPLOYEES LEARN CULTURE
• STORIES Organizational “stories” typically contain a
narrative of significant events or people including such things
as the organization’s founders, rule breaking, reactions to past
mistakes, and so forth.
• Power that rituals can have in shaping what employees believe
is important.
• Annual “ritual” plays a significant role in establishing desired
levels of motivation and behavioral expectations, which is,
after all, what management hopes an organization’s culture
does.
12/26/2022 MG8591-Principles of Management 92
93. EMPLOYEES LEARN CULTURE
• MATERIALARTIFACTS AND SYMBOLS
The layout of an organization’s facilities, how employees
dress, the types of automobiles provided to top executives, and
the availability of corporate aircraft are examples of material
symbols.
Others include the size of offices, the elegance of furnishings,
executive “perks” (extra benefits provided to managers such as
health club memberships, use of company-owned facilities,
and so forth), employee fitness centers or on-site dining
facilities, and reserved parking spaces for certain employees.
12/26/2022 MG8591-Principles of Management 93
94. EMPLOYEES LEARN CULTURE
• Material symbols convey to employees who is important and
the kinds of behavior (for example, risk taking, conservative,
authoritarian, participative, individualistic, and so forth) that
are expected and appropriate.
• LANGUAGE
Many organizations and units within organizations use
language as a way to identify and unite members of a culture
12/26/2022 MG8591-Principles of Management 94
95. CULTURE AFFECTS MANAGERS
• organization’s culture constrains particularly to managers from
what they can and cannot do and how they manage.
Look busy even if you’re not.
If you take risks and fail around here, you’ll pay dearly for
it.
Before you make a decision, run it by your boss so that he
or she is never surprised.
We make our product only as good as the competition
forces us to.
What made us successful in the past will make us
successful in the future.
If you want to get to the top here, you have to be a team
player.
12/26/2022 MG8591-Principles of Management 95
97. CURRENT ISSUES IN ORGANIZATIONAL
CULTURE
• Their organizational cultures have played a crucial role.
• Three current cultural issues:
Creating an innovative culture
Creating a customer responsive culture
Nurturing workplace spirituality.
12/26/2022 MG8591-Principles of Management 97
98. CURRENT ISSUES IN ORGANIZATIONAL
CULTURE
• Creating an innovative culture
According to Swedish researcher Goran Ekvall, it would be
characterized by the following:
Challenge and involvement – Are employees involved in,
motivated by, and committed to long-term goals and success
of the organization?
Freedom – Can employees independently define their
work, exercise discretion, and take initiative in their day-to-
day activities?
12/26/2022 MG8591-Principles of Management 98
99. CURRENT ISSUES IN ORGANIZATIONAL
CULTURE
Trust and openness – Are employees supportive and
respectful to each other?
Idea time – Do individuals have time to elaborate on new
ideas before taking action?
Playfulness/humor – Is the workplace spontaneous and fun?
Conflict resolution – Do individuals make decisions and
resolve issues based on the good of the organization versus
personal interest?
Debates – Are employees allowed to express opinions and
put forth ideas for consideration and review?
Risk-taking – Do managers tolerate uncertainty and
ambiguity, and are employees rewarded for taking risks?
12/26/2022 MG8591-Principles of Management 99
100. CURRENT ISSUES IN ORGANIZATIONAL
CULTURE
• Creating a Customer-Responsive Culture
Five characteristics of customer-responsive cultures and
offers suggestions as to what managers can do to create that
type of culture
12/26/2022 MG8591-Principles of Management 100
101. CURRENT ISSUES IN ORGANIZATIONAL
CULTURE
12/26/2022 MG8591-Principles of Management 101
102. CURRENT ISSUES IN ORGANIZATIONAL
CULTURE
• Spirituality and Organizational Culture
• workplace spirituality :
It’s a culture in which organizational values promote a sense
of purpose through meaningful work taking place in the
context of community.
Organizations with a spiritual culture recognize that people
have a mind and a spirit, seek to find meaning and purpose in
their work, and desire to connect with other human beings and
be part of a community.
And such desires aren’t limited to workplaces, as a recent
study showed that college students also are searching for
meaning and purpose in life.
12/26/2022 MG8591-Principles of Management 102
103. CURRENT ISSUES IN ORGANIZATIONAL
CULTURE
• Research shows that spiritual organizations tend to have five
cultural characteristics.
Strong sense of purpose
Focus on individual development
Trust and openness
Employee empowerment
Toleration of employee expression
12/26/2022 MG8591-Principles of Management 103
104. CURRENT ISSUES IN ORGANIZATIONAL
CULTURE
• Critics of the spirituality movement have focused on two
issues:
Legitimacy (Do organizations have the right to impose
spiritual values on their employees?)
Economics (Are spirituality and profits compatible?).
12/26/2022 MG8591-Principles of Management 104
105. CURRENT ISSUES IN ORGANIZATIONAL
CULTURE
• spirituality and profits are compatible.
• Limited evidence suggests that the two may be compatible.
One study found that companies that introduced spiritually
based techniques improved productivity and significantly
reduced turnover.
Another found that organizations that provided their
employees with opportunities for spiritual development
outperformed those that didn’t.
Others reported that spirituality in organizations was
positively related to creativity, ethics, employee satisfaction,
job involvement, team performance, and organizational
commitment
12/26/2022 MG8591-Principles of Management 105
108. BUSINESS ORGANIZATION
• A business (also called a
company, enterprise or firm)
is a legally recognized
organization designed to
provide goods and/or
services to consumers.
12/26/2022 MG8591-Principles of Management 108
109. TYPES OF BUSINESS ORGANIZATION
12/26/2022 MG8591-Principles of Management 109
110. CHOOSING A FORM OF BUSINESS
ORGANIZATION
12/26/2022 MG8591-Principles of Management 110
111. CHOOSING A FORM OF BUSINESS
ORGANIZATION
12/26/2022 MG8591-Principles of Management 111
112. SOLE PROPRIETORSHIP/ SOLE TRADER
– It is a type of business entity which is owned and run by
one individual