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Principles of Management


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Principles of Management

  1. 1. Authority, Delegation Motivation
  2. 2. Responsibility The duty to perform the task or activity an employer has been assigned
  3. 3. Accountability <ul><li>The fact that the people with authority and responsibility are subject to reporting and justifying task to those above in the chain of command </li></ul>
  4. 4. Chain of command <ul><li>The flow of authority from the top to the bottom of an organization </li></ul>
  5. 5. <ul><li>Power </li></ul><ul><li>The capacity to influence decisions (or to influence the behavior of others) </li></ul>
  6. 6. <ul><li>Authority </li></ul><ul><li>The formal and legitimate right of a manager to make decision, issue orders, and allocate resources to achieve desired outcomes </li></ul>
  7. 7. <ul><li>Line Authority </li></ul><ul><li>Authority that entitles a manager to direct the work of a subordinate </li></ul>
  8. 8. <ul><li>Staff Authority </li></ul><ul><li>Authority given to individuals who support, assist and advise others who have line authority </li></ul>
  10. 10. <ul><li>Kinds of Power </li></ul><ul><li>Legitimate </li></ul><ul><li>Expert </li></ul><ul><li>Reward </li></ul><ul><li>Referent </li></ul><ul><li>Coercive </li></ul><ul><li>Delegated </li></ul>
  11. 11. Legitimate Power <ul><li>The power a person has as a result of his or her position in a formal organization. </li></ul>
  12. 12. Expert Power <ul><li>Influence that results from expertise, special skill or knowledge. </li></ul>
  13. 13. Reward Power <ul><li>Power that produces positive benefits or rewards </li></ul>
  14. 14. Referent Power <ul><li>Power that arises from identification with a person who has desirable resources or personal traits. </li></ul>
  15. 15. Coercive Power <ul><li>Power that rests on the application, or the threat of application of physical sanctions </li></ul>Physical sanctions <ul><li>Infliction of pain </li></ul><ul><li>Arousal of frustration through restriction of movement </li></ul><ul><li>Controlling basic physiological or safety needs. </li></ul>
  16. 16. Delegated Power <ul><li>Power that is exercised on behalf of a person actually holding power </li></ul>
  17. 17. <ul><li>Functional Authority </li></ul><ul><li>Authority delegated to an individual or a department to control specified task (s) </li></ul>
  18. 18. <ul><li>Centralization </li></ul><ul><li>The concentration of decision-making authority in upper management </li></ul>
  19. 19. <ul><li>Decentralization </li></ul><ul><li>The handing down of decision-making authority to lower levels in an organization </li></ul><ul><li>It in a fundamental aspect of delegation </li></ul>
  20. 20. <ul><li>Delegation </li></ul><ul><li>The process managers use to transfer authority and responsibility to positions below them in hierarchy </li></ul>
  21. 21. <ul><li>Process of Delegation </li></ul><ul><li>Determining results expected from person </li></ul><ul><li>Assigning tasks </li></ul><ul><li>Giving authority for accomplishing these tasks </li></ul><ul><li>Holding the person responsible for accomplishment of tasks </li></ul>
  22. 22. <ul><li>Factors effecting degree of delegation </li></ul><ul><li>Costliness of decision </li></ul><ul><li>Desire of uniformity of policy </li></ul><ul><li>Size & character of organization </li></ul><ul><li>History & culture of organization </li></ul><ul><li>Management philosophy </li></ul><ul><li>Desire of independence </li></ul><ul><li>Availability of managers </li></ul><ul><li>Control techniques </li></ul><ul><li>The pace of change </li></ul>
  23. 23. <ul><li>Decentralization Advantages </li></ul><ul><li>Relieves top management of some burden of decision making and forces upper-level managers to let go. </li></ul><ul><li>Encourages decision making and assumption of authority and responsibility. </li></ul><ul><li>Gives managers more freedom and independence in decision making. </li></ul><ul><li>Promotes establishment and use of broad control which may increase motivation. </li></ul><ul><li>Makes comparison of performance of different organization units possible. </li></ul><ul><li>Facilitates setting up of profit centers. </li></ul><ul><li>Facilitates product diversification. </li></ul><ul><li>Promotes development of general managers. </li></ul><ul><li>Aids in adaptation to fast-changing environment </li></ul>
  24. 24. <ul><li>Disadvantage </li></ul><ul><li>Makes it more difficult to have a uniform policy. </li></ul><ul><li>Increases complexity of coordination of decentralized organization units. </li></ul><ul><li>May result in loss of some control by upper-level managers. </li></ul><ul><li>May be limited by inadequate control techniques. </li></ul><ul><li>May be constrained by inadequate planning and control systems. </li></ul><ul><li>Can be limited by the availability of qualified managers. </li></ul><ul><li>Involves considerable expenses for training managers. </li></ul><ul><li>May be limited by external forces (national labor unions, government controls, tax policies). </li></ul><ul><li>May not be favored by economies of scale of some operation . </li></ul>
  25. 25. <ul><li>STAFF </li></ul><ul><li>BENIFITS </li></ul><ul><li>Expert advice </li></ul><ul><li>Think –tank </li></ul><ul><li>Unbiased approach /view </li></ul><ul><li>LIMITATION </li></ul><ul><li>lack of responsibility </li></ul><ul><li>Distant approach /view </li></ul><ul><li>Exercise of under authority </li></ul><ul><li>Unrelated staff work </li></ul>
  26. 26. <ul><li>MAKING STAFF EFFECTIVE </li></ul><ul><li>Understanding authority relationship </li></ul><ul><li>Listening to staff </li></ul><ul><li>Keeping staff informed </li></ul><ul><li>Making staff work responsibly </li></ul><ul><li>Require complete staff work </li></ul>
  27. 27. Culture <ul><li>Culture is the general pattern of behavior, shared beliefs, values, and norms among members of a society. </li></ul>
  28. 28. ORGANIZATIONAL CULTURE <ul><li>It pertains to the values and beliefs shared by employees of an org. and the general pattern or their behavior. </li></ul>
  29. 29. <ul><li>ORGANIZATIONAL CULTURE </li></ul><ul><li>A system of shared vision and understanding within an organization that determines how employees act </li></ul><ul><li>A set of key values , beliefs , understanding and norms that members of an organization share </li></ul>
  30. 30. Manifestation of Org. Culture <ul><li>Formal rules and procedures </li></ul><ul><li>Formal code of behavior </li></ul><ul><li>Rituals, Traditions, customs </li></ul><ul><li>Jargon, jokes </li></ul><ul><li>Formal dress code </li></ul><ul><li>Pay & benefit systems </li></ul>
  31. 31. Creating Org. Culture <ul><li>Birth of a new enterprise </li></ul><ul><li>Creation of a core management group </li></ul><ul><li>Sharing of common vision amongst the CMG </li></ul><ul><li>CMG begins to act in concert and develop dominant values, philosophy norms and org. climate etc. </li></ul>
  32. 32. Maintenance of Org. Culture <ul><li>Steps of Socializations </li></ul><ul><li>Selection of entry – level personnel </li></ul><ul><li>Placement on the job </li></ul><ul><li>Job mastery </li></ul><ul><li>Measuring and rewarding performance </li></ul><ul><li>Adherence to important values </li></ul><ul><li>Recognition and promotion </li></ul>
  33. 33. Changing or Org. Culture <ul><li>Requirement </li></ul><ul><li>External environment has drastically changed </li></ul><ul><li>Merger </li></ul><ul><li>Internal environment changes </li></ul>
  34. 34. Guidelines for changes <ul><li>Assess the current culture. </li></ul><ul><li>Set realistic goals that impact and bottom line. </li></ul><ul><li>Recruit outside personnel with appropriate industry experience. </li></ul><ul><li>Make changes from the top down. </li></ul><ul><li>Include employees in change process. </li></ul><ul><li>Removal all old cultural reminders. </li></ul><ul><li>Anticipate problems and take care of them. </li></ul><ul><li>Move quickly to bring changes. </li></ul><ul><li>Be persuasive and persistent. </li></ul>
  35. 35. <ul><li>MOTIVATION </li></ul><ul><li>The willing-ness to exert high levels of efforts to reach objective ( as well as goals ) conditioned by the efforts ability to satisfy some individual need </li></ul><ul><li>“ the arousal direction and persistence of behavior” </li></ul><ul><li>“ the entire range of drivers that satisfy desires, need and wishes” </li></ul>
  36. 36. <ul><li>NEED </li></ul><ul><li>The internal state that makes certain outcomes appear attractive </li></ul>
  37. 37. <ul><li>DRIVERS </li></ul><ul><li>All those actions that force a person to make an effort to satisfy individual needs </li></ul>
  38. 38. <ul><li>HIERARCHY OF NEEDS </li></ul><ul><li>MASLOW’S NEEDS THEORY </li></ul>Self Actualization Esteem Social
  39. 39. <ul><li>Physiological Needs </li></ul><ul><li>Food , drink , shelter ,clothing sexual satisfaction, and other physical requirement </li></ul>
  40. 40. <ul><li>Safety Needs </li></ul><ul><li>Security and protection from physical and emotional harm, as well as assurance that physiological needs will continue to be met </li></ul>
  41. 41. <ul><li>Social Needs </li></ul><ul><li>Affection ,relationship, belongingness, acceptance and friendship </li></ul>
  42. 42. <ul><li>Esteem Needs </li></ul><ul><li>Internal factors such as self –respect, autonomy and achievement ; and external factors such as status , recognition and attention </li></ul>
  43. 43. <ul><li>Self Actualization </li></ul><ul><li>A persons drive to become what he </li></ul><ul><li>(or she ) is capable of becoming </li></ul>
  44. 44. <ul><li>Theory X </li></ul><ul><li>The assumption that employees dislike work, are lazy, seek to avoid responsibility and must be coerced to perform </li></ul>
  45. 45. <ul><li>Theory Y </li></ul><ul><li>The assumption that employees are creative, seek responsibility and can exercise self –direction </li></ul>
  46. 46. <ul><li>Theory X and Theory Y Assumptions </li></ul><ul><li>THEORY X </li></ul><ul><li>Employees inherently dislike work and will attempt to avoid it whenever possible . </li></ul><ul><li>Employees must be coerced, controlled, or threatened with punishment to achieve desired goals </li></ul><ul><li>Employees will shirk responsibilities and seek formal direction whenever possible </li></ul><ul><li>Most of workers place security above all other factors associated with work and will display little ambition </li></ul>
  47. 47. <ul><li>Theory Y </li></ul><ul><li>Employee view work as being as natural as rest or play </li></ul><ul><li>Employees will exercises self – direction and self-control if they are committed to the objectives </li></ul><ul><li>The average person can learn to accept and even seek , responsibility. </li></ul><ul><li>The ability to make good decision is widely dispersed through the population and isn’t necessarily the sole ability of managers </li></ul>
  48. 48. Motivation-Hygiene Theory The Theory that intrinsic factors are related to job satisfaction, while extrinsic factors are associated with dissatisfaction .
  49. 49. <ul><li>Motivators </li></ul><ul><li>Factors that increase job satisfaction. </li></ul>
  50. 50. <ul><li>Hygiene Factors </li></ul><ul><li>Factors that eliminate satisfaction. </li></ul>
  51. 51. <ul><li>Motivators Hygiene Factors </li></ul><ul><li>Achievement Supervision </li></ul><ul><li>Recognition Company policies </li></ul><ul><li>Work itself Relationship with supervisor </li></ul><ul><li>Responsibility Working conditions </li></ul><ul><li>Advancement Salary </li></ul><ul><li>Growth Relationship with peers </li></ul><ul><li> Relationship with subordinates Status </li></ul><ul><li>Security </li></ul>
  52. 52. <ul><li>Modern Theories of Motivation </li></ul><ul><li>Expectancy theory </li></ul><ul><li>People will be motivated to do things to reach a goal if they believe in the worth of that goal </li></ul>
  53. 53. <ul><li>Equity theory </li></ul><ul><li>It refers to an individuals’ judgment about the fairness of the reward he (or she) will get relative to input (i e effort, experience , education) </li></ul>
  54. 54. <ul><li>Reinforcement theory </li></ul><ul><li>Individuals can be motivated by proper design of the work environment and praise for their performance (and that punishment for poor performance produces negative results) </li></ul><ul><li>Behavior is a function of its consequence </li></ul>
  55. 55. <ul><li>Three –Needs theory </li></ul><ul><li>The needs for achievement, power and affiliation are major motivation for work </li></ul>
  56. 56. <ul><li>Goal – Setting theory </li></ul><ul><li>Specific goals increase motivation and performance and difficult goals result in higher motivation and higher performance than easy goals </li></ul>
  57. 57. <ul><li>Motivational Techniques </li></ul><ul><li>Money </li></ul><ul><li>Recognition </li></ul><ul><li>Quality of working life (QWL) </li></ul><ul><li>Job enrichment </li></ul>