Management Process Organization
MANAGEMENT :
The group of individuals who make decisions about how a business is run.
Management in all business and human organization activity is simply the act of getting people together to accomplish desired goals and objectives. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources.
Management by function
Basic functions of management
Management operates through various functions, often classified as planning, organizing, leading/motivating, and controlling.
• Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next 5 years, etc.) and generating plans for action.
• Organizing: (Implementation) making optimum use of the resources required to enable the successful carrying out of plans.
• Staffing: Job Analyzing, recruitment, and hiring individuals for appropriate jobs.
• Leading: Determining what needs to be done in a situation and getting people to do it.
• Controlling: Monitoring, checking progress against plans, which may need modification based on feedback.
• Motivating: the process of stimulating an individual to take action that will accomplish a desired goal..
Management by Objective
Management can be Defined as :-
Distinct process
Science
Art
Goal oriented
Dynamic function
A factor of production
Manager:
A person who manages, conducts, trains, manipulates, directs, deals, supervises, organizes and controls resources, expenditures, an organization, an institution, a team, a household, etc.
1.Supervise and manage the overall performance of staff in his department.
2.Analyzing, reporting, giving recommendations and developing strategies on how to improve quality and quantity.
3.Achieve business and organization goals, visions and objectives.
4.Involved in employee selection, career development, succession planning and periodic training.
5.Working out compensations and rewards.
6.Responsible for the growth and increase in the organizations’ finances and earnings.
7.Identifying problems, creating choices and providing alternatives courses of actions.
Role of a manager
INTERPERSONAL
o Leadership role
o Liaison role
o Figurehead role
INFORMATIONAL
o Mentor role
o Information disseminator
DECISION ROLE
o Entrepreneurship role
o Conflict handling
o Negotiation
Managerial skills :
Technical
Interpersonal
Diagnostic
Political
Communication
Decision making
Principal of Henry feyol :
F. W. Taylor published “The Principles of Scientific Management” in the USA in 1911, and Fayol in 1916 examined the nature of management and administration on the basis of his French mining organization experiences..
Fayol also synthesized 14 principles for organizational design and effective administration.
Fayolism is one of the first comprehensive statements of a general theory of management, developed by Fayol. He has proposed that there are five primary functions of management and 14 principles of management
1. planning
2. organizing
3. commanding
4. coordinating
5. controlling
Controlling is described in the sense that a manager must receive feedback about a process in order to make necessary adjustments. Principles of Management
1.Division of work. This principle is the same as Adam Smith’s ‘division of labour’. Specialisation increases output by making employees more efficient.
2.Authority. Managers must be able to give orders. Authority gives them this right. Note that responsibility arises wherever authority is exercised.
3.Discipline. Employees must obey and respect the rules that govern the organisation. Good discipline is the result of effective leadership, a clear understanding between management and workers regarding the organization’s rules, and the judicious use of penalties for infractions of the rules.
4.Unity of command. Every employee should receive orders from only one superior.
5.Unity of direction. Each group of organizational activities that have the same objective should be directed by one manager using one plan.
6.Subordination of individual interests to the general interest. The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole.
7.Remuneration. Workers must be paid a fair wage for their services.
8.Centralization. Centralization refers to the degree to which subordinates are involved in decision making. Whether decision making is centralized (to management) or decentralized (to subordinates) is a question of proper proportion. The task is to find the optimum degree of centralization for each situation.
9.Scalar chain. The line of authority from top management to the lowest ranks represents the scalar chain. Communications should follow this chain. However, if following the chain creates delays, cross-communications can be allowed if agreed to by all parties and superiors are kept informed.
10.Order. People and materials should be in the right place at the right time.
11.Equity. Managers should be kind and fair to their subordinates.
12.Stability of tenure of personnel. High employee turnover is inefficient. Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies.
13.Initiative. Employees who are allowed to originate and carry out plans will exert high levels of effort.
14.Esprit de corps. Promoting team spirit will build harmony and unity within the organization.
Principle of F W Taylor :
F. W. Taylor, was an American mechanical engineer who sought to improve industrial efficiency. He is regarded as the father of scientific management, and was one of the first management
Taylor believed that the industrial management of his day was amateurish, that management could be formulated as an academic discipline, and that the best results would come from the partnership between a trained and qualified management and a cooperative and innovative workforce. Each side needed the other, and there was no need for trade unions.
Taylor’s Principles, or frequently disparagingly, as Taylorism. Taylor’s scientific management consisted of four principles:
1.Replace rule-of-thumb work methods with methods based on a scientific study of the tasks.
2.Scientifically select, train, and develop each employee rather than passively leaving them to train themselves.
3.Provide “Detailed instruction and supervision of each worker in the performance of that worker’s discrete task” (Montgomery 1997: 250).
4.Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks.
Motivation
Motivation is the activation of goal-oriented behavior. Motivation may be intrinsic or extrinsic. The term is generally used for humans but, theoretically, it can also be used to describe the causes for animal behavior as well. This article refers to human motivation. According to various theories, motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, morality, or avoiding mortality
Motivation theory
Maslow’s Hierarchy of Needs
The theory can be summarized as follows:
•Human beings have wants and desires which influence their behavior. Only unsatisfied needs influence behavior, satisfied needs do not.
•Since needs are many, they are arranged in order of importance, from the basic to the complex.
•The person advances to the next level of needs only after the lower level need is at least minimally satisfied.
•The further the progress up the hierarchy, the more individuality, humanness and psychological health a person will show.
The needs, listed from basic (lowest-earliest) to most complex (highest-latest) are as follows:
• Physiology
• Safety
• Belongingness
• Self-esteem
• Self actualization
Alderfer’s ERG theory (existence, relatedness and growth)
Al derfer also proposed a regression theory to go along with the ERG theory. He said that when needs in a higher category are not met then individuals redouble the efforts invested in a lower category need. For example if self actualization or self esteem is not met then individuals will invest more effort in the relatedness category in the hopes of achieving the higher need.
ERG theory (existence, relatedness and growth). Physiological and safety, the lower order needs, are placed in the existence category, while love and self esteem needs are placed in the relatedness category. The growth category contains our self-actualization and self-esteem needs.
Theory X
In this theory, which has been proven counter-effective in most modern practice, management assumes employees are inherently lazy and will avoid work if they can and that they inherently dislike work. As a result of this, management believes that workers need to be closely supervised and comprehensive systems of controls developed. A hierarchical structure is needed with narrow span of control at each and every level. According to this theory, employees will show little ambition without an enticing incentive program and will avoid responsibility whenever they can. According to Michael J. Papa, if the organizational goals are to be met, theory X managers rely heavily on threat and coercion to gain their employee’s compliance. Beliefs of this theory lead to mistrust, highly restrictive supervision, and a punitive atmosphere. The Theory X manager tends to believe that everything must end in blaming someone. He or she thinks all prospective employees are only out for themselves. Usually these managers feel the sole purpose of the employee’s interest in the job is money. They will blame the person first in most situations, without questioning whether it may be the system, policy, or lack of training that deserves the blame. A Theory X manager believes that his or her employees do not really want to work, that they would rather avoid responsibility and that it is the manager’s job to structure the work and energize the employee. One major flaw of this management style is it is much more likely to cause Diseconomies of Scale in large businesses. This theory is a negative view of employees
Theory Y :
In this theory, management assumes employees may be ambitious and self-motivated and exercise self-control. It is believed that employees enjoy their mental and physical work duties. According to Papa, to them work is as natural as play. They possess the ability for creative problem solving, but their talents are underused in most organizations. Given the proper conditions, theory Y managers believe that employees will learn to seek out and accept responsibility and to exercise self-control and self-direction in accomplishing objectives to which they are committed. A Theory Y manager believes that, given the right conditions, most people will want to do well at work. They believe that the satisfaction of doing a good job is a strong motivation. Many people interpret Theory Y as a positive set of beliefs about workers. A close reading of The Human Side of Enterprise reveals that McGregor simply argues for managers to be open to a more positive view of workers and the possibilities that this creates. He thinks that Theory Y managers are more likely than Theory X managers to develop the climate of trust with employees that is required for human resource development. It’s here through human resource development that is a crucial aspect of any organization. This would include managers communicating openly with subordinates, minimizing the difference between superior-subordinate relationships, creating a comfortable environment in which subordinates can develop and use their abilities. This climate would include the sharing of decision making so that subordinates have say in decisions that influence them. This theory is a positive view to the employee.
Leadership:
Leadership has been described as the “process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task”.[1] Definitions more inclusive of followers have also emerged
TRAIT THEORY :
Assumptions
People are born with inherited traits.
Some traits are particularly suited to leadership.
People who make good leaders have the right (or sufficient) combination of traits.
Description
Early research on leadership was based on the psychological focus of the day, which was of people having inherited characteristics or traits. Attention was thus put on discovering these traits, often by studying successful leaders, but with the underlying assumption that if other people could also be found with these traits, then they, too, could also become great leaders.
Stogdill (1974) identified the following traits and skills as critical to leaders.
Traits Skills
• Adaptable to situations
• Alert to social environment
• Ambitious and achievement-orientated
• Assertive
• Cooperative
• Decisive
• Dependable
• Dominant (desire to influence others)
• Energetic (high activity level)
• Persistent
• Self-confident
• Tolerant of stress
• Willing to assume responsibility
• Clever (intelligent)
• Conceptually skilled
• Creative
• Diplomatic and tactful
• Fluent in speaking
• Knowledgeable about group task
• Organised (administrative ability)
• Persuasive
• Socially skilled
McCall and Lombardo (1983) researched both success and failure identified four primary traits by which leaders could succeed or ‘derail’:
•Emotional stability and composure: Calm, confident and predictable, particularly when under stress.
•Admitting error: Owning up to mistakes, rather than putting energy into covering up.
•Good interpersonal skills: Able to communicate and persuade others without resort to negative or coercive tactics.
•Intellectual breadth: Able to understand a wide range of areas, rather than having a narrow (and narrow-minded) area of expertise.
Strategic Contingencies Theory
Description
Intraorganizational power depends on three factors: problem skills, actor centrality and uniqueness of skill.
If you have the skills and expertise to resolve important problems, then you are going to be in demand. And by the law of supply and demand, that gives your the upper hand in negotiations. It also gives you power from the reciprocity created.
If you work in a central part of the workflow of the organization, then what you do is very important. This gives you many opportunities to be noticed. It also means you are on the critical path, such that if your part of the company fails, the whole show stops. Again creating attention and giving you bargaining power.
Contingency theories are a class of behavioral theory that contend that there is no one best way of leading and that a leadership style that is effective in some situations may not be successful in others.
An effect of this is that leaders who are very effective at one place and time may become unsuccessful either when transplanted to another situation or when the factors around them change.
This helps to explain how some leaders who seem for a while to have the ‘Midas touch’ suddenly appear to go off the boil and make very unsuccessful decisions.
Finally, if you are difficult to replace, then if you do make enemies up the hierarchy, then they cannot just move you out or sideways.
Example
A production manager in an organization is in charge of a key manufacturing operation (centrality), and understands its complexities very well (uniqueness). From a long experience, when things go wrong, he is very good at fixing things, both mechanically and with the unions.
Second part of the consists all the important questions that has been advised during class session including following
Managerial decision making steps
Factors affecting decision making
Group decision making
Decision tree
Mc kinsey’s 7 s framework
Formal group & informal group
June 26, 2016
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