Professional Documents
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Management Concepts
Management Concepts
INTRODUCTION TO MANAGEMENT
1.0 WHY WE STUDY MANAGEMENT
1.1
1.2
1.3
MANAGEMENT PROCESS
1.4
LEVELS OF MANAGEMENT
1.5
MANAGERIAL SKILL
1.6
MANAGERIAL ROLES
1.7
MANAGERIAL ACTIVITIES
1.8
Learning objectives
After completing this chapter, you should be able to :
1.
2.
3.
4.
1.0
To enhance the understanding of events/ activities, challenges and skills that will give
Meaning to our future work experience and careers as managers or other professional
careers we may choose.
Make us become effective manager who will be able to help the organization achieve a
high level of performance through the utilization of its human and material resources.
Equip ourselves with effective management theories and practices that can be applied to
all types of organization and any occupational settings we may choose to be in the future.
Make us to become effective managers who will be able to detect and locate problems to
be solve, thus making good decision about appropriate solution and utilizing
organizational resources effectively to implement these solutions.
Enable us to assess the future, make plans for it, thus acting as good planners.
1.1
a)
MANAGEMENT:
Earlier definition by Mary Parker Follet Management scholar as:
The art of getting things done through people
Stoner
The process of planning, organizing, leading and controlling the efforts of an
organization members and of using all other organizational resources to achieve
stated organizational goal.
Holt
The process of planning, organizing, leading and controlling resources in an
organizational
b)
ORGANIZATION:
Is a social unit in which two or more people interact to achieve a common goal or
a set of goal ( stoner) or
As a collection of people working together in a division of labor to achieve a
common purpose.( Schermerhon)
The structure of relationships that exists when two or more people mutually
cooperate to pursue common objectives (Holt).
TYPES OF ORGANIZATION:
1. Formal :
Consist of two or more people who are involve in a mutual effort with formal
authority to achieve common objectives ( Holt)
2. Informal organization
The shadow organization consist of two or more people involved in a mutual
effort without deliberate structures of authority or the necessity of the common
objectives.
c)
A MANAGER
A person in an organization who is responsible for work or performance of one or
more other persons ( Schermerhorn).
1.2
MANAGEMENT FUNCTIONS
Comprise of the activities of planning, organizing, leading and controlling.
Planning
Organizing
Leading
Controlling
b)
Middle managers
Middle managers can include more than one level in an organization.
Middle managers direct the activities of lower level managers and
sometimes also those of operating employees. Middle managers
principles responsibilities are to direct the activities that implement their
organizations policies and to balance the demand of their superiors with
the capacity of their subordinates.
c)
Top managers
A comparative small group of executives, the top management is
responsible for the overall management of the organization. It establishes
operating policies and guide the organizations interactions with its
environment. Typical titles of top managers are chief executives officer,
president and senior vice- president. Actual titles vary from one
organization to another.
MANAGER
By the range of
organizational activities
they are responsible
1.4
-functional manager
- General manager
MANAGEMENT SKILLS
A managers job is diverse and complex, and requires a range skills. Three basic
kind of skills : technical, human and conceptual
Technical skill- Is the ability to use the procedures, techniques and knowledge of
a specialized field. Surgeons, engineer, musicians and
accountants.
Human skill
FIRST-LINE
MANAGEMENT
MIDDLE
MANAGEMENT
TOP
MANAGEMENT
7
Conceptual
Conceptual
Human
Human
Technical
1.5
Technical
Conceptual
Human
Technical
MANAGERIAL ROLES
The specific classifications of managerial behavior.
According to Henry Mintzberg The nature of managerial work managers
perform ten inter- related roles in the organization. Ten roles classified under three
main roles :
They are :
1. Interpersonal roles
2. Informational roles
3. Decisional roles
A. Interpersonal Roles
1. Figurehead
- A department head performing ceremonial duties like
greeting visitors, signing legal documents etc.
2.
Leader
3.
Liaison
The interpersonal roles are to help the manager in managing organization smoothly.
B
Informational Roles
1.
Monitor
2.
3.
Thus, the informational roles are to assist the manager in receiving and communicating
information to make the right decision.
C. Decisional roles
1.
entrepreneur
2.
3. Resources
allocate
- Manager is responsible in allocating the resources of the
1.6
Managerial
Activities
organization
4.
1.
Managers are the people who deal with planning, organizing, leading and
Negotiator
Manager is responsible for representing the organization at
controlling. major negotiations .
Planning
- Include defining goals
establishing strategy and
developing plans to coordinates
uses activities
Goals:
a) types and number of books to be
produce
b) Improving the services for the
Organizing
Determining what tasks are to
Be done, who is to do them,
how the tasks are to be grouped,
who reports to whom and where
decisions are to be made.
3. Leading
Includes motivating,
subordinates, directing, selecting
the most effective
communication channels, and
resolving conflicts.
4. Controlling
- monitoring activities to
proton
Ensure that they are being
Accomplished as planned and
Correcting any significant
Deviations.
1.7
10
This challenges can and do influence the work of managers and affect the
performance of the organization as a whole.
If the managers do not closely monitor this challenges or changes in the
organization environment or fail to respond quickly to this changes, they are
likely to find their organization survival at a brink. Success goes to the managers
who can recognize and seize the opportunities.
The current challenges that are considered as the important factors that affect today
business environment are:
a)
Globalization
Services or business not a local focus but must be global
b)
c)
d)
e)
Re- engineering
A radical rethinking and re-designing organizations processes to achieve
drastic improvements in performance ( Micheal Hammer)
f)
Empowerment.
Current and poses another new challenge to management and organizational
today. An approach that involves granting employees the freedom and
responsibility to do their job as they think best, without constantly having to
appeal to higher authorities for permission. This will enable employees to
make quick decision without getting caught through the ladder of beauracracy
so they will be able to serve customers more effectively.
ACTIVITY
Can you define the following terms in your own words?
11
Management
Organization manager
Division of labor
Human skill
Technical skill
Conceptual skill
Management functions
Management process
planning
Organizing
leading
Effectiveness
Controlling
efficiency
Informational roles
Interpersonal roles
Decisional roles
Globalization
Re-engineering
Empowerment
Restructuring
First-line managers
Middle managers
Top managers
Functional manager
General manager
THINKING EXERCISE
1.
2.
List and define four (4) management functions. Give examples of how they
would be used by the following person(s).
a) High School principal
b) Information professionals
3.
REFERENCES :
1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6 th ed
2001, Prentice Hall.
2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6 th
and,1995, Prentice Hall.
CHAPTER 2 OVERVIEW
12
1.
2.
3.
4.
BEHAVIORAL VIEWPOINT
5.
6.
CONTEMPORARY VIEWPOINTS
Learning Objectives :
After completing this chapter student will be able to:
1.
2.
3.
2.0
13
2.1.1
b)
14
c)
2.1.2
CLASSICAL VIWEPOINT
A perspective on management that emphasizes finding ways to manage work
efficiently. Three different approaches :
a)
b)
c)
1.
Scientific management
Bureaucratic management
Administrative management
SCIENTIFIC MANAGEMENT
Approach that emphasizes findings ways to manage work efficiently. Three
different approach are:
a)
15
1)
2)
3)
4)
Scientifically study each tasks and develop the best method for performing
the tasks.
Carefully select employees, train them by using scientifically developed
method.
Cooperate fully with employees to ensure them using proper method.
Divide work and responsibility. Management will plan work method using
scientific principles and employees are responsible for executing the work
accordingly.
Frederick made use of time and motion study to substantiate his theories and
increase productivity. He divide work into different task. He redesigned the work,
improve production by his principle- management should develop a science for
each tasks to be performed.
2.
b)
b)
BUREAURATIC MANAGEMENT
a)
German sociologist
An approach that emphasizes the need for organizations to operate in a
rational manner. (Ideal organization where activities and division of labor
were clear, formal rules, procedures, people promoted on merit)
CHARACTERISTICS
Specialization of labor
DESCRIPTION
Jobs broken down into routine, so
16
Impersonality
Career advancement
. ADMINISTRATIVE MANAGEMENT
An approach focuses on principles that can be used by managers to coordinate
the internal activities of organizations.
1.
Diversion of work
b) Authority
c)
Disciplines
17
2.
d)
Unity of command
e)
Unity of direction
f)
Subordination of individual
g)
Remuneration
h)
Centralization
i)
Scalar Chain
j)
Order
k) Equity
l)
Stability of personnel
m)
Initiative
n)
Esprit de corps
18
2.1.3
BEHAVIORAL VIEWPOINT
Emphasizes the importance of attempting to understand the various factors hat
affect human behavior in organizations.
1) Early behaviorist:
Hogo Munsterberg ( 1863-1916)
Mary Parker Follet (1868 1933)
a)
Hugo Munsterberg
Interested in identifying the conditions that would promote the individuals
best work and finding ways to influence workers to act in accord with
management interest.
b)
d)
Hawthorne studies
A group of studies done at Hawthorne plant of Western Electric company.
1920s- early 1930s :
Monitored the five women assembling electrical relays.
Found that the women still increased their productivity period.
Concluded that the increase of productivity was due to the change
of supervisory arrangement that had been made to facilitate the
experiment.
= Hawthorne effect improve performance, may be due the added
attention they receive from researchers, rather than specific factors
been tested.
19
a)
i)
ii)
iii)
iv)
v)
b.
1.
20
2.1.5
2.
Operation Management
The function/ field of expertise for managing the product and delivery of
an organizations products and services. E.g work scheduling, production
planning, inventory analysis.
3.
CONTEMPORARY VIEWPOINTS
Major innovations in ways of thinking about management:
System theory
Contingency theories
1.
System theory
An approach based on the assumption that organizations can be visualized
as a systems.
System A set of interrelated parts that operate as a whole towards a
common goal.
Components of system
Inputs
21
Closed system
2.
Contingency Theories
ACTIVITY :
1.
2.
Why did scientific management receive so much attention?. What were the
Hawthorne studies?
3.
4.
REFERENCES :
1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6 th ed
2001, Prentice Hall.
2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6 th
and,1995, Prentice Hall.
CHAPTER 3 OVERVIEW
22
PLANNING
3.0
3.1
3.3
GOALS
3.4
OBJECTIVES
3.5
OPERATIONALIZING
3.6
3.7
Learning objectives:
After completing this chapter, student should be able to :
3.1
1.
2.
3.
4.
5.
6.
7.
23
3.1.1
PLANNING
Important to all organization. It is important because organization are effected by
change, economic, politic and social. Planning allows us to be more certain and to
plan for the future.
A process that begins with objectives, defined strategies, policies and detailed
plans to achieve them. Planning establishes an organization to implement
decisions and includes a review of performance and feedback to introduce a new
planning cycle. (STEINER) OR
Planning may be broadly defined as a concept of executive action that embodies
the skill of anticipating and controlling the nature and direction of change
( MC FARLAND) OR
The process of determining in advance what should be accomplished and how it
should be realized. ( MONDY) . Based upon the definition stated above, you can
infer that plans should be:
1.
2.
Formally prepared
Observable, factual, logical and realistic
PLANS
According to Mondy, plans are statement of how objectives are to be
accomplished.
As a manager, whether he is top manager or lower level manager, he has to plan.
Through planning, managers can inform their subordinates about the expectations
of the management and the objective of the organization can be realized.
Whatever activities are planned by the managers, there are several questions that
need to be asked to realize the organizations goals.
1.
What activities are required to accomplish the objectives?
2.
When should these activities be carried out?
3.
Who is responsible for doing what?
4.
Where should the activities be carried out?
5.
When should the action be completed?.
3.3
24
2.
3.
4.
Through plans, resources are efficiently and effectively utilized, thus resulting in
saving.
5.
What is really happening become more meaningful when we know what is really
expected.
6.
7.
8.
9.
Planning can point out the need for future changes. It can reveal opportunities for
new services. It guides management thinking to future desirable activities and
spells out how best to make the shift and what must be done to attain goals.
3.4
TYPES OF PLANS
25
Before any managers can plan the activities of the organization, managers do need
to know the various types of plan. The failure of some managers to recognize the
variety of plans will caused difficulty in making planning effective.
3.5
GOALS
Goal is one type of plan. Setting goals gives people a sense of control that leads
the action. Accomplishing goals leads to self- confident, Greater risk taking and
more action.
So, what are goals?.
Goals are the ends toward which activities is aimed. Weather a firm new or old,
large or small it must set goals. Goals is organizations provide the ends towards
which people direct their efforts. Goals that are clearly established an properly
communicated to employees stand the best chance of being reached.
Well defined goals provide a solid basis for managers to organized, lead and
control their departments or company successfully.
Characteristics of setting goals are:
1.
The goal must precise, specific and meaningful.
2.
The goal must be clear and coordinated
3.
The goal must be include long term and short term plans to be
successful.
Example of a Goal:
The goal of every manager is to create a clear and verifiable objectives that
facilitate measurement of a effectiveness and efficiency of managerial actions.
3.5.1
TYPES OF GOAL :
1.
Purpose
It is define as an intention to produce a specific good or service. E.g to
develop, manufacture and market pharmaceutical products that assure
strong growth and profitability.
2.
Mission
It is the purpose or reason for the existence of an organization. The
mission of an organizations is its products or services or markets or
customers .e.g, marketing pharmaceuticals products can be the mission of
a drugs manufacturing company.
26
3.6
3.
Objective
It is an estimated end result expected in the future. Objectives are
established at organizational, departmental or individual level. Increasing
the accounts handled from 20 to 25 percent within the next year, can be an
objective of a salesman.
4.
Strategy
It is the method of shaping a companys future and involves determining
the long run direction of the organization. A company may have the
strategy diversifying into related businesses within the next few years.
5.
Resource allocation
It distributes money, personnel, plant and equipment, land and other
tangible means of production for various uses.
6.
Strategic planning.
Process of making long term choices about an organizations mission,
overall objectives, strategies, policies and resource allocations.
7.
Tactical planning
Making detail, short term decisions of what to do, which will do and how
it is to be done. Developing annuals budgets for projects and departments.
Choosing specific means of implementing strategic plans.
OBJECTIVES
Objectives are the prime parts of the plans and are vital to an organization because
all the efforts an activities are focused on this objectives .
They provide a direction in which the organization should move.
They serve as standards of performance against which actual performance may be
compared and it is an important dimension of the control process. Objectives
determine the role an organization should play in a given environment. The efforts
an activities of the members of an organization can be coordinated with the help
of objectives.
A high degree of motivation can be maintained by setting objective for a members
of the organization an enabling them to achieve to those objectives.
3.6.1
27
1.
3.6.2
Hierarchy of objectives_
It is a series of objectives linked to one another at the various levels of
management such that each higher-level objective is supported by one or
more lower- level ones.
28
RELATIONSHIP
HIERARCHY
OF
OBJECTIVES
AND
THE
ORGANIZATIONAL
HIERARCHY OF OBJECTIVES
Board of
directors
Socio economic
purpose
1
Mission
Top level
managers
2
Overall objectives
of the organization
( LR strategies )
3
More specific overall
Objectives
( key result areas)
4
Middle
level
managers
Division objectives
5
Department and unit objectives
Lower
level
managers
6
Individual objectives
- performance
- Personal development objectives
Organizational hierarchy
29
3.6.3
EXPLAINATION:
1.
2.
3.
3.7
Multiplicity of Objectives
All organizations have multiple goals that must be recognized by management.
E.g the major goals of University are:
To provide education for student
To conduct research to advance the state of knowledge
To provide community service.
OPERATIONAL STRATEGY
In planning, managers have to make use of the different types of operational plans
for the effectiveness of the organization. This operational strategy is done at all
levels and involves directing the organizations day to day operations to achieve
overall strategic objectives consistent with the organizations mission and
policies.
30
Programs
Deals with the who, what, where, when, how, and how much of an
activity. It covers a relatively large set of activities whereby it indicates:
- Major steps that are required to reach an objectives.
- The organization unit or member involved for each steps.
- The order and timing of each steps.
Program are the actual course of action designed to carry out the
established objective. Usually the programs may be accompanied by a
budget for the activities required.
Projects
Are similar to programs but smaller because each project has a limited
scope and distinct directive concerning assignments and time. Projects are
short-term in nature.
Budgets
Statements of financial resources set aside for specific activities in a given
period of time. Budgets are plans that commit resources to activities,
project or programs.
2.
Standing Plans
These plans serves as guidelines to managerial action and are designed to be
used again and again, These plans bring consistency to the operations. They
exist in the form of policies, procedures and rules.
Policies
policy is a standing use plan that communicates broad guidelines for
making decisions and taking action. It indicates what is permitted and
what is not. Policies found in all aspects of an organization.
Procedures
These are a series of steps in which activities are to be carried out.
e.g, how to operate a Photostat machine or how to handle employee
grievances.
Rules
These are very specific actions to be taken or not taken with respect to a
situation. E.g are wearing uniforms or reporting to work at a particular
time.
31
3.8
PLANNING PROCESS
Stating organizational
objectives
STEP 1
Listing alternatives
ways of reaching
objectives
STEP 2
Developing premises
upon which each
alternative is based
Choosing the best
alternatives for
reaching objectives
Developing plans to
pursue chosen
alternatives
Putting plan into
action
STEP 3
STEP 4
STEP 5
STEP 6
32
ACTIVITY :
1.
2.
3.
4.
REFERENCES :
1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6 th ed
2001, Prentice Hall.
2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6 th
and,1995, Prentice Hall.
3. Locke, E.A and Latham, G.P.1990. A theory of Goal setting and Task
Performance. Eaglewood Cliffs NJ: Prentice Hall.
33
ORGANIZING
4.0
DEFINITION OF ORGANIZING
4.1
IMPORTANT OF ORGANIZATION
4.2
ORGANIZATIONAL STRUCTURE
4.3
ORGANIZATION CHART
4.4
DIVISION OF WORK
4.5
4.6
4.7
DECENTRALIZATION/ DEPARTMENTALIZATION
Learning objectives:
After completing this chapter student will be able to :
1)
2)
3)
4)
5)
34
4.0
ORGANIZING
4.1
Definition :
The formal way for managers to divide work coordinate task, delegate authority and
responsibility to achieve organizational objectives.
To structure / arrange the relationship between people, the work done and facilities so that
goals are achieved.
4.2
Why organizing?
-
4.3
Important of Organizing
1.
2.
3.
4.
4.4
4.5
Specialization
Standardization
Coordination
Authority
35
a)
Specialization :
b)
Standardization :
How?
Description, instructions, rules and regulations to standardize subordinates
jobs success
Application forms will standardize the selection of employees.
On the job training programs will promote standardized skills and
reinforce values to organizations success.
c)
Coordination :
How?
In bureaucratic organization rules and regulations. In less structure- coordination
requires knowledge of company wide problems, a willingness to share
responsibility and effective interpersonal communication.
d)
Authority :
Right to make decision and take actions. Various organization distribute authority
differently.
Centralized organization- top manages make decision, communicate to lower
managers.
Decentralized organization Greater decision making responsibility is given to
lower level managers.
36
4.6
ORGANIZATION CHART :
The way to describe the four elements including the location of positions,
departments and function within the organization. Five major information found
in the organization chart are:
1.
Tasks
Indicates the range of tasks within the organization.
2.
Subdivision
Each box represents a subdivision of the organization that is responsible for a
portion of the work.
3.
Type of work
Label in each box identifies the subdivision area of responsibility.
4.
Levels of managementManagement hierarchy, those reporting directly to the same individual are at the
same level.
5.
Lines of authority
Lines connecting the boxes show the official lines of authority and
communication.
4.7
DIVISION OF WORK :
Work is being divided among members and different jobs related to each other
.This division of work and the grouping together of people is done based on some
common characteristics linked between the activities involved.
4.7.1
37
4.8
Span Of Management:
Number of subordinates who report directly to a given manager.
Types of organization structure:
Flat and steep
4.8.1
Flat
Flat wide span of authority
Advantages
Close
supervision
and
control.
Rapid
communication
between
subordinates and superior.
Disadvantages
4.8.2
38
4.9
AUTHORITY
The right to make decision with respect to work assignments and to require
subordinates to perform assigned tasks in accordance with the decision made.
Authority is delegate from top. Each employee and each superior should know
Job suppose to accomplish
Duties
Authority
His supervisor
Subordinates
Levels of performance
Authority is a type of power. It is legitimate.
4.9.1
Line authority
A manager is responsible for the work of his unit and its direct contributions to
the objectives of the organization.
4.9.2
Staff authority
Each individual or group pays a supporting role and contributes to the objectives
of the organization.
4.10
DELEGATION:
the passing of formal authority to another person.
Includes responsibility, authority and accountability.
Superior delegate authority to subordinates in order to facilitate work being
accomplished.
Why delegate?
Culture of organization
Specific situation involved.
Relationship behavior personalities and capabilities of the people in that
situation.
Guide lines for effective delegation authority.
Responsibility, authority and accountability.
Scalar principle:
To whom
Who can delegate
To whom they are accountable
Unity of command
Each employee report to only one superior.
39
4.11
4.12
POWER:
Ability to exert influence. A process where managers affect others behavior.
5 types of power:
a)
Reward power:
Money, acceptance, praise, promotion, status
b)
Expert power
Influence others through knowledge
c)
Referent power
Status, money, physical appearance, fame
d)
Coercive power
Pain, ridicule, penalty, rejection and denial of rewards.
f)
Legitimate power
Position- president, supervisor
CENTRALIZATION
The responsibility and authority concentrated in one place so that major decision
are made by central controlling body. In some situation all managerial decisions
have to be approved by the chief executive before operation.
Advantages :
It provides absolute control over organization.
Administration convenient and the focal point for each function.
Common standards for all in organization.
Disadvantages :
Each section may not have standard procedure.
More reporting and inspection may be needed than if the control were
centralized.
Control can be autocratic and inflexible. It will lead to frustration, managers
members of staff unable to use discretion but according to inflexible rules.
Bureaucratic control methods- Spread of forms and rigid procedures will thus
slow down the operations of the organization.
40
4.13
DECENTRALIZATION : DEPARTMENTALIZATION :It occurs where responsibilities for various functions and operations are taken
away from the center and rests at the point where operations occur.
Four Types :
By function
By product
By territory
By customer
Advantages
Disadvantages
By
Function
Manager is expert in
a narrow range of
skill.
Easier
to
mobilized
special
skills.
Little
coordination
and
interpersonal
skills
needed.
Difficult to make
decision. Difficult
to
determine
accountability.
Does not foster
development
of
general managers.
Promote
conflict
over
product
practices, difficult
to
understand
responsibility
for
overall tasks.
By product
Costly.
Requires
more
personnel
with the general
managers abilities
to fill up the
division
of
maintenance
of
central
services
becomes difficult
when
each
managers need his
own
services.
Division managers
fairly independent,
thus difficult for top
management
to
control.
41
By territory
By
Customer
Difficult
to
coordinate
operations between
competing customer
demands. Requires
managers
and
employees expertise
in
customers
problem.
Advantages:
1.
2.
3.
4.
5.
ACTIVITY :
1.
2.
3.
4.
REFERENCES :
1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6 th ed
2001, Prentice Hall.
2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6 th
and,1995, Prentice Hall.
42
CONTROLLING
1.
DEFINITION OF CONTROLLING
2.
IMPORTANCEOF CONTROLLING
3.
4.
5.
TYPES OF CONTROL
Learning objectives :
After completing this chapter student will be able to :
1.
2.
3.
4.
5.
CONTROLLING
43
5.0
Definition:
-
5.1
Deals with the change, or uncertainty. Plans and goals set by organization
deals with future which is always uncertain and is constantly changing.
E.g market shift, product demand.
5.2
Measure the performance e.g R & D gas in the air. Its depend on the situation
5.3
Take corrective action if the performance does not match the standard then
corrective actions may be include
Characteristics Of Effective System:
44
1.
5.4
wrong decision.
2.
3.
Objective and comprehensiveStandard set must be understandable and measurable. Focused on strategic
control points.(Strategic and results oriented)
4.
5.
6.
Consistent
with
the
organizations
structure(organizational
realistic).Control must be exercised at all level of management.
2.
Steering control
To spot problems as they develop or work process, take corrective actions
before final result are achieve. E.g zero inflation campaign.
3.
4.
ACTIVITY :
45
1.
2.
2.
REFERENCES :
1.
2.
3.
46
Definition of quality
2.
3.
History of TQM
4.
Learning objectives :
After completing this chapter student will be able to:
1.
2.
3.
4.
QUALITY
47
6.0
Definition :
Performance to the standard expected by the customer( Fred Smith, CEO of
Federal Express)
Meeting the customers need the first time and every time.(GSA)
quality involves meeting or exceeding customer expectations.
Quality applies to product, service, people, processes and environments.
(Boeing )
An ever changing state.( what is considered as quality today may not good
enough to be considered quality tomorrow)
6.1
6.2
TRADITIONAL MANAGEMENT
Customer Focus
Management focus
Quality first
Profits first
No worker involve
Process oriented
Result oriented
48
1.
2.
3.
4.
W. Edward Deming
Joseph M. Juran
Philip B. Cosby
Kooru Ishikawa
W. Edward Deming
Joseph M. Juran
Philip B. Cosby
Kooru Ishikawa
Culture system:
Referred as social system. ( set of beliefs and resulting behaviors that are
shared throughout the organization).
49
6.5
b)
Technical system:
Factors such as technologies in the physical infrastructure include
ergonomics consideration, computer software, hardware configuration and
capital investments.
c)
Management system:
Define the effectiveness of those processes by which an organization
manages its human and physical assets.
THE
THREE
SYSTEM
IN
ORGANIZATION
Cross functional
Management goal setting
A focus on customers
50
Employee participation
ACTIVITY :
1.
2.
2.
REFERENCES :
1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6th
ed 2001, Prentice Hall.
2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6 th
and,1995, Prentice Hall.
3. Berry, T.H.1991. Managing the Total Quality Transformation. New York:
McGraw Hill.
51
DECISION MAKING
7.0
7.1
7.2
7.3
7.4
Learning objectives :
After completing this chapter, student will be able to:
1.
2.
3.
4.
5.
DECISION MAKING
52
7.0
7.1
DEFINITION
-
7
Process where a course is selected as the way to deal with a specific
problem.
7.2
PROGRAMMED DECISIONS
It is a repetitive decision that can be handle by a routine approach. It is usually
made in accordance with some established habit, rule or procedure (STONER).
Grievances procedures for employees are an example of programmed decisions.
e.g
53
Highest level
Un structured
Non- programmed
nature of problem
programmed
nature of decision making
Organizational
hierarchy
structured
lowest level
organizational levels
Programmed decisions
Unstructured,
unique,
unusual
or
exceptional problem, requires a higher
level management participation. E.g J.E.
Virus out break.
7.3
Certainty
Risk
Uncertainty
CERTAINTY:
The decision maker knows the out-come of the problems. Individual are fully
informed in terms of :
-
RISK
54
Future condition are unknown in advanced. Some information are available but
not enough to answer all questions and normally most of the management
decisions are made under this condition. Occurs in the situation in which an
individual can define as :
Nature problems
Possible alternatives
UNCERTAINTY
Individual cannot even assign subjective probabilities to possible state of nature
because the individual do have the information or intuitive judgment to use as
basis for assigning the probabilities to each state of nature.
7.1
7.2
Step 4
Implement and monitor the chosen solution
Design the implementation for the chosen situation. Decision makers
responsible for reviewing the plan periodically and comparing the actual
performance with the planned solutions.
State Of Nature Types And Decisions
55
Routine
Decisions
Adaptive
decision
Certainty
Objective probabilities
Innovative
decision
Uncertainty
Subjective probabilities
RISK CONTINUUM
Routine :
Choices made in response to relatively well known problems. Solution obtained from
standard rules, operating procedures and computer programs.
Adaptive:
Combination of moderately. Unusual and partially known problems and alternative
solutions that are modifications of other known and well define solutions.
Innovative:
Involve combining the discovery, identification and diagnosis of unusual and ambiguous
problems with the unique. Novel and creative alternative solutions.
Represents a series of mini decisions made over a period of months or
several years.
Represents an individual decision, involve many people, many and various
time.
Do not unfold in a logical, orderly sequence.
Made in the midst of a lot other managerial tasks.
Differences:
ROUTINE
ADAPTIVE
7.3
INNOVATIVE
of High levels of risks and
certainty.
56
States of nature:
Condition, situations and events that managers cannot control, but influence their
decisions. e.g new technologies, entrance of new competitors into market, new laws and
political instability.
Certainty:
Managers are fully informed of the problem, alternative solutions that will lead to desired
result, probability that certain states of the nature will occur.
Objectives probability:
The likelihood that the state of nature will occur, based on hard facts and figures.
Rational decision and non- rational decision model:
Rational
Make optimal decision, possessing and understanding all information relevant to their
decisions at the time they are made.
Non-rational model
Information gathering and processing limitations make it difficult for managers to make
optimal decisions.
Rational decision :
Permits maximum achievement of an objective within limitations of environment in
which decisions are made. It merges the rationality of the decision maker and the decision
into sequence of basic steps:
1.
Noticing
Managers
Monitor
environmental
forces and decide which are
problems
2.
Interpreting
Managers
Assess the forces they have
notice determine what is
causing it
Incorporation
Managers
Relate their interpretation to
the current or desired state
of
their
department/
organization to the future
problems.
Set objectives
What to be achieve and by what date.
57
3.
thinking
creative,
consulting
5.
6.
experts,
ACTIVITY :
1.
2.
3.
REFERENCES :
1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6th
ed 2001, Prentice Hall.
2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6 th
and,1995, Prentice Hall.
58
LEADERSHIP
7.0
DEFINITION OF LEADERSHIP
7.1
7.2
7.3
7.4
LEADERSHIP FUNCTIONS
7.5
LEADERSHIP STYLES
7.6
7.7
7.8
Learning objectives :
After completing this chapter, student will be able to:
1.
2.
3.
4.
5.
LEADERSHIP
59
8.0
Definition :
Process of directing and influencing the tasks related activities of group members.
( stoner, J.A.F, management, Prentice Hall, New Jersey, 6th edition)
The process of directing human resource efforts toward organizational objectives
( Schermerhorn, John, R ., Management for productivity, John Wiley and Sons,2nd edn)
Four important facts are:
1)
2)
3)
Involves the ability to use the different forms of power to influence, reward,
referent, expert power and legitimate power or authority.
5)
About
responsibilities towards employees.
values
8.1
Importance to organization
1)
2)
3)
Encourage teamwork
4)
8.2
Moral,
obligation
and
Evaluation and selection of leaders are based on their physical, mental and
psychological characteristics. Qualities such as intelligence, charisma,
decisiveness, enthusiasm, strength, bravery, integrity and self confidence.
Leaders have certain inborn personality or leaders are born with certain
characteristic.
60
The traits theory failed to isolate prominent traits to distinguish between leaders
and non- leaders.
8.3
8.4
LEADERSHIP FUNCTION:
Considered to be effective when practices these functions:
Task related/ problem solving function. E.g suggesting solutions, offering
information, opinion, counseling.
-
61
8.5
LEADERSHIP STYLES :
1.
-
2.
Characteristic of Manager:
Warmth and has special rapport with subordinates.
Respect, sensitivity to others needs and mutual trust.
8.6
62
(9.9)
5.5
(1.1)
(9.1)
Impoverished management
people
or
1.9
5.5
9.1
Autocratic/ authoritarian/
management
9.9
Team/
High concern for people and production
participation/democratic/supportive relationships.
Work
accomplishment.
management.
Managers concern for feeling and interests of
the group members. ( Democratic)
63
8.7
Leader :
-
Leader :
Make valued or desired Must change style of leadership
rewards.
according to level of maturity of employees
Clarify to employees the and demands of situation.
kind of behavior
Behavior will contribute to
employees satisfaction.
Increase goal attainment
Clearly
defines
job
requirements,
provide
training, assist employees.
Source for rewards. E.g leaders give
directive, supportive, participative
and
achievement
oriented.
Employees attributes ability, open
minded, self control and experience.
64
Activating subordinates needs for rewards over which the leader has
control e.g A leader explaining to employee how they can qualify for
overtime pay.
b)
c)
Making the path to rewards easier through coaching and direction. E.g
training, helping them to reaching goals.
d)
8.7.2
Phase 2
High R/ship
Low Tasks
High Task
High R/Ship
Phase 4
Phase 1
Low Tasks
Low R/ ship
High Task
Low R/ ship
Low
Low
High
Task Behavior
Maturity
High
Moderate
Immature
Low
65
2.
3.
The level of task maturity the followers ( employees) show towards achieving
specific goals ( tasks or functions) that the leader wants accomplished.
Maturity means :
1.
2.
3.
Explanation :
1.
2.
3.
4.
66
ACTIVITY
1.
2.
If you a boss in any organization, what leadership style you may practice?
3.
REFERENCES
1. Robert Blake and Jane S. Mouton, The managerial grid III,1985 Houston : Gulf
Publishing.
2. Robbins, Stephen P, Management 6th edn 2001, Prentice Hall.
3. Mondy, R. Wayne, Premeaux, Shane R. Management Concepts, Practices and
Skills, 6th edn 1993, Allyu and Bacon.
67
DEFINITION
9.1
MOTIVATION PROCESS
9.2
9.3
Learning objectives :
After completing this chapter, you should be able to :
1.
Explain the concepts of motivation and its significance in the managerial process.
2.
68
9.0
DEFINITION :
The willingness to put forth effort in pursuit of organizational goals. ( R Wayne
Mondy, Management, 4th edition)
tangible higher pay, bonus and benefits
Intangible reputation, respect, recognition or achievement.
Needs ( unfulfilled)
Tension
Drive
Search behavior
Reduction tension
9.1
Motivation process.
Efforts are forces to perform- Individual, manager, employees. People need
organization to achieve goals and organization needs people to achieve its goals.
This lead to effective and efficient organization.
Good motivation practices will help leaders and managers:
1.
Be sensitive to the differences in needs and values. Increase your
employees expectations that their efforts lead to effective performance.
2.
Increase your employee expectation that their efforts will lead to effective
performance.
3.
Encourage your subordinates to set performance goals that are specific,
challenging and attainable.
9.3.
2.
The Human Relation Model, which related to Elton Mayo and Hawthorne
studies.
Management policies
Human Relation
Model
1)
Work
us 1)People want to
inherently
feel useful.
distasteful to most
people.
2) Need to belong
2) What people do to
a
group,
is less important organization to be
rather than what recognized.
they learn for
doing it.
3) Few people
want to work to
involve in work
that
requires
creativity,
self
direction or self
control.
1.Manager should 1.Manager should
closely supervise make each worker
and
control feel useful
subordinates.
2.Should
keep
2.Manager must subordinates
break down task informed
and
into
simple, listen to their
repetitive, easily objectives.
learned
operations.
3.
Allow
3. Must establish subordinates
to
detailed
work exercise
self
routine
and control and self
procedures
direction
on
routine matters.
Human
Resources
Model
1.People
want
to
contribute
to
meaningful goals.
2.
Most
people
exercise
more
creativity,
self
direction and self
control
than their
present job demand.
70
full
General expectations
1.People
can
tolerate work if
pay is decent and
boss is fair.
2. If tasks are
simple, people are
closely controlled
they will produce
work that is up to
standard.
9.4
1.
Sharing
information with
subordinate and
involving them in
routine decisions
will satisfy their
basic needs to
belong and to feel
important.
1.Expanding
subordinates influence
self direction and self
control will lead to
direct improvement.
2. Work satisfaction
may improve as a by
product
of
subordinates making
full use of their
resources.
b)
Process theory
c)
Reinforcement theory
A)
B)
PROCESS THEORY
Process where individuals give meaning to rewards that will allow them to
influence their behavior or process theory explain how individuals are
motivated or the steps that occur when individuals are motivated.
( Herzberg two factors theory/ hygiene theory)
C)
REINFORCEMENT THEORY
Describes how people learn patterns of behavior based on environmental
reinforcements. This means behavior with positive consequences tends to
be repeated, vise versa.( Theory X and Y.)
9.4.1
HIERARCHY OF NEEDS
71
Introduced by Abraham Maslow. He states that all people possessed a set of five
needs in them. These needs are arrange in a hierarchical order . They are the lower
order needs and the higher order needs.
higher order
Self-esteem needs
Social needs
Safety needs
lower
Order needs
Physiological needs
1.
Physiological needs
These need are our basic needs. These are for our survival. E.g food, water,
and shelter from environment
2.
3.
4.
5.
72
9.4.2
HYGIENE FACTORS
Also known as dissatisfier factor. It associated with the work setting of an
individual. Often called as job content. It causes feeling of job
dissatisfaction.
b)
SATISFIER FACTOR
Also known as motivating factor. It associated with job context, Satisfier
factor is related to the job content of individuals. Satisfier causes feelings
of satisfaction.
73
The factors that will contribute to employees satisfaction will be the satisfaction
factor. Therefore, the managerial implications associated with the two factor
theory are:
1. Improvements made in the hygiene factors can prevent or eliminate job
dissatisfaction. However, they will not improve job satisfaction.
2. Improvements made in the satisfier factors can increase job satisfaction.
However they will not prevent job dissatisfaction.
To motivate, managers need to turn their attention away from hygiene factors and
focus on improving satisfier factors.
9.4.3
74
ACTIVITY
1.
2.
REFERENCES :
1.
2.
Holt. David H., Management, Principles and Practices, 3rd edn. Prentice
Hall, New Jersey,1993.
3.
Schermerhorn, John R., Management for Productivity, 2nd edn, John Wiley
and Sons.
4.
75
DEFINITION OF COMMUNICATION
2.
3.
4.
CHANNELS OF COMMUNICATION
5.
6.
OVERCOMING BARRIERS
Learning Objectives :
After completing this chapter, student will be able to :
1.
2.
3.
4.
5.
76
COMMUNICATION
10.0
DEFINITIONS :
Websters dictionary the arts of expressing ideas. The science of transmitting
information.
OR
Oxford English dictionary Imparting, conveying or exchange of ideas,
knowledge etc.. by speech, writing or sign, bringing in with exchange.
OR
The process by which people seek to share meaning via the transmission of
symbolic messages.
In organization Disseminating of information through memos, letters, reports
and newsletters. Discuss face to face meeting. Organizational communication.
Process of sending and receiving messages among individuals and groups called
interpersonal communication.
10.1
2.
3.
4.
5.
77
COMMUNICATION PROCESS
Classic model of communication developed by Shannon based on fine questionwhosays what---- in what way -----to whom----with what effect.
Noise
Sender
encording
message
Medium
decording
Noise
Receiver
Noise
Feedback
Sender
Encoding
Medium
Message
Decoding
Receiver
Feedback
Noise
78
10.3
FORMAL COMMUNICATION
Information flows around organization whether or not they try to control it.
a)
Vertical communication:
Downward- In the form of instruction and information e.g policies,
procedures, rules, work schedules.
Upward through suggestion schemes or some other form of feedback to
management. Convey info to their superior.
b)
Lateral communication
Horizontal communication
at the same level.
INFORMAL COMMUNICATION
-
Gossip
probability
L
DE F G H T I K
Cluster
N
J
B
I
D
A
B
B
A
79
10.4
10.5
LEVEL OF COMMUNICATION
1.
Intrapersonal communication
Between you and god
2.
Interpersonal communication
Deals with communication between people usually face to face.
3.
Group communication
Relates to the interaction of people in a small groups, usually in
decision making setting.
4.
Organizational communication
Occurs in large cooperative networks and include virtually all aspects
of both interpersonal and group communication.
5.
Mass Communication
Deals with public communication . Received by or used by large
number of people ( postal service, internet etc)
2.
Manageability
3.
4.
Motivation
5.
Team spirit
6.
Crisis preparation
7.
Participative staff
8.
80
10.6
NON-VERBAL COMMUNICATION
Means of gestures and to express
feelings and emotions. Face expression
and movement, voice tone, posture,
hand gesture, body placement, clothing,
dress and appearance
It is in form record and evidence. Info Obtain feedback, learn to relax when
well kept, easy to retrieved.
communicate, use facial, hand and body
Verbal face to face, speed up gesture to supplement speech, avoid
exchanging ideas and get direct using the same non verbal, use role
feedback.
playing, use mirroring to establish
rapport.
10.7
Poor listening
2.
Semantic
Certain words may be interpreted differently by different people.
3.
Filtering
Alteration of information to make it interesting, positive and acceptable to
the receiver.
4.
5.
Noise
Factor interferes, confuse or disturb the messages from reaching the
receiver.
81
10.8
Obtain feedback
Ask question, repeat message, visit site.
2.
3.
Recognized emotions
Empathy
4.
5.
Avoid noise
Identify it cause or sources.
6.
7.
8.
82
ACTIVITY :
1.
2.
3.
Discuss
how
REFERENCES :
1.
Holt. David H., Management, Principles and Practices, 3rd edn. Prentice
Hall, New Jersey,1993.
2.
Schermerhorn, John R., Management for Productivity, 2nd edn, John Wiley
and Sons.
3.
Stoner, J.A.F., Freeman, Edward R., and Gilbert, Daniel Jr., Management,
6th edn, Prentice Hall, 1995.
83
84
85