MANAGEMENT

FOUR MANAGEMENT FUNCTION THE CONTIGENCIES INCLUDE:

1. PLANNING-develop goals and activities 1. Internal strength and weakness of the organization
2. ORGANIZING- coordinate resources 2. The values, goals, skills and attitude of managers and
3. LEADING- motivate people to reach your goals workers
4. CONTROLLING- monitor the performance 3. Type of tasks, resources and technology the organization
ORGANIZING- systematic arrangement of people brought together used
to accomplish some purposes DIFFERENT APPROACHES
PEOPLE DIFFERENCES CLASSICAL- systematic, administrative, bureaucratic
1. OPERATIVES- people who work directly on a job
2. MANAGERS- individuals in an organizations FEDRICK TAYLOR- advocate the use of economic principle also
ORGANIZATIONAL LEVELS the time and motion study
1. OPERATIVES FRANK AND LILIAN GILBRET- terblins
2. FIRST-LINE MANAGERS- supervisor responsible for day ACCORDING TO HENRY FAYOL activities of an industrial
to day activities enterprises can be group to six categories:
3. MIDDLE MANAGERS- between FS and TM 1. Technical-processing production and operation
4. TOP MANAGERS- responsible for making decisions 2. Commercial- buying, selling and exchange
MANAGEMENT- getting things done effectively and efficiently 3. Financial- optimum use of capital
through with the owner 4. Security- protection of asset and resources
EFFECTIVE- achieve organizational goals (high attainment) 5. Acoounting- ascertaining the financial position
EFFICIENT- to minimize economic resources (LOW WASTE) 6. Managerial-optinum use of resources of optimum result
MINTZBERG's MANAGERIAL ROLES ACCORDING TO FAYOL DESCRIBED MANAGEMENT AS A
1. INTERPERSONAL ROLES- involve people and other SCIENTIFIC PROCESS BUILT UP FIVE:
duties 1. Planning
2. INTERNATIONAL ROLES- involve collecting, receiving 2. Organizing
and disseminating information 3. Commanding(directing)- supervising and motivating
3. DECISIONAL ROLES- entail making decision or choices 4. Coordinatingbringing together the elements
INTERPERSONAL INTERNATIONAL DECISIONAL 5. Controlling
Figurehead monitor Interpreneur 14 PRINCIPLES
Leader disseminator Disturbance handler 1. Division of work - specialisation provides the individual to
licison spokeperson Resources allocator build up experience, continuous improvement in skills, and
Negotiator
thereby be more productive.
MANAGEMENT SKILLS 2. Authority - the right to issue commands, along with which
1. TECHNICAL SKILLS- job specific knowledge and must go the balanced responsibility for its function
techques neede to proficiently perform work task 3. Discipline - which is two-sided, for employees only obey
2. HUMAN SKILLS- ability to work well with other people orders if management play their part by providing good
both individual and in group leadership.
3. CONSEPTUAL SKILLS- ability to see the organization as a 4. Unity of Command - each worker should have only one boss
whole with no other conflicting lines of command.
WHY STUDY MANAGEMENT? 5. Unity of direction - people engaged in the same kind of
''The reality of work you will either manage or to be manage.'' activities must have the same objectives in a single plan
6. Subordination of individual interest to general interest -
management must see that the goals of the firms are always
paramount.
7. Remuneration - payment is an important motivator although
by analysing a number of possibilities, Fayol points out that
there is no such thing as a perfect system
8. Centralisation or decentralisation - this is a matter of degree
depending on the condition of the business and the quality of
its personnel
9. Scalar chain (line of Authority) - a hierarchy is necessary for
unity of direction but lateral communication is also
fundamental as long as superiors know that such
communication is taking place.
10. Order- both material order and social order are necessary.
The former minimises lost time and useless handling of
materials. The latter is achieved through organisation and
selection.
11. Equity - in running a business a 'combination of kindliness
and justice' is needed in treating employees if equity is to be
achieved.
12. Stability of tenure - this is essential due to the time and
expense involved in training good management.
13. Initiative - allowing all personnel to show their initiative in
some way is a source of strength for the organisation even
though it may well involve a sacrifice of 'personal vanity' on
the part of many managers
14. Esprit de corps - management must foster the morale of its
employees. He further suggests that, "real talent is needed to
coordinate effort, encourage keenness, use each person's
abilities, and reward each one's merit without arousing
possible jealousies and disturbing harmonious relations."
Harmony and pulling together among personnel.
Henri Fayol (1841-1925) was a French management theorist
whose theories in management and organisation of labour were
widely influential in the beginning of 20th century. He was a
mining engineer who worked for a French mining company
Commentry-Fourchamboult-Decazeville, first as an engineer,
then moved into
general management and Managing Director from 1888 to 1918.
During his tenure as MD he wrote various articles on
administration and in 1916 The
Bulletin de la Société de l’ Industrie Minérale, printed his
Administration, Industrielle
et Générale – Prévoyance, Ogranisation, Commandement,
Coordination, Contrôle.
In 1949 the first English translation appeared and titled 'General
and Industrial
Management' by Constance Storrs.
Fayol was the first to identify the four functions of management:
planning,
organizing, directing, and controlling, as known today.
His original definition of management comprised of five
elements: forecast & plan,
organise, command, coordinate, and control.
Bureaucratic management theory developed by Max Weber,
contained two essential elements, including structuring an
organization into a hierarchy and having clearly defined rules to help
govern an organization and its members.
Max Weber (1864-1920), a German sociologist; described a theory
to operate an organization in an effective way which is known as the
Bureaucratic management approach or Weberian bureaucracy.
Max Weber’s work was oftentimes interpreted as a caricature of
modern bureaucracies with all of their shortcomings.
Max Weber’s six characteristics of the bureaucratic theory
The 6 bureaucracy characteristics are:
1. Task specialisation (Specialization and Division of Labor)
2. Hierarchical of authority
3. Formal selection
4. Rules and requirements
5. Impersonal (Impersonality and Personal Indifference)
6. Career orientation
ELTON MAYO
Hawthorne Experiment Conclusions
After analysing the results from the Hawthorne experiments Mayo Theory Y. According to McGregor, the perception of managers on
concluded that workers were motivated by more than self interest the nature of individuals is based on various assumptions.
and the following had an impact too:
1. Psychological Contract-There is an unwritten understanding Assumptions of Theory -Many employees rank job security on top,
between the worker and employer regarding what is and they have little or no aspiration/ ambition. Employees generally
expected from them; Mayo called this the psychological dislike responsibilities. Employees resist change. An average
contract. employee needs formal direction.
2. Interest in Workers-A worker’s motivation can be increased Assumptions of Theory Y-Employees can perceive their job as
by showing an interest in them. Mayo classified studying the relaxing and normal. They exercise their physical and mental efforts
workers (through the experiments) as showing an interest in in an inherent manner in their jobs.
the workers.
3. Work is a Group Activity-Work is a group activity, team Open Versus Closed System
work can increase a worker’s motivation as it allows people A business that operates an open system interacts with its
to form strong working relationships and increases trust environment through giving and receiving information. In a closed
between the workers. Work groups are created formally by system, interactions only happen within the specific system, which
the employer but also occur informally. Both informal and means closed systems are shut off from the outside environment, and
formal groups should be used to increase productivity as every interaction is transmitted inside that closed system. Workers in
informal groups influence the worker’s habits and attitudes. closed systems within an organization don’t communicate with other
4. Social Aspect of Work-Workers are motivated by the social departments about their activities, nor do they receive input from
aspect of work, as demonstrated by the female workers other departments.
socialising during and outside work and the subsequent
increase in motivation.
5. Recognise Workers-Workers are motivated by recognition,
security and a sense of belonging.
6. Communication-The communication between workers and
management influences workers’ morale and productivity.
Workers are motivated through a good working relationship
with management.
Conclusion - The traditional view of how to motivate employees is
that you offer monetary rewards (pay increases, bonuses etc) for
work completion. However the Hawthorne experiments may suggest
that motivation is more complicated than that. Advocates of the
"Hawthorne Effect" will state that the Hawthorne experiment results
show that motivation can be improved through improving working
relationships and social interraction.

1960, Douglas McGregor formulated Theory X and Theory Y

suggesting two aspects of human behaviour at work, or in other
words, two different views of individuals (employees): one of which
is negative, called as Theory X and the other is positive, so called as