Assignment

Course Name: Strategic Management

Course ID: MBA 650

Submitted To:

Dr. Moslehuddin Chowdhury Khaled

Associate Professor
Chittagong Independent University

Submitted By:
Sara Dilshad
ID: 20251038

Date of Submission: 28.09.2020

What is Organization?
Organization

Organization refers to a collection of people, who are involved in pursuing defined objectives. It can be
understood as a social system which comprises all formal human relationships. The organization
encompasses division of work among employees and alignment of tasks towards the ultimate goal of the
company.

It can also be referred as the second most important managerial function, that coordinates the work of
employees, procures resources and combines the two, in pursuance of company’s goals.

Process of Organization

Step 1: Determination and classification of firm’s activities.

Step 2: Grouping of the activities into workable departments.

Step 3: Assignment of authority and responsibility on the departmental executives for undertaking the
delegated tasks.

Step 4: Developing relationship amidst superior and subordinate, within the unit or department.

Step 5: Framing policies for proper coordination between the superior and subordnate and creating
specific lines of supervision.

Organization is a goal oriented process, which aims at achieving them, through proper planning and
coordination between activities. It relies on the principle of division of work and set up authority-
responsibility relationship among the members of the organization.

Source: https://businessjargons.com/organization.html

What is Management?

Management is the coordination and administration of tasks to achieve a goal. Such administration
activities include setting the organization’s strategy and coordinating the efforts of staff to accomplish
these objectives through the application of available resources. Management can also refer to the
seniority structure of staff members within an organization.
Management styles

Analysts who study management have identified several effective leadership styles. There is no one best
style of management, and some people will feel more personally suited to one type or another. You can
also select elements of different styles of management to create the best archetype for you and your
company.

Persuasive management style

A compelling leader spends a lot of time with their team members. Being engaged with employees
allows the persuasive manager to lead by example, and to gain buy-in and compliance from the team by
persuading rather than instructing or demanding. Influential managers are aware of the work that their
team members are doing on a day-to-day basis and are involved in their work lives.

Democratic management style

A democratic manager invites the team to be directly involved in decision-making. Open lines of
communication between democratic managers and employees allow these types of managers to
understand the skills and advantages that each employee brings to the table. Open participation and
exchange of ideas among different levels of employees allow everyone to contribute to the outcome of
a decision or a project.

This style of management is more successful when managers develop organized and streamlined
decision-making processes. Otherwise, accepting input from everyone can make the process sluggish
and disorganized.

Three layers of management

Large businesses and corporations often have three primary levels of management organized in a
hierarchical structure. You may have heard terms that refer to these different layers of management,
such as “middle management” or “senior management.”
Low-level management

Low-level managers include roles like front-line team leaders, foremen, section leads and supervisors.
This level of management, the lowest in the three layers, is responsible for overseeing the everyday
work of individual employees or staff members and providing them with direction on their work.

Low-level management’s responsibilities often include ensuring the quality of employees’ work, guiding
staff in everyday activities and routing employee problems through the appropriate channels. They also
are responsible for the day-to-day supervision and career planning for their team, as well as providing
feedback on their employees’ performance.

Middle management

Middle managers, the next layer in the management hierarchy, are overseen by senior
management. Middle management includes those working in the roles of a department manager,
regional manager and branch manager. Middle management is responsible for communicating the
strategic goals developed by senior management down the line to front-line managers.

In contrast with senior management, middle managers spend more of their time on directional and
organizational functions. This includes defining and discussing important policies for lower
management, providing guidance to lower-level management to achieve better performance and
executing organizational plans at the direction of senior management.

Senior management

Senior management, including the chief executive officer, president, vice president and board members,
is at the top layer of this management hierarchy. Senior management needs to set the overall goals and
direction of an organization. Senior management develops strategic plans and company-wide policy and
makes decisions about the direction of the organization at the highest level. They also usually play an
essential role in mobilizing outside resources and are held accountable to the company’s shareholders
as well as the general public for the performance of the company.

Source: https://www.indeed.com/career-advice/career-development/what-is-management

What is Planning
Planning is the fundamental management function, which involves deciding beforehand, what is to be
done, when is it to be done, how it is to be done and who is going to do it. It is an intellectual process
which lays down an organization’s objectives and develops various courses of action, by which the
organization can achieve those objectives. It chalks out exactly, how to attain a specific goal.

Planning is nothing but thinking before the action takes place. It helps us to take a peep into the future
and decide in advance the way to deal with the situations, which we are going to encounter in future. It
involves logical thinking and rational decision making.

Characteristics of Planning

Managerial function:
Planning is a first and foremost managerial function provides the base for other functions of the
management, i.e. organizing, staffing, directing and controlling, as they are performed within the
periphery of the plans made.

Goal oriented:

It focuses on defining the goals of the organization, identifying alternative courses of action and
deciding the appropriate action plan, which is to be undertaken for reaching the goals.

Pervasive:

It is pervasive in the sense that it is present in all the segments and is required at all the levels of the
organization. Although the scope of planning varies at different levels and departments.

Continuous Process:

Plans are made for a specific term, say for a month, quarter, year and so on. Once that period is over,
new plans are drawn, considering the organization’s present and future requirements and conditions.
Therefore, it is an ongoing process, as the plans are framed, executed and followed by another plan.

Intellectual Process:

It is a mental exercise at it involves the application of mind, to think, forecast, imagine intelligently and
innovate etc.

Futuristic:

In the process of planning we take a sneak peek of the future. It encompasses looking into the future, to
analyses and predict it so that the organization can face future challenges effectively.

Decision making:

Decisions are made regarding the choice of alternative courses of action that can be undertaken to
reach the goal. The alternative chosen should be best among all, with the least number of the negative
and highest number of positive outcomes.

Planning is concerned with setting objectives, targets, and formulating plan to accomplish them. The
activity helps managers analyze the present condition to identify the ways of attaining the desired
position in future. It is both, the need of the organization and the responsibility of managers.

Source: https://businessjargons.com/planning.html

What is Organizing?
Organizing is a “process of defining the essential relationships among people, tasks and activities in such
a way that all the organization’s resources are integrated and coordinated to accomplish its objectives
efficiently and effectively”. — Pearce and Robinson

Process of Organizing:

The process of organizing involves the following steps:

(i) Determination of Objectives:

Every organization is established for some objective or goal. Various tasks are determined to achieve
this goal. For example, if the organization is established to export goods, it determines the nature and
type of goods to be exported, sources from where raw material will be obtained, countries where goods
will be exported, co-ordinate with foreign buyers etc. Determining the workload of the organization is
the first step in the process of organizing.

(ii) Division of Activities:

Since one person cannot manage all the activities, total task is broken into smaller units and assigned to
members. Work is assigned according to qualification and ability of every person.

Division of work leads to specialization which has the following benefits:

(a) Greater output:

Adam Smith illustrated a study where one person could manufacture 20 pins a day if he worked alone.
Production of pin was broken into sub-activities where each person carried out the following specialized
tasks: Drawing out the wire – straightening the wire – cutting the wire – grinding the point – polishing it
– putting the pin head and so on. It was observed that as against 20 pins produced by one person in a
day, division of work and its specialization enabled 10 people to produce 48, 000 pins in a day — watch
the wonders of specialization.

(b) Efficiency:
Performing the same task over and over again increases skill and efficiency of the workers.

(c) Facilitates training of less-skilled workers:

Since the complex task is broken into smaller units, less-skilled workers can be trained to carry out those
activities.

(iii) Grouping of Activities:

After the work is assigned to people, those performing similar activities are grouped in one department.
Various departments like sales, finance, accounting etc. are filled with people having different skills and
expertise but performing similar activities. Grouping of activities into departments is called
departmentalization and every department is governed by a set of rules, procedures and standards.

(iv) Define Authority and Responsibility:

Every department is headed by a person responsible for its effective functioning. Departmental heads
are appointed to carry out the activities of their respective departments. It is ensured that competence
of departmental head matches job requirements of the department.

Every head has authority to get the work done from his departmental members. He delegates
responsibility and authority to members of his department. This creates a structure of relationships
where every individual knows his superiors and subordinates and their reporting relationships.

(v) Co-Ordination of Activities:

When departments work for their objectives, there may develop inter-departmental conflicts which can
obstruct the achievement of organizational goals. For example, finance department wants to cut the
costs but the marketing department needs additional funds to market its products; this conflict can be
resolved through co-ordination so that all departments share the common resources optimally. Work
can be coordinated by defining relationships amongst various departments and people working at
different positions.
(vi) Reviewing and Re-organizing:

There is constant appraisal of the organizing process so that changes in the structure can be made
consequent to changes in the environmental factors. Constant appraisal and re-organization is an
integral part of the organizing process.

Source: https://www.businessmanagementideas.com/management/fundamentals-of-
organising/organising-meaning-process-and-principles/4845

What is Leading?

Leading involves the social and informal sources of influence that you use to inspire action taken by
others. If managers are effective leaders, their subordinates will be enthusiastic about exerting effort to
attain organizational objectives.

The behavioral sciences have made many contributions to understanding this function of management.
Personality research and studies of job attitudes provide important information as to how managers can
most effectively lead subordinates. For example, this research tells us that to become effective at
leading, managers must first understand their subordinates’ personalities, values, attitudes, and
emotions.

Studies of motivation and motivation theory provide important information about the ways in which
workers can be energized to put forth productive effort. Studies of communication provide direction as
to how managers can effectively and persuasively communicate. Studies of leadership and leadership
style provide information regarding questions, such as, “What makes a manager a good leader?” and “In
what situations are certain leadership styles most appropriate and effective?”

Source: https://open.lib.umn.edu/principlesmanagement/chapter/1-5-planning-organizing-leading-and-
controlling-2/

What is Controlling?
Controlling involves ensuring that performance does not deviate from standards. Controlling consists of
three steps, which include (1) establishing performance standards, (2) comparing actual performance
against standards, and (3) taking corrective action when necessary. Performance standards are often
stated in monetary terms such as revenue, costs, or profits but may also be stated in other terms, such
as units produced, number of defective products, or levels of quality or customer service.

The measurement of performance can be done in several ways, depending on the performance
standards, including financial statements, sales reports, production results, customer satisfaction, and
formal performance appraisals. Managers at all levels engage in the managerial function of controlling
to some degree.

The managerial function of controlling should not be confused with control in the behavioral or
manipulative sense. This function does not imply that managers should attempt to control or to
manipulate the personalities, values, attitudes, or emotions of their subordinates. Instead, this function
of management concerns the manager’s role in taking necessary actions to ensure that the work-related
activities of subordinates are consistent with and contributing toward the accomplishment of
organizational and departmental objectives.

Effective controlling requires the existence of plans, since planning provides the necessary performance
standards or objectives. Controlling also requires a clear understanding of where responsibility for
deviations from standards lies. Two traditional control techniques are budget and performance audits.
An audit involves an examination and verification of records and supporting documents. A budget audit
provides information about where the organization is with respect to what was planned or budgeted
for, whereas a performance audit might try to determine whether the figures reported are a reflection
of actual performance. Although controlling is often thought of in terms of financial criteria, managers
must also control production and operations processes, procedures for delivery of services, compliance
with company policies, and many other activities within the organization.

Source: https://open.lib.umn.edu/principlesmanagement/chapter/1-5-planning-organizing-leading-and-
controlling-2/

What is Effectiveness?

Effectiveness, in business, refers to the level of quality with which a task or process is carried out that
ultimately leads to higher overall business performance.

It is how well a business and the people in it perform value-creating tasks, and how well the business
functions worth together. Effectiveness can be applied to many parts of business activities.
From a managerial standpoint, a business is effective if its people are performing their required tasks.
The more consistently employees perform tasks properly, the more effective they are. This includes
proper use of communication, technology, organizational and individual knowledge, and resources.

Measures of effectiveness can also be used to describe production in a manufacturing setting. In this
case, a process is considered effective if the outcome achieved the desired specifications. In other
words, did the product turn out the way that the organization intended? Over a period of time, the
more often that products come out meeting specified criteria, the more effective the process is
considered. One important note is that effectiveness does not measure efficiency. In other words,
effectiveness does not measure how much time or inputs are used in production.

Source: https://www.myaccountingcourse.com/accounting-dictionary/effectiveness

What is Efficiency?

Efficiency signifies a peak level of performance that uses the least amount of inputs to achieve the
highest amount of output. Efficiency requires reducing the number of unnecessary resources used to
produce a given output including personal time and energy. It is a measurable concept that can be
determined using the ratio of useful output to total input. It minimizes the waste of resources such as
physical materials, energy, and time while accomplishing the desired output.

Understanding Efficiency

In general something is efficient if nothing is wasted and all processes are optimized. In finance and
economics, efficiency can be used in a variety of ways to describe various optimization processes.

Economic efficiency refers to the optimization of resources to best serve each person in that economic
state. No set threshold determines the effectiveness of an economy, but indicators of economic
efficiency include goods brought to market at the lowest possible cost and labor that provides the
greatest possible output.

Market efficiency describes how well prices integrate available information. Markets are thus said to be
efficient when all information is already incorporated into prices, and so there is no way to "beat" the
market since there are no undervalued or overvalued securities available.
Market efficiency was described in 1970 by economist Eugene Fama, whose efficient market hypothesis
(EMH) states that an investor can't outperform the market, and that market anomalies should not exist
because they will immediately be arbitraged away.

Operational efficiency measures how well profits are earned as a function of operating costs. The
greater the operational efficiency, the more profitable a firm or investment is. This is because the entity
is able to generate greater income or returns for the same or lower cost than an alternative. In financial
markets, operational efficiency occurs when transaction costs and fees are reduced.

Source: https://www.investopedia.com/terms/e/efficiency.asp

Importance of Good management

Importance of management for every business organization are: 1. Management helps in Achieving
Group Goals 2. Management Increases Efficiency 3. Management Creates a Dynamic Organization 4.
Management helps in Achieving Personal Objectives 5. Management helps in the Development of the
Society.

In absence of efficient management the resources will remain resources and cannot be converted into
finished products.

1. Management helps in Achieving Group Goals:

Organization consists of number of persons who work as a group. Management helps in achieving group
goals by giving a common direction to the individual effort.

For example, an employee’s objective is to earn maximum wages whereas the organisational objective is
to maximize output. Employees can achieve their objectives by maximizing output which helps in the
achievement of organizational goal too. This is what management strives to achieve.
2. Management Increases Efficiency:

The main aim of every manager in any organization is to minimize the cost and to increase the output
through effective planning, organizing, directing, staffing, controlling etc. Efficiency increases when we
use fewer resources (i.e. inputs) and achieve more benefit or output.

In any organization, input resources are men, money, material and machinery. Management uses these
inputs efficiently by properly allocating them to reduce the wastage which ultimately decreases cost and
thus leads to higher profits.

3. Management Creates a Dynamic Organization

The environment in which an organization works is subject to continuous changes and the people
working in the organization resist change because they don’t want to move from a familiar and secure
environment to a new environment.

An organization must change itself and its goal according the needs and aspirations of the environment.
Management helps to adapt to these changes in order to be successful. For example, to survive in the
Indian market, Mc Donald, a leader in fast foods, has made major changes in its menu.

4. Management helps in Achieving Personal Objectives:

Management not only helps in achieving the organizational objectives but also the personal objectives
of the employees. With the help of self motivation and leadership techniques, management helps
individuals to develop spirit of cooperation, commitment and team spirit etc. that help them to achieve
their personal goals as well.

5. Management helps in the Development of the Society:

An organization has many obligations towards different groups that constitute it. The process of fulfilling
all the objectives must help in growth and development of the organization as well as society.

For example, providing better quality goods and services, generating employment opportunities,
increasing the wealth of the nation, providing fair wages to the workers etc. Effective management helps
the organization in fulfilling all these obligations.
Five biggest differences between good managers and bad ones.

1. Good managers assume their employees are trying to do the right thing. Bad managers assume bad
intent. They are suspicious, so when something goes wrong, they jump to blame and punishment right
away. Good managers take speed bumps in stride. They go to a higher place, and ask "Ah! So that
customer was angry? What can we learn from that? What can we change in our process or our
communication? We'll learn something from this. It's good this happened!"

2. Good managers understand the Passion-Performance Connection. When somebody on their team is
fired up with an idea, they know that their job is to clear away obstacles, not put obstacles up! They
never say "That's not our policy." Instead, they say "There's a policy that will get in our way -- let me go
talk to some people and see how we can make it work, regardless." Bad managers don't want to work
that hard. They say "Stop making waves! Just follow the policy. Why do you have to have ideas, anyway?
I don't pay you to think!"

3. Good managers don't sweat the small stuff. They keep their eyes focused on their vision for
themselves, their team and the company. Bad managers can't see the vision. They can't get out of the
muck far enough to see the prize. They wallow in small stuff. They send their teammates email messages
saying things like "You were seven minutes late yesterday, so there's a note in your personnel file." The
fact that you stayed at work (unpaid) until eight p.m. last night finishing an urgent project doesn't enter
their minds.

4. Good managers trust themselves enough to trust the people they supervise. Bad managers don't trust
themselves that much, so they don't trust their team members. They are on constant alert for
infractions of any kind. They count the infractions and constantly threaten their employees by telling
them what happens to people who step out of line.

5. Good managers tell the truth, even when it's hard to do. They tell their managers when something is
broken. Bad managers keep quiet. They're afraid to rock the boat, and would never dream of advocating
for their employees. They don't know what leadership is. All they know is old-school, command-and-
control management. They manage particles and ignore the waves of energy swelling and crashing
around them.
No company can succeed without a vision that is shared by its team members and without healthy
communication zipping up, down and across the organization

Source: https://www.businessmanagementideas.com/management/importance-of-management-for-
every-business-organisation/1783

https://www.forbes.com/sites/lizryan/2016/02/16/the-five-biggest-differences-between-good-
managers-and-bad-ones/#5e272f031e9d

History & Evolution of Management as a Subject

Although management and attempts to improve it are as old as civilization, the systematic study of
management is only just more than one hundred years old. “Management history” refers primarily to
the history of management thought as it has developed during that time, although some work covers
the practice of management all the way back to Antiquity. Because the events, organizations, economic
and social conditions, and even interested scholars are frequently the same, management history
overlaps to some extent with related history fields, most notably business history, economic history, and
accounting history. Management history utilizes the tools and methods of traditional historical analysis
as well as drawing insights from business disciplines and the social sciences. This article includes, first,
initial coverage of source material (introductory works, reference sources, and journals), and then
presents reasons why history is important and provides a rough chronological presentation of major
works for those interested in learning more about management history, from the early practice of
management to the evolution of management thought as it has developed during the past one-
hundred-plus years.

Evolution of Management Concept

The evolution of management thought is a process that started in the early days of man. It began since
the period man saw the need to live in groups. Mighty men were able to organize the masses, share
them into various groups. The sharing was done accord to the masses’ strength, mental capacities, and
intelligence.

The point is that management has been practiced in one way or the other since civilization began. If you
want a good example where advance management principles where applied, consider the organization
of the olden days Roman Catholic Church, military forces as well as ancient Greece.
These are all excellent examples. But the industrial revolution brought drastic change. And suddenly, the
need to develop a more holistic and formal management theory became a necessity.

Stages of the evolution of management thought

This topic is broad, and it also requires careful explanation and thought process. One cannot understand
what it entails or appreciates how it happened without looking at the various areas where the said
evolution occurred. For better understanding, the evolution of management thought will be shared into
four different stages. These include:

 Pre-scientific management period

 Classical theory
 Neo-classical theory or behavior approach
 Bureaucratic Model of Max Weber
 The Pre-Scientific Management Period

The industrial revolution that took place in the 18th century had a significant impact on management as
a whole. It changed how businesses, as well as individuals, raised capitals; organize labor and the
production of goods. Entrepreneurs had access to all the factors of production such as land, labor, and
capital. Theirs was to make an effort to combine these factors to achieve a targeted goal successfully.

However, the new dimension that management took following the industrial revolution cannot be
discussed without mentioning notable personalities who contributed their quarter. They were able to
introduce useful ideas and approaches to give management a precise and universally acceptable
direction. Here are some of them.

Professor Charles Babbage – United Kingdom (1729 – 1871)

Prof Babbage, a renowned professor in mathematics at Cambridge University discovered that

manufacturers were relying on guesswork and suggestions and urged them to utilize mathematics and
science to be more accurate and productive.
Robert Owens – United Kingdom (1771 – 1858)

Robert was regarded as the father of personnel management because of his approach and focus on
employee welfare. He introduced co-operation and trade unions. Robert believed that employee
welfare could determine their performance to a large extent. He encouraged the training of workers,
education for their children, canteens in the workplace, shorter working hours, among others.

Other Contributors to the Pre-Scientific Management Period Include:

Henry Robson Towne – USA

James Watt Junior – United Kingdom

Seebohm Rowntree – United Kingdom

The Classical Theory

Prof Babbage, Robert Owens, and other names earlier mentioned can be regarded as the pioneers of
management. But their contribution to the evolution of management is little. The beginning of what is
known as the science of management started in the last decade of the 19th century. Names like
Emerson, F.W. Taylor, H.L. Grant, and others, paved the way for the establishment of what is called
scientific management.

During the classical period, management thought was focused on job content, standardization, the
division of labor, and a scientific approach towards the organization. It also was closely related to the
industrial revolution as well as the rise of large-scale enterprises.

The Neo-Classical Theory

This period of evolution of management thought is an improvement of the classical theory. In other
words, it modified and improved upon the classical theory. For instance, Classical theory focused more
on the area of job content, including the management of physical resources, while the neo-classical
theory gave more profound emphasis on employee relationships in the work environment.
The Bureaucratic Model

A German Sociologist called Max Weber proposed this model. And it includes a system of rules, division
of labor hinged on functional specialization, legal authority, and power, the hierarchy of authority and
placement of employees based on their technical competence.

The Evolution of Management Theories

Organizations have been shaped and through the writings of several writers. Their write-up consisted of
governance of kingdoms and management of humans. And these formed the literature that helped in
the development of management theories. And these management models were also offered by the
military, political and religious organizations.

For instance, Sun Tzu’s book “The Art of War” was written in the 16th century BC. Sun was also a
Chinese army general. However, the writings in Sun’s book were also used for managerial purposes.

The book highlights that it’s possible to achieve success by using the strength of the organization to
exploit the weakness of rivals. Another great book was Chanakya’s Arthashastra. It was written in the
third century BC and focused on the governance of the kingdom concerning the formulation of policies
of governance and management of people.

Conclusion

The evolution of management started from civilization. So, what we have now is refined and improved
management thoughts and theories. But knowing how this evolution came about is vital. It will help to
improve one’s knowledge of the process and effectively utilize management principles for the
betterment of the organization.

Source: https://www.managementstudyhq.com/evolution-management-thought-theories.html

https://www.oxfordbibliographies.com/view/document/obo-9780199846740/obo-9780199846740-
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