Organization and

Management
What is Management
and what is
organization?
Chapter 1: THE JOB
1.1 Evolution of Management
Management
 is getting things done through people.

 Management is essential for organized life and

necessary to run all types of management. Good
management is the backbone of successful
organizations. Managing life means getting things
done to achieve life’s objectives and managing an
organization means getting things done with and
through other people to achieve its objectives.
Organization
 whether small, medium or large is composed of people.
 A social unit of people that is structured and managed to
meet a need or to pursue collective goals. All organizations
have a management structure that determines relationships
between the different activities and the members, and
subdivides and assigns roles, responsibilities, and authority
to carry out different tasks.
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Organization and Management

 It is the people in these organizations that get the work done.

 To ensure that their assigned tasks are done properly and
efficiently, these people need to be managed.
 Management is a function that directs and coordinates the efforts of
the people to accomplish goals and objectives by using available
resources efficiently and effectively.
 It is also the process of accomplishing organization’s goals by working
with and through people.
 It includes planning, organizing, staffing, leading, or directing and
controlling.
• The Industrial Revolution in light of business concern was to
improve employees’ productivity and efficiency triggered in
the development of management theories.

• Beginning in the late 19th century after the Industrial

Revolution but saw some definitive form in in the 20th
century.

• Industrial Revolution refers to the transition from hand

production to production process, increasing use of steam
power, and development of machine tools.
1910 to 1940s
Management as a Science
 It was developed in the early 20th century and focused on increasing
productivity and efficiency through standardization, division of labor,
centralization and hierarchy.
 A very top down management with a strict control over people and processes
dominated across industries.
1950s to 1960s
Functional Organization

 Due to growing and more complex organizations, the 1950’s and 1960’s saw
the emergence of functional organizations and the Human Resource (HR)
movement.
 Managers began to understand the human factor in production and productivity
and tools such as goal setting, performance reviews and job descriptions were
born
1970s: Strategic Planning

 In the 1970’s we changed our focus from measuring function to resource

allocation and tools like Strategic Planning (GE), Growth Share Matrix (BCG)
and SWOT were used to formalise strategic planning processes. After several
decades of ‘best practice’ and ‘one size fits all’ solutions, academics began to
developing contingency theories
1980s: Competitive Advantage

 As the business environment grew increasingly competitive and connected, and

with a blooming management consultancy industry, Competitive Advantage
became a priority for organizations in the 1980’s. Tools like Total Quality
Management (TQM), Six Sigma and Lean were used to measure processes
and improve productivity. Employees were more involved by collecting data, but
decisions were still made at the top, and goals were used to manage people
and maintain control
1990s: Process Optimization

 Benchmarking and business process reengineering became popular in the

1990’s, and by the middle of the decade, 60% of Fortune 500 companies
claimed to have plans for or have already initiated such projects. TQM, Six
Sigma and Lean remained popular and a more holistic, organization-wide
approach and strategy implementation took the stage with tools such as
Strategy Maps and Balance Scorecards.
2000s: Big Data
 Largely driven by the consulting industry under the banner of Big Data,
organizations in the 2000’s started to focus on using technology for growth and
value creation. Meanwhile, oversaturation of existing market space drove to
concepts such as Blue Ocean Strategy and Value Innovation
.

2000s: Big Data

How we lead our people and how we solve problems and innovate, are some of the most important aspects
of Management to get right. In our research, we’ve therefore looked specifically at two aspects of
Management throughout history, and how these will develop in the future :
1. Management Approach: the style of top management, ranging from:
a. Control (i.e. your boss tells you what to do and how to do it).
b. Set Goals (i.e. your boss sets goals and expectations, but you have more freedom with regards to how
you achieve them).
c. Inspire (i.e. your boss gives you scope and freedom to innovate on both the what and the how).

2. Approach to Innovation / Problem Solving: how leaders solve strategic problems and develop new
products and services. This ranged from:
a. Top Down (i.e. solutions are created and come from the top)
b. Top Down with Bottom Up Data (i.e. the rest of the organization contributes information and experiences,
but solutions are still created at the top).
c. Participatory (i.e. solutions are created collaboratively, and throughout the organizational levels.
After a century of trying to control people, processes and information, we have come to a point in
organizational history where we need to recognize that what worked before just simply isn’t enough
anymore. Traditional Management is fine if you want compliance, but if you want innovation and growth, you
need to engage your people on a whole new level. Top down control is a thing of the past. Succeeding in
today’s environment requires a management style that inspires and is participatory.
Over the next couple of weeks I will discuss the future of organizations, and what it really takes to increase
value creation, innovation and employee engagement in today’s business environment
Early Management Theory

 Today's managers have access to an amazing array of resources which

they can use to improve their skills. But what about those managers
who were leading the way forward 100 years ago?

 Managers in the early 1900s had very few external resources to draw
upon to guide and develop their management practice. But thanks to
early theorists like Henri Fayol (1841-1925), managers began to get the
tools they needed to lead and manage more effectively. Fayol, and
others like him, are responsible for building the foundations of modern
management theory.
Background
 Henri Fayol was born in Istanbul in 1841. When he was 19, he began working as an
engineer at a large mining company in France. He eventually became the director, at a
time when the mining company employed more than 1,000 people.
 Through the years, Fayol began to develop what he considered to be the 14 most
important principles of management. Essentially, these explained how managers
should organize and interact with staff.
 In 1916, two years before he stepped down as director, he published his "14 Principles
of Management" in the book "Administration Industrielle et Générale." Fayol also
created a list of the six primary functions of management, which go hand in hand with
the Principles.
 Fayol's "14 Principles" was one of the earliest theories of management to be created,
and remains one of the most comprehensive. He's considered to be among the most
influential contributors to the modern concept of management, even though people
don't refer to "The 14 Principles" often today.

Fayol's 14 Principles of Management
Fayol's principles are listed below:
1. Division of Work –according to this principle, the whole work is divided
into small tasks. The specialization of the workforce according to the skills of
a person, creating specific personal and professional development within the
labor force, and therefore increasing productivity, leads to specialization
which increases the efficiency of labor. By separating a small part of work,
the worker’s speed and accuracy in his performance increases.

2. Authority and Responsibility–this refers to the issue of commands

followed by responsibility for their consequences. Authority means the right
of a superior to give enhanced order to his subordinates; responsibility
means obligation to performance . This principle suggest that there must be
parity between authority and responsibility. They are co-existent and go
together, and are two sides of the same coin, and the authority must be
commensurate with responsibility.
Fayol's 14 Principles of Management

3. Discipline – discipline refers to obedience, proper conduct in relation to others, respect of

authority, etc. it is essential for the smooth functioning of all organizations. This will also help
shape the culture inside the organization . Discipline is absolutely necessary for enterprises to
function well.
4. Unity of Command –this principles states that each subordinate should receive orders and
accountable to one superior. unity of command also makes it easier to fix responsibility for
mistakes.
5. Unity of Direction – Teams with the same objective should be working under the direction of
one manager, using one plan. This will ensure that action is properly coordinated.
6. Subordination of Individual Interests to the General Interest – The interests of one
employee should not be allowed to become more important than those of the group. This
includes managers.
Fayol's 14 Principles of Management
7. Remuneration – Employee satisfaction depends on fair remuneration for everyone.
This includes financial and non-financial compensation.
8. Centralization – This principle refers to how close employees are to the decision-
making process. It is important to aim for an appropriate balance.
9.Scalar Chain – Employees should be aware of where they stand in the organization's
hierarchy, or chain of command.
10. Order – The workplace facilities must be clean, tidy and safe for employees.
Everything should have its place.
11. Equity – Managers should be fair to staff at all times, both maintaining discipline as
necessary and acting with kindness where appropriate.
12. Stability of Tenure of Personnel – Managers should strive to minimize employee
turnover. Personnel planning should be a priority.
13. Initiative – Employees should be given the necessary level of freedom to create and
carry out plans.
14.Esprit de Corps – Organizations should strive to promote team spirit and unity.
The Qualities of a GEM
 The word “gem” commonly refers to a mineral or organic substance, cut and polished and used
as an ornament, as seals and as talismans. These qualities sought in gems are beauty, rarity
and durability.
 Gems are generally cut to bring out their natural color and brilliancy and to remove flaws. The
beauty of a gem depends on hardness and resistance to cleavage or fracture.
 Gems are part of earth’s beautiful and valuable composition that come even in the lightest and
smallest forms. Classified as minerals, gems stones are also regards as the fundamental
building blocks of the earth.
 The 4 Gems of Management, by analogy, analogy, stand for the four important management
cycles: Goal, Execution, Measurement and Sustenance. It also serves to describe the
management practice itself. The GEMS in our subject matter, just like a precious stones of the
earth, are the fundamental blocks that contribute to the success of an enterprise.
 GOALS,EXECUTION, MEASUREMENT AND SUSTENANCE are the four pillars that propel
organizations to survive, grow, and reach greater heights. They are the tools that leaders use to
galvanize a workforce into action. They are solid anchors that ensure the organization;s staying
power when crisis looms