Table of Contents

Course Guide xi- xvi

Topic 1 What is Management? 1

1.1 Definition of Management 2
1.2 Who are Managers? 3
1.2.1 Functions of Management 3
1.2.2 Roles of a Manager 5
1.2.3 Skills of a Manager 7
1.3 Types of Managers 9
1.4 Evolution of Management Theory 10
1.4.1 Classical Perspective 11
1.4.2 Human Perspective 14
1.4.3 Quantitative Management Approach 16
1.4.4 Contemporary Approach 16
Summary 19
Key Terms 20

Topic 2 Planning 21
2.1 Definition of Planning 22
2.2 How to Plan Effectively? 23
2.3 Types of Planning 26
2.4 Advantages and Disadvantages of Planning 30
2.4.1 Advantages of Planning 31
2.4.2 Disadvantages of Planning 32
Summary 35
Key Terms 35

Topic 3 Decision Making 36

3.1 Decision Making Environment 37
3.1.1 Decision Making in Certain Conditions 38
3.1.2 Decision Making in Uncertain Conditions 38
3.1.3 Making Decision in Risky Conditions 39
3.2 Rational Decision Making Process 40
3.3 Limitations in Rational Decision Making 43
3.3.1 Common Mistakes in Decision Making 44
3.3.2 Rational Boundaries 44
3.3.3 Environmental Risk 45
3.4 How to Improve Decision Making 46
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3.4.1 Using Rules and Tests 46

3.4.2 Using Groups 48
3.5 Group Decision Making Methods 49
3.5.1 Brainstorming 49
3.5.2 Nominal Group Technique 50
3.5.3 Delphi Technique 51
3.5.4 Advantages of Group Decision Making 51
3.5.5 Disadvantages of Group Decision Making 52
Summary 55
Key Terms 56

Topic 4 Organisation Design 57

4.1 Factors that Influence Organisation Structures 58
4.1.1 Organisational Strategy 58
4.1.2 Size of the Organisation 58
4.1.3 Technology 59
4.1.4 Environment 59
4.2 Designing Organisational Structures 60
4.2.1 Departmentalisation 60
4.3 Authority 64
4.3.1 Chain of Command 64
4.3.2 Line and Staff Authority 65
4.3.3 Functions of Line and Staff 65
4.3.4 Span of Control 66
4.4 Centralisation and Decentralisation 67
4.5 Work Design 68
4.5.1 Work Specialisation 68
4.5.2 Job Rotation, Enlargement and Enrichment 69
4.6 Organisation Process Design 70
4.6.1 Emerging New Designs 70
4.6.2 Team Structure 71
4.6.3 Modular Organisations 71
4.6.4 Virtual Organisations 72
4.6.5 Borderless Organisations 73
Summary 76
Key Terms 76

Topic 5 Human Resource Management 77

5.1 Determining the Needs of Human Resources 78
5.1.1 Job Analysis 79
5.1.2 Forecasting 80
5.2 Recruitment/Hiring 81
5.2.1 Internal Recruitment 82
5.2.2 External Recruitment 82
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5.3 Selection of Qualified Employees 83

5.3.1 Application Forms and Resume 84
5.3.2 References and Background Checking 84
5.3.3 Selection Tests 84
5.3.4 Interviews 86
5.4 Development of Qualified Employees 87
5.4.1 Orientation 87
5.4.2 Training 88
5.4.3 Determining the Needs for Training 88
5.4.4 Training Methods 89
5.5 Performance Evaluation 91
5.5.1 Who Should Evaluate? 93
5.5.2 Method of Performance Evaluation 94
5.6 Retaining Qualified Employees 95
5.7 Employee Separation 97
5.7.1 Employee Termination 97
5.7.2 Downsizing 98
5.7.3 Retirement 99
5.7.4 Employee Turnover 99
Summary 101
Key Terms 102

Topic 6 Communication in Organisations 103

6.1 Definition of Communication 104
6.2 Types of Communication 106
6.2.1 Formal Communication 107
6.2.2 Informal Communication 109
6.2.3 Non-verbal Communication 110
6.3 Increasing Communication 110
6.3.1 Communication Barriers 111
6.3.2 Measures for Overcoming Communication
Barriers 112
Summary 116
Key Terms 116

Topic 7 Motivation 117

7.1 Classical Model and Scientific Management 118
7.1.1 Approaches to Motivation 118
7.2 Need-based Approach 120
7.2.1 MaslowÊs Hierarchy of Needs 120
7.2.2 Two-factor Model 122
7.2.3 Achievement of Needs Model 123
7.3 Process-based Approaches 124
7.3.1 Expectancy Model 124
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7.3.2 Equity Model 125

7.3.3 Goal-setting Model 127
7.3.4 Reinforcement Model 127
Summary 131
Key Terms 131

Topic 8 Leadership 132

8.1 Leadership Approaches 133
8.1.1 Leader-centred Approach 133
8.1.2 Follower-centred Approach 138
8.1.3 Interactive Approaches 139
8.2 Strategic Leadership 144
8.2.1 Visionary Leadership 144
8.2.2 Charismatic Leadership 144
8.2.3 Transactional Leadership 144
8.2.4 Transformational Leadership 145
Summary 147
Key Terms 147

Topic 9 Controlling 148

9.1 Definition of Control 148
9.1.1 Quality Assurance 149
9.1.2 Preparation to Face Changes 149
9.2 Steps in the Control Process 150
9.2.1 Establishing Standards 150
9.2.2 Measuring Performance and Making
Comparison 151
9.2.3 Corrective Actions 151
9.3 Dynamic Process 151
9.4 Basis Methods of Control 152
9.4.1 Future Control 152
9.4.2 Concurrent Control 153
9.4.3 Feedback Control 153
9.5 Forms of Control 153
9.5.1 Bureaucratic Control 154
9.5.2 Objective Control 154
9.5.3 Normative Control 154
9.5.4 Concertive Control 155
9.5.5 Self Control 155
9.6 Factors That Need to be Controlled 155
9.6.1 Financial Perspective 156
9.6.2 Human Resource Perspective 156
9.6.3 Quality Perspective 156
9.6.4 Consumer Perspective 157
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Summary 158
Key Terms 159

Topic 10 Managing Teams 160

10.1 Differences between Teams and Groups 161
10.2 Advantages of Teams 162
10.3 Disadvantages of Teams 163
10.4 When is a Team Needed? 164
10.5 Types of Teams 166
10.6 Characteristics of Teams 169
10.6.1 Team Norms 169
10.6.2 Teams Unity 170
10.6.3 Team Conflict 170
10.6.4 Phases of Team Development 170
10.7 Towards Building a High Performance Team 173
Summary 177
Key Terms 177

Topic 11 Innovation and Change 178

11.1 Why is Innovation Important? 179
11.1.1 Technology Cycle 179
11.2 Managing Innovation 180
11.2.1 Managing Innovation Resources 180
11.3 Organisational Change 182
10.3.1 Forces of Change 182
11.4 Managing Changes 185
11.4.1 Aspects that Can be Changed by Change
Agents 187
11.5 Barriers to Change 189
11.5.1 Individual Barriers 189
11.5.2 Organisational Barriers 190
11.6 Overcoming the Barriers to Change 191
11.7 Managing Change 193
Summary 196
Key Terms 196

Answers 197