Lecture 09 GEB 1011 Chapter 6 The Nature of Manage ent

Rev. 03/30/2013

Re e !er "hen "e #$%cu%%e# "h& $n#$v$#ua'% (o$n organ$)at$on%* "e %a$# that $t "a% to acco p'$%h goa'% or o!(ect$ve% that one cou'# not ach$eve $n#$v$#ua''&. +o"ever* th$% then re,u$re% u% to anage tho%e organ$)at$on%. Manage ent #ef$ne#- Manage ent $% the proce%% of gett$ng "or. #one through other peop'e. The / portance of Manage ent Manage ent $% the proce%% #e%$gne# to ach$eve an organ$)at$on0% o!(ect$ve% !& u%$ng $t% re%ource% effect$ve'& an# eff$c$ent'& $n a chang$ng env$ron ent. Effect$ve'& ean% hav$ng the $nten#e# re%u't%. 1$.e h$tt$ng the na$' on the hea# "$th the ha er2 Eff$c$ent'& ean% acco p'$%h$ng the o!(ect$ve "$th a $n$ u of re%ource%. 1$.e. 3r$v$ng the na$' through the !oar# "$th the fe"e%t %"$ng% of the ha er2 Chang$ng Env$ron ent- 1e4p'a$n that env$ron ent% a'"a&% change#* !ut the rate of change $% no" $ncrea%$ng an# ho" th$% ha% affecte# the ove ent fro r$g$# !ureaucrat$c organ$)at$on %tructure% to the ore f'e4$!'e an# part$c$pat$ve organ$)at$on %tructure%2 5ha%e% of Manage ent Thought 6nc$ent 1. Eg&pt 7 5&ra $#% 2. Ch$na 7 The Great 8a'' of Ch$na 3. Ro an E p$re 7 Roa#%* v$a#uct% 9. The 6r%ena' of :en$ce 1936 u%e# a%%e !'& '$ne an# $nterchangea!'e part% to !u$'# %h$p% for #efen%e aga$n%t the ;tto an E p$re. C'a%%$ca' Bu%$ne%% Manage ent 1Goa' "a% to ph&%$ca''& e'$ $nate or contro' var$a!'e% a%%oc$ate# "$th 'a!or2 1. +enr$ <a&o' 11=91 7 192>2 a2 ?$4 <unct$on% of Manage ent $. foreca%t$ng 7 %ee$ng the #e%t$nat$on or v$%$on $$. p'ann$ng 7 #ra"$ng up p'an% %o a% to arr$ve at the #e%t$nat$on $$$. organ$)$ng 7 prov$#$ng of the re%ource% for #a&@to@#a& operat$on% $v. co an#$ng 7 opt$ $)$ng return fro a'' e p'o&ee% to ach$eve the p'an v. coor#$nat$ng 7 un$f&$ng an# har on$)$ng act$v$t$e% an# effort% a ong #epart ent% to ach$eve p'an v$. contro''$ng 7 $#ent$f&$ng "ea.ne%%e% !& con#uct$ng fee#!ac. an# a#(u%t$ng act$v$t$e% to ach$eve p'an

!2 <ourteen 5r$nc$p'e% of Manage ent $. #$v$%$on of "or. @ %pec$a'$)at$on $$. author$t& 7 $.e. to co an# $nfer% re%pon%$!$'$t& $$$. #$%c$p'$ne 7 e p'o&ee% u%t o!e& ru'e% $v. un$t& of co an# 7 each e p'o&ee ha% on'& one %uperv$%or v. un$t& of #$rect$on 7 each group of organ$)at$ona' act$v$t& hav$ng the %a e o!(ect$ve% %hou'# !e #$recte# !& one anager u%$ng one p'an v$. %u!or#$nat$on of $n#$v$#ua' $ntere%t% to the genera' $ntere%t% v$$. re unerat$on 7 "or.er% u%t !e pa$# fa$r'& v$$$. centra'$)at$on 7 to !e a#(u%te# to the env$ron ent $4. %ca'ar cha$n 7 '$ne of co un$cat$on 4. or#er 7 peop'e an# ater$a'% %hou'# !e $n the r$ght p'ace at the r$ght t$ e 4$. e,u$t& 7 anager% %hou'# !e .$n# an# fa$r to the$r e p'o&ee% 4$$. %ta!$'$t& of tenure of per%onne' 7 h$gh e p'o&ee turnover $% $neff$c$ent an# p'an for vacanc$e% 4$$$. $n$t$at$ve 7 e p'o&ee% "ho are a''o"e# to or$g$nate an# carr& out p'an% "$'' e4ert h$gher 'eve'% of effort 4$v. E%pr$t #e corp% 7 har on& an# un$t& "$th$n the organ$)at$on. To#a& "e ca'' $t tea "or.. 2. Ma4 8e!er 11=69 7 19202 7 Bureaucrac& a2 author$t& or po"er re%$#e% $n the po%$t$on not the per%on !2 propo%e# to avo$# the ar$%tocrac& fro ta.$ng over !u%$ne%% anage ent 3. <re#er$c. Ta&'or 11=>6 @ 191>2 7 ?c$ent$f$c Manage ent a2 <ran. B. G$'!reth 11=6= 7 19292 !2 L$''$an M. G$'!reth 11=A= 7 19A22 c2 +enr& L. Gantt 11=61 7 19192 #2 Che%ter /. Barnar# 11==6 7 19612 e2 +a"thorne ?tu#$e% 1929 @ 1933 Mo#ern Bu%$ne%% Manage ent 1$#ent$f& var$a!'e% that can !e $nf'uence# an# anage# !& p%&cho'og& an# %oc$o'og&2 1. Behav$ora' ?choo' a2 Mar& 5ar.er <o''ett 11=6= 7 19332 !2 6!raha Ma%'o" 1190= 7 19A02 7 +$erarch& of Nee#% Theor& c2 <re#er$c. +er)!erg 11923 7 20002 7 T"o <actor Theor& #2 3oug'a% McGregor 11906 7 19692 7 Theor& B* Theor& C 2. Manage ent ?c$ence ?choo' 3. Manage ent !& ;!(ect$ve a2 5eter 3ruc.er 11909 7 200>2

5o%t Mo#ern Bu%$ne%% Manage ent 1rea'$)e that the env$ron ent $% unpre#$cta!'e an# uncontro''a!'e* &ou can on'& contro' ho" &ou react to $tD 1. 5eter 3ruc.er co$ne# the ter Epo%t@ o#ernF $n regar#% to !u%$ne%% anage ent 2. ?&%te % Manage ent 3. Chao% Theor&

Manage ent <unct$on% 1a% #e%cr$!e# $n the te4t!oo.2 1e4p'a$n that %o e te4t!oo.% '$%t on'& four funct$on% of anage ent !& $nc'u#$ng %taff$ng $n "$th organ$)at$on2 5'ann$ng 7 $% the f$r%t funct$on of anage ent that 'a&% the groun#"or. for a'' the other funct$on%. /t $nvo've%1. "hat the organ$)at$on "ant% to ach$eve for $t% goa'% a2 <uture %tate of !e$ng 7 v$%$on for the f$r !2 5o%$t$on $n the $n#u%tr& $. Techn$ca' 'ea#er%h$p $$. Mar.et %hare $$$. ;perat$on co%t %tructure c2 Cu%to er re'at$on% 2. foreca%t$ng the event% nee#e# to ach$eve tho%e goa'% 3. #e%cr$!$ng the var$ou% cour%e% of act$on to ach$eve tho%e goa'%* an# $#ent$f&$ng the !e%t cho$ce of act$on 9. the p'an $t%e'f %pec$f$e% "hat %hou'# !e #one* !& "ho * "here* "hen* an# ho". >. T&pe% of 5'an% a2 ?trateg$c 5'an% 7 e%ta!'$%h the 'ong@range v$%$on an# o!(ect$ve% an# overa'' %trateg& or cour%e of act$on !& "h$ch the f$r ach$eve% $t% v$%$on 12 to > &ear% or 'onger2 !2 Tact$ca' 5'an% 7 are annua' p'an% %ho"$ng $'e%tone% an# #ate% nee#e# to ach$eve the %trateg$c p'an. c2 ;perat$ona' 5'an% 7 the hour'&* #a$'&* "ee.'& p'an% $#ent$f&$ng #epart ent* "or. group* an# $n#$v$#ua' ach$eve ent% nee#e# to ach$eve the tact$ca' p'an an# u't$ ate'& the %trateg$c p'an. #2 Cont$ngenc& 5'ann$ng 7 %tre%% th$% nee# $n '$ght of the ever $ncrea%$ng'& chang$ng env$ron ent. ;rgan$)$ng 7 $% the %tructur$ng of re%ource% an# act$v$t$e% to acco p'$%h o!(ect$ve% eff$c$ent'& an# effect$ve'&. /t $% $ portant for %evera' rea%on%a2 he'p% create %&nerg& 1e4p'a$n %&nerg&2 !2 e%ta!'$%he% '$ne% of author$t& c2 $ prove% co un$cat$on #2 he'p% avo$# #up'$cat$ng effort% an# "a%t$ng of re%ource%

?taff$ng 7 th$% "$'' !e #$%cu%%e# $n #eta$' $n Chapter% 09 an# 10 3$rect$ng 7 $% ot$vat$ng an# 'ea#$ng e p'o&ee% to ach$eve organ$)at$ona' o!(ect$ve% Contro''$ng 7 $% the proce%% of eva'uat$ng an# correct$ng act$v$t$e% to .eep the organ$)at$on on cour%e to $t% $nten#e# o!(ect$ve% a2 the f$ve %tep proce%% of contro''$ng 1. ea%ur$ng perfor ance 2. co par$ng pre%ent perfor ance "$th %tan#ar#% or o!(ect$ve% 3. $#ent$f&$ng #ev$at$on% fro the %tan#ar#% or o!(ect$ve% 9. $nve%t$gat$ng the cau%e of #ev$at$on% >. ta.$ng correct$ve act$on "hen nece%%ar& !2 the contro' funct$on he'p% anager% a%%e% the %ucce%% of the$r p'an%

Leve'% of Manage ent Top Manage ent 7 off$cer% of the co pan& an# %en$or e4ecut$ve% on the CE;0% %taff. M$##'e Manage ent 7 #$v$%$on anger%* #epart ent anager% %uch a% pro#uct$on* account$ng ar.et$ng* hu an re%ource%* $nfor at$on techno'og& <$r%t@L$ne Manage ent 7 %uperv$%or% of the "or.er% $n each #epart ent Before co puter$)at$on $##'e anager% co p'$e# report% to conve& operat$ona' re%u't% to top anage ent an# to pa%% #o"n #$rect$ve% fro top anage ent* !ut %$nce the app'$cat$on of co puter$)e# anage ent $nfor at$on %&%te % o%t $##'e anage ent (o!% have !een e'$ $nate#. The effect ha% !een the 'eve'$ng or f'atten$ng of organ$)at$ona' %tructure fro Eta''F or Ep&ra $# E %tructure "$th an& 'a&er% of anage ent to a f'attene# %tructure "$th on'& t"o 'a&er% "$th a % a'' top Corporate contro' %taff. Leve'% of Manage ent an# <unct$on% of Manage ent co pare# !& t$ e ut$'$)at$on Top Manager% $. p'ann$ng $$. organ$)$ng $$$. %taff$ng $v. #$rect$ng v. contro''$ng M$##'e Manager% $. organ$)$ng $$. %taff$ng $$$. p'ann$ng $v. #$rect$ng

v. contro''$ng <$r%t@L$ne Manager% $. contro''$ng $$. #$rect$ng $$$. %taff$ng $v. organ$)$ng v. p'ann$ng

6rea% of Manage ent ?pec$a'$)at$on <$nanc$a' 7 re%pon%$!'e for recor#$ng a'' tran%act$on% of the !u%$ne%% an# generat$ng f$nanc$a' %tate ent% for %en$or anage ent to rev$e"* an# a%%$%t$ng $n the ac,u$%$t$on of f$nanc$a' re%ource%. 5ro#uct$on or ;perat$ona' 7 re%pon%$!'e for anag$ng the act$v$t$e% that tran%for re%ource% $nto goo#% an# %erv$ce%. /n an& f$r % th$% funct$on ha% !eco e ver& techno'og$ca' !a%e# an# 'e%% re'$ant on hu an 'a!or. +u an Re%ource% 7 re%pon%$!'e for %taff$ng the organ$)at$on an# #ea'$ng "$th a'' govern ent regu'at$on% perta$n$ng to e p'o&ee% Eng$neer$ng@ #e%$gn% the f$r % pro#uct or %erv$ce Mar.et$ng @ re%pon%$!'e for a'' ar.et$ng* a#vert$%$ng* ar.et re%earch* %a'e% of the pro#uct or %erv$ce $nto the ar.etp'ace /nfor at$on Techno'og& 7 re%pon%$!'e for #eve'op$ng* a$nta$n$ng* an# contro''$ng the organ$)at$on% #ata!a%e% an# %upp'&$ng each 'eve' of anage ent the $nfor at$on an# report% nee#e# to anage the organ$)at$on. Th$% funct$on ha% gro"n $n $ portance fro a re'at$ve'& c'er$ca' funct$on to a funct$on that can !e the e%%ence of the f$r % co pet$t$ve a#vantage. 6# $n$%trat$ve Manage ent 7 are not %pec$a'$%t% !ut anage #$v$%$on% a% a !u%$ne%% un$t Corporat$on% to#a& concentrate on the$r Ecore co petenc$e%F "h$ch $nc'u#e the$r propr$etor& co pet$t$ve a#vantage an# out%ource tho%e funct$on% that #o #ef$ne the$r e4$%tence. ?.$''% nee#e# !& Manager% Lea#er%h$p 7 $% the a!$'$t& to $nf'uence other% to "or. to"ar# organ$)at$ona' goa'% Techn$ca' E4pert$%e 7 the %pec$a'$)e# .no"'e#ge an# tra$n$ng nee#e# to perfor (o!% re'ate# to each %pec$f$c area of anage ent. 1$.e. eng$neer$ng for pro#uct$on anager%* an# account$ng for f$nanc$a' anager%2 Conceptua' ?.$''% 7 to %ee th$ng% !efore the& e4$%t. ?ee th$ng% $n a!%tract ter % an# to %ee ho" th$ng "or. together $n a %&%te . 6na'&t$ca' ?.$''% 7 a!$'$t& to $#ent$f& re'evant $%%ue% an# recogn$)e the$r $ portance an# re'at$on%h$p% an# perce$ve the un#er'&$ng cau%e an# effect re'at$on%h$p%

+u an Re'at$on% ?.$''% 7 the a!$'$t& to #ea' "$th an# through peop'e !oth $n%$#e an# out%$#e the organ$)at$on

3ec$%$on Ma.$ng Recogn$)$ng an# 3ef$n$ng the 3ec$%$on ?$tuat$on 1e4p'a$n that $n the rea' "or'# th$% $% the o%t #$ff$cu't part of #ec$%$on a.$ng for there $% not a te4t!oo. "r$ter #ef$n$ng the pro!'e G Cou u%t #o $t &our%e'fG2 Th$% proce%% re,u$re% a great #ea' of conceptua' %.$''% !& anage ent. 3eve'op$ng ;pt$on% 7 creat$v$t& to %ee a% an& a% po%%$!'e potent$a' %o'ut$on%* %o et$ e% ca''e# E!ra$n%tor $ngF. 6na'&)$ng ;pt$on% 7 !e$ng a!'e to or#er ran. the %et of potent$a' %o'ut$on% ?e'ect$ng the Be%t ;pt$on 7 %e'ect$ng the !e%t %o'ut$on fro %o'ut$on% that "$'' !e%t ach$eve organ$)at$ona' goa'% a'' po%%$!'e

/ p'e ent$ng the 3ec$%$on 1e4p'a$n that th$% $% the %econ# o%t #$ff$cu't part of #ec$%$on a.$ng !ecau%e $t ta.e% a 'ot of effort* cooperat$on* fo''o" through* etc.2 Th$% re,u$re% a 'ot of p'ann$ng. Mon$tor$ng the Con%e,uence% 1e4p'a$n unfore%een con%e,uence%2 1. f$r%t &ou a& have $%%e# %o eth$ng $n the ana'&t$ca' %tage an# &ou nee# to f$ne tune &our %o'ut$on 2. or &ou a& have cho%en a goo# %o'ut$on !ut #$# not %ee un%een react$on% or con%e,uence% to &our cour%e of act$on !& other %ta.eho'#er% of the organ$)at$on 3. th$% re,u$re% &ou to go through a'' the %tep% un#er Econtro''$ngF