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INTRODUCTION TO MANAGEMENT
1.0 WHY WE STUDY MANAGEMENT 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 DEFINITION OF MANAGEMENT, ORGANIZATION AND MANAGERS. MEASURING MANAGERIAL PERFORMANCE MANAGEMENT PROCESS LEVELS OF MANAGEMENT MANAGERIAL SKILL MANAGERIAL ROLES MANAGERIAL ACTIVITIES THE CHALLENGE OF MANAGEMENT
Learning objectives After completing this chapter, you should be able to : 1. 2. 3. 4. Define what is management Familiarize with the different types of organizations. Explain the levels of management and management functions Know the different types of managerial roles and activities.
WHY WE STUDY MANAGEMENT ? To enhance the understanding of events/ activities, challenges and skills that will give Meaning to our future work experience and careers as managers or other professional careers we may choose. Make us become effective manager who will be able to help the organization achieve a
high level of performance through the utilization of its human and material resources. Equip ourselves with effective management theories and practices that can be applied to
all types of organization and any occupational settings we may choose to be in the future. Make us to become effective managers who will be able to detect and locate problems to
be solve, thus making good decision about appropriate solution and utilizing organizational resources effectively to implement these solutions. Enable us to assess the future, make plans for it, thus acting as good planners. To be responsible and accountable for employees to be in the same track towards accomplishment of organizational goals.
DEFINITION OF MANAGEMENTS, ORGANIZATION AND MANAGERS.
MANAGEMENT: Earlier definition by Mary Parker Follet – Management scholar as: “ The art of getting things done through people” Stoner “The process of planning, organizing, leading and controlling the efforts of an organization members and of using all other organizational resources to achieve stated organizational goal”. Holt “ The process of planning, organizing, leading and controlling resources in an organizational
ORGANIZATION: Is a social unit in which two or more people interact to achieve a common goal or a set of goal ( stoner) or As a collection of people working together in a division of labor to achieve a common purpose.( Schermerhon) The structure of relationships that exists when two or more people mutually cooperate to pursue common objectives (Holt). TYPES OF ORGANIZATION: 1. Formal : Consist of two or more people who are involve in a mutual effort with formal authority to achieve common objectives ( Holt) 2. Informal organization The shadow organization consist of two or more people involved in a mutual effort without deliberate structures of authority or the necessity of the common objectives.
A MANAGER A person in an organization who is responsible for work or performance of one or more other persons ( Schermerhorn).
MANAGEMENT FUNCTIONS Comprise of the activities of planning, organizing, leading and controlling. Planning Organizing - Includes defining goals, establishing strategy And developing plans to coordinate activities. - Determine what tasks are to be done who is to do them, how the tasks are to be grouped, who reports to whom and where decisions are to be made. - Includes motivating subordinates, directing others, selecting the most effective communication channels, and resolving conflicts. - Monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations
Achieving the organization’s stated purpose ( Goal / Mission) 1.3 MANAGEMENT LEVELS a) First line managers The lowest level in the organization is that at which individuals are responsible for the work of others. First- line or first level managers direct operating employees only: They do not supervise other managers. E.g of first – line managers are the “ foreman” or production supervisor in a manufacturing plant, the technical supervisor in a research department, and the clerical supervisor in a large office.
“ president”’ and “ senior vice. the top management is responsible for the overall management of the organization. It establishes operating policies and guide the organization’s interactions with its environment.General manager 1. MANAGER By their level in the organization -first line manager . Middle managers direct the activities of lower – level managers and sometimes also those of operating employees.b) Middle managers Middle managers can include more than one level in an organization. Typical titles of top managers are “ chief executives officer”. c) Top managers A comparative small group of executives. Actual titles vary from one organization to another.president”.middle manager .4 MANAGEMENT SKILLS 5 .Top manager By the range of organizational activities they are responsible -functional manager . Middle managers’ principles responsibilities are to direct the activities that implement their organizations’ policies and to balance the demand of their superiors with the capacity of their subordinates.
A manager’s job is diverse and complex.Is the ability to use the procedures. and requires a range skills. every manager needs all three but the amounts differ by their level in organization.The ability to work with. Robert L. Surgeons. musicians and accountants. Conceptual skill – ability to coordinate and integrate all of an organization’s Interests and activities. Human skill . FIRST-LINE MANAGEMENT Conceptual Human MIDDLE MANAGEMENT TOP MANAGEMENT Conceptual Human Technical Conceptual Human Technical Technical 1. Three basic kind of skills : technical.Katz. understand and motivate other people as individuals or in groups. human and conceptual Technical skill.5 MANAGERIAL ROLES 6 . techniques and knowledge of a specialized field. engineer.
3. Informational Roles Monitor . 2. the informational roles are to assist the manager in receiving and communicating information to make the right decision.A department head performing ceremonial duties like greeting visitors. C. Decisional roles 1. The interpersonal roles are to help the manager in managing organization smoothly. unexpected disturbances. Figurehead . .Information received internally or externally will be transmitted to the subordinates . 1.A person who is responsible for hiring. entrepreneur Manager tries to improved the unit and initiate the changes.related roles in the organization. According to Henry Mintzberg “ The nature of managerial work”’ managers perform ten inter. 2. Negotiator Manager is responsible for representing the organization at 7 major negotiations . Ten roles classified under three main roles : They are : 1. 2. .Manager is responsible in allocating the resources of the Managerial Activities 4. Decisional roles A.managers is responsible for corrective actions when the organization faces important.A person who perform and interacts with other people outside the organization.The specific classifications of managerial behavior.Manager continuously seeks information that can be use to advantage Disseminator . signing legal documents etc. 3. B 1. Informational roles 3. Leader Liaison .6 Resources allocate . organization 3. Spoke person .Information will be transmitted to people outside the organization or unit Thus. Interpersonal roles 2. Interpersonal Roles 1. training and motivating subordinates in the organization. Disturbance handler .
Since the sales of proton wira and Perdana exceed expectations management has add mare shifts to meet demand which will obviously increase the market share.Managers are the people who controlling. Controlling . leading and Goals: a) types and number of books to be produce b) Improving the services for the Organizing Determining what tasks are to Be done. directing. organizing. 3. The production manager and supervisor have created a certain environment where workers will want to produce more so as to meet the target. subordinates. 1. Production workers were assigned to different supervisor assembly lines / unit many productions activities were rearrange so as to achieve the goals Specified. 4. Planning . selecting the most effective communication channels. who is to do them.monitoring activities to proton Ensure that they are being Accomplished as planned and Correcting any significant Deviations. who reports to whom and where decisions are to be made.7 THE CHALLENGE OF MANAGEMENT 8 . how the tasks are to be grouped.Include defining goals establishing strategy and developing plans to coordinates uses activities deal with planning. Leading Includes motivating. and resolving conflicts. 1.
Success goes to the managers who can recognize and seize the opportunities. Current and poses another new challenge to management and organizational today. they are likely to find their organization survival at a brink. An approach that involves granting employees the freedom and responsibility to do their job as they think best. The current challenges that are considered as the important factors that affect today business environment are: a) b) Globalization Services or business not a local focus but must be global Total Quality management Comprehensive effort to enhance an organization product or service quality and reduce cost.engineering A radical rethinking and re-designing organization’s processes to achieve drastic improvements in performance ( Micheal Hammer) Empowerment. managers have to face and contend with a wide variety of challenges in pursuing their mission. without constantly having to appeal to higher authorities for permission. This challenges can and do influence the work of managers and affect the performance of the organization as a whole. If the managers do not closely monitor this challenges or changes in the organization environment or fail to respond quickly to this changes. Concept where organization is slimming down or downsizing operations in order to focus on resources and boost profits or decrease expenses. c) d) e) f) 9 . Organizational restructuring and consolidation. Re. Social responsibility and ethic Focus on what an organization does affects the society in which ethics is the discipline dealing with what is good and what is bad or right or wrong or with moral duty or obligation. efficient organization.In an environment which is rapidly and constantly changing. This trend will shape the managers’ environment through the movement towards more streamlined. This will enable employees to make quick decision without getting caught through the ladder of beauracracy so they will be able to serve customers more effectively.
ACTIVITY Can you define the following terms in your own words? Management Human skill Management functions Organizing Controlling Interpersonal roles Re-engineering Restructuring Top managers THINKING EXERCISE 1.. CHAPTER 2 OVERVIEW 10 . Fundamental of Management. Management. Decenzo. 2. Stephen P. Give examples of how they would be used by the following person(s). 6th ed 2001. Gilbert Jr. Prentice Hall. Stoner. REFERENCES : 1. Daniel R. 2. James A. Prentice Hall.1995. a) High School principal b) Information professionals Why we need to study management? Organization manager Technical skill Management process leading efficiency Decisional roles Total quality management First-line managers Functional manager Division of labor Conceptual skill planning Effectiveness Informational roles Globalization Empowerment Middle managers General manager 3. Freeman Edwards R. 6th and. What is management and what is organization ? List and define four (4) management functions. Robbins.F.. David A.
2. THE FORMATION OF MANAGEMENT PRACTICES PRE CLASSICAL VIEW POINT CLASSICAL VIEW POINT BEHAVIORAL VIEWPOINT QUANTITATIVE SCIENCE APPROACH CONTEMPORARY VIEWPOINTS Learning Objectives : After completing this chapter student will be able to: 1. 3.0 EVOLUTION OF MANAGEMENT THEORIES 11 . Apply several techniques of management practice. 4. 2. 6. 2. 3. 5.EVOLUTION OF MANAGEMENT THEORIES 1. Understand the beginning of management practice Explain several management theories .
Charles Barbage ( 1792-1871) b) 12 . 400-500 young children who worked 13 hrs (11hrs/2hrs off for meals) Concerned for the working and living condition of workers. Management theories can classified into 5 view points that are : Pre classical view point Classical view point Behavioral view point Quantitative view point Contemporary view point PRE CLASSICAL CONTRIBUTORS a) Robert Oven ( 1772-1858) A British entrepreneur and had a cotton mill in Scotland. Egyptian use mathematical to organize labor. Organized management practice in 2000 B. This point saw the invention and use of machinery setting up factories and creation of entrepreneurial capital that finance the industries.1. The factories became widespread and large number of employees need to be coordinated.1 THE FORMATION OF MANAGEMENT PRACTICES Management thought started with industrial revolution around 1800. touching on strategy. Great Pyramid in Egypt. sanitation. Therefore the challenge had motivated a number of individuals to think of ways and means to run the factories more effectively. planning and leadership use by military strategy. People think ways to improve efficiency and effectiveness. 100.Begin from ancient civilization.1 Pre classical view point. 2. educational system. houses. 2. China – Sun Tzu War.C during King Hummurabi. supervise to built within specified design and time. Tried to upgrading streets.000 workers involve.
Observed good engineering skills and good business skills were rarely combined but both were equally important to run organization. Three different approach are: a) Frederick Winslow Taylor ) 1856-1915) The father of scientific management. Recognized specialized physical work as well as mental work ( specialists Invented a profit sharing plan _ a bonus for useful suggestions and portion of wages that was dependent on factory profits. Three different approaches : a) b) c) Scientific management Bureaucratic management Administrative management 1. 13 . Faulty wage system encourages workers to operate at slow pace. Increasing their productivity would cause them or others to lose jobs.2 CLASSICAL VIWEPOINT A perspective on management that emphasizes finding ways to manage work efficiently. president of Yale and Towne Manufacturing company. The idea of work specialization – work is divided into various jobs. pioneered in computing and management. Outlines the importance of management as a science Called for the development of management principles. Observed ‘ soldering ‘ by employees. Generate rules handed down were inefficient. SCIENTIFIC MANAGEMENT Approach that emphasizes findings ways to manage work efficiently. 2. Towne ( 1844-1942) A Mechanical engineer.c) Known as father of modern computing English mathematician.working at less than full capacity meaning feared that.1. Henry R. Ideas used in scanlon plan.
Henry L Gantt (1861-1919) Gantt chart – graphic aid to planning. train them by using scientifically developed method. improve production by his principle. BUREAURATIC MANAGEMENT a) Max Weber (1864-1920) German sociologist An approach that emphasizes the need for organizations to operate in a rational manner. (Ideal organization where activities and division of labor were clear.which will help people to reach their maximum potential by developing their skill and abilities.management should develop a science for each tasks to be performed. Cooperate fully with employees to ensure them using proper method. He redesigned the work. He divide work into different task. developed science management : 1) 2) 3) 4) Scientifically study each tasks and develop the best method for performing the tasks. Frederick made use of time and motion study to substantiate his theories and increase productivity. Lilian define scientific studies management must focus both analysis and synthesis. procedures. Divide work and responsibility. Management tool that helps managers to schedule their work. scheduling and control.Thus. b) 2. Management will plan work method using scientific principles and employees are responsible for executing the work accordingly. people promoted on merit) DESCRIPTION CHARACTERISTICS 14 . formal rules. b) Frank and Lilian Gilbreath ( 1868-1924) A brick layer Observed inefficiencies were handed down from the inexperienced employees – propose motion studies to streamline the brick lying process. Carefully select employees.
Formal rules and procedures Impersonality Well defined hierarchy Career advancement 3 . to ensure uniformity and facilitate coordination Rules. policies and sanctions are applied uniformly without prejudiced.Specialization of labor Jobs broken down into routine. it b) Authority c) Disciplines 15 . Multiple level of positions. 1. so that members know what is expected from them thus. carefully reporting relationships among levels. Henri Fayol (1841-1925) -French industrialist -Outlined a number of principles in management : a) Diversion of work Will result in efficiencies applicable to both managerial and technical functions. With authority comes responsibilities. provide supervision of lower offices by higher offices based on Selection and promotion based on the qualifications merit and performance of members. ADMINISTRATIVE MANAGEMENT An approach focuses on principles that can be used by managers to coordinate the internal activities of organizations. Necessary to run the organization. become more competent. The right to give orders and power to exact obedient.
. easy to retrieve and facilitate activities. The amount depends on situation. managers encourage and develop subordinates initiative to the fullest.depends on the worthiness of its leaders. High turn over is not rate will effect the functioning tenure of organization. Select right employee for the right place and right time. The interest of one group of employees should not interest to general interest prevail the interest of the organization. d) e) f) Unity of command Unity of direction Subordination of individual Employees should received orders from one superior only. Chester Barnard (1886-1961) 16 .Horizontal comm. Promoting team spirit unity in organization g) h) Remuneration Centralization i) Scalar Chain j) Order k) Equity l) m) n) Stability of personnel Initiative Esprit de corps 2. A scalar chain of authority extends from the top to bottom of an organization and defines the communication path . Employees treated with kindness and justice. Objectives is to optimum use of the capabilities of personnel. Compensation should be fair to both the employee and employer. Activities aimed at the same objective. is also encourage as long as managers are informed. Materials in the right place. one plan and one person in charge.
Employees willing to accept orders if they understand the communication.employees work together. see the communication consistent with the objectives of organization. rather than specific factors been tested. Concluded that the increase of productivity was due to the change of supervisory arrangement that had been made to facilitate the experiment. may be due the added attention they receive from researchers. 2. 1920s. Managers real powers come from the degree of acceptance of his workers.- - Acceptance theory of authority. = Hawthorne effect – improve performance.3 BEHAVIORAL VIEWPOINT Emphasizes the importance of attempting to understand the various factors hat affect human behavior in organizations.argues that authority does not depends as much on persons of authority who give orders as on the willingness to comply of those who receive orders. Power sharing Conflict resolution Integration of organizational system Hawthorne studies A group of studies done at Hawthorne plant of Western Electric company. 1) Early behaviorist: Hogo Munsterberg ( 1863-1916) Mary Parker Follet (1868 – 1933) a) Hugo Munsterberg Interested in identifying the conditions that would promote the individuals best work and finding ways to influence workers to act in accord with management interest.early 1930s : Monitored the five women assembling electrical relays. Found that the women still increased their productivity period. Mary Parker Follet Focus in group dynamic. 2) Human Relation Movement Two theorist : b) d) 17 . feel that the actions indicated are inline with their need and other employees and view themselves as mentally and physically able to comply.1.
sociology. higher level need are often unmet on job. Operation management 3. This Dictated people’s motivation to perform task.4 QUANTITATIVE MANAGEMENT VIEWPOINT Emerged as a major force in world war 2 Focuses on the use of mathematics. focused on security needs. Management information systems 1. managers can be used as guides in assessing various situations and deciding appropriate actions. Once has satisfy basic need before other can be taken care. have capacity to be creative.can be use to establish practical guidelines for managers. statistics and information aids to support managerial decision making and organizational effectiveness 1. It include management. Theory Y. 2. Behavioral Science Approach Emphasizes scientific research as the basic for developing theories about human behavior in organizations. little ambition.1. Management science/ operation research 2. Theory X and Y – managers view their workers in one of the categories. Employees do better with attainable goals than without goals.Employees are capable of self control. Management science/ operation research 18 . Theory X – assume employees are lazy.a) Abraham Maslow (1908-1970) Contribute to the theory of motivation “ hierarchy of needs”. Conclusion – managers who assume best of their employees are rewarded with committed and satisfied workers. c. anthropology and economics. Physiological need ( lowest) Safety Belongingness Esteem Self Actualization Douglas Mcgregor (1906-1954) i) ii) iii) iv) v) b. psychology.
use by the organization.g work scheduling. production planning. Organizing. Providers a framework for assessing how well the various parts of an organization interact to achieve common goal. System theory An approach based on the assumption that organizations can be visualized as a systems.better to operate in open system.1. financial. E. Operation Management The function/ field of expertise for managing the product and delivery of an organization’s products and services.g system that run raw data to information. equipment and informational resources required to produce goods and services. Components of system Human material. Management Information System The field of management that focuses on designing and implementing computer based information systems for use by managements . Feedback Information about result and organizational status relative to the environment Advantages of Systems approach : can be analyze at different levels. e.Aimed at increase decision effectiveness through the use of sophisticated mathematical models and statistical methods. inventory analysis. 3. Controlling and technology –to converts inputs into outputs. Transformations Managerial and Technological Process Abilities: Planning. 2. Open System A system that operates in continual Inputs 19 . 2.5 CONTEMPORARY VIEWPOINTS Major innovations in ways of thinking about management: System theory Contingency theories 1. Emphasize that a change in one part can affect others It considers how an organization interacts with its environment. System – A set of interrelated parts that operate as a whole towards a common goal.
Identifies contingency principles to take action on the situation. Stephen P. Robbins. Decenzo.. Successful companies operated differently depending on their technology category. 2. 2.F.1995. Fundamental of Management. 6th ed 2001. What were the Hawthorne studies? Why was the human relations movement important to management history?. 6th and. Gilbert Jr. REFERENCES : 1. How did Industrial Revolution Influence Management Practice? Why did scientific management receive so much attention?. Prentice Hall. 3. Prentice Hall. 4. David A. 2. Stoner. Management. Daniel R. Does little or no interaction with environment. What is contingency approach to the study of Management?. ACTIVITY : 1. Freeman Edwards R.appropriate actions by managers depend on situation.Closed system interaction with its environment.. - Contingency Theories Appropriate managerial action depends on particular parameters of situations. James A. CHAPTER 3 OVERVIEW 20 . receives little feedback.
Explain the importance of planning Explain what is “ goals” and “Objectives” Apply various types of plans in planning Define what is “ decision making”.1 3. 2. 3. 7.6 3. Outline the steps in decision making process.3 3. 3.0 3.7 DEFINITIONS OF PLANNING AND PLANS IMPORTANCE OF PLANNING IN ORGANIZATIONS GOALS OBJECTIVES OPERATIONALIZING THE NATURE OF MANAGERIAL DECISION MAKIG THE RATIONAL OF DECISION MAKING Learning objectives: After completing this chapter.5 3. 5. Explain the differences between planning and plans. Familiarize with types and nature of decision making. student should be able to : 1.PLANNING 3.1 DEFINITION OF PLANNING AND PLANS 21 . 6. 4.4 3.
A manager must plan ahead to get things done through his subordinates 3. policies and detailed plans to achieve them. defined strategies.1 PLANNING Important to all organization. Whatever activities are planned by the managers. ( MONDY) . Through planning. politic and social. (STEINER) OR Planning may be broadly defined as “ a concept of executive action that embodies the skill of anticipating and controlling the nature and direction of change “ ( MC FARLAND) OR “The process of determining in advance what should be accomplished and how it should be realized”. Formally prepared Observable. Who is responsible for doing what? 4. Planning establishes an organization to implement decisions and includes a review of performance and feedback to introduce a new planning cycle. Planning allows us to be more certain and to plan for the future. A process that begins with objectives. 1. When should the action be completed?. When should these activities be carried out? 3. 2. whether he is top manager or lower level manager. What activities are required to accomplish the objectives? 2. he has to plan. logical and realistic Planning is a pervasive and continuous executive functions involving complexes processes. 3. It is important because organization are effected by change. plans are statement of how objectives are to be accomplished. As a manager.2 PLANS According to Mondy. there are several questions that need to be asked to realize the organization’s goals. Based upon the definition stated above.1. factual. economic. Planning is an important managerial functions. you can infer that plans should be: 1.3. managers can inform their subordinates about the expectations of the management and the objective of the organization can be realized. Where should the activities be carried out? 5.3 THE IMPORTANCE OF PLANNING IN ORGANIZATIONS 22 .
rather than allowing them to dilute and negate his efforts.4 TYPES OF PLANS 23 . 3. Planning helps to determine what opportunities there are to exploit. 8. Planning enables us to identify the course of action by setting objectives and choosing alternatives that will be most profitable. 5. resources are efficiently and effectively utilized.Why do managers in organizations have to plan? Why do you have to plan? What is this activity important to an organization? The reasons are : 1. It provides for effective utilization of available facilities of an enterprise. Without proper plans much will be left to chance an therefore to risk. Not to plan is to manage as a results of events rather than by use of foresight influence an action. 3. It guides management thinking to future desirable activities and spells out how best to make the shift and what must be done to attain goals. the profitable alternatives that exist are identified through a planning process. It assists a manager in attaining confident and aggressive leadership. thus resulting in saving. 7. By means of planning. Planning can point out the need for future changes. What is really happening become more meaningful when we know what is really expected. In other words. 2. Through plans. a manager successfully copes with his affairs and problems. 4. 9. 6. It can reveal opportunities for new services. It help to achieve goals and reduces random activities and needless overlapping.
Setting goals gives people a sense of control that leads the action. 3.5. specific and meaningful. The failure of some managers to recognize the variety of plans will caused difficulty in making planning effective.g to develop. Characteristics of setting goals are: 1. manufacture and market pharmaceutical products that assure strong growth and profitability. So.confident. Goals is organizations provide the ends towards which people direct their efforts. E. managers do need to know the various types of plan. large or small it must set goals. The goal must be clear and coordinated 3. Example of a Goal: The goal of every manager is to create a clear and verifiable objectives that facilitate measurement of a effectiveness and efficiency of managerial actions. Goals are the ends toward which activities is aimed. marketing pharmaceuticals products can be the mission of a drugs manufacturing company. The goal must be include long – term and short – term plans to be successful. Greater risk taking and more action. 2.e. Weather a firm new or old.1 TYPES OF GOAL : 1. Goals that are clearly established an properly communicated to employees stand the best chance of being reached. The goal must precise. The mission of an organization’s is its products or services or markets or customers . Mission It is the purpose or reason for the existence of an organization.g. 3. 2. what are goals?. Well defined goals provide a solid basis for managers to organized. lead and control their departments or company successfully. 24 . Purpose It is define as an intention to produce a specific good or service.Before any managers can plan the activities of the organization.5 GOALS Goal is one type of plan. Accomplishing goals leads to self.
3. Choosing specific means of implementing strategic plans. Resource allocation It distributes money. Process of making long term choices about an organization’s mission. can be an objective of a salesman. Objectives are established at organizational. 6. The efforts an activities of the members of an organization can be coordinated with the help of objectives.6. A company may have the strategy diversifying into related businesses within the next few years. policies and resource allocations. overall objectives. plant and equipment. 3.6 OBJECTIVES Objectives are the prime parts of the plans and are vital to an organization because all the efforts an activities are focused on this objectives . 4. A high degree of motivation can be maintained by setting objective for a members of the organization an enabling them to achieve to those objectives. short term decisions of what to do. Strategic planning.1 The nature of objective: 25 . Strategy It is the method of shaping a company’s future and involves determining the long – run direction of the organization. Increasing the accounts handled from 20 to 25 percent within the next year. departmental or individual level. Developing annuals budgets for projects and departments. Objective It is an estimated end result expected in the future. strategies. They serve as standards of performance against which actual performance may be compared and it is an important dimension of the control process. personnel. 3. land and other tangible means of production for various uses. They provide a direction in which the organization should move. Tactical planning Making detail. 5. Objectives determine the role an organization should play in a given environment. which will do and how it is to be done. 7.
Hierarchy of objectives_ It is a series of objectives linked to one another at the various levels of management such that each higher-level objective is supported by one or more lower.units accomplish their objectives at the expense of the other sub.optimization. It helps to prevent displacement of objectives wherein means become more important than ends that were original intended. 26 .2 A hierarchy of objectives is important to any organization because: a) b) c) d) e) It helps to ensure the proper alignment of all organization levels with the organization’s purpose. having some sub.level ones. 3. It helps to coordinates decision at all levels It provides a basis for establishing standards facilitating performance measurement at all management levels.1.6.units in the organization. It helps to avoid sub. that is.
RELATIONSHIP HIERARCHY OF OBJECTIVES AND THE ORGANIZATIONAL HIERARCHY OF OBJECTIVES Board of directors Socio economic purpose 1 Mission 2 Overall objectives of the organization ( LR strategies ) 3 More specific overall Objectives ( key result areas) 4 Division objectives 5 Department and unit objectives 6 Individual objectives .Personal development objectives Organizational hierarchy Lower level managers Middle level managers Top level managers 27 .performance .
1. The purpose of society that requires the organization contribute to the welfare of the people by providing good and services at a reasonable cost. 2. The purpose of the business, which might be furnish convenient, low-cost transportation for the average person. 3. The stated mission might be to produce market and service automobiles. These aims are then translated into general objectives or strategies, like designing, producing, marketing a low- cost, fuel- efficient automobile. 4. At the next level of the hierarchy, you find more specific objectives such as those in the key result areas. These are the areas in which performance is essential for the success of the enterprise. 5. These objectives have to be further divided into division department and unit objectives down to the lowest levels of the organization. 3.6.4 Multiplicity of Objectives All organizations have multiple goals that must be recognized by management. E.g the major goals of University are: To provide education for student To conduct research to advance the state of knowledge To provide community service. OPERATIONAL STRATEGY In planning, managers have to make use of the different types of operational plans for the effectiveness of the organization. This operational strategy is done at all levels and involves directing the organization’s day to day operations to achieve overall strategic objectives consistent with the organization’s mission and policies. There are two types of operational strategy ( operational plans) 1. Single use plans It is a detailed course of action that probably will not be repeated in the same form in the future. It is designed for a specific purpose or period. The plan ceases to exist when the goals are achieved. Single use plans consists of program, project and budgets.
1. 2. 3. 3.7
Programs Deals with the who, what, where, when, how, and how much of an activity. It covers a relatively large set of activities whereby it indicates: - Major steps that are required to reach an objectives. - The organization unit or member involved for each steps. - The order and timing of each steps. Program are the actual course of action designed to carry out the established objective. Usually the programs may be accompanied by a budget for the activities required. Projects Are similar to programs but smaller because each project has a limited scope and distinct directive concerning assignments and time. Projects are short-term in nature. Budgets Statements of financial resources set aside for specific activities in a given period of time. Budgets are plans that commit resources to activities, project or programs.
Standing Plans These plans serves as guidelines to managerial action and are designed to be used again and again, These plans bring consistency to the operations. They exist in the form of policies, procedures and rules. Policies policy is a standing –use plan that communicates broad guidelines for making decisions and taking action. It indicates what is permitted and what is not. Policies found in all aspects of an organization. Procedures These are a series of steps in which activities are to be carried out. e.g, how to operate a Photostat machine or how to handle employee grievances. Rules These are very specific actions to be taken or not taken with respect to a situation. E.g are wearing uniforms or reporting to work at a particular time.
PLANNING PROCESS Stating organizational objectives Listing alternatives ways of reaching objectives Developing premises upon which each alternative is based Choosing the best alternatives for reaching objectives Developing plans to pursue chosen alternatives Putting plan into action
ACTIVITY : 1. 2. 3. 4. Contrast formal with informal planning?. Under what circumstances do you believe MBO would be most useful? Discuss. How do single use and standing plans differ? How do you formulate strategies?
REFERENCES : 1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6th ed 2001, Prentice Hall. 2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th and,1995, Prentice Hall. 3. Locke, E.A and Latham, G.P.1990. A theory of Goal setting and Task Performance. Eaglewood Cliffs NJ: Prentice Hall.
CHAPTER FOUR OVERVIEW ORGANIZING 4.3 4.0 4.4 4.2 4.7 DEFINITION OF ORGANIZING IMPORTANT OF ORGANIZATION ORGANIZATIONAL STRUCTURE ORGANIZATION CHART DIVISION OF WORK TYPES OFORGANIZATION STRUCTURE AUTHORITY AND POWER DECENTRALIZATION/ DEPARTMENTALIZATION Learning objectives: After completing this chapter student will be able to : 1) 2) 3) 4) 5) Explain why organization need to organize Familiarize with organizational structure Explain how to prepare organizational chart Describe different types of organization structure Differentiate between centralization and decentralization of organization. 32 .6 4.5 4.1 4.
4 Divide work according to nature and similarity of tasks. when.3 1. 3. Organizational structure can be divide into four elements : Specialization Standardization Coordination Authority 33 .2 Why organizing? 4. Pool resources. Minimize costly weaknesses Accomplish better objectives by using coordinated efforts of people.1 ORGANIZING Definition : The formal way for managers to divide work coordinate task.5 1. To create and maintain relationship between all resources. by specifying which resources to be used. the work done and facilities so that goals are achieved. Letting employees know what to expect by them establishing rules. 2. Important of Organizing Important to management system.4. Clarifying responsibilities through job descriptions. Organizational Structure : Formal system that separates and integrates tasks : Allocating people and resources to tasks. increase efforts which lead efficiency Build continuity and synergy. regulations operation procedures and performance standards. 4. where and how. 4. delegate authority and responsibility to achieve organizational objectives. organizations charts and lines authority. 2. 4. To structure / arrange the relationship between people. 3.0 4. 4. 4.
Centralized organization. In less structure. d) Authority : Right to make decision and take actions. assigning to individuals/ work who are trained.top manages make decision. Various organization distribute authority differently. a willingness to share responsibility and effective interpersonal communication. instructions. Decentralized organization – Greater decision making responsibility is given to lower level managers. b) - - c) - How? In bureaucratic organization rules and regulations.a) - Specialization : Identifying specialized task. Middle managers will be responsible for directing work. rules and regulations to standardize subordinates jobs success Application forms will standardize the selection of employees. Coordination : Formal and informal procedures that integrates both managerial and employees activities. functional and first line usually supervise such as marketing. On the job training programs will promote standardized skills and reinforce values to organization’s success. communicate to lower managers. 34 . Standardization : Developing the procedures an organization uses to ensure employees perform their tasks in uniform and consistent manner. How? Description. accounting or quality control.coordination requires knowledge of company wide problems.
7.4.Simplified tasks that are easily understood and completed quickly. interest and positions. Type of work Label in each box identifies the subdivision area of responsibility. those reporting directly to the same individual are at the same level. 3. DIVISION OF WORK : Work is being divided among members and different jobs related to each other .This division of work and the grouping together of people is done based on some common characteristics linked between the activities involved. Lines of authority Lines connecting the boxes show the official lines of authority and communication. 5.7 4. Create dissatisfaction and boredom of routine and specialize tasks. departments and function within the organization. Disadvantages: Sense of control felt by managers will be different. Subdivision Each box represents a subdivision of the organization that is responsible for a portion of the work. 4.1 Importance of division of work : Increase productivity Create specialization. Easy to assign tasks to individuals based upon their talents.6 ORGANIZATION CHART : The way to describe the four elements including the location of positions. Levels of managementManagement hierarchy. 4. 35 . 2. Five major information found in the organization chart are: 1. Tasks Indicates the range of tasks within the organization.
Advantages Supervisors are forced to delegate clear policies. 36 .8 Span Of Management: Number of subordinates who report directly to a given manager. Subordinates must willing to obey Disadvantages Danger of superior’s loss Superior’s too involved control. Danger of the superior’s loss control 188.8.131.52 FLAT : few organization levels with flat wide span of authority. Types of organization structure: Flat and steep Flat – Flat wide span of authority SteepShort span of authority with many organizations levels. 4. Close supervision and control. levels costly excessive distance between the lowest and the highest level.8.2 STEEP : Short span of authority with many organization levels. Advantages : Close supervision and control Rapid communication between subordinates and superior. Rapid communication between subordinates and superior. Disadvantages: Superior too involved with subordinates Many levels costly Excessive distance between the lowest and the highest level. Advantages : Superiors are forced to delegate Clear policies Subordinates must willing to obey Disadvantages : decision not passed down because of managing subordinates. Good managers with subordinates. Many needed to handle situations.
10 37 . Guide lines for effective delegation authority.9. Staff authority Each individual or group pays a supporting role and contributes to the objectives of the organization. Authority is delegate from top. 4. It is legitimate. Relationship behavior personalities and capabilities of the people in that situation. Superior delegate authority to subordinates in order to facilitate work being accomplished.4. Scalar principle: To whom Who can delegate To whom they are accountable Unity of command Each employee report to only one superior. authority and accountability.9 AUTHORITY The right to make decision with respect to work assignments and to require subordinates to perform assigned tasks in accordance with the decision made. Why delegate? Culture of organization Specific situation involved.1 Line authority – A manager is responsible for the work of his unit and its direct contributions to the objectives of the organization. DELEGATION: the passing of formal authority to another person. Responsibility.2 4. Each employee and each superior should know Job suppose to accomplish Duties Authority His supervisor Subordinates Levels of performance Authority is a type of power. Includes responsibility.9. 4. authority and accountability.
In some situation all managerial decisions have to be approved by the chief executive before operation. promotion. managers members of staff unable to use discretion but according to inflexible rules.Spread of forms and rigid procedures will thus slow down the operations of the organization. 38 .president. Control can be autocratic and inflexible. praise. fame Coercive power Pain. 5 types of power: a) b) c) d) f) Reward power: Money. More reporting and inspection may be needed than if the control were centralized. acceptance. rejection and denial of rewards. ridicule.12 CENTRALIZATION The responsibility and authority concentrated in one place so that major decision are made by central controlling body. supervisor 4.11 POWER: Ability to exert influence. A process where managers affect other’s behavior. Bureaucratic control methods. Common standards for all in organization. status Expert power Influence others through knowledge Referent power Status. Legitimate power Position. Advantages : It provides absolute control over organization. penalty. physical appearance.4. Disadvantages : Each section may not have standard procedure. It will lead to frustration. Administration convenient and the focal point for each function. money.
Requires more personnel with the general manager’s abilities to fill up the division of maintenance of central services becomes difficult when each managers need his own services. Costly. Allows growth and diversity of products and services.13 DECENTRALIZATION : DEPARTMENTALIZATION :It occurs where responsibilities for various functions and operations are taken away from the center and rests at the point where operations occur. Manager is expert in a narrow range of skill. Does not foster development of general managers. Easier to mobilized special skills. Division managers fairly independent. By product Functions and activities based on products manufactured by the company. 39 . Responsibility for profits at the division level. Promote conflict over product practices. Four Types : By function By product By territory By customer Advantages Disadvantages Difficult to make decision. difficult to understand responsibility for overall tasks. Improves coordination of functions activities. Difficult to determine accountability. By Function Mainly used by smaller firms that offer limited line of products because it makes efficient use of specialize resources. Places attention and focuses effort on product line.4. thus difficult for top management to control. Little coordination and interpersonal skills needed.
4. Stoner. 3. Stephen P. James A. ACTIVITY : 1. By Customer Difficult to coordinate operations between competing customer demands. 6th and. Fundamental of Management.F. Management. Prentice Hall. Responsible for profits at lower level. Requires managers and employees expertise in customer’s problem. 5.By territory Organized around the places Offers better services where operations are located at low cost. Promote job satisfactions Provides good management experience to managers and supervisors.1995. 2. less control for top management. 4. How does size affect structure? REFERENCES : 1. Offer better face to face communication. Decenzo. Prentice Hall. Gilbert Jr. Advantages: 1. Emphasizes on local market and problems. Grouping of activities to Concentrate on reflect the interest of customers needs. Freeman Edwards R. Promotes personal development and their service becomes of greater value. Can you identify the four ways to departmentalize? How do authority and power differ? How do centralization and decentralization differ?. 2. 6th ed 2001. Daniel R. 40 . Flexibility to meet changes Rewarding to managers and staff because it enables them to exercise their own judgment and initiative. different customers Develops expertise in customer handling More staff required.. Robbins.. 2. David A. regional manager are fairly independent. 3.
2.CHAPTER FIVE OVERVIEW : CONTROLLING 1. 4. Understand the definition of controlling Explain the importance of controlling in organization Describe the steps in control process Describe the types of control practiced Apply the effective control system CONTROLLING 41 . 4. 3. DEFINITION OF CONTROLLING IMPORTANCEOF CONTROLLING STEPS IN THE CONTROL PROCESS CHARACTERISTIC OF AN EFFECTIVE CONTROL TYPES OF CONTROL Learning objectives : After completing this chapter student will be able to : 1. 5. 2. 3. 5.
Plans and goals set by organization deals with future which is always uncertain and is constantly changing. Deals with human limitation ( mistake) e. E. - 5. 5.PLOC by determine what is necessary.3 42 .F stoner). The process of monitoring performance and taking action to ensure desired results.1 The Important of Controlling : Assist the management process.: Establish standards and methods for measuring the performance standard. E.As organization grow in size and diversity.5. Enable managers to check on performance. If the performance match the standard no corrective action is needed. Ensure delegation and decentralization are operate smoothly.g market shift.g wrong forecasts thus it help tosspot mistake.g customer waiting time. Its depend on the situation Determine whether performance matches standards. Deals with complexity.2 The control process. product demand. Control is needed to coordinate activities and accomplish integration. Deals with the change. Take corrective action if the performance does not match the standard then corrective actions may be include Characteristics Of Effective System: 5.g R & D gas in the air. they become complex. Measure the performance e.0 Definition: The process to assure that actual activities conform to planed activities ( J. or uncertainty. when and why it is required.
g bank procedure 2.g zero inflation campaign.e. 2. If there are problem corrective. human resource and material resources. 4. Focused on strategic control points. TimelyInformation must be collected and evaluated quickly to enable managers to solve problems on time. 5.1.g restaurant will ask how you find your meal after you have taken it. actions are done and applied to future activities. Screening control ( yes or no control) Check points before an activity proceeds further approval of large amount of cheque. Attempts to measure result of certain action. take corrective actions before final result are achieve. To anticipate potential problems and prevent them from occurring . Steering control To spot problems as they develop or work process. Pre – action control ( feed forward) Control done at input level of production. e. Post action control After an action is completed. ACTIVITY : 43 . 4. 3.(Strategic and results oriented) Focus on strategic control points ( strategic and result oriented) FlexibleIndividual judgment and is modified to fit new circumstance as they rise. 6. E. E.Control must be exercised at all level of management. 5.g finance. 3.4 Types Of Control ( Control Methods) 1. Consistent with the organization’s structure(organizational realistic). Objective and comprehensiveStandard set must be understandable and measurable. Accurate informationInaccurate will cause organization to make wrong decision.
2. CHAPTER SIX OVERVIEW 44 . Prentice Hall. Stephen P.. Management. Decenzo. Practices and skills . Mondy.1995. Allyn and Bacon. 6th ed 2001. Stoner. Wayne. 2. 2. Daniel R. James A. 6th edn.1993. Freeman Edwards R.F. Discuss steps use in controlling? REFERENCES : 1. 6th and. Gilbert Jr. David A. R. Shane R. 3.. Why organization need to focus on controlling? What are the basic relationship between controlling and other management functions?. Premeaux. Prentice Hall. Robbins.1. Fundamental of Management. management Concepts.
Explain about the history of TQM Familiar with the system approach in TQM. Discuss the main ideas of Total quality management. QUALITY 45 . Definition of quality The differences between Total quality management (TQM) and traditional management. Understand the difference between TQM and traditional management. 3. 2.TOTAL QUALITY MANAGEMENT 1. 4. 2. History of TQM A system approach in TQM Learning objectives : After completing this chapter student will be able to: 1. 3. 4.
( what is considered as quality today may not good enough to be considered quality tomorrow) 6.0 Definition : “ Performance to the standard expected by the customer”( Fred Smith. people.(GSA) quality involves meeting or exceeding customer expectations. 6.2 Differences between TQM and Traditional management: TOTAL QUALITY MANAGEMENT Customer Focus Quality first Multiple quality dimensions Management and worker involvement Process oriented TRADITIONAL MANAGEMENT Management focus Profits first Single quality dimension No worker involve Result oriented 6. Japanese industry was completely destroyed and had to be rebuilt from scratch. Number of American went to Japan and helped to built and operate modern manufacturing facilities. processes and environments. service. Contributors : 46 . Goal is customer satisfaction. (Boeing ) An ever changing state.6.1 Total Quality Management (TQM) Integration of application functions and processes within organization in order to achieve continuous improvement of the quality of goods and services. CEO of Federal Express) Meeting the customer’s need the first time and every time. Quality applies to product.3 History of TQM Occurred in Japan after World War II.
Quality is defined as conformance to requirements. 47 . W. The system for achieving quality is prevention.1. Contributing to the emergence of quality circle. not goodness. workers meet to discuss suggestions for improvements. Edward Deming Joseph M.4 THE MAIN IDEAS OF TQM: TQM is a process of continuously improving quality over the long run. a) Culture system: Referred as social system. resulting more jobs. not appraisal. Fitness for use in terms of design conformance. Focusing on the total quality effort on customers. Edward Deming Joseph M. Parts of the system must work to support each other. Juran Philip B. There are five main TQM ideas A system approach : Depends on understanding organizations as systems. W. 3. Quality improves. safety and field use. Cosby Kooru Ishikawa 6. The performance is zero defect. Juran Philip B. Focuses on top down rather than worker pride and satisfaction. 2. at low cost and suited to the market. The measurement of quality is the price of nonconformance. Cosby Kooru Ishikawa Defines quality as predictable degree of uniformity and dependability. Systems: A series of functions or activities within an organization that work together for the aim of organization. 4. availability. ( set of beliefs and resulting behaviors that are shared throughout the organization). Output of one department should be given to another department. costs will decrease and productivity increase.
Internal and external customers define quality and employees produce it.b) Technical system: Factors such as technologies in the physical infrastructure – include ergonomics consideration.5 THE The managerial system Managerial diagnosis Managing and checking points Policy deployment The social system Symbol. Benchmarking – comparing own products and process against the very best in the world. hardware configuration and capital investments. Effort from all levels supervisors to senior executive making TQM success. Cross functional Management goal setting The technical system Tools and techniques The tool of TQM Kaoru Ishikawa determine a good or bad outcome in Fishbone diagram – helps to show possible causes of problems. A focus on customers The role of management 48 . rewards. Management system: Define the effectiveness of those processes by which an organization manages its human and physical assets. recognition. computer software. THREE SYSTEM IN ORGANIZATION c) 6. Know how to pass on authority and responsibility to the people they work and put extra effort to cooperate with other departments.
6th ed 2001. What differ between traditional management and Total Quality Management?. David A.1995. Stoner. 3. 2. 2. What are the main ideas of TQM? Discuss the system approach in quality management?. CHAPTER SEVEN OVERVIEW 49 . Freeman Edwards R.F. Fundamental of Management. Gilbert Jr.H. Decenzo. REFERENCES : 1. 2. Stephen P. ACTIVITY : 1.Employee participation Empowerment.. Berry. Daniel R.. Management. Letting employees make decision at all levels of an organization without asking for approval from managers.1991. 6th and. Prentice Hall. T. Robbins. New York: McGraw – Hill. Prentice Hall. James A. Managing the Total Quality Transformation.
2. student will be able to: 1. Explain what is decision making Explain types of decision making Apply all steps in decision making Familiarize types of state of nature in decision making. Know the condition that affect decision making DECISION MAKING 50 .1 7.DECISION MAKING 7.3 7. 4. 5.0 7.2 7. 3.4 Definition of Decision Making Types of decision making Steps in decision making process States of nature types and decision Condition that affect decision making Learning objectives : After completing this chapter.
Eng is the selection and training of personnel. organizing. Selection of one alternative from two or more alternative. The nature of the problem that occurs is unstructured and something different. 7. controlling.2 Types of decision making : 1. NON.g Nature of problems an decision making in organization 51 . The key to successful decision making depends on the proper formulation of the specific problem at hand.g in planning. rule or procedure (STONER). Decision making is a process which affects all the manager’s operating functions. Grievances procedures for employees are an example of programmed decisions. It is usually made in accordance with some established habit. unusual or exceptional problems.program decision PROGRAMMED DECISIONS It is a repetitive decision that can be handle by a routine approach.0 DEFINITION 7 Process where a course is selected as the way to deal with a specific problem. Non.7.1 THE NATURE OF MANAGERIAL DECISION MAKING Decision making is one of the vital tasks of a manager e. e.PROGRAMMED DECISION This is a type of decision that deals with a unique. 7. Programmed decisions 2.
Virus out break.Highest level Organizational hierarchy structured lowest level organizational levels Un structured Non. 3.E. 7. E. Individual are fully informed in terms of : RISK The nature of the problems Possible alternatives Result of alternatives 52 . These condition are: 1.3 DECISION MAKING CONDITIONS There are three different conditions under which decision are made. E. related rules and policies. Each of those conditions is based on degree to which the future outcome of a decision alternative is predictable.g J. 2. Certainty Risk Uncertainty CERTAINTY: The decision maker knows the out-come of the problems.g grievances procedures for employees. Well structured situations using predetermine decision rules. requires a higher level management participation. unique.programmed nature of problem programmed nature of decision making Programmed decisions A repetitive decision that can be handle by routine approach. unusual or exceptional problem. Non programmed decision Unstructured.
Occurs in the situation in which an individual can define as : Nature problems Possible alternatives UNCERTAINTY Individual cannot even assign subjective probabilities to possible state of nature because the individual do have the information or intuitive judgment to use as basis for assigning the probabilities to each state of nature. Step 4 Implement and monitor the chosen solution Design the implementation for the chosen situation.2 53 .1 STEPS IN DECISION MAKING The understanding of the steps will enhance and improve the analytical and decision making process. Some information are available but not enough to answer all questions and normally most of the management decisions are made under this condition. Define the problem Diagnose the causes Identify decision objectives Step 2 Generate alternative solutions.Future condition are unknown in advanced. the decision maker has to examine the probable desirable and undesirable consequences of each alternative. Steps 1 Investigate the situation. Decision makers responsible for reviewing the plan periodically and comparing the actual performance with the planned solutions. Consider as many alternatives as possible Step 3 Evaluate and choose among alternative solutions Once the possible solutions are developed. 7. State Of Nature Types And Decisions 7.
Novel and creative alternative solutions. low level risk uncertainty and risk. Innovative: Involve combining the discovery. Do not unfold in a logical. Differences: ROUTINE ADAPTIVE INNOVATIVE of High levels of risks and certainty. Solution obtained from standard rules. Made under conditions of Moderate levels certainty. involve many people. Unusual and partially known problems and alternative solutions that are modifications of other known and well define solutions. identification and diagnosis of unusual and ambiguous problems with the unique. Represents an individual decision.Routine Decisions Certainty Adaptive decision Innovative decision Uncertainty Subjective probabilities Objective probabilities RISK CONTINUUM Routine : Choices made in response to relatively well known problems.3 CONDITION THAT AFFECT DECISION MAKING 54 . Represents a series of mini decisions made over a period of months or several years. operating procedures and computer programs. orderly sequence. Made in the midst of a lot other managerial tasks. many and various time. Adaptive: Combination of moderately. 7.
possessing and understanding all information relevant to their decisions at the time they are made.States of nature: Condition. Rational decision and non. Certainty: Managers are fully informed of the problem. probability that certain states of the nature will occur. It include noticing. alternative solutions that will lead to desired result.rational decision model: Rational Make optimal decision. but influence their decisions. Problem awareness and diagnosis. situations and events that managers cannot control. entrance of new competitors into market. Set objectives What to be achieve and by what date. new laws and political instability. interpreting and incorporation Interpreting Managers Assess the forces they have notice determine what is causing it Incorporation Managers Relate their interpretation to the current or desired state of their department/ organization to the future problems. Rational decision : Permits maximum achievement of an objective within limitations of environment in which decisions are made. Noticing Managers Monitor environmental forces and decide which are problems 2.g new technologies. Objectives probability: The likelihood that the state of nature will occur. 55 . Non-rational model Information gathering and processing limitations make it difficult for managers to make optimal decisions. It merges the rationality of the decision maker and the decision into sequence of basic steps: 1. based on hard facts and figures. e.
F. Robbins. 4 5. ACTIVITY : 1. 6th ed 2001. Fundamental of Management.. Prentice Hall.. Daniel R. Discuss two types of decision making?.1995. Stephen P. undertaking. 2. Decenzo. Stoner. Freeman Edwards R.3. 2. Gilbert Jr. REFERENCES : 1. James A. Choose among alternative solution. 6. What are the condition that affect the decision making?. CHAPTER EIGHT OVERVIEW 56 . Final choice Implement the solution selected. consulting experts. 3. Explain the step use in decision making?. thinking creative. including relative cost of each alternatives. David A. Compare and evaluate alternative solutions. Management. Emphasizes expected results. 6th and. Prentice Hall. Search for alternative solutions Seeking additional information.
Identify several leadership styles practice in organization. student will be able to: 1.1 7. 2. PATH GOAL THEORY Learning objectives : After completing this chapter. LEADERSHIP 57 .2 7. 4.3 7.4 7.7 7.0 7. Define what is leadership Explain the importance of leadership in organization Recognize several theories of leadership .8 DEFINITION OF LEADERSHIP IMPORTANCE OF LEADERSHIP IN ORGANIZATION TRAIT THEORIES OF LEADERSHIP BEHAVIORAL THEORIES OF LEADERSHIP LEADERSHIP FUNCTIONS LEADERSHIP STYLES MANAGERIAL GRID (Leadership grid) CONTINGENCY APPROACH/ SITUATIONAL FACTORS INFLUENCING MANAGERIAL STYLE.5 7.6 7. 5. 3.LEADERSHIP 7. Familiarize with factors that influence managerial style.
F. integrity and self confidence. Qualities such as intelligence.employer and employees. Prentice Hall. reward. Leaders have certain inborn personality or leaders are born with certain characteristic. and 8. John Wiley and Sons..8. charisma. ( stoner. Management for productivity.0 Definition : Process of directing and influencing the tasks related activities of group members. New Jersey. - 58 . enthusiasm. J. bravery. 8.A. strength. expert power and legitimate power or authority. 6th edition) The process of directing human resource efforts toward organizational objectives ( Schermerhorn. referent. Involve unequal distribution of power between leaders and group members Involves the ability to use the different forms of power to influence.2 Trait theories of Leadership: The average person’s definition of leadership are : Evaluation and selection of leaders are based on their physical. decisiveness. 5) About values – Moral.1 1) 2) 3) 4) Importance to organization Make contribution to organization Enhance and elicit cooperation Encourage teamwork Motivate employee to generate good work. mental and psychological characteristics.2nd edn) Four important facts are: 1) 2) 3) Involves people. management. R . John. obligation responsibilities towards employees.
Group maintenance/ social function. offering information. mental Intelligence. opinion. 8. personality managerial supervisory ability. factors.Set of Traits that differentiate leaders: Traits of leaders and non. Traits can be gained leaders through learning process Traits of Effective leaders and nonEffective leaders Does not depend upon particular set traits. It depends on how well the traits match the requirement of the situation that / she is in. RESULT Traits of leaders and non.leaders Cannot point out the differences between of leader and followers.4 LEADERSHIP FUNCTION: Considered to be effective when practices these functions: Task related/ problem solving function. counseling. E.. self assurance and ability.leaders. Two aspects of leadership behavior : Leadership function Leadership styles 8. 59 . Physical appearance.3 BEHAVIORAL THEORIES OF LEADERSHIP This theory is believe that people can learn the characteristic of a leader or people can be train to be a leader. E.leaders Traits of effective leaders and noneffective leaders. The traits theory failed to isolate prominent traits to distinguish between leaders and non.g agreeing the work performed by his/ her workers practice empathy or sensitive to her/his subordinate’s feeling. An effective leader must performs both functions simultaneously. Help the group to operate smoothly. charisma.g suggesting solutions. behavior/attitude.
This show high amount of consideration towards employee’s ideas and feelings. Managers try motivate rather than control the employees. sensitivity to other’s needs and mutual trust. Encourage to participate in decision making. 8. Characteristic of Manager: Warmth and has special rapport with subordinates. It concern for both employeeoriented and task oriented styles of leadership to be practiced simultaneously.6 MANAGERIAL GRID ( leadership grid) Developed by Robert Blake and Jane Mouton. 2. 60 . Trust and respect are developed. Concern on getting the job done to her / his satisfaction rather than develop or employee growth.5 LEADERSHIP STYLES : Generate into two different leadership styles : 1. Respect. - Task oriented function/ production centered.8. Plan and defines work to be done Assigns task responsibilities Sets clear work standards Urges task completion and monitor results Supervise employee. Employee oriented/ people centered.
1 1.9 5.5 (1. ( Autocratic) 9. Managers concern for feeling and interests of the group members.5 9.1) Little concern for either production.1 Impoverished management Country club management Middle of the road Autocratic/ authoritarian/ management (9.9) Concern For people (9. Leaders want work schedule to be followed at all costs. ( Democratic) 61 .fair people or Full attention to people’s need but low concern for production. management. Work accomplishment.The Managerial Grid High ( 1.9) 5. Moderate concern for people and production Task High concern for production and low concern for people.1) Concern for production Managerial grid identifies five leadership behaviors :1.9 Team/ High concern for people and production participation/democratic/supportive relationships.Laissez.
1 Path goal model Life. supportive. self control and experience. open minded. according to level of maturity of employees Clarify to employees the and demands of situation. Leadership behavior depends on situation such as leader. Predict leadership style that will be most effective. PATH GOAL THEORY Life – Cycle theory or situational approach ( by Paul Hersey and Kenneth Blancard) Path goal Model – By Robert J. Employees attributes ability. Source for rewards. provide training. kind of behavior Behavior will contribute to employees satisfaction. position power. Increase goal attainment Clearly defines job requirements. .7 CONTINGENCY APPROACH/ SITUATIONAL APPROACH Focuses on situational factors influencing managerial style. organization culture and policies. employee’s characteristic. It tries to identify : Find out whether there is any leadership style appropriate in particular situation. Two leadership models developed: 1) 2) 8. Result from theory: No one leadership style appropriate in all situations. assist employees. E.8. participative and achievement oriented. expectation. 62 .cycle or situational approach.7. Identify which style is most important at any circumstances.g leaders give directive. task structure. House Leader : - Leader : Make valued or desired Must change style of leadership rewards. experience.member relationship.
e. E.g A leader explaining to employee how they can qualify for overtime pay.g Recognition and praises. Life – cycle Theory high Phase 3 High R/ship Low Tasks Phase 4 Low Tasks Low R/ ship Low Low Task Behavior Maturity High Moderate Immature Low Phase 2 High Task High R/Ship Phase 1 High Task Low R/ ship High 63 .g leader replace new equipment.2 LIFE –CYCLE OR SITUATONAL APPROACH Developed by Hersey and Kenneth Blanchard. b) c) d) 8. Reducing frustration barriers to reach goals.g training. E. Increasing rewards to employees who achieve goals.Path goal theory will enable managers to influence their subordinates by : a) Activating subordinates needs for rewards over which the leader has control e. helping them to reaching goals.7. Making the path to rewards easier through coaching and direction. This theory says that a leader should change his style of leadership according to the level of maturity of his employee and the demands of situation of the situation.
4.g providing direction. 3. 2. Employee lack of task relevant maturity. The willingness and ability to accept responsibility The education/ experience and skills relevant to particular tasks. More experience and skilled as well as achievement oriented. Amount of task behavior that the leader shows ( horizontal axis) ( e. Managers reduces the need for task relationship and continues to give emotional support and consideration to increase employees level of responsibilities.g providing consideration and level of emotional support) The level of task maturity the followers ( employees) show towards achieving specific goals ( tasks or functions) that the leader wants accomplished. how and where to do task. possess a high level of task maturity.The diagram shows the relationship between : 1. They no longer need high level of supportive or task behavior from their leaders/ managers. E.Participating Employee show maturity in performing tasks. Maturity means : 64 .Telling Leader use one way communication. They are skilled and experienced and motivated to assume more responsibility. Explanation : 1. 3. Phase 2 (HT/HR) – Selling Employee are learning to do the job. controlling and monitoring) The amount of relationship behavior the leader provides ( Vertical axis) ( e. Phase 4 (LR/LT) – Delegating Highest level of employee maturity. 3. 2. Defines the goals and roles of employees and tell what. 1. High task relationship is needed because employee lack of experience and skills. They are self directed and are able to exercise self control. Being motivated to assume more responsibility. A desire for achievement.g employee relatively new and in experiences. Managers provide high level of emotional support and encouragement to develop trust and confidence . 2. guidelines. Phase 3 (HR/LT). Phase 1 ( HT/LR).
Management Concepts. Premeaux. Stephen P. Wayne. The managerial grid III. R. 6th edn 1993. what leadership style you may practice? In what way leader can increase productivity?. Shane R. Discuss the relationship between leadership and management? If you a boss in any organization. Prentice Hall. Allyu and Bacon. 2. 65 . 2. Robbins. Mouton. Management 6th edn 2001.1985 Houston : Gulf Publishing.ACTIVITY 1. Practices and Skills. Robert Blake and Jane S. 3. Mondy. 3. REFERENCES : 1.
2. Understand and apply contemporary theories of motivation. you should be able to : 1.CHAPTER NINE OVERVIEW MOTIVATION: 9.0 9. Explain the concepts of motivation and its significance in the managerial process.1 9.3 DEFINITION MOTIVATION PROCESS EARLY VIEWS OF MOTIVATION CONTEMPORARY THEORIES OF MOTIVATION Hierarchy of needs Theory X and theory Y Life cycle theory or Situational approach Two factors theory Learning objectives : After completing this chapter.2 9. 66 .
2.9. ( R Wayne Mondy. 4th edition) tangible – higher pay.1 Motivation process. challenging and attainable. respect. employees. Increase your employee expectation that their efforts will lead to effective performance. bonus and benefits Intangible – reputation.0 DEFINITION : The willingness to put forth effort in pursuit of organizational goals.Individual. Efforts are forces to perform. Encourage your subordinates to set performance goals that are specific. Needs ( unfulfilled) Tension Drive Search behavior Reduction tension Satisfied Needs ( Needs fulfilled) 9. recognition or achievement. Management. People need organization to achieve goals and organization needs people to achieve its goals. manager. Be sensitive to the differences in needs and values.3. Good motivation practices will help leaders and managers: 1. Increase your employees expectations that their efforts lead to effective performance. EARLY VIEWS OF MOTIVATION 67 . 3. 9. This lead to effective and efficient organization.
self direction and self control than their present job demand. The Human Resources Model. The traditional model.Manager should closely supervise make each worker and control feel useful subordinates. distasteful to most people. 3. Allow 3. Associated with Doughlas Mc Gregor’s Theory X and Theory Y. which related to Elton Mayo and Hawthorne studies. listen to their repetitive. encourage participation. Taylor and Scientific Management. learned operations. self direction or self control. 3. Most people exercise more creativity. 2. Human Resources Model 1.Create environment where members can contribute. 2) Need to belong 2) What people do to a group. 2.Manager should 1. Must establish subordinates to detailed work exercise self routine and control and self procedures direction on routine matters. they learn for doing it. associated with Frederick W.People want to contribute to meaningful goals. Traditional Model Assumes Human Relation Model 1) Work us 1)People want to inherently feel useful. Management policies 1. 3) Few people want to work to involve in work that requires creativity. The Human Relation Model.Manager make use of under utilized human resources. 3. 1. 2. easily objectives. They are :1. full 68 .There are three early views of motivation.Manager must subordinates break down task informed and into simple. 2.Should keep 2. is less important organization to be rather than what recognized.
vise versa.Expanding subordinates influence self direction and self control will lead to direct improvement. Work satisfaction may improve as a ‘ by product” of subordinates making full use of their resources. 2.1 HIERARCHY OF NEEDS 69 . If tasks are simple. 1.) 9. 2.People can tolerate work if pay is decent and boss is fair. A person will be motivated when she or he has not yet attained satisfaction with their life.General expectations 1. This is because people are different in nature. Need vary among individuals.( Theory X and Y. Sharing information with subordinate and involving them in routine decisions will satisfy their basic needs to belong and to feel important. This means behavior with positive consequences tends to be repeated.4. people are closely controlled they will produce work that is up to standard. ( Hierarchy of needs) B) PROCESS THEORY Process where individuals give meaning to rewards that will allow them to influence their behavior or process theory explain how individuals are motivated or the steps that occur when individuals are motivated. 9. 1.4 CONTEMPORARY THEORIES OF MOTIVATION a) b) c) A) Need theory or Content theory Process theory Reinforcement theory NEED THEORY OR CONTENT THEORY People need or require to live fulfilling lives. particularly with regard to work. ( Herzberg two factors theory/ hygiene theory) C) REINFORCEMENT THEORY Describes how people learn patterns of behavior based on environmental reinforcements.
freedom from coercion and a need for clearly defined regulations. Self. and shelter from environment 2. 4. These needs are arrange in a hierarchical order . Social needs or “ Belongingness” Need for companionship. These are for our survival. Self – Actualization needs 3. 5.Introduced by Abraham Maslow. need to love somebody as well as the need for social interaction. Examples are job security. or need for personal “ belongingness”. Physiological needs These need are our basic needs. water. E.g are love. Self esteem needs It is also known as growth need. E. opportunities for advancement. It is a need for self-esteem and self growth. Safety or security needs Deals with our physical and psychological safety from external threats.g food. 70 . E.actualization needs higher order Self-esteem needs Social needs Safety needs Physiological needs lower Order needs 1. He states that all people possessed a set of five needs in them.g are respect from others. recognition. achievement as well as prestige and status. They are the lower order needs and the higher order needs.
Supervision Recognition -Relationship with supervisors/ boss Work itself -Working condition Responsibility -Relation with peers Advancement -Relation with workers growth -Status -Security How you apply this theory? Both hygiene and satisfier factors are two separate entities. It causes feeling of job dissatisfaction.It comprises needs for the development of one’s full potential or the realization of one’s own potential. b) SATISFIER FACTOR Also known as motivating factor. 71 . From the study. Satisfier factor is related to the job content of individuals. It associated with the work setting of an individual. It associated with job context.4. The absence of one does not affect the other. The factors are: a) HYGIENE FACTORS Also known as dissatisfier factor. it was concluded that individuals’ work satisfaction and dissatisfaction arise from two different sets of factors. Source of job satisfaction and job Dissatisfaction Factors that led to extreme job Factors That Led to extreme job dissatisfaction satisfaction -Company policy and administration Achievement .2 TWO FACTOR THEORY Introduced by Frederick Herzberg by studying the job attitudes of 200 engineers and accountants . Often called as job content. 9. Satisfier causes feelings of satisfaction. Improving them. Hygiene factor only affects job dissatisfaction. such as changing the rule. policy on dress code in the work place can make people less dissatisfied but does not contribute to job satisfaction or motivate the employees to increase their work effort.
7. 2. 2.3 THEORY X AND THEORY Y This theory was developed by Douglas Mc Gregor. view their employees in terms of the following characteristics: 1. 5. Coercive power will be used. 3. Theory Y managers. managers need to turn their attention away from hygiene factors and focus on improving satisfier factors. 4. 2. 6. Capable of directing themselves ( self direction) Capable of self –control Frequently using imagination. 72 . Improvements made in the satisfier factors can increase job satisfaction. work is as natural as play or rest. These managers in order to make sure that their employees do their work. the managerial implications associated with the two factor theory are: 1. 3. have to apply the autocratic style of leadership where the employee have to be constantly directed and controlled. Therefore. Improvements made in the hygiene factors can prevent or eliminate job dissatisfaction. Here managers have a traditional or a pessimistic view of motivation with regard to employees. Inherently disliking work Avoiding work whenever possible Lacking in ambition Irresponsible Resistant to change Feeling that work is of secondary importance Preferring to be led than lead. Having to be pushed by managers to work. However they will not prevent job dissatisfaction. Managers of theory X view the employees in terms of the following characteristics: 1. since work brings satisfaction. To motivate. 9. ingenuity and creativity in accomplishing tasks. 4. 8. However. This theory describes the views or perception of managers with regard to their employees. 5. Willing to accept responsibility. they will not improve job satisfaction.4. Willing to work.The factors that will contribute to employee’s satisfaction will be the satisfaction factor.
To ensure high performance. Prentice Hall. Discuss how Herzberg two factors theory help in motivating employees? If you a manager. Edward R.L. Schermerhorn.. 3rd edn. freedom and responsibility in their work. Freeman. 3. Holt. where employees are allowed more participation.1993.. 1995. 2. Theory. Theory Y manager will delegate the authority and allow employees to participate in decision making. Motivation. Greater job autonomy and task-variety is offered to employees. managers need only to apply the participative style of leadership. 2nd edn. 6th edn. ACTIVITY 1. 73 . Daniel Jr.. H. Prentice Hall. Petri.Management. John R. Principles and Practices.F. David H. 4. John Wiley and Sons.. 2. New Jersey. J.C. Management. and Gilbert. Belmont. What can you do to motivate your staf?. REFERENCES : 1.A: Wadsworth Publishing. Research and Application 3rd edn.. Stoner. (1990).Theory T is optimistic view. Management for Productivity.A.
Explain the communication process Explain different channels of communication. Overcoming barriers to effective communication. 5. 3. 4. Define what is communication Understand the importance of effective communication. DEFINITION OF COMMUNICATION IMPORTANCE OF EFFECTIVE COMMUNICATION THE COMMUNICATION PROCESS CHANNELS OF COMMUNICATION BARRIERS TO EFFECTIVE LISTENING OVERCOMING BARRIERS Learning Objectives : After completing this chapter. student will be able to : 1. 2. 5. 74 . 3.CHAPTER TEN OVERVIEW COMMUNICATION 1. 2. 6. 4.
Organizational communication. by speech. 3. 4. Management function. knowledge etc. OR The process by which people seek to share meaning via the transmission of symbolic messages. OR Oxford English dictionary – Imparting.1 IMPORTANCE OF EFFECTIVE COMMUNICATION Convey information Giving instruction/ commanding action Persuading or influencing change 1. Process of sending and receiving messages among individuals and groups called interpersonal communication. In leading and motivating managers need to inform employees of doing the right tasks. In organization – Disseminating of information through memos. Everyone in the organization need to be informed of the objectives and goals of the organization. 75 . 2. conveying or exchange of ideas. Assist managers coordinating and integrating the work groups. reports and newsletters.. 5. writing or sign. 10. allocating and correcting mistakes. Employees need information to conduct tasks. The science of transmitting information.PLOC requires effective communication.0 DEFINITIONS : Webster’s dictionary “ the arts of expressing ideas”. letters.COMMUNICATION 10. Discuss face to face meeting. bringing in with exchange.
The element of the receiver’s response which the receiver communicates to the sender.g I’m looking for a place on PR course.g spoken English . Interpretation. 10. The telephone The information itself as encoded by the sender. Person who receive the information. 76 .The receiver’s thought process on getting The message.Managers is considered effective in his instruction when employees acts according to instructions.g incomplete information.2 COMMUNICATION PROCESS Classic model of communication developed by Shannon based on fine questionwho—says what---. From in which the message is.in what way -----to whom----with what effect. E. So that the receiver gets a different message from the one that was sent e. E.g switch board Operator.g that course is full. Any kind of interference which results in distortion. Noise Sender encording message Medium Noise Feedback decording Noise Receiver Sender Encoding Medium Message Decoding Receiver Feedback Noise : : : : : : : : Person with information to communicate Ways in which the information is expressed. E. E.
work schedules.10.3 FORMAL COMMUNICATION Information flows around organization whether or not they try to control it. Convey info to their superior. INFORMAL COMMUNICATION Grapevines between individuals and groups can be job related or personal. Upward – through suggestion schemes or some other form of feedback to management. rules. Information can be accurate/ inaccurate Four types of chains show how individuals convey information. a) Vertical communication: Downward.g policies.In the form of instruction and information e. b) Lateral communication Horizontal communication at the same level. procedures. Single strand Z D C B B A A Gossip probability M S A C A N B X D F Cluster J I L DE F G H T K I J 77 .
Intrapersonal communication Between you and god Interpersonal communication Deals with communication between people usually face to face. 6. 4.10. 10. 5.4 LEVEL OF COMMUNICATION 1. internet etc) 4. Received by or used by large number of people ( postal service. Organizational communication Occurs in large cooperative networks and include virtually all aspects of both interpersonal and group communication. 8. 5. 2.5 ORGANIZATION INVEST IN COMMUNICATION FOR SOUND BUSINESS REASON. 7. 2. usually in decision making setting. Effective employee performance Manageability Sharp. 3.end feedback Motivation Team spirit Crisis preparation Participative staff Good relation with its public 78 . Group communication Relates to the interaction of people in a small groups. Mass Communication Deals with public communication . 3. 1.
Credibility of the sender Associated with person’s feeling of love. avoid using the same non verbal. clothing. Face expression and movement.6 Improving The Comunication Process VERBAL COMMUNICATION Spoken words. defensive. 2. 10. Noise Factor interferes. Filtering Alteration of information to make it interesting. It is in form record and evidence.7 Barriers to effective listening 1. use facial. dress and appearance Obtain feedback. hand gesture. jealousy. bulletin boards. NON-VERBAL COMMUNICATION Means of gestures and to express feelings and emotions. memo. use mirroring to establish rapport. hand and body gesture to supplement speech. fear. hate. Info well kept. anger. newsletter. speed up exchanging ideas and get direct feedback. 5. embarrassment and enthusiasm. Verbal face to face. 3. easy to retrieved. fax. learn to relax when communicate. posture.10. writing letters. Poor listening Semantic Certain words may be interpreted differently by different people. letters. 79 . confuse or disturb the messages from reaching the receiver. body placement. 4. voice tone. mail. use role playing. positive and acceptable to the receiver.
4. Understand verbal and non.10.Use bias free language d.Modify language and use words appropriate. Create openness. Send message in an effective way a.8 OVERCOMING COMMUNICATION BARRIERS 1. visit site. 3.Be specific c. 8. clothes.Plan and clarify ideas before communicating b. 80 . 5. 7. repeat message. rational and trust Instill an atmosphere of openness. 2. Obtain feedback Ask question. Use simple language Technical terms must be clearly explained Recognized emotions Empathy Do not make own conclusion Listen to all issues carefully Avoid noise Identify it cause or sources. postures and gestures. 6.verbal communication Facial expression.
Management for Productivity.. 2. 6th edn. 1995. 81 . 2. David H. New Jersey. Daniel Jr. 2nd edn. John Wiley and Sons. Management. Explain the important of the two communication channels in organization?.A.. Edward R. organization overcome ineffective communication process. J. 3rd edn. For what reason organization invest in communication?. 3. Prentice Hall. Management.1993.F. Stoner. Holt. Schermerhorn. 3.. and Gilbert. Principles and Practices. Effective communication importance to organization.ACTIVITY : 1... Freeman. Prentice Hall. John R. Discuss how REFERENCES : 1.
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