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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.
Middle managers direct the activities of lower – level managers and sometimes also those of operating employees.president”. Actual titles vary from one organization to another. It establishes operating policies and guide the organization’s interactions with its environment. the top management is responsible for the overall management of the organization.middle manager .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. c) Top managers A comparative small group of executives.b) Middle managers Middle managers can include more than one level in an organization. “ president”’ and “ senior vice. Typical titles of top managers are “ chief executives officer”.General manager 1. MANAGER By their level in the organization -first line manager .4 MANAGEMENT SKILLS 5 .
human and conceptual Technical skill.A manager’s job is diverse and complex.Is the ability to use the procedures. musicians and accountants. Surgeons. Human skill .5 MANAGERIAL ROLES 6 . understand and motivate other people as individuals or in groups.The ability to work with.Katz. and requires a range skills. Conceptual skill – ability to coordinate and integrate all of an organization’s Interests and activities. techniques and knowledge of a specialized field. FIRST-LINE MANAGEMENT Conceptual Human MIDDLE MANAGEMENT TOP MANAGEMENT Conceptual Human Technical Conceptual Human Technical Technical 1. every manager needs all three but the amounts differ by their level in organization. Three basic kind of skills : technical. Robert L. engineer.
3.A department head performing ceremonial duties like greeting visitors.managers is responsible for corrective actions when the organization faces important. B 1. Leader Liaison . 2. 2. training and motivating subordinates in the organization. Decisional roles 1. Negotiator Manager is responsible for representing the organization at 7 major negotiations .Information received internally or externally will be transmitted to the subordinates .Information will be transmitted to people outside the organization or unit Thus.A person who perform and interacts with other people outside the organization. Figurehead .A person who is responsible for hiring. organization 3. Informational Roles Monitor . the informational roles are to assist the manager in receiving and communicating information to make the right decision. According to Henry Mintzberg “ The nature of managerial work”’ managers perform ten inter.Manager continuously seeks information that can be use to advantage Disseminator . 3. 2. Informational roles 3.Manager is responsible in allocating the resources of the Managerial Activities 4. unexpected disturbances. entrepreneur Manager tries to improved the unit and initiate the changes. Ten roles classified under three main roles : They are : 1. The interpersonal roles are to help the manager in managing organization smoothly. Interpersonal Roles 1.The specific classifications of managerial behavior. . 1. C. signing legal documents etc. Spoke person .6 Resources allocate . Decisional roles A. Interpersonal roles 2.related roles in the organization. Disturbance handler . .
subordinates. directing. The production manager and supervisor have created a certain environment where workers will want to produce more so as to meet the target. organizing. who is to do them. Planning .monitoring activities to proton Ensure that they are being Accomplished as planned and Correcting any significant Deviations. how the tasks are to be grouped. 3. 1. Production workers were assigned to different supervisor assembly lines / unit many productions activities were rearrange so as to achieve the goals Specified.7 THE CHALLENGE OF MANAGEMENT 8 . who reports to whom and where decisions are to be made. 1. 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. selecting the most effective communication channels. 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.Include defining goals establishing strategy and developing plans to coordinates uses activities deal with planning. and resolving conflicts. 4. Controlling .Managers are the people who controlling. Leading Includes motivating.
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. managers have to face and contend with a wide variety of challenges in pursuing their mission. An approach that involves granting employees the freedom and responsibility to do their job as they think best.In an environment which is rapidly and constantly changing. efficient organization. they are likely to find their organization survival at a brink. Organizational restructuring and consolidation. Success goes to the managers who can recognize and seize the opportunities. c) d) e) f) 9 . This challenges can and do influence the work of managers and affect the performance of the organization as a whole. Re. 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. This trend will shape the managers’ environment through the movement towards more streamlined. 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. Concept where organization is slimming down or downsizing operations in order to focus on resources and boost profits or decrease expenses. Current and poses another new challenge to management and organizational today. If the managers do not closely monitor this challenges or changes in the organization environment or fail to respond quickly to this changes.engineering A radical rethinking and re-designing organization’s processes to achieve drastic improvements in performance ( Micheal Hammer) Empowerment. without constantly having to appeal to higher authorities for permission.
F.. 2. Fundamental of Management. Prentice Hall. Give examples of how they would be used by the following person(s). CHAPTER 2 OVERVIEW 10 . James A. Robbins. What is management and what is organization ? List and define four (4) management functions. Stoner. Freeman Edwards R.. 2. 6th ed 2001. Decenzo. 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. 6th and. Gilbert Jr. Daniel R. Stephen P. Management. David A. REFERENCES : 1.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 1.1995. Prentice Hall.
3. 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.EVOLUTION OF MANAGEMENT THEORIES 1. Understand the beginning of management practice Explain several management theories .0 EVOLUTION OF MANAGEMENT THEORIES 11 . 2. 2. 3. 5. Apply several techniques of management practice. 6. 4.
People think ways to improve efficiency and effectiveness.Begin from ancient civilization. The factories became widespread and large number of employees need to be coordinated. houses. touching on strategy. Charles Barbage ( 1792-1871) b) 12 .1. sanitation. Organized management practice in 2000 B. 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.1 THE FORMATION OF MANAGEMENT PRACTICES Management thought started with industrial revolution around 1800. educational system. supervise to built within specified design and time.1 Pre classical view point. Tried to upgrading streets. Great Pyramid in Egypt. planning and leadership use by military strategy. 100.C during King Hummurabi. 2. Therefore the challenge had motivated a number of individuals to think of ways and means to run the factories more effectively. 2. China – Sun Tzu War. 400-500 young children who worked 13 hrs (11hrs/2hrs off for meals) Concerned for the working and living condition of workers.000 workers involve. This point saw the invention and use of machinery setting up factories and creation of entrepreneurial capital that finance the industries. Egyptian use mathematical to organize labor.
Henry R.working at less than full capacity meaning feared that.1. Outlines the importance of management as a science Called for the development of management principles. 13 . Three different approaches : a) b) c) Scientific management Bureaucratic management Administrative management 1. Towne ( 1844-1942) A Mechanical engineer. Increasing their productivity would cause them or others to lose jobs. 2. Observed ‘ soldering ‘ by employees. 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.c) Known as father of modern computing English mathematician. Observed good engineering skills and good business skills were rarely combined but both were equally important to run organization. Generate rules handed down were inefficient. Three different approach are: a) Frederick Winslow Taylor ) 1856-1915) The father of scientific management. SCIENTIFIC MANAGEMENT Approach that emphasizes findings ways to manage work efficiently. president of Yale and Towne Manufacturing company. The idea of work specialization – work is divided into various jobs. Ideas used in scanlon plan. pioneered in computing and management. Faulty wage system encourages workers to operate at slow pace.2 CLASSICAL VIWEPOINT A perspective on management that emphasizes finding ways to manage work efficiently.
He divide work into different task. b) 2. scheduling and control. developed science management : 1) 2) 3) 4) Scientifically study each tasks and develop the best method for performing the tasks. He redesigned the work. Frederick made use of time and motion study to substantiate his theories and increase productivity. Management tool that helps managers to schedule their work. 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. formal rules. improve production by his principle.which will help people to reach their maximum potential by developing their skill and abilities. people promoted on merit) DESCRIPTION CHARACTERISTICS 14 . Cooperate fully with employees to ensure them using proper method.Thus. 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. procedures. Carefully select employees. Divide work and responsibility. Henry L Gantt (1861-1919) Gantt chart – graphic aid to planning. train them by using scientifically developed method. Lilian define scientific studies management must focus both analysis and synthesis.management should develop a science for each tasks to be performed. Management will plan work method using scientific principles and employees are responsible for executing the work accordingly.
ADMINISTRATIVE MANAGEMENT An approach focuses on principles that can be used by managers to coordinate the internal activities of organizations. With authority comes responsibilities. Necessary to run the organization. Formal rules and procedures Impersonality Well defined hierarchy Career advancement 3 . Multiple level of positions. The right to give orders and power to exact obedient. provide supervision of lower offices by higher offices based on Selection and promotion based on the qualifications merit and performance of members. policies and sanctions are applied uniformly without prejudiced. so that members know what is expected from them thus. it b) Authority c) Disciplines 15 . 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.Specialization of labor Jobs broken down into routine. 1. carefully reporting relationships among levels. become more competent. to ensure uniformity and facilitate coordination Rules.
The amount depends on situation. High turn over is not rate will effect the functioning tenure of organization. one plan and one person in charge.depends on the worthiness of its leaders. Materials in the right place.. Employees treated with kindness and justice. Activities aimed at the same objective. The interest of one group of employees should not interest to general interest prevail the interest of the organization. Objectives is to optimum use of the capabilities of personnel. Compensation should be fair to both the employee and employer. 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. Select right employee for the right place and right time. managers encourage and develop subordinates initiative to the fullest.Horizontal comm. A scalar chain of authority extends from the top to bottom of an organization and defines the communication path . Chester Barnard (1886-1961) 16 . d) e) f) Unity of command Unity of direction Subordination of individual Employees should received orders from one superior only. easy to retrieve and facilitate activities. is also encourage as long as managers are informed.
Employees willing to accept orders if they understand the communication. may be due the added attention they receive from researchers. 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. 1920s. feel that the actions indicated are inline with their need and other employees and view themselves as mentally and physically able to comply. Managers real powers come from the degree of acceptance of his workers. Found that the women still increased their productivity period. Mary Parker Follet Focus in group dynamic.employees work together. 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. 2.1.- - Acceptance theory of authority.early 1930s : Monitored the five women assembling electrical relays.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. see the communication consistent with the objectives of organization. 2) Human Relation Movement Two theorist : b) d) 17 . = Hawthorne effect – improve performance.3 BEHAVIORAL VIEWPOINT Emphasizes the importance of attempting to understand the various factors hat affect human behavior in organizations.
4 QUANTITATIVE MANAGEMENT VIEWPOINT Emerged as a major force in world war 2 Focuses on the use of mathematics. Behavioral Science Approach Emphasizes scientific research as the basic for developing theories about human behavior in organizations.1. Management science/ operation research 18 . Theory Y. c. little ambition. have capacity to be creative. statistics and information aids to support managerial decision making and organizational effectiveness 1. Physiological need ( lowest) Safety Belongingness Esteem Self Actualization Douglas Mcgregor (1906-1954) i) ii) iii) iv) v) b. psychology. Employees do better with attainable goals than without goals. Theory X and Y – managers view their workers in one of the categories. It include management.Employees are capable of self control. anthropology and economics. sociology. managers can be used as guides in assessing various situations and deciding appropriate actions. Operation management 3. higher level need are often unmet on job. Once has satisfy basic need before other can be taken care.a) Abraham Maslow (1908-1970) Contribute to the theory of motivation “ hierarchy of needs”. Management science/ operation research 2. Management information systems 1. Theory X – assume employees are lazy. This Dictated people’s motivation to perform task.can be use to establish practical guidelines for managers. Conclusion – managers who assume best of their employees are rewarded with committed and satisfied workers. focused on security needs. 2.
production planning. Emphasize that a change in one part can affect others It considers how an organization interacts with its environment. Open System A system that operates in continual Inputs 19 . financial.g system that run raw data to information. Providers a framework for assessing how well the various parts of an organization interact to achieve common goal. equipment and informational resources required to produce goods and services. Transformations Managerial and Technological Process Abilities: Planning. Management Information System The field of management that focuses on designing and implementing computer based information systems for use by managements . Components of system Human material.Aimed at increase decision effectiveness through the use of sophisticated mathematical models and statistical methods. E. inventory analysis. Feedback Information about result and organizational status relative to the environment Advantages of Systems approach : can be analyze at different levels. 2. System theory An approach based on the assumption that organizations can be visualized as a systems. Organizing.g work scheduling.1.5 CONTEMPORARY VIEWPOINTS Major innovations in ways of thinking about management: System theory Contingency theories 1.better to operate in open system. Controlling and technology –to converts inputs into outputs. System – A set of interrelated parts that operate as a whole towards a common goal. e.use by the organization. Operation Management The function/ field of expertise for managing the product and delivery of an organization’s products and services. 3. 2.
Prentice Hall.. REFERENCES : 1. 4. 3. ACTIVITY : 1. 6th ed 2001.F. Identifies contingency principles to take action on the situation. What is contingency approach to the study of Management?. 2. 2. Does little or no interaction with environment. Stoner. What were the Hawthorne studies? Why was the human relations movement important to management history?. - Contingency Theories Appropriate managerial action depends on particular parameters of situations.. How did Industrial Revolution Influence Management Practice? Why did scientific management receive so much attention?. David A.1995. Freeman Edwards R.appropriate actions by managers depend on situation. Daniel R. Management. CHAPTER 3 OVERVIEW 20 . Robbins. 6th and.Closed system interaction with its environment. receives little feedback. Stephen P. James A. 2. Decenzo. Gilbert Jr. Fundamental of Management. Prentice Hall. Successful companies operated differently depending on their technology category.
PLANNING 3.1 3.6 3. 3. 6. 4.1 DEFINITION OF PLANNING AND PLANS 21 .3 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. 7. Familiarize with types and nature of decision making. Explain the importance of planning Explain what is “ goals” and “Objectives” Apply various types of plans in planning Define what is “ decision making”. 2.5 3.4 3. Outline the steps in decision making process.0 3. 3. Explain the differences between planning and plans. student should be able to : 1. 5.
3. you can infer that plans should be: 1. Planning is an important managerial functions. When should the action be completed?. policies and detailed plans to achieve them. It is important because organization are effected by change. factual. whether he is top manager or lower level manager. politic and social. he has to plan. plans are statement of how objectives are to be accomplished.1 PLANNING Important to all organization. Planning establishes an organization to implement decisions and includes a review of performance and feedback to introduce a new planning cycle. 2. there are several questions that need to be asked to realize the organization’s goals. economic. Based upon the definition stated above. defined strategies. managers can inform their subordinates about the expectations of the management and the objective of the organization can be realized. Through planning. Planning allows us to be more certain and to plan for the future.3.1.3 THE IMPORTANCE OF PLANNING IN ORGANIZATIONS 22 . A process that begins with objectives. What activities are required to accomplish the objectives? 2. 1.2 PLANS According to Mondy. Whatever activities are planned by the managers. A manager must plan ahead to get things done through his subordinates 3. Who is responsible for doing what? 4. Where should the activities be carried out? 5. Formally prepared Observable. ( MONDY) . (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”. As a manager. When should these activities be carried out? 3. logical and realistic Planning is a pervasive and continuous executive functions involving complexes processes.
4 TYPES OF PLANS 23 . It assists a manager in attaining confident and aggressive leadership. 3. It provides for effective utilization of available facilities of an enterprise. Through plans. By means of planning. 9. 6. It help to achieve goals and reduces random activities and needless overlapping. Without proper plans much will be left to chance an therefore to risk. the profitable alternatives that exist are identified through a planning process. a manager successfully copes with his affairs and problems.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. Planning can point out the need for future changes. 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. It can reveal opportunities for new services. In other words. Planning enables us to identify the course of action by setting objectives and choosing alternatives that will be most profitable. What is really happening become more meaningful when we know what is really expected. Not to plan is to manage as a results of events rather than by use of foresight influence an action. resources are efficiently and effectively utilized. 8. 2. 7. rather than allowing them to dilute and negate his efforts. thus resulting in saving. 5. 4. Planning helps to determine what opportunities there are to exploit. 3.
marketing pharmaceuticals products can be the mission of a drugs manufacturing company.confident. large or small it must set goals. lead and control their departments or company successfully. Characteristics of setting goals are: 1. Mission It is the purpose or reason for the existence of an organization. Well defined goals provide a solid basis for managers to organized. 3. The goal must be clear and coordinated 3. manufacture and market pharmaceutical products that assure strong growth and profitability. Accomplishing goals leads to self. Purpose It is define as an intention to produce a specific good or service. Goals is organizations provide the ends towards which people direct their efforts. The goal must precise.g. Greater risk taking and more action.1 TYPES OF GOAL : 1. managers do need to know the various types of plan. 2. Goals are the ends toward which activities is aimed. The failure of some managers to recognize the variety of plans will caused difficulty in making planning effective. 2. So. The goal must be include long – term and short – term plans to be successful. 24 . what are goals?.Before any managers can plan the activities of the organization.5 GOALS Goal is one type of plan.e.g to develop. E. Setting goals gives people a sense of control that leads the action. 3. The mission of an organization’s is its products or services or markets or customers . 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.5. Goals that are clearly established an properly communicated to employees stand the best chance of being reached. Weather a firm new or old. specific and meaningful.
They provide a direction in which the organization should move. 3. strategies.3. Choosing specific means of implementing strategic plans. personnel. Strategy It is the method of shaping a company’s future and involves determining the long – run direction of the organization. The efforts an activities of the members of an organization can be coordinated with the help of objectives. Increasing the accounts handled from 20 to 25 percent within the next year. plant and equipment.6. 6. 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. 3. Strategic planning. land and other tangible means of production for various uses. overall objectives. which will do and how it is to be done. Objectives determine the role an organization should play in a given environment. Resource allocation It distributes money. policies and resource allocations. Process of making long term choices about an organization’s mission. departmental or individual level.1 The nature of objective: 25 .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 . 7. 4. can be an objective of a salesman. short term decisions of what to do. They serve as standards of performance against which actual performance may be compared and it is an important dimension of the control process. 5. Objectives are established at organizational. Objective It is an estimated end result expected in the future. Developing annuals budgets for projects and departments. A company may have the strategy diversifying into related businesses within the next few years. Tactical planning Making detail.
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.6. 3. 26 . It helps to prevent displacement of objectives wherein means become more important than ends that were original intended.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.units in the organization.optimization. It helps to coordinates decision at all levels It provides a basis for establishing standards facilitating performance measurement at all management levels.units accomplish their objectives at the expense of the other sub.1. that is.level ones. having some sub. It helps to avoid sub.
performance .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 .
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.
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.0 4. 32 .4 4.2 4.1 4.3 4.6 4.5 4.CHAPTER FOUR OVERVIEW ORGANIZING 4.
Pool resources. when. 4. increase efforts which lead efficiency Build continuity and synergy. regulations operation procedures and performance standards.2 Why organizing? 4. To create and maintain relationship between all resources. Minimize costly weaknesses Accomplish better objectives by using coordinated efforts of people. 4.3 1. Important of Organizing Important to management system.5 1.4. Letting employees know what to expect by them establishing rules. 4. organizations charts and lines authority. Clarifying responsibilities through job descriptions.0 4. by specifying which resources to be used. Organizational structure can be divide into four elements : Specialization Standardization Coordination Authority 33 . delegate authority and responsibility to achieve organizational objectives.4 Divide work according to nature and similarity of tasks. 3. To structure / arrange the relationship between people. Organizational Structure : Formal system that separates and integrates tasks : Allocating people and resources to tasks. 4.1 ORGANIZING Definition : The formal way for managers to divide work coordinate task. 2. where and how. 4. the work done and facilities so that goals are achieved. 3. 2.
communicate to lower managers. In less structure. Coordination : Formal and informal procedures that integrates both managerial and employees activities. assigning to individuals/ work who are trained. Decentralized organization – Greater decision making responsibility is given to lower level managers. On the job training programs will promote standardized skills and reinforce values to organization’s success. functional and first line usually supervise such as marketing.top manages make decision. Standardization : Developing the procedures an organization uses to ensure employees perform their tasks in uniform and consistent manner. Various organization distribute authority differently. d) Authority : Right to make decision and take actions.a) - Specialization : Identifying specialized task. 34 . rules and regulations to standardize subordinates jobs success Application forms will standardize the selection of employees. Centralized organization. How? Description. instructions. a willingness to share responsibility and effective interpersonal communication.coordination requires knowledge of company wide problems. Middle managers will be responsible for directing work. b) - - c) - How? In bureaucratic organization rules and regulations. accounting or quality control.
Five major information found in the organization chart are: 1. DIVISION OF WORK : Work is being divided among members and different jobs related to each other . 2. those reporting directly to the same individual are at the same level. interest and positions. 5. Disadvantages: Sense of control felt by managers will be different. Easy to assign tasks to individuals based upon their talents. Type of work Label in each box identifies the subdivision area of responsibility. Subdivision Each box represents a subdivision of the organization that is responsible for a portion of the work.7 4. 4.1 Importance of division of work : Increase productivity Create specialization.7.Simplified tasks that are easily understood and completed quickly. departments and function within the organization. Create dissatisfaction and boredom of routine and specialize tasks. 3.6 ORGANIZATION CHART : The way to describe the four elements including the location of positions. 35 . Levels of managementManagement hierarchy. Lines of authority Lines connecting the boxes show the official lines of authority and communication.This division of work and the grouping together of people is done based on some common characteristics linked between the activities involved. 4. Tasks Indicates the range of tasks within the organization.4.
Advantages : Close supervision and control Rapid communication between subordinates and superior. Subordinates must willing to obey Disadvantages Danger of superior’s loss Superior’s too involved control.8.1 FLAT : few organization levels with flat wide span of authority. levels costly excessive distance between the lowest and the highest level.4. 4.8 Span Of Management: Number of subordinates who report directly to a given manager. Advantages Supervisors are forced to delegate clear policies. Types of organization structure: Flat and steep Flat – Flat wide span of authority SteepShort span of authority with many organizations levels. 36 . Many needed to handle situations. Good managers with subordinates. Disadvantages: Superior too involved with subordinates Many levels costly Excessive distance between the lowest and the highest level. Danger of the superior’s loss control 4. Advantages : Superiors are forced to delegate Clear policies Subordinates must willing to obey Disadvantages : decision not passed down because of managing subordinates.8.2 STEEP : Short span of authority with many organization levels. Close supervision and control. Rapid communication between subordinates and superior.
Superior delegate authority to subordinates in order to facilitate work being accomplished. DELEGATION: the passing of formal authority to another person. Guide lines for effective delegation authority. 4.1 Line authority – A manager is responsible for the work of his unit and its direct contributions to the objectives of the organization.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. Staff authority Each individual or group pays a supporting role and contributes to the objectives of the organization. Authority is delegate from top. Why delegate? Culture of organization Specific situation involved. Responsibility. Relationship behavior personalities and capabilities of the people in that situation. 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.9.4. authority and accountability.2 4.9.10 37 . 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. It is legitimate.
ridicule. rejection and denial of rewards. supervisor 4. It will lead to frustration. Disadvantages : Each section may not have standard procedure. promotion.12 CENTRALIZATION The responsibility and authority concentrated in one place so that major decision are made by central controlling body. physical appearance. money. penalty.Spread of forms and rigid procedures will thus slow down the operations of the organization. Bureaucratic control methods. Common standards for all in organization. 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. 38 . Administration convenient and the focal point for each function.president. Legitimate power Position.4. In some situation all managerial decisions have to be approved by the chief executive before operation. managers members of staff unable to use discretion but according to inflexible rules. status Expert power Influence others through knowledge Referent power Status. Control can be autocratic and inflexible. fame Coercive power Pain.11 POWER: Ability to exert influence. Advantages : It provides absolute control over organization. A process where managers affect other’s behavior. praise. acceptance.
39 . Division managers fairly independent. Four Types : By function By product By territory By customer Advantages Disadvantages Difficult to make decision. By Function Mainly used by smaller firms that offer limited line of products because it makes efficient use of specialize resources. Costly. Promote conflict over product practices. Does not foster development of general managers. Difficult to determine accountability. Improves coordination of functions activities.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. Responsibility for profits at the division level. Places attention and focuses effort on product line. Allows growth and diversity of products and services. Little coordination and interpersonal skills needed. Easier to mobilized special skills. Manager is expert in a narrow range of skill. 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. thus difficult for top management to control. By product Functions and activities based on products manufactured by the company. difficult to understand responsibility for overall tasks.4.
Prentice Hall. 6th and. 2. Gilbert Jr. Emphasizes on local market and problems. Promotes personal development and their service becomes of greater value. Freeman Edwards R. Promote job satisfactions Provides good management experience to managers and supervisors. ACTIVITY : 1. 3.1995. 4. Grouping of activities to Concentrate on reflect the interest of customers needs. Prentice Hall. Fundamental of Management. less control for top management. James A. Daniel R. 2. Advantages: 1. Decenzo. Robbins.. different customers Develops expertise in customer handling More staff required. 5. By Customer Difficult to coordinate operations between competing customer demands. Stoner. Offer better face to face communication. Requires managers and employees expertise in customer’s problem. regional manager are fairly independent. Flexibility to meet changes Rewarding to managers and staff because it enables them to exercise their own judgment and initiative. Responsible for profits at lower level. 2.By territory Organized around the places Offers better services where operations are located at low cost. 3. 40 . Management. 6th ed 2001. Can you identify the four ways to departmentalize? How do authority and power differ? How do centralization and decentralization differ?. David A..F. How does size affect structure? REFERENCES : 1. Stephen P. 4.
5. 4. 4. 3. 5. 2. 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. 3. 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 . 2.CHAPTER FIVE OVERVIEW : CONTROLLING 1.
g R & D gas in the air. Its depend on the situation Determine whether performance matches standards.As organization grow in size and diversity.3 42 . The process of monitoring performance and taking action to ensure desired results. Control is needed to coordinate activities and accomplish integration.g wrong forecasts thus it help tosspot mistake.F stoner). E.g customer waiting time.1 The Important of Controlling : Assist the management process. when and why it is required. 5. Deals with the change. - 5. Take corrective action if the performance does not match the standard then corrective actions may be include Characteristics Of Effective System: 5.5. If the performance match the standard no corrective action is needed.2 The control process. E.0 Definition: The process to assure that actual activities conform to planed activities ( J. Plans and goals set by organization deals with future which is always uncertain and is constantly changing. Enable managers to check on performance. Ensure delegation and decentralization are operate smoothly.g market shift. product demand. they become complex. Deals with complexity.PLOC by determine what is necessary. Measure the performance e.: Establish standards and methods for measuring the performance standard. or uncertainty. Deals with human limitation ( mistake) e.
g bank procedure 2. ACTIVITY : 43 . Pre – action control ( feed forward) Control done at input level of production. 4. take corrective actions before final result are achieve. 6.g finance. TimelyInformation must be collected and evaluated quickly to enable managers to solve problems on time.Control must be exercised at all level of management. 2. Post action control After an action is completed. 3. Accurate informationInaccurate will cause organization to make wrong decision. Attempts to measure result of certain action. 4.4 Types Of Control ( Control Methods) 1. 3. 5. To anticipate potential problems and prevent them from occurring . Steering control To spot problems as they develop or work process. E. 5. actions are done and applied to future activities.g restaurant will ask how you find your meal after you have taken it. Screening control ( yes or no control) Check points before an activity proceeds further approval of large amount of cheque. If there are problem corrective. human resource and material resources.1. E. Objective and comprehensiveStandard set must be understandable and measurable.g zero inflation campaign. Consistent with the organization’s structure(organizational realistic). Focused on strategic control points.e.(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. e.
. Discuss steps use in controlling? REFERENCES : 1. R. Daniel R. Fundamental of Management. 6th ed 2001. Stephen P.1993. Freeman Edwards R. Prentice Hall. Decenzo. Prentice Hall. Allyn and Bacon. Why organization need to focus on controlling? What are the basic relationship between controlling and other management functions?..1. 6th and. Wayne. CHAPTER SIX OVERVIEW 44 . James A. Practices and skills . Mondy. David A. Gilbert Jr. Premeaux. Management. Shane R.1995. 2. 3. 2. management Concepts. Stoner. 2. Robbins. 6th edn.F.
2. 4. QUALITY 45 . 2. Definition of quality The differences between Total quality management (TQM) and traditional management. Understand the difference between TQM and traditional management. Discuss the main ideas of Total quality management. History of TQM A system approach in TQM Learning objectives : After completing this chapter student will be able to: 1. Explain about the history of TQM Familiar with the system approach in TQM. 3. 3.TOTAL QUALITY MANAGEMENT 1. 4.
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.( what is considered as quality today may not good enough to be considered quality tomorrow) 6.(GSA) quality involves meeting or exceeding customer expectations. processes and environments. Contributors : 46 .0 Definition : “ Performance to the standard expected by the customer”( Fred Smith.3 History of TQM Occurred in Japan after World War II. people. service. Goal is customer satisfaction. Number of American went to Japan and helped to built and operate modern manufacturing facilities. Japanese industry was completely destroyed and had to be rebuilt from scratch. Quality applies to product. (Boeing ) An ever changing state. 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. CEO of Federal Express) Meeting the customer’s need the first time and every time.
The measurement of quality is the price of nonconformance. Juran Philip B. costs will decrease and productivity increase. There are five main TQM ideas A system approach : Depends on understanding organizations as systems.1. W. at low cost and suited to the market. safety and field use. workers meet to discuss suggestions for improvements. Contributing to the emergence of quality circle. Quality is defined as conformance to requirements. Focusing on the total quality effort on customers. 47 . 3.4 THE MAIN IDEAS OF TQM: TQM is a process of continuously improving quality over the long run. The performance is zero defect. Fitness for use in terms of design conformance. Output of one department should be given to another department. Cosby Kooru Ishikawa 6. Juran Philip B. not appraisal. ( set of beliefs and resulting behaviors that are shared throughout the organization). W. availability. Edward Deming Joseph M. Systems: A series of functions or activities within an organization that work together for the aim of organization. The system for achieving quality is prevention. a) Culture system: Referred as social system. 4. resulting more jobs. Cosby Kooru Ishikawa Defines quality as predictable degree of uniformity and dependability. 2. not goodness. Quality improves. Parts of the system must work to support each other. Focuses on top down rather than worker pride and satisfaction. Edward Deming Joseph M.
hardware configuration and capital investments. Effort from all levels supervisors to senior executive making TQM success.5 THE The managerial system Managerial diagnosis Managing and checking points Policy deployment The social system Symbol. Know how to pass on authority and responsibility to the people they work and put extra effort to cooperate with other departments. recognition. Internal and external customers define quality and employees produce it.b) Technical system: Factors such as technologies in the physical infrastructure – include ergonomics consideration. rewards. computer software. A focus on customers The role of management 48 . 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. THREE SYSTEM IN ORGANIZATION c) 6. Benchmarking – comparing own products and process against the very best in the world. Management system: Define the effectiveness of those processes by which an organization manages its human and physical assets.
Prentice Hall. Letting employees make decision at all levels of an organization without asking for approval from managers. CHAPTER SEVEN OVERVIEW 49 .H.Employee participation Empowerment. 2. Decenzo. Daniel R. Stephen P.. ACTIVITY : 1.1991. 3. 2. David A. REFERENCES : 1. New York: McGraw – Hill. Management.F. 6th ed 2001. T. What are the main ideas of TQM? Discuss the system approach in quality management?. Gilbert Jr. Stoner. Prentice Hall. 2. James A. 6th and. Robbins. Fundamental of Management. Berry..1995. What differ between traditional management and Total Quality Management?. Freeman Edwards R. Managing the Total Quality Transformation.
2 7. 3. 5.3 7.1 7. 4. 2. 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.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. student will be able to: 1. Know the condition that affect decision making DECISION MAKING 50 .DECISION MAKING 7.0 7.
7. The nature of the problem that occurs is unstructured and something different.0 DEFINITION 7 Process where a course is selected as the way to deal with a specific problem.g in planning. organizing.7.g Nature of problems an decision making in organization 51 . NON. rule or procedure (STONER). controlling. Grievances procedures for employees are an example of programmed decisions. unusual or exceptional problems. Programmed decisions 2. Non. The key to successful decision making depends on the proper formulation of the specific problem at hand.PROGRAMMED DECISION This is a type of decision that deals with a unique. It is usually made in accordance with some established habit.1 THE NATURE OF MANAGERIAL DECISION MAKING Decision making is one of the vital tasks of a manager e. Selection of one alternative from two or more alternative. Eng is the selection and training of personnel.program decision PROGRAMMED DECISIONS It is a repetitive decision that can be handle by a routine approach. 7. e.2 Types of decision making : 1. Decision making is a process which affects all the manager’s operating functions.
g grievances procedures for employees. E. Certainty Risk Uncertainty CERTAINTY: The decision maker knows the out-come of the problems.E. unique. 7. unusual or exceptional problem.programmed nature of problem programmed nature of decision making Programmed decisions A repetitive decision that can be handle by routine approach. Individual are fully informed in terms of : RISK The nature of the problems Possible alternatives Result of alternatives 52 .Highest level Organizational hierarchy structured lowest level organizational levels Un structured Non. Each of those conditions is based on degree to which the future outcome of a decision alternative is predictable. 2. Well structured situations using predetermine decision rules. related rules and policies. These condition are: 1. 3. Virus out break. Non programmed decision Unstructured.g J. E.3 DECISION MAKING CONDITIONS There are three different conditions under which decision are made. requires a higher level management participation.
State Of Nature Types And Decisions 7. Define the problem Diagnose the causes Identify decision objectives Step 2 Generate alternative solutions.1 STEPS IN DECISION MAKING The understanding of the steps will enhance and improve the analytical and decision making process. Consider as many alternatives as possible Step 3 Evaluate and choose among alternative solutions Once the possible solutions are developed. Some information are available but not enough to answer all questions and normally most of the management decisions are made under this condition. the decision maker has to examine the probable desirable and undesirable consequences of each alternative.Future condition are unknown in advanced. Steps 1 Investigate the situation. 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. 7.2 53 . Step 4 Implement and monitor the chosen solution Design the implementation for the chosen situation. Decision makers responsible for reviewing the plan periodically and comparing the actual performance with the planned solutions.
operating procedures and computer programs. Made in the midst of a lot other managerial tasks.3 CONDITION THAT AFFECT DECISION MAKING 54 . Represents an individual decision. Unusual and partially known problems and alternative solutions that are modifications of other known and well define solutions. Do not unfold in a logical. involve many people. low level risk uncertainty and risk. identification and diagnosis of unusual and ambiguous problems with the unique. Made under conditions of Moderate levels certainty. 7. Novel and creative alternative solutions. Solution obtained from standard rules. orderly sequence.Routine Decisions Certainty Adaptive decision Innovative decision Uncertainty Subjective probabilities Objective probabilities RISK CONTINUUM Routine : Choices made in response to relatively well known problems. many and various time. Innovative: Involve combining the discovery. Differences: ROUTINE ADAPTIVE INNOVATIVE of High levels of risks and certainty. Represents a series of mini decisions made over a period of months or several years. Adaptive: Combination of moderately.
but influence their decisions. Problem awareness and diagnosis. entrance of new competitors into market.States of nature: Condition. Set objectives What to be achieve and by what date.rational decision model: Rational Make optimal decision. 55 . possessing and understanding all information relevant to their decisions at the time they are made. 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.g new technologies. probability that certain states of the nature will occur. e. situations and events that managers cannot control. It merges the rationality of the decision maker and the decision into sequence of basic steps: 1. alternative solutions that will lead to desired result. Rational decision and non. It include noticing. based on hard facts and figures. Rational decision : Permits maximum achievement of an objective within limitations of environment in which decisions are made. Non-rational model Information gathering and processing limitations make it difficult for managers to make optimal decisions. Certainty: Managers are fully informed of the problem. new laws and political instability. Objectives probability: The likelihood that the state of nature will occur. Noticing Managers Monitor environmental forces and decide which are problems 2.
Compare and evaluate alternative solutions. Freeman Edwards R. Emphasizes expected results.3. 6th and. Discuss two types of decision making?. 6. Prentice Hall. 2. undertaking. Fundamental of Management. Search for alternative solutions Seeking additional information. REFERENCES : 1. 6th ed 2001. Stephen P.F. consulting experts. Management.. David A. 2. Stoner. Robbins. CHAPTER EIGHT OVERVIEW 56 . What are the condition that affect the decision making?. 3. Final choice Implement the solution selected. ACTIVITY : 1.. Daniel R.1995. Gilbert Jr. Choose among alternative solution. Prentice Hall. 4 5. including relative cost of each alternatives. Explain the step use in decision making?. Decenzo. thinking creative. James A.
3. Define what is leadership Explain the importance of leadership in organization Recognize several theories of leadership .0 7.3 7.4 7. 5.2 7.7 7.5 7.8 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. Familiarize with factors that influence managerial style. 4.LEADERSHIP 7.1 7. PATH GOAL THEORY Learning objectives : After completing this chapter. 2.6 7. Identify several leadership styles practice in organization. student will be able to: 1. LEADERSHIP 57 .
employer and employees. 6th edition) The process of directing human resource efforts toward organizational objectives ( Schermerhorn. New Jersey. bravery. management. 8. charisma. Leaders have certain inborn personality or leaders are born with certain characteristic. strength.0 Definition : Process of directing and influencing the tasks related activities of group members. ( stoner.1 1) 2) 3) 4) Importance to organization Make contribution to organization Enhance and elicit cooperation Encourage teamwork Motivate employee to generate good work.. Involve unequal distribution of power between leaders and group members Involves the ability to use the different forms of power to influence.F. integrity and self confidence. Qualities such as intelligence.2nd edn) Four important facts are: 1) 2) 3) Involves people. Management for productivity. expert power and legitimate power or authority. enthusiasm. R . obligation responsibilities towards employees. John Wiley and Sons. and 8. decisiveness. mental and psychological characteristics.A. Prentice Hall. reward. referent.8. 5) About values – Moral.2 Trait theories of Leadership: The average person’s definition of leadership are : Evaluation and selection of leaders are based on their physical. John. - 58 . J.
4 LEADERSHIP FUNCTION: Considered to be effective when practices these functions: Task related/ problem solving function.g agreeing the work performed by his/ her workers practice empathy or sensitive to her/his subordinate’s feeling.leaders Traits of effective leaders and noneffective leaders. opinion. RESULT Traits of leaders and non.g suggesting solutions.Set of Traits that differentiate leaders: Traits of leaders and non. offering information. 59 . Two aspects of leadership behavior : Leadership function Leadership styles 8. It depends on how well the traits match the requirement of the situation that / she is in. charisma. 8.. mental Intelligence. Group maintenance/ social function. Traits can be gained leaders through learning process Traits of Effective leaders and nonEffective leaders Does not depend upon particular set traits. self assurance and ability. E.leaders Cannot point out the differences between of leader and followers.leaders.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. counseling. An effective leader must performs both functions simultaneously. Help the group to operate smoothly. behavior/attitude. personality managerial supervisory ability. The traits theory failed to isolate prominent traits to distinguish between leaders and non. factors. Physical appearance.
6 MANAGERIAL GRID ( leadership grid) Developed by Robert Blake and Jane Mouton. Trust and respect are developed.5 LEADERSHIP STYLES : Generate into two different leadership styles : 1. - Task oriented function/ production centered. Respect. sensitivity to other’s needs and mutual trust. 60 . Concern on getting the job done to her / his satisfaction rather than develop or employee growth. Employee oriented/ people centered. It concern for both employeeoriented and task oriented styles of leadership to be practiced simultaneously.8. Plan and defines work to be done Assigns task responsibilities Sets clear work standards Urges task completion and monitor results Supervise employee. 2. 8. This show high amount of consideration towards employee’s ideas and feelings. Managers try motivate rather than control the employees. Encourage to participate in decision making. Characteristic of Manager: Warmth and has special rapport with subordinates.
Work accomplishment.5 (1.1) Little concern for either production. Leaders want work schedule to be followed at all costs.1 Impoverished management Country club management Middle of the road Autocratic/ authoritarian/ management (9. management.9) 5. ( Democratic) 61 .The Managerial Grid High ( 1.5 9. Moderate concern for people and production Task High concern for production and low concern for people. Managers concern for feeling and interests of the group members.fair people or Full attention to people’s need but low concern for production.9 5.Laissez.1 1.9 Team/ High concern for people and production participation/democratic/supportive relationships. ( Autocratic) 9.1) Concern for production Managerial grid identifies five leadership behaviors :1.9) Concern For people (9.
62 . Increase goal attainment Clearly defines job requirements. E.1 Path goal model Life. expectation. kind of behavior Behavior will contribute to employees satisfaction. Two leadership models developed: 1) 2) 8. organization culture and policies. provide training. Identify which style is most important at any circumstances.7 CONTINGENCY APPROACH/ SITUATIONAL APPROACH Focuses on situational factors influencing managerial style. employee’s characteristic. according to level of maturity of employees Clarify to employees the and demands of situation. self control and experience.cycle or situational approach. It tries to identify : Find out whether there is any leadership style appropriate in particular situation. supportive. House Leader : - Leader : Make valued or desired Must change style of leadership rewards. position power. . assist employees. Employees attributes ability.8.g leaders give directive. participative and achievement oriented. Source for rewards. open minded.member relationship. Predict leadership style that will be most effective. Leadership behavior depends on situation such as leader.7. task structure. PATH GOAL THEORY Life – Cycle theory or situational approach ( by Paul Hersey and Kenneth Blancard) Path goal Model – By Robert J. experience. Result from theory: No one leadership style appropriate in all situations.
Reducing frustration barriers to reach goals. 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.7. 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 . E.g leader replace new equipment. b) c) d) 8.g Recognition and praises. helping them to reaching 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.g training. E. Increasing rewards to employees who achieve goals.2 LIFE –CYCLE OR SITUATONAL APPROACH Developed by Hersey and Kenneth Blanchard. Making the path to rewards easier through coaching and direction. e.g A leader explaining to employee how they can qualify for overtime pay.
possess a high level of task maturity. E. Phase 1 ( HT/LR). Being motivated to assume more responsibility. A desire for achievement.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.g providing direction. how and where to do task. Explanation : 1. Maturity means : 64 . Amount of task behavior that the leader shows ( horizontal axis) ( e.The diagram shows the relationship between : 1. Employee lack of task relevant maturity. 2. They are skilled and experienced and motivated to assume more responsibility. Phase 3 (HR/LT).g employee relatively new and in experiences. 1. More experience and skilled as well as achievement oriented. 3. Managers provide high level of emotional support and encouragement to develop trust and confidence . 2. Phase 4 (LR/LT) – Delegating Highest level of employee maturity. High task relationship is needed because employee lack of experience and skills. 3. 4. Defines the goals and roles of employees and tell what. controlling and monitoring) The amount of relationship behavior the leader provides ( Vertical axis) ( e. 3. Phase 2 (HT/HR) – Selling Employee are learning to do the job. Managers reduces the need for task relationship and continues to give emotional support and consideration to increase employees level of responsibilities.Participating Employee show maturity in performing tasks. The willingness and ability to accept responsibility The education/ experience and skills relevant to particular tasks. They no longer need high level of supportive or task behavior from their leaders/ managers. 2. guidelines.Telling Leader use one way communication. They are self directed and are able to exercise self control.
2. Allyu and Bacon. Wayne. Practices and Skills. Prentice Hall. what leadership style you may practice? In what way leader can increase productivity?. REFERENCES : 1. The managerial grid III. Robert Blake and Jane S. R. Discuss the relationship between leadership and management? If you a boss in any organization.1985 Houston : Gulf Publishing. 2. Shane R. Stephen P. 6th edn 1993. Robbins. Premeaux. 3. Mouton. Management 6th edn 2001. 65 . 3. Management Concepts.ACTIVITY 1. Mondy.
0 9. Explain the concepts of motivation and its significance in the managerial process. Understand and apply contemporary theories of motivation.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. 66 .CHAPTER NINE OVERVIEW MOTIVATION: 9. you should be able to : 1.2 9. 2.
Management.3. 2. manager. Needs ( unfulfilled) Tension Drive Search behavior Reduction tension Satisfied Needs ( Needs fulfilled) 9. Increase your employee expectation that their efforts will lead to effective performance.0 DEFINITION : The willingness to put forth effort in pursuit of organizational goals. ( R Wayne Mondy. EARLY VIEWS OF MOTIVATION 67 . recognition or achievement. 9.9. This lead to effective and efficient organization.1 Motivation process. 3. 4th edition) tangible – higher pay. Good motivation practices will help leaders and managers: 1. Encourage your subordinates to set performance goals that are specific. Be sensitive to the differences in needs and values. People need organization to achieve goals and organization needs people to achieve its goals. employees. Increase your employees expectations that their efforts lead to effective performance. bonus and benefits Intangible – reputation. respect.Individual. challenging and attainable. Efforts are forces to perform.
Allow 3. The Human Resources Model. 3. 2. self direction and self control than their present job demand. Most people exercise more creativity.Manager must subordinates break down task informed and into simple. distasteful to most people.Manager should closely supervise make each worker and control feel useful subordinates. encourage participation.Manager should 1. which related to Elton Mayo and Hawthorne studies. Management policies 1. is less important organization to be rather than what recognized. The traditional model. 3. The Human Relation Model. They are :1.Create environment where members can contribute. 1. 2) Need to belong 2) What people do to a group.People want to contribute to meaningful goals. Human Resources Model 1. listen to their repetitive. 2. Traditional Model Assumes Human Relation Model 1) Work us 1)People want to inherently feel useful. 2. they learn for doing it. full 68 . Taylor and Scientific Management. easily objectives. 3) Few people want to work to involve in work that requires creativity. self direction or self control. associated with Frederick W.There are three early views of motivation. 2. Must establish subordinates to detailed work exercise self routine and control and self procedures direction on routine matters. learned operations. 3.Should keep 2.Manager make use of under utilized human resources. Associated with Doughlas Mc Gregor’s Theory X and Theory Y.
2. If tasks are simple.4.General expectations 1.People can tolerate work if pay is decent and boss is fair.Expanding subordinates influence self direction and self control will lead to direct improvement. 1.( Theory X and Y. Work satisfaction may improve as a ‘ by product” of subordinates making full use of their resources. ( 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. This means behavior with positive consequences tends to be repeated. A person will be motivated when she or he has not yet attained satisfaction with their life. This is because people are different in nature. Sharing information with subordinate and involving them in routine decisions will satisfy their basic needs to belong and to feel important. 9.1 HIERARCHY OF NEEDS 69 . ( Herzberg two factors theory/ hygiene theory) C) REINFORCEMENT THEORY Describes how people learn patterns of behavior based on environmental reinforcements. 1. people are closely controlled they will produce work that is up to standard. vise versa. 2.4 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. Need vary among individuals.) 9. particularly with regard to work.
g are love. need to love somebody as well as the need for social interaction. These needs are arrange in a hierarchical order . freedom from coercion and a need for clearly defined regulations. recognition. and shelter from environment 2. Examples are job security. Physiological needs These need are our basic needs. They are the lower order needs and the higher order needs. Self esteem needs It is also known as growth need.Introduced by Abraham Maslow. 5. or need for personal “ belongingness”. Safety or security needs Deals with our physical and psychological safety from external threats. Self – Actualization needs 3.g food. E. Social needs or “ Belongingness” Need for companionship. These are for our survival. He states that all people possessed a set of five needs in them. 4. achievement as well as prestige and status.g are respect from others. opportunities for advancement. It is a need for self-esteem and self growth. 70 . E. E. Self.actualization needs higher order Self-esteem needs Social needs Safety needs Physiological needs lower Order needs 1. water.
It comprises needs for the development of one’s full potential or the realization of one’s own potential. Improving them. b) SATISFIER FACTOR Also known as motivating factor. The factors are: a) HYGIENE FACTORS Also known as dissatisfier factor. It associated with job context. Satisfier causes feelings of satisfaction. From the study. 71 . it was concluded that individuals’ work satisfaction and dissatisfaction arise from two different sets of factors. 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. 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 . Satisfier factor is related to the job content of individuals.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.2 TWO FACTOR THEORY Introduced by Frederick Herzberg by studying the job attitudes of 200 engineers and accountants . Often called as job content. The absence of one does not affect the other. such as changing the rule. Hygiene factor only affects job dissatisfaction. 9.4. It associated with the work setting of an individual.
Having to be pushed by managers to work. 6. Managers of theory X view the employees in terms of the following characteristics: 1. However they will not prevent job dissatisfaction. work is as natural as play or rest. 9. ingenuity and creativity in accomplishing tasks. have to apply the autocratic style of leadership where the employee have to be constantly directed and controlled. 4. managers need to turn their attention away from hygiene factors and focus on improving satisfier factors. To motivate. This theory describes the views or perception of managers with regard to their 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. Theory Y managers. Willing to work. 72 . Therefore. 2. Improvements made in the satisfier factors can increase job satisfaction. 8. 2. they will not improve job satisfaction. 5. since work brings satisfaction. 3. These managers in order to make sure that their employees do their work. 5. 7. 4. Willing to accept responsibility. However. view their employees in terms of the following characteristics: 1. the managerial implications associated with the two factor theory are: 1.3 THEORY X AND THEORY Y This theory was developed by Douglas Mc Gregor.The factors that will contribute to employee’s satisfaction will be the satisfaction factor. Improvements made in the hygiene factors can prevent or eliminate job dissatisfaction.4. Capable of directing themselves ( self direction) Capable of self –control Frequently using imagination. Coercive power will be used. 3. 2. Here managers have a traditional or a pessimistic view of motivation with regard to employees.
Research and Application 3rd edn. 2. Management for Productivity. Discuss how Herzberg two factors theory help in motivating employees? If you a manager. ACTIVITY 1. 3rd edn. 1995. 4. Theory Y manager will delegate the authority and allow employees to participate in decision making.. Holt. managers need only to apply the participative style of leadership. To ensure high performance. 2nd edn. Prentice Hall.. John Wiley and Sons.. 2.Management. Schermerhorn. where employees are allowed more participation. H.A. 73 . REFERENCES : 1.F. Theory. freedom and responsibility in their work. Management. 3. What can you do to motivate your staf?.1993. John R. 6th edn. Edward R. Principles and Practices.C. and Gilbert.. Motivation. Stoner. Greater job autonomy and task-variety is offered to employees. Daniel Jr. Petri.Theory T is optimistic view.A: Wadsworth Publishing. David H.. Prentice Hall. J. (1990). Freeman. Belmont.L. New Jersey.
student will be able to : 1.CHAPTER TEN OVERVIEW COMMUNICATION 1. 4. 2. 2. Overcoming barriers to effective communication. Define what is communication Understand the importance of effective communication. 74 . 5. 5. 4. 6. Explain the communication process Explain different channels of 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. 3. 3.
writing or sign. by speech. 4.PLOC requires effective communication. Management function. OR The process by which people seek to share meaning via the transmission of symbolic messages. allocating and correcting mistakes. The science of transmitting information.1 IMPORTANCE OF EFFECTIVE COMMUNICATION Convey information Giving instruction/ commanding action Persuading or influencing change 1. 5. In organization – Disseminating of information through memos. Assist managers coordinating and integrating the work groups. reports and newsletters. knowledge etc. Employees need information to conduct tasks. Process of sending and receiving messages among individuals and groups called interpersonal communication. Discuss face to face meeting. Everyone in the organization need to be informed of the objectives and goals of the organization. 75 . In leading and motivating managers need to inform employees of doing the right tasks. letters. Organizational communication. OR Oxford English dictionary – Imparting. 2. conveying or exchange of ideas.COMMUNICATION 10. 10.. 3.0 DEFINITIONS : Webster’s dictionary “ the arts of expressing ideas”. bringing in with exchange.
The receiver’s thought process on getting The message.in what way -----to whom----with what effect.g incomplete information.g I’m looking for a place on PR course. Any kind of interference which results in distortion. So that the receiver gets a different message from the one that was sent e.g that course is full. E. 10. From in which the message is.g spoken English . E. The telephone The information itself as encoded by the sender.g switch board Operator. Interpretation. 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.Managers is considered effective in his instruction when employees acts according to instructions. E. The element of the receiver’s response which the receiver communicates to the sender. 76 .2 COMMUNICATION PROCESS Classic model of communication developed by Shannon based on fine questionwho—says what---. Person who receive the information. E.
3 FORMAL COMMUNICATION Information flows around organization whether or not they try to control it. INFORMAL COMMUNICATION Grapevines between individuals and groups can be job related or personal. b) Lateral communication Horizontal communication at the same level.g policies. Information can be accurate/ inaccurate Four types of chains show how individuals convey information. rules.In the form of instruction and information e. a) Vertical communication: Downward.10. procedures. Convey info to their superior. work schedules. Upward – through suggestion schemes or some other form of feedback to management. 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 .
Mass Communication Deals with public communication . usually in decision making setting. internet etc) 4.10. Intrapersonal communication Between you and god Interpersonal communication Deals with communication between people usually face to face. 1. 6. Organizational communication Occurs in large cooperative networks and include virtually all aspects of both interpersonal and group communication.4 LEVEL OF COMMUNICATION 1. 3. 5. 3. 4. Received by or used by large number of people ( postal service. Effective employee performance Manageability Sharp. 2. 5.5 ORGANIZATION INVEST IN COMMUNICATION FOR SOUND BUSINESS REASON. 2. Group communication Relates to the interaction of people in a small groups. 10. 8.end feedback Motivation Team spirit Crisis preparation Participative staff Good relation with its public 78 . 7.
6 Improving The Comunication Process VERBAL COMMUNICATION Spoken words. writing letters. newsletter. 5. confuse or disturb the messages from reaching the receiver. Info well kept. NON-VERBAL COMMUNICATION Means of gestures and to express feelings and emotions. use facial. letters. 79 . defensive. body placement. anger. posture. voice tone.7 Barriers to effective listening 1. hand and body gesture to supplement speech.10. learn to relax when communicate. use role playing. speed up exchanging ideas and get direct feedback. avoid using the same non verbal. jealousy. memo. fax. easy to retrieved. Credibility of the sender Associated with person’s feeling of love. Noise Factor interferes. It is in form record and evidence. clothing. Verbal face to face. hand gesture. 10. 2. positive and acceptable to the receiver. 4. dress and appearance Obtain feedback. 3. mail. Face expression and movement. use mirroring to establish rapport. bulletin boards. Filtering Alteration of information to make it interesting. hate. embarrassment and enthusiasm. Poor listening Semantic Certain words may be interpreted differently by different people. fear.
10. 5.Be specific c. Send message in an effective way a. 2. 80 . postures and gestures. 6.Use bias free language d. Create openness. 3. 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. Obtain feedback Ask question. 7. repeat message.verbal communication Facial expression.8 OVERCOMING COMMUNICATION BARRIERS 1. 8.Modify language and use words appropriate. visit site. 4. rational and trust Instill an atmosphere of openness.Plan and clarify ideas before communicating b. Understand verbal and non. clothes.
1995. New Jersey. J. Effective communication importance to organization.. and Gilbert. Discuss how REFERENCES : 1. organization overcome ineffective communication process. Principles and Practices. Schermerhorn. David H. John Wiley and Sons. 3.. Management.. For what reason organization invest in communication?. Holt.ACTIVITY : 1. Daniel Jr. 2. Stoner. Management for Productivity. 6th edn. 81 . 3. 2.. Edward R. Prentice Hall. 3rd edn. 2nd edn.A. Management. John R. Freeman. Explain the important of the two communication channels in organization?.1993.F. Prentice Hall..
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