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.





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.


MANAGER By their level in the organization -first line manager . c) Top managers A comparative small group of executives. Typical titles of top managers are “ chief executives officer”. Actual titles vary from one organization to another. “ president”’ and “ senior vice. It establishes operating policies and guide the organization’s interactions with its environment.middle 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.4 MANAGEMENT SKILLS 5 . Middle managers direct the activities of lower – level managers and sometimes also those of operating employees. the top management is responsible for the overall management of the organization.Top manager By the range of organizational activities they are responsible -functional manager .b) Middle managers Middle managers can include more than one level in an organization.president”.General manager 1.

Is the ability to use the procedures. Surgeons. musicians and accountants.Katz. human and conceptual Technical skill.The ability to work with. understand and motivate other people as individuals or in groups. Human skill .5 MANAGERIAL ROLES 6 . techniques and knowledge of a specialized field. FIRST-LINE MANAGEMENT Conceptual Human MIDDLE MANAGEMENT TOP MANAGEMENT Conceptual Human Technical Conceptual Human Technical Technical 1. Three basic kind of skills : technical.A manager’s job is diverse and complex. engineer. Robert L. every manager needs all three but the amounts differ by their level in organization. and requires a range skills. Conceptual skill – ability to coordinate and integrate all of an organization’s Interests and activities.

3. Informational roles 3. Disturbance handler . the informational roles are to assist the manager in receiving and communicating information to make the right decision.managers is responsible for corrective actions when the organization faces important. B 1. 2. Leader Liaison . Interpersonal Roles 1. 3. . According to Henry Mintzberg “ The nature of managerial work”’ managers perform ten inter.Manager continuously seeks information that can be use to advantage Disseminator .Manager is responsible in allocating the resources of the Managerial Activities 4.A person who is responsible for hiring.related roles in the organization. 2. Ten roles classified under three main roles : They are : 1.6 Resources allocate . C. Informational Roles Monitor . . organization 3. The interpersonal roles are to help the manager in managing organization smoothly. entrepreneur Manager tries to improved the unit and initiate the changes. Negotiator Manager is responsible for representing the organization at 7 major negotiations . unexpected disturbances.A person who perform and interacts with other people outside the organization.Information will be transmitted to people outside the organization or unit Thus. training and motivating subordinates in the organization.Information received internally or externally will be transmitted to the subordinates . signing legal documents etc.A department head performing ceremonial duties like greeting visitors. Decisional roles 1. Figurehead . 1. Decisional roles A. Spoke person . Interpersonal roles 2.The specific classifications of managerial behavior. 2.

4. The production manager and supervisor have created a certain environment where workers will want to produce more so as to meet the target. who reports to whom and where decisions are to be made. selecting the most effective communication channels. Production workers were assigned to different supervisor assembly lines / unit many productions activities were rearrange so as to achieve the goals Specified. subordinates. who is to do them.Managers are the people who controlling. 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. Planning . directing.7 THE CHALLENGE OF MANAGEMENT 8 . organizing. how the tasks are to be grouped.monitoring activities to proton Ensure that they are being Accomplished as planned and Correcting any significant Deviations. 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. Leading Includes motivating.Include defining goals establishing strategy and developing plans to coordinates uses activities deal with planning. and resolving conflicts. 1. 1. 3.

efficient organization. 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. 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. they are likely to find their organization survival at a brink. Re. Success goes to the managers who can recognize and seize the opportunities. c) d) e) f) 9 . Concept where organization is slimming down or downsizing operations in order to focus on resources and boost profits or decrease expenses. This challenges can and do influence the work of managers and affect the performance of the organization as a whole. An approach that involves granting employees the freedom and responsibility to do their job as they think best. 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. This trend will shape the managers’ environment through the movement towards more streamlined. Current and poses another new challenge to management and organizational today.In an environment which is rapidly and constantly A radical rethinking and re-designing organization’s processes to achieve drastic improvements in performance ( Micheal Hammer) Empowerment. If the managers do not closely monitor this challenges or changes in the organization environment or fail to respond quickly to this changes. Organizational restructuring and consolidation. without constantly having to appeal to higher authorities for permission.

What is management and what is organization ? List and define four (4) management functions. CHAPTER 2 OVERVIEW 10 . 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. 2. James A. 6th ed 2001. David A.F. Give examples of how they would be used by the following person(s). REFERENCES : 1. Daniel R. Prentice Hall. Prentice Hall. Gilbert Jr.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. Fundamental of Management. Stoner. Stephen P.1995.. Freeman Edwards R. 2. Management. 6th and. Robbins.. Decenzo.

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. Understand the beginning of management practice Explain several management theories . 6. 2. 3. 3. Apply several techniques of management practice. 2. 4.EVOLUTION OF MANAGEMENT THEORIES 1. 5.0 EVOLUTION OF MANAGEMENT THEORIES 11 .

C during King Hummurabi.1 THE FORMATION OF MANAGEMENT PRACTICES Management thought started with industrial revolution around 1800. Tried to upgrading streets.1. 100.000 workers involve.Begin from ancient civilization. The factories became widespread and large number of employees need to be coordinated. Therefore the challenge had motivated a number of individuals to think of ways and means to run the factories more effectively. Egyptian use mathematical to organize labor. supervise to built within specified design and time. 2. planning and leadership use by military strategy. 2. touching on strategy. 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. educational system. houses. China – Sun Tzu War. sanitation. 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. Great Pyramid in Egypt.1 Pre classical view point. Organized management practice in 2000 B. People think ways to improve efficiency and effectiveness. This point saw the invention and use of machinery setting up factories and creation of entrepreneurial capital that finance the industries.

c) Known as father of modern computing English mathematician. pioneered in computing and management. Ideas used in scanlon plan. 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. Generate rules handed down were inefficient. president of Yale and Towne Manufacturing company. Observed good engineering skills and good business skills were rarely combined but both were equally important to run organization. 13 . The idea of work specialization – work is divided into various jobs. Outlines the importance of management as a science Called for the development of management principles. Increasing their productivity would cause them or others to lose jobs. 2.1.2 CLASSICAL VIWEPOINT A perspective on management that emphasizes finding ways to manage work efficiently. Three different approaches : a) b) c) Scientific management Bureaucratic management Administrative management 1. Henry R. Faulty wage system encourages workers to operate at slow pace. Towne ( 1844-1942) A Mechanical engineer. Observed ‘ soldering ‘ by employees. Three different approach are: a) Frederick Winslow Taylor ) 1856-1915) The father of scientific management.working at less than full capacity meaning feared that. SCIENTIFIC MANAGEMENT Approach that emphasizes findings ways to manage work efficiently.

Thus. He redesigned the work. 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. BUREAURATIC MANAGEMENT a) Max Weber (1864-1920) German sociologist An approach that emphasizes the need for organizations to operate in a rational manner. developed science management : 1) 2) 3) 4) Scientifically study each tasks and develop the best method for performing the tasks. Management tool that helps managers to schedule their work. improve production by his principle. Management will plan work method using scientific principles and employees are responsible for executing the work accordingly. Divide work and responsibility. Cooperate fully with employees to ensure them using proper method. He divide work into different task. (Ideal organization where activities and division of labor were clear. people promoted on merit) DESCRIPTION CHARACTERISTICS 14 . b) 2. Frederick made use of time and motion study to substantiate his theories and increase productivity. should develop a science for each tasks to be performed. scheduling and control. Henry L Gantt (1861-1919) Gantt chart – graphic aid to planning. train them by using scientifically developed method.which will help people to reach their maximum potential by developing their skill and abilities. Lilian define scientific studies management must focus both analysis and synthesis. formal rules. Carefully select employees.

become more competent. so that members know what is expected from them thus. to ensure uniformity and facilitate coordination Rules. policies and sanctions are applied uniformly without prejudiced. carefully reporting relationships among levels. provide supervision of lower offices by higher offices based on Selection and promotion based on the qualifications merit and performance of members. Multiple level of positions. ADMINISTRATIVE MANAGEMENT An approach focuses on principles that can be used by managers to coordinate the internal activities of organizations. The right to give orders and power to exact obedient. With authority comes responsibilities. 1. Necessary to run the organization. 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. Formal rules and procedures Impersonality Well defined hierarchy Career advancement 3 . it b) Authority c) Disciplines 15 .

High turn over is not rate will effect the functioning tenure of organization. Select right employee for the right place and right time. Chester Barnard (1886-1961) 16 .Horizontal comm. Activities aimed at the same objective. Compensation should be fair to both the employee and employer. Materials in the right place.depends on the worthiness of its leaders. The amount depends on situation. 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.. Employees treated with kindness and justice. The interest of one group of employees should not interest to general interest prevail the interest of the organization. easy to retrieve and facilitate activities. one plan and one person in charge. d) e) f) Unity of command Unity of direction Subordination of individual Employees should received orders from one superior only. A scalar chain of authority extends from the top to bottom of an organization and defines the communication path . managers encourage and develop subordinates initiative to the fullest. Objectives is to optimum use of the capabilities of personnel. is also encourage as long as managers are informed.

Mary Parker Follet Focus in group dynamic.- - Acceptance theory of authority. 2. Managers real powers come from the degree of acceptance of his workers. 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. 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. = Hawthorne effect – improve performance. may be due the added attention they receive from researchers.1. 1920s. 2) Human Relation Movement Two theorist : b) d) 17 . Found that the women still increased their productivity period.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.employees work together. feel that the actions indicated are inline with their need and other employees and view themselves as mentally and physically able to comply. Employees willing to accept orders if they understand the communication. see the communication consistent with the objectives of organization.3 BEHAVIORAL VIEWPOINT Emphasizes the importance of attempting to understand the various factors hat affect human behavior in organizations.

Management science/ operation research 2. focused on security needs. Employees do better with attainable goals than without goals. managers can be used as guides in assessing various situations and deciding appropriate actions. Theory X and Y – managers view their workers in one of the categories. Management science/ operation research 18 .1. anthropology and economics. Conclusion – managers who assume best of their employees are rewarded with committed and satisfied workers. have capacity to be creative. Theory X – assume employees are lazy. statistics and information aids to support managerial decision making and organizational effectiveness 1. c. Operation management 3. Physiological need ( lowest) Safety Belongingness Esteem Self Actualization Douglas Mcgregor (1906-1954) i) ii) iii) iv) v) b. This Dictated people’s motivation to perform task. Once has satisfy basic need before other can be taken care. It include management.Employees are capable of self control.4 QUANTITATIVE MANAGEMENT VIEWPOINT Emerged as a major force in world war 2 Focuses on the use of mathematics. Management information systems 1. psychology.can be use to establish practical guidelines for managers. Theory Y. 2.a) Abraham Maslow (1908-1970) Contribute to the theory of motivation “ hierarchy of needs”. higher level need are often unmet on job. Behavioral Science Approach Emphasizes scientific research as the basic for developing theories about human behavior in organizations. sociology. little ambition.

Transformations Managerial and Technological Process Abilities: Planning. System theory An approach based on the assumption that organizations can be visualized as a systems. equipment and informational resources required to produce goods and services.5 CONTEMPORARY VIEWPOINTS Major innovations in ways of thinking about management: System theory Contingency theories 1.use by the organization. Operation Management The function/ field of expertise for managing the product and delivery of an organization’s products and services. System – A set of interrelated parts that operate as a whole towards a common goal. 2. E. Feedback Information about result and organizational status relative to the environment Advantages of Systems approach : can be analyze at different levels. e. Components of system Human material.Aimed at increase decision effectiveness through the use of sophisticated mathematical models and statistical methods. Providers a framework for assessing how well the various parts of an organization interact to achieve common goal.1.g work scheduling. Controlling and technology –to converts inputs into outputs. 3. production planning. inventory analysis. Management Information System The field of management that focuses on designing and implementing computer based information systems for use by managements . Open System A system that operates in continual Inputs 19 . Organizing.g system that run raw data to information. financial. Emphasize that a change in one part can affect others It considers how an organization interacts with its environment.better to operate in open system. 2.

3.. 4. Freeman Edwards R. 2.. 6th and. 6th ed 2001. receives little feedback. REFERENCES : 1. Stoner.F. Does little or no interaction with environment. Prentice Hall. Decenzo. Robbins. - Contingency Theories Appropriate managerial action depends on particular parameters of situations. What were the Hawthorne studies? Why was the human relations movement important to management history?. Prentice Hall. Identifies contingency principles to take action on the situation. CHAPTER 3 OVERVIEW 20 . 2. Gilbert Jr.Closed system interaction with its environment. ACTIVITY : 1. Daniel R. How did Industrial Revolution Influence Management Practice? Why did scientific management receive so much attention?.appropriate actions by managers depend on situation. James A. Stephen P.1995. 2. Successful companies operated differently depending on their technology category. Management. Fundamental of Management. What is contingency approach to the study of Management?. David A.

4 3. Familiarize with types and nature of decision making.PLANNING 3. 5. Outline the steps in decision making process.0 3. 7. Explain the importance of planning Explain what is “ goals” and “Objectives” Apply various types of plans in planning Define what is “ decision making”.3 3.1 DEFINITION OF PLANNING AND PLANS 21 . student should be able to : 1.6 3.1 3. 6.5 3. 4. 2.7 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. Explain the differences between planning and plans. 3. 3.

whether he is top manager or lower level manager. Through planning. ( MONDY) . What activities are required to accomplish the objectives? 2.1. politic and social. there are several questions that need to be asked to realize the organization’s goals. 3.1 PLANNING Important to all organization. (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”. When should the action be completed?. managers can inform their subordinates about the expectations of the management and the objective of the organization can be realized. defined strategies. Planning allows us to be more certain and to plan for the future. he has to plan. 1. A process that begins with objectives. economic. logical and realistic Planning is a pervasive and continuous executive functions involving complexes processes. When should these activities be carried out? 3. plans are statement of how objectives are to be accomplished. Based upon the definition stated above. factual. Planning establishes an organization to implement decisions and includes a review of performance and feedback to introduce a new planning cycle. policies and detailed plans to achieve them. Who is responsible for doing what? 4. As a manager.3. A manager must plan ahead to get things done through his subordinates 3. Formally prepared Observable.3 THE IMPORTANCE OF PLANNING IN ORGANIZATIONS 22 . Whatever activities are planned by the managers.2 PLANS According to Mondy. you can infer that plans should be: 1. Where should the activities be carried out? 5. It is important because organization are effected by change. Planning is an important managerial functions. 2.

8. thus resulting in saving. It provides for effective utilization of available facilities of an enterprise. resources are efficiently and effectively utilized. In other words.4 TYPES OF PLANS 23 . 5. It can reveal opportunities for new services. 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. 2. 6. Planning enables us to identify the course of action by setting objectives and choosing alternatives that will be most profitable. rather than allowing them to dilute and negate his efforts. By means of planning. 9. Not to plan is to manage as a results of events rather than by use of foresight influence an action. 3. a manager successfully copes with his affairs and problems. Through plans. Planning can point out the need for future changes. It assists a manager in attaining confident and aggressive leadership. 4. What is really happening become more meaningful when we know what is really expected. 3. 7. Planning helps to determine what opportunities there are to exploit. It help to achieve goals and reduces random activities and needless overlapping. the profitable alternatives that exist are identified through a planning process. Without proper plans much will be left to chance an therefore to risk.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.

Before any managers can plan the activities of the organization. managers do need to know the various types of plan. Greater risk taking and more action. Well defined goals provide a solid basis for managers to organized. Weather a firm new or old. Purpose It is define as an intention to produce a specific good or service. 2. large or small it must set goals. 3. 2.5 GOALS Goal is one type of plan. what are goals?. 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. The failure of some managers to recognize the variety of plans will caused difficulty in making planning effective. So. Goals are the ends toward which activities is aimed. Accomplishing goals leads to self. specific and meaningful. Characteristics of setting goals are: 1. Mission It is the purpose or reason for the existence of an organization. The goal must be include long – term and short – term plans to be successful. 24 .e. E. 3. lead and control their departments or company successfully. The mission of an organization’s is its products or services or markets or customers .confident.g to develop. The goal must be clear and coordinated 3. Setting goals gives people a sense of control that leads the action.1 TYPES OF GOAL : 1. Goals is organizations provide the ends towards which people direct their efforts. manufacture and market pharmaceutical products that assure strong growth and profitability. Goals that are clearly established an properly communicated to employees stand the best chance of being reached. The goal must precise.g.5. marketing pharmaceuticals products can be the mission of a drugs manufacturing company.

plant and equipment. 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. Objectives are established at organizational. Tactical planning Making detail. Increasing the accounts handled from 20 to 25 percent within the next year. Strategic planning. A company may have the strategy diversifying into related businesses within the next few years. 3. policies and resource allocations.3. Choosing specific means of implementing strategic plans. They provide a direction in which the organization should move. Objectives determine the role an organization should play in a given environment. Developing annuals budgets for projects and departments. short term decisions of what to do. The efforts an activities of the members of an organization can be coordinated with the help of objectives. strategies. 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 . land and other tangible means of production for various uses. Process of making long term choices about an organization’s mission. They serve as standards of performance against which actual performance may be compared and it is an important dimension of the control process. overall objectives. 4. departmental or individual level. which will do and how it is to be done.1 The nature of objective: 25 . 6. 5. Strategy It is the method of shaping a company’s future and involves determining the long – run direction of the organization. Objective It is an estimated end result expected in the future. can be an objective of a salesman.6. Resource allocation It distributes money. 7. personnel.

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. It helps to avoid sub. It helps to coordinates decision at all levels It provides a basis for establishing standards facilitating performance measurement at all management levels. It helps to prevent displacement of objectives wherein means become more important than ends that were original intended.units in the organization. 3. that is. 26 . having some sub.level ones.6.optimization.1.units accomplish their objectives at the expense of the other sub.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.

Personal development objectives Organizational hierarchy Lower level managers Middle level managers Top level managers 27 .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 .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.


3 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.6 4.2 4. 32 .4 4.0 4.CHAPTER FOUR OVERVIEW ORGANIZING 4.5 4.1 4.

5 1. Minimize costly weaknesses Accomplish better objectives by using coordinated efforts of people. 4. Organizational structure can be divide into four elements : Specialization Standardization Coordination Authority 33 . 3. 4. 4. 4.4. delegate authority and responsibility to achieve organizational objectives. Clarifying responsibilities through job descriptions. 4. organizations charts and lines authority. 2. the work done and facilities so that goals are achieved. 3.3 1. Important of Organizing Important to management system. increase efforts which lead efficiency Build continuity and synergy. by specifying which resources to be used.1 ORGANIZING Definition : The formal way for managers to divide work coordinate task. To structure / arrange the relationship between people. where and how. To create and maintain relationship between all resources.0 4. 2. regulations operation procedures and performance standards.4 Divide work according to nature and similarity of tasks. Organizational Structure : Formal system that separates and integrates tasks : Allocating people and resources to tasks. Letting employees know what to expect by them establishing rules.2 Why organizing? 4. when. Pool resources.

Coordination : Formal and informal procedures that integrates both managerial and employees activities. communicate to lower managers. assigning to individuals/ work who are trained.a) - Specialization : Identifying specialized manages make decision. Decentralized organization – Greater decision making responsibility is given to lower level managers. d) Authority : Right to make decision and take actions. How? Description. instructions. In less structure. On the job training programs will promote standardized skills and reinforce values to organization’s success.coordination requires knowledge of company wide problems. Standardization : Developing the procedures an organization uses to ensure employees perform their tasks in uniform and consistent manner. b) - - c) - How? In bureaucratic organization rules and regulations. Middle managers will be responsible for directing work. 34 . accounting or quality control. rules and regulations to standardize subordinates jobs success Application forms will standardize the selection of employees. functional and first line usually supervise such as marketing. Centralized organization. a willingness to share responsibility and effective interpersonal communication. Various organization distribute authority differently.

interest and positions. 2. departments and function within the organization.This division of work and the grouping together of people is done based on some common characteristics linked between the activities involved. Create dissatisfaction and boredom of routine and specialize tasks. 5. Tasks Indicates the range of tasks within the organization.7 4. 4.Simplified tasks that are easily understood and completed quickly. Levels of managementManagement hierarchy.6 ORGANIZATION CHART : The way to describe the four elements including the location of positions. 35 . Easy to assign tasks to individuals based upon their talents. those reporting directly to the same individual are at the same level. Lines of authority Lines connecting the boxes show the official lines of authority and communication. Type of work Label in each box identifies the subdivision area of responsibility. Disadvantages: Sense of control felt by managers will be different.7.4. Five major information found in the organization chart are: 1.1 Importance of division of work : Increase productivity Create specialization. Subdivision Each box represents a subdivision of the organization that is responsible for a portion of the work. 4. DIVISION OF WORK : Work is being divided among members and different jobs related to each other . 3.

4. Close supervision and control.8 Span Of Management: Number of subordinates who report directly to a given manager. Advantages : Close supervision and control Rapid communication between subordinates and superior. Many needed to handle situations.2 STEEP : Short span of authority with many organization levels. Subordinates must willing to obey Disadvantages Danger of superior’s loss Superior’s too involved control. Types of organization structure: Flat and steep Flat – Flat wide span of authority SteepShort span of authority with many organizations levels.1 FLAT : few organization levels with flat wide span of authority. 36 .8. levels costly excessive distance between the lowest and the highest level. Danger of the superior’s loss control 4.8. Advantages Supervisors are forced to delegate clear policies. Disadvantages: Superior too involved with subordinates Many levels costly Excessive distance between the lowest and the highest level.4. Good managers with subordinates. Rapid communication between subordinates and superior. Advantages : Superiors are forced to delegate Clear policies Subordinates must willing to obey Disadvantages : decision not passed down because of managing subordinates.

9. 4. It is legitimate. Superior delegate authority to subordinates in order to facilitate work being accomplished.2 4.1 Line authority – A manager is responsible for the work of his unit and its direct contributions to the objectives of the organization. 4. Staff authority Each individual or group pays a supporting role and contributes to the objectives of the organization. Responsibility. Relationship behavior personalities and capabilities of the people in that situation.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. authority and accountability. authority and accountability. Includes responsibility.10 37 . DELEGATION: the passing of formal authority to another person. Why delegate? Culture of organization Specific situation involved. 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. Authority is delegate from top.4. Scalar principle: To whom Who can delegate To whom they are accountable Unity of command Each employee report to only one superior. Guide lines for effective delegation authority.9.

Bureaucratic control methods. Common standards for all in organization. 38 . Control can be autocratic and inflexible. In some situation all managerial decisions have to be approved by the chief executive before operation. Legitimate power Position. physical appearance. It will lead to frustration. promotion. Disadvantages : Each section may not have standard procedure. money. supervisor 4. 5 types of power: a) b) c) d) f) Reward power: Money. fame Coercive power Pain. Advantages : It provides absolute control over organization. praise. Administration convenient and the focal point for each function. A process where managers affect other’s behavior. acceptance.president.12 CENTRALIZATION The responsibility and authority concentrated in one place so that major decision are made by central controlling body. More reporting and inspection may be needed than if the control were centralized. managers members of staff unable to use discretion but according to inflexible rules.11 POWER: Ability to exert influence. status Expert power Influence others through knowledge Referent power Status. ridicule. penalty.4. rejection and denial of rewards.Spread of forms and rigid procedures will thus slow down the operations of the organization.

difficult to understand responsibility for overall tasks. Little coordination and interpersonal skills needed. Allows growth and diversity of products and services.4. Easier to mobilized special skills. Manager is expert in a narrow range of skill. Costly. By product Functions and activities based on products manufactured by the company. 39 . thus difficult for top management to control. Promote conflict over product practices. Difficult to determine accountability. 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. Division managers fairly independent. Places attention and focuses effort on product line. Does not foster development of general managers. Improves coordination of functions activities. Four Types : By function By product By territory By customer Advantages Disadvantages Difficult to make decision. Responsibility for profits at the division level.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. By Function Mainly used by smaller firms that offer limited line of products because it makes efficient use of specialize resources.

Offer better face to face communication. Daniel R. Grouping of activities to Concentrate on reflect the interest of customers needs. James A. Management. 4. different customers Develops expertise in customer handling More staff required. 4. Prentice Hall. Requires managers and employees expertise in customer’s problem.. Promotes personal development and their service becomes of greater value. How does size affect structure? REFERENCES : 1. Promote job satisfactions Provides good management experience to managers and supervisors.1995. Responsible for profits at lower level. Stoner. Emphasizes on local market and problems. Robbins. By Customer Difficult to coordinate operations between competing customer demands.F. Advantages: 1. Fundamental of Management. Stephen P. 5. 3. 40 . Can you identify the four ways to departmentalize? How do authority and power differ? How do centralization and decentralization differ?. Flexibility to meet changes Rewarding to managers and staff because it enables them to exercise their own judgment and initiative. 6th and. 2. regional manager are fairly independent. Decenzo. 2.. Freeman Edwards R. 6th ed 2001. Prentice Hall. David A. 3. 2.By territory Organized around the places Offers better services where operations are located at low cost. Gilbert Jr. less control for top management. ACTIVITY : 1.

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. 4. 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. 2. 5. 2. 3. 3. 5.CHAPTER FIVE OVERVIEW : CONTROLLING 1.

E.0 Definition: The process to assure that actual activities conform to planed activities ( J. when and why it is required. Plans and goals set by organization deals with future which is always uncertain and is constantly changing.1 The Important of Controlling : Assist the management process. 5. product demand.g market shift. or uncertainty.3 42 .: Establish standards and methods for measuring the performance standard.As organization grow in size and diversity.g wrong forecasts thus it help tosspot mistake.g customer waiting time.g R & D gas in the air. they become complex. Measure the performance e. Take corrective action if the performance does not match the standard then corrective actions may be include Characteristics Of Effective System: 5.2 The control process. Its depend on the situation Determine whether performance matches standards. The process of monitoring performance and taking action to ensure desired results. Deals with the change. Deals with human limitation ( mistake) e. Deals with complexity. If the performance match the standard no corrective action is needed. - 5.F stoner).5. Control is needed to coordinate activities and accomplish integration. Ensure delegation and decentralization are operate smoothly. Enable managers to check on performance. E.PLOC by determine what is necessary.

g finance. Steering control To spot problems as they develop or work process.4 Types Of Control ( Control Methods) 1. 5. Attempts to measure result of certain action. Objective and comprehensiveStandard set must be understandable and measurable. If there are problem corrective. 3. 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. 2. 5. human resource and material resources.e.g zero inflation campaign. 6. actions are done and applied to future activities. e. Pre – action control ( feed forward) Control done at input level of production. Screening control ( yes or no control) Check points before an activity proceeds further approval of large amount of cheque.Control must be exercised at all level of management. E. Accurate informationInaccurate will cause organization to make wrong decision. Post action control After an action is completed. ACTIVITY : 43 .1.g restaurant will ask how you find your meal after you have taken it. Consistent with the organization’s structure(organizational realistic). TimelyInformation must be collected and evaluated quickly to enable managers to solve problems on time. To anticipate potential problems and prevent them from occurring . 4. 4. take corrective actions before final result are achieve.g bank procedure 2. Focused on strategic control points. 3.

David A. Management. 2.. 2. Decenzo. Shane R. Allyn and Bacon.1993. Fundamental of Management. Freeman Edwards R. CHAPTER SIX OVERVIEW 44 . Wayne. 3. Prentice Hall. Stephen P. James A. Daniel R. 6th and. Discuss steps use in controlling? REFERENCES : 1. Gilbert Jr. R.1.1995. management Concepts. Premeaux.. Mondy. 6th edn. 6th ed 2001.F. Prentice Hall. Practices and skills . 2. Stoner. Why organization need to focus on controlling? What are the basic relationship between controlling and other management functions?. Robbins.

History of TQM A system approach in TQM Learning objectives : After completing this chapter student will be able to: 1. QUALITY 45 . Explain about the history of TQM Familiar with the system approach in TQM. Discuss the main ideas of Total quality management. 2.TOTAL QUALITY MANAGEMENT 1. 4. Definition of quality The differences between Total quality management (TQM) and traditional management. 3. Understand the difference between TQM and traditional management. 2. 3. 4.

Quality applies to product.0 Definition : “ Performance to the standard expected by the customer”( Fred Smith.(GSA) quality involves meeting or exceeding customer expectations. CEO of Federal Express) Meeting the customer’s need the first time and every time. Contributors : 46 .( what is considered as quality today may not good enough to be considered quality tomorrow) 6. (Boeing ) An ever changing state. Number of American went to Japan and helped to built and operate modern manufacturing facilities. people.3 History of TQM Occurred in Japan after World War II.6. 6. Goal is customer satisfaction.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.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. service. processes and environments.

resulting more jobs. 4. The measurement of quality is the price of nonconformance. ( set of beliefs and resulting behaviors that are shared throughout the organization).4 THE MAIN IDEAS OF TQM: TQM is a process of continuously improving quality over the long run. safety and field use. There are five main TQM ideas A system approach : Depends on understanding organizations as systems. W. Fitness for use in terms of design conformance. a) Culture system: Referred as social system. Focusing on the total quality effort on customers. Edward Deming Joseph M. 3. Parts of the system must work to support each other. 47 .1. Juran Philip B. Juran Philip B. Focuses on top down rather than worker pride and satisfaction. Output of one department should be given to another department. Cosby Kooru Ishikawa 6. W. Cosby Kooru Ishikawa Defines quality as predictable degree of uniformity and dependability. availability. The performance is zero defect. at low cost and suited to the market. workers meet to discuss suggestions for improvements. Contributing to the emergence of quality circle. The system for achieving quality is prevention. Edward Deming Joseph M. Quality improves. Systems: A series of functions or activities within an organization that work together for the aim of organization. not appraisal. Quality is defined as conformance to requirements. not goodness. costs will decrease and productivity increase. 2.

computer software. THREE SYSTEM IN ORGANIZATION c) 6. hardware configuration and capital investments.b) Technical system: Factors such as technologies in the physical infrastructure – include ergonomics consideration. Benchmarking – comparing own products and process against the very best in the world. A focus on customers The role of management 48 .5 THE The managerial system Managerial diagnosis Managing and checking points Policy deployment The social system Symbol. Effort from all levels supervisors to senior executive making TQM success. rewards. Management system: Define the effectiveness of those processes by which an organization manages its human and physical assets. Know how to pass on authority and responsibility to the people they work and put extra effort to cooperate with other departments. Internal and external customers define quality and employees produce it. 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. recognition.

CHAPTER SEVEN OVERVIEW 49 . Stoner. REFERENCES : 1..H.F.1995. Stephen P. 2. Prentice Hall. ACTIVITY : 1. Robbins. James A. T. Gilbert Jr. Managing the Total Quality Transformation. 6th ed 2001. Decenzo. Prentice Hall. 6th and. Daniel R. What differ between traditional management and Total Quality Management?. Letting employees make decision at all levels of an organization without asking for approval from managers.Employee participation Empowerment. Management. What are the main ideas of TQM? Discuss the system approach in quality management?.1991. David A. 2. 3. Freeman Edwards R. 2. New York: McGraw – Hill. Berry.. Fundamental of Management.

0 7.3 7. 4.2 7. 2.4 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.DECISION MAKING 7. 5. 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 . 3.1 7.

g in planning. Eng is the selection and training of personnel. e.program decision PROGRAMMED DECISIONS It is a repetitive decision that can be handle by a routine approach.2 Types of decision making : 1. organizing.PROGRAMMED DECISION This is a type of decision that deals with a unique. 7. It is usually made in accordance with some established habit. unusual or exceptional problems.0 DEFINITION 7 Process where a course is selected as the way to deal with a specific problem. The nature of the problem that occurs is unstructured and something different. The key to successful decision making depends on the proper formulation of the specific problem at hand.g Nature of problems an decision making in organization 51 . NON. Non. Decision making is a process which affects all the manager’s operating functions. Grievances procedures for employees are an example of programmed decisions.7. Selection of one alternative from two or more alternative. 7. controlling. rule or procedure (STONER).1 THE NATURE OF MANAGERIAL DECISION MAKING Decision making is one of the vital tasks of a manager e. Programmed decisions 2.

Highest level Organizational hierarchy structured lowest level organizational levels Un structured Non. Certainty Risk Uncertainty CERTAINTY: The decision maker knows the out-come of the problems. related rules and policies. E. These condition are: 1. 7.3 DECISION MAKING CONDITIONS There are three different conditions under which decision are made. Each of those conditions is based on degree to which the future outcome of a decision alternative is predictable.E.programmed nature of problem programmed nature of decision making Programmed decisions A repetitive decision that can be handle by routine approach. 3. Non programmed decision Unstructured. Individual are fully informed in terms of : RISK The nature of the problems Possible alternatives Result of alternatives 52 . Virus out break. E.g J. unique. Well structured situations using predetermine decision rules. 2. requires a higher level management participation.g grievances procedures for employees. unusual or exceptional problem.

Future condition are unknown in advanced. Steps 1 Investigate the situation. Step 4 Implement and monitor the chosen solution Design the implementation for the chosen situation.1 STEPS IN DECISION MAKING The understanding of the steps will enhance and improve the analytical and decision making process. 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. Decision makers responsible for reviewing the plan periodically and comparing the actual performance with the planned solutions. State Of Nature Types And Decisions 7. 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. Consider as many alternatives as possible Step 3 Evaluate and choose among alternative solutions Once the possible solutions are developed.2 53 . Define the problem Diagnose the causes Identify decision objectives Step 2 Generate alternative solutions.

low level risk uncertainty and risk. Unusual and partially known problems and alternative solutions that are modifications of other known and well define solutions. involve many people. identification and diagnosis of unusual and ambiguous problems with the unique. Adaptive: Combination of moderately. Made under conditions of Moderate levels certainty. many and various time. Made in the midst of a lot other managerial tasks. operating procedures and computer programs. Represents an individual decision. Represents a series of mini decisions made over a period of months or several years. 7. Novel and creative alternative solutions. Solution obtained from standard rules. Differences: ROUTINE ADAPTIVE INNOVATIVE of High levels of risks and certainty. Innovative: Involve combining the discovery. Do not unfold in a logical.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 . orderly sequence.

based on hard facts and figures. 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. Set objectives What to be achieve and by what date. situations and events that managers cannot control.rational decision model: Rational Make optimal decision. alternative solutions that will lead to desired result. new laws and political instability. Certainty: Managers are fully informed of the problem.g new technologies. entrance of new competitors into market. 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. Noticing Managers Monitor environmental forces and decide which are problems 2. 55 . probability that certain states of the nature will occur. Objectives probability: The likelihood that the state of nature will occur. possessing and understanding all information relevant to their decisions at the time they are made. Rational decision and non. Rational decision : Permits maximum achievement of an objective within limitations of environment in which decisions are made. but influence their decisions. It include noticing. Problem awareness and diagnosis. e.States of nature: Condition.

CHAPTER EIGHT OVERVIEW 56 . Gilbert Jr. Management. David A. 2.. Emphasizes expected results.F. 6. Freeman Edwards R. Discuss two types of decision making?. Final choice Implement the solution selected. Stephen P. including relative cost of each alternatives. Search for alternative solutions Seeking additional information. Fundamental of Management. Decenzo. 2. consulting experts. Stoner. Prentice Hall. 3.3.. undertaking. 4 5. ACTIVITY : 1. Explain the step use in decision making?. Compare and evaluate alternative solutions. 6th ed 2001. REFERENCES : 1.1995. thinking creative. What are the condition that affect the decision making?. 6th and. James A. Prentice Hall. Robbins. Choose among alternative solution. Daniel R.

Define what is leadership Explain the importance of leadership in organization Recognize several theories of leadership .3 7.6 7. LEADERSHIP 57 .LEADERSHIP 7. Familiarize with factors that influence managerial style. 5. 3.1 7.4 7. 4. Identify several leadership styles practice in organization.5 7.2 7. PATH GOAL THEORY Learning objectives : After completing this chapter.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.7 7.0 7. student will be able to: 1. 2.

Involve unequal distribution of power between leaders and group members Involves the ability to use the different forms of power to influence.. - 58 . obligation responsibilities towards employees. decisiveness. New Jersey. referent. 5) About values – Moral.F. John Wiley and Sons. expert power and legitimate power or authority. management. integrity and self confidence. Management for productivity. John.2nd edn) Four important facts are: 1) 2) 3) Involves people. Qualities such as intelligence.1 1) 2) 3) 4) Importance to organization Make contribution to organization Enhance and elicit cooperation Encourage teamwork Motivate employee to generate good work.employer and employees. J. 8. charisma.0 Definition : Process of directing and influencing the tasks related activities of group members. Leaders have certain inborn personality or leaders are born with certain characteristic.A. and 8. reward. mental and psychological characteristics. strength. Prentice Hall.8. 6th edition) The process of directing human resource efforts toward organizational objectives ( Schermerhorn.2 Trait theories of Leadership: The average person’s definition of leadership are : Evaluation and selection of leaders are based on their physical. ( stoner. bravery. enthusiasm. R .

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. 59 .leaders. counseling. Traits can be gained leaders through learning process Traits of Effective leaders and nonEffective leaders Does not depend upon particular set traits. offering information. Two aspects of leadership behavior : Leadership function Leadership styles 8. behavior/attitude.g agreeing the work performed by his/ her workers practice empathy or sensitive to her/his subordinate’s feeling. It depends on how well the traits match the requirement of the situation that / she is in. personality managerial supervisory ability. E.leaders Cannot point out the differences between of leader and followers.Set of Traits that differentiate leaders: Traits of leaders and non. The traits theory failed to isolate prominent traits to distinguish between leaders and non. 8. factors..4 LEADERSHIP FUNCTION: Considered to be effective when practices these functions: Task related/ problem solving function. mental Intelligence. Help the group to operate smoothly. self assurance and ability.g suggesting solutions. Group maintenance/ social function. charisma. RESULT Traits of leaders and non. E. An effective leader must performs both functions simultaneously.leaders Traits of effective leaders and noneffective leaders. opinion. Physical appearance.

It concern for both employeeoriented and task oriented styles of leadership to be practiced simultaneously. Encourage to participate in decision making.5 LEADERSHIP STYLES : Generate into two different leadership styles : 1. Trust and respect are developed. sensitivity to other’s needs and mutual trust. Concern on getting the job done to her / his satisfaction rather than develop or employee growth. 2. 8. Plan and defines work to be done Assigns task responsibilities Sets clear work standards Urges task completion and monitor results Supervise employee. Respect. This show high amount of consideration towards employee’s ideas and feelings. - Task oriented function/ production centered. Characteristic of Manager: Warmth and has special rapport with subordinates. Employee oriented/ people centered.8. 60 .6 MANAGERIAL GRID ( leadership grid) Developed by Robert Blake and Jane Mouton. Managers try motivate rather than control the employees.

9 5.1) Little concern for either production. Moderate concern for people and production Task High concern for production and low concern for people. Work accomplishment.Laissez.9 Team/ High concern for people and production participation/democratic/supportive relationships.fair people or Full attention to people’s need but low concern for production.5 9.1 Impoverished management Country club management Middle of the road Autocratic/ authoritarian/ management (9.5 (1. ( Democratic) 61 .1 1.1) Concern for production Managerial grid identifies five leadership behaviors :1. Managers concern for feeling and interests of the group members. ( Autocratic) 9.9) Concern For people (9. Leaders want work schedule to be followed at all costs.The Managerial Grid High ( 1. management.9) 5.

House Leader : - Leader : Make valued or desired Must change style of leadership rewards.8. employee’s characteristic. provide training. participative and achievement oriented. E. position power. Source for rewards. kind of behavior Behavior will contribute to employees satisfaction. Increase goal attainment Clearly defines job requirements. PATH GOAL THEORY Life – Cycle theory or situational approach ( by Paul Hersey and Kenneth Blancard) Path goal Model – By Robert J.1 Path goal model Life. Leadership behavior depends on situation such as leader. open minded. organization culture and policies. Predict leadership style that will be most effective. Identify which style is most important at any circumstances. Two leadership models developed: 1) 2) 8. expectation. supportive.7 CONTINGENCY APPROACH/ SITUATIONAL APPROACH Focuses on situational factors influencing managerial style.cycle or situational approach. assist employees. task structure.g leaders give directive.7.member relationship. . experience. Employees attributes ability. self control and experience. It tries to identify : Find out whether there is any leadership style appropriate in particular situation. 62 . according to level of maturity of employees Clarify to employees the and demands of situation. Result from theory: No one leadership style appropriate in all situations.

g leader replace new equipment. Increasing rewards to employees who achieve goals.7. E. Making the path to rewards easier through coaching and direction. e. 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. E.g training.2 LIFE –CYCLE OR SITUATONAL APPROACH Developed by Hersey and Kenneth Blanchard. 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 A leader explaining to employee how they can qualify for overtime pay.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. Reducing frustration barriers to reach goals. b) c) d) 8.g Recognition and praises.

Phase 4 (LR/LT) – Delegating Highest level of employee maturity. Maturity means : 64 . 4. Managers reduces the need for task relationship and continues to give emotional support and consideration to increase employees level of responsibilities. Employee lack of task relevant maturity. Phase 3 (HR/LT). 3.Telling Leader use one way communication. 3.g providing direction. guidelines. Explanation : 1. controlling and monitoring) The amount of relationship behavior the leader provides ( Vertical axis) ( e.Participating Employee show maturity in performing tasks. High task relationship is needed because employee lack of experience and skills. 2. Amount of task behavior that the leader shows ( horizontal axis) ( e.The diagram shows the relationship between : 1. They are skilled and experienced and motivated to assume more responsibility. Defines the goals and roles of employees and tell what. how and where to do task. E. 2.g employee relatively new and in experiences. 1. Phase 1 ( HT/LR). 3. Being motivated to assume more responsibility.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. A desire for achievement. possess a high level of task maturity. Managers provide high level of emotional support and encouragement to develop trust and confidence . They no longer need high level of supportive or task behavior from their leaders/ managers. More experience and skilled as well as achievement oriented. They are self directed and are able to exercise self control. 2. The willingness and ability to accept responsibility The education/ experience and skills relevant to particular tasks. Phase 2 (HT/HR) – Selling Employee are learning to do the job.

Shane R. REFERENCES : 1. 2. 3. Practices and Skills. Wayne. Discuss the relationship between leadership and management? If you a boss in any organization.ACTIVITY 1. Robert Blake and Jane S. The managerial grid III. Premeaux.1985 Houston : Gulf Publishing. Mondy. 2. Robbins. Management Concepts. 3. Stephen P. what leadership style you may practice? In what way leader can increase productivity?. Mouton. 6th edn 1993. Prentice Hall. Allyu and Bacon. 65 . R. Management 6th edn 2001.

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. you should be able to : 1.2 9.CHAPTER NINE OVERVIEW MOTIVATION: 9. Explain the concepts of motivation and its significance in the managerial process. 66 .0 9. 2. Understand and apply contemporary theories of motivation.1 9.

Management. People need organization to achieve goals and organization needs people to achieve its goals. Good motivation practices will help leaders and managers: 1. bonus and benefits Intangible – reputation.Individual. 9.9. 4th edition) tangible – higher pay.3. Encourage your subordinates to set performance goals that are specific.0 DEFINITION : The willingness to put forth effort in pursuit of organizational goals. manager. 2. challenging and attainable. employees. This lead to effective and efficient organization. Increase your employees expectations that their efforts lead to effective performance. recognition or achievement. Efforts are forces to perform. 3. ( R Wayne Mondy. Be sensitive to the differences in needs and values. Increase your employee expectation that their efforts will lead to effective performance. Needs ( unfulfilled) Tension Drive Search behavior Reduction tension Satisfied Needs ( Needs fulfilled) 9. EARLY VIEWS OF MOTIVATION 67 .1 Motivation process. respect.

listen to their repetitive. 3. encourage participation. The traditional model. Most people exercise more creativity. 2. Associated with Doughlas Mc Gregor’s Theory X and Theory Y. easily objectives. distasteful to most people. 2.Should keep 2. 3. Human Resources Model 1.Manager make use of under utilized human resources.Create environment where members can contribute.Manager should 1.There are three early views of motivation. 1.Manager must subordinates break down task informed and into simple. They are :1. self direction or self control. Traditional Model Assumes Human Relation Model 1) Work us 1)People want to inherently feel useful. The Human Relation Model.People want to contribute to meaningful goals. which related to Elton Mayo and Hawthorne studies. The Human Resources Model. Management policies 1. they learn for doing it. 2. self direction and self control than their present job demand. Must establish subordinates to detailed work exercise self routine and control and self procedures direction on routine matters. 3) Few people want to work to involve in work that requires creativity.Manager should closely supervise make each worker and control feel useful subordinates. associated with Frederick W. learned operations. Taylor and Scientific Management. 2. 2) Need to belong 2) What people do to a group. is less important organization to be rather than what recognized. Allow 3. 3. full 68 .

If tasks are simple. A person will be motivated when she or he has not yet attained satisfaction with their life. particularly with regard to work. This is because people are different in nature.People can tolerate work if pay is decent and boss is fair.1 HIERARCHY OF NEEDS 69 . Work satisfaction may improve as a ‘ by product” of subordinates making full use of their resources. people are closely controlled they will produce work that is up to standard.Expanding subordinates influence self direction and self control will lead to direct improvement. vise versa. Sharing information with subordinate and involving them in routine decisions will satisfy their basic needs to belong and to feel important. 2. ( 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.) 9.( Theory X and Y. Need vary among individuals. 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. 2.4. This means behavior with positive consequences tends to be repeated. ( Herzberg two factors theory/ hygiene theory) C) REINFORCEMENT THEORY Describes how people learn patterns of behavior based on environmental reinforcements. 1.General expectations 1.

achievement as well as prestige and status.actualization needs higher order Self-esteem needs Social needs Safety needs Physiological needs lower Order needs 1.g are love. Self. Safety or security needs Deals with our physical and psychological safety from external threats. water. need to love somebody as well as the need for social interaction. and shelter from environment 2. Self – Actualization needs 3. They are the lower order needs and the higher order needs. Self esteem needs It is also known as growth need. These are for our survival. freedom from coercion and a need for clearly defined regulations. E. He states that all people possessed a set of five needs in them.g are respect from others. It is a need for self-esteem and self growth. opportunities for advancement. 70 . 4. Examples are job security.Introduced by Abraham Maslow. or need for personal “ belongingness”. Social needs or “ Belongingness” Need for companionship. These needs are arrange in a hierarchical order . E. 5. recognition. E.g food. Physiological needs These need are our basic needs.

The factors are: a) HYGIENE FACTORS Also known as dissatisfier factor. It associated with job context.It comprises needs for the development of one’s full potential or the realization of one’s own potential. Satisfier factor is related to the job content of individuals. 71 . Hygiene factor only affects job dissatisfaction. It causes feeling of job dissatisfaction.2 TWO FACTOR THEORY Introduced by Frederick Herzberg by studying the job attitudes of 200 engineers and accountants .4. Often called as job content. Satisfier causes feelings of satisfaction. Improving them. such as changing the rule. it was concluded that individuals’ work satisfaction and dissatisfaction arise from two different sets of factors.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. 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 . b) SATISFIER FACTOR Also known as motivating factor. The absence of one does not affect the other. 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. From the study. 9. It associated with the work setting of an individual.

The factors that will contribute to employee’s satisfaction will be the satisfaction factor. managers need to turn their attention away from hygiene factors and focus on improving satisfier factors. 3. These managers in order to make sure that their employees do their work. Having to be pushed by managers to work. 2. 8. 5. work is as natural as play or rest. 5. 2. Willing to work. Theory Y managers. 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. Here managers have a traditional or a pessimistic view of motivation with regard to employees. However. This theory describes the views or perception of managers with regard to their employees. Managers of theory X view the employees in terms of the following characteristics: 1. Therefore. 4. Improvements made in the satisfier factors can increase job satisfaction. 3. However they will not prevent job dissatisfaction. 72 . To motivate. 9. Capable of directing themselves ( self direction) Capable of self –control Frequently using imagination. 2. the managerial implications associated with the two factor theory are: 1. since work brings satisfaction. ingenuity and creativity in accomplishing tasks. 4.3 THEORY X AND THEORY Y This theory was developed by Douglas Mc Gregor. view their employees in terms of the following characteristics: 1. Willing to accept responsibility.4. 7. 6. they will not improve job satisfaction. Coercive power will be used. Improvements made in the hygiene factors can prevent or eliminate job dissatisfaction. have to apply the autocratic style of leadership where the employee have to be constantly directed and controlled.

Edward R. 6th edn. Management. Petri..C. What can you do to motivate your staf?. ACTIVITY 1. Theory Y manager will delegate the authority and allow employees to participate in decision making. David H...F. 1995. 2.. Management for Productivity. and Gilbert. To ensure high performance. where employees are allowed more participation. Motivation. 3rd edn. Theory. H. Prentice Hall. 2nd edn. Principles and Practices. 4. Schermerhorn. Prentice Hall..A. managers need only to apply the participative style of leadership. freedom and responsibility in their work. Research and Application 3rd edn. REFERENCES : 1.A: Wadsworth Publishing.Theory T is optimistic view. Holt. Belmont.L. J. 73 . Greater job autonomy and task-variety is offered to employees. Freeman. John R.Management. Discuss how Herzberg two factors theory help in motivating employees? If you a manager.1993. John Wiley and Sons. Daniel Jr. (1990). Stoner. New Jersey. 2. 3.

3. student will be able to : 1. 3. 4. 4. Overcoming barriers to effective communication. 2. 74 . Explain the communication process Explain different channels of communication.CHAPTER TEN OVERVIEW COMMUNICATION 1. 5. 5. Define what is communication Understand the importance of effective communication. 2. 6. 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.

Employees need information to conduct tasks.0 DEFINITIONS : Webster’s dictionary “ the arts of expressing ideas”. Organizational communication. In organization – Disseminating of information through memos. knowledge etc. letters. Discuss face to face meeting. allocating and correcting mistakes. Everyone in the organization need to be informed of the objectives and goals of the organization. 3. Assist managers coordinating and integrating the work groups.1 IMPORTANCE OF EFFECTIVE COMMUNICATION Convey information Giving instruction/ commanding action Persuading or influencing change 1. 75 . In leading and motivating managers need to inform employees of doing the right tasks. 2.. reports and newsletters. 5. conveying or exchange of ideas. Process of sending and receiving messages among individuals and groups called interpersonal communication. by speech. OR Oxford English dictionary – Imparting. bringing in with exchange. 10. 4.PLOC requires effective communication. The science of transmitting information.COMMUNICATION 10. writing or sign. OR The process by which people seek to share meaning via the transmission of symbolic messages. Management function.

So that the receiver gets a different message from the one that was sent e. 10.g switch board Operator. Person who receive the information. E. Any kind of interference which results in distortion. The telephone The information itself as encoded by the sender. 76 .g that course is full.The receiver’s thought process on getting The what way -----to whom----with what effect.Managers is considered effective in his instruction when employees acts according to instructions. Interpretation. From in which the message is. The element of the receiver’s response which the receiver communicates to the sender.g incomplete information. E. E.g I’m looking for a place on PR course.2 COMMUNICATION PROCESS Classic model of communication developed by Shannon based on fine questionwho—says what---. 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.g spoken English .

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.3 FORMAL COMMUNICATION Information flows around organization whether or not they try to control it. work schedules. procedures.g policies. Convey info to their superior. Information can be accurate/ inaccurate Four types of chains show how individuals convey information. a) Vertical communication: Downward. rules. b) Lateral communication Horizontal communication at the same level.In the form of instruction and information e.10. 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 .

5 ORGANIZATION INVEST IN COMMUNICATION FOR SOUND BUSINESS REASON. Mass Communication Deals with public communication . 2. 2. 5. Received by or used by large number of people ( postal service. 6. internet etc) 4.4 LEVEL OF COMMUNICATION 1. 8. 4. Intrapersonal communication Between you and god Interpersonal communication Deals with communication between people usually face to face. 5. Organizational communication Occurs in large cooperative networks and include virtually all aspects of both interpersonal and group communication. 10. 3.end feedback Motivation Team spirit Crisis preparation Participative staff Good relation with its public 78 . Effective employee performance Manageability Sharp. Group communication Relates to the interaction of people in a small groups. 1. 3. usually in decision making setting. 7.10.

posture. mail. It is in form record and evidence. 5. Poor listening Semantic Certain words may be interpreted differently by different people. 79 .10. defensive. memo. Filtering Alteration of information to make it interesting. body placement. Credibility of the sender Associated with person’s feeling of love. letters. bulletin boards. voice tone. hand and body gesture to supplement speech. Info well kept. anger. use role playing. fear. hate. 10. easy to retrieved. Face expression and movement. learn to relax when communicate. 2.6 Improving The Comunication Process VERBAL COMMUNICATION Spoken words. positive and acceptable to the receiver. newsletter. writing letters. hand gesture. use mirroring to establish rapport. embarrassment and enthusiasm. Noise Factor interferes. speed up exchanging ideas and get direct feedback.7 Barriers to effective listening 1. confuse or disturb the messages from reaching the receiver. dress and appearance Obtain feedback. NON-VERBAL COMMUNICATION Means of gestures and to express feelings and emotions. use facial. jealousy. avoid using the same non verbal. Verbal face to face. 4. clothing. 3. fax.

80 . 4. Understand verbal and non. clothes. Obtain feedback Ask question. Create openness. postures and gestures.Modify language and use words appropriate. 5. 7. rational and trust Instill an atmosphere of openness. 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.8 OVERCOMING COMMUNICATION BARRIERS 1.Be specific c. 3. 2. repeat message.Use bias free language d. 6. visit site. Send message in an effective way a.verbal communication Facial expression.10. 8.Plan and clarify ideas before communicating b.

Schermerhorn. Effective communication importance to organization. organization overcome ineffective communication process. J. 81 . Management.. Discuss how REFERENCES : 1. 2. 3.. David H. John Wiley and Sons. Edward R. Prentice Hall.1993. For what reason organization invest in communication?.F. Freeman. 2nd edn. Principles and Practices. Management. 2. Prentice Hall... and Gilbert. Holt. Management for Productivity. 1995. Stoner. 6th edn. Daniel Jr.ACTIVITY : 1.A. John R. 3.. New Jersey. 3rd edn. Explain the important of the two communication channels in organization?.

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