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INTRODUCTION TO MANAGEMENT
1.0 WHY WE STUDY MANAGEMENT 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 DEFINITION OF MANAGEMENT, ORGANIZATION AND MANAGERS. MEASURING MANAGERIAL PERFORMANCE MANAGEMENT PROCESS LEVELS OF MANAGEMENT MANAGERIAL SKILL MANAGERIAL ROLES MANAGERIAL ACTIVITIES THE CHALLENGE OF MANAGEMENT
Learning objectives After completing this chapter, you should be able to : 1. 2. 3. 4. Define what is management Familiarize with the different types of organizations. Explain the levels of management and management functions Know the different types of managerial roles and activities.
WHY WE STUDY MANAGEMENT ? To enhance the understanding of events/ activities, challenges and skills that will give Meaning to our future work experience and careers as managers or other professional careers we may choose. Make us become effective manager who will be able to help the organization achieve a
high level of performance through the utilization of its human and material resources. Equip ourselves with effective management theories and practices that can be applied to
all types of organization and any occupational settings we may choose to be in the future. Make us to become effective managers who will be able to detect and locate problems to
be solve, thus making good decision about appropriate solution and utilizing organizational resources effectively to implement these solutions. Enable us to assess the future, make plans for it, thus acting as good planners. To be responsible and accountable for employees to be in the same track towards accomplishment of organizational goals.
DEFINITION OF MANAGEMENTS, ORGANIZATION AND MANAGERS.
MANAGEMENT: Earlier definition by Mary Parker Follet – Management scholar as: “ The art of getting things done through people” Stoner “The process of planning, organizing, leading and controlling the efforts of an organization members and of using all other organizational resources to achieve stated organizational goal”. Holt “ The process of planning, organizing, leading and controlling resources in an organizational
ORGANIZATION: Is a social unit in which two or more people interact to achieve a common goal or a set of goal ( stoner) or As a collection of people working together in a division of labor to achieve a common purpose.( Schermerhon) The structure of relationships that exists when two or more people mutually cooperate to pursue common objectives (Holt). TYPES OF ORGANIZATION: 1. Formal : Consist of two or more people who are involve in a mutual effort with formal authority to achieve common objectives ( Holt) 2. Informal organization The shadow organization consist of two or more people involved in a mutual effort without deliberate structures of authority or the necessity of the common objectives.
A MANAGER A person in an organization who is responsible for work or performance of one or more other persons ( Schermerhorn).
MANAGEMENT FUNCTIONS Comprise of the activities of planning, organizing, leading and controlling. Planning Organizing - Includes defining goals, establishing strategy And developing plans to coordinate activities. - Determine what tasks are to be done who is to do them, how the tasks are to be grouped, who reports to whom and where decisions are to be made. - Includes motivating subordinates, directing others, selecting the most effective communication channels, and resolving conflicts. - Monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations
Achieving the organization’s stated purpose ( Goal / Mission) 1.3 MANAGEMENT LEVELS a) First line managers The lowest level in the organization is that at which individuals are responsible for the work of others. First- line or first level managers direct operating employees only: They do not supervise other managers. E.g of first – line managers are the “ foreman” or production supervisor in a manufacturing plant, the technical supervisor in a research department, and the clerical supervisor in a large office.
“ president”’ and “ senior vice. Middle managers direct the activities of lower – level managers and sometimes also those of operating employees. 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. It establishes operating policies and guide the organization’s interactions with its environment.General manager 1. Actual titles vary from one organization to another. MANAGER By their level in the organization -first line manager .president”. c) Top managers A comparative small group of executives. Typical titles of top managers are “ chief executives officer”.4 MANAGEMENT SKILLS 5 .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.middle manager . the top management is responsible for the overall management of the organization.
Three basic kind of skills : technical.The ability to work with. Human skill . Robert L. musicians and accountants. and requires a range skills.Katz. FIRST-LINE MANAGEMENT Conceptual Human MIDDLE MANAGEMENT TOP MANAGEMENT Conceptual Human Technical Conceptual Human Technical Technical 1.Is the ability to use the procedures. understand and motivate other people as individuals or in groups. every manager needs all three but the amounts differ by their level in organization. human and conceptual Technical skill. techniques and knowledge of a specialized field.A manager’s job is diverse and complex.5 MANAGERIAL ROLES 6 . engineer. Conceptual skill – ability to coordinate and integrate all of an organization’s Interests and activities. Surgeons.
Manager continuously seeks information that can be use to advantage Disseminator . .Information received internally or externally will be transmitted to the subordinates .A person who perform and interacts with other people outside the organization. unexpected disturbances. Negotiator Manager is responsible for representing the organization at 7 major negotiations . 3.Information will be transmitted to people outside the organization or unit Thus.A department head performing ceremonial duties like greeting visitors. the informational roles are to assist the manager in receiving and communicating information to make the right decision.A person who is responsible for hiring. Disturbance handler . B 1. training and motivating subordinates in the organization.managers is responsible for corrective actions when the organization faces important. The interpersonal roles are to help the manager in managing organization smoothly. 2. Decisional roles 1. 2. Informational roles 3. C. 3.The specific classifications of managerial behavior. Interpersonal roles 2. . organization 3. entrepreneur Manager tries to improved the unit and initiate the changes. According to Henry Mintzberg “ The nature of managerial work”’ managers perform ten inter. 1. Ten roles classified under three main roles : They are : 1.related roles in the organization. Interpersonal Roles 1. Informational Roles Monitor . Figurehead . signing legal documents etc. 2. Leader Liaison .Manager is responsible in allocating the resources of the Managerial Activities 4. Decisional roles A.6 Resources allocate . Spoke person .
monitoring activities to proton Ensure that they are being Accomplished as planned and Correcting any significant Deviations. 4. 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. organizing. Production workers were assigned to different supervisor assembly lines / unit many productions activities were rearrange so as to achieve the goals Specified. 1. how the tasks are to be grouped. who reports to whom and where decisions are to be made. Planning . 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. selecting the most effective communication channels.Managers are the people who controlling. Controlling . directing. who is to do them. subordinates. The production manager and supervisor have created a certain environment where workers will want to produce more so as to meet the target. 3.7 THE CHALLENGE OF MANAGEMENT 8 . Leading Includes motivating. and resolving conflicts.Include defining goals establishing strategy and developing plans to coordinates uses activities deal with planning. 1.
Organizational restructuring and consolidation. This trend will shape the managers’ environment through the movement towards more streamlined.engineering A radical rethinking and re-designing organization’s processes to achieve drastic improvements in performance ( Micheal Hammer) Empowerment. Re. they are likely to find their organization survival at a brink. An approach that involves granting employees the freedom and responsibility to do their job as they think best. This challenges can and do influence the work of managers and affect the performance of the organization as a whole. without constantly having to appeal to higher authorities for permission.In an environment which is rapidly and constantly changing. Concept where organization is slimming down or downsizing operations in order to focus on resources and boost profits or decrease expenses. managers have to face and contend with a wide variety of challenges in pursuing their mission. Current and poses another new challenge to management and organizational today. 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. 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. If the managers do not closely monitor this challenges or changes in the organization environment or fail to respond quickly to this changes. efficient organization. c) d) e) f) 9 . 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. Success goes to the managers who can recognize and seize the opportunities.
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. Give examples of how they would be used by the following person(s).1995. Management.. 2. Freeman Edwards R. Robbins. 6th and. 2. Prentice Hall.. Prentice Hall. Fundamental of Management. Stoner. Gilbert Jr.F. James A. What is management and what is organization ? List and define four (4) management functions. Daniel R. 6th ed 2001. Stephen P. REFERENCES : 1. David A. CHAPTER 2 OVERVIEW 10 .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.
Understand the beginning of management practice Explain several management theories . Apply several techniques of management practice. 3.EVOLUTION OF MANAGEMENT THEORIES 1. 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. 2. 5. 3. 2.0 EVOLUTION OF MANAGEMENT THEORIES 11 . 6. 4. 2.
Egyptian use mathematical to organize labor. Tried to upgrading streets. houses. 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. planning and leadership use by military strategy.C during King Hummurabi. educational system.1. Great Pyramid in Egypt. This point saw the invention and use of machinery setting up factories and creation of entrepreneurial capital that finance the industries.000 workers involve. touching on strategy. People think ways to improve efficiency and effectiveness. The factories became widespread and large number of employees need to be coordinated. 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.Begin from ancient civilization. supervise to built within specified design and time. Charles Barbage ( 1792-1871) b) 12 .1 Pre classical view point. Organized management practice in 2000 B. 100. Therefore the challenge had motivated a number of individuals to think of ways and means to run the factories more effectively. sanitation. 2.1 THE FORMATION OF MANAGEMENT PRACTICES Management thought started with industrial revolution around 1800.
Three different approaches : a) b) c) Scientific management Bureaucratic management Administrative management 1. Observed ‘ soldering ‘ by employees. Observed good engineering skills and good business skills were rarely combined but both were equally important to run organization. Faulty wage system encourages workers to operate at slow pace. 13 . president of Yale and Towne Manufacturing company. Ideas used in scanlon plan. Henry R.2 CLASSICAL VIWEPOINT A perspective on management that emphasizes finding ways to manage work efficiently. 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. Towne ( 1844-1942) A Mechanical engineer.1.working at less than full capacity meaning feared that.c) Known as father of modern computing English mathematician. SCIENTIFIC MANAGEMENT Approach that emphasizes findings ways to manage work efficiently. Increasing their productivity would cause them or others to lose jobs. 2. Three different approach are: a) Frederick Winslow Taylor ) 1856-1915) The father of scientific management. Recognized specialized physical work as well as mental work ( specialists Invented a profit sharing plan _ a bonus for useful suggestions and portion of wages that was dependent on factory profits. Generate rules handed down were inefficient. pioneered in computing and management.
BUREAURATIC MANAGEMENT a) Max Weber (1864-1920) German sociologist An approach that emphasizes the need for organizations to operate in a rational manner.management should develop a science for each tasks to be performed.which will help people to reach their maximum potential by developing their skill and abilities. train them by using scientifically developed method. people promoted on merit) DESCRIPTION CHARACTERISTICS 14 . improve production by his principle.Thus. procedures. b) 2. He divide work into different task. formal rules. Frederick made use of time and motion study to substantiate his theories and increase productivity. He redesigned the work. Carefully select employees. Divide work and responsibility. Management will plan work method using scientific principles and employees are responsible for executing the work accordingly. developed science management : 1) 2) 3) 4) Scientifically study each tasks and develop the best method for performing the tasks. Henry L Gantt (1861-1919) Gantt chart – graphic aid to planning. scheduling and control. Cooperate fully with employees to ensure them using proper method. Lilian define scientific studies management must focus both analysis and synthesis. (Ideal organization where activities and division of labor were clear. 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. Management tool that helps managers to schedule their work.
ADMINISTRATIVE MANAGEMENT An approach focuses on principles that can be used by managers to coordinate the internal activities of organizations. to ensure uniformity and facilitate coordination Rules. Multiple level of positions. so that members know what is expected from them thus. 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. 1. Formal rules and procedures Impersonality Well defined hierarchy Career advancement 3 . Necessary to run the organization. carefully reporting relationships among levels. become more competent. provide supervision of lower offices by higher offices based on Selection and promotion based on the qualifications merit and performance of members.Specialization of labor Jobs broken down into routine. With authority comes responsibilities. The right to give orders and power to exact obedient. policies and sanctions are applied uniformly without prejudiced. it b) Authority c) Disciplines 15 .
depends on the worthiness of its leaders. Objectives is to optimum use of the capabilities of personnel. one plan and one person in charge. A scalar chain of authority extends from the top to bottom of an organization and defines the communication path . The interest of one group of employees should not interest to general interest prevail the interest of the organization. Activities aimed at the same objective. Chester Barnard (1886-1961) 16 . High turn over is not rate will effect the functioning tenure of organization. Compensation should be fair to both the employee and employer. Materials in the right place. easy to retrieve and facilitate activities.. 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. is also encourage as long as managers are informed. The amount depends on situation.Horizontal comm. d) e) f) Unity of command Unity of direction Subordination of individual Employees should received orders from one superior only. managers encourage and develop subordinates initiative to the fullest. Employees treated with kindness and justice. Select right employee for the right place and right time.
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. feel that the actions indicated are inline with their need and other employees and view themselves as mentally and physically able to comply. = Hawthorne effect – improve performance.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. Concluded that the increase of productivity was due to the change of supervisory arrangement that had been made to facilitate the experiment.1. 2) Human Relation Movement Two theorist : b) d) 17 . Power sharing Conflict resolution Integration of organizational system Hawthorne studies A group of studies done at Hawthorne plant of Western Electric company.- - Acceptance theory of authority. 1) Early behaviorist: Hogo Munsterberg ( 1863-1916) Mary Parker Follet (1868 – 1933) a) Hugo Munsterberg Interested in identifying the conditions that would promote the individuals best work and finding ways to influence workers to act in accord with management interest.early 1930s : Monitored the five women assembling electrical relays. 2. 1920s. Mary Parker Follet Focus in group dynamic. Managers real powers come from the degree of acceptance of his workers.3 BEHAVIORAL VIEWPOINT Emphasizes the importance of attempting to understand the various factors hat affect human behavior in organizations.employees work together. Found that the women still increased their productivity period. see the communication consistent with the objectives of organization.
psychology. Once has satisfy basic need before other can be taken care. Theory X – assume employees are lazy. Behavioral Science Approach Emphasizes scientific research as the basic for developing theories about human behavior in organizations. have capacity to be creative. c.a) Abraham Maslow (1908-1970) Contribute to the theory of motivation “ hierarchy of needs”. little ambition. Conclusion – managers who assume best of their employees are rewarded with committed and satisfied workers.4 QUANTITATIVE MANAGEMENT VIEWPOINT Emerged as a major force in world war 2 Focuses on the use of mathematics. focused on security needs. sociology.Employees are capable of self control. 2. Management information systems 1. It include management. Management science/ operation research 2. Physiological need ( lowest) Safety Belongingness Esteem Self Actualization Douglas Mcgregor (1906-1954) i) ii) iii) iv) v) b. statistics and information aids to support managerial decision making and organizational effectiveness 1. Management science/ operation research 18 . This Dictated people’s motivation to perform task. Theory Y.1. Theory X and Y – managers view their workers in one of the categories. managers can be used as guides in assessing various situations and deciding appropriate actions. Employees do better with attainable goals than without goals. Operation management 3. anthropology and economics.can be use to establish practical guidelines for managers. higher level need are often unmet on job.
2.1. Transformations Managerial and Technological Process Abilities: Planning.use by the organization. Management Information System The field of management that focuses on designing and implementing computer based information systems for use by managements . 2. E. e. financial. Open System A system that operates in continual Inputs 19 . equipment and informational resources required to produce goods and services.Aimed at increase decision effectiveness through the use of sophisticated mathematical models and statistical methods.g work scheduling. Operation Management The function/ field of expertise for managing the product and delivery of an organization’s products and services. Feedback Information about result and organizational status relative to the environment Advantages of Systems approach : can be analyze at different levels.g system that run raw data to information. 3. Providers a framework for assessing how well the various parts of an organization interact to achieve common goal. Controlling and technology –to converts inputs into outputs. System theory An approach based on the assumption that organizations can be visualized as a systems. production planning. 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. System – A set of interrelated parts that operate as a whole towards a common goal.5 CONTEMPORARY VIEWPOINTS Major innovations in ways of thinking about management: System theory Contingency theories 1. inventory analysis. Components of system Human material. Organizing.
Fundamental of Management. What were the Hawthorne studies? Why was the human relations movement important to management history?. 6th ed 2001. 6th and. Daniel R. Management. 4.Closed system interaction with its environment. Decenzo. Gilbert Jr. Prentice Hall. Prentice Hall. 3. How did Industrial Revolution Influence Management Practice? Why did scientific management receive so much attention?. Identifies contingency principles to take action on the situation.. receives little feedback. ACTIVITY : 1. REFERENCES : 1. David A.. James A.appropriate actions by managers depend on situation. Does little or no interaction with environment. CHAPTER 3 OVERVIEW 20 . 2. Freeman Edwards R.F. - Contingency Theories Appropriate managerial action depends on particular parameters of situations.1995. 2. 2. Stoner. Successful companies operated differently depending on their technology category. Stephen P. Robbins. What is contingency approach to the study of Management?.
0 3. 2. Explain the importance of planning Explain what is “ goals” and “Objectives” Apply various types of plans in planning Define what is “ decision making”. 6. 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. Explain the differences between planning and plans.1 DEFINITION OF PLANNING AND PLANS 21 .3 3.4 3. 3. 4.PLANNING 3.6 3.1 3.5 3. Familiarize with types and nature of decision making. Outline the steps in decision making process. 5. student should be able to : 1.
3 THE IMPORTANCE OF PLANNING IN ORGANIZATIONS 22 . ( MONDY) . As a manager.3. Based upon the definition stated above. Who is responsible for doing what? 4. 1. Formally prepared Observable. Planning is an important managerial functions. A process that begins with objectives.1 PLANNING Important to all organization. policies and detailed plans to achieve them.1. 2. logical and realistic Planning is a pervasive and continuous executive functions involving complexes processes. you can infer that plans should be: 1. Planning allows us to be more certain and to plan for the future. Whatever activities are planned by the managers. Planning establishes an organization to implement decisions and includes a review of performance and feedback to introduce a new planning cycle. managers can inform their subordinates about the expectations of the management and the objective of the organization can be realized. When should these activities be carried out? 3. he has to plan. economic. Where should the activities be carried out? 5. Through planning.2 PLANS According to Mondy. whether he is top manager or lower level manager. 3. politic and social. What activities are required to accomplish the objectives? 2. It is important because organization are effected by change. plans are statement of how objectives are to be accomplished. defined strategies. (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”. A manager must plan ahead to get things done through his subordinates 3. When should the action be completed?. there are several questions that need to be asked to realize the organization’s goals. factual.
It can reveal opportunities for new services. 4. Planning helps to determine what opportunities there are to exploit. Planning can point out the need for future changes. 8. a manager successfully copes with his affairs and problems. Through plans. It help to achieve goals and reduces random activities and needless overlapping. 3. resources are efficiently and effectively utilized. thus resulting in saving. 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. It provides for effective utilization of available facilities of an enterprise. Planning enables us to identify the course of action by setting objectives and choosing alternatives that will be most profitable. 3.4 TYPES OF PLANS 23 . 9. Not to plan is to manage as a results of events rather than by use of foresight influence an action. 6. the profitable alternatives that exist are identified through a planning process. By means of planning. In other words. 7. rather than allowing them to dilute and negate his efforts. 5. 2. 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. What is really happening become more meaningful when we know what is really expected. It assists a manager in attaining confident and aggressive leadership.
The failure of some managers to recognize the variety of plans will caused difficulty in making planning effective. Well defined goals provide a solid basis for managers to organized. manufacture and market pharmaceutical products that assure strong growth and profitability. So. Goals are the ends toward which activities is aimed. Goals that are clearly established an properly communicated to employees stand the best chance of being reached. 2. E.Before any managers can plan the activities of the organization. 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. large or small it must set goals.5. The goal must be include long – term and short – term plans to be successful. The goal must be clear and coordinated 3.confident.g. Purpose It is define as an intention to produce a specific good or service. Setting goals gives people a sense of control that leads the action. marketing pharmaceuticals products can be the mission of a drugs manufacturing company. Weather a firm new or old. Characteristics of setting goals are: 1.g to develop.5 GOALS Goal is one type of plan. what are goals?. 3. Goals is organizations provide the ends towards which people direct their efforts. 24 . managers do need to know the various types of plan. The mission of an organization’s is its products or services or markets or customers . Mission It is the purpose or reason for the existence of an organization. Accomplishing goals leads to self. lead and control their departments or company successfully. 3. specific and meaningful.1 TYPES OF GOAL : 1.e. 2. Greater risk taking and more action. The goal must precise.
5. They serve as standards of performance against which actual performance may be compared and it is an important dimension of the control process.3. Process of making long term choices about an organization’s mission. plant and equipment. 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. strategies. 6. Tactical planning Making detail.6. departmental or individual level. Resource allocation It distributes money. short term decisions of what to do. Objective It is an estimated end result expected in the future. Objectives are established at organizational. 3. personnel. can be an objective of a salesman. policies and resource allocations. Objectives determine the role an organization should play in a given environment. Strategic planning. 3. 4. which will do and how it is to be done. A company may have the strategy diversifying into related businesses within the next few years. Increasing the accounts handled from 20 to 25 percent within the next year.1 The nature of objective: 25 . land and other tangible means of production for various uses. 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. Developing annuals budgets for projects and departments. Choosing specific means of implementing strategic plans.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 . They provide a direction in which the organization should move. 7. overall objectives.
optimization. It helps to coordinates decision at all levels It provides a basis for establishing standards facilitating performance measurement at all management levels.6.level ones.units in the organization. It helps to avoid sub. It helps to prevent displacement of objectives wherein means become more important than ends that were original intended. 26 .units accomplish their objectives at the expense of the other sub. having some 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. 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.1. that is. 3.
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.4 4.3 4.2 4.1 4.6 4.5 4.CHAPTER FOUR OVERVIEW ORGANIZING 4.0 4. 32 .
1 ORGANIZING Definition : The formal way for managers to divide work coordinate task. 4. Organizational structure can be divide into four elements : Specialization Standardization Coordination Authority 33 . Letting employees know what to expect by them establishing rules.4 Divide work according to nature and similarity of tasks.2 Why organizing? 4. when.0 4. where and how. Clarifying responsibilities through job descriptions. 3.5 1. 4. by specifying which resources to be used. 4. regulations operation procedures and performance standards. Minimize costly weaknesses Accomplish better objectives by using coordinated efforts of people. 2. 4. the work done and facilities so that goals are achieved. 4. 3. organizations charts and lines authority. Pool resources. Organizational Structure : Formal system that separates and integrates tasks : Allocating people and resources to tasks.3 1.4. To create and maintain relationship between all resources. To structure / arrange the relationship between people. 2. delegate authority and responsibility to achieve organizational objectives. Important of Organizing Important to management system. increase efforts which lead efficiency Build continuity and synergy.
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.coordination requires knowledge of company wide problems. communicate to lower managers. On the job training programs will promote standardized skills and reinforce values to organization’s success. assigning to individuals/ work who are trained.a) - Specialization : Identifying specialized task. a willingness to share responsibility and effective interpersonal communication. Coordination : Formal and informal procedures that integrates both managerial and employees activities. functional and first line usually supervise such as marketing. Decentralized organization – Greater decision making responsibility is given to lower level managers. d) Authority : Right to make decision and take actions. 34 . Middle managers will be responsible for directing work. accounting or quality control. Various organization distribute authority differently. In less structure. instructions. Centralized organization. rules and regulations to standardize subordinates jobs success Application forms will standardize the selection of employees.top manages make decision. How? Description.
DIVISION OF WORK : Work is being divided among members and different jobs related to each other . Subdivision Each box represents a subdivision of the organization that is responsible for a portion of the work. Lines of authority Lines connecting the boxes show the official lines of authority and communication. interest and positions. Type of work Label in each box identifies the subdivision area of responsibility.This division of work and the grouping together of people is done based on some common characteristics linked between the activities involved.1 Importance of division of work : Increase productivity Create specialization. those reporting directly to the same individual are at the same level. departments and function within the organization. Five major information found in the organization chart are: 1. 4. Tasks Indicates the range of tasks within the organization.Simplified tasks that are easily understood and completed quickly. 35 .7.6 ORGANIZATION CHART : The way to describe the four elements including the location of positions. Easy to assign tasks to individuals based upon their talents. 3. 5. Levels of managementManagement hierarchy.4. 2. 4.7 4. Disadvantages: Sense of control felt by managers will be different. Create dissatisfaction and boredom of routine and specialize tasks.
Rapid communication between subordinates and superior. Advantages Supervisors are forced to delegate clear policies. Good managers with subordinates.8. Advantages : Close supervision and control Rapid communication between subordinates and superior. 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.1 FLAT : few organization levels with flat wide span of authority. levels costly excessive distance between the lowest and the highest level. Subordinates must willing to obey Disadvantages Danger of superior’s loss Superior’s too involved control. 36 . Types of organization structure: Flat and steep Flat – Flat wide span of authority SteepShort span of authority with many organizations levels.2 STEEP : Short span of authority with many organization levels. Close supervision and control. Disadvantages: Superior too involved with subordinates Many levels costly Excessive distance between the lowest and the highest level. Many needed to handle situations.8.8 Span Of Management: Number of subordinates who report directly to a given manager.4. 4.
Why delegate? Culture of organization Specific situation involved. DELEGATION: the passing of formal authority to another person.1 Line authority – A manager is responsible for the work of his unit and its direct contributions to the objectives of the organization. Staff authority Each individual or group pays a supporting role and contributes to the objectives of the organization. authority and accountability.9. Guide lines for effective delegation authority. 4.2 4. Superior delegate authority to subordinates in order to facilitate work being accomplished. Includes responsibility. It is legitimate. Authority is delegate from top. 4.9.10 37 .4. Scalar principle: To whom Who can delegate To whom they are accountable Unity of command Each employee report to only one superior. authority and accountability. Responsibility.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. Relationship behavior personalities and capabilities of the people in that situation. 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.
ridicule. Advantages : It provides absolute control over organization. In some situation all managerial decisions have to be approved by the chief executive before operation.12 CENTRALIZATION The responsibility and authority concentrated in one place so that major decision are made by central controlling body.4. penalty. praise. Bureaucratic control methods. Common standards for all in organization. It will lead to frustration. rejection and denial of rewards.president. acceptance. managers members of staff unable to use discretion but according to inflexible rules. More reporting and inspection may be needed than if the control were centralized.Spread of forms and rigid procedures will thus slow down the operations of the organization. 5 types of power: a) b) c) d) f) Reward power: Money.11 POWER: Ability to exert influence. fame Coercive power Pain. money. supervisor 4. promotion. Disadvantages : Each section may not have standard procedure. Control can be autocratic and inflexible. status Expert power Influence others through knowledge Referent power Status. physical appearance. Legitimate power Position. 38 . A process where managers affect other’s behavior. Administration convenient and the focal point for each function.
By product Functions and activities based on products manufactured by the company. Promote conflict over product practices. Responsibility for profits at the division level. Easier to mobilized special skills. Places attention and focuses effort on product line. Does not foster development of general managers. Allows growth and diversity of products and services. Difficult to determine accountability.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. 39 . difficult to understand responsibility for overall tasks. Manager is expert in a narrow range of skill. Improves coordination of functions activities. Costly. Four Types : By function By product By territory By customer Advantages Disadvantages Difficult to make decision. thus difficult for top management to control. Division managers fairly independent. By Function Mainly used by smaller firms that offer limited line of products because it makes efficient use of specialize resources. Little coordination and interpersonal skills needed.4. 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.
40 . Responsible for profits at lower level. 6th ed 2001. Stoner. Daniel R.F.. 2. regional manager are fairly independent.1995. Prentice Hall. 5. less control for top management. 2. 4. By Customer Difficult to coordinate operations between competing customer demands. different customers Develops expertise in customer handling More staff required. Freeman Edwards R. 2. Decenzo. Advantages: 1. Promote job satisfactions Provides good management experience to managers and supervisors. 3.By territory Organized around the places Offers better services where operations are located at low cost. Fundamental of Management. Can you identify the four ways to departmentalize? How do authority and power differ? How do centralization and decentralization differ?. Stephen P. David A. James A. Flexibility to meet changes Rewarding to managers and staff because it enables them to exercise their own judgment and initiative. Emphasizes on local market and problems. Gilbert Jr. How does size affect structure? REFERENCES : 1.. Offer better face to face communication. Requires managers and employees expertise in customer’s problem. ACTIVITY : 1. 6th and. Management. 4. Robbins. 3. Grouping of activities to Concentrate on reflect the interest of customers needs. Promotes personal development and their service becomes of greater value. Prentice Hall.
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 . 3. 5. 3. 2. 5. 4.CHAPTER FIVE OVERVIEW : CONTROLLING 1. 4. 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.
2 The control process.PLOC by determine what is necessary.1 The Important of Controlling : Assist the management process.3 42 .5. Enable managers to check on performance. when and why it is required. Take corrective action if the performance does not match the standard then corrective actions may be include Characteristics Of Effective System: 5. E.As organization grow in size and diversity. Its depend on the situation Determine whether performance matches standards.g R & D gas in the air. 5. Deals with human limitation ( mistake) e.: Establish standards and methods for measuring the performance standard. If the performance match the standard no corrective action is needed.g wrong forecasts thus it help tosspot mistake. - 5. product demand. Plans and goals set by organization deals with future which is always uncertain and is constantly changing. Control is needed to coordinate activities and accomplish integration.g customer waiting time. Deals with the change. or uncertainty. Ensure delegation and decentralization are operate smoothly. The process of monitoring performance and taking action to ensure desired results. E. Deals with complexity.g market shift.0 Definition: The process to assure that actual activities conform to planed activities ( J.F stoner). they become complex. Measure the performance e.
Accurate informationInaccurate will cause organization to make wrong decision. Objective and comprehensiveStandard set must be understandable and measurable. E.4 Types Of Control ( Control Methods) 1.g restaurant will ask how you find your meal after you have taken it. 3. actions are done and applied to future activities. 3. Consistent with the organization’s structure(organizational realistic). 5.1. Focused on strategic control points. Post action control After an action is completed. 4. To anticipate potential problems and prevent them from occurring . e. take corrective actions before final result are achieve. E. 4.g zero inflation campaign. TimelyInformation must be collected and evaluated quickly to enable managers to solve problems on time. human resource and material resources.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. 6. Screening control ( yes or no control) Check points before an activity proceeds further approval of large amount of cheque. Steering control To spot problems as they develop or work process. 2. Pre – action control ( feed forward) Control done at input level of production.g bank procedure 2. ACTIVITY : 43 .g finance. Attempts to measure result of certain action. If there are problem corrective. 5.Control must be exercised at all level of management.
Stoner. Allyn and Bacon.. Robbins. Fundamental of Management. Freeman Edwards R. 2. 2.1. David A. Practices and skills . Prentice Hall.1993. Discuss steps use in controlling? REFERENCES : 1. Prentice Hall. CHAPTER SIX OVERVIEW 44 .. Why organization need to focus on controlling? What are the basic relationship between controlling and other management functions?.F. Wayne. management Concepts. Management. 6th ed 2001. Premeaux. Decenzo.1995. R. 6th edn. 2. Stephen P. 6th and. Gilbert Jr. Shane R. James A. Daniel R. Mondy. 3.
2. Definition of quality The differences between Total quality management (TQM) and traditional management. 3. 2. Explain about the history of TQM Familiar with the system approach in TQM. 4. 3. QUALITY 45 . Discuss the main ideas of Total quality management.TOTAL QUALITY MANAGEMENT 1. History of TQM A system approach in TQM Learning objectives : After completing this chapter student will be able to: 1. Understand the difference between TQM and traditional management. 4.
(GSA) quality involves meeting or exceeding customer expectations.0 Definition : “ Performance to the standard expected by the customer”( Fred Smith. processes and environments. service. (Boeing ) An ever changing state.6. Number of American went to Japan and helped to built and operate modern manufacturing facilities.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. people. Goal is customer satisfaction.( what is considered as quality today may not good enough to be considered quality tomorrow) 6. Quality applies to product. Contributors : 46 . 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.3 History of TQM Occurred in Japan after World War II. CEO of Federal Express) Meeting the customer’s need the first time and every time. Japanese industry was completely destroyed and had to be rebuilt from scratch.
W. There are five main TQM ideas A system approach : Depends on understanding organizations as systems. safety and field use. not goodness. at low cost and suited to the market. Parts of the system must work to support each other. W. Fitness for use in terms of design conformance.4 THE MAIN IDEAS OF TQM: TQM is a process of continuously improving quality over the long run. Cosby Kooru Ishikawa Defines quality as predictable degree of uniformity and dependability. Systems: A series of functions or activities within an organization that work together for the aim of organization. Quality is defined as conformance to requirements. Edward Deming Joseph M. Focusing on the total quality effort on customers. Cosby Kooru Ishikawa 6. Contributing to the emergence of quality circle. The performance is zero defect. 3.1. a) Culture system: Referred as social system. 4. Output of one department should be given to another department. ( set of beliefs and resulting behaviors that are shared throughout the organization). The measurement of quality is the price of nonconformance. Juran Philip B. Focuses on top down rather than worker pride and satisfaction. workers meet to discuss suggestions for improvements. availability. resulting more jobs. The system for achieving quality is prevention. 47 . Edward Deming Joseph M. costs will decrease and productivity increase. 2. Juran Philip B. not appraisal. Quality improves.
hardware configuration and capital investments. Internal and external customers define quality and employees produce it. Effort from all levels supervisors to senior executive making TQM success. THREE SYSTEM IN ORGANIZATION c) 6. 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. Benchmarking – comparing own products and process against the very best in the world. recognition. Management system: Define the effectiveness of those processes by which an organization manages its human and physical assets. computer software.b) Technical system: Factors such as technologies in the physical infrastructure – include ergonomics consideration.5 THE The managerial system Managerial diagnosis Managing and checking points Policy deployment The social system Symbol. rewards. Know how to pass on authority and responsibility to the people they work and put extra effort to cooperate with other departments. A focus on customers The role of management 48 .
Fundamental of Management. Prentice Hall. Stephen P. Management. Managing the Total Quality Transformation. Daniel R. Prentice Hall.1991. 2. What differ between traditional management and Total Quality Management?.H. 6th and. 3. Gilbert Jr. REFERENCES : 1.. 6th ed 2001.F.1995. Stoner. David A. 2. Decenzo.. Letting employees make decision at all levels of an organization without asking for approval from managers. What are the main ideas of TQM? Discuss the system approach in quality management?. ACTIVITY : 1.Employee participation Empowerment. James A. Freeman Edwards R. Berry. T. CHAPTER SEVEN OVERVIEW 49 . 2. New York: McGraw – Hill. Robbins.
0 7.3 7.DECISION MAKING 7.1 7. 3.2 7. 2. 4. 5. Know the condition that affect decision making DECISION MAKING 50 . student will be able to: 1. Explain what is decision making Explain types of decision making Apply all steps in decision making Familiarize types of state of nature in decision making.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.
organizing. Decision making is a process which affects all the manager’s operating functions. e. Grievances procedures for employees are an example of programmed decisions.0 DEFINITION 7 Process where a course is selected as the way to deal with a specific problem. 7. The key to successful decision making depends on the proper formulation of the specific problem at hand. rule or procedure (STONER). Selection of one alternative from two or more alternative.2 Types of decision making : 1. Non. unusual or exceptional problems.1 THE NATURE OF MANAGERIAL DECISION MAKING Decision making is one of the vital tasks of a manager e.PROGRAMMED DECISION This is a type of decision that deals with a unique.program decision PROGRAMMED DECISIONS It is a repetitive decision that can be handle by a routine approach. The nature of the problem that occurs is unstructured and something different. Programmed decisions 2. Eng is the selection and training of personnel. NON. controlling. It is usually made in accordance with some established habit.g Nature of problems an decision making in organization 51 . 7.g in planning.7.
unusual or exceptional problem.3 DECISION MAKING CONDITIONS There are three different conditions under which decision are made.programmed nature of problem programmed nature of decision making Programmed decisions A repetitive decision that can be handle by routine approach. unique. These condition are: 1. 7. 3. Well structured situations using predetermine decision rules. Virus out break. 2.g grievances procedures for employees.g J. E.E.Highest level Organizational hierarchy structured lowest level organizational levels Un structured Non. requires a higher level management participation. Each of those conditions is based on degree to which the future outcome of a decision alternative is predictable. related rules and policies. Certainty Risk Uncertainty CERTAINTY: The decision maker knows the out-come of the problems. E. Individual are fully informed in terms of : RISK The nature of the problems Possible alternatives Result of alternatives 52 . Non programmed decision Unstructured.
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. Consider as many alternatives as possible Step 3 Evaluate and choose among alternative solutions Once the possible solutions are developed.1 STEPS IN DECISION MAKING The understanding of the steps will enhance and improve the analytical and decision making process. Step 4 Implement and monitor the chosen solution Design the implementation for the chosen situation.Future condition are unknown in advanced. Define the problem Diagnose the causes Identify decision objectives Step 2 Generate alternative solutions. the decision maker has to examine the probable desirable and undesirable consequences of each alternative.2 53 . 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. Steps 1 Investigate the situation. Decision makers responsible for reviewing the plan periodically and comparing the actual performance with the planned solutions. 7.
Do not unfold in a logical. Represents an individual decision. Novel and creative alternative solutions. 7. Made under conditions of Moderate levels certainty. Represents a series of mini decisions made over a period of months or several years. identification and diagnosis of unusual and ambiguous problems with the unique. orderly sequence. Innovative: Involve combining the discovery. many and various time. Unusual and partially known problems and alternative solutions that are modifications of other known and well define solutions. operating procedures and computer programs. involve many people. low level risk uncertainty and risk. Made in the midst of a lot other managerial tasks. Adaptive: Combination of moderately.3 CONDITION THAT AFFECT DECISION MAKING 54 . Solution obtained from standard rules.Routine Decisions Certainty Adaptive decision Innovative decision Uncertainty Subjective probabilities Objective probabilities RISK CONTINUUM Routine : Choices made in response to relatively well known problems. Differences: ROUTINE ADAPTIVE INNOVATIVE of High levels of risks and certainty.
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. Non-rational model Information gathering and processing limitations make it difficult for managers to make optimal decisions. possessing and understanding all information relevant to their decisions at the time they are made. situations and events that managers cannot control. Problem awareness and diagnosis. new laws and political instability.rational decision model: Rational Make optimal decision. Rational decision and non. Certainty: Managers are fully informed of the problem.States of nature: Condition. It include noticing. 55 . entrance of new competitors into market. Objectives probability: The likelihood that the state of nature will occur. Rational decision : Permits maximum achievement of an objective within limitations of environment in which decisions are made. but influence their decisions. probability that certain states of the nature will occur. Set objectives What to be achieve and by what date. Noticing Managers Monitor environmental forces and decide which are problems 2.g new technologies. e. 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.
including relative cost of each alternatives. CHAPTER EIGHT OVERVIEW 56 . Stephen P. Gilbert Jr. 6th ed 2001. ACTIVITY : 1. Freeman Edwards R.3. Discuss two types of decision making?. Robbins. David A..1995. 6. undertaking. 2. Fundamental of Management. consulting experts. What are the condition that affect the decision making?. Final choice Implement the solution selected. Compare and evaluate alternative solutions. REFERENCES : 1. Prentice Hall. Emphasizes expected results. 6th and. Choose among alternative solution.F. Prentice Hall. Explain the step use in decision making?. Search for alternative solutions Seeking additional information. 3. James A. thinking creative. Decenzo. 2. Stoner. Management. Daniel R. 4 5..
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. student will be able to: 1. LEADERSHIP 57 .LEADERSHIP 7. 3.4 7. 5. 4. PATH GOAL THEORY Learning objectives : After completing this chapter.1 7.5 7.7 7. Define what is leadership Explain the importance of leadership in organization Recognize several theories of leadership .2 7.3 7. Identify several leadership styles practice in organization. Familiarize with factors that influence managerial style.6 7. 2.0 7.
charisma.2nd edn) Four important facts are: 1) 2) 3) Involves people. Involve unequal distribution of power between leaders and group members Involves the ability to use the different forms of power to influence. management.employer and employees. John.. 6th edition) The process of directing human resource efforts toward organizational objectives ( Schermerhorn. 8. decisiveness. ( stoner. Management for productivity. integrity and self confidence. and 8. Prentice Hall. Qualities such as intelligence. enthusiasm.F. 5) About values – Moral. - 58 . strength. Leaders have certain inborn personality or leaders are born with certain characteristic. referent.8. reward. bravery. J.2 Trait theories of Leadership: The average person’s definition of leadership are : Evaluation and selection of leaders are based on their physical. John Wiley and Sons. R . expert power and legitimate power or authority. New Jersey. mental and psychological characteristics.0 Definition : Process of directing and influencing the tasks related activities of group members.A. obligation responsibilities towards employees.1 1) 2) 3) 4) Importance to organization Make contribution to organization Enhance and elicit cooperation Encourage teamwork Motivate employee to generate good work.
g agreeing the work performed by his/ her workers practice empathy or sensitive to her/his subordinate’s feeling. Help the group to operate smoothly. Traits can be gained leaders through learning process Traits of Effective leaders and nonEffective leaders Does not depend upon particular set traits..leaders. personality managerial supervisory ability. self assurance and ability. E. RESULT Traits of leaders and non. factors. The traits theory failed to isolate prominent traits to distinguish between leaders and non.Set of Traits that differentiate leaders: Traits of leaders and non. It depends on how well the traits match the requirement of the situation that / she is in. Physical appearance. offering information. opinion. 8. behavior/attitude.4 LEADERSHIP FUNCTION: Considered to be effective when practices these functions: Task related/ problem solving function. charisma. Group maintenance/ social function.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 . Two aspects of leadership behavior : Leadership function Leadership styles 8.leaders Traits of effective leaders and noneffective leaders. An effective leader must performs both functions simultaneously. E.leaders Cannot point out the differences between of leader and followers. mental Intelligence.g suggesting solutions. counseling.
8. This show high amount of consideration towards employee’s ideas and feelings. Characteristic of Manager: Warmth and has special rapport with subordinates. Employee oriented/ people centered.6 MANAGERIAL GRID ( leadership grid) Developed by Robert Blake and Jane Mouton. 60 . Trust and respect are developed. Respect. Concern on getting the job done to her / his satisfaction rather than develop or employee growth. sensitivity to other’s needs and mutual trust.5 LEADERSHIP STYLES : Generate into two different leadership styles : 1. Encourage to participate in decision making. It concern for both employeeoriented and task oriented styles of leadership to be practiced simultaneously. - Task oriented function/ production centered. Plan and defines work to be done Assigns task responsibilities Sets clear work standards Urges task completion and monitor results Supervise employee. 2. Managers try motivate rather than control the employees. 8.
9) 5.1 Impoverished management Country club management Middle of the road Autocratic/ authoritarian/ management (9.1) Little concern for either production.fair people or Full attention to people’s need but low concern for production.5 9. management.9) Concern For people (9.9 Team/ High concern for people and production participation/democratic/supportive relationships. Leaders want work schedule to be followed at all costs.Laissez. Moderate concern for people and production Task High concern for production and low concern for people.The Managerial Grid High ( 1.1 1. Work accomplishment.1) Concern for production Managerial grid identifies five leadership behaviors :1. ( Democratic) 61 . Managers concern for feeling and interests of the group members.9 5. ( Autocratic) 9.5 (1.
employee’s characteristic. Source for rewards.1 Path goal model Life.cycle or situational approach. Increase goal attainment Clearly defines job requirements. self control and experience.g leaders give directive. E. Result from theory: No one leadership style appropriate in all situations. House Leader : - Leader : Make valued or desired Must change style of leadership rewards. Identify which style is most important at any circumstances. open minded. 62 . participative and achievement oriented.member relationship. assist employees. PATH GOAL THEORY Life – Cycle theory or situational approach ( by Paul Hersey and Kenneth Blancard) Path goal Model – By Robert J. supportive. It tries to identify : Find out whether there is any leadership style appropriate in particular situation.7. provide training. Predict leadership style that will be most effective. experience. .7 CONTINGENCY APPROACH/ SITUATIONAL APPROACH Focuses on situational factors influencing managerial style. Two leadership models developed: 1) 2) 8. Employees attributes ability. kind of behavior Behavior will contribute to employees satisfaction. position power. organization culture and policies. according to level of maturity of employees Clarify to employees the and demands of situation. expectation. Leadership behavior depends on situation such as leader.8. task structure.
7. 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.g Recognition and praises. Making the path to rewards easier through coaching and direction. 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 .2 LIFE –CYCLE OR SITUATONAL APPROACH Developed by Hersey and Kenneth Blanchard. E. Increasing rewards to employees who achieve goals. b) c) d) 8. Reducing frustration barriers to reach goals.g leader replace new equipment. e. E. helping them to reaching goals.g training.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.
2. possess a high level of task maturity. Amount of task behavior that the leader shows ( horizontal axis) ( e. Managers reduces the need for task relationship and continues to give emotional support and consideration to increase employees level of responsibilities. They are self directed and are able to exercise self control. Being motivated to assume more responsibility. 2. Phase 2 (HT/HR) – Selling Employee are learning to do the job. They no longer need high level of supportive or task behavior from their leaders/ managers. The willingness and ability to accept responsibility The education/ experience and skills relevant to particular tasks. They are skilled and experienced and motivated to assume more responsibility. 1. A desire for achievement.Telling Leader use one way communication. 3. High task relationship is needed because employee lack of experience and skills. Phase 4 (LR/LT) – Delegating Highest level of employee maturity. Defines the goals and roles of employees and tell what. E.The diagram shows the relationship between : 1. how and where to do task. 2. 3. 4. controlling and monitoring) The amount of relationship behavior the leader provides ( Vertical axis) ( e.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. Maturity means : 64 . More experience and skilled as well as achievement oriented.g employee relatively new and in experiences. Explanation : 1. Employee lack of task relevant maturity.Participating Employee show maturity in performing tasks. Phase 1 ( HT/LR). Managers provide high level of emotional support and encouragement to develop trust and confidence . 3. Phase 3 (HR/LT). guidelines.
Premeaux. Robert Blake and Jane S. The managerial grid III. Management 6th edn 2001. 3. Mouton. Management Concepts. 65 . Stephen P. Robbins. Practices and Skills. what leadership style you may practice? In what way leader can increase productivity?. Allyu and Bacon. Wayne. 3. R. Shane R. Discuss the relationship between leadership and management? If you a boss in any organization. Prentice Hall. 2. 2. REFERENCES : 1.1985 Houston : Gulf Publishing. 6th edn 1993. Mondy.ACTIVITY 1.
2 9. Understand and apply contemporary theories of motivation. 2. 66 .1 9. Explain the concepts of motivation and its significance in the managerial process.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.CHAPTER NINE OVERVIEW MOTIVATION: 9.0 9.
3.3. respect. employees. 9. Encourage your subordinates to set performance goals that are specific.0 DEFINITION : The willingness to put forth effort in pursuit of organizational goals. People need organization to achieve goals and organization needs people to achieve its goals. Be sensitive to the differences in needs and values. recognition or achievement. EARLY VIEWS OF MOTIVATION 67 .9. 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. manager. Increase your employees expectations that their efforts lead to effective performance. challenging and attainable.Individual. Good motivation practices will help leaders and managers: 1. Management. Efforts are forces to perform. ( R Wayne Mondy.1 Motivation process. 4th edition) tangible – higher pay. bonus and benefits Intangible – reputation. This lead to effective and efficient organization. 2.
There are three early views of motivation. Allow 3. Human Resources Model 1.Manager should closely supervise make each worker and control feel useful subordinates. 2. Taylor and Scientific Management. learned operations.Manager must subordinates break down task informed and into simple. The Human Relation Model.Manager make use of under utilized human resources. They are :1. Management policies 1. 2) Need to belong 2) What people do to a group.Manager should 1. self direction or self control. is less important organization to be rather than what recognized. 1. 3. distasteful to most people. self direction and self control than their present job demand.People want to contribute to meaningful goals. 2. Traditional Model Assumes Human Relation Model 1) Work us 1)People want to inherently feel useful. 3. 2. Associated with Doughlas Mc Gregor’s Theory X and Theory Y. Most people exercise more creativity.Should keep 2.Create environment where members can contribute. associated with Frederick W. encourage participation. The traditional model. full 68 . which related to Elton Mayo and Hawthorne studies. 3. they learn for doing it. 2. easily objectives. 3) Few people want to work to involve in work that requires creativity. The Human Resources Model. listen to their repetitive. Must establish subordinates to detailed work exercise self routine and control and self procedures direction on routine matters.
people are closely controlled they will produce work that is up to standard. 9.People can tolerate work if pay is decent and boss is fair. A person will be motivated when she or he has not yet attained satisfaction with their life. vise versa. This is because people are different in nature. 1. Work satisfaction may improve as a ‘ by product” of subordinates making full use of their resources. This means behavior with positive consequences tends to be repeated. If tasks are simple.) 9. 2.1 HIERARCHY OF NEEDS 69 .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. ( Herzberg two factors theory/ hygiene theory) C) REINFORCEMENT THEORY Describes how people learn patterns of behavior based on environmental reinforcements. 2.( Theory X and Y.General expectations 1. particularly with regard to work.4. ( 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. Sharing information with subordinate and involving them in routine decisions will satisfy their basic needs to belong and to feel important.Expanding subordinates influence self direction and self control will lead to direct improvement. 1. Need vary among individuals.
Introduced by Abraham Maslow. achievement as well as prestige and status. E. Social needs or “ Belongingness” Need for companionship. These needs are arrange in a hierarchical order . Self esteem needs It is also known as growth need. It is a need for self-esteem and self growth. They are the lower order needs and the higher order needs. Examples are job security. freedom from coercion and a need for clearly defined regulations. Self. and shelter from environment 2. or need for personal “ belongingness”.g food. opportunities for advancement.g are love. He states that all people possessed a set of five needs in them. Safety or security needs Deals with our physical and psychological safety from external threats. need to love somebody as well as the need for social interaction. recognition. 70 . Self – Actualization needs 3. 5. water. 4. Physiological needs These need are our basic needs. These are for our survival. E. E.g are respect from others.actualization needs higher order Self-esteem needs Social needs Safety needs Physiological needs lower Order needs 1.
such as changing the rule. It associated with job context. Improving them. The factors are: a) HYGIENE FACTORS Also known as dissatisfier factor. From the study. It causes feeling of job dissatisfaction. Satisfier causes feelings of satisfaction.2 TWO FACTOR THEORY Introduced by Frederick Herzberg by studying the job attitudes of 200 engineers and accountants .It comprises needs for the development of one’s full potential or the realization of one’s own potential. 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. Often called as job content. it was concluded that individuals’ work satisfaction and dissatisfaction arise from two different sets of factors. It associated with the work setting of an individual. 9.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. The absence of one does not affect the other. 71 . 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. Satisfier factor is related to the job content of individuals. Hygiene factor only affects job dissatisfaction.4.
the managerial implications associated with the two factor theory are: 1. managers need to turn their attention away from hygiene factors and focus on improving satisfier factors. Improvements made in the satisfier factors can increase job satisfaction.The factors that will contribute to employee’s satisfaction will be the satisfaction factor. Having to be pushed by managers to work. 9. 5. Coercive power will be used.4. Here managers have a traditional or a pessimistic view of motivation with regard to employees. Capable of directing themselves ( self direction) Capable of self –control Frequently using imagination. 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. 2. have to apply the autocratic style of leadership where the employee have to be constantly directed and controlled. ingenuity and creativity in accomplishing tasks. 7. 4. Willing to accept responsibility. 4. 2. However they will not prevent job dissatisfaction. 5. since work brings satisfaction. 6. To motivate. view their employees in terms of the following characteristics: 1. Therefore. This theory describes the views or perception of managers with regard to their employees. they will not improve job satisfaction. Theory Y managers. work is as natural as play or rest. 3. These managers in order to make sure that their employees do their work. Willing to work. 72 .3 THEORY X AND THEORY Y This theory was developed by Douglas Mc Gregor. 2. 3. However. Improvements made in the hygiene factors can prevent or eliminate job dissatisfaction. Managers of theory X view the employees in terms of the following characteristics: 1. 8.
where employees are allowed more participation. John Wiley and Sons. Prentice Hall. and Gilbert. (1990). managers need only to apply the participative style of leadership. REFERENCES : 1. Holt. 2. 2. Daniel Jr. freedom and responsibility in their work. John R.F. 3rd edn. Petri. ACTIVITY 1.C.A. New Jersey. David H. 1995. 3. 6th edn. Theory. 4. Freeman. What can you do to motivate your staf?. Belmont. Stoner. Research and Application 3rd edn.. 73 .1993.. Schermerhorn. Discuss how Herzberg two factors theory help in motivating employees? If you a manager. To ensure high performance.Theory T is optimistic view.. H.L. Greater job autonomy and task-variety is offered to employees. Management. Prentice Hall.A: Wadsworth Publishing. Principles and Practices.Management. Motivation. J.. Theory Y manager will delegate the authority and allow employees to participate in decision making. Management for Productivity. 2nd edn. Edward R..
Overcoming barriers to effective communication. Explain the communication process Explain different channels of communication. 6. 2. 5. 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. 4. 3. Define what is communication Understand the importance of effective communication. 74 . 4. 2. 5. student will be able to : 1. 3.CHAPTER TEN OVERVIEW COMMUNICATION 1.
4. reports and newsletters. Assist managers coordinating and integrating the work groups. 5.0 DEFINITIONS : Webster’s dictionary “ the arts of expressing ideas”. bringing in with exchange. Employees need information to conduct tasks. 75 .1 IMPORTANCE OF EFFECTIVE COMMUNICATION Convey information Giving instruction/ commanding action Persuading or influencing change 1. 2. Organizational communication. by speech. knowledge etc.COMMUNICATION 10. OR Oxford English dictionary – Imparting. Process of sending and receiving messages among individuals and groups called interpersonal communication. Discuss face to face meeting. 10.. 3. In leading and motivating managers need to inform employees of doing the right tasks. Management function. conveying or exchange of ideas.PLOC requires effective communication. letters. In organization – Disseminating of information through memos. Everyone in the organization need to be informed of the objectives and goals of the organization. The science of transmitting information. writing or sign. allocating and correcting mistakes. OR The process by which people seek to share meaning via the transmission of symbolic messages.
10.The receiver’s thought process on getting The message. From in which the message is.in what way -----to whom----with what effect. 76 . E.g that course is full. E. 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. Person who receive the information. So that the receiver gets a different message from the one that was sent e.2 COMMUNICATION PROCESS Classic model of communication developed by Shannon based on fine questionwho—says what---.g switch board Operator.g spoken English . The telephone The information itself as encoded by the sender.Managers is considered effective in his instruction when employees acts according to instructions.g incomplete information. E. The element of the receiver’s response which the receiver communicates to the sender. Interpretation.g I’m looking for a place on PR course. Any kind of interference which results in distortion. E.
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 .g policies. INFORMAL COMMUNICATION Grapevines between individuals and groups can be job related or personal. Information can be accurate/ inaccurate Four types of chains show how individuals convey information.10. b) Lateral communication Horizontal communication at the same level. Convey info to their superior. procedures.3 FORMAL COMMUNICATION Information flows around organization whether or not they try to control it. rules. a) Vertical communication: Downward. Upward – through suggestion schemes or some other form of feedback to management.In the form of instruction and information e. work schedules.
Received by or used by large number of people ( postal service. 8. 10. Effective employee performance Manageability Sharp. usually in decision making setting. Group communication Relates to the interaction of people in a small groups. Mass Communication Deals with public communication . 6. 3. 1. 3. 2. 4. internet etc) 4.end feedback Motivation Team spirit Crisis preparation Participative staff Good relation with its public 78 .4 LEVEL OF COMMUNICATION 1.10. Intrapersonal communication Between you and god Interpersonal communication Deals with communication between people usually face to face. 5. 2. Organizational communication Occurs in large cooperative networks and include virtually all aspects of both interpersonal and group communication.5 ORGANIZATION INVEST IN COMMUNICATION FOR SOUND BUSINESS REASON. 5. 7.
7 Barriers to effective listening 1.10. defensive. 79 . letters. newsletter. bulletin boards. speed up exchanging ideas and get direct feedback. jealousy. 2. NON-VERBAL COMMUNICATION Means of gestures and to express feelings and emotions. hand gesture. voice tone. clothing. Verbal face to face. use role playing. fax. Noise Factor interferes. Poor listening Semantic Certain words may be interpreted differently by different people. use mirroring to establish rapport. 5. 3. avoid using the same non verbal. memo. posture. fear. use facial. embarrassment and enthusiasm. Credibility of the sender Associated with person’s feeling of love. positive and acceptable to the receiver. Face expression and movement. confuse or disturb the messages from reaching the receiver. body placement. hate. hand and body gesture to supplement speech. 4.6 Improving The Comunication Process VERBAL COMMUNICATION Spoken words. Info well kept. anger. 10. dress and appearance Obtain feedback. mail. easy to retrieved. learn to relax when communicate. writing letters. Filtering Alteration of information to make it interesting. It is in form record and evidence.
Modify language and use words appropriate. Obtain feedback Ask question. Send message in an effective way a. rational and trust Instill an atmosphere of openness. repeat message. 8. 7. clothes. Understand verbal and non.verbal communication Facial expression. Use simple language Technical terms must be clearly explained Recognized emotions Empathy Do not make own conclusion Listen to all issues carefully Avoid noise Identify it cause or sources. postures and gestures.10.Plan and clarify ideas before communicating b.8 OVERCOMING COMMUNICATION BARRIERS 1. 80 . Create openness.Use bias free language d. visit site. 5.Be specific c. 6. 3. 4. 2.
F. For what reason organization invest in communication?. 2... organization overcome ineffective communication process. Management.ACTIVITY : 1. Principles and Practices. Freeman. Daniel Jr. 2. Effective communication importance to organization. Explain the important of the two communication channels in organization?.A.1993. 2nd edn. 6th edn. 1995. Prentice Hall. John Wiley and Sons. New Jersey.. David H. John R. 81 . 3. J.. and Gilbert. Holt. Management for Productivity. Prentice Hall. Management.. Schermerhorn. Discuss how REFERENCES : 1. Edward R. 3rd edn. Stoner. 3.
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