Professional Documents
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Chapter 5 - Org & HRM
Chapter 5 - Org & HRM
Planning to the future, the manager develops a strategy for getting there.
This process is referred to as strategic planning.
Organizing is the managerial function of making sure there are
available the resources to carry out a plan.
Controlling ensures that, through effective leading, what has been planned
and organized to take place has in fact taken place. Three basic components
constitute the control function:
Elements of a control system
Evaluating and rewarding employee performance
Controlling financial, informational, and physical resources.
These all managerial functions are necessary and are related and interrelated
to each other.
Most people think of three basic levels of management: top, middle, and first-line
managers.
Top managers are responsible for the overall direction and operations of an
organization. Particularly, they are responsible for setting organizational goals,
defining strategies for achieving them, monitoring and implementing the
external environment, decisions that affect entire organization. They have
such titles as chief executive officer (CEO), president, chairman, division
president, and executive vice-president. Managers in these positions are
responsible for interacting with representatives of the external environment
(e.g., important customers, financial institutions, and governmental figures)
and establishing objectives, policies, and strategies.
Middle managers are responsible for business units and major departments.
Examples of middle managers are department head, division head, and
director of the research lab. The responsibilities of middle managers include
translating executive orders into operation, implementing plans, and directly
supervising lower-level managers. Middle managers typically have two or
more management levels beneath them. They receive overall strategies and
policies from top managers and the translate them into specific objective and
programs for first-line managers.
First-line managers are directly responsible for the production of goods and
services. Particularly, they are responsible for directing nonsupervisory
employees. First-line managers are variously called office manager, section chief,
line manager, supervisor.
Management is needed in all types of organized activities. Moreover, management
principles are applicable to all types of organizations, including profit-seeking
organizations (industrial firms, banks, insurance companies, small business, etc.)
and not-for-profit organizations (governmental organizations, health care
organizations. educations organizations, churches, etc.).
Any group of two or more people working to achieve a goal and having resources at
its disposal is engaged in management. Obviously, a manager's job is somewhat
different in different types of organizations, exists in unique environments, and uses
different technology.
However, all organizations need the common basic activities: planning, organizing,
leading, and controlling.
�For an important starting point, all ten rules are vested with
formal authority over an organizational unit. From formal
authority comes status, which leads to various interpersonal
relations, and from these comes access to information, which,
in turn, enables the manager to make decisions and strategies.
�* The leader role. This role involves leadership� directly (e.g., the manager is
responsible for� hiring an training his own staff). The leader role
encompasses relationships with subordinates,� including motivation,
communication, and influence.
�* The liaison role, in which the manager makes� contacts inside and outside
the organization with a wide range of people: subordinates, clients,� business
associates, government, trade� organization officials, and so on.
�The processing of information is a key part of the manager's job. Three
roles describe the informational aspects of managerial work:
�* The monitor role. This role involves seeking� current information from
many sources. For example, the manager perpetually scans his
environment for information, interrogates liaison contacts and
subordinates and receives unsolicited information.
�* The negotiator role. The negotiations are duties of the manager's job. These
activities involve formal negotiations and bargaining to attain outcomes for
the manager's unit responsibility.
These ten roles are not easily separate: "No role can be pulled out of the
framework and the job be left intact". However, this description of
managerial work should be important to managers: "...the managers'
effectiveness is significantly influenced by their insight into their own work"
(L. Gulick).
The best response to the question of whether management is an art or a
science is that it is both. �
On the other hand, the organized knowledge underlying the practice may
be referred to as a science.�To perform at high levels in a variety of
situations, managers must be able to draw on the sciences - particularly
economics, sociology, mathematics, political science, psychology, and
political science - for assistance and guidance.
Hari Das said, that "an organization is an abstract social entity." Social entity is "a
structured group of two or more people brought together to achieve certain
objectives".
All formal organizations use specific knowledge (or technology) to perform work-
related activities.
Officials goals. These goals are the formally stated goals of an organization
described in its charter and annual reports and they are emphasized in
public statements by key executives.
�* Operative goals are the outcomes that the� organization actually seeks to
attain through its operating policies and activities.
�* Output goals. These goals are the "end product," such as consumer
products, services, health care, or education.
�* System goals. System goals relate to the� organization itself, and they
consist of such things as growth, stability, profit, efficiency, market share.
�* Product goals. Product goals consist of the� characteristics of the goods
or services, such as quality, styling, uniqueness, variety, and price.
* Derived goals refer to the way an organization uses its power and influence
to achieve other social or political goals (such as employee welfare,
community services, or political aims).
Henry Minztberg has provided a different classification of goals:
�* System goals. There are four system goals: survival, efficiency, control,
and growth.
�* Formal goals. Formal goals are used by managers to tell everyone what
they are doing.
�* Ideological goals. These goals are what the people within the
organization believe in.
�* Shared personal goals. These goals are what people within the
organization come together to accomplish for their mutual benefit.
For most organizations, goals are constantly changing and members of the
organizations must respond appropriately, by formulating new goals as
well as deciding which goals will be accomplished, and in what order.
The organization is where resources come together.
The more resources wasted during the production process, the more
inefficient the manager. If organizations are using their resources to attain
their goals, the managers are effective.
2. Job Design:
o Job Specialization
o Job Expansion
o Psychological Component
o Self direct team
o Motivation and incentive systems
Ergonomics & Work Environment
3. Labor Standards:
o Historical Experience
o Time Studies
o Pre-determined time standards
o Work Sampling
Employment Stability Policies
Follow demand exactly
Matches direct labor costs to production
Incurs costs in hiring and termination,
unemployment insurance, and premium
wages
Labor is treated as a variable cost
Employment Stability Policies
Hold employment constant
Maintains trained workforce
Minimizes hiring, termination, and
unemployment costs
Employees may be underutilized during
slack periods
Labor is treated as a fixed cost
Work Schedules
Standard work schedule
Five eight-hour days
Flex-time
Allows employees, within limits, to determine their own
schedules
Part-time
Fewer, possibly irregular, hours
Specifying the tasks that constitute a
job for an individual or a group
1. Job specialization
2. Job expansion
3. Psychological components
4. Self-directed teams
5. Motivation and incentive systems
Jobs should include the following
characteristics
Skill variety
Job identity
Job significance
Autonomy
Feedback
Self-directed
teams
Increasing
Empowerment reliance on
employee’s
Enrichment contribution
and increasing
Enlargement
responsibility
accepted by
Specialization employee
Job expansion
Fairness, equity, and ethics are important
constraints of job design
Important issues may relate to equal
opportunity, equal pay for equal work, and
safe working conditions
Helpful to work with government agencies,
trade unions, insurers, and employees
The amounts of time required to perform a
job or part of the job
Modern Labor Standards Originated with
the work of Frederick W. Taylor and Frank
& Lillian Gilberth during 20th century.
Effective operations requires
meaningful standards that help firm
to determine:
• Labor content of items produced
• Staffing needs
• Cost and time estimates
• Crew size and work balance
• Expected production
• Basis of wage incentive
• Efficiency of employees and supervision
Historical experience
Time Studies
Predetermined time standards
Work Sampling
Ergonomics is the study of the
interface between man and
machine
Often called
human factors
Operator input
to machines
Feedback to operators
The work environment
Illumination
Noise
Temperature
Humidity
Figure 10.4
Task Condition Type of Task Illumination Type of
or Area Level Illumination
Small detail, Sewing, inspecting 100 Overhead
extreme dark materials ceiling lights
accuracy and desk lamp
Normal detail, Reading, parts 20-50 Overhead
prolonged assembly, ceiling lights
periods general office
work
Good contrast, Recreational 5-10 Overhead
fairly large facilities ceiling lights
objects
Large objects Restaurants, 2-5 Overhead
stairways, ceiling lights
warehouses
Table 10.2
Environment Common Noise
Noises Sources Decibels
Jet takeoff (200 ft) 120
|
Electric furnace area Pneumatic hammer 100 Very annoying
|
Printing press plant Subway train (20 ft) 90
|
Pneumatic drill (50 ft) 80 Ear protection
Inside sports car (50 mph) | required if
Vacuum cleaner (10 ft) 70 exposed for 8
Near freeway (auto traffic) Speech (1 ft) | or more hours
60 Intrusive
Private business office |
Light traffic (100 ft) Large transformer (200 ft) 50 Quiet
|
Minimum levels, Chicago 40
residential areas at night Soft whisper (5 ft) |
Studio (speech) 30 Very quiet
Table 10.3
Bonuses - cash or stock options
Profit-sharing - profits for distribution to
employees
Gain sharing - rewards for improvements
Incentive plans - typically based on
production rates
Knowledge-based systems - reward for
knowledge or skills
What Is Misconduct in the Workplace?
(a) Any employee as long as his month wages is less than RM2000.00
and