Professional Documents
Culture Documents
Muhammad Zeeshan(V!RUS)
Management
Definition:-
Management is the process of reaching organizational goals by
working with and through people and other organizational resources..
Characteristics:-
The following are the following three characteristics:
Functions of Management:-
The four basic management functions that make up the management process are
described in the following sections:
1. Planning
2. Organizing
3. Leading/Influencing
4. Controlling
Planning:-
Planning involves choosing tasks that must be performed to attain organizational
goals, outlining how the tasks must be performed, and indicating when they should
be performed.
People within the organization are given work assignments that contribute to the
company’s goals. Tasks are organized so that the output of each individual
contributes to the success of departments, which, in turn, contributes to the success
of divisions, which ultimately contributes to the success of the organization.
Influencing/Leading:-
Inspiring and motivating workers to work hard to achieve organizational goals.
Controlling:-
Controlling is the following roles played by the manager:
Terms of Management:-
There are two terms of Management:
1. Efficient Management
2. Effective Management
Efficient Management:-
It is that term of Management which achieves the organizational goals in a given
period of time by the usage of all the resources by working with and through the
people
Effective Management:-
It is a term of Management which achieves the
organizational goals before the given period of time with the usage of minimum
resources by working with and through the people.
Types of Management:-
There are three types of Management:
1. Top Managers.
2. Middle Managers.
3. Lower Managers.
Top managers:-
This is the type of management who do the following duties in
an organization:
Usually the Board of Directors and M.D are counted in Top Managers.
Middle Managers:-
These are the type of managers who have direct contact with
both the top managers as well as the lower manager. Thus we can say that they
form a chain between top managers and lower managers. The deputy director is
called Middle Manager. The middle manager does the following tasks:
1. The Middle managers take the policies from the Top managers and bring
them to the lower managers.
2. The Middle manager read the problems of the Lower manager and discusses
those problems with the Top managers.
3. The contribute from about 20 to 25% in policy making with the Top
manager
Lower Managers:-
These are the managers who are in direct contact with the
employees. They are also in contact with the middle manager. So we can consider
the Lower Manager as a chain between employees and Middle manager. The
supervisors are called as the Lower managers. The Lower manager does the
following tasks:
Types of Roles:
There are three types of Roles which are performed by the Managers.
Roles refer to the types of action.
1. Decisional Roles:
The actions which are done by the top managers are
called decisional roles. In these actions the top managers make decisions.
2. Impersonal Roles:
The roles which are performed by the Middle Managers
are called Impersonal roles. In this type of roles the managers take the policy
from top managers and give the policy to the Lower managers.
3. Informational Roles:
The Roles which are performed by the lower
managers are called informational roles. In this type of roles the managers
gives information to the employees about the business tasks. The one who
performs the informational roles are called leaders or figurehead.
Managerial skills:-
Managers need three types of key skills to perform the duties and activities
associated with being aManager.
1. Scientific Management.
2. Bureaucratic Management.
3. Administrative Management.
Scientific Management:
Scientific management is defined as the use of the scientific method to define the
“one best way” for a job to be done.
4. Unity of Command:
An employee should receive orders from one superior only.
5. Unity of direction:
The organization should have a single plan of action to guide managers and
workers.
6. Subordination of individual interests to the general interest:
The interests of any one employee or group of employees should not take
precedence over the interests of the organization as a whole.
7.Remuneration:
Workers must be paid a fair wage for their services.
8. Centralization:
This term refers to the degree to which subordinates are involved in decision
making.
9. Scalar Chain:
The line term refers to the degree to which subordinates are involved in decision
making.
10. Order:
People and materials should be in the right place at the right time.
11. Equity:
Managers should be kind and fair to their subordinates.
12. Stability of tenure of personnel:
Management should provide orderly personnel planning and ensure that
replacements are available to fill vacancies.
13. Initiative:
Employees who are allowed to originate and carry out plans will exert high levels
of effort.
14. Esprit de corps:
Promoting team spirit will build harmony and unity within the organization.
Behavioral Theory of Management
Behavioral Viewpoint:
Organizational behavior (OB) research has contributed much of what we know
about behavioral views of management, human resources management, motivation,
leadership, trust, teamwork, and conflict management.
The insights derived from systems theory have helped to highlight the importance
of a managed interaction between an organization and its external environment.
Two major divisions have been made in the external Environment:
Organizational Culture
Organizational culture is a system of shared meaning and beliefs within an
organization that determines, in large degree, how employees act. This definition
implies several things.
The organizational culture has the following seven dimensions:
1. Innovation and risk taking (the degree to which employees are encouraged
to be innovative and take risks)
2. Attention to detail (the degree to which employees are expected to exhibit
precision, analysis, and attention to detail)
3. Outcome orientation (the degree to which managers focus on results or
outcomes rather than on the techniques and processes used to achieve those
outcomes)
4. People orientation (the degree to which management decisions take into
consideration the effect on people within the organization).
5. Team orientation (the degree to which work activities are organized around
teams rather than individuals).
6. Aggressiveness (the degree to which people are aggressive and competitive
rather than easygoing and cooperative).
7. Stability(the degree to which organizational activities emphasize
maintaining the status quo in contrast to growth).
Social Responsibility:
The social responsibility refers to protect and develop the
standard of living of society with the earning of profit. But the time has been
changed now. In this era there are two views of social responsibility.
1. Classical view.
2. Social economic view.
Classical view:
Classical view is the view that management only social
responsibility is to maximize the profit.
Socio-economic view:
The socio economic view is the view that management’s
social responsibility goes well beyond the making of profits to include protecting
and improving the society’s welfare.
There are ten major arguments for the social responsibility, they include the
following:
1. Public expectations.
2. Long-run profit.
3. Ethical obligation.
4. Public image.
5. Better environment.
6. Discouragement of further government obligation.
7. Balance of power and responsibility.
8. Stock holder interest.
9. Possession of resources.
10.Superiority of prevention over cures.
While there are major six arguments against the social responsibility:
1. Violation of profit maximization.
2. Dilution of profit.
3. Costs.
4. Too much power.
5. Lack of skills.
6. Lack of accountability.
Corporate Social Responsibility (CSR):
CSR is that part of a business
organization which perform the non-profit activities for the development of
society.
Managerial Ethics:
Ethics refers to the rule and principle that define the right and
wrong conduct.
There are ethical dimensions to managerial decisions and actions:
1. Utilitarian view of ethics.
2. Right view of ethics.
3. Theory of Justice View of ethics.
4. Integrative social contract theory.
Planning:
Planning is the process/function that determine in advance that what should be
done.
Nature of Planning:
1. Planning is a mental activity. Planning is not a simpleprocess. It is an
intellectual exercise and involves thinkingand forethought on the part of the
manager.
2. Planning is forward looking. It is futuristic in nature since it is performed to
accomplish some objectives in the future.
3. Planning is the primary function. The planning logically precedes over the
all other managerial functions.
4. Planning is based on facts.
Types of planning:
There are three types of planning:
1. Group planning.
2. Divisional or Functional planning.
3. Strategic Planning.
i. Group planning:
It refers to the planning for the specific groups or
sections within a department or division.
1. Job design:
Job designis the specification of task activities, usually repeated on a regular basis,
associated with each particular job.
2. Work specialization:
Work specializationis the degree to which the work necessary to achieve organizational
goals is broken down into various jobs. In Work specializationthe tasks in an organization
are divided into separate jobs. Another term for this is division of labor.
3. Job simplification:
Job simplification is the process of configuring or designing jobs so that job holders
have only a small number of narrow, repetitive, activities to perform.
Departmentalization
Definition:
Departmentalization is the clustering of individuals into units and units into departments and
larger units in order to facilitate achieving organizational goals.
1) Functional structure:
Functional structure is a type of departmentalization in which positions are grouped according to
their main functional (or specialized) area.
Advantages:
a. In-depth development of expertise is encouraged.
b. Employees have clear career paths within their function.
c. Resources are used more efficiently.
d. Economies of scale may be possible because of specialized people and equipment.
e. Intradepartmental coordination is facilitated.
f. Specialized technical competencies may be developed and may constitute a
competitiveadvantage.
The functional structure has also some disadvantages:
Disadvantages:
a. Response time on multifunctional problems may be slow due to coordination
problems.
b. Major issues and conflicts between departments may have to be resolved by top
management, with resultant delays.
c. Bottlenecks due to sequential tasks.
d. Over specialization may lead to a restricted view of the department’s and the
organization’s needs.
e. Performance may be difficult to measure because several functions are responsible
for organizational results.
f. Managers may be trained too narrowly in a single department.
2) Divisional structure:
Advantages:
a. Divisions can react quickly to changes in the environment.
b. Coordination across functions is simplified.
c. Each division can focus upon serving its customers.
d. The division’s goals can be emphasized.
e. Performance is more easily measured.
f. Managers can be trained in general management skills.
Disadvantages:
a. Duplication of resources in each division often occurs.
b. In-depth expertise may be sacrificed.
c. Divisions may compete for limited resources.
d. Expertise across divisions may not be shared.
e. Innovations may be restricted to single divisions.
f. Divisional goals may take priority over overall organizational goals.
Hybrid structure:
Hybrid structure is a form of departmentalization that adopts parts of both functional and
divisional structures at the same level of management.
Hybrid structures are adopted by large organizations to gain the advantages of functional and
divisional structures.
Hybrid structures are adopted by large organizations to gain the advantages of functional and
divisional structures.
a. Functional departments are created to take advantage of resource utilization
efficiencies,economies of scale, or in-depth expertise.
b. Divisional departments are usually created to benefit from a stronger focus on products,
services, or markets.
Matrix structure:
A matrix structure is a type of departmentalization that superimposes a
horizontal set of divisional reporting relationships onto a hierarchical functional structure.
1. An organization with a matrix structure has a functional and a divisional structure at the
same time.
2. Employees who work in a matrix organization report to two “bosses,” thus, the unity-of
command principle is violated.
The following are the main advantages of matrix structure:
Advantages:
a. Decision making can be decentralized.
b. Horizontal coordination is strengthened.
c. Environmental monitoring is more improved.
d. Responses to environmental changes are quickly made.
While the matrix structure has also some disadvantages.
Disadvantages:
a. Administrative costs are increased.
b. Possibilities of conflict are increased.
c. All decisions may become group decisions, leading to gross inefficiency.
Job Rotation:
Job rotationis the practice of periodically shifting workers through a set of jobs in a planned
sequence.
Job enlargement:
Job enlargement is the allocation of a wider variety of similar tasks to a job in order to make it
more challenging.
Job enrichment:
Job enrichment, pioneered by Frederick Hertzberg, is the process of upgrading the job-task mix
in order to increase significantly the potential for growth, achievement, responsibility, and
recognition.
1. Physiological needs:
Theseare the basic need and include needs for food, water, and shelter. Maslow took the
position that until these needs are satisfied to the degree necessary to maintain life, other
needs will not motivate people.
2. Safety needs:
It pertains to the desire to be safe, secure and free from threats to our
existence. These needs can be satisfied in the workplace by job continuity, or retirement
benefits.
3. Belongingness needs:
Itinvolves the desire to affiliate with and be accepted by others.
These needs are satisfied for most people by family and community relationship outside
of work and friendship on the job.
4. Esteem needs:
Theseare related to the two-pronged desire to have a positive self-image
and to have our contributions valued and appreciated by others. According to Maslow,
once people begin to satisfy their need to belong, they tend to want to be held in esteem
both by themselves and by others this kind of need produces such satisfactions as power,
prestige, status and self-confidence.
5. Self-actualization needs:
Maslow regards this as the highest need in his hierarchy. It is
the desire to become what one is capable of becoming- to maximize one’s potential and
to accomplish something.
Douglas McGregor:
This theory was developed by Douglas McGregor and describes two distinct views of
human nature.
1. Theory X:
Itwas the assumption that employees dislike work, are lazy, seek to avoid
responsibility, and must be coerced to perform.
2. Theory Y:
It was the assumption that employees are creative, seek responsibility, and can exercise
self-direction.