Management

Chapter 1 (Managing the manager’s job) & Chapter 7 (Basic elements of planning and decision making)

Organization

• Group of people

• structure and coordinate fashion

• achieving a goal

Management

• A set of activities (planning and decision, organizing, leading, controlling)

• directed at an organization resources (human, physical, financial, informational)

• aim of achieving organization’s goal

Manager

• who coordinates and oversees the work of other people so that organizational goal can be achieved

Classifying manager

• Team leader
  • special kind of manager
  • who may be appointed for specific task

• First-line manager
  • individuals
  • who manage the work / (supervise or co-ordinate) of non-managerial employee

• Middle Manager
  • a large group
  • manage the work of first line manager

• Top Manager
  • Small group of executives
  • who manage the overall organization, the strategic plans, establishing plans and goals

The management Process / Function of a Manager

The management process is a system that combines all of an organization's activities to achieve its goals.

• Planning and decision making
  • setting goals and deciding how to achieve

• Organizing
  • determining how best to group activities and resources

• Leading
  • Motivating member of the org

• Controlling
  • correcting and monitoring employees

The Basic Managerial Roles

• Interpersonal

(The ability to communicate with, understand, motivation )

• Informational
  • Monitor : receives and collects information
  • Disseminator (A disseminator is a person or thing that spreads information or ideas to a large number of people or places.) : sharing information
  • Spokesperson (A spokesperson is a person who speaks on behalf of an organization, group, or individual. They are responsible for communicating with the public and the media, often delivering official statements or answering questions.)

• Decisional
  • Entrepreneur (An entrepreneur is a person who starts and runs a new business venture, typically taking on financial risk in order to do so.) : new project, new idea, delegate idea and responsibility to others
  • Disturbance handler : take correct action during crisis, resolve conflict
  • Resource Allocator: who will gets (what) resource, schedule, budget, priority
  • Negotiator : negotiates on behalf of the organization

Skills of a Manager

• Technical Skill
  • Knowledge and proficiency in a specific field
  • Specially important for first-line manager

• Interpersonal Skill
  • understanding people
  • ability to work effectively individual and a member of group

• Conceptual Skill
  • think in the abstract (ability to consider concepts beyond what we observe physically)
  • understand organizational goals, structure, viewing organization as system
  • analyze the environment and identify the opportunities

• Diagnostic Skill
  • visualize the most appropriate response to a situation

• Communication Skill
  • convey ideas and information to others
  • receive ideas and information from others

• Decision Making Skill
  • correctly recognize and define problems
  • select an appropriate course of action to solve problems and capitalize opportunities

• Time Management Skill

Nature of Managerial Work

• performs a great quantity of work at an unrelenting pace

• undertakes activities marked by variety, brevity and fragmentation

• has a preference for issues which are current, specific and non-routine

• prefers verbal rather than writing

• acts within a web of internal and external contacts

• is subject to heavy constraints but can exert some control over the work

The Nature of Management

Managing in different areas of a organization

• Human Resource Management
  • obtaining and maintaining of a satisfactory and satisfied work force
  • recruitment, orientation, training, promotion, motivation, salary, performance
  • Object: Create and promote team sprit among managers and workers

• Production Management
  • planning, organization, coordinating, direction and control of the production such a way that desired goods and services produced in right time, in right quantity and at the right cost

• Office Management
  • planning, design and implementation of work in office
  • the technique of planning, organizing, coordinating and controlling office activities with a view to achieve business objectives, efficient and effective office performance

• Financial Management
  • planning, organizing, directing and controlling the financial activities
  • strategic planning and managing organization’s finance to better align their financial status to their goals and objectives
  • three decision pertaining
    • Investment policies
    • Method of financing
    • Dividing Decision

• Marketing Management
  • process of planning, executing and tackling the marketing strategy
  • choosing target markets and getting, growing and keeping customers through creating, delivering and communicating customer value

Planning

• Planning is ascertaining prior to what to do and how to do. It is one of the primary managerial duties

• Planning managerial functions where managers are required to establish goals and state the ways and means by which these goals are to be attained.

(Planning is the process of selecting a future course of action, where Decision-making means selecting a course of action. Decision-making is a part of planning.)

Planning Process

• Setting up a objective (goal)
  • manager sets a goal

• Developing Premises
  • assumption regarding the future
  • policies

• Listing up various alternative
  • all the ways to achieve the goal

• Evaluating the alternatives
  • positive and negative aspects of each alternative (cost, risk, higher returns)

• Selecting an alternative
  • more profitable with minimum negative effects

• Implementation of Plan
  • plan into action
  • DOING WHAT IS REQUIRED
  • allocating resources, organizing, labour and machinery

• Follow Up
  • compare with predetermined plan
  • monitoring the plan

Goal

A goal is a result one is attempting to achieve.

Kinds of Goals

• Strategic
  • made to achieve and support the mission and vision of the company
  • set by organization leader

• Tactical
  • short-term goal
  • coordinate different department levels to take necessary step to contribute to the larger strategic goal

• Operational
  • focus on individual employee responsibilities

• Superordinate Goal
  • motivate individual across different departments, used to solve conflict, establishing relationship within company

Organizational goal

• Strategic Goal
  • set by and for top level management
  • long-term goal
  • from this goal to others goal are made

• Tactical Goal
  • set by and for middle manager (sometimes set by top level manager)
  • how to operationalize actions necessary to achieve strategic goals
  • various departments middle manager are responsible

• Operational Goal
  • set by and for lower level manager/first line manager
  • made to tackle shorter-term issues associated by with tactical goal

Why Organizational Goal is important

• Goals provide Guidance and Direction

• Goals intensely Planning and Actions

• Goals Motivate

• Goal help in Control

Organizational Planning

• process of
  • defining a company’s reason for existing
  • setting goals
  • creating discrete task to meet goal

Types of Planning

• Strategic

• Tactical

• Operational

• Contingency

Operational Planning

• Process of strategic plan to operational plan

• breaking down high level strategic goals and activities into smaller, actionable them

• coordinate different department and layers of management to achieve the objective

2 types of Operational Planning

• Standing Planning/Ongoing Plan
  • plans that are designed to use again and again
  • designed with long-term in mind
  • Advantages
    • it saves time because managers know in advance what to do certain circumstance
    • standing plan aid in work, because employees are already familiar with those procedure

• Single-Use plan
  • devised when a particular problem or time-specific problem needs to tackled
  • advantage : it can be very specific that how it be addressed in a particular situation

Decision Making

• process of making choice between two or more options

• choosing among alternatives

Process of Decision Making

• Establishing Objectives
  • specific goal/objective needs to be achieved within certain time-frame

• Identify the Decision
  • identifying the problem that needs to be addressed

• Gathering information and collecting data
  • surveys, interviews, focus groups, observation and secondary data(articles)

• Identify the alternatives
  • there are a number of different ways to identify the alternatives, but some of the most common methods include brainstorming, research, and consultation.

• Weigh the Evidence
  • taking time to consider all of the available information to make final decision

• Choosing among alternative

• Take Action

• Review the Decision

The nature of decision making

• Goal oriented process
  • aim at achieving certain specific goals of the organization

• Selection Process
  • selection process in which best alternative course of action is chosen from the given alternative

• Continuous Process
  • continuous process because a manager is required to take decisions continuously

• Art as well as Science

• Responsibilities of Manager

• Positive as well as Negative
  • positive (to perform certain activities) or negative (not to perform certain activities).

• Future course on action
  • Decisions are made for future course of action based on the basis of past experiences and present conditions.

Chapter 9 (Managing decision making and problem solving)

Decision Making

• The act of choosing one alternative from among a set of alternatives

Decision-Making Process

• The process of recognizing and defining the nature of a decision situation, identifying alternatives, choosing the best alternative and put it into practice

• optimizes some set of factors such as profits, sales, market share

• Managers make decision about both problems and opportunities

Type of Decisions

Type 01:

• Programmed Decision
  • fairly structured decision or recurs with some frequency or both

    Example : Going to class regularly for five marks.

• Nonprogrammed Decision

  relatively unstructured and occurs much less often a programmed decision

  Example: Choosing a vacation destination

Type 02:

• Strategic : long-term planning and goal-setting at the highest level

• Tactical : shorter-term action and operational implementation

Type 03:

• Individual

• Group

Decision Making Condition

• Decision Making under Certainty
  • Decision makers knows with reasonable certainty what the alternatives are and what condition are associated with each alternatives

• Decision Making Under Risk
  • the availability of each alternatives and it’s potential payoffs and costs are all associated with risks/probability estimates
  • incomplete information available alternatives but has a good idea of the probability of outcomes for each alternative

• Decision Making under Uncertainty
  • the decision maker does not know all the alternatives, the risk associated with each each

Chapter 11 (Basic elements of organizing)

• The elements of organizing
  • Organizing : Deciding how to best group organizational activities and resources
  • Organizational Structure : The set of building blocks that can be used to configure an organization

Organizing structure

• Designing Job
  • Job Design
    • The determination of individual’s work-related responsibilities
    • Reason for systematic Job Design
      • Maximizing Performance
      • Enhance job satisfaction
      • Reduce adverse affect to physical and mental
  • Job Specialization (Division of Labor)
    • The Degree to which the overall task of the organization is broken down and divided into smaller component parts
    • Benefits of Specialization
      • Workers can become proficient at a task
      • Transfer time between tasks is decreased
      • Specialized equipment can be more easily developed
      • Employee replacement becomes easier
    • Limitation of Specialization
      • Employee boredom and dissatisfaction with mundane (lacking of interest or excitement) tasks
      • Anticipated (predicted or expected) benefits do not always occur
    • Adam Smith Example
      • Making a pin requires 18 tasks

        1 worker doing all 18 tasks might make 20 pins/day

        20 workers = 20 x 20 = 400 pins

        With specialization

        20 workers make 100K pins a day

        1 worker = 5K pins

    • Alternatives to Specialization
      • Job Rotation
        • systematically moving employees from one job to another
        • to reduce employee boredom, acquire multi skill
        • temporary basis, employees moving back to their to the previous job after a period of time
      • Job simplification
        • breaking down a job into various easier task
      • Job Enlargement
        • an increase in the total number of task workers perform
        • increasing the scope of the job
        • same level task are added to the existing job
        • require similar skill
        • expansion of a job in the same level
      • Job enrichment
        • increasing both the number of task the worker does and the control the worker has over the job
        • job enrichment happens, job enlargement happens automatically
        • expansion of a job in the higher level
      • Job Characteristics Approach

      

      Hackman & Oldham, 1980

      • Core dimension
        • Skill variety : the number of different skills ./ tasks a person does
        • Task identity
          • completeness of a job from start to finish
          • ensuring the worker receives the satisfaction of completing the job
        • Task significance
          • the perceived (realize or understanding) importance of the task
        • Autonomy
          • the degree of control the worker has over how the work is performed
        • Feedback
          • the extent to which the worker knows well the job is being performs
      • Growth-Need strength
        • the desire for some people to grow, develop and expand their capabilities that is their response to the core dimensions
    • Work Teams
      • that allows the entire group to design the work system it will use to perform an interrelated set of task
      • TDR stands for Tasks, Duties and Responsibilities.
      • the work team assigns specific tasks to members, monitors and controls its own performance, and has autonomy over work scheduling.

• Grouping Jobs : Departmentalization
  • process of grouping jobs according to some logical arrangement
  • jobs are grouped according to some plan.

• Rationale for Departmentalization
  • Organizational growth → owner-manager capacity to personally supervise all
  • additional manager are employed and assigned specific employees to supervise

• Common Base Departmentalization
  • Functional Departmentalization

    

    • grouping jobs involving the same and similar jobs
    • Advantages :
      • each department can be staffed by functional-area expert
      • Supervision is facilitated in that managers only need be familiar with a narrow set of skills
      • Coordination inside each department is easier
    • Disadvantages
      • Decision making → slow and bureaucratic
      • employees narrow their focus to the department and loss sight of organizational goals
      • accountability and performance are difficult to monitor
  • Product Departmentalization
    • grouping activities around product or product groups
    • Advantages:
      • all activities associated with one product can be integrated and coordinated
      • speed and effectiveness of decision making
      • performance of specific product can be assessed
    • Disadvantages:
      • Managers only focus on their product
      • administrative costs may increase (each department having it’s own functional-area expert)
  • Customer Departmentalization
    • grouping activities to respond to and interact with specific customers and customer groups
    • Advantages:
      • Skilled specialists can deal with unique customers
    • Disadvantages
      • a large administrative staffs is needed
  • Location Departmentalization
    • the grouping of jobs on the basis of defined geographic sites
    • Advantages
      • Enable the organization to respond easily to unique customer and environmental characteristics
    • Disadvantages
      • Large administrative staff may be needed

• Determining the appropriate Span : Skipped

• Authority : Power that has been legitimized by the organization

• Distributing Authority/Authority Delegation :
  • the process by which managers assign a portion of their total workload to others
  • Reasons:
    • manager to get more work done by utilizing skills and talents of subordinate
    • development of subordinates by having them participate in decision making and problem solving
  • Steps in Delegation Process
    • Assigning Responsibility
    • Granting Authority
    • Creating accountability

• Decentralization
  • the process of systematically delegating power and authority throughout the organization to middle and lower level manager

• Centralization
  • the process of systematically retaining power and authority in the hands of higher-level managers

• The bureaucratic Model of Organization design
  • A model of organization design based on a legitmate and formal system of authority
  • 5 Characteristics
    • The organization should adopt a distinct division of labor, and each position should be filled by an expert
    • The organization should develop a consistent set of rules to ensure that task performance is uniform
    • The organization should establish a hierarchy of position
    • Managers should conduct business in an impersonal way and maintain an appropriate social distance between themselves and their subordinates
    • Employment and advancement in the organization should be based on technical experts

• Basic forms of organization design (Skipped)

Chapter 16 (managing employee motivation and performance)

Motivation: The set of forces that causes people to behave in a certain ways

• The importance of employee motivation
  • Increase Productivity
  • Improved Job satisfaction
  • Enhanced creativity and innovation
  • Positive work environment
  • Higher quality of work
  • Employee development and growth
  • Reduced conflicts
  • Better customer service
  • Organizational success

• The motivation Framework

• Content perspective on motivation
  • Content Perspective : Approaches to motivation that try to answer the question “What factors in the workplace motivate people?”
  • Theories
    • Maslow’s Hierarchy of Needs
    • Herzberg’s Two-Factor Theory
    • McClelland’s Achievement, Power and Affiliation Needs
    • Aldefer’s ERG Theory

• Meslow’s hierarchy of needs

  

  • People must in a hierarchical order, satisfy five groups of needs:
    • Psychological needs for basic survival and biological function
    • Security → safe physical and emotional environment
    • Belongingness → love and affection
    • Esteem → positive self-image and recognition respect from others
    • Self-actualization → realizing one potential for personal growth and development
  • Weakness
    • Five levels of need are not always present
    • Ordering of needs is not always same
    • Cultural differences

• Goal Setting theory
  • It states that specific and challenging goals along with appropriate feedback contribute to higher and better task performance
  • Features:
    • The willingness to work towards attainment of goal is main source of job motivation
    • specific and clear goals lead to greater output and better performance
    • Goals should be realistic and challenging
    • Better and appropriate feedback of results direct the employee behavior and contributes to higher performance than absence of feedback
  • Eventualities
    • Self efficiency
      • Self efficiency is the individual’s self-confidence and faith that he has potential of performing the task
    • Goal Commitment
      • Committed to the goal and not leave the goal
  • Advantages
    • Used to raise incentive for employees to complete work quickly and effectively
    • better performance by increasing motivation and efforts, but also increasing and improving the feedback quality
  • Limitations
    • the organizational goals are in conflict managerial goal
    • very difficult and complex goals stimulate risker behaviour
    • no evidence to prove that goal setting improves job satisfaction

Chapter 17 (Managing leadership and influence processes)

• The nature of leadership
  • A manager is a leader, but a leader may not be a manager
  • Leadership is essential for managing
  • Leadership and motivation are closely connected

• Meaning of leadership
  • Process : what leaders actually do
    • Using noncoercive (the policy of not using force or threats) influence to shape the group’s or organizational ‘s goals
    • Motivating others behavior toward goals
    • Helping to define organizational culture
  • Property : who leaders are
    • The set of characteristics attributed to individual perceived to be leaders
  • Leaders
    • People who can influence the behaviors of others without having to rely on force
    • People who are accepted as leaders by others

• Leadership and management
  • are related but not the same
  • Leadership is necessary to create change and management is necessary to achieve orderly result

• Distinction between management and leadership

• Leadership and power
  • Power : The ability to affect the behavior of others
  • There are five kinds of power
    • Legitimate
    • Reward
    • Conceive
    • Referent
    • Expert

• Legitimate Power
  • Legitimate power is a formal authority that a person has over subordinates within an organization
  • The power is granter through organizational hierarchy
  • Example : A manager can assign tasks to a subordinate, and a subordinate who refuses to do them can be reprimanded or even fired.

• Reward Power
  • Reward power is the power to give or withhold rewards
  • Example : a manager may control salary increase, bonuses , promotion, recommendation (formal reward) → manager but not a leader
  • Informal reward : praise, gratitude → the manager exercising leadership

• Coercive Power
  • Coercive Power is the power to force compliance psychological, emotional or physical threat
  • In most organization today : coercion is limited to verbal reprimands (a formal expression of disapproval), written reprimands, demotion, layoffs, fines
  • The more a manager use coercive power → the less he is to be seen as a leader

• Referent Power
  • The personal power that accrues to someone based on identification, limitation, loyalty or charisma
  • Followers may react favorably because they identify in some way with a leader, who may be like them in personality, background or attitudes
  • In other situation, followers might choose to intimate a leader with referent power by wearing the same kind of clothes, working same hours etc
  • a manager might have referent power, but it is more likely to be associated with leadership

• Expert Power
  • Expert power is derived from information or expertise
  • The personal power that accrues to someone based on the information or the expertise that they possess
  • A manager who knows how to interact with an eccentric but important customers
  • Managers and leader tens to have a lot of expert power

• Leadership Traits
  • the personal, psychological and physical traits
  • intelligence
  • assertiveness
  • Physical appearance : above-average height
  • good vocabulary
  • attractiveness
  • self-confidence and will power
  • communicative skills
  • knowledge of work

• Leadership Behavior
  • Michigan State Studies
    • Job-centered behavior : managers who pay close attention to subordinate’s work, procedure and interest
    • Employee-center behavior: managers who focus on the development of cohesive work group and employee satisfaction
  • Ohio State Studies
    • not one-dimensional as Michigan State Studies
    • two basic leadership styles that can be exhibited simultaneously
    • Initiating-structure behavior : the leader clearly defines the-leader-subordinate role expectation, formalizes communication and sets the working agenda
    • Consideration Behavior : the leader shows concern for subordinate and attempts to establish a friendly and supportive climate

• Managerial grid
  • Managerial grid ins an another behavioral approach to leadership is the managerial grid

    X axis → concern for production (job-centered and initiating-structure) : deals with the job and task aspect of leader behavior

    Y axis → Concern for People (employee-center and consideration behavior) : deals with the human aspect of leader behavior

    • (1,1) Impoverished Management : minimal concern for people and production
    • (9,1) Authority-Compliance : highly concerned about production, exhibits little concern for people
    • (1,9) Country Club management : highly concerned about people, exhibits little about production
    • (5,5) Middle-of-the-road management: maintain adequate concern about both
    • (9,9) Team management : who exhibits maximum concern form both people and production
      • ideal style of managerial behaviors

• Decision making style
  • 5 styles are defined such as
    • Decide : The manager makes the decision alone and then announces it to the group
    • Consult (individually) : The manager presents the problem to group member individually, obtain their suggestion and then makes the decision
    • Consult(group) : the manager presents the problem to group member at a meeting, gets their suggestion and then makes the decision
    • Facilitate : The manager presents the problem to the group at a meeting, defines problem and it’s boundaries and then facilitates group member discussion as they make the decision
    • Delegate : The manager allows the group to define for itself the exact nature and parameter of the problem and then to develop a solution

• Charismatic leadership
  • A form of interpersonal attraction that inspires support and acceptance
  • Robert House first proposed a theory of charismatic leadership
  • Traits:
    • a lot of self-confidence
    • a strong need to influence people
    • tend to communicate high expectation about followers and express confidence in followers
    • First : set high expectation
    • Next : energize others through a demonstration of personal excitement, personal confidence, patterns of success
    • Finally: enables others by supporting them, empathizing them, expression confidence in them
  • Example : Donald Trump

• Strategic Leadership
  • The capability to understand the complexities of both the organization and its environment and to lead change in the organization to achieve and maintain a superior alignment between the organization and its environment
  • A manager needs to have complete understanding of the organization - history, culture, strengths, weakness
  • the leaders need a firm grasp of the organization’s environment
  • understanding the current conditions and circumstances needs to recognize how the firm is currently aligned with its environment → works to improve both the current alignment and future alignment

Chapter 20 (Basic elements of control)

Control : Control is the process to regulate activities to make them consistent with established:

• Levels of control

  

• Steps in control process
  • Establish Standards
    • Control Standards : a target against which subsequent performance will be compared
      • Control standards should be expressed in measurable terms
      • Control standard should be consistent with organizational goals
      • Control standards should be identifiable indicators of performance
  • Measure Performance
    • Performance measurement is a constant, ongoing process
    • Performance measures must be valid indicators of performance
  • Compare Performance against Standards
    • Define what isa permissible deviation from the performance standard
    • Utilize the appropriate timetable for measurement
  • Determine the need for corrective action
    • maintain the status quo
    • correct the deviation to bring operations into compliance with the standard
    • Change the standard if it was set too high or too low

• Other tool for financial control
  • Ration Analysis: The calculation of one or more financial ratios assess some aspect of the organization’s financial health
  • Financial Audits : An independent appraisal of an organization’s accounting, financial and operational system
    • External audits: financial appraisals conducted by expert who are not employee of the organization to verify to external parties that the organization’s financial and accounting procedures are legal and proper
    • Internal Audits : appraisals conducted by employees of the organization to determine the accuracy, efficiency and appropriateness of financial and accounting procedure
  • Bureaucratic Control
    • A form of organizational control characterized by formal and mechanistic structural argument
  • Clan Control
    • An approach to organizational control characterized by informal and organic structural arrangements

• Strategic Control
  • Control aimed at ensuring that the organization is maintaining an effective alignment with the environment and moving toward achieving in strategic plan
  • Focuses on structure, leadership, technology, human resources and informational and operational system
  • Focusses on the extent to which implemented strategy achieves the organization's goals

• Characteristics of effective Controls
  • Integration with Planning
    • The more explicitly and precisely control is linked to planning, the more effective the control system
  • Flexibility
    • The control system must be flexible enough to accommodate change
  • Accuracy
    • Inaccurate informational results in bad decision making and inappropriate managerial actions
  • Timeliness
    • A control system should provide information as often as necessary
  • Objectivity
    • A control system must be free from bias and distortion