M A N A G E M E N T F U N D A M E N T A L S I N T R O D U C T I O N T O M A N A G E M E N T G R A D U A T E D I P L O M A I N M A N A G E M E N T

M A N A G E M E N T F U N D A M E N T A L S I N T R O D U C T I O N T O M A N A G E M E N T G R A D U A T E D I P L O M A I N M A N A G E M E N T

M A N A G I N G I N T U R B U L E N T T I M E S 24/03/2017

INTRODUCTION TO ORGANISATIONS A group of people working together to over a period of time to achieve a common goal or an objective. 24/03/2017

CLASSIFICATION OF ORGANISATIONS Organisations Objective Size Ownership Profit Large Private Non Profit Small Public 24/03/2017

WHAT IS MANAGEMENT? Manager : Someone who get things done with the aid of people and other resources. Management : Attainment of organisational goals in an effective and efficient manner through planning, organising, leading and controlling organisational resources. 24/03/2017

WHAT MANAGERS DO?

MANAGEMENT PROCESS Resources Human Financial Raw Materials Technology Information Controlling Planning Organising Performance Attain goals Products Services Efficiency Effectiveness Leading

MANAGEMENT FUNCTIONS Planning : Planning means identifying goals for future, organisational performance and deciding on the tasks and use of resources needed to attain them. Organising : Organising involves assigning tasks, grouping tasks in to departments, delegating authority and allocating resources across the organisation. Leading : Use influence to motivate employees to achieve organisational goals. Controlling : Monitoring employees activities, determining whether the organisation is on target towards its goal, and making corrections necessary.

MANAGEMENT TYPES Vertical Top management are responsible for the entire organisation : President, chairperson, executive directory, chief executive officer (CEO) etc. Middle managers are responsible for business units : Departmental head, Divisional head, Manager of quality control etc. First line managers are responsible for production of goods and services : Supervisor, line manager, section chief, office manager etc. Horizontal Functional managers are responsible for departments that perform specific tasks : advertising, sales, finance, human resources etc. General managers are responsible for several departments

LEVELS OF MANAGEMENT

MANAGERIAL SKILLS Three categories of skills: Conceptual skills, Human skills and Technical skills. The degree of these skills may vary. The application of management skills change as manager moves up the hierarchy.

MANAGERIAL SKILLS CONTD. Technical skills: Ability to use tools, techniques and specialised knowledge. Human relations skills (Inter personal skills): Ability to work effectively with people. Conceptual skills: Ability to see the organisation as a whole and solve problems to benefit the total system.

RELATIONSHIP OF SKILLS TO MANAGEMENT

WHEN SKILLS FAIL Unethical behaviour During turbulent times, managers must apply their skills Common management failures: Not listening to customers Misinterpreting signals from marketplace Not building teams Inability to execute strategies Failure to comprehend and adapt to change Poor communication and interpersonal skills

INNOVATIVE MANAGEMENT FOR THE NEW WORKPLACE Rapid environmental shifts: Technology Globalisation Shifting social values

MANAGERIAL ROLES A role is a set of expectations for a managers behaviour Informational Interpersonal Decisional

MANAGERIAL ROLES CONTD. Informational Monitor Disseminator Spokesperson Interpersonal Figurehead Leader Liaison Decisional Entrepreneur Disturbance handler Resource allocator Negotiator

MANAGERIAL ROLES CONTD. Role Activity Examples Monitor Seek and acquire work related information Scan/read trade press, periodicals, reports; attend seminars and training; maintain professional contacts Disseminator Communicate/ disseminate information to others within the organization Send memos and reports; informs staff and subordinates of decisions Spokesperson Communicate/transmit information to others outside the organization Pass on memos, reports and informational materials; participate in conferences/ meetings

MANAGERIAL ROLES CONTD. Role Activity Examples Figurehead Perform social and legal duties, act as symbolic leader Greet visitors, sign legal documents, attend ribbon cutting ceremonies, host receptions etc. Leader Liaison Direct and motivate subordinates, select and train employees Establish and maintain contacts within and outside the organization Include almost all interactions with subordinates Business correspondence, participation in meetings with representatives of other divisions or organizations.

MANAGERIAL ROLES CONTD. Role Activity Examples Entrepreneur Identify new ideas and initiate improvement projects Implement innovations; plan for the future Disturbance handler Deals with disputes or problems and takes corrective action Settle conflicts between subordinates; Choose strategic alternatives; Overcome crisis situations Resource allocator Decide where to apply resources Draft and approve of plans, schedules, budgets; set priorities Negotiator Defends business interests Participates in and directs negotiations within team, department, and organisation

T H E E V O L U T I O N O F M A N A G E M E N T

During 1776, using the pin industry Discussed about the economic advantage that could be generated through division of labour or job specialization.

Late 18th century and beginning of 19th century Industrial Revolution Human Capital was substituted by machinery Large organizations required formal theories to run the organizations

CLASSICAL PERSPECTIVE

INTRODUCTION TO CLASSICAL PERSPECTIVE Early on the 20 th Century Focusses on making the organisation efficient as possible Scientific Management : Frederick Winslow Taylor & Frank and Lillian Gilbreth Administrative Principles : Henri Fayol & Max Weber

SCIENTIFIC MANAGEMENT: TAYLOR 1856-1915

SCIENTIFIC MANAGEMENT CONTD. Developed during late 1800s by Frederick Winslow Taylor. Frederick Taylor is known as the father of the scientific management. Proposed that employees could be retooled like machineries to enhance productivity. 16/06/2016 GDM 401 PB: HDM

SCIENTIFIC MANAGEMENT CONTD. Criticisms Did not appreciate the social context of work and higher needs of workers. Did not acknowledge variance among individuals. Tended to regard workers as uninformed and ignored their ideas and suggestions. Contributions Demonstrate the importance of compensation for performance. Initiated the careful study of tasks and job. Demonstrated the importance of personnel selection and training. General approach Developed standard method for performing each job. Selected workers with appropriate abilities for each job Trained workers in standard method Supported workers by planning work and eliminating interruptions. Provided wage incentives to workers for increased output

GENERAL ADMINISTRATIVE THEORY Focused more on what managers do and what constitute good management practice. Focused on all levels of managers whereas Taylor focused only on first line managers.

ADMINISTRATIVE PRINCIPLES Contributor : Henry Fayol Focus : Management is a common endeavour to all businesses. Fundamental rules of management that could be applied to all organisational situations.

14 ADMINISTRATIVE PRINCIPLES Division of work : Specialization increases output by making employees more efficient. Authority : Managers must be able to give orders, and authority gives them the right. Discipline : Employees must obey and respect the rules that govern the organisation. Unity of command : Every employee should receive orders from only one superior. Unity of direction : The organisation should have a single plan of action to guide managers and workers. Subordination of individual interest to the general interest : The interest of any one employee or group of employees should not take precedence over the interest of the organization as a whole. Remuneration : Workers must be paid a fair wage for their service. Centralization : This term refers to the degree to which subordinates are involved in decision making.

14 ADMINISTRATIVE PRINCIPLES CONTD. Scalar chain : The line of authority from top management to the lowest ranks is the scalar chain. Order : People and materials should be in the right place at the right time. Equity : Managers should be kind and fair to their subordinates Stability of tenure of personnel : Management should provide orderly personnel planning and ensure that replacements are available to fill vacancies. Initiative : Employees are allowed to originate and carry out plans will exert high levels of effort. Esprit de corps : Promoting team spirit will build harmony and unity within the organization.

BUREAUCRATIC ORGANISATIONS Introduced by Max Weber (1864-1920) : German sociologist He developed a theory of authority structures and relations based on an ideal type of organisation he called a bureaucracy a form of organisation characterized by division of labour, a clearly defined hierarchy, detailed rules and regulations and impersonal relationships.

BUREAUCRATIC ORGANISATIONS Division of labor with Clear definitions of authority and responsibility Personnel are selected and promoted based on technical qualifications Positions organized in a hierarchy of authority Administrative acts and decisions recorded in writing Management separate from the ownership of the organization Managers subject to Rules and procedures that will ensure reliable predictable behavior 16/06/2016

HUMANISTIC PERSPECTIVE/ BEHAVIOURAL APPROACH

HUMANISTIC PERSPECTIVE: EARLY ADVOCATES Mary Parker Follett and Chester Barnard Understand human behaviors, needs, and attitudes in the workplace Importance of people rather than engineering techniques: contrast to scientific management Empowerment: facilitating instead of controlling Recognition of the informal organisation Introduced acceptance theory of authority

HUMANISTIC PERSPECTIVE: HUMAN RELATIONS MOVEMENT Elton Mayo conducted the experiment in Western Electric Hawthorne, Illinois plant in 1982 Effective work comes from within the employee Human relations is the key variable in increasing performance Based on Hawthorne Studies: Money does not cause increased output. Human relations increased output Employees performed better when managers treated them positively Combine motivation with job design

HUMANISTIC PERSPECTIVE: BEHAVIOURAL SCIENCE APPROACH Use scientific methods which combines sociology, psychology, anthropology, economics and other social sciences disciplines to develop theories on human behavior in an organisation. Organisational Development field that uses behavioral sciences to improve the organisation Other strategies based on behavioral science: Matrix Organisations Self-Managed Teams Corporate Culture

QUANTITATIVE PERSPECTIVE Standing in a long, snacking line with impatient children isn t a parent s idea of a good time. The Walt Disney Company used quantitative techniques to develop FASTPASS, a sophisticated computerized system that spares parents the ordeal for the most popular rides. Disney theme parks have machines that issue coupons with a return time that s been calculated based on the number of people standing in the actual line, the number who have already obtained passes, and each rider s capacity.

QUANTITATIVE PERSPECTIVE Emerged after WW II Applied mathematics, statistics and other quantitative techniques to managerial problems. Subsets of the quantitative approach Operations research mathematical modelling Operations management specialised in physical production of goods and services Information technology reflected in management information systems Emerged systems such as linear programming, quality management, capital asset pricing model, work scheduling, EOQ etc.

RECENT TRENDS Systems thinking Contingency view Total quality management

01. SYSTEMS THINKING A system is a set of interrelated parts that function as a whole to achieve a common purpose. Closed systems : Not influenced by and do not interact with the environment. Open systems : Influenced by and do interact with their environment. Organisations are made up of interdependent factors such as individual goals, attitude, motives, formal structures, goals and authority. Systems thinking ensures: Managers coordinate work activities in the various parts of the organisation. That decisions and actions in one organisational area will affect other areas That organisations are not self contained and they will rely on the environment for essential inputs and as outlets to absorb their outputs.

02. CONTINGENCY VIEW Successful resolution of organizational problems is thought to depend on managers identification of key variations in the situation at hand

03.TOTAL QUALITY MANAGEMENT Father of quality is known as Edwards Deming Focuses on delivering better quality to the customers through high quality values through every activity within a company. Elements of quality management; Focus on the customer Continuous improvement Process focussed Accurate measurement Empowerment of employees

INNOVATIVE MANAGEMENT: THINKING FOR A CHANGING WORLD Management ideas trace their roots to historical perspectives New ideas continue to emerge to meet the changing needs and difficult times The shelf life of trends is getting shorter and new ideas peak in fewer than three years

MANAGING THE TECHNOLOGY DRIVEN WORKPLACE Customer Relationship Management technology used to build relationships with customers Outsourcing contracting functions or activities to other organisations to cut costs Supply Chain Management managing supplier and purchaser relationships to get goods to consumers

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