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Management Principles

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1 Management Principles
Chapter 9 Management Principles

2 The Management Process
Management – a process whereby unrelated resources are integrated into a total system for accomplishment of objectives. Involves: Planning Organizing Staffing Leading Controlling ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

3 Managing Organizations
Organization – a group of people working together in a structured & coordinated way to achieve goals. Management is a set of activities directed at an organization’s resources for achieving goals effectively & efficiently. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

4 Management Concepts Authority – delegation from top to lower levels of management & the right of managers to direct others & take action of their position. Responsibility – obligation to perform an assigned activity or see that someone else performs it. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

5 Management Concepts Accountability – state of being responsible to one’s self, to some organization, or to the public. Efficiency – “Doing things right.” Effectiveness – “Doing the right things.” ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

6 Managerial Levels Manager – anyone responsible for people & other organizational resources. Managerial Levels: First-line –supervises employees Middle – coordinates activities implementing an organization’s policies Top – executives that control the organization ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

7 Managerial Levels ©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458

8 TQM Managerial Levels ©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458

9 TQM Managerial Levels TQM philosophy adaptations:
Create smaller organizational units Form cross-functioning teams Empower employees to make decisions Reduce the number of organizational levels Place emphasis on vision & values Find ways to take advantage of the Internet ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

10 General & Functional Managers
General manager – responsible for all activities of a organizational unit. Functional manager – responsible only for one area of organizational activity. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

11 Mintzberg’s Roles of Managers
©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

12 Mintzberg’s Interpersonal Roles
Focus on relationships. Interpersonal Roles: Figurehead – responsible for representing the management (ceremonial duties). Leader – responsible for creating an environment that will motivate the staff. Liaison – responsible for dealing with people both inside & outside the organization. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

13 Mintzberg’s Informational Roles
Focus on communication. Informational Roles: Monitor – searches for information to become more effective. Disseminator – transmits information to subordinates. Spokesperson – transmits information to people inside & outside the organization or unit. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

14 Mintzberg’s Decisional Roles
Focus on unit strategy. Decisional Roles: Entrepreneur – voluntary initiator of change. Disturbance handler – responds to situations that are beyond his or her control. Resource allocator – decides how & to whom the organization’s resources will be distributed. Negotiator – participates in a process of give & take until a satisfactory compromise is reached. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

15 Management Skills Skill – an ability that can be developed & that is manifested in performance. Katz’s Management Skills: Technical – understanding of, & proficiency in, a specific kind of activity. Human – working with people & understanding their behavior. Conceptual – ability to view the organization a whole. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

16 Managerial Levels & Skills
©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

17 Management Functions Five management functions:
Planning Organizing Staffing Leading Controlling Performed during coordinating activities of the subsystems of the organization. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

18 Planning Determining in advance what should happen.
Hierarchy of plans: Goals – desired future conditions that organizations strive to achieve. Objectives – goals that set the direction for all managerial planning. Policies – guidelines for action Procedures & methods – define steps for implementation. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

19 Planning ©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458

20 Dimensions of Planning (Repetitiveness)
Standing Plans Plans for repetitive action Used many times Examples Policies Procedures Methods Rules ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

21 Standing Plans Policy – general guide to organized behavior developed by top-level management. Procedure – Chronological sequence of activities. Method – details for one step in a process. Rules – specification of action, stating what must or must not be done. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

22 Dimensions of Planning (Repetitiveness)
Single Use Plans Plans for a single use Used only once Examples Programs Projects Budgets ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

23 Dimensions of Planning (Time Span)
Short range plans Covers 1 year or less Long range plans Covers 1-5 year period Strategic plans Continuous and systematic process Focuses on future outcomes, how to accomplish and how to measure success ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

24 Dimensions of Planning (Level of Management)
©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

25 Organizing Process of:
Grouping activities Delegating authority to accomplish activities Providing for coordination of relationships Facilitating decision making Formal Organization – the outcome of organizing, usually in chart form. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

26 Span of Management Number of employees that can be effectively supervised by one manager. Factors in determining proper number: Organizational policies Availability of staff experts Competence of staff Objective standards Nature of the work Distribution of workforce ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

27 Delegation Delegation - assigning job activities & authority to a specific employee within the organization. Authority is delegated down the hierarchy of the organization. Effective delegation elements: Specific tasks must be assigned clearly. Sufficient authority must be granted. Responsibility must be created. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

28 Staffing The recruitment, selection, training, & development of people who will be most effective in helping the organization meet its goals. Primarily carried out by a personnel department. Line managers are responsible for training, & development. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

29 Staffing Steps Human Resources Planning Recruitment & Selection
designed to ensure an organization’s labor requirements are continuously met. Recruitment & Selection concerned with developing, evaluating, & choosing a pool of job applicants. Orientation, Training, & Development acquaints newcomers with organization & its goals & policies & informs them of their responsibilities. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

30 Staffing Steps Performance Appraisal Compensation
compares an individual’s performance with established standards for the job. Compensation encompasses all activities concerned with administration of the wage, salary, and benefits program. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

31 Leading Management function of directing human resources for the accomplishment of objectives. Includes: Morale Employee satisfaction Productivity Communication ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

32 Controlling Management function of ensuring that plans are being followed. Involves: Measuring actual performance & comparing it with desired performance or standards. Analyzing deviations between actual & desired performance & determining whether or not deviations are within acceptable limits. Taking actions to correct unacceptable deviations. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

33 Quality of Work Life (QWL)
Guidelines: Decisions are made at the lowest possible level. Teams of employees are responsible for a complete job. Technical & social potential of employees & the organization is developed. Quality & quality of employees are emphasized. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

34 Quality of Work Life (QWL)
Guidelines (cont.): Safety & health of employees are emphasized. Availability of immediate feedback of information required to perform a job. Problems are solved by teams, but responsibility is shared by all levels of the organization. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

35 Quality of Work Life Participative management – involving employees in the decision making process. Leader-member relations – refers to nature of the relationship between the leader & work group. Team-based leadership – two or more people who interact regularly to accomplish a common purpose or goal. Self-managed teams – teams that do the daily work. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

36 Corporate Culture Includes shared: Knits an organization together.
Philosophies Values Assumptions Beliefs Expectations Attitudes Norms Knits an organization together. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

37 Positive Corporate Culture Qualities
Integrity involves trust between people in the organization. Bottom-up management style gives employees a feeling of being on the team. Having fun is important for both managers & employees. Community involvement in social service programs is appreciated by employees. Emphasis on physical health & fitness reflects a belief that a sound mind goes along with a sound body. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

38 Caring Culture Checklist
Have a written mission statement. Remind employees of the mission statement. Have a hands-on style of management. Foster open relationships between management & employees. Empower hourly employees. Give incentives for superior performance. Give employees an ownership stake in the business. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

39 Vertical Division of Labor
Based on the establishment of lines of authority. Chain of command - clear & distinct lines of authority within an organization. Delegated authority is given up by the person who delegated it. Parity principle – organizational authority & responsibility must coincide. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

40 Horizontal Division of Labor
Emphasis on encouraging employees to share ideas across all levels & departments. Reduces the number of levels in each department. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

41 Underlying Concepts of Organization
Different areas of organizational activity must be defined. Someone must be placed in charge of each area. The source & use of authority is fundamental to organizational effectiveness. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

42 Authority Formal authority – exists because of position in the organization. Positional authority – derived from the position or office. Acceptance authority – based on employee’s acceptance of that authority. Authority of competence – based on a manager’s competence or expertise. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

43 Departmentalization Process of grouping jobs according to some logical arrangement. Departments are commonly organized by: Function Product Geography Customer Process/Equipment Time or Shift ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

44 Line & Staff Line Position – a position in the direct chain of command. Staff Position – intended to provide expertise, advice, & support for line positions. Line Authority – formal authority created by the organizational hierarchy. Staff Authority – based on expertise in specialized activities. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

45 Administrative Intensity
Degree to which managerial positions are concentrated in staff positions. High Administrative Intensity – many staff positions relative to line positions. Low Administrative Intensity – emphasizes more line positions. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

46 Organization Chart Graphic portrayal of the organization structure.
Depicts basic relationships of positions & function. Specifies the formal authority & communication network of the organization. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

47 Coordination Process of linking activities of various departments in the organization. Linking role – manager who links with managers at higher levels with those at their own level Mechanisms for coordination: Committees Task forces ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

48 Job Analysis Process of determining duties & tasks of a job.
Involves a systematic investigation of jobs such as: Collecting data on tasks Performance standards Skills required Occupational Information Network, O*NET (www.onetcenter.org) ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

49 Job Description List of duties, working conditions, & tools & equipment needed to perform the job. Job Description Sections: Title – used to indicate level in the organization. Identification – includes location of the job, the person to whom the jobholder reports, & often the number of employees in the department. Duties – statements of duties arranged in order of importance. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

50 Job Specification (job spec)
List of abilities, skills, & other credentials needed to do the job. Statement of job conditions relating to the health, safety, & comfort of the employee. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

51 Performance Standards
Desired results at a definite level of quality for a specified job. Performance – the attainment of a desired result at a defined level of quality for a specified purpose. Should be based on work-related behaviors & clearly stated in writing. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

52 Job Design An outgrowth of job analysis.
Concerned with structuring jobs to improve organization efficiency & employee job satisfaction. Job – a set of all tasks that must be performed by a given employee. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

53 Job Design ©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458

54 Job Enlargement Developed to increase the total number of tasks that employees perform. Tasks – individual activities that make up a job. Prevents employee boredom from repetition of same tasks day after day. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

55 Job Enrichment Increases the variety & number of tasks & control the employee has over the job. Factors for motivating employees: Achievement Recognition Growth Responsibility Performance ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

56 Job Characteristics Job dimensions that improve efficiency & job satisfaction: Skill variety Task identity Task significance Autonomy feedback ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

57 Employee Work Teams Two or more employees who interact regularly to accomplish a narrow set of goals. Created by management to solve specific problems. ©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458


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