Management

- the attainment of organizational goals in an effective and efficient manner

through planning, organizing, leading and controlling organizational resources.

Definition of Terms
Organization- is an entity that is goal directed and deliberately structured.
Effectiveness- is the degree to which the organization achieves a stated goal.
Efficiency - is the used of minimal resources to produce a desired volume of profit.
Goals- are what the organization wants to achieve
Vision- is a dream
Mission- is what the business doing.
Motivation- is defined as the arousal, direction and persistence of behavior.
Leadership - is the quality that inspires and motivates people beyond their normal levels

Four Functions of Management

1. Planning
2. Organizing
3. Leading
4. Controlling

1.Planning- goals for future organizational performance and deciding on the task and resources
needed to attain them.

The Purpose of Planning

 Establishes coordinated effort
 Helps the organization to look ahead
 Reduces duplications, overlapping and wasteful activities
 Sets standards for control and
 Serves as reference.

Guidelines for setting goals:

S - Specific
M- Measurable
A - Achievable
R - Realistic
T - Time based

Planning Types and Modes

1. Management by Objectives (MBO)- is a method where managers and employees define
goals for every department project and person and use them to monitor subsequent
performances.
2. Singles Use Plans- are plans that are developed to achieve a set of goals that are unlikely
to be repeated in the future.
3. Standing Plans- are ongoing plans used to provide guidance for task perform repeatedly
within the organization.
4. Contingency Plans- are plans that define company responses to specific situation such as
emergencies and setbacks.

2. Organizing- Organizing involves assigning tasks, grouping tasks into departments, delegating
authority, and allocating resources across the organization.
-Is the development of organizational resources to achieve strategic goals

Knowledge of the following terminology is important to understand organizing.

1. Organizing - involves assigning tasks, grouping tasks into departments, delegating

authority, and allocating resources across the organization
2. Organizational Structure- Organizational structure determines how the roles, power and
responsibilities are assigned, controlled, and coordinated, and how information flows
between the different levels of management
3. Organizational Chart - is a diagram that displays a reporting or relationship hierarchy.
4. Work Specification- is a code for all the work defined in the body of a Agreement or
Contract Modification or Contract Addendum. ... For example, the work described in the
body of the Agreement document is a Work Spec.
5. Chain of Command - an official hierarchy of authority that dictates who is in charge of
whom and of whom permission must be asked.
6. Authority-- Power that is delegated formally. It includes a right to command a situation,
commit resources, give orders and expect them to be obeyed, it is always accompanied by
an equal responsibility for one's actions or a failure to act
7. Accountability- Accountability is an assurance that an individual or an organization will
be evaluated on their performance or behavior related to something for which they are
responsible
 8. Responsibility- A duty or obligation to satisfactorily perform or complete a task
9. Delegation - Delegation occurs when someone with authority confers upon another person
the power to do a particular task

Theories in Organizational Behavior

3 Major theories of Organizational Behaviour

Theory X The average human being has an inherent of dislike of work and will avoid it If he can;
Because of this human characteristic of dislike of work, most people must be directed or threatened
w/ punishment to get them to put forth adequate effort toward the achievement of organizational
objectives; & The average human being prefers to be directed, wishes to avoid responsibility, has
relatively little ambition, and wants security above all. (Most people are self-centered. As a result,
they must be closely controlled and often coerced to achieve organizational objectives. Most
people resist change. Most people are gullible and unintelligent.)

Theory Y The expenditure of physical and mental effort in work is as natural as play or rest;
External control and the threat of punishment are not the only means of bringing about effort
toward organizational objectives; The average human being learns, under proper conditions not
only to accept but also to seek responsibility. Work can be as natural as play if the conditions are
favorable. (People will be committed to their quality and productivity objectives if rewards are in
place that address higher needs such as self-fulfillment. Under these conditions, people will seek
responsibility.)

Theory Z (Theory Z stresses the need to help workers become generalists, rather than specialists.
It views job rotations and continual training as a means of increasing employees’ knowledge of
the company and its processes while building a variety of skills and abilities. Since workers are
sgiven much more time to receive training, rotate through jobs, and master the intricacies of the
company’s operations, promotions tend to be slower.

Functional VS. Divisional Structures

A. Functional Structure - A functional organizational structure is a structure used to organize
workers. They are grouped based on their specific skills and knowledge. It vertically
structures each department with roles from president to finance and sales departments, to
customer service, to employees assigned to one product or service
B. Divisional Structure - The divisional structure is a type of organizational structure that
groups each organizational function into a division. These divisions can correspond to
either products or geographies

3. Leading - is the use of influence to motivate employees to achieve organizational goals

 Different Types of Leaders

Transactional Leader- is one who classifies subordinate’s role and task requirements, initiates
structure, provides rewards, and displays consideration for subordinates.
Charismatic Leader- is a leader who can motivate subordinates to transcend their expected
performance.
Interactive Leader- is a leader distinguished by a special ability to bring about innovation and
change.
Servant Leader- is a leader who works to fulfill subordinate’s needs and goals as well as to achieve
the organization’s larger mission.

6 Traits that Differentiate from Non-leaders

• Drive
• Desire to lead
• Honesty and integrity
• Self-confidence
• Intelligence
• Job-relevant knowledge

Comparison of Manager & Leader

Manager
1. Appointed
2 Ability to influence is based on the formal authority inherent in their position.
Leaders

1. Appointed or had emerged within the group

2. Can influence others to perform beyond the action by formal authority.

4. Controlling  Is the monitoring of employees’ activities, keeping the organizaton on track

toward its goals and making corrections as needed. Control  Is the process of directing the
behavior of a person, to cause a person to do what you want.

Types of Control
1) Feed forward control or preliminary or preventive quality control – is one that focuses on
human, material and financial resources flowing into the organization.
 2) Concurrent Control – consists of monitoring ongoing employee activities to ensure their
consistency with established standard.
3) Feedback Control or Output Control – focuses on organization’s output
4) Bureaucratic Control – is the use of rules, policies, hierarchy of authority, rewards systems,
and other formal devices to influence employee behavior and assess performance. Qualities of
effective Control System:
4. Are flexible
The control system: 5. Are timely
1. Are linked to strategy 6. Point out exceptions
2. Are accepted by members 7. Are within reasonable costs
3. Are accurate 8. Provide corrective measures

Organizational Control  is the systimatic, process through which managers regulate

organizational activities to make them consistent with expectation stablished in plants, targets and
standards of performance

| Control entails the following process.

| Established standards of performance
| Measure actual performance
| Compare performance to standadards
| Take corrective action
| Revise standards when necessary

The Importance of Control

*To ensure that activities are done according to plans.
*To ensure that goals are attained.
*To assist managers in delegation of authority- Control will motivate managers to delegate.

Areas of Control Control is applied in the following areas:

 Information
 Operations
 Finance System
 Employee Behavior
 Control
 Year Approaches, Advocates, And
Contributions
1890 Systematic Management
 Adam Smith
 Beginning of formal management
in the United States (US)
 Promotion of efficient,
uninterrupted production.
1900 Scientific Management
 Fredireck Taylor
 Henry Gatt
 Frank Gilbeth
 Lillian Gilbreth
 Improved factory productivity
and efficiency
 Introduced scientific analysis to
the workplace
 Piece-rate system equated worker
rewards and performance
 Instilled cooperation between
managers and workers.
1910 Bureaucracy
 Max Weber
 Promotes efficient performance
of routine organizational
activities
 Eliminates subjective judgment
by employees and management
 Emphasizes position rather than
the person
1920 Administrative Management
 Henry Fayol
 Chester Barnard
 Mary Parker Follet
 Viewed management as a
profession that can be trained and
developed
 Emphasized the broad policy
aspect of top-level managers
 Offered universal managerial
prescription
Key Concepts
 Systematic manufacturing organization.
 Emphasis on economical operations,
inventory management and cost control.
 Coordination of procedures built into the
internal operations.
 Analyzed work using scientific methods
to determine the one best way to
complete production tasks.
 Emphasized study tasks, selection and
training of workers, and cooperation
between workers and management.
 Structured formal network of
relationships among specialized and
positions in an organization
 Rules and regulations standardize
behavior.
 Jobs staffed by trained specialist who
follow rules
 Hierarchy defines the relationship jobs
 Fayol’s functions ad 14 principles of
management
 Executives formulate the organization’s
purpose, secure employees and maintain
communication.
 Managers must respond to changing
development.
1930 Human Relationship
 Elton Mayo
 Fritz Roethlisbeger
 Abraham Maslow
 Psychological and social process
influence performance
 Maslow’s hierarchy of needs
1940 Quantitative Management
 Developed specific mathematical
methods of problem analysis
 Helped managers select the best
alternative among a set
1950 Organizational Behavior
 Douglas Mc Arthur
 Chris Argyris
 Renses Likert
 Increased participation, greater
autonomy, individual challenge
and initiative and enriched jobs
may increase performance
 Recognized the importance of
developing human resources.
1960 System Theory
 Recognized the importance of the
organization’s relationship with
the external environment.
 Productivity and employee behavior are
influenced by informal work group
 Cohesion, status and group norms
determine output.
 Managers should stress employee
welfare, motivation and communication
 Social needs have precedence over
economic needs
 Application of quantitative analysis of
management
 Promotes employee’s effectiveness
through understanding of individuals,
groups, and organizational processes.
 Stresses relationships among employees,
managers and the work they perform for
the organization.
 Assumes employees want to work and
can control themselves.
 Organization is viewed as an open
system
 Management must interact with the
environment to gather inputs and return
the outputs and return the outputs of its
production.
 Organizational objectives must
encompass both efficiency and
effectiveness.
 Organizations contain a series of
subsystems
 There are many avenues for the same
outcome.

1970 Contingency Problems
 Identified major contingencies
 Argued against universal
principles of management.
 Synergies exist where the hole is greater
than the sum of its parts.
 Situational contingencies influence the
strategies, structures and processes that
result in high performance
 There is more than one way to reach goal
 Managers may adapt their organizations
to the situation.

Douglas McGregor- He introduced the theory Y and theory X about the managers perception
of the behavior of workers. Theory X is a negative belief that workers are lazy and need to be
watch. In theory Y, the manager believes workers love their work and that they are professionals
and are responsible people.
Chris Argyris- Argyris's theories focused on single- and double-loop learning, the
immaturity/maturity continuum, organizational communication and the effects of each of these on
employee motivation, accountability and empowerment.
Rensis Likert- Likert theory facilitated the measurement of the "soft" areas of management, such
as trust and communication.

Evolution of Management

Classical Approaches- provide the foundation for management and organization as they exist
today.
Contemporary Approaches- represent the cornerstones of modern management thoughts