Management ppt
- 1. MANAGEMENT FUNDAMENTALS OF D R . J H O N N I F E R A R E L L A N O A B A R A O , D H C M , M A N , R N , U S R N
- 2. LEARNING OUTCOMES: • Describe the difference between managers and operative employees. • Explain what is meant by the term management.. • Differentiate between efficiency and effectiveness, • Describe the four primary processes of management. • Classify the three levels of managers and identify the primary responsibility of each group. • Describe the value of studying management. • Identify the Fourteen Principles of Management
- 3. Organizations A s y s t e m a t i c a r r a n g e m e n t o f p e o p l e b r o u g h t t o g e t h e r t o a c c o m p l i s h s o m e s p e c i f i c p u r p o s e ; applies to all organizations – for profit as well as not-for profit organizations. Where managers work (manage)
- 4. Common Characteristics of Organizations
- 5. People Differences OPERATIVES People who work directly on a job or task and have no responsibility for overseeing the work of others MANAGERS Individuals in an organization who directs the activities of others
- 6. Top Level Management Middle-Level Management Lower-Level Management Management Levels They make decisions affecting the entirety of the firm. They are responsible for carrying out the goals set by top management. They are responsible for the daily management of line workers the employees who produce the product or offer the service.
- 7. Ø The process of getting things done, effectively and efficiently, through and with other people Ø Management is an art and science Art •Practical know how •Technical skills •Concrete results •Creativity •Personalized nature Science •Empirically Derived •Critically tested •General principles •Cause and effect relationship •Universal applicability MANAGEMENT Defined
- 8. Difference between Management and Administration ADMINISTRATION Ø Administration is concerned mainly with determining goals to be achieved and policy working. Ø Administration requires conceptual skills. Ø Oriented more towards the external environment. MANAGEMENT Ø Management is concerned mainly with implementation of policies. Ø Management requires technical skills Ø Oriented more towards the internal environment.
- 9. Efficiency and Effectiveness EFFICIENCY m e a n s d o i n g t h e t h i n g c o r r e c t l y ; r e f e r s t o t h e r e l a t i o n s h i p b e t w e e n i n p u t s a n d o u t p u t s ; s e e k s t o m i n i m i z e r e s o u r c e c o s t s . EFFECTIVENESS m e a n s d o i n g t h e r i g h t t h i n g s ; g o a l a t t a i n m e n t .
- 10. Management Process Activities Includes defining goals, establishing strategy, and developing plans to coordinate activities. Includes motivating employees, directing the activities of others, s e l e c t i n g t h e m o s t e f f e c t i v e c o m m u n i c a t i o n c h a n n e l , a n d resolving conflicts. Includes determining what tasks to be done, who is to doo them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made. The process of monitoring performance, comparing it with goals, and correcting any significant deviations.
- 11. Is the Manager’s Job Universal? Do managers manage differently based on where they are in the organization? • Level in the organization Is managing in a commercial enterprise different than managing in a non- commercial organization? • Profit versus not-for-profit Does the size of an organization affect how managers function in the organization? • Size of organization Is management the same in all economic, cultural, social, and political systems? • Management concepts and national borders
- 12. Distribution of Time per Activity by Organizational Level First-Level Managers 10% - Controlling 15% - Planning 24% - Organizing 51% Leading Middle Managers 13% - Controlling 18% - Planning 33% - Organizing 36% Leading Top Managers 14% - Controlling 28% - Planning 36% - Organizing 22% Leading Source: Adapted from T.A. Mahoney, T.H Jerdee, and S.J. Carroll,”The Job(s) of Management”
- 13. Importance of Roles ROLES PLAYED BY MANAGERS IN SMALL FIRMS ROLES PLAYED BY MANAGERS IN LARGE FIRMS High Low Moderate Spokesperson Entrepreneur Figurehead Leader Disseminator Resource Allocator Liaison Monitor Disturbance handler Negotiator Entrepreneur
- 14. Three Basic kinds of skills TECHNICAL SKILL Is the ability to use procedures, techniques and knowledge of a specialized field. Eg. Surgeon, engineers, accountants. HUMAN SKILL Is the ability to work with, understand, and motivate other people as individual or in groups. CONCEPTUAL SKILL Is the ability to coordinate and integrate the organization goals and activities.
- 15. Specific Skills for Managers • Behaviors related to a manager’s effectiveness Controlling the organization's environment and it’s resources Organizing and coordinating. Handling information Providing for growth and development Motivating employees and handling conflicts Strategic problem solving
- 16. How does Management Relate To Other Disciplines? SOCIOLOGY PSYCHOLOGY PHILOSOPHY ANTHROPOLOGY ECONOMICS POLITICAL SCIENCE
- 17. How Much Important Does The Marketplace Put on Managers? Ø Managerial compensation packages are one measure of the value that organizations place on them. Ø Management compensation reflects the market forces of supply and demand. v Management superstars, like superstar athletes in professional sports, are wooed with signing bonuses, interest- free loans, performance incentive packages, and guaranteed contracts.
- 18. CONCEPTUAL SKILLS General Skills for Managers • A manager’s mental ability to coordinate all of the organization’s interests and activities INTERPERSONAL SKILLS • A manager's ability to work with, understand, mentor, and motivate others, both individually and in groups. TECHNICAL SKILLS • A manager’s ability to use tools, procedures, and techniques of a specialized field. POLITICAL SKILLS • A manager’s ability to build a power base and establish the right connections.
- 19. Why study Management? • We a l l h a v e a v e s t e d i n t e r e s t i n i m p r o v i n g t h e w a y o r g a n i z a t i o n s a r e m a n a g e d . • Yo u w i l l e v e n t u a l l y e i t h e r m a n a g e o r b e m a n a g e d Ø Gaining an understanding of the management process provides the foundation for developing management skills and insight into the behavior individuals and the organizations. Ø Better organizations are, in part, the result of good management.
- 21. Historical Background of Management • Ancient Management Ø Egypt (pyramids) and China (Great Wall) Venetians (floating warship assembly lines) • Adam Smith Ø Published “The Wealth of Nations” in 1776 Ø Advocated the division of labor (job specialization) to increase the productivity of workers • Industrial Revolution ( 18th Century) Ø Substituted machine power for human labor Ø Created large organizations in need of management
- 22. Development of Major Management Theories
- 23. The Evolution of Management Theory
- 24. Major Approaches to Management SCIENTIFIC MANAGEMENT GENERAL ADMINISTRATIVE THEROY QUANTITATIVE MANAGEMENT ORGANIZATION BEHAVIOR SYSTEMS APPROACH CONTIGENCY APPROACH
- 25. Major Approaches to Management • Scientific Management Theory Began in the industrial revolution in the late 19th century as: Managers of organizations began seeking ways to better satisfy customer needs. Large-scale mechanized manufacturing began to supplant small-scale craft production in the ways in which goods were produced. Social problems developed in the large groups of workers employed under the factory system. Managers began to focus on increasing the efficiency of the worker-task mix. • Administrative Theory • Quantitative Approach Ø Also called operations research or management science Ø Evolved from mathematical and statistical methods developed to solve WWII military logistics and quality control problems Ø Focuses on improving managerial decision making by applying: Ø Statistics, optimization models, information models, and computer simulations
- 26. • Job specialization and the division of labor • Adam Smith (18th century economist) Ø Observed that firms manufactured pins in one of two different ways: Ø Craft-style—each worker did all steps. Ø Production—each worker specialized in one step. Ø Realized that job specialization resulted in much higher efficiency and productivity Ø Breaking down the total job allowed for the division of labor in which workers became very skilled at their specific tasks.
- 27. • Scientific Management • Fredrick Winslow Taylor Ø The “father” of scientific management Ø Published Principles of Scientific Management (1911) Ø The theory of scientific management. Using scientific methods to define the “one best way” for a job to be done: • Putting the right person on the job with the correct tools and equipment. • Having a standardized method of doing the job. • Providing an economic incentive to the worker.
- 28. • Taylor’s Five Principles of Management
- 29. Frank and Lillian Gilbreth Refined Taylor’s work and made many improvements to the methodologies of time and motion studies. Ø Time and motion studies Ø Breaking up each job action into its components. Ø Finding better ways to perform the action. Ø Reorganizing each job action to be more efficient. • Also studied worker-related fatigue problems caused by lighting, heating, and the design of tools and machines.
- 30. Henry Gantt (1861-1919) • Originated a unique pay arrangement in which all workers were entitled to a basic daily wage, compared with Taylor's differential piece rate pay system, which paid according to output. • In Gantt's task and bonus system, if employees completed their tasks on time they earned a bonus, and if they performed beyond expectations they were again rewarded, as were their supervisors. Gantt wanted to encourage supervisors to coach employees rather than drive them to perform. • Gantt believed that humanitarian management was the key to achieving organizational goals.
- 31. Weber’s Ideal Bureaucracy • Authority is the power to hold people accountable for their actions. • Positions in the firm should be held based on performance, not social contacts. • Position duties are clearly identified so that people know what is expected of them. • Lines of authority should be clearly identified such that workers know who reports to who. • R u l e s , s t a n d a r d o p e r a t i n g procedures (SOPs), and norms guide the firm’s operations. Weber’s Five Principles
- 32. Fourteen Principles of Management By Henry Fayol
- 33. Fourteen Principles of Management By Henry Fayol Fayol noted jobs can have too much specialization leading to poor quality and worker dissatisfaction. v DIVISION OF LABOR Fayol included both formal and informal authority resulting from special expertise. v AUTHORITY AND RESPONSIBILITY Employees should have only one boss. v UNITY OF COMMAND A clear chain of command from top to bottom of the firm. v LINE OF AUTHORITY The degree to which authority rests at the top of the organization. v CENTRALIZATION A single plan of action to guide the organization. v UNITY OF DIRECTION The provision of justice and the fair and impartial treatment of all employees. v EQUITY The arrangement of employees where they will be of the most value to the organization and to provide career opportunities. v ORDER
- 34. Fourteen Principles of Management By Henry Fayol The fostering of creativity and innovation by encouraging employees to act on their own. v INITIATIVE Obedient, applied, respectful employees are necessary for the organization to function. v DISCIPLINE An equitable uniform payment system that motivates contributes to organizational success. v REMUNERATIION Long-term employment is important for the development of skills that improve the organization’sperformance. v STABILITY OF TENURE The interest of the organization takes precedence over that of the individual employee v SUBORDINATION Comradeship, shared enthusiasm foster devotion to the common cause (organization). v ESPRIT DE CORPS
- 35. • Quantitative Approach to Management • Administrative Management Ø The study of how to create an organizational structure that leads to high efficiency and effectiveness. • Max Weber Ø Developed the concept of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness. • Contingency Approach Also sometimes called the situational approach. • There is no one universally applicable set of management principles (rules) by which to manage organizations. • Organizations are individually different, face different situations (contingency variables), and require different ways of managing.
- 36. • Understanding Organizational Behavior • Organizational Behavior (OB) The study of the actions of people at work; people are the most important asset of an organization • Early OB Advocates Robert Owen Hugo Munsterberg Mary Parker Follett Chester Barnard Early Advocates of OB
- 37. • The Systems Approach • System Defined • A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. Basic Types of Systems: • Closed systems • Are not influenced by and do not interact with their environment (all system input and output is internal). • Open systems • Dynamically interact to their environments by taking in inputs and transforming them into outputs that are distributed into their environments. Implications of the Systems Approach • Coordination of the organization’s parts is essential for proper functioning of the entire organization. • Decisions and actions taken in one area of the organization will have an effect in other areas of the organization. • Organizations are not self-contained and, therefore, must adapt to changes in their external environment. The Organization as an Open System
- 38. MINTZBERG’S MANAGERIAL ROLES • Organization size • Routineness of task technology • Environmental uncertainty • Individual differences POPULAR CONTIGENCY VARIABLES
- 39. CURRENT TRENDS AND ISSUES GLOBALIZATION ETHICS WORKFORCE DIVERSITY ENTREPRENEURSHIP E-BUSINESS KNOWLEDGE MANAGEMENT LEARNING ORGANIZATIONS QUALITY MANAGEMENT
- 40. CURRENT TRENDS AND ISSUES • Management in international organizations • Political and cultural challenges of operating in a global market v GLOBALIZATION Increasing heterogeneity in the workforce • More gender, minority, ethnic, and other forms of diversity in employees Aging workforce • Older employees who work longer and do not retire. • The increased costs of public and private benefits for older workers • An increasing demand for products and services related to aging v WORKFORCE DIVERSITY The process whereby an individual or group of individuals use organized efforts to create value and grow by fulfilling wants and needs through innovation and uniqueness. • Entrepreneurship process Pursuit of opportunities Innovation in products, services, or business methods Desire for continual growth of the organization v ENTREPRENEURSHIP • Increased emphasis on ethics education in college curriculums. • Increased creation and use of codes of ethics by businesses v ETHICS
- 41. A philosophy of management driven by continual improvement in the quality of work processes and responding to customer needs and expectations Inspired by the total quality management (TQM) ideas of Deming and Juran Quality is not directly related to cost v QUALITY MANAGEMENT The cultivation of a learning culture where organizational members systematically gather and share knowledge with others in order to achieve better performance. v KNOWLEDGE MANAGEMENT An organization that has developed the capacity to continuously learn, adapt, and change. v LEARNING ORGANIZATION The work preformed by an organization using electronic linkages to its key constituencies • E-commerce: the sales and marketing component of an e-business v E-BUSINESS C U R R E N T T R E N D S A N D I S S U E S
- 42. THANK YOU!