Management Concepts and Theories

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Questions and Answers

What is a characteristic of decision making?

Involves no commitment of resources

Based on alternatives (correct)

Lacks a systematic approach

Random process

Which type of decision is made by top management and is a long-term decision?

Tactical decision

Programmed decision

Strategic decision (correct)

Routine decision

In the decision-making process, what is the first step?

Analyzing alternatives

Identifying the problem (correct)

Diagnosing the problem

Implementing a decision

Which decision type is typically unplanned and based on situational needs?

Unprogrammed decision Signup and view all the answers

What best describes an organization?

A group of employees working together towards common goals Signup and view all the answers

What is the primary objective of the planning process?

To provide direction and reduce uncertainty Signup and view all the answers

Which of the following is NOT a characteristic of effective planning?

Reduces mental agility Signup and view all the answers

What is the first step in the planning process?

Awareness of opportunities Signup and view all the answers

Which limitation of planning refers to its inability to adapt to unexpected circumstances?

Inflexibility Signup and view all the answers

What is a key benefit of Management by Objectives (M.B.O.)?

It fosters a result-oriented philosophy. Signup and view all the answers

Which aspect characterizes management as a distinct process?

Intangibility Signup and view all the answers

What is the primary focus of the classical approach to management?

Centralization and formal relations Signup and view all the answers

Which of the following roles falls under Mintzberg's interpersonal role category?

Leader Signup and view all the answers

What is a key characteristic of the neo-classical approach to management?

Informal relations among employees Signup and view all the answers

Who is recognized as the father of human resource management?

George Elton Mayo Signup and view all the answers

In managerial roles, what is the function of a spokesperson?

To communicate with external parties Signup and view all the answers

Which of the following is an attribute of management that differentiates it from ownership?

Decision making abilities Signup and view all the answers

What is one of the four pillars of classical management approaches?

Division of work Signup and view all the answers

Study Notes

Management

Categorization of Management: Management can be categorized into various types or categories.
Management of People: Tactfully managing people is a key aspect of management.
Decision Making: Rose Morrey associates management with decision-making.
Coordination: Merry Parker Follett viewed management as the art of coordinating tasks through others.
Organized Group: Harald Koontz defines management as the art of getting things done through people in an organized group.

Scientific Management

Definition of Management: F.W. Taylor's perspective defines management as knowing what to do and then seeing it done in the best and cheapest way.

Managerial Roles

Henry Mintzberg's Research: A 1977 study by Henry Mintzberg involved observing the work of 5 CEOs in the US, analyzing roles and processes.
Interpersonal Roles: Key roles include figurehead (representing the organization), leader (leading and motivating), and liaison (linking with others).
Informational Roles: This involves monitoring, disseminator, and spokesperson activities and processes
Decisional Roles: Roles encompassed risk taking, innovative ideas and evaluations.
Disturbance Handler Role: Maintaining coordination is a key aspect for disturbance handler role.

Management Characteristics/Nature

Human Process: Management involves people.
Social Process: Management is a social activity.
Universal Process: Management principles apply across various contexts.
Intellectual Process: Management incorporates problem-solving and intelligence.
Decision-Making Ability: Management involves making decisions.
Leadership: Management includes leadership skills.
Ownership: Management differs from organizational ownership.
Goal-Oriented: Management is designed for achieving objectives.
Multi-Disciplinary: Management draws principles from various fields of study.

Classical Approach (1900-1930)

Theory and Objectives: This approach focuses on efficiency and structure, often adopting negative attitudes toward labor.
Organization as a Machine: Classical management views organizations as machines made up of tools and components.
Principles Based on Mining Engineering: Principles were also derived from the analysis and experiences in the mining industry, especially about efficient work division.
Work Division: Dividing work makes work process more efficient.
Productivity: Productivity is increased when there is better work division.

Classical Approach's Pillars

Division of Work: A core principle is dividing tasks among employees for greater efficiency that is based on specialization.
Principles of Management: Specific organizational and managerial principles were identified by influential figures in management theory, such as Henry Fayol.

Neo-Classical Approach (1930-1960)

Human Relations: Emphasis on employee motivation and relationships in the workplace.
Informal Relations: This approach considers informal interactions between employees.
Coordination: Coordination is seen as an essential component.
Decentralization: Decision-making power is decentralized.
Motivation theory: Theories of motivation influence this approach.

Planning

Defining Planning: Planning involves what, when , and how goals are executed, which is an important aspect of management and decision making.
Time Horizons: Planning is categorized by timeframes (long-term, mid-term, short-term) based on the duration of their implementation..
Planning Types: This can include strategic planning, which is a long-term planning process.
Planning Process: The planning process involves identifying opportunities and developing action alternatives.
Characteristics of Planning: Planning process provides direction and reduces uncertainties.
Planning Limitations: Planning may be affected by inflexibility, time constraints, mental issues, and inaccurate forecasting.

Management by Objectives (MBO)

Methodology: MBO is essentially a goal-oriented, data driven management process.
Peter Drucker and MBO: Peter F. Drucker advocated for Management by Objectives (MBO), a management process, often used in modern businesses.
Goal Setting and Implementation: Setting specific goals, developing action plans, monitoring performance, and taking corrective actions are crucial aspects of this approach.
Performance Appraisal: Performance appraisal involving standard and actual work should be done to measure progress towards achieving the organizational goals.

Decision Making

Choice of Alternatives: Making a proper choice from various possible alternatives is an important characteristic involved in decision making.
Experience and Ability: Decision-making is strongly tied to the experience and skills of the individual or group making the decision.
Organizational Goals: Decision-making is goal oriented and is directly linked to organizational success.
Decision Types (Basic/Routine): Basic decisions have unique situations and large investments with one-time implementations, while routine decisions encompass everyday work repetitions.
Strategic/Tactical Decisions: Strategic decisions are long-term, made by top management, and not easily delegated. Tactical decisions are short-term, made at lower levels, and often delegated.
Programmed/Nonprogrammed Decisions: Programmed decisions are routine and predefined, while nonprogrammed decisions address novel situations requiring unique solutions.

Organisation

Definition: An organization is a collection of people coordinated by management, with shared objectives and resources.
Characteristics: Organizations are composed of employees, common work, resources and hierarchy.
Hierarchy and Authority: An organizational structure based on authority levels exists within the organization.

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Description

Explore the various categories and definitions of management, including the perspectives of notable theorists like F.W. Taylor and Henry Mintzberg. This quiz delves into the essential roles of managers and the principles behind effective decision-making and coordination.