Management Fundamentals

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What is the result of a subordinate who perceives that they have a great deal of ability, in terms of leadership style?

They will be dissatisfied with a directive style.

What is the degree to which people believe that they have control over the outcome of events in their lives?

Locus of Control

What is the process of regulating organisational activities so that actual performance conforms to expected organisational goals/standards?

Controlling

What refers to the amount of emotional support that is provided by an employee’s immediate work group?

Primary Work Group

What is the set of procedures, rules, and policies in an organization?

Formalization

What is the degree to which the requirements of a subordinate’s tasks are clearly specified?

Task Structure

What does controlling investigate in an organization?

The extent to which planning has been successful

What determines whether controls are effective in an organization?

How well they help employees and managers achieve their goals

What is the purpose of controlling in an organization?

To measure performance and take action to ensure desired results

What is the outcome of effective controls in an organization?

Employees and managers achieve their goals

Study Notes

Attaining Organizational Goals

  • Efficiency is getting the most output for the least inputs, also known as "doing things right".

Management: A Science or an Art

  • Management is a science because it consists of a body of knowledge that indicates the procedures to be followed to provide an unambiguous demonstration of its theory.
  • Management is also an art because managers make decisions and solve problems based on intuition, experience, instinct, and personal insights.

Universality of Management

  • The principles underlying management are universal and applicable to all types of organizations, at all levels, and in different organizations.

Management Forms

  • Managers are individuals who coordinate and oversee the work of others to accomplish organizational goals.
  • There are three levels of managers: top managers, middle managers, and first-line managers.
  • Top managers make decisions that affect the entire organization and provide strategic direction.
  • Staff managers are in charge of activities like finance, personnel, purchasing, or legal affairs that support the line managers.
  • Project managers are responsible for a temporary team created to plan and implement a change, such as a new product or system.

Managerial Roles (Mintzberg's 10 Roles)

  • Managerial roles refer to specific actions or behaviors expected of and exhibited by a manager.
  • There are three types of roles: informational, interpersonal, and decisional roles.
  • Informational roles include monitoring, disseminating, and speaking on behalf of the organization.
  • Interpersonal roles include figurehead, leader, and liaison roles.

Principles and Theories

  • McGregor's Theory X and Y: Theory X assumes that workers are lazy and need to be controlled, while Theory Y assumes that employees are motivated and self-controlled.
  • Deficit principle: a satisfied need is not a motivator of behavior.
  • Progression principle: the five needs exist in a hierarchy.

Controlling

  • Definition: the process of measuring performance and taking action to ensure desired results.
  • Controlling involves regulating organizational activities to conform to expected goals and standards.
  • Effective controls ensure that activities are completed in ways that lead to the attainment of goals.

Understanding key concepts in management, including efficiency, the science and art of management, and universality. Test your knowledge of these essential principles.

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