Unit 1.pdf

O R G A N I Z AT I O N A N D MANAGEMENT CONCEPTS C H A P T E R 1 : A N OV E RV I E W O F M A N AG E M E N T & O R G A N I Z AT I O N UNIT I COVERAGE 1.What is Management? 2.Effectiveness and Efficiency 3.What is a Manager? 4.The Levels of Manager 5.Types of Managers 6.Management Skill...

O R G A N I Z AT I O N A N D MANAGEMENT CONCEPTS C H A P T E R 1 : A N OV E RV I E W O F M A N AG E M E N T & O R G A N I Z AT I O N UNIT I COVERAGE 1.What is Management? 2.Effectiveness and Efficiency 3.What is a Manager? 4.The Levels of Manager 5.Types of Managers 6.Management Skills 7.Managerial Roles 8.What is an Organization? 9.Basic Principles of Management and Organization 10.Educating Managers ACTIVITY 1. What is the name of the organization? 2. Who are members of the organization? 3. What is the goal, objectives, or purpose of the organization? 4. What is organization?  WHAT IS MANAGEMENT? Management may be defined as the achievement of organizational objectives through people and other resources. It consists of several functions, which may be briefly defined as follows: 1. DECISION MAKING – is the process by which a decision maker determines the available alternatives and chooses the best solution that suits a given problem. 2. PLANNING – is the process of establishing objectives and suitable courses of action before taking action.  WHAT IS MANAGEMENT? 3. ORGANIZING – is the process of arranging an organization’s structure and coordinating its managerial practices and use of resources to achieve its goals. 4. STAFFING – refers to the process of recruiting, placing, training, and developing personnel. 5. COMMUNICATING – refers to transferring information from one communicator to another. 6. MOTIVATING – refers to the act of giving employee reasons or incentives to work in order to achieve organizational objectives. 7. LEADING – is the process of directing and influencing task-related activities of organization members. 8. CONTROLLING – is the process of monitoring actual organizational activities to see that they conform to planned activities and correcting deviations or flaws. EFFECTIVENESS VS. EFFICIENCY EFFECTIVENESS – is a central element in the management process, which requires the achievement of an objective. For instance, a manufacturer chooses a supplier who provides needed materials at the required time and quantity. The action qualifies as effective. EFFICIENCY – is a central element in the management process, which requires that the minimum amount of resources is used to achieve an objective. In the example cited above, the manufacturer may be able to get supplies from his chosen source, but if the costs associated with the purchase are too excessive, the operation will be inefficient and may be place the organization in a disadvantageous position. WHAT IS A MANAGER?  is one who plans, organizes, leads, and Controls other individuals in the process of pursuing organizational goals. Managers are vested titles like president, department head, dean, administrator, Supervisor, team leader, and the like.  responsible for accomplishing the objectives of his/her particular unit, which could be a whole organization, a particular department or a work group.  responsible for using materials and talents in the most economical and productive manner LEVELS OF MANAGERS LEVELS OF MANAGERS LEVELS OF MANAGERS BY SIZE OF ORGANIZATION LARGE ORGANIZATION MEDIUM SMALL ORGANIZATION TOP ORGANIZATION MANAGERS TOP MANAGERS SINGLE MIDDLE MANAGERS MANAGERS FRONT LINE MANAGERS FRONT LINE MANAGERS EMPLOYEES EMPLOYEES EMPLOYEES TYPES OF MANAGER… LINE MANAGERS  Are directly concerned with accomplishing the goals of the organization. The decisions they make with regards to operations are expected to be final and must be implemented. STAFF MANAGERS  Are in-charge of units that provide support to the line units. In doing their work, they use special expertise to advise the line workers. ADMINISTRATORS  Are managers working in government or in non-profit organizations. MANAGEMENT SKILLS TECHNICAL SKILLS – refer to abilities to use special proficiencies or expertise in performing specific tasks. They refer to the use of tools, techniques, and specialized knowledge. HUMAN SKILLS – refer to the abilities to work well in cooperation with other persons; whether they are subordinates, peers or superiors. A person with good human skills will have a high degree of self-awareness and a capacity for understanding or empathizing with the feelings of others. CONCEPTUAL SKILLS – refer to the ability of the manager to see the organization as a whole and to solve problems in a ways that benefit the total system. MANAGEMENT SKILLS NEEDED AT DIFFERENT LEVELS OF MANAGEMENT TOP FIRST LINE MIDDLE MANAGERS MANAGERS MANAGERS CONCEPTUAL CONCEPTUAL CONCEPTUAL HUMAN HUMAN TECHNICAL HUMAN TECHNICAL TECHNICAL MANAGERIAL ROLES INTERPERSONAL SKILLS – these are the roles the manager plays when he/she interacts with others. The specific role under this category are the following: a. Figurehead – when the manager performs this role, he/she acts as the symbolic head of the organization and as a result, he/she is expected to perform a number of duties of a legal or social nature. b. Leader – this role makes the manager responsible for the motivation and activation of subordinates. As such, he/she is responsible for actions in staffing, training, and other associated duties. He/she performs the role of leader in virtually all managerial activities involving subordinates. c. Liaison – in assuming the liaison role, the manager makes contacts with individuals in an out of the organization to facilitate the accomplishment of work in his/her department. MANAGERIAL ROLES INFORMATIONAL ROLES – a very important aspect of the manager’s job is to receive and communicate information. Such roles are vital to his/her decision in making tasks. If he wants his subordinates to improve the quality of their decisions, he/she provides them with the information. On receiving and sharing information, the manager assumes three specific roles. a. Monitor – in acting as monitor, he/she handles all mails and contacts categorized as concerned primarily with receiving information such sources as news bulletin, special magazines, and observational tours. b. Disseminator – when he/she receives such information from outsiders or from subordinates, he/she transmits them to concerned members of the organization. As information disseminator, the manager sees to it that the relevant incoming information is properly shared with subordinates. MANAGERIAL ROLES c. Spokesperson – to effectively perform the role of spokesperson, the manager sees to it that his/her views are heard on occasions requiring his/her presence such as board meetings. He also maintains contact with outsiders and provides information when they are required. DECISIONAL ROLES – the major part of the manager’s job is to make decisions. As such, he/she must use the information he/she processes to make decisions that solve problems. As decision maker, the manager assumes the following roles: a. Entrepreneur – in acting this role, the manager searches the organization and its environment for opportunities and initiates projects to bring about positive change. His/her role as an entrepreneur requires his/her participation in strategy and review sessions involving initiative or design of projects to improve performance. MANAGERIAL ROLES b. Disturbance Handler – as disturbance handler, the manager is expected to respond to such unwelcome pressures by formulating strategies and reviewing such disturbances. c. Resource Allocator – the manager is responsible for the allocation of organizational resources of all kinds such as personnel, funds, machines, or buildings, and facilities to individual employees or units. As such, he/she is expected to be actively involved in scheduling, acting on request for authorization, budgeting, and the programming of subordinates’ work.  WHAT IS AN ORGANIZATION? An organization is a collection of people working together to achieve a common purpose. It is the means used by people to achieve certain objectives. A mere grouping of people will not qualify as an organization unless it has some objectives to achieve. In order to do this, people in a group must interact, use knowledge and techniques, and work together in patterned relationships. WHAT IS AN ORGANIZATION? COMMON CHARACTERISTICS OF ORGANIZATION Coordination of Effort – when properly directed, persons working in coordination with others will produce better outputs than when they work independently. Studies indicate that persons who cooperate with one another in an organized manner will produce better output than when they don’t. Common goal or purpose – in order to make employees work with proper direction, they must be provided with a common goal or purpose. Organizations that do not make their goals or purposes clear run the risk of failure. COMMON CHARACTERISTICS OF ORGANIZATION Division of Labor – when the total job is divided into manageable parts, workers will be more familiar with their assignments, making them more proficient. Hierarchy of Authority – in controlling the behavior of employees, positions are established and linked by a chain of command in a continuous branching out so that multiple layers exist in the hierarchy BASIC PRINCIPLES OF MANAGEMENT AND ORGANIZATION 1. Management Principles a. Division of Labor – this means breaking a job into specialized tasks to increase productivity. b. Authority – this is the right of a person in position to give orders and the power to exact obedience. c. Discipline – this provides uniform application of behavior to certain activities; the outcome of which is readily predicted. If discipline is not practiced, objectives will be very hard to achieve. BASIC PRINCIPLES OF MANAGEMENT AND ORGANIZATION 1. Management Principles a. Division of Labor – this means breaking a job into specialized tasks to increase productivity. b. Authority – this is the right of a person in position to give orders and the power to exact obedience. c. Discipline – this provides uniform application of behavior to certain activities; the outcome of which is readily predicted. If discipline is not practiced, objectives will be very hard to achieve. d. Unit of Command – this means that each employee must have only one supervisor. Reporting directly to more than one superior creates problems and reduces productivity. BASIC PRINCIPLES OF MANAGEMENT AND ORGANIZATION 1. Management Principles e. Unity of Direction – this means that the effort of everyone in the organization must be coordinated and focused in the same direction. It will be hard to achieve an organizational objective if some components of the organization are not moving toward the identified objective. f. Subordination of the Individual Interests to the General Interests - this means that the goals of the organization should take precedence over individual goals like a 10% increase in the salaries of certain employees. When the revers happens, it will be difficult for the organization to succeed because personal goals will always be set aside. BASIC PRINCIPLES OF MANAGEMENT AND ORGANIZATION 1. Management Principles g. Remuneration – employees should be paid fairly in accordance with their contribution to the organization effort. This must be applied to salaries, bonuses, and benefits. h. Centralization – power and authority must be centralized as much as practicable. Decentralization must be instituted, however, when the firm grows to a considerable size. i. Scalar Chain – this means that subordinates should observe the official chain of command unless authorized by their respective superiors to communicate with each other. BASIC PRINCIPLES OF MANAGEMENT AND ORGANIZATION 1. Management Principles j. Order – this means that human and non-human resources must be in their proper places. The production manager, for example, must hold office at the production site. k. Equity – this is the result of kindliness and justice and is a principle to guide management and employee relations. l. Stability of Tenure – high employee turnover is counterproductive. To motivate employees to stay with the company, effective manpower planning and implementation are necessary. BASIC PRINCIPLES OF MANAGEMENT AND ORGANIZATION 1. Management Principles m. Initiative - management should encourage employees to act on their own decision when confronted with an opportunity to solve a problem. n. Espirit de Corps. – this means that managers should emphasize teamwork by building harmony and a sense of unity among employees. Harmony breeds high morale and is more productive than discord. BASIC PRINCIPLES OF MANAGEMENT AND ORGANIZATION 2. Principles of Organization a. Principle of Objective – the objective of the organization must first be determined and laid out clearly before any activity is undertaken. The objective will serve as the guide in determining whether a certain activity is required or not. b. Principle of Analysis – managers in organizations must be able to break a problem down into its components, analyze these components, and then come up with a feasible solution. BASIC PRINCIPLES OF MANAGEMENT AND ORGANIZATION 2. Principles of Organization c. Principle of Simplicity – the organization should be built in the simplest manner that could make the achievement of objectives possible. Only activities that are absolutely necessary should be undertaken, and those, which are not, should be eliminated. d. Principle of Functionalization – business firms are not supposed to be organized to accommodate individuals. Rather, it should be built around the main functions of the business. QUESTION….. IN A BUSINESS SET-UP, WHY DO WE NEED AN EDUCATED MANAGERS? ASSIGNMENT Prepare a short report on the business management course offered in the undergraduate level in this University. What is your opinion regarding the subjects indicated in the curriculum? Write your answer in a 1 whole piece of pad paper Submit next meeting