MNEM-Notes: Management and Organizational Theory PDF

Definition of Terms: Management - The formally recognised leadership of an organisation. The act of realising organisational goals through the efforts of others. The allocation of responsibilities and provision of resources. Three Resources: time, effort, money Key Characteristics of Management:...

Definition of Terms: Management - The formally recognised leadership of an organisation. The act of realising organisational goals through the efforts of others. The allocation of responsibilities and provision of resources. Three Resources: time, effort, money Key Characteristics of Management: 1. Goal-Oriented Process 2. Continuous and dynamic activity 3. Require interpersonal skills (communication, conflict resolution 4. Balances short-term performance and long-term strategy. Organization - Group of people brought together to achieve common purpose; people working together to achieve a certain goal/objective. Key Components: 1. Purpose: shared mission or vision 2. Structure: define hierarchy, roles, and communication flow 3. People: Individuals with defined responsibilities. Organization Design - The way people consciously coordinate, develop, and modify the structure of an organization to optimise function. HISTORY OF MANAGEMENT AND ORGANIZATION Classical Era: 1) Frederick Taylor (Scientific Management) Studied time and motion to improve efficiency Introduced concepts like job specialization, standardization, and performance based rewards. 2) Henri Fayol (Administrative Management) Defined 14 universal principles of management (e.g. division of work, authority, and responsibility) Focused on organization structure and leadership. 3) Max Weber (Bureaucratic Management) Human Relations Era: 1) Elton Mayo (Hawthorne Studies) Found that employee morale and recognition significantly affect productivity. Shifted focus to employee satisfaction, teamwork, and leadership. Example: Modern Employee Engagement Programs Modern Era: 1) Systems Theory: Organizations function as systems with independent parts. 2) Contingency Theory: Situation-based; Management practices should adapt to specific circumstances (flexible approach). 3) Total Quality Management (TQM): Focuses on continuous improvement and customer satisfaction. 14 Principles of Management (Henro Payol): 1. Division of Labor 2. Authority - authority should equal the responsibilities held 3. Discipline - required for task completion and respect 4. Unity of Command - workers should report to only one superior 5. Unity of Direction - there should only be one manager, and one plan with the same objective 6. Subordination of Individual Interests to General Interests - organization’s goals and objectives should be higher than own individual interests 7. Remuneration - rewards should be fair; motivates employees 8. Centralization - each task should have an appropriate centralization 9. Scalar Chain - there should be a clear line of hierarchy 10. Order - keep workplace & workers in order 11. Equity - treat employees with justice & kindness 12. Stability of Tenure Personnel - minimize work turnover to accomplish work faster 13. Initiative - let workers have their own freedom 14. Esprit de Corps - encourage harmony, rapport, team building, etc. Modern Theories: 1. Behavioral Theories: Focused on leadership, motivation, and team dynamics. 2. System Approach: Independence of different departments within an organization 3. Contingency Theory: Suggest that no single management approach works in every situation Management by Objectives vs. Management by Exceptions MBO: Definition: A proactive approach where objectives are set objectively between managers and employees; goal setting. Key Process: 1. Setting clear measurable goals 2. Monitoring progress 3. Evaluating outcomes. MBE: Definition: A reactive approach where managers only address significant deviations from the norm; problem solving. Key Process: 1. Establishing benchmarks 2. Addressing issues only when performance falls outside acceptable limits LEVELS OF MANAGEMENT: 1. Top-Level Management: - Role: Set organizational vision, develop strategies, and make key decisions  - Examples: CEO, CFO, Board of Directors 2. Middle-Level Management: - Role: Translate strategies into actionable plans and coordinate departments - Examples: Department heads, regional managers 3. Lower-Level Management: - Role: Supervise daily operations, motivate employees, and handle immediate challenges - Examples: Team leaders, foremen, and supervisors. MANAGEMENT STYLES: THEORY X-THEORY Y HYPOTHESIS Theory X - autocratic/authoritarian; perceive employees as lazy, use rewards to motivate; rigid, causes discouragement; punishment-reward style Theory Y - participative: total opposite of theory x; democratic; downside: lenient workers, lots of inputs; hard to reach a final decision; produces better performance and results as it encourages creativity and participation. 1) Autocratic: Manager makes all decisions and controls all activities. Best for situations requiring quick decisions. Examples: Military leadership 2) Democratic: Employees participate in decision-making. Encourages creativity and teamwork. Example: A marketing strategy agency brainstorming campaigns. 3) Laissez-Faire: Minimal supervision; employees work independently Works TYPES OF NON-HIERARCHICAL MANAGEMENT: 1) Flat Structure: Few layers of management. Encourages open communication. Example: Startups 2) Agile Management: Teams adapt quickly to changes. Common in software development. 3) Holacracy: Decision-making authority is distributed among roles. Reduces the need for formal management positions. ORGANIZATIONAL STRUCTURES: 1. Organization Chart Visual representation of an organization’s structure. Shows roles, hierarchies, and relationships. 2. Hierarchical Structure: Traditional pyramid structure with clear authority levels  Best for large, complex organizations Example: Government departments. 3. Flat Structure: Fewer management levels, promoting flexibility. Best for small or fast-moving organizations. Example: Small businesses or tech startups. ORGANIZATIONAL BEHAVIOR: Definition: Study of how individuals and groups behave within an organization. Importance: Helps managers understand employee motivation, leadership effectiveness, and team dynamics. Key Concepts: 1. Motivation: Factors that drive employees to perform (e.g., rewards, job satisfaction) 2. Leadership: Styles and methods to influence employees effectively. 3. Culture: The shared values and practices within an organization MANAGING, LEADING & SUPERVISION - often used synonymously - differs within an organization - leadership integrates management and supervision; ex: in business - in hierarchical system Upper Level - organization; responsive - executives; top of the hierarchy - difficult to distinguish with the middle management - Ex: hospital admins, CEOs, COOs, direction of finance - goals and strategies of the organization Middle Level - Clerical or administrative managers - responsible for lower-level management & subordinates - usually not included in the system - “flattening” of management Lower Level - employees or staff that does not have a management position; subordinates; ex: chief PTs - First level; supervision; junior level; lead PT; seasonal employee - authentic authority and leadership skills Board of trustees are not involved in the management hierarchy. FUNCTIONAL CATEGORIES OF MANAGERS 1. Administrative Managers - broad understanding of the organization; operate of functional ideals 2. Financial Managers - financial resources 3. Human Relations Manager - hirings of employees with salary & benefits; relay labor laws 4. Marketing Manager - materials, strategies & connections to promote 5. Operations Manager - oversees the system that create an organization 6. Sales Manager - sells services and products to consumers; should have outward personality 7. Specialized Needs Manager MANAGEMENT SKILLS Technical Skills - ability to use knowledge, methods, techniques & equipments needed for the performance of specific tasks. Human Skills - able to work with people - effective communication, management and leadership skills Conceptual Skills - ability to understand the complexities of organization MANAGEMENT PROCESS 1. Planning - set objectives & goals 2. Organizing - gather resources (people, equipments, etc.) & integrate to planning 3. Motivation - influence employees to work appropriately 4. Controlling - overseeing certain projects. MANAGEMENT STYLES - analyzed from the view of company success and employee satisfaction; approach the manager Theory X vs. Theory Y Theory X: aka autocratic style by Douglar McGregor; believes that only the manager operates and control Theory Y: aka laissez-faire/democratic style; employees make decision on their own to produce service/product Hershey & Blanchard 1. Charismatic Style - personality driven 2. Consultative - ask advice 3. Delegating - distribute tasks 4. Persuasive 5. Transactional 6. Transformational Others: - Directing - Delegating - Supporting - Coaching LEADERS & LEADERSHIP - OD devotes itself in understanding how organizations are created; as well as examining leaders and leadership. - the solution to what creates lender and exactly what is leadership; remains elusive Collin’s published seminal work investigating org. leaders & what characters create a successful leader: Five-Level Leadership Proposoaal Level 1: highly capable individual Level 2: contributing team leader; valuable; works well with group setting Level 3: competent managers; similar with level 2; multi-disciplinary Level 4: effective leaders; more involved with politics; power of influence Level 5: executives; focus more on work seen by others; work speaks for itself Five-Level Leadership Proposal: disciplined people ≠ hierarchy (not necessary); disciplined thought = bureaucracy (not necessary) DECISION-MAKING MANAGEMENT - focus on providing managers tools to arrange current situations - the point where the organization needs things to happen Methodology - refers to how management will approach decision-making process - project management, operational planning, or business planning - performance management, quality improvement, or performance improvement Management choice can be influenced by: culture (through sociability and solidarity) and management style Criteria - management should know answers to these connections: 1. Rate of Process Variability - fluctuations of the performance; should be reduced 2. Rate of Waste - should be reduced 3. Types of Defects or Errors 4. Rate of Organizational Variability - speed of the ability to adapt to changes rapidly 5. 4 MAJOR SYSTEMIC MODELS 1. Malcolm Baldrige National Quality Criteria 2. ISO 9000 3. six sigma 4. lean TOOLS - to support management decision-making efforts; by american society for quality 1. Case analysis tools 2. Situational evaluation tools 3. Process analysis 4. Data collection 5. Quality improvement 6. Idea creation 7. Project planning & implementation 8. Innovation