ORGMAN Notes PDF - Nature and Concepts of Management

Just in case for LESSON 1 :3 ​ ORGMAN L2: NATURE AND CONCEPTS OF MANAGEMENT 2/14/2025 ★​ MANAGEMENT ★​ THE FOUR MANAGEMENT FUNCTIONS ​ Means to maintain a firm’s competitive (Daft, 2017) advantage. ​ Process of p...

Just in case for LESSON 1 :3 ​ ORGMAN L2: NATURE AND CONCEPTS OF MANAGEMENT 2/14/2025 ★​ MANAGEMENT ★​ THE FOUR MANAGEMENT FUNCTIONS ​ Means to maintain a firm’s competitive (Daft, 2017) advantage. ​ Process of planning, organizing and controlling the activities of an organization. EFFICIENCY EFFECTIVENESS Maximize output Attain an intended with minimum objective input “Doing things “Doing the right right” thing” ★​ NATURE AND TYPES OF ORGANIZATION Avoid wasting time Meet the desired and effort goal regardless of THE BUSINESS ORGANIZATION the amount of ​ FORM: One decision a business owner input required should assess. ​ CONSIDERATIONS: Careful analysis 1. Size and nature of business and critical thinking 2. Level of control 3. Expected profit ★​ FACTORS INFLUENCING 4. Tax implications MANAGEMENT 5. Vulnerability to lawsuits ★​ ROLE AND SKILLS OF MANAGERS LEVELS OF MANAGEMENT ​ ​ ★​ 10 MANAGEMENT ROLES INTERPERSONAL INFORMATIONAL DIRECTIONAL Figurehead Monitor Entrepreneur Leader Disseminator Disturbance Handler Liaison Spokesperson Resource Allocator Negotiator ★​ MANAGEMENT SKILLS 1. CONCEPTUAL SKILLS ​ Ability to analyze a particular situation. ​ Identify new opportunities and resources. ​ Decide on best strategies and courses of action. 2. HUMAN SKILLS ​ Manager’s capability to motivate, lead and control the behavior of his/her subordinates. ​ Know how to communicate, coordinate with his/her employees effectively. 3. TECHNICAL SKILLS ​ specific competencies that a manager should have in relation to the type of task assigned to him/her ​ related to the specialization of a manager needed in a particular department, unit, or area where he/she is assigned ORGMAN L3: CLASSICAL MANAGEMENT THEORIES 2/14/2025 ​ ★​ THE DEVELOPMENT OF MANAGEMENT ​ Important cornerstone of the Efficiency Movement (Early 20th Century) 1100 BC Chinese: Four managerial ​ LIMITATIONS: functions ​ Operations become routinary ​ Money became the sole incentive for 400-350 BC Greek: Scientific workers Approach ​ Workers felt that the piece-rate technique might lead managers Romans: Management ​ FOUR PRINCIPLES OF SCIENTIFIC decentralization MANAGEMENT (Frederick Winslow Taylor) MEDIEVAL PERIOD Venetians: 1. Replace rule-of-thumb methods with those Assembly line, that are scientifically proven. inventory system, building 2. Select, train, and develop each worker warehouses based on scientific methods. 1780 - 1840 Economies of 3. Cooperate with the workers to ensure that scale scientific methods are being observed and EARLY 20th Business Schools implemented in their work. CENTURY 4. Divide work between managers and workers 20th CENTURY TO US: Manufacturing to ensure that scientific management PRESENT as core business principles are applied by the managers in planning tasks and by the workers in performing their tasks. ★​ CLASSICAL MANAGEMENT THEORIES ★​ ADMINISTRATIVE MANAGEMENT THEORY 1. SCIENTIFIC MANAGEMENT THEORY ​ Introduced in the Early 20th Century by ​ Application of scientific methods for Henry Fayol. the purpose of redesigning the process ​ Focuses on the overall management of to increase efficiency ​ IMPORTANT ADVOCATES: the organization and emphasizes on the role of managers as administrators. ​ Frederic W. Taylor ​ Henry Gantt ​ Frank and Lilian Gilbreth ★​ FIVE FUNCTIONS OF ADMINISTRATIVE OTHER CONTRIBUTORS OF ADMINISTRATIVE MANAGEMENT MANAGEMENT 1. PLANNING MAX WEBER CHESTER MARY 2. ORGANIZING BARNARD PARKER 3. COMMUNICATING FOLLET 4. COORDINATING Studies on public The Functions of the Wrote Dynamic 5. CONTROLLING administration and bureaucracy Executive: Organization: emphasizes the ever-changing situations ★​ FOURTEEN PRINCIPLES OF managers have to deal with ADMINISTRATIVE MANAGEMENT 1. Division of work into specialized tasks. Bureaucratic Structures To formulate the organization’s Recognized the human element 2. Authority of managers to delegate work mission in management and tasks to the employees 3. Discipline Allows specialization of To hire key Emphasize skills employees, collaboration and 4. Unity of command mutual cooperation 5. Unity of direction 6. Predominance of the general interest of Enable workers to work To maintain together and contribute organizational the organization. toward communication 7. Remuneration of the efforts of performing a common task employees. 8. Centralization 9. Scalar chain 10. Order 11. Equity 12. Stability and tenure of personnel 13. Initiative 14. Esprit de corps ★​ BUREAUCRACY ​ Focuses on a formal rigid structure and legitimate authority in organizations. ​ Relationships are strictly impersonal and free from personal interests. ​ Laws and regulations are set. ​ Suited for organizations with routine tasks. ​ ORGMAN L4: HUMAN MANAGEMENT THEORIES 2/14/2025 ★​ HUMAN RELATIONS THEORY ​ Abraham Maslow argued that individual behavior is primarily influenced by ​ Established in the 1920s and pioneered certain needs. by Elton Mayo, an Australian psychologist who used his expertise to ​ These needs are described according to improve the workplace and focus on a hierarchy, the lower level needs must human factors. be met first before progressing. ​ Worker motivation is critical for ​ Requires managers to ensure the improving productivity. essential needs of their workers to be met in the workplace to guarantee HAWTHORNE STUDIES STARTED THE maximum performance. FOLLOWING IN WORKPLACES: ★​ McGREGOR’S THEORY OF a. Set number of work hours MOTIVATION: THEORY OF X AND b. Break times THEORY Y c. Improvements in lighting in work areas ​ Formulated by Douglas McGregor which d. Close supervision by managers represented two ends of how employees view work. ★​ MASLOW’S HIERARCHY OF NEEDS THEORY X THEORY Y Work avoiding Work is natural Need to control Capable of self-direction Avoid responsibility Seek responsibility Workers seek Can make good security decisions ​ Theory X created adversarial ​ environment while Theory Y approach resulted to empowered workers and more cooperative spirit. ★​ BARNARD’S COOPERATIVE SYSTEMS ​ Formulated by Chester I. Barnard. ​ Organizations are cooperative systems, integrating the contributions of individual participants. ​ Systems of cooperation were a critical, essential element of effective organization functioning. ★​ SUMMARY ​ Aims to satisfy social relations and personal fulfillment to motivate employees. ​ Consider employees as people with social and psychological needs. ​ Employees are regarded as the most valuable resource of the organization. ​ ORGMAN L5: MODERN MANAGEMENT THEORIES ​ ★​ QUALITY MANAGEMENT THEORY ​ Focuses on consistency in an organization and minimal to no errors in production. WILLIAM JOSEPH MOSES EDWARDS JURAN DEMING ​ Results in high customer satisfaction and increased revenue. Made the Worked with emergence of Japanese ​ Closely involves managers and quality businesses. employees. perspective in the ​ Kaizen 1950s. ★​ QUANTITATIVE MANAGEMENT Helped japanese Concept of quality THEORY industries management ​ Uses quantitative approaches to arrive improve focuses training for at a management decision. production top and middle BRANCHES: managers. ​ MANAGEMENT SCIENCE - mathematics in problem solving and Methods include Established institute decision making. statistical in 1979, and ​ OPERATIONS MANAGEMENT - apply process control, contributed making ideas from management science in and Japan an industrial dealing with managerial situations. problem-solving power in Asia a techniques decade after WWII ★​ SYSTEMS THEORY ​ Explains how interrelated parts operated together to achieve a common purpose. ★​ CONTINGENCY THEORY ​ Universal theories cannot be applied to ​ Preferred model of business organizations because each organization organization and management. has unique characteristics and is ​ Composed of four elements. (Open or confronted by varied problems. Closed system) ​ Organization’s performance is affected by internal and external factors. ​ Introduced in 1967 by Fred Fiedler ​ Fiedler’s Contingency Model: Personality of the leader determines how well he or she addresses 3. REVIEW PROGRESS situations in the workplace. ​ A periodic progress review. ​ Other Experts: ​ Ensure that action plans are working ​ Paul Lawrence ​ Point of MBO is to achieve goals. ​ Jay Lorsch ​ Can be changed if goals are not being ​ James Thompson met. ★​ MANAGEMENT BY OBJECTIVES ​ A method where managers and employees define goals for every department, project, and person to use to monitor subsequence performance. ★​ FOUR MAJOR ACTIVITIES OF MANAGEMENT BY OBJECTIVES 1. SET GOALS ​ Involves employees at all levels and looks beyond day-to-day activities to answer, “What are we trying to accomplish?” 2. DEVELOP ACTION PLANS ​ Defines the course of action needed to achieve the stated goals. 3. APPRAISE OVERALL PERFORMANCE ​ Evaluate whether annual goals have been achieved for both individuals and departments. NOTE: Most managers believe that they are better oriented toward goal achievement when MBO is used. ★​ COMPETITIVE STRATEGY ​ Michael Porter: Father Of Competitive Strategy ​ Techniques for analyzing industries and competitors. ​ Provides features for internal and external competition among industries