Management Principles PDF

Management Principles Managers Functions - Key Management functions- Organising, Planning, Controlling, Leading, Motivating, Staffing - **Management- concentrates on receiving specific goals through the deployment of human, financial, knowledge and physical assets.** - Managers 1....

Management Principles Managers Functions - Key Management functions- Organising, Planning, Controlling, Leading, Motivating, Staffing - **Management- concentrates on receiving specific goals through the deployment of human, financial, knowledge and physical assets.** - Managers 1. Top management- responsible for overall mission 2. Middle management- translate general plans 3. Front management- responsible for directing, supervising and managing Mintzberg related 10 common managerial roles relating to three core domains. 1\. Interpersonal 2\. Informational 3\. Decisional **What do these roles involve?** Interpersonal: - Acting as a figurehead, representing the organisation at external events. - Acting as leader, directing and coordinating people. - Acting as a liaison, dealing with people who are outside of the company. Informational: - Acting as monitor, seeing, receiving, screening information. - Acting as a disseminator, sharing knowledge or data. - Acting as spokesperson, providing others with information on organisation's official position. Decisional: - Acting as an Entrepreneur, designing & implementing new projects, business - Acting as a disturbance handler, dealing with problems beyond immediate control - Acting as a resource allocator, choosing between competing demands - Acting as a negotiator, discussion and reaching agreement Classical Approaches 1. Scientific Mangement 2. Bureaucracy 3. Administrative 4. Human Relations Scientific Management -- Frederick Taylor 1\. The development of a true science of work 2\. Scientific selection and development of human capital 3\. Co- operation between managers and workers 4\. Division of work between workers and manager Bureaucracy- Max Weber 1\. Division of Labor in task allocation 2\. Hierarchy in reporting relationships 3\. Selection for technical merit 4\. Career orientation for managers as professionals 5\. Formalization of rules and procedures 6\. Impersonality and uniformity in the treatment of employees Administrative Management- H Fayol - Fayol concluded that all business should be divide up into sic essential areas 1. Commercial 2. Technical 3. Security 4. Finance 5. Accounting 6. Managerial Human Relations- Elton Mayo & Hawthorne experiments - Social factors were more important than physical fact - Uncovered the existence of the informal organization co-existing alongside the formal organization - Studies led to the discovery of the Hawthorne Effect in experimental design Contemporary Approaches 1. Quantitative Management 2. Organizational Behavior- Douglas Mcgregor 3. Contingency Theory (Management practice is context dependant) **Globalization**- movement and change in a range of domain areas leading to altered: Economic Conditions Social Conditions Enterprise Conditions Workforce Conditions Regional **trading blocs or alliances** shape global competition; -European Union (EU) -North American Free Trade Agreement (NAFTA) -Mercosur (South America) -The Association of Southeast Asian Nations (ASEAN) - 'BRICs' - the four large emerging economies of Brazil, Russia, India and China All organisations operate within an external global business environment, which is a critically important area to consider. The external environment has two main components -- **a macro environment and a competitive environment** - The macro global environment is made up of factors that affect all organisations. Factors include the political--legal, economic, technological and social--ethical contexts. All of these are forcing change for organisations by increasing competitiveness and complexity. - The competitive environment is the immediate environment facing the organisation. Factors in the competitive environment are competitors, suppliers, customers, new entrants and substitutes Organisations will face competition and to remain competitive they must develop a sustainable source of competitive advantage typically through three major strategies 1. Cost Leadership Strategy 2. Differentiation Strategy 3. Focus Strategy PLANNING **Planning- "T**he process of systematically developing action programmes through analyzing, evaluating and selecting among different opportunities aimed at reaching agreed business objectives" 1. Strategic Planning - Long term - Takes place at top level 2. Tactical Planning - Medium term - Deals with ongoing operations 3. Operational Planning - Deals with short term day to day operations - Dimensions of plans- Repetitiveness, Time, Scope, Level - Planning Process; 1. Define Corporate Objectives 2. Conduct internal and external analysis 3. Revise objectives 4. Develop Strategic plan 5. Develop tactical plan 6. Develop Operational plan - Techniques for improving planning - MBO(Management by objectives) - At business level through a focus on the internal and external environment - SWOT Analysis - Miles and Snow Typology **Prospector** -typically involved in a high growth innovative industry and continually looks for new opportunities and markets **Defender**- maintain growth levels by protecting current territory and keeping current customers well served **Analyser** - combination of 1 & 2, keeps current market with a moderate degree of innovation **Reactor**- organisation has no clear approach. - Consulting Group Matrix - As a management planning technique, the focus is on the Product Portfolio - Considers (1) **the rate of growth within the market and (2) the market share held by the organisation** Decision Making The selection of a particular course of action from among alternatives Types 1. Programmed (well structured, routine, information available) 2. Non -- programmed ( Poorly structured, new, little information) Conditions - Certainty - Risk - Uncertainty Process 1. Problem identification 2. Identification of alternative solutions 3. Evaluating alternatives 4. Choice of alternatives 5. Implementing the decision 6. Evaluating the descion Approaches to Decision Making - The rational model - Bounded rationality (intuition and judgement are required ) - Escalation of commitment ( poor decision often escalates) Causes -- sunk cost and confirmation bias - Political model ( concentrates on the impact of organisational politics) Sources of power in organisations; legitimate, reward, expert, coercive Barriers to making good decisions - Psychological barriers - Illusion of control - Discount the future - The quality of group decisions can be enhanced by three main techniques: brainstorming, the Delphi technique and nominal grouping. ORGANISATIONAL STRUCTURE AND DESIGN Organisational structucture is divided into two main components; 1. Structural Configuration- refers to the size and shape of the structure as shown in an organisational chart ( Division of labour, spans of control, hierarchical levels and departmentalization) - Four main types of departmentalisation exist: functional; product; geographical; and mixed. 2. Structural Operation- refers to the process & operation of an organisations structure. (Formalization, decision-making, responsibility and authority) - Mintzberg identifies a range of structures: a simple structure; a machine bureaucracy; a professional bureaucracy; a divisionalised structure; and an adhocracy. MANAGING HUMAN RESOURCES HRM- process of devising & executing policies and strategies in relation to the employment of staff - Demand analysis- estimation of quality and quantity in HR - Supply analysis- estimation of quality and quantity of available labour - Estimating Deficits/ Surpluse - Prepare Action plan- to cover recruitment, selection, training and development and promotions **Recruitment** - Attracting a group of potential candidates - 2 stages -- background stage and recruitment stage **Selection** Interviews and reference checks **Pay and Benefits** - Intrinsic rewards- spring from the job itself and include autonomy, responsibility and challenge - Extrinsic rewards- more tangible in nature and include pay ,job security and working conditions **Performance Appraisal** - A periodic assesment of employees performance - Ranking, paired comparison, critical incident, free form/narrative - Training refers to a planned effort to modify or develop knowledge, skills and attitudes through learning experiences i.e., the retrospective correcting of a skills gap which has been identified - Development is a broader concept referring to general growth of an individuals skilled and abilities through conscious and unconscious learning i.e., referring to future potential and requirements in the talent pool Key leadership functions: - Task: task completion Cultural: creating and sustaining a performance culture Symbolic: leaders are important because of what they stand for Political: leaders' role in relation to outsiders Relational: the nature of the relationship between the leader and the followers Different Leadership Schools of thought 1. The trait approach - Also known as the "great man" theory - Intelligance, initiative, maturity, need for power etc. 2. The Behavioral Approach - critical specific behaviours differentiate leaders from non -- leaders. - Three main research studies associated with this approach 1\. Ohio State University Leadership studies (considerate style, initiating structure style) 2\. University of Michigan Leadership studies (production and employee orientated) 3\. Blake and Mouton Managerial Grid ("concern for people and production") 3. Contingency Approach - Contingency theories are based on the premise that predicting leadership success and effectiveness is more complex than the simple isolation of traits or behaviours. - 2 Main Studies; Fiedler's Least Preferred Co worker House's Path Goal Theory 4. The Charismatic Approach - Directed at identifying behaviours that differentiate charismatic leaders from non charismatic counterparts - Transactional leadership - An exchange relationship between leaders and followers which becomes possible when there is no outstanding sense of impending threat or anxiety. - Transformational Leadership - More about leaders adjusting to values, beliefs and needs of their followers. They seek to motivate and inspire workers through influencing rather than directing others. MOTIVATION - Content vs process theories Content theories of motivation 1\. Maslow's hierarchy of needs (physiological \> safety\> social\>esteem\> self actualization) 2\. Alderfer's Existence relatedness growth (ERG) theory (existence \> relatedness \> growth) 3\. McClelland's achievement theory ( achievement, affiliation, power) 4\. Herzberg's Two factor theory (Factors that led to **satisfaction** he termed "motivators" and those that led to **dissatisfaction** "hygiene factors" ) Process theories of motivation 1.**McGregor'sTheory X** ( dislike work and do as little as possible ), **Theory Y**(like work and are very productive) 2.**Vroom'sExpectancy Theory** (Motivation = Expectancy x Instrumentality x Valence) 3.**Adam's Equity Theory** (It focuses on people's feelings of how fairly they have been treated in comparison with the treatment received by others) CONTROL **Control**- the process of ensuring the effective and efficient achievement of organisational goals Process; 1. Setting performance standards 2. Measuring and comparing preformance 3. Taking corrective action Types Feedforward Control -future directed and aimed at preventing mistakes before they occur. Concurrent Control - control of the transformation of inputs into outputs (Real Time Control) Feedback Control- control of the outputs to ensure that they meet standards