01_Handout_1 Nature and Conceptb of Management.pdf

BMSH2001 Nature and Concept of Management I. Definition and Functions of Management Management is the process of coordinating and overseeing the work performanc...

BMSH2001 Nature and Concept of Management I. Definition and Functions of Management Management is the process of coordinating and overseeing the work performance of individuals working together in organizations so that they could efficiently and effectively accomplish their chosen aims or goals. It is also defined as “the process of designing and maintaining an environment for efficiently accomplishing selected items” (Altarejos et al., 2016, p. 2). Management functions include the following (Altarejos et al., 2016, p. 2): Planning involves determining the organization’s goals or performance objectives, defining strategic actions that must be done to accomplish them, and developing coordination and integration activities. Some planning tools are as follows (Frias & Orjalo, 2016, p. 5): o Simple Frequency Count – It allows prioritization of problems that need to be addressed. The simple frequency count may be likened to an election tally, where the candidate with the highest votes gets chosen by the voting public. As a planning tool, the simple frequency count identifies the issues that receive the greatest number of votes as the main or priority issues. o Flowchart – It is a tool that puts key processes in symbolic patterns that are easy to understand. The symbols represent relationship sequences between and among different tasks. o Gantt Charts – These are useful for scheduling and planning projects and are considered visual tools in implementing action plans. o Activity Network Diagram (AND) – It is a planning tool used to diagram activities in sequence from start to finish. o Plan-Do-Check-Act (PDCA) – It is a problem-solving model used to improve organizational processes. Organizing demands assigning tasks, setting aside funds, and bringing harmonious relations among the individuals and workgroups/teams in the organization. Some organizing methods and structures are as follows (Frias & Orjalo, 2016, p.6): o Downsizing – It involves planned removal of positions or jobs. o Rightsizing – It involves achieving an appropriate size for effective enterprise performance. o Customer Relations Management (CRM) – This involves an enterprise unit tasked to focus on an interactive relationship with customers. o Reengineering – This includes efforts to revolutionize organizational systems and processes to satisfy customer needs. o Total Quality Management (TQM) – This is an integrative approach to management that supports the realization of customer satisfaction using various tools and techniques that result in high-quality goods and services. o Just-In-Time (JIT) – It calls for subassemblies and apparatus to be produced and delivered to process stages exactly at the time needed. Staffing indicates filling in the different job positions in the organization’s structure; the factors that influence this function include the size of the organization, types of jobs, the number of individuals to be recruited, and some internal or external pressures. Leading entails influencing or motivating subordinates to do their best so that they would be able to help the organization’s endeavor to attain their set goals. 01 Handout 1 *Property of STI  [email protected] Page 1 of 5  BMSH2001 The common leadership perspectives are as follows (Frias & Orjalo, 2016, p.7): o Charismatic Leadership – It is characterized by dominant and self-confident leaders. Charismatic leaders can stimulate a sense of adventure and enthusiasm in their followers. o Transformational leadership – It is characterized by charisma (or charismatic leadership traits), aptitudes (capabilities of giving their followers individualized attention), and intellectually stimulating qualities. Controlling involves evaluating and, if necessary, correcting the performance of the individuals or workgroups/teams to ensure that they are all working toward the previously set goals and plans of the organization. These are the approaches used in the control function of management (Frias & Orjalo, 2016, p.7): o Education and communication – These are commonly used in situations where there is a lack of or inaccurate information. o Participation and involvement – These are commonly used in situations where initiators face a lack of information for the change and other participants have the power to resist the same. o Facilitation and support – These are commonly used in situations where adjustments resulting from change must be made. o Manipulation and co-optation – These are often the quickest and most inexpensive solution when there is resistance. Management functions will all go to waste if coordination (the harmonious, integrated action of various parts and processes of an organization), efficiency (the character of being able to yield the maximum output from a minimum amount of input), and effectiveness (being adapted to produce an effect to be able to do things correctly) are not practiced by an organization’s appointed managers. In other words, top-level managers, middle-level managers, and team leaders or supervisors must all be conscious of the said practices of successful organizations as they perform their management functions. When applied to management functions, these practices ensure that all individuals, groups, or teams are harmoniously working together and moving toward the accomplishment of the organization’s vision, mission, goals, and objectives. II. Evolution of Management Theories 1. Scientific Management Theory This management theory makes use of the step-by-step, scientific methods for finding the single best way to do a job. Frederick W. Taylor (1856–1915) is the proponent of this theory and is known as the father of scientific management. While working in a steel company in Pennsylvania, USA as a mechanical engineer, he could not help but notice the workers’ mistakes and inefficiencies in doing their routine jobs, their lack of enthusiasm, and the discrepancy between their abilities and aptitudes and their job assignments, thus resulting in low output. Because of these observations, he tried to identify clear guidelines for the improvement of their productivity. As such, Taylor’s scientific management principles are as follows: o Develop a science for each element of an individual’s work to replace the old rule of thumb method. o Scientifically select and then train, teach, and develop the worker. o Heartily cooperate with the workers to ensure that all work is done in accordance with the principles of the science that have been developed. o Divide the work and responsibility almost equally between management and workers. 01 Handout 1 *Property of STI  [email protected] Page 2 of 5  BMSH2001 2. General Administrative Theory This theory concentrates on the manager’s functions and what makes up good management practice or implementation. Henri Fayol (1841–1925) and Max Weber (1864–1920) are the personalities most commonly associated with it. Fayol’s 19th-century writings were concerned with managerial activities, which he based on his experience as a managing director in a big mining company. He believed that management is an activity that all organizations must practice and view it separately from all other organizational activities such as marketing, finance, research and development, and many others. Weber, a German sociologist, wrote in the early 1900s that ideal organizations, especially large ones, must have authority structures and coordination with others based on what he referred to as “bureaucracy.” Present-day organizations still make use of Weber’s structural design. Bureaucracy According Henri Fayol’s Management Principles to Max Weber 1. Work division or specialization According to Weber, 2. Authority bureaucracy is an 3. Discipline organizational form 4. Unity of command distinguished by the 5. Unity of direction following components: 6. Subordination of individual interest to general interest division of labor 7. Remuneration or pay hierarchical 8. Centralization identification of job 9. Scalar chain of authority positions 10. Maintenance of order detailed rules and 11. Equity or fairness regulations 12. Stability or security of tenure of workers impersonal 13. Employee initiative connections with 14. Promotion of team spirit or esprit de corps one another 3. Total Quality Management (TQM) Theory TQM is a management philosophy that focuses on the satisfaction of customers, their needs, and their expectations. Quality experts W. Edwards Deming (1900–1993) and Joseph M. Juran (1904–2008) introduced this customer-oriented idea in the 1950s; however, the concept had few supporters. The Americans did not immediately take to the idea since the United States was enjoying supremacy in the global market at the time. Japanese manufacturers, on the other hand, took notice of it and enthusiastically experimented on its application. When Japanese firms began to be recognized for their quality products, Western managers were forced to give a more serious consideration of Deming’s and Juran’s modern management philosophy that eventually became the foundation of today’s quality management practices. 01 Handout 1 *Property of STI  [email protected] Page 3 of 5  BMSH2001 Deming’s 14 Points for Top Management Fitness of Quality According to Juran 1. Create constancy of purpose for improvement 1. Quality of design – through market of products and services. research, product, and concept 2. Adopt the new TQM philosophy. 2. Quality of conformance – through 3. Cease dependence on mass inspection by management, manpower, and doing things right and doing it right the first technology time. 3. Availability – through reliability, 4. End the practice of awarding business on the maintainability, and logistic support basis of price tag alone. 4. Full service – through promptness, 5. Constantly improve the system of production competence, and integrity and services. Juran’s Quality Planning Roadmap 6. Institute training. 1. Identify your customers. 7. Adopt and institute leadership. 2. Determine their needs. 8. Drive out fear. 3. Translate them into one’s language. 9. Break down barriers between staff areas. 4. Develop a product that can respond 10. Eliminate slogans; focus on correction of to needs. defects in the system. 5. Develop processes that can produce 11. Eliminate numerical quota for the workforce. those product features. 12. Remove barriers that rob people of “pride of 6. Prove that the process can produce workmanship.” the product. 13. Encourage education and self-improvement 7. Transfer the resulting plans to the for everyone. operating forces. 14. Take action to accomplish the transformation. 4. Organizational Behavior (OB) Approach The OB approach involves the study of the conduct, demeanor, or action of people at work. Research on behavior helps managers carry out their functions—leading, team building, and resolving conflict, among others. Robert Owen, Mary Parker Follet, Hugo Munsterberg, and Chester Barnard were the early supporters of this approach. During the late 1700s, Owen noticed the lamentable conditions in workplaces and proposed ideal ways to improve the said conditions. Follet, in the early 1900s, introduced the idea that individual or group behavior must be considered in organizational management. Likewise, in the early 1900s, Munsterberg proposed the administering of psychological tests for the selection of would-be employees in companies. Barnard, in the 1900s, suggested that cooperation is required in organizations since it is mainly a social system. III. Functions, Roles, and Skills of a Manager The following are the functions and roles of a manager: Top-level managers are the general or strategic managers who focus on long-term organizational concerns and emphasize the organization’s stability, development, progress, and overall efficiency and effectiveness. They, too, are concerned with the organization’s interrelationships with their external environment. Chief executive officers (CEOs), chief operating officers (COOs), presidents, and vice presidents are examples of top-level managers in big corporations, and they have authority over all other human resources of their organization. Traditionally, top-level executives set the company’s general direction by designing strategies and controlling various resources. At present, however, they must also act as organizational guides who must elaborate on the broader purpose of their organizational existence so that their subordinates could identify and be committed to its success. 01 Handout 1 *Property of STI  [email protected] Page 4 of 5  BMSH2001 In summary, the functions and roles of a top-level manager are as follows (Frias & Orjalo, 2016, p. 9): o Establish high performance standards. o Institutionalize a set of norms and values to support cooperation and trust. o Create corporate purpose and ambition. Middle-level managers are the tactical managers in charge of the organization’s middle levels or departments. They formulate specific objectives and activities based on the strategic or general goals and objectives developed by top-level managers. Their traditional role is to act as go- between higher and lower levels of the organizations and announce and interpret top management priorities to human resources in the middle hierarchical level of the company. It has been observed that the middle-level managers are more aware of the company’s problems compared to managers at the higher level because of their closer contacts with customers, frontline managers, and other subordinates. To be an ideal middle-level manager, one must be creative so that they could provide sound ideas regarding operational skills as well as problem-solving skills that will keep the organization afloat. In summary, the functions and roles of a middle-level manager are as follows (Frias & Orjalo, 2016, p.9): o Develop individuals and support their activities. o Link dispersed knowledge and skills across diverse units. o Manage the tension between short-term purpose and long-term goals. Frontline or lower-level managers are also known as operational managers and are responsible for supervising the organization’s day-to-day activities; they are the bridges between management and non-management employees. Traditionally, they are controlled and instructed by top- and middle-level managers to follow their orders in support of the organization’s major strategy. Lately, their role has been expanded to some large companies, as they are now encouraged to be more creative and intuitive in the exercise of their functions so that they could also contribute to their company’s progress and the development of new projects. In summary, the functions and roles of a lower-level manager are as follows (Frias & Orjalo, 2016, p.9): o Create and pursue new growth opportunities for the business. o Attract and develop resources. o Manage continuous improvement within the unit. The following are the required skills of a manager: Human skills enable managers at all levels to relate well with people. Communicating, leading, inspiring, and motivating people are important to develop harmony in the organization. In addition, dealing with people, both in the organization’s internal and external environment, is inevitable, so managers must develop these human skills. Conceptual skills enable managers to think of possible solutions to complex problems. Through their ability to visualize abstract situations, they develop a holistic view of their organization and its relation to the wider external environment surrounding it. Top-level managers must have these conceptual skills in order to be successful in their work. Technical skills are also important for managers so that they can perform their tasks with proficiency with the use of their expertise. Lower-level managers find these skills very important because they manage the non-managements workers who employ varied techniques and tools to be able to yield good quality products and services for their company. References: Altarejos, A., Cabrera, H., & Riaz, B. (2016). Organization and management. Vibal Group, Inc. Frias, S. & Orjalo, V. (2016). Organization and management: Concepts, caselets, and exercises. Phoenix Publishing House, Inc. 01 Handout 1 *Property of STI  [email protected] Page 5 of 5