Organization Management PDF

ORGANIZATION MANAGEMENT ORGANIZATION - a body built for a collection of individuals who join together to achieve somecommon goals and objectives bounded by legal entities. FOUNDERS - the person or people who start the organization The founders are responsible for performing the above legal...

ORGANIZATION MANAGEMENT ORGANIZATION - a body built for a collection of individuals who join together to achieve somecommon goals and objectives bounded by legal entities. FOUNDERS - the person or people who start the organization The founders are responsible for performing the above legal procedures or hiring someone KEY COMPONENTS OF AN ORGANIZATION VISION AND MISSION: The Purpose And Goals That Guide The Organization. STRUCTURE: The Way Roles And Responsibilities Are Arranged Within The Organization, Typically Depicted In An Organizational Chart. CULTURE: The Values, Beliefs, And Behaviors That Shape How Work Is Done And How Employees Interact Within The Organization MISSION AND VISION Mission and vision both relate to an organization’s purpose and are typically communicated in some written form. Mission and vision are statements from the organization that answer questions about who we are, what do we value, and where we’re going. MISSION STATEMENT Crafting a mission statement that accurately represents your business’s purpose and values is key to driving alignment and guiding your strategic decisions. A mission statement communicates the organization’s reason for being, and how it aims to serve its key stakeholders. Mission statements are often longer than vision statements. How to create Mission Statement 1. Define your purpose: Start by clarifying the fundamental reason your business exists. Reflect on the core values and beliefs that drive your operations and shape your company’s identity. Understanding your purpose will help you articulate it effectively in your mission statement. 2. Identify your target audience: Your mission statement should clearly state who your business serves. Consider your ideal customers and the specific needs or problems your products or services address. Identifying your target audience helps you tailor your mission statement to resonate with them.  3. Outline what you do: Describe your business’s activities and the solutions it provides. Be concise yet comprehensive, focusing on the key aspects that set your business apart. Clearly communicate the value you deliver and the unique advantages you offer to your customers. 4. Emphasize your values: Your mission statement should reflect your business’s core values and principles. Highlight the ethical standards, beliefs, and guiding principles that underpin your operations. Expressing your values adds depth and authenticity to your mission statement. 5. Keep it clear and concise: A mission statement should be easily understood and memorable. Use concise language that effectively conveys your message. Avoid jargon or complex terminology that might confuse or alienate your audience. 6. Align with your vision: Your mission statement should be closely aligned with your vision statement. It should serve as a roadmap for achieving your vision. Ensure that your mission statement provides a clear direction and purpose that supports your long-term aspirations. 7. Test for relevance and authenticity: Evaluate your mission statement for its relevance to your business and its authenticity. Ask yourself if it accurately represents your company and if it resonates with your employees and customers. Authenticity is crucial to establishing trust and credibility. 8. Revise and refine: Crafting a mission statement is an iterative process. Refine and revise your statement until it captures the essence of your business. Seek feedback from stakeholders, employees, and customers to ensure it accurately reflects your values and purpose. Evolving Language: Early mission statements were often written in dry, formal language. Dual Purpose: A good mission statement serves both as an internal compass and an external promise. VISION STATEMENT - is a future-oriented declaration of the organization’s purpose and aspirations. How to make a Vision Statement 1. Start with clarity: To create an impactful vision, you must have a clear understanding of your business’s values, mission, and long-term goals. Take the time to reflect on what your business stands for and what you ultimately want to achieve. 2. Paint a vivid picture: A compelling vision should paint a vivid and inspiring picture of the future. Use descriptive language and imagery to create a mental image of what success looks like for your business. This helps align your team’s efforts towards a common goal. 3. Make it aspirational: Your vision should stretch the boundaries of what seems possible. Aim high and set ambitious goals that challenge your team to think beyond their comfort zones. An aspirational vision fuels motivation and drives innovation. 4. Ensure it’s achievable: While it’s important to be ambitious, your vision should also be realistic and attainable. Consider the resources, capabilities, and market conditions that will contribute to your success. An achievable vision fosters confidence and encourages action. 5. Align with your purpose: A strong vision should align with your business’s purpose and core values. It should reflect the essence of why your business exists and what it seeks to contribute to the world. When your vision is aligned with your purpose, it becomes a powerful source of inspiration for both you and your team.  6. Communicate and reinforce: A vision is only effective if it’s shared and understood by everyone in your organization. Communicate your vision regularly through team meetings, newsletters, and other internal channels. Reinforce its importance by celebrating milestones and achievements that align with the vision. 7. Cascade down to goals and actions: Break down your vision into actionable goals and initiatives. Create a strategic roadmap that outlines the steps needed to turn your vision into reality. This allows your team to see how their individual contributions contribute to the larger vision. 8. Revisit and refine: As your business evolves, it’s crucial to revisit and refine your vision periodically. Market conditions and internal dynamics may change, requiring adjustments to your long-term direction. Regularly assess your vision’s relevance and make updates as necessary to ensure its continued alignment with your business’s aspirations. ROLES PLAYED BY MISSION AND VISION 1. Communicate The Purpose Of The Organization To Stakeholders, 2. Inform Strategy Development, And 3. Develop The Measurable Goals And Objectives By Which To Gauge The Success Of The Organization’s Strategy. CULTURE in an organization is a powerful force that influences how employees behave, interact, and perform their work. It’s shaped by a combination of values, beliefs, norms, rituals, and behaviors that develop over time, often influenced by the leadership and history of the organization. Qualities of a great organizational culture 1. Alignment to Company Objectives 2. A culture of appreciation 3. A culture of trust 4. Performance Focused 5. Resilience 6. Encompasses Teamwork 7. Integrity and transparency 8. Psychological safety MANAGEMENT - is how businesses organize and direct workflow, operations, and employees to meet company goals. MANAGER - is someone responsible for making sure that a group of people or a department works effectively to achieve specific goals. Think of a manager as the captain of a team. The five basic functions of a manager 1. Planning - Establishing goals for the organization and developing strategies to achieve those goals. 2. Organizing - Arranging resources (such as personnel, finances, and technology) and tasks in a structured way to implement the plans. 3. Leading - Guiding and motivating employees to work effectively toward the organization's goals. 4. Controlling - Monitoring and evaluating progress toward goals to ensure that the organization is moving in the right direction. 5. Staffing - Involves recruiting, selecting, training, and developing the people who work for the organization. HENRI FAYOL - was a French mining engineer, industrialist, and management theorist. He is best known for developing one of the earliest theories of management, which is now referred to as Fayolism. TOTAL – made up of whole QUALITY – degree of excellence a product or service provides MANAGEMENT – act, art or manner of planning, controlling, directing… Therefore, TQM is the art of managing the whole to achieve excellence. TQM – has been defined as an integrated organizational effort designed to improve quality at every level. FAYOL 14 PRINCIPLES 1. Division Of Work: 2. Authority 3. Discipline 4. Unity Of Command 5. Unity Of Direction: 6. Subordination Of Individual Interests To The General Interests: 7. Remuneration 8. Centralization 9. Scalar Chain: 10. Order 11. Equality 12. Stability Of Tenure Of Personnel: 13. Initiative 14. Espirit De Corps PRINCIPLES/ELEMENTS OF TQM 1. Focus on customer 2. Employee Involvement 3. Continuous improvement 1. Foundation It includes: Ethics, Integrity and Trust 2. Building Bricks - It includes: Training, Teamwork and Leadership 3. Binding Mortar - It includes: Communication 4. Roof-It includes recognation MANAGEMENT - CO-ORDINATION OF HUMAN EFFORT AND MATERIAL RESOURCE toward the organization to achieve its objectives. MANAGERS someone who COORDINATES AND OVERSEES the work of other people so that organizational goals can be accomplished. person that responsible for planning and directing the work of a group of individuals, monitoring their work and taking corrective action when necessary. LEVELS OF MANAGERS TOP MANAGERS include managers at or near the top of the organization who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization. MIDDLE MANAGERS include all levels of management between the first-line level and the top level of the organization. FIRST-LINE MANAGERS (often called supervisors) are located on the lowest level of management. THE 5 FUNCTIONS OF MANAGEMENT 1. Planning 2. Organizing 3. Staffing 4. Directing 5. Controlling THE 5 FUNCTIONS OF MANAGEMENT ( According to Luther Gulick‘s ) P - Planning, O - Organizing, S - Staffing, D - Directing, Co - Co-ordination, R - Reporting B - Budgeting.  PLANNING FUNCTION Planning is the primary function of management, involving the process of setting goals and determining the best course of action to achieve those objectives. It lays the foundation for all other management functions and guides the organization toward success. ORGANIZING FUNCTION Organizing is the second crucial management function that involves arranging and structuring the organization’s resources, both human and non-human, to achieve its goals efficiently and effectively. It establishes a coherent framework and ensures smooth coordination among different departments. STAFFING FUNCTION Staffing is a third crucial management function that involves the process of acquiring, developing, and retaining a skilled and motivated workforce to accomplish the organization’s objectives. DIRECTING FUNCTION Directing is the fourth vital function of management that involves guiding and leading employees toward the accomplishment of organizational goals. CONTROLLING FUNCTION Controlling is the last function that involves monitoring and evaluating organizational activities to ensure they align with predetermined plans and objectives. HENRY MINTZBERG- a renowned management theorist, identified ten managerial roles that managers play in organizations. 10 MANAGERIAL WORK: HENRY MINTZBERG INTERPERSONAL ROLES - These roles involve interactions with others both inside and outside the organization. 1. FIGUREHEAD 2. LEADER 3. LIAISON INFORMATION ROLES - These roles involve receiving, collecting, and disseminating information. 4. MONITOR 5. DISSEMINATOR 6. SPOKESPERSON DECISION ROLES - These roles involve making decisions or choices that impact the organization. 7. ENTERPRENEU GOAL 8. DISTURBANCE HANDLER ROLE 9. RESOURCE ALLOCATOR ROLE 10. NEGOTIATOR ROLE MANAGERIAL ROLE 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. HUMAN SKILLS enable managers in all levels to relate well with people. Communicating, leading, inspiring, and motivating them become easy with the help of human skills. Dealing with people, both in the organization's internal and external environment, is inevitable, so it is necessary for managers to develop these human skills. TECHNICAL SKILLS are also important for managers for them to perform their tasks with proficiency with the use of their expertise. Lower-level managers find these skills very important because they are the ones who manage the non-management workers who employ varied techniques and tools to be able to yield good quality products and services for their company. W EDWARDS DEMING was an American statistician, educator, and consultant whose advocacy of quality-control methods in Industrial production aided Japan’s economic recovery after World War II and spurred the subsequent global success of many Japanese firms in the late 20th century. o 14 Points of Management o Deming Chain Reaction o 7 Deadly Diseases o Deming cycle (Plan-do-check-act) JOSEPH M. JURAN Joseph Juran was a key figure in quality management, known for his contributions to improving product and service quality. He developed the Juran Trilogy (quality planning, control, and improvement), popularized the Pareto Principle (80/20 rule), and emphasized managerial responsibility in quality control. He also promoted Total Quality Management (TQM), involving the entire organization in quality improvement. His work, alongside that of W. Edwards Deming, helped shape modern quality management practices. PARETO PRINCIPLE (80/20) MANAGEMENT THEORY 10 STEPS FOR QUALITY IMPROVEMENT PHILIP CROSBY was a quality management expert known for promoting "zero defects" and the idea that focusing on quality saves money. He introduced the concept that quality is free, meaning preventing errors is less costly than fixing them. His Four Absolutes of Quality Management emphasize conformance to requirements, prevention of defects, aiming for zero defects, and recognizing the high cost of poor quality. Crosby also developed 14 Steps to Quality Improvement, focusing on leadership, training, and continuous improvement. KAORU ISHIKAWA was a pioneer in quality management, best known for creating the Ishikawa (Fishbone) Diagram to identify root causes of problems. He promoted Total Quality Control (TQC), advocating for the involvement of all employees in quality improvement. He introduced quality circles, where small groups work on solving quality issues, and emphasized a strong customer focus in quality efforts. Ishikawa also popularized the Seven Basic Tools of Quality, including simple statistical tools for problem-solving. His work laid the foundation for continuous improvement (Kaizen) in quality management.