Principles of Management Recommended Textbook PDF

EDEM EDEM EDEM REGINALD KLONU 0256896785  EDEM Table of Contents Course Delivery Schedule......................................................................................

EDEM EDEM EDEM REGINALD KLONU 0256896785  EDEM Table of Contents Course Delivery Schedule.............................................................................................................................. 3 Lecture 1........................................................................................................................................................ 7 Lecture 2......................................................................................................................................... 13 Lecture 3.......................................................................................................................................... 20 Lecture 4.......................................................................................................................................... 27 Lecture 5.......................................................................................................................................... 32 Lecture 6.......................................................................................................................................... 36 Lecture 7.......................................................................................................................................... 42 TRIAL QUESTIONS............................................................................................................................. 54 SUGGESTED ANSWERS...................................................................................................................... 60 Lecture 8.......................................................................................................................................... 62 Matrix structure.................................................................................................................... 72 Ease Strategic Planning................................................................................................................. 74 Improve Employee Training.......................................................................................................... 74 Refine the Decision Making Process.............................................................................................. 74 Lecture 9 & 10.................................................................................................................................. 76 Lecture 11........................................................................................................................................ 84 Lecture 12........................................................................................................................................ 93 IA Questions.................................................................................................................................. 100 EDEM REGINALD KLONU 0256896785  EDEM Course Delivery Schedule Operations management Week No. Date Lecture Contents 1.Management: Nature February 4,2020 The Term Management and Purpose Management as a Process Management and Organisation The Need for Management Managerial Performance Management as a Universal Process 2. Management Forms February 11,2020 Functions of Management Types of Managers Management Levels and Skills Managerial Roles Differences among hierarchical levels Management as a Science Management as an Art 3. Evolution of Management February 18,2020 Management – Historical Perspectives Theory Classical viewpoint: Scientific management approach Bureaucratic management Administrative management 4. Evolution of Management February 25,2020 Behavioural Viewpoint: Early Theory behaviourists Hawthorne Studies Human relations movement: Maslow’s theory of needs Quantitative management Viewpoint: EDEM REGINALD KLONU 0256896785  EDEM Management science Management information systems 5. Evolution of March 3, 2020 Contemporary viewpoints: Management Theory Systems Theory Contingency theory Theory Z Total Quality Management (TQM 6. Managerial March 10, 2020 External environment Environment Internal environment Managing environmental elements 7. Planning March 17, 2020 Nature and purpose of Planning The Formal planning Process Types of planning Benefits of planning Planning and Decision- making in 8. Organizing March 24, 2020 Organisational Structures Elements in the organization Design Types of organizational designs Organisational Designs Factors 9. Leading and leadership March 31, 2020 Approaches to leadership: Trait Approach Behavioural Approach Contingency Approach EDEM REGINALD KLONU 0256896785  EDEM 10. Leading and April 7, 2020 Management and leadership delegation Definition and Process of delegation Why some managers fail to delegate Principles of delegation 11. Control April 14, 2020 Nature and Purpose of Control The control Process Types and Methods of Control Designing Control Systems 12.CorporateSocial April 21, 2020 Definitions of social Responsibility and Ethics responsibility and ethics Areas of social responsibility Perspectives on Corporate social responsibility Types of managerial Ethics Alternative views of ethics Ethical Dilemmas at work Maintaining high Ethical Standards 13. Revision April 28, 2020 Exam Preparation DICLAIMER ANTHONY AND BRAIN ARE NOT RESPONSIBLE FOR ANY INCORRECT ANSWERS OR INFORMATION PROVIDED THEREIN EDEM REGINALD KLONU 0256896785  EDEM EDEM REGINALD KLONU 0256896785  EDEM Lecture 1 Introduction Definition -Management A set of activities directed at an organisation’sresources with the aim of achieving organisationalgoals in an efficient and effective manner (Griffen, 2002). What then is a goal An end that management desires to reach. (Bateman & Snell, 2002) Goals Altruistic -further the welfare of others Economic Survival Profitability Growth NB the activity of planning involves gathering relevant information about the task and its context, establishing goals (or objectives), specifying how to achieve them, implementing the plan and evaluating the results. A goal (or objective) is a desired future state for an activity or organisational unit. Goals (objectives) are desired outcomes or targets. They guide management decisions and form the criterion against which work results are measured. That’s why they’re often described as the essential elements of planning What is an organization? Organisation? EDEM REGINALD KLONU 0256896785  EDEM Two or more persons engaged in a systematic ef fort to produce products (Bartol and Martin, 19 98). a group of individuals who agree to share their effort in the realisation of common goals (Willia m, 2008) A deliberate arrangement of people assembled to accomplish some specific purpose (Pearce an d Coulter, 2012) Types Of Organisation Not-for profit Profit making Formal Informal Small Large Characteristics of organisations –Made up of people (social unit) –Managers –Common goal –Substitution of personnel –Structure –Rules and regulations –Division of labour NB First, an organization has a distinct purpose. This purpose is typically expressed through goals that the organization hopes to accomplish. Second, each organization is composed of people. It takes people to perform the work that’s necessary for the organization to achieve its goals. Third, all organizations develop EDEM REGINALD KLONU 0256896785  EDEM some deliberate structure within which members do their work. That structure may be open and flexible, with no specific job duties or strict adherence to explicit job arrangements. Management process ❖ Planning Process of setting performance objectives and determining what actions should be taken to accomplish them (Schermerhorn, 2008; Kinicki, 2016). objective – Eg. To increase sales by 20% next year What actions to take: Understanding customers so that good and quality products can be produced. ❖ Organizing The process of allocating and arranging resources so that plans can be carried out successfully. EDEM REGINALD KLONU 0256896785  EDEM Putting it into action How? ✓ Determine what tasks are to be done ✓ How jobs will be grouped ✓ Staffing jobs with individuals who can successfully carry out plans ✓ Providing the needed resources, ✓ Giving personnels what to do etc ❖ Leading The process of influencing others to engage in the work behaviour necessary to reach organisational goals ❖ Controlling The management function of monitoring progress so that actual performance conforms to expected goals and making needed changes. The process of measuring performance and taking action to ensure desired results. Managerial performance main purpose of management: – performance – Effectiveness Doing the right things. Attaining organizational goals Efficiency EDEM REGINALD KLONU 0256896785  EDEM Doing things right Getting the most output for the least inputs Management:A Science or an Art Management is a science because management problems and issues can be approached in ways that are rational, logical, objective and systematic. Management: Science Management is therefore a science because it consists of a body of knowledge that indicates the procedures that may be followed to provide an unambiguous demonstration of its theory. Management: an Art Managers also often make decisions and solve problems on the basis of intuition, experience, instinct and personal insights Why management? Universality of management The principles underlying management are universal. Applicable To all types of organisations At all levels of organisations In different organisations EDEM REGINALD KLONU 0256896785  EDEM EDEM REGINALD KLONU 0256896785  EDEM Lecture 2 Management Forms Who are managers? someone who coordinates and oversees the work of other people so that organisational goals can be accomplished. (Robbins & Coutler, 2016) Levels of managers Top managers: Make decisions that affect the entire organisation Provide strategic direction NB At the upper levels of the organization are the top managers, who are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. These individuals typically have titles such as executive vice president, president, managing director, chief operating officer, or chief executive officer. Middle line managers Responsible for implementing the overall strategies and policies defined by the top manager. NB Middle managers manage the work of first-line managers and can be found between the lowest and top levels of the organization. They may have titles such as regional manager, project leader, store manager, or division manager Middle managers are expected to ensure that first-line managers work in line with company policies. This requires them to translate strategy into operational tasks, EDEM REGINALD KLONU 0256896785  EDEM mediating between senior management vision and operational reality. Some help to develop strategy by presenting information about customer expectations to senior managers (Floyd and Wooldridge, 2000; Currie and Proctor, 2005), and provide a communication link – telling first-line managers what they expect, and briefing senior managers about current issues. First line managers Responsible for the work of operating employees NB First-line managers manage the work of nonmanagerial employees who typically are involved with producing the organization’s products or servicing the organization’s customers. First-line managers may be called supervisors or even shift managers, district managers, department managers, or office managers ` Types of managers `Functional managers: They are responsible for departments that perform a single functional task and have employees with similar training and skills. Line Managers Responsible for work that makes a direct contribution to the organisation’s outputs. Staff managers They can advice, recommend and counsel line managers General Managers They are responsible for activities covering many functional areas. Administrator An administrator is typically a manager who works in a public (government) or non profit organization rather than in a business firm. EDEM REGINALD KLONU 0256896785  EDEM NB Staff managers are in charge of activities like finance, personnel, purchasing or legal affairs which support the line managers, who are their customers. Staff in support departments are not usually in direct contact with external customers, and so do not earn income directly for the organisation. Project managers are responsible for a temporary team created to plan and implement a change, such as a new product or system. Managerial Roles (Mintzberg’s 10 roles) An organised set of behaviours associated with a particular position. The term managerial roles refers to specific actions or behaviors expected of and exhibited by a manager. Types of roles ❖ Informational Role: ✓ Monitor ✓ Disseminator ✓ Spokesperson NB Managing depends on obtaining information about external and internal events, and passing it to others The monitor seeks, receives and screens information to understand the organisation and its context, using websites, reports and chance conversations – such as with customers or new contacts at an exhibition. Much of this information is oral (gossip as well as formal meetings), building on personal contacts In the disseminator role the manager shares information by forwarding reports, passing on rumours or briefing staff. As a spokesperson the manager transmits information to people outside the organisation – speaking at a conference, briefing the media or presenting views at a company meeting EDEM REGINALD KLONU 0256896785  EDEM ❖ Interpersonal Roles Interacting with people inside and outside the work unit. ✓ Figurehead: performing routine duties of a legal or social nature. ✓ Leader: ✓ Liaison: It involves serving as a coordinator or between people, groups or organisations. NB As a figurehead the manager is a symbol, representing the unit in legal and ceremonial duties such as greeting a visitor, signing legal documents, presenting retirement gifts or receiving a quality award. The leader role defines the manager’s relationship with other people (not just subordinates), including motivating, communicating and developing their skills and confidence – as one commented: Liaison refers to maintaining contact with people outside the immediate unit. Managers maintain networks in which they trade information and favours for mutual benefit with clients, officials, customers and suppliers. ❖ Decisional Role ✓ Entrepreneur ✓ Disturbance handler ✓ Resource allocator ✓ Negotiator: Representing the organisation at major negotiations. NB In the entrepreneurial role managers see opportunities and create projects to deal with them Disturbance handling includes addressing unanticipated problems as they arise and resolving them expeditiously The resource allocator chooses among competing demands for money, equipment, personnel and other resources They negotiate with suppliers for better delivery, lower prices, and higher-quality inputs. They negotiate with customers over the pricing, delivery, and design of products and services. They EDEM REGINALD KLONU 0256896785  EDEM negotiate with peers in their own organization over shared resources and cooperative efforts. They negotiate with their superiors for access to scarce resources, including capital, personnel, and facilities Key skills Skill A skill is the ability to translate knowledge into action that results in desired performance. Diagnostic Communication Decision making Time-management Interpersonal Conceptual Technical Technical Skill The manager’s ability to use the tools, procedures and techniques of a specialized field. Human skills The ability to work with and through other people and to work effectively as a group member. Conceptual Skills It is the cognitive ability to see the organisation as a whole and the relationship among its parts Differences in the use of management skills Technical skills is very important for lower level managers because they are responsible for managing employees using tools and technique to produce the organisations product. EDEM REGINALD KLONU 0256896785  EDEM Because managers deal directly with people, these skills are essential and equally important at all levels of management (Human skills Conceptual skills are needed by all managers but are especially important for managers at the top. Challenges of managers Responsiveness to customers Responsiveness to diversity Globalisation Technology EDEM REGINALD KLONU 0256896785  EDEM EDEM REGINALD KLONU 0256896785  EDEM Lecture 3 The Evolution of Management Theory Classical Viewpoint emphasizes finding ways to manage work and organisations more efficiently. Approaches of Classical Perspective ✓ Scientific Management EDEM REGINALD KLONU 0256896785  EDEM ✓ Administrative management ✓ Bureaucratic Management Scientific Management Proponents: – Frederick Taylor – Frank and Lillian Gilbreth – Henry Gantt This approach emphasizes the scientific study of work methods in order to improve worker efficiency. Was aimed at solving the soldiering problem Solutions to soldiering problem He believed that for organisations to become efficient: Workers should not be allowed to work their own way without clear and uniform specification as that caused inefficiencies. Principles to increase efficiency ✓ Scientifically study each part of a task and develop the best method for performing the task ✓ Scientifically select and train workers to perform the task ✓ Cooperate fully with workers to ensure that they use the proper method. ✓ Divide work and responsibility Challenges with SM Specialized jobs became very boring and monotonous How do we manage the challenges? Summary EDEM REGINALD KLONU 0256896785  EDEM In getting a job completed:, – Put the right person on the job – With the correct tools and equipment – Make workers follow instructions exactly – Use economic incentive to motivate them. – Hiring the right person – Incentive based on output Bureaucratic Management Proponent: Max Weber A bureaucracy is a rational and efficient form of organisation founded on logic, order and legitimate authority. A few issues pertaining then – Class consciousness – Nepotism – Whom one knows instead of what one knows Characteristics of Ideal bureaucracy Specialization of labour Well defined hierarchy Formal rules and procedures Impersonality Career advancement based on merit EDEM REGINALD KLONU 0256896785  EDEM Downsides Excessive paper work or red tape Slowness in handling problems Rigidity in the face of shifting customer needs These could pose problems for organisations that must be flexible and quick in adapting to changing circumstances Administrative Management Main proponents: Henri Fayol Chester Barnard Emphasizes the principles that can be used by managers to coordinate the internal activities of organisations. Contributions Management was a profession Identified the functional approach to management. EDEM REGINALD KLONU 0256896785  EDEM – Planning – Organising – Commanding – Coordinating – Controlling 14 principles of management 1. Division of work 2. Authority and responsibilities 3. Discipline 4. Unity of command 5. Equity 6. Stability of personnel tenure 7. Subordination of individual interests to the common interest 8. Remuneration 9. Initiative 10. Esprit de Corps 11. Unity of direction (Singleness of purpose that makes possible the creation of one plan of action to guide managers and workers as they use organizational resources) 12. Order 13. Scalar chain/line of authority 14. Centralization Decentralization and centralization depends on the situation NB EDEM REGINALD KLONU 0256896785  EDEM 1 Division of work: If people specialise, they improve their skill and accuracy, which increases output. However, ‘it has its limits which experience teaches us may not be exceeded.’ 2 Authority and responsibility: The right to give orders derived from a manager’s official authority or their personal authority. ‘Wherever authority is exercised, responsibility arises.’ 3 Discipline: ‘Essential for the smooth running of business … without discipline no enterprise could prosper.’ 4 Unity of command: ‘For any action whatsoever, an employee should receive orders from one superior only’ – to avoid conflicting instructions and resulting confusion. 5 Unity of direction: ‘One head and one plan for a group of activities having the same objective … essential to unity of action, co-ordination of strength and focussing of effort.’ 6 Subordination of individual interest to general interest: ‘The interests of one employee or group of employees should not prevail over that of the concern.’ 7 Remuneration of personnel: ‘Should be fair and, as far as possible, afford satisfaction both to personnel and firm.’ 8 Centralisation: ‘The question of centralisation or decentralisation is a simple question of proportion … [the] share of initiative to be left to [subordinates] depends on the character of the manager, the reliability of the subordinates and the condition of the business. The degree of centralisation must vary according to different cases.’ 9 Scalar chain: ‘The chain of superiors from the ultimate authority to the lowest ranks … is at times disastrously lengthy in large concerns, especially governmental ones.’ If a speedy decision was needed people at the same level of the chain should communicate directly. ‘It provides for the usual exercise of some measure of initiative at all levels of authority.’ 10 Order: Materials should be in the right place to avoid loss, and the posts essential for the smooth running of the business filled by capable people. 11 Equity: Managers should be both friendly and fair to their subordinates – ‘equity requires much good sense, experience and good nature’. EDEM REGINALD KLONU 0256896785  EDEM 12 Stability of tenure of personnel: A high employee turnover is not efficient – ‘Instability of tenure is at one and the same time cause and effect of bad running.’ 13 Initiative: ‘The initiative of all represents a great source of strength for businesses … and … it is essential to encourage and develop this capacity to the full. The manager must … sacrifice some personal vanity to grant this satisfaction to subordinates … a manager able to do so is infinitely superior to one who cannot.’ 14 Esprit de corps: ‘Harmony, union among the personnel of a concern is a great strength in that concern. Effort, then, should be made to establish it.’ Fayol suggested doing so by avoiding unnecessary conflict, and using verbal rather than written communication when appropriate. EDEM REGINALD KLONU 0256896785  EDEM Lecture 4 Behavioural Viewpoint Behavioural Viewpoint emphasizes the importance to attempting to understand the various factors that affect human behaviour in organisations. Approaches Maslow’s theory of needs Mc Gregor’s Theory X and Y Early Behaviourists Mary Parker Follett Contributions: Power with rather than power over Essence of groups in organization EDEM REGINALD KLONU 0256896785  EDEM Conflict resolution should be based on integration i.e solution should satisfy both parties Hawthorne Studies A series of studies conducted to know the relationship between physical working condition and worker productivity. Researchers lowered the level of lighting expecting productivity to decrease but productivity rather increased.  psychological and social conditions at work influenced behaviours. – Informal group pressures – Individual recognition – Participation in decision making – Attention shown to employees – Effective supervision Main Contributions Hawthorne Effect: The tendency of persons singled out for special attention to perform as expected. They encouraged managers to focus on the social and human concerns as they are keys to productivity NB The Hawthorne Study was led by Elton Mayo And Fritz Roethlisberger And Hawthorne Effect by Henry A. Landsberge Human relations movement Suggested that managers using good human relations achieve productivity. EDEM REGINALD KLONU 0256896785  EDEM Showing greater concern for workers so that they would feel more satisfied with their jobs and be willing to produce more. Believe that happy workers are productive Maslow’s theory of needs McGregor’s theory X and Maslow’s theory of needs A need is a physiological or psychological deficiency that a person feels the compulsion to satisfy. These needs create tensions that can influence a person’s work attitudes andbehaviour. Principles: Deficit principle- a satisfied need is not a motivator of behaviour. Progression principle – the five needs exist in a hierarchy McGregor’s Theory X and Y EDEM REGINALD KLONU 0256896785  EDEM This approach focuses on how assumptions about workers’ attitude and behaviour affect managers’ behaviour. He believed that managers should shift their view of human nature away from a set of assumptions he called “Theory X” and towards ones he called “Theory Y”. Theory X Theory Y The average workers is lazy, Most employees do not dislikes work and will try to inherently dislike work avoid it People will exercise self- The average person needs to be direction and self-control coerced, controlled, directed to reach goals to which and threatened with they are committed punishment to get them to External control and work toward organisational threats of punishment are goals not the only means for The average person needs to be ensuring effort toward directed, shuns responsibility, goals. has little ambition and seeks Commitment to goals is a security above all function of the rewards The average person needs to be available, particularly directed, shuns responsibility, rewards that satisfy has little ambition and seeks esteem and self- security above all. actualization needs. Theory Y When conditions are favourable, the average person learns not only to accept but also to seek responsibility. Many people have the capacity to exercise a high degree of creativity and innovation in solving organisational problems EDEM REGINALD KLONU 0256896785  EDEM Theory X Managers who hold this perspective assume people dislike work, lack ambition, are irresponsible and prefer to be led He believed that having either assumption creates self-fulfilling prophecies (SFP) For instance managers with theory x assumption act in a directive, command and control fashion that gives employees little personal say over their work. This creates passive, dependent and reluctant subordinates who tend to do only what they are told to or required to do. behave in “participative” ways that allow subordinates more job involvement, freedom and responsibility. Workers therefore act with initiative, get self actualised and hence improve performance. Quantitative management Viewpoint It focuses on the use of mathematical, statistics and information aids to support managerial decision making and organisational effectiveness. Approaches Management Science Operations Management Management Information Systems EDEM REGINALD KLONU 0256896785  EDEM Lecture 5 Quantitative management Viewpoint ✓ Management Science/operations research An approach aimed at increasing decision effectiveness through the use of sophisticated mathematical models and statistical methods ❖ Queuing theory - helps allocate service personnel to minimize customer waiting time and service cost ❖ Breakeven analysis – calculates the point at which revenues cover cost under different what if conditions. ✓ Operations Management Is concerned with helping the organisation produce its products more efficiently and effectively. ❖ Inventory management –enables organisationsto know the optimal order ❖ quantity to save resources. – Economic order quantity –involves ordering a fixed number of items every time an inventory falls to a predetermined point ❖ Just -in –time –(JIT) JIT reduces costs and improve workflow by scheduling materials to arrive at a workstation or facility ‘just in time’ to be used. ✓ Management Information System The field of management that focuses on designing and implementing computer-based information systems for use by management. EDEM REGINALD KLONU 0256896785  EDEM Systems are used to process data into information to help managers in making daily decisions. Contemporary viewpoint  Systems Approach  Contingency Approach Other Approaches: o Theory Z o Total Quality Management (TQM)  Systems Approach This approach goes beyond the internal organization by looking at the external environment A system –a set of interrelated parts that operate as a whole in pursuit of common goals. –Inputs –Transformation Processes –Outputs –Feedback Types of systems ✓ Closed (focuses on internal efficiency) ✓ Open an open system is one that interacts with its environment. An open system imports resources such as energy and materials which are transformed within the system, and leave as goods and services. The open systems view emphasises that organisations depend on their environment for resources. Open systemsare influenced by and do interact with their environment Closed systems are not influenced by and do not interact with their environment EDEM REGINALD KLONU 0256896785  EDEM Contingency Theory suggests that universal theories cannot be applied to organisations because each organisation is unique The idea that the organisational structures and control systems managers choose depend on are contingent on characteristics of the external environment in which the organisation operates. Theory Z A combination of Japanese and American principles. Propounded by William Ouchi Involves: Long-term employment (A – short t, J – Life time) Consensual decision-making (A – individual DM) Emphasizing group responsibility Establishing gradual-advancement policies (A - rapid) More informal control Broader career paths Showing greater concern for employees work and non- work well-being Results Lower turnover Increased job commitment Higher productivity Total Quality Management Is managing with an organisationwide commitment to continuous improvement to product quality and customer needs. EDEM REGINALD KLONU 0256896785  EDEM TQM applies to all in the organisation from resource acquisition through production and into the distribution of finished product Focus is on customer satisfaction which ultimately leads to customer loyalty. – It requires top management commitment – Quality improvement teams – groups responsible for solving quality and productivity issues – Benchmarking – identifying best practices within and outside ones industry to enable one to compare standards ISO 9000, 9001 and ISO 1400 – refers to a set of quality standards created by the international organisation for standardization EDEM REGINALD KLONU 0256896785  EDEM Lecture 6 Managerial Environment External environment the major forces outside an organization’s boundaries that have the potential to significantly influence the likely success Internal environment The conditions and forces within an organization Components of the external environment Mega/Macro Task/microCompetitve NB competitive environment (or context), sometimes known as the microenvironment. This is the industry-specific environment of customers, suppliers, competitors and potential substitute products Macro/Mega environment includes political, economic, social, technological, (natural) environmental and legal factors that affect all organisations. General Environment The broad conditions and trends in the societies in which an organisation operates that affects its performance. NB PEStEL analysis is a technique for identifying and listing the political, economic, social, technological, environmental and legal factors in the general environment most relevant to an organisation. EDEM REGINALD KLONU 0256896785  EDEM ❖ Political/Legal Environment Define the legal and regulatory parameters within which firms must operate. – Government stability –Issues of governance –Extent of private versus state control NB Political systems shape what managers can and cannot do. Most governments regulate industries such as power supply, telecommunications, postal services and transport by specifying, amongst other things, who can offer services, the conditions they must meet, and what they can charge. These influence managers’ investment decisions. Managers aim to influence these political decisions by employing professional lobbyists, especially at international institutions ❖ ECONOMIC FORCES The economic forces of the general environment are the general economic conditions and trends that may be factors in an organization's activities. Critical economic forces include wages, government fiscal policies, inflation, economic growth, interest rates, and unemployment. Interest rates, for example, are important because they determine how much it will cost the organization to borrow money and how readily customers can borrow money to buy goods and services. ❖ TECHNOLOGICAL FORCES Technological forces are also an important part of the general environment. They include new developments in products or process, and advances in science that may affect an organization's activities The introduction of the automated teller machines (ATMs) in the banking sector in Ghana today has brought about significant changes in the provision of banking services. »E.g. internet EDEM REGINALD KLONU 0256896785  EDEM »ICT »Smart phones »Artificial intelligence »Robots »E-commerce »Search engine ❖ Socio-cultural conditions As social attitudes change, so too does the demand for various types of products. –Beliefs –Lifestyles –Attitudes –opinions –Taste and preferences – Demographic changes –e.g women Life policie ❖ Ecological element the relationship among human beings and other living things (animals, birds etc) and the air, soil and water that supports them. – E.g. global warming pollutioN ❖ International dimension Includes the developments in countries outside an organization’s home country that have the potential to influence the organisation. – Credit crunch EDEM REGINALD KLONU 0256896785  EDEM Task environment The specific outside elements with which an organisation interfaces in the course of conducting its business. Customers and clients Competitors Supplier Regulators A unit that has the potential to control, legislate or influence an organisation’s policies and practices. Managing environmental elements Adaptation EDEM REGINALD KLONU 0256896785  GENIUS WORLD Favourabilityinfluence Domain shifts Adaptation Involves changing internal operations and activities to make the organisationmore compatible with its environment. Buffering –Creating supplies of excess resources in case of unpredictable needs. Favourability influence Altering the elements in order to make them more compatible with the needs of the organization. Examples of Favourability Influence Public relations and Advertising Trade association Domain shift Changing the environment the organisation is in. – Diversification – Acquisition Organisational Culture The shared beliefs, expectations, and core values of people in the organization NB Culture is a pattern of shared basic assumptions learnt by a group as it solved its problems of external adaptation and internal integration, which has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems Schein’s Three Levels of Culture: Level 1: Observable artefacts GENIUS WORLD ANTHONY EDUAH  GENIUS WORLD Physical manifestations such as manner of dress, awards, furniture, myths and stories about the company, rituals and ceremonies, slogans, symbols and decorations as well as behaviour exhibited by managers and employees. Level 2: Espoused value and beliefs The explicitly stated values and norms preferred by an organization. Level 3: Basic assumptions – core values of the organisation. The core beliefs that employees have about their organization which are not observable. dggjh Organisational Culture How Employees Learn Culture Symbols Stories Heroes Rites and Jargons and Rituals statements of principle Objects, acts, Stories based People qualities or on true whose The activities events that accompli and events which convey shmente ceremonies, are repeated meaning to mbody planned and and others the unplanned, sometimes values of that celebrate embellished the important GENIUS WORLD to emphasize ANTHONY EDUAH organizat occasions in a particular ion. the value organization's life  EDEM Lecture 7 PLANNING Planning is the process of determining the organisation’s objectives and deciding how to accomplish them. EDEM REGINALD KLONU 0256896785  EDEM Planning is the process of setting organisational goals and deciding how best to achieve them (plans) It is the process that managers use to identify and select appropriate goals and causes of action for an organisation, Chandler (1962). A mission is a statement of an organisation’s fundamental process and basic philosophy. A goal is a target or end that management desires to reach. Plan/Strategy – outlines how goals are to be met Types of Goals Financial Goals Are related to the expected internal financial performance of the organization. Strategic Goals Are related to the performance of the firm relative to factors in its external environment (e.g., competitors). Stated Goals versus Real Goals Broadly-worded official statements of the organization (intended for public consumption) that may be irrelevant to its real goals (what actually goes on in the organization). IMPORTANCE OF PLANNING Provides a basis for the other major functions of management Clarify expectations of members Provides direction to members Helps organisations cope with uncertainty. EDEM REGINALD KLONU 0256896785  EDEM Minimizes waste and redundancy Sets the standards for controlling PLANNING ELEMENTS Objective: it is a general statement of measurable results to be achieved. Objectives specify the end points of an organisation’s purpose and results sought through the on-ongoing long-run operation of the organisation. Goal: the goals of an organisation is the intermediate quantitative and qualitative performance target which management seeks to attain in moving toward organisational objective. Policies: policies define the boundaries within which decisions can be made, and they direct decisions towards the accomplishment of objectives. Strategy: it is a comprehensive description of an organisation’s plan for achieving its goals, objectives and purpose. Thus strategy indicates how the organisation plans to get to where it wants to go. Procedures: procedures turns to be applied to departmental or interdepartmental activities. The need for procedures arises when the organisation wishes to achieve high degree of regularity in a frequent recurring event. EDEM REGINALD KLONU 0256896785  EDEM Schedule: a schedule is a single plan that commits resources (workerhours and machine-hours) to a given activity. Rules: rules are specific statements of what may or may not be desired. The only discretion left to the manager is whether or not to apply the rule. Programme: a programme is a composite of policies, procedures, rules and task assignment necessary to carry out capital and operating budgets CHARACTERISTICS OF A GOOD PLAN Planning must start at the Top: logically, basic goals, from which other goals stem, must be company-wide. Flexibility: some elements of flexibility must be introduced in planning because modern business operates in an environment which keeps on changing. Dynamic Managers: the persons concerned with the task of planning should be dynamic in outlook. Careful Premising: the planning premises constitute a framework within which planning is done. They are the assumptions regarding what is likely to happen in future. Quantitative Plans: there are occasions where plans are expressed in terms of certain quantitative factors. Numerical presentation of plans makes them definite and avoids ambiguity. Availability of Resources: determination and evaluation of alternatives should be done in the light of the resources available to management. STEPS TO MAKE PLANNING EFFECTIVE EDEM REGINALD KLONU 0256896785  EDEM Koontz and O’ Donnel have suggested the following steps Planning must not be left to change; Planning must start at the top; Planning must be properly organised; Planning should be definite; Goals, premises and policies of planning must be communicated; Long range planning must be integrated with short range planning; and Planning must include awareness and acceptance of change. CLASSIFICATION OF PLANS Plans can be classified on the following basis: levels of management, time horizon and function. Generally, there are three types of plans in relation to the levels of management. These are: strategic planning takes place at the corporate level, tactical planning at the business level and operational planning at the functional level. When plans are classified on the basis of time span covered, we have long-range, intermediate term and short-range plans. Finally, plans can be done for the functional areas within an organization. TYPES OF PLANS IN RELATION TO THE LEVELS OF MANAGEMENT Strategic Planning A strategic plan indicates to management’s decision pertaining to the organisation’s mission and goals. Strategic plans also shows the overall strategy or course of action by which the firm fulfils its mission. They are long term plans. EDEM REGINALD KLONU 0256896785  EDEM Tactical Planning They are short range plans designed to implement the activities and objectives specified in the strategic plans. They are decisions taken by divisional managers pertaining to the division’s long term goals, overall strategy and structure. Operational Planning A tactical plan provides the framework for setting operational plans. They are normally set by functional level managers. Operational plans are very short term plans that specify what actions, individual, work groups or departments need to accomplish in order to achieve the tactical plan and ultimately the strategic plan. Operational plans can be classified according to frequency of use. Standing plans and single – use plans Standing plans Because organisational objectives are slow to change, they rise over time, to become organisational policies. These serves as guidelines to assist and provide direction for managers in goal accomplishment and are classified as standing plans. In addition, organisations employ standing operational procedures, which serves as guides for carrying out specific tasks. Finally, organisations usually have various rules that require or prohibit specifications. The major types are policies, procedures and rules. TYPES OF OPERATIONAL PLANS Single-use plans: Single-use plans are designed for a specific purpose or period. When the goal is accomplished or the period has elapsed, the plan ceases to exist or is updated. The major types of single-use plans are programmes, projects and budgets. EDEM REGINALD KLONU 0256896785  EDEM Programmes: These are broad activities that include many different functions and interactions. Projects: projects are single use plans that are much narrower and complex than programmes. Budgets: a budget is a plan for allocating certain financial resources to organisational activities and units in a given period of time TIME SPAN COVERED (TIME FRAME) Long-Range Plans: strategic plans are the long range of organisations. Long range plans are those that deal with decisions about the broad competitive resources over an extended period of time. Intermediate term Plans: these generally have a planning horizon of between two and five years. This types of plan usually concerns goals that require a longer period for accomplishment than do the year-to-year objectives. Short-Range Plans: short range plans provide the guidelines to day-to-day operations of the organisation and propose the procedures by which they are to be accomplished. Characteristics of Well-Designed Goals Written In terms of outcomes, not actions Focuses on the ends, not the means. Focuses on the ends, not the means. Measurable and quantifiable Specifically defines how the outcome is to be measured and how much is expected Clear as to time frame How long before measuring accomplishment. EDEM REGINALD KLONU 0256896785  EDEM Challenging yet attainable Low goals do not motivate. High goals motivate if they can be achieved. Written down Focuses, defines, and makes goals visible. Communicated to all necessary organizational members Puts everybody “on the same page.” Types of Goals/objectives Financial objectives Examples: – 90% increase in annual revenue – Improved cash flow by a percentage – Higher dividends – Greater return on investments Strategic objectives These objectives are related to other areas of an organisation’s performance. Examples – Employment development – Innovation – Public responsibility – Competitive position Forms of planning EDEM REGINALD KLONU 0256896785  EDEM Formal – specific goals covering a period of years are defined. – shared – Written Informal Planning in the Hierarchy of Organizations Decision making in organisations Decision making is the process of choosing from among various alternatives by following various steps Management By Objectives (MBO) EDEM REGINALD KLONU 0256896785  EDEM – Specific performance goals are jointly determined by employees and managers. – Progress toward accomplishing goals is periodically reviewed. – Rewards are allocated on the basis of progress towards the goals. – Key elements of MBO: – Goal specificity, participative decision making, an explicit performance/evaluation period, feedback Steps in the MBO process 1. The organization’s overall objectives and strategies are formulated. 2. Major objectives are allocated among divisional and departmental units. 3. Unit managers collaboratively set specific objectives for their units with their managers. 4. Specific objectives are collaboratively set with all department members. 5. Action plans, defining how objectives are to be achieved, are specified and agreed upon by managers and employees. 6. The action plans are implemented. 7. Progress toward objectives is periodically reviewed, and feedback is provided. 8. Successful achievement of objectives is reinforced by performance-based rewards Contemporary Issues in Planning Effective Planning in Dynamic Environments – Develop plans that are specific but flexible. – Understand that planning is an ongoing process. – Change plans when conditions warrant. EDEM REGINALD KLONU 0256896785  EDEM – Persistence in planning eventually pay off. – Flatten the organizational hierarchy to foster the development of planning skills at all organizational levels. Decision making processes Recognising the need for a decision. Diagnose the situation Establish decision criteria (determines factors that are relevant in making the decision) Allocating weights to the criteria (determining the factors that are very or most important) Generating alternatives Evaluate alternatives Choice (the actual selection of a course of action) Implementation DECISION TYPES Programmed decisions are repetitive and routine decisions E.g policies Unprogrammed decision It is nonrecurring, unique, and takes a long time in arriving at the decision hence require custom made solution. Group decision making Decisions can be made in a group or by individuals. EDEM REGINALD KLONU 0256896785  EDEM Pros of group decision making Increased commitment: increased in acceptance of and commitment to the decision because of the diffusion of responsidbility across the members of the group. More complete information: groups tend to generate more ideas than individuals Group decision making Cons Time consumption Minority domination Group think NB Groupthink is a mentality among members of a decision making team to suppress their own beliefs in order to show solidarity and maintain agreement at any cost. Members suspend their critical judgments which could lead to better decision. Some members withhold different views in order to appear to be in agreement with the group Minority Dominace :This is when few members of a decision making team dominate in the decision making process. This may be due to ranks in the organization, experience, knowledge about the problem, influence on other members verbal skill assertiveness etc. This imbalance creates orpportunity for one or few members to dominate others in the group. A minority that dominate in a group frequently has an undue influence on the final decion. Enhancing Group decision making A devil’s advocate is necessary Change of leadership style EDEM REGINALD KLONU 0256896785  EDEM NB The devil’s advocate is a technique where an individual(s) in the group is allowed to become the critic in the propsed decision this helps to prevent Groupthink and increase the chance of a high-quality decision. TRIAL QUESTIONS 1. The main importance of studying management is A. Ensures efciency B. Helps achieve organizaton goals C. Universality of management D. None of the above 2. The concept of management include all the following except A. Discipline B. A group of people C. A process D. None of the above 3. Management refers to.........directed at.......with the aim of achieving....... in an........ A. set of actvitese organisaton responsibilitese organisaton goalseproductvity B. Set of actvitese organisaton resourceseefciency and efectvenesse productvity C. Set of actvitese organizaton resourcese organisaton goal eefciency and efectveness D. Set of actvitese organisaton resourceseefciency and efectvenesse organisaton goal 4. The end result of what an organisaton would want to achieve is.. A. Objectve B. Goal C. Efciency D. Efectveness EDEM REGINALD KLONU 0256896785  EDEM 5. Objectves must be A. Measurable B. Time bound C. Realistc D. All the above 6. Management as an art means................. while management as a science means............................... 7. Lower level management are also known as.........................................and............................... 8. A goal of an organisaton must always be................and have.................... 9. For a goal to be altruistc means.. 10. The management functon include...e.....e....and.... 11. All the management functon are....though... to achieve organisaton goals A. interrelatede distnct B. Separated e diferent C. Disjointe distnct D. None of the above 12. What is the main aim of the management functons A.ensure unity B. Ensure efciency C.ensure performance D.none of the above 13. Managers responsible for performing a single functonal task are A. Line managers B. Producton managers C. Functonal managers D. General Managers 14. Managers who are directly involved in the producton of products or services are... A. Line managers B. Producton managers C. Functonal managers D. General managers 15. Managers who ofer advice and counseling to line managers are A. Staf managers B. Employees managers EDEM REGINALD KLONU 0256896785  EDEM C. Producton managers D. Industry managers 16. Managers who work in public organisaton are.... 17.Mintzberg's managerial roles are classifed into.....e....and...... 18..... serves as coordinator or connects or network with outsiders for the organisaton A. Disseminator B. Liaison C. Spokesperson D. Figurehead 19..... commuicates potental informaton to employees from employers A. Disseminator B. Liaison C.Spokesperson D. Figurehead 20...... represent and speaks for organisaton to outsiders A. Disseminator B. Liaison C. Spokesperson D. Figurehead 21. The technical skill is used at which level if management A. Top level B. Middle level C. Lower level D. None of the above 22. Ability to think analytcally is a A. Diagnostc skill B. Conceptual skill C. Technical skill D. All the above 23. A district manager is a A. Top level B. Middle level C.lower level D. None of the above 24. Which approach focused on use of skill to achieve work efciency and efectveness A. Classical approach B. Behavioural approach EDEM REGINALD KLONU 0256896785  EDEM C. Contemporary approach D. Quanttatve approach 25. The scientfc management was propounded by A. Frederick Winslow Taylor B. Will smith C. Maximilian Karl Emil Weber D. Adam Smith 26. Who is the father of management A. Adam Smith B. Will Smith C. Max. Weber D. Frederick Taylor 27. Who brought about employees working efciently within a specifed period of tme.. A. Franklin and lily B. Frank and Lillian C. Fred and Louisa D. None of the above 28. The 14 principles of management was propounded by A. Chester Barnard B. Henry Fayol C. Adam Smith D. Mary Parker 29. One challenge of the scientfc management was.... 30. Authority goes with commensurate.. A. Acton B. Responsibility C. Goal D. All the above 31. Esprit de core means.................. 32. All relates work activities that have one objectve is in connecton to... A. Scaler chain B. Unity of directon C. Unity of command D. Initatve 33. Who discovered the identfcaton of skill and personality of an employee and matching work to that skill A. Elton Mayo B. George Mayo EDEM REGINALD KLONU 0256896785  EDEM C. Hugo Munsterberg D. Mary Parker 34. Who contributed to organisatons performing a power with rather than a power over A. Elton Mayo B. George Mayo C. Mary Parker D. Hugo Munsterberg 35. Who assisted Elton Mayo in the experiment of the Hawthorne studies A. Mary Parker B. Fritz Roeththisberga C. Max Weber D. Frank and Lillian Gilbreth 36. Which is in correct order A. Illuminatone Relay Assemblyeinterview processe bank wiring B. Bank wiring eIlluminatone relay Assemblye interview process C.illuminatone relax Assemblye bank wiringeinterview process.illuminatone interview processe bank wiringerelay Assembly 37. An employee performing effciently due to observaton and supervision is attributed to to the A. Hawthorne studies B. Hawthorne effect C. All the above D. None of the above 38. Theory X says.....while theory Y says..... 39. The theory X and Y was propounded by A. Kim Young B. Mc Gregor. C. Abraham Maslow D. Henry Landsberg 40. Which theory ensures loyalty of employees through employment for life A. Theory A B. Theory Z C. Theory Z and X D. Theory A and Z EDEM REGINALD KLONU 0256896785  EDEM 41. Which analysis help business know whether they will make profts in the long run A. Break even analysis B. Queuing analysis C. Management analysis D. None of the above 42. An example of the management science approach is the A. Operations management B. Queuing theory C. JIT D. All the above 43. JIT means 44. Which system allow input from extery environment to interact with the internal process... A. Closed system B. Medium system C. Long system D. Open system 45. The universal approach under the contingency approach emphasize on A. Two ways doing things(solving a problem) B. One way of doing things(solving a problem) C. Three ways of doing things(solving a problem) D. None of the above 46. The contngency view states that.... 47. Pick the odd one out A. Management science B. Scientfc management C. Operaton management D. Management informaton system 48. The use of mathematcal methods to study waitng lines is A. Queuing theory B. Theory Z C. JIT D. Theory A 49. In the behavioral approache conficts should be solved through.... EDEM REGINALD KLONU 0256896785  EDEM 50. The scientfc management theory evolved within the year.....to.... SUGGESTED ANSWERS 1.C, 2.B, 3. A set of activities directed at an organization’resources with the aim of achieving organisational goals in an efficient and effective maner 4.B, 5.D, 6 Management as an art means Managers often make decisions and solve problems on the basis of intuition, experience, instinct and personal insights Management as a science means management problems and issues can be approached in ways that are rational, logical, objective and systematic. 7 First-line managers and supervisors 8 Economic Survival 9.......... further the welbeing of others 10 planning, controlling, leading and organizing 11 A, 12 B, 13 C, 14 A, 15 A, 16 Administrators 17 Informational Role,Interpersonal Role and Decisional role 18 B, 19 C, 20 C, 21 C, 22 B, 23 C, 24 A, 25 A 26 D, 27 B, 28 B, 29 Specialized jobs became very boring and monotonous 30 B, EDEM REGINALD KLONU 0256896785  EDEM 31 Esprit de core means promoting team spirit will build harmony and unity within the organization 32 B, 33 C, 34 C, 35 B, 36 A, 37 B, 38 Theory X says the average workers is lazy, dislikes work and will try to avoid it while theory Y says Most employees do not inherently dislike work 39 B, 40 B, 41 A, 42 B, 43 Just In Time (JIT) is an inventory management method whereby materials , goods and labours are scheduled to arrive or replenished exactly when needed I the production process 44 D, 45 D, 46 The contngency viewsuggests that universal theories cannot be applied to organisations because each organisation is unique 47 B, 48 A, 49 conflicts should be solved through integration i.e. solution should satisfy both parties 50 1880S AND 1890S EDEM REGINALD KLONU 0256896785  EDEM Lecture 8 Organizing Allocating and arranging people and non-human resources so that plans can be carried out successfully to achieve goals (Schermerhon, 2008; Bartol and Martin, 1998) Activities of organising Defining work to be done Determine how the activities are to be grouped Assigning work to people Determine reporting relationships Allocating and deploying organisational resources Organization structure EDEM REGINALD KLONU 0256896785  EDEM A system of tasks, reporting relationships and communication linkages (Schermerhorn, 2008) The arrangement of people and tasks to accomplish organizational goals. A formal system of task and reporting relationships that coordinate and motivates an organization's members so that they can work together to achieve the organization's goals (Kinicki and Williams, 2010). Formal and informal structure NB Organisation structure describes how managers divide, supervise and co- ordinate work. It gives someone taking a job a reasonably clear idea of what they should do – the marketing assistant should deal with marketing, not finance. The topic relates closely to culture and to human resource management, since the more coherence there is between these three elements the more, they will support the strategy Organization chart A box-and-lines illustration showing the formal lines of authority and the organization's official positions or work specializations (Kinicki and Williams, 2010) ❖ Vertical hierarchy of authority ❖ Horizontal work specialization NB The organisation chart shows departments and job titles, with lines linking senior executives to the departments or people for whose work they are responsible. It shows who people report to, and clarifies four features of the formal structure: EDEM REGINALD KLONU 0256896785  EDEM Elements in organisational structure Work Specialization/Division of labour Refers to the degree to which the overall task of the organisation is broken down and divided into smaller component parts Departmentation EDEM REGINALD KLONU 0256896785  EDEM Departmentation is the grouping of jobs in a way that most effectively serves the needs of the organization Putting jobs into departments either by functions, products, customers and geographic location Centralization and decentralization ❖ Centralization is the degree to which decision making is concentrated at upper levels of the organisation ❖ Decentralization The extent to which decisions are taken by the managers who are closest to the action ❖ Employee empowerment Giving employees more authority to make decisions or make an input ❖ Span of control or management The number of subordinates reporting directly to a manager. Wide or narrow Affects an organization’s efficiency and effectiveness Factors influencing span of management Competence of supervisor Competence of subordinates Similarity of tasks being supervised Proximity or dispersed Extent of standardized procedures Complexity of job Chain of Command The line of authority extending from upper organisational levels to the lowest levels, which clarifies who reports to whom (Robbins and Coutler, 2012). Formalisation EDEM REGINALD KLONU 0256896785  EDEM Refers to the degree to which written policies, rules, procedures, job description and other documents specify what actions are or are not to be taken under a given circumstances Highly formalised organisations have: Explicit job descriptions Numerous organisational rules Clearly defined procedure Mechanistic Models Based on enhancing efficiency An organizational structure characterized by:  close adherence to the established chain of command,  highly specialized jobs,  high centralization  high formalisation and  vertical communication  Departmentation is usually functional e.g bureaucrac Organic Model Based on enhancing speed An organisational structure chararcterised by:  by flexible lines of authority,  less specialised jobs  decentralised decision  Both vertical and lateral  Departmentation is usually divisional E.g flat structure EDEM REGINALD KLONU 0256896785  EDEM NB Mechanistic Structure A mechanistic structure, also known as a bureaucratic structure, describes an organizational structure that is based on a formal, centralized network. The mechanistic structure is best suited for companies that operate in a stable and certain environment. In general, a mechanistic structure is easy to maintain and rarely needs to be changed when an organization operates in a stable environment Organic structures are used in organizations that face unstable and dynamic environments and need to quickly adapt to change. When an environment changes, an organization must be able to gather, process, and disseminate information very quickly. Failure to do so can directly affect an organization's ability to maintain its competitive advantage. Communication is lateral and rapid in these complex environments. To achieve this, organizations that use an organic structure will integrate functional areas and departments together so that information can ow seamlessly between them. This fast distribution of knowledge results in an increased ability to respond to changes in the internal and external environments. Determinants of organizational structure  Strategy  Size  Environment  Techonolgy NB Determinant of Organizational Structure Technology: The organisation structure of an enterprise depends upon the type and nature of technological process adopted for the production. Therefore, technology is a factor for consideration in determining the structure of an organisation. Nature of the Objectives: The objectives of an enterprise govern the selection of persons with appropriate skills and equipment capable of delivering the goods. The objectives, thus, determine the basis of the organisation structure. For example, an organisation structure of an industrial concern cannot be the same as that of a religious or governmental institution EDEM REGINALD KLONU 0256896785  EDEM Size and Scope: The smaller the firm, the more informal and loose becomes the interpersonal contacts and relationships. But they will be otherwise in the case of big concerns. So, the size of the enterprise and its scope of performance have an effective influence on the organisation structure. Environmental constraints Environmental constraints include legislation, government regulation, court orders, market characteristics, social issues, and societal norms etc. Laws concerning entry into or exclusion from certain businesses, the imposition or removal of regulations, and such court- ordered actions as the breakup of American Telephone and Telegraph Company affect the structure of organizations Types of organizational structure  Simple structure Has authority centralized in one person Flat structure Few rules Low work specialization  Functional structure: People with similar specialties are put together in a formal groups EDEM REGINALD KLONU 0256896785  EDEM  Divisional structure: EDEM REGINALD KLONU 0256896785  EDEM grouping by similarity of purpose ✓ Product ✓ Customer ✓ Process ✓ Location Product Product Division Grouping is by the type of product the organisation produces. EDEM REGINALD KLONU 0256896785  EDEM Customer division It groups together people who work on serving similar customers. Geographic division EDEM REGINALD KLONU 0256896785  EDEM It the arrangement of departments according to the geographic area served. Matrix Structure one in which functional and staff personnel are assigned to both a basic functional area and to a project or product manager ✓ Violates unity of command principle ✓ Dual authority ✓ Functional resources are shared instead of duplicating them NB Matrix structure The matrix structure groups employees by both the function and product. This structure can combine the best of both separate structures. A matrix organization frequently uses teams of employees to accomplish task, in order to take advantage of the strengths, as well as make up for weaknesses, of functional and decentralized forms EDEM REGINALD KLONU 0256896785  EDEM Team structure/self-managed teams A structure in which the entire organization is made up of work teams. ✓ These teams set parameters of their work, ✓ make decisions about work-related matters ✓ perform most of the managerial functions previously ✓ done by their direct supervisor E.g. cross-functional team Network structure provides products using different, self-contained specialists or companies brought together—outsourced—to contribute their primary or support activity to result in a successful outcome Retains core processes but all other processes are outsourced Thrives on information technology Modular structure A firm assembles product chunks, or modules provided by outside contractors Benefits of organising ✓ More effective and efficient use of resources. EDEM REGINALD KLONU 0256896785  EDEM ✓ Establishes lines of authority ✓ Improves communication NB Benefits of Organisational Structure Ease Strategic Planning Using a strong organizational structure allows a company to better focus on a single set of goals instead of each group working toward its own agenda. This is the result of the flow of communication that an organizational structure offers, as well as the establishment of responsibility and respect for the company hierarchy that comes from strong structure. It helps the company to use resources wisely in the pursuit of company goals as opposed to doubling efforts or experimenting with options perhaps not in the company's best interests. Improve Employee Training A good organizational structure makes employee training easier to administer. And it allows training to remain flexible based on the changes within the organization. When organizational structure regulates the flow of information, then changes in information are easier to monitor and update in a company-wide training program. Refine the Decision Making Process Regardless of the type of organizational structure you choose, there will always be a reporting channel that ends with a final decision maker. For example, in a flat structure in which employees are given wide latitude to make suggestions and take ownership of their work process, decisions are made based on the consensus of employees working in a team. In a top-down structure, decision-making occurs at the senior management level and is then clearly communicated to the rank-and-file to implement. When a defined hierarchy is in place, your company is better equipped to make important decisions and adjust practices to meet the demands of competition EDEM REGINALD KLONU 0256896785  EDEM EDEM REGINALD KLONU 0256896785  EDEM Lecture 9 & 10 Leadership Leadership - The process of influencing people to follow ones guidance towards the attainment of organisational goals. Leader - Someone who can influence others and who has managerial authority. Ideally, all managersyu should be leaders. Power: The ability to affect the behaviour of others. Sources of Power and Influence Organizational Power Position power Reward power Information power Punitive power Personal Influence Expert influence Referent influence Peer influence EDEM REGINALD KLONU 0256896785  EDEM Position Power: It is the power accorded people occupying particular positions as defined by the organisation. Reward Power Power based on the capacity to control and provide valued rewards to others. Punitive/Coercive power Depends on the ability to punish others when they do not engage in desired behaviours. Information Power The ability to influence others based on your access to information and your control of dissemination of information that is important to subordinates and others. Expert power Based on the possession of expertise, skills, or knowledge or information that is valued by others Referent Power: This power results from being admired, personally identified with or liked by others. Peer Influence The ability to influence individual behavior among members of a group Theories of Leadership EDEM REGINALD KLONU 0256896785  EDEM Trait theories Behavioural theories Contingency theories Early Leadership Theories Trait Theories (1920s -1930s) – Research focused on identifying personal characteristics that differentiated leaders from non-leaders was unsuccessful. – Later research on the leadership process identified seven traits associated with successful leadership: Drive, the desire to lead, honesty and integrity, self- confidence, intelligence, job-relevant knowledge, and extraversion Behavioral Theories – University of Iowa Studies (Kurt Lewin) Identified three leadership styles: Autocratic style: centralized authority, low participation Democratic style: involvement, high participation, feedback Laissez faire style: hands-off management Research findings: mixed results No specific style was consistently better for producing better performance. Employees were more satisfied under a democratic leader than under an autocratic leader. Ohio State Studies Identified two dimensions of leader behavior: EDEM REGINALD KLONU 0256896785  EDEM Initiating structure: the role of the leader in defining his or her role and the roles of group members. Consideration: the leader’s mutual trust and respect for group members’ ideas and feelings. Mixed Results of Ohio State Studies High consideration/high structure leaders generally, but not always, achieved high scores on group task performance and satisfaction. Evidence indicated that situational factors appeared to strongly influence leadership effectiveness. University of Michigan Studies Identified two dimensions of leader behavior: – Employee oriented: emphasizing personal relationships – Production oriented: emphasizing task accomplishment Research findings: – Leaders who are employee oriented are strongly associated with high group productivity and high job satisfaction. The Managerial Grid Appraises leadership styles using two dimensions: Concern for people Concern for production Places managerial styles in five categories: Impoverished management Task management Middle-of-the-road management Country club management EDEM REGINALD KLONU 0256896785  EDEM Team management Behavioral Theories of Leadership Behavioral Theories of Leadership (cont.) GENIUS WORLD ANTHONY EDUAH  EDEM Contingency theories of Leadership Proposes that universally important traits and behaviours do not exist and that effective leadership behaviour varies from situation to situation. – Effectiveness of any leadership style depends on the situation. Path-Goal Model – States that the leader’s job is to assist his or her followers in attaining their goals and to provide direction or support to ensure that their goals are compatible with those of the organization – Depending on the situation, leaders assume different leadership styles at different times: Directive leader Supportive leader Participative leader Achievement oriented leader Leader Behaviours Directive – Lets employees to know precisely what is expected of them, giving them specific guidelines for performing task, scheduling work, setting standards of performance and making sure that people follow standard rules and regulations. Supportive involves being friendly to and approachable before employees, EDEM REGINALD KLONU 0256896785  EDEM showing concern for them and their welfare, treating them as equals and creating a friendly climate. Participative – involves consulting employees for their suggestions and input before making decisions. Achievement-oriented leader involves setting challenging goals, expecting subordinates to perform at their highest level and conveying a high degree of confidence in subordinates Situational Factors Subordinate characteristics Perceived Ability (e.g. Subordinates who perceive that they have a great deal of ability will be dissatisfied with a directive style.) Locus of Control – Degree to which people believe that they have control over the outcome of events in their lives Experience (if experienced, then achievement oriented or participative) Environmental Contingencies Task Structure – is the degree to which the requirements of a subordinate’s tasks are clearly specified. Formalization – an organization’s set of procedures, rules and policies. EDEM REGINALD KLONU 0256896785  EDEM Primary work group – refers to the amount of emotional support that is provided by an employee’s immediate work group. EDEM REGINALD KLONU 0256896785  EDEM Lecture 11 Controlling Courage is knowing what not to fear ---- EDEM Definition The process of measuring performance and taking action to ensure desired results (Schermerhorn, 2008) The process of regulating organisational activities so that actual performance conforms to expected organisational goals/standards. Controlling investigates the extent to which planning has been successful. NB Effective controls ensure that activities are completed in ways that lead to the attainment of goals. Whether controls are effective, then, is determined by how well they help employees and managers achieve their goals. Steps /Process of control Performance standards are set EDEM REGINALD KLONU 0256896785  EDEM SMART goals are the basis The standard will itself affect achievement- people will ignore standards that are too high as unattainable, or too low as not being worthwhile. The goals or standards should be specific, measurable, attainable, realistic, and time bound. Measuring actual performance done through observation, Oral and Written reports o Performance appraisal o Budgets o Quantity produced o Number of defective products NB HOW WE MEASURE. Four approaches used by managers to measure and report actual performance are personal observations, statistical reports, oral reports, and written reports. WHAT WE MEASURE. What is measured is probably more critical to the control process than how it’s measured. The following standards that are measured, quantity produced, number of defects produced, employees performance through appraisals etc Compare actual results to standards This helps to determine the degree of variation. NB This step shows the variation between actual and planned performance. There is bound to be some variation, so before acting a manager needs to know the acceptable range of variation- the acceptable limits of variation between actual EDEM REGINALD KLONU 0256896785  EDEM and planned performance. As long as the variation is within this range, the manager need take no action – but as it goes beyond that range, the case for action becomes stronger, especially if the trend is continuing. This stage implies searching for the causes of a significant variation, to increase the chances of an appropriate response. Take corrective action Making improvement is necessary and certain actions must be taken. NB The final step is to act on significant variations from the plan – either to correct future performance or to revise the standard. Attempts to bring performance up to the required standard could involve any aspects of the transformation process and involves taking corrective action such as redesigning a process or resetting a machine or cutting prices to sell excess stocks. This may mean dealing with longer-term issues of design, quality or skill. Actions to take A) Maintain the status quo B) Correct actual performance C) Revise the standard NB To maintain the status quo means to take corrective actions as they occur in the cause of the production or service delivery, actions are taken to corrects problems at once to get performance back on track, Correct actual performance: with this remedial action ae taken when the range of variation between the stated performance and actual performance. EDEM REGINALD KLONU 0256896785  EDEM Revise the standard: When prescribed standard for controlling is perceived to have inherent drawback that needs to rectified, it is modified to suit the prevailing circumstance. It is possible that the variance can be as result of unrealistic staadards. Types of control Based on the process Based on the structure Resource control Classified according to the timing.  Pre-control/ Feed-forward takes place prior to the performance of an activity. o Cost effective NB Feed forward controls are future-directed — they attempt to detect and anticipate problems or deviations from the standards in advance of their occurrence (at various points throughout the processes). They are in-process controls and are much more active, aggressive in nature, allowing corrective action to be taken in advance of the problem. Feed forward controls thus anticipate problems and permit action to be taken before a problem actually arises  Concurrent control It monitors activities while they are being carried out and the work would not proceed until it is acceptable. o Direct supervision (e.g customer satisfaction) EDEM REGINALD KLONU 0256896785  EDEM o Correct problems before they come costly NB Concurrent control, also called steering control because it allows people to act on a process or activity while it is proceeding, not after it is proceeding, nor after it is completed. Corrections and adjustments can be made as and when the need a rises. Such controls focus on establishing conditions that will make it difficult or impossible for deviations from norms to occur.  Feedback control The operation being controlled is completed first and then results are measured and compared to the standard. o E.g final inspection of a car o Getting feedback from customers after eating NB Feedback control is future-oriented. It is historical in nature and is also known as post-action control. The implication is that the measured activity has already occurred, and it is impossible to go back and correct performance to bring it up to standard. Rat