Chapter 9

Management Principles

The Management Process

Management a process whereby unrelated resources are integrated into a total system for accomplishment of objectives. Involves:

Planning Organizing Staffing Leading Controlling

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Managing Organizations
Organization a group of people working together in a structured & coordinated way to achieve goals. Management is a set of activities directed at an organizations resources for achieving goals effectively & efficiently.

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Management Concepts
Authority delegation from top to lower levels of management & the right of managers to direct others & take action of their position. Responsibility obligation to perform an assigned activity or see that someone else performs it.

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Management Concepts
Accountability state of being responsible to ones self, to some organization, or to the public. Efficiency Doing things right. Effectiveness Doing the right things.

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Managerial Levels
Manager anyone responsible for people & other organizational resources. Managerial Levels:

First-line supervises employees Middle coordinates activities implementing an organizations policies Top executives that control the organization

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Managerial Levels

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TQM Managerial Levels

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TQM Managerial Levels

TQM philosophy adaptations:

Create smaller organizational units Form cross-functioning teams Empower employees to make decisions Reduce the number of organizational levels Place emphasis on vision & values Find ways to take advantage of the Internet

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General & Functional Managers

General manager responsible for all activities of a organizational unit. Functional manager responsible only for one area of organizational activity.

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Mintzbergs Roles of Managers

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Mintzbergs Interpersonal Roles

Focus on relationships. Interpersonal Roles:

Figurehead responsible for representing the management (ceremonial duties). Leader responsible for creating an environment that will motivate the staff. Liaison responsible for dealing with people both inside & outside the organization.

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Mintzbergs Informational Roles

Focus on communication. Informational Roles:

Monitor searches for information to become more effective. Disseminator transmits information to subordinates. Spokesperson transmits information to people inside & outside the organization or unit.

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Mintzbergs Decisional Roles

Focus on unit strategy. Decisional Roles:

Entrepreneur voluntary initiator of change. Disturbance handler responds to situations that are beyond his or her control. Resource allocator decides how & to whom the organizations resources will be distributed. Negotiator participates in a process of give & take until a satisfactory compromise is reached.

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Management Skills
Skill an ability that can be developed & that is manifested in performance. Katzs Management Skills:

Technical understanding of, & proficiency in, a specific kind of activity. Human working with people & understanding their behavior. Conceptual ability to view the organization a whole.

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Managerial Levels & Skills

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Management Functions

Five management functions:

Planning Organizing Staffing Leading Controlling

Performed during coordinating activities of the subsystems of the organization.

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Planning
Determining in advance what should happen. Hierarchy of plans:

Goals desired future conditions that organizations strive to achieve. Objectives goals that set the direction for all managerial planning. Policies guidelines for action Procedures & methods define steps for implementation.
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Planning

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Dimensions of Planning (Repetitiveness)

Standing Plans
Plans for repetitive action Used many times Examples

Policies Procedures Methods Rules

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Standing Plans
Policy general guide to organized behavior developed by top-level management. Procedure Chronological sequence of activities. Method details for one step in a process. Rules specification of action, stating what must or must not be done.

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Dimensions of Planning (Repetitiveness)

Single Use Plans

Plans for a single use Used only once Examples

Programs Projects Budgets

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Dimensions of Planning (Time Span)

Short range plans

Covers 1 year or less

Covers 1-5 year period

Long range plans

Strategic plans
Continuous and systematic process Focuses on future outcomes, how to accomplish and how to measure success

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Dimensions of Planning (Level of Management)

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Organizing

Process of:
Grouping activities Delegating authority to accomplish activities Providing for coordination of relationships Facilitating decision making

Formal Organization the outcome of organizing, usually in chart form.

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Span of Management
Number of employees that can be effectively supervised by one manager. Factors in determining proper number:

Organizational policies Availability of staff experts Competence of staff Objective standards Nature of the work Distribution of workforce

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Delegation
Delegation - assigning job activities & authority to a specific employee within the organization. Authority is delegated down the hierarchy of the organization. Effective delegation elements:

Specific tasks must be assigned clearly. Sufficient authority must be granted. Responsibility must be created.

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Staffing
The recruitment, selection, training, & development of people who will be most effective in helping the organization meet its goals. Primarily carried out by a personnel department. Line managers are responsible for training, & development.

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Staffing Steps

Human Resources Planning

designed to ensure an organizations labor requirements are continuously met. concerned with developing, evaluating, & choosing a pool of job applicants.
acquaints newcomers with organization & its goals & policies & informs them of their responsibilities.

Recruitment & Selection

Orientation, Training, & Development

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Staffing Steps

Performance Appraisal

compares an individuals performance with established standards for the job.

encompasses all activities concerned with administration of the wage, salary, and benefits program.

Compensation

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Leading
Management function of directing human resources for the accomplishment of objectives. Includes:

Morale Employee satisfaction Productivity Communication

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Controlling

Management function of ensuring that plans are being followed. Involves:

Measuring actual performance & comparing it with desired performance or standards. Analyzing deviations between actual & desired performance & determining whether or not deviations are within acceptable limits. Taking actions to correct unacceptable deviations.

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Quality of Work Life (QWL)

Guidelines:
Decisions are made at the lowest possible level. Teams of employees are responsible for a complete job. Technical & social potential of employees & the organization is developed. Quality & quality of employees are emphasized.

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Quality of Work Life (QWL)

Guidelines (cont.):
Safety & health of employees are emphasized. Availability of immediate feedback of information required to perform a job. Problems are solved by teams, but responsibility is shared by all levels of the organization.

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Quality of Work Life

Participative management involving employees in the decision making process. Leader-member relations refers to nature of the relationship between the leader & work group. Team-based leadership two or more people who interact regularly to accomplish a common purpose or goal. Self-managed teams teams that do the daily work.

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Corporate Culture

Includes shared:
Philosophies Values Assumptions Beliefs Expectations Attitudes Norms

Knits an organization together.

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Positive Corporate Culture Qualities

Integrity involves trust between people in the organization. Bottom-up management style gives employees a feeling of being on the team. Having fun is important for both managers & employees. Community involvement in social service programs is appreciated by employees. Emphasis on physical health & fitness reflects a belief that a sound mind goes along with a sound body.
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Caring Culture Checklist

Have a written mission statement. Remind employees of the mission statement. Have a hands-on style of management. Foster open relationships between management & employees. Empower hourly employees. Give incentives for superior performance. Give employees an ownership stake in the business.
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Vertical Division of Labor

Based on the establishment of lines of authority. Chain of command - clear & distinct lines of authority within an organization.

Delegated authority is given up by the person who delegated it.

Parity principle organizational authority & responsibility must coincide.

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Horizontal Division of Labor

Emphasis on encouraging employees to share ideas across all levels & departments. Reduces the number of levels in each department.

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Underlying Concepts of Organization

Different areas of organizational activity must be defined. Someone must be placed in charge of each area. The source & use of authority is fundamental to organizational effectiveness.

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Authority
Formal authority exists because of position in the organization. Positional authority derived from the position or office. Acceptance authority based on employees acceptance of that authority. Authority of competence based on a managers competence or expertise.

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Departmentalization

Process of grouping jobs according to some logical arrangement. Departments are commonly organized by:

Function Product Geography Customer Process/Equipment Time or Shift

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Line & Staff

Line Position a position in the direct chain of command. Staff Position intended to provide expertise, advice, & support for line positions. Line Authority formal authority created by the organizational hierarchy. Staff Authority based on expertise in specialized activities.

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Administrative Intensity
Degree to which managerial positions are concentrated in staff positions. High Administrative Intensity many staff positions relative to line positions. Low Administrative Intensity emphasizes more line positions.

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Organization Chart
Graphic portrayal of the organization structure. Depicts basic relationships of positions & function. Specifies the formal authority & communication network of the organization.

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Coordination
Process of linking activities of various departments in the organization. Linking role manager who links with managers at higher levels with those at their own level Mechanisms for coordination:

Committees Task forces

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Job Analysis
Process of determining duties & tasks of a job. Involves a systematic investigation of jobs such as:

Collecting data on tasks Performance standards Skills required

Occupational Information Network, O*NET (www.onetcenter.org)

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Job Description

List of duties, working conditions, & tools & equipment needed to perform the job. Job Description Sections:

Title used to indicate level in the organization. Identification includes location of the job, the person to whom the jobholder reports, & often the number of employees in the department. Duties statements of duties arranged in order of importance.

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Job Specification (job spec)

List of abilities, skills, & other credentials needed to do the job. Statement of job conditions relating to the health, safety, & comfort of the employee.

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Performance Standards
Desired results at a definite level of quality for a specified job. Performance the attainment of a desired result at a defined level of quality for a specified purpose. Should be based on work-related behaviors & clearly stated in writing.

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Job Design
An outgrowth of job analysis. Concerned with structuring jobs to improve organization efficiency & employee job satisfaction. Job a set of all tasks that must be performed by a given employee.

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Job Design

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Job Enlargement

Developed to increase the total number of tasks that employees perform.

Tasks individual activities that make up a job.

Prevents employee boredom from repetition of same tasks day after day.

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Job Enrichment
Increases the variety & number of tasks & control the employee has over the job. Factors for motivating employees:

Achievement Recognition Growth Responsibility Performance

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Job Characteristics

Job dimensions that improve efficiency & job satisfaction:

Skill variety Task identity Task significance Autonomy feedback

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Employee Work Teams

Two or more employees who interact regularly to accomplish a narrow set of goals. Created by management to solve specific problems.

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