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Chapter 9: Management Principles

– process of integrating resources for accomplishment of objectives
– involves basic functions: planning, organizing, staffing, directing, and controlling
– primary force that coordinates the activities of subsystems within organizations
– part of the transformation process
group of people working together in a structured and coordinated way to achieve goals
delegation from top to lower levels of management and the right of managers to direct others and take action because of their position
the obligation to perform an assigned activity or see that someone else performs it
a state of being responsible to one’s self, to some organization, or even to the public
Managerial efficiency
the ability to get things done correctly; getting the most output from the least amount of input
Managerial effectiveness
the ability to choose appropriate objectives; selecting the right things to accomplish the certain ends
Managerial levels
First level (supervisors) – responsible for supervising employees; functional responsibilites may be indicated as a part of their title

Middle managers – primary responsibility to coordinated activites that implement policies of the organization at a technical level. Direct activity of other managers. Responsible for communication btwn upper and lower levels of org.

Top managers – small group of executives that contorl the organization. Develop vision, est. operating policies, and guide organizational interaction with the environment

General manager
responsible for all the activities of a unit
Functional manager
responsible for only one area of organization activity (the bar)
Role of managers: Interpersonal roles
figure head role – “representational responsibility of management”. Cerimonial duties must be performed and may involve written proclamation or an appearance at important function

leader role – manager in charge of organization or unit is also reponsible for the work of the staff. Functions of role includes hiring and training employees to creating environment that will motivate staff

liason role – dealing with people inside and outside the organization

Roles of managers: Informational roles
monitor role – manager constantly searches for info to use to become more effective

disseminator role – manager transmits info to subordinates who otherwise would probably have no access to info; make decisions concerning the info needs of staff members

spokesperson role – manager transmits info to people inside and outside of the organization or unit

Roles of managers: Decision roles
entrepreneur role – manager is voluntary initiator of change

distubance handler role – manager responds to situations that are beyond their control.

resources allocator role – manager decides how and to whom the resources of the organization will be distributes; must be mindful of the needs of the unit while considering the priorities of the overall operation

negotiator role – manager participates in a process of give-and-take until a satisfactory compromise is reached

Management skills
Technical Skill. A technical skill involves an understanding of, and proficiency in, a specific kind of activity, particularly one involving methods or techniques.

Such skill requires specialized knowledge, analytical ability, and expertise in the use of tools and procedures

Human Skill. Human or interpersonal, skill concerns working with people and understanding their behavior.

Human skill, which requires effective communication, is vital to all the manager’s activities and must be consistently demonstrated in actions.

Conceptual Skill. Conceptual skill is the ability to view the organization as a whole, recognizing how various parts depend on one another and how changes in one part affect other parts.

Conceptual skill also involves the ability to understand the organization within the environmental context; a good example is the relationship of the organization to other similar organizations and to suppliers within the community.

Management Functions: Planning
Plans establish organizational objectives and set up procedures for reaching them.
Hierarchy of Plans
The initial plans are the goals and objectives of the organization, thus providing the basis for objectives of the various subsystems.

Goals represent the desired future conditions that individuals, groups, or organizations strive to achieve.

Objectives are merely goals, or end points, and set the direction for all managerial planning.

Once objectives are determined, specific plans such as policies, procedures, and methods can be established for achieving them in a more systematic manner.

Policies are the guidelines for action in an organization, and procedures and methods define steps for implementation.

Dimensions of Planning: Repetitiveness
Repetitiveness. Standing plans, or plans for repetitive action, are used over and over again; single-use plans, also called single purpose, are not repeated but remain as part of the historical records of the organization.
Dimensions of Planning: Time Span
Time span. The time span for planning refers to short-range versus long-range planning.

Short-range, or operational, planning typically covers a period of 1 year or less; for example, the operating budget for a year.

Long-range planning in most organizations encompasses a 5-year cycle; however, a longer time span may be essential for some aspects of planning, such as a major building program.

Dimensions of Planning: Level of Management
A relationship exists between the hierarchy of plans and the level of management involved in the planning effort

Generally, top managers, who function at the policy-making level of the organization are responsible for broad, comprehensive planning involving goals and objectives

Middle managers, at the organizational or coordinative level, are responsible for developing policies

First-line (a.k.a. front-line) managers at the technical or operational level are responsible for developing procedures and methods.

Dimensions of Planning: Flexibility
Flexibility. One of the major considerations in planning is the permissible degree of flexibility.

Long-range planning involves decision making that commits resources over an extended period of time. There is a need for flexibility.

Rapidly changing technology, competitive and market situations, and political pressures make forecasting extremely difficult.

Rigid planning at early stages involves the risk of inability to cope with changes.

Management Functions: Organizing
Organizing is the process of grouping activities, delegating authority to accomplish activities, providing for coordination of relationships, and facilitating decision-making.
Management Fucntions: Staffing
Among the most critical tasks of a manager is staffing, the recruitment, selection, training, and development of people who will be most effective in helping the organization meet its goals

Competent people at all levels are required to ensure that appropriate goals are pursued and that activities proceed in such a way that these goals are achieved.

Human resources planning
designed to ensure that the organizaitons labor requirements are met continuously
Recruitment and selection
Concerned with developing a pool of job applicants and evaluating and choosing among them.
Orientation, training and development
processes designed first to acquaint newcomers with the organization and its goals and policies and to inform them of their responsibilities.

Later, training is designed to improve job skills, and development programs are used to prepare employees for increased responsibilities.

performance appraisals
concerned with comparison of an individual’s performance with established standards for the job.
Management Functions: Directing
Human resources function particularly concerned with individual and group behavior.

Directing and channeling human effort for the accomplishment of objectives

Primarily concerned with creating an environment in which employees are motivated to contribute to achieving goals

Viewed as being concerned with interpersonal and intergroup relationships to create cooperation and enlist commitment to organizational goals.

All managing involves interaction with people and thus demands an understanding of how we affect and are affected by others.

When managers direct others, they use that understanding to accomplish tasks through the work of other members of the organization.

Management Functions: Controlling
Process of ensuring that plans are being followed.

It involves comparing what should be done with what was done and then taking corrective action, if necessary.

Controlling must be a continuous process that affects and is affected by each of the other managerial functions.

Control standards
Goals and objectives, and policies established in the planning process
group of people working together in some form of coordinated effort to attain objectives.

An ideal organization results in the most efficient use of resources.

Organization structure
based on the objectives that management has established and on plans and programs to achieve these objectives; different types of structures will be required for traditional and new organizations, each with different objectives.
Traditional Organization
One of the primary reasons for organizing in the traditional organization is to establish lines of authority, which create order.

Organization chart and job descriptions or position guides—pattern of formal relationships and duties.

Differentiation or departmentalization—assignment of various activities or tasks to different units or people of the organization.

Integration—coordination of separate activities or tasks.

Delegation of authority—power, status, and hierarchical relationships within the organization.

Administrative systems—guidance of activities and relationships of people in the organization through planned and formalized policies, procedures, and controls.

Innovative organizations
Employers are challenged to improve the quality of work life and to develop a corporate, or organizational, culture.

Empowered Decision Making: Employees, not just managers, are involved in decision-making.

Sociability: A sense of belonging to the organization is created for all members.
New bases of management power: A shift has occurred from use of only downward authority to inclusion of upward and lateral lines of authority and input.

Personal consideration: Greater recognition is given to the importance of individual employees, not just the job they perform.

Team-based with group recognition: Formation of teams of employees and/or managers working together to accomplish goals with more emphasis on team rather than individual recognition.

Self-fulfillment: Employee job satisfaction and sense of accomplishment is more valued.

Flat hierarchy: The number of managerial levels has been reduced.

Emphasis on vision and values: Companies are finding it more important to formulate clear visions and values to which employees can commit themselves.

Managers as change agents: Change is viewed as a critical component in organization success, and managers are expected to stimulate and facilitate change.

Technologically savvy: Effective use of all forms of technology and a presence on the Internet are necessary components of organizations.

Corporate Culture
The shared philosophies, values, assumptions, beliefs, expectations, attitudes, and norms that knit an organization together.
Positive cultures common qualities
Integrity: Building trust between people in the organization

Bottom-up style of management: Involving employees as part of the team

Having fun: Finding ways both at work and outside of work for fun

Community involvement: Participating in community service programs

Emphasis on physical health and fitness: Practicing a belief that a sound mind goes along with a sound body.

Division of Labor
Organizing also improves the efficiency and quality of work, as the coordinated efforts of people working together begin to produce a synergistic effect.
Division of Labor: Vertical
Based on the establishment of lines of authority.

In addition to establishing authority at various levels of the organization, vertical division of labor facilitates communication flow.

Division of Labor: Horizontal
Groups employees at similar levels in the organization allowing them to work together more easily.

A horizontal structure encourages employees to share ideas across all levels and departments.

Division of Labor: Team
Involves the entire organization being made up of work groups or teams rather than the more formal organizational structure.

The teams design and do the organization’s work; there is no managerial hierarchy involved.

Division of Labor: Matrix
Matrix structure is often used for special projects.

In this structure, experts from a variety of departments are pulled together to work with a project manager on a specified project; when the project is completed, employees return to their areas.

Underlying concepts of organizaiton
Because managers cannot supervise an unlimited number of subordinates, different areas of organizational activity must be defined, with someone placed in charge of each area.
Authority, Responsibility, Delegation
Authority is defined as the right of a manager to direct others and to take action because of the position held in the organization.

Authority is delegated down the hierarchy of the organization as designated by upper management.

Responsibility is a concept closely related to authority and refers to an obligation for performing an assigned activity.

parity principle
authority and responsibilty must coincide; management must delegate sufficient authority so subordinates can do their job
Span of management
often referred to as span of control, is concerned with the number of people any one person can supervise effectively.

Several factors are involved in determining the proper number:

Organizational policies. Clearly defined policies can reduce the time managers spend making decisions; the more comprehensive the policies, the greater the span of management.

Availability of staff experts. Managers can have increased span if staff experts are available to provide advice and services.

Competence of staff. Well-trained workers can perform their jobs without close supervision, thus freeing competent managers to expand their span of management.

Objective standards. In organizations with objective standards and standardized procedures, workers have a basis by which to gauge their own progress, thus allowing managers to concentrate on exceptions. — As a result, larger spans are possible.

Nature of the work. Less complicated work tends to require less supervision than more complicated work.– Generally, the simpler and more uniform the work, the greater the possible span.

Distribution of workforce. The number of areas where supervised workers are on duty may inhibit severely a manager’s ability to visit all work sites. –The greater the dispersion of workers, the shorter is the span.

Formal Authority
Formal authority is considered a top-down theory because it traces the flow of authority from the top to the bottom of the organization.
Formal authority is also referred to as positional authority, meaning that authority is derived from the position or office.
Acceptance Authority
Based on the concept that managers have no effective authority unless and until subordinates are acquiescent.
Although they may have formal authority, this authority is effective only if subordinates accept it.
Authority of competence
Based on technical knowledge and experience.
A command may be accepted, not because of organizational title, but because the employee believes the person giving the command is knowledgeable.

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