Management: Science, Theory and Practice

A Global and Entrepreneurial Perspective

MANAGEMENT

PRINCIPLES OF MANAGEMENT

Sr. No.Chapter No.Chapter Heading11Management: Science, Theory and Practice (27th September 2010)24Essentials of Planning and Managing by Objectives (4th Oct)35Strategies, Policies and Planning Premises (11th Oct)46Decision Making (18th Oct)57The Nature of Organizing, Entrepreneuring, and Reengineering (25th Oct)68Organization Structure: Departmentation (1st Nov)79Line/ Staff Authority, Empowerment and Decentralization (5th Nov)810Effective Organizing and Organization Culture914Human Factors and Motivation1015Leadership1116Committees, Teams and Group Decision Making1218The System and Process of ControllingSessional EvaluationExternal Evaluation1515205050Quiz per ClassAssignment & PresentationMid-termTotal SessionalExternal Exam

Planning

Organizing

Leading

Controlling

123456NAMEREG NO.20-09-104/10/201011/10/201018-10-1025-10-101-11-10AAMIR AHMEDA1CE-210003ATTENDEDWRONG6ABSENTATTENDEDattendedADEEL RAZAA1CE-309005ATTENDEDABSENTABSENTAHMED JAWADA1CE-309003ABSENTABSENT11ATTENDEDABSENTAHMED SHAHA1CE-110012ATTENDEDWRONG35ATTENDEDABSENTALI MUHAMMAD SHARIFA1CE-209007ATTENDEDWRONGABSENTABSENTATTENDEDABSENTARIF SHAMIMA1CE-309002ABSENTABSENTABSENTABSENTABSENTattendedASIF AZIZA1CE-310005ABSENTWRONG84ATTENDEDattendedDANISHA1CE-210001ABSENTABSENT51ATTENDEDattendedFAHAD ASADA1CE-310008ABSENTABSENT19ATTENDEDattendedGHULAM ZAKARIAA1CE-310006ABSENTcorrect97ATTENDEDABSENTIRSHAD ALIA1CE-110006ATTENDEDABSENT2ABSENTABSENTABSENTIMRAN SALEEMA1CE-110001ATTENDEDWRONGAABSENTATTENDEDattendedHAMEEDULLAHA1CE-309004ATTENDEDABSENTABSENTIMTIAZ AHMED SIDDIQUIA1CE-208002WRONGattendedMUHAMMAD RIZWAN GULZARA1CE-310004ABSENTABSENT13ABSENTattendedMOIN IQBALA1CE-110010ATTENDEDABSENT9ABSENTABSENTattendedMUHAMMAD ADNANA1CE-310002ATTENDEDWRONG60ABSENTattendedMUHAMMAD OWAISA1CE-310001ABSENTWRONG52ATTENDEDABSENTMUHAMMAD SHARIQUE RAFIQUEAICE-310007ATTENDEDWRONG95ABSENTattendedSAEEDULLAH KHANA1CE-110002ATTENDEDABSENTABSENTSARMAD ALIA1CE-310003ABSENTWRONG81ATTENDEDattendedSAROSHABSENTABSENT2ABSENTABSENTABSENTSYED FARHAN ALIA1CE-209001ABSENTWRONG51ATTENDEDattendedSYED SHAHZAIB ALIA1CE-110008ATTENDEDABSENT6ABSENTATTENDEDABSENTSYED ZAIN QAMARABSENTABSENT5ABSENTABSENTABSENTSYED ZEESHAN NASIRABSENTABSENT3ABSENTATTENDEDABSENTTANVEER AHMED SAGHEERA1CE-110004ABSENTWRONG2ABSENTATTENDEDattendedUMAIR HABIB KHANA1CE-210004ATTENDEDWRONG81ABSENTABSENTYOUSUF QAMARA1CE-110011ATTENDEDWRONG9ABSENTATTENDEDattended

YOUR PERFORMANCE

ASSIGNMENTS

Sessional Marks

Compensatory assignments

Classes left? Sunday class? Next few classes

Project (4 groups of 7 each) 15 marks

Portfolio Matrix (Chap 3)

Planning stages of a new company (Chap 2,3)

Departmentation (chap 6)

Controls (chap 18)

Mark dates, assignment to students

Line/ Staff Authority, Empowerment and Decentralization (5th Nov)

Chapter 7

TABLE OF CONTENTS

AUTHORITY AND POWER

EMPOWERMENT

LINE/ STAFF CONCEPTS AND FUNCTIONAL AUTHORITY

DECENTRALIZATION OF AUTHORITY

DELEGATION OF AUTHORITY

THE ART OF DELEGATION

RECENTRALIZATION OF AUTHORITY AND BALANCE AS THE KEY TO DECENTRALIZATION

QUIZ

AUTHORITY AND POWER

Power:

The ability of individuals or groups to induce or influence the beliefs or actions of other persons or groups

Authority:

The right in a position to exercise discretion in making decisions affecting others

AUTHORITY AND POWER

Types of Power:

Legitimate Power: Its the power of an individual because of the relative position and duties of the holder of the position within an organization (A govt officer, a manager, a policeman etc has legitimate power

Expert Power: Its an individuals power deriving from the skills or expertise of the person and the organizations needs for those skills and expertise (Doctors, Lawyers, Professors, Skilled craftsmen have expert power)

Referent Power: Its the power or ability of individuals to attract others and build loyalty. Its based on thecharisma andinterpersonal skills of the power holder (for instance Political leaders, movie stars etc have referent power)

Reward Power: This is the power that arrives from ones ability to grant rewards (for example university professors, managers etc have reward power

Coercive Power: Its the application of negative influences. It includes the ability to demote or to withhold other rewards; the power to punish (a manager can fire the staff, and withhold the rewards as well)

EMPOWERMENT

Empowerment:

Employees at all levels in the organization are given the power to make decisions without asking their superiors or permission

Because they know their work better

Power should be equal to responsibility

It gives participation and bring loyalty

It makes the processes quicker

LINE/ STAFF CONCEPTS AND FUCTIONAL AUTHORITY

Line authority:Its the relationship in which a superior exercises direct supervision over a subordinate- an authority relationship in a direct line or steps

Staff relationship:this is advisory relationship. The staff officers investigate, research and give advice to the line managers

Functional authority:the right delegated to an individual or a department to control specified processes, practices, policies, or other matters relating to activities undertaken by persons in other departments

DECENTRALIZATION OF AUTHORITY

Decentralization:

The tendency to disperse decision making authority in an organized structure is termed as decentralization

Careful selection is to be made on which decisions to push down the hierarchy and which to be kept with the top

Polices are to be made clear

Trainings are to be done and controls are required to be placed

DELEGATION OF AUTHORITY

The process of delegation:

It involves the following four steps

Determining the results expected from a position

Assigning tasks to the position

Delegating authority for accomplishing these tasks

Holding the person in that position responsible for the accomplishment of the tasks

THE ART OF DELEGATION

Personal attitudes towards delegation:

Receptiveness

Willingness to let go

Willingness to allow mistakes by subordinates

Willingness to trust subordinates

Willingness to establish and use broad controls

Overcoming Weak Delegation

Define assignments and delegate authority in light of results expected

Select the person in light of the job to be done

Maintain open lines of communication

Establish proper controls

Reward effective delegation and successful assumption of authority

Recentralization of authority

It is the centralization of authority that was once decentralized; normally not a complete reversal of decentralization, as the authority delegated is not wholly withdrawn

ADVANTAGES AND DISADVANTAGES OF DECENTRALIZATION

Advantages:

Relieves top management of some burden of decision making and forces upper level managers to let go of

Encourages decision making and assumptions of authority and responsibility

Gives managers more freedom and independence in decision making

Promotes establishment and use of broad controls that may increase motivation

Makes comparison of performance of different organizational units possible

Facilitates setting up of profit centers

Facilitates product diversification

Promotes development of general managers

Aids in adaptation of fast changing environment

ADVANTAGES AND DISADVANTAGES OF DECENTRALIZATION

Disadvantages:

Makes it more difficult to have a uniform policy

Increases complexity of coordination of decentralized organizational units

May result in loss of some control by upper level managers

May be limited by inadequate control techniques

May be constrained by inadequate planning and control systems

Can be limited by the lack of qualified managers

Involves considerable expenses for training managers

May be limited by external forces (national labor unions, governmental controls, tax policies)

May not be favored by economies of scale of some operations

MIDTERM

Question # 1.Define management and name the functions of managers

Question # 2.What is MBO? Write any five benefits or the failures of MBO.

Question # 3.Define Planning and name the types of plans

Question # 4.Draw and describe the portfolio matrix by naming all four SBUs that could be identified out of it.

Question # 5.Define any four of the following:

1. Decision Making

2. Satisficing

3. Programmed decisions

4. Non programmed decisions

5. Creativity

6. Innovation

7. Brain storming

Question # 6.Draw and describe the formal and informal organization

Question # 7.Define Departmentation by customer group and write its advantages and disadvantages