TOPIC 1 Element of Management

8/13/2019 TOPIC 1 Element of Management

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PB301BUSINESS MANAGEMENT

TOPIC 1

ELEMENTS OF MANAGEMENT


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1.1 Definition of Management

- A process to accomplish organizational goals byworking with humans and other organizationalresources.

- A process that is conducted by one or moreindividuals to coordinate the work activities ofemployees, capital, raw material and technologyto achieve results of high quality.

- The process of completing tasks through and withother people


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1.2 GENERAL ELEMENT IN MANAGEMENT

a. Planning plan what to do and how to do it

and achieving it at the specifictime

b. Organizing choose the correct person to dothe specific job/task at thedifferent department with the

skill required

c. Directing make sure the job is being doneby the correct person, influencingand motivating employees

d. Controlling ensuring that the actual activitiesare done as planned


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HISTORY OF MANAGEMENT

Management has evolved into 3 stages :

a. Early Stage (before 1930) :Pre- Classical Approach

- Robert Owen :- emphasis on employees health,

education and the working environment

- Charles Babbage :- Father of Modern Computing

idea of task specialization suggested profit

sharing

Paying salary based on the companys profitability

- Henry R. Towne :- importance of management

skills in running an organization


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Classical Approach

- Frederick W.Taylor (1856 1915)

i. basic principlesa. The best method for performing each task could be

determinedb. Scientific selection of workers, so that each worker would

be given responsibility for the task for which he or she wasbest suited.

c. The science education and development of theworker

d. Intimate, friendly cooperation between manager andlabour

ii. Broke each job into its component and designed the

quickest and best methods of performing each component.

iii. Encourage employers to pay more productive worker at ahigher rate than other differential rate system.


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2. Henry L Gantt (1861 1919)

i. Work with Taylor but came up with a new idea:

- every worker who finished a days assigned work loadwould win a 50-cen bonus

- 2ndmotivation, the supervisor would earn a bonus for eachworker who reached the daily standard plus an extra bonusif all the workers reached it : spur supervisors to train theirworkers to do a better job.

ii. Workers progress was rated publicly and recorded onindividual bar chart :- originated a charting system forproduction scheduling : the GANTT CHART

iii. Gantt Chart formed the basis for two charting devices toassist in planning, managing and controlling complexorganizations : Critical Path Method(CPM) and ProgramEvaluation and Review Technique (PERT)


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3. The Gilbreths

Frank B. Gilbreth ( 1868-1924) Lillian M. Gilbreth (1878-1972)

i. husband and wife team

ii. Collaborated on fatigue and motion studies and focusedon ways of promoting the individual workers welfare

help workers reach their full potential as human beings

iii. Every motion that was eliminated reduced fatigue : themost economical motions for each task in order toupgrade performance and reduce fatigue

iv. Motion study would raise worker morale because itsobvious physical benefits and because it demonstratedmanagements concern for the worker.


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4. Henri Fayol FATHER OF MODERN MANAGEMENT

i. management consists of specific function that must be followed byeach manager

ii. Every organization must be manage according to 5 managementfunction : Planning, Organizing, Commanding, Coordinating andControlling

iii. Henri Fayols Management Principles

a) Division of Work : the most people specialize, the more efficiently

they can perform their work.

b) Authority : Managers must give orders so that they can get things

done. While their formal authority gives them the right to command.

c) Discipline : members in the organization need to respect the rulesand agreements that govern the organization. It result from goodleadership at all levels of the organization, fair agreements andjudiciously enforced penalties for infractions.


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d) Unity Of Command : Each employee must receivedinstruction from only one person.

e) Unity Of Direction : Operations within the organizationthat have their same objective should be directed by onlyone manager using one plan

f) General Interest over Individual Interest : No priorityshould be given to the interest of an individual or aspecific group of employees in an organization

g) Reward : Fair reward is given to the employees and theemployer.

h) Centralization : Decreasing the role of subordinates indecision making centralization; increasing their role isdecentralization. Managers should retain finalresponsibility but at the same time give theirsubordinates enough authority to do their jobs properly.


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i) The Hierarchy/ The line of authority in an organization; authorityflows from the top to the bottom of the organization. Encourageshorizontal communication

j. Organization : materials and people should be in the right placeat the right time

k) Equity : Managers Should be both friendly and fair to their

subordinates

l) Stability of Tenure : A high employee turnover rate underminesthe efficient functioning of an organization.

m) Initiatives : Employees are encouraged to take their own

initiatives to complete their task

n) Pride and mutual loyalty : Unity and the spirit of groupwork aregiven priority in completing a task


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2. Max Weber (1864-1920)

i. Developed a theory of bureaucratic management that stressed theneed for a strictly defined hierarchy governed by clearly definedregulations and line authority. Job division is determined clearly

ii. The Bureaucracy Administrative System is based on the following 5principles :

A) The managers authority is derived from the managers position inan organization

B) Positions held by individuals are not based on their social position,rather is due to their performance (skills and technical qualification)

C) Positions, jobs, authority, duties, responsibilities and therelationship between these elements must be explained in detail.

D) The hierarchy of authority must be created in order for employeesto know to whom they should report.

E) Implementation rules, norms, and standard operating procedures

(SOP) are design to control employee behaviour.


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b. Middle Stage ( 1930 1945 )

Administrative and Behavioural Approach:- emphasized human aspects in the production process

- divided in 2 theories :

i. Human Relation Movement

ii. Behavioural Science Theory

Human Relation Movement- ways managers interact with their employees to

motivate employees to work harder and better

- Hawthorne Studies focused on social aspect and therecognition of teamwork at the work place


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Hawthorne Studies

Elton Mayo investigate the behavioural and human aspects at

Hawthorne Work Of The Western Electric Company.

Divide into 2 phases :

i. Relay Assembly Test Room Experiment :

The relationship between physical condition and the production

level of employees ( the brightness of light and the efficiency oftwo groups). Human factor in an organization significantly

influences the production level of employees.

ii. The Bank Wiring Observation Room Experiment :

An increase in the level of production is influence by socialfactors such as team spirit, sense of belonging and good

relationship between team members


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Behavioural Science Theory

Founder of this theory :

i. Douglas McGregorTheory X and Theory Y

Assumptions of Theory X (Bad Workers)

- Dislike of work and will avoid responsibility if possible

- Most workers must be threatened with punishment to forcethem toward the achievement of organizational objectives

- Average workers prefers to be directed to avoidresponsibility, has relatively little ambition and wantssecurity


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Assumptions of Theory Y ( Good Workers)

- A worker will exercise self-direction and self-control inachieving objectives to which the worker is committed to.

- Average worker learns under proper conditions, not only toaccept but to seek responsibility

- The capacity to exercise a relatively high degree of

imagination, ingenuity and creativity to resolveorganizational problems.

- Under the conditions of working environment, theintellectual potentialities of average workers are only partlyutilized.

- The physical and mental effort in work is likened to play orrest. The average worker does not inherently dislike work


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i. Abraham Maslow _ Maslows Hierarchy

Of Five Human Needs Theory

Physiological Need(food, drinks,clothing & sleep

Safety Need(loss of job, food & Shelter

Social Need( desire to form friendship

Esteem Need(respected, appreciated &honoured

Self-actualization Need(become auseful person


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Quantitative Approach :use mathematical methods, statistics and other

information tools to aid decision making in order to

increase organizational effectiveness.

3 Theories

a) Management Science Theory : involves the use of computerized

mathematical model

b) Operations Management Theory : manage production activities and

the delivery of products and services (such as forecasting and

inventory analysis.

c) Management Information System Theory : process of designing and

managing information by using computers


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MANAGER:

- is an individual who are owners, founders or

employees in an organization.

- Individual who are hired to influence, lead andtrain employees in an organization

Responsibilities of managers :

i. Assist in planning, organizing, influencing and controlling theorganization to achieve the organizations goals and

objectivesii. Influence and assess the results and performance ofemployees

iii. Act as a generator or catalyst to the organization

iv. Act as a connector to employees and parties outside theorganization

v. Amend management activities according to changes in theinternal and external environment

vi. Coordinate employees activities and ensure that theorganization resources are utilized efficiently and effectively


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Characteristic of a Successful Managers

a) Practise open communicationable to receivecomments and ideas.

b) Set clear directionensure employees participatein setting the goals.

c) Establish objective recognitionemployees whodemonstrate good performance

d) Provide guidance and support to employeeshelpemployees to perform an activity or task andcooperate with subordinates to solve problems

e) Design and monitor a control systemcontinuouscontrol ensure that the actual performance isaccordance with the planned performance


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Three levels of management

Top line managers

(Corporate Managers

Middle line managers

(Tactical Managers

First line managers

(Operational Managers)


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Three types of managers skills

a. Conceptual skillsinvolves the managersthinking, information processing and planningabilities or how the organization fits into theindustry, community and the broader businessand social environment

b. Humanistic skillsthe way a managerrelates to workers, including the ability tomotivate, facilitate, coordinate, lead,communicate and resolved conflicts

c. Technical skillsunderstanding of and theproficiency in performing specific tasks.Mastery of methods, techniques andequipment involved in specific functions


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The roles of the manager

a. Interpersonal relationship

i. Figureheadii. Leaderiii. Public relation Officer

b. Disseminating information

i. Observerii. Disseminator of informationiii. Spokesperson

c. Decision-makingi. Entrepreneurii. Disturbance Handleriii. Resource Allocatoriv. Negotiator


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THATS ALL FOR TODAY.

HAVE A PLEASANT DAY

TOPIC 1 Element of Management

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