1. Management Principles
Chapter 9
Management Principles

2. 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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3. 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 organization’s resources for achieving goals effectively & efficiently.
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4. 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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5. Management Concepts
Accountability – state of being responsible to one’s self, to some organization, or to the public.
Efficiency – “Doing things right.”
Effectiveness – “Doing the right things.”
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6. Managerial Levels
Manager – anyone responsible for people & other organizational resources.
Managerial Levels:
First-line –supervises employees
Middle – coordinates activities implementing an organization’s policies
Top – executives that control the organization
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7. Managerial Levels ©2004 Pearson Education, Inc.
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8. TQM Managerial Levels ©2004 Pearson Education, Inc.
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9. 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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10. 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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11. Mintzberg’s Roles of Managers
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12. Mintzberg’s 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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13. Mintzberg’s 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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14. Mintzberg’s 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 organization’s resources will be distributed.
Negotiator – participates in a process of give & take until a satisfactory compromise is reached.
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15. Management Skills
Skill – an ability that can be developed & that is manifested in performance.
Katz’s 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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16. Managerial Levels & Skills
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17. Management Functions Five management functions:
Planning
Organizing
Staffing
Leading
Controlling
Performed during coordinating activities of the subsystems of the organization.
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18. 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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19. Planning ©2004 Pearson Education, Inc.
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20. Dimensions of Planning (Repetitiveness)
Standing Plans
Plans for repetitive action
Used many times
Examples
Policies
Procedures
Methods
Rules
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21. 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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22. Dimensions of Planning (Repetitiveness)
Single Use Plans
Plans for a single use
Used only once
Examples
Programs
Projects
Budgets
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23. Dimensions of Planning (Time Span)
Short range plans
Covers 1 year or less
Long range plans
Covers 1-5 year period
Strategic plans
Continuous and systematic process
Focuses on future outcomes, how to accomplish and how to measure success
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24. Dimensions of Planning (Level of Management)
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25. 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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26. 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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27. 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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28. 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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29. Staffing Steps Human Resources Planning Recruitment & Selection
designed to ensure an organization’s labor requirements are continuously met.
Recruitment & Selection
concerned with developing, evaluating, & choosing a pool of job applicants.
Orientation, Training, & Development
acquaints newcomers with organization & its goals & policies & informs them of their responsibilities.
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30. Staffing Steps Performance Appraisal Compensation
compares an individual’s performance with established standards for the job.
Compensation
encompasses all activities concerned with administration of the wage, salary, and benefits program.
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31. Leading
Management function of directing human resources for the accomplishment of objectives.
Includes:
Morale
Employee satisfaction
Productivity
Communication
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32. 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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33. 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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34. 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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35. 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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36. Corporate Culture Includes shared: Knits an organization together.
Philosophies
Values
Assumptions
Beliefs
Expectations
Attitudes
Norms
Knits an organization together.
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37. 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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38. 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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39. 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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40. 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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41. 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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42. Authority
Formal authority – exists because of position in the organization.
Positional authority – derived from the position or office.
Acceptance authority – based on employee’s acceptance of that authority.
Authority of competence – based on a manager’s competence or expertise.
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43. 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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44. 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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45. 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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46. 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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47. 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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48. 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 (
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49. 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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50. 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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51. 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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52. 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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53. Job Design ©2004 Pearson Education, Inc.
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54. 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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55. 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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56. Job Characteristics
Job dimensions that improve efficiency & job satisfaction:
Skill variety
Task identity
Task significance
Autonomy
feedback
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57. 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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