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1.

Fayols Principles And Functions


Functions of management
1. to forecast and plan
2. to organize
3. to command or direct
4. to coordinate
5. to develop output
6. to control (French: contrler: in the sense that a manager must receive feedback
about a process in order to make necessary adjustments and must analyse the
deviations)

Principles of management
1. Division of work. Work should be divided among individuals and groups to ensure
that effort and attention are focused on special portions of the task. Fayol presented
work specialization as the best way to use the human resources of the organization.
2. Authority. Managers must be able to give orders. Authority gives them this right.
Note that responsibility arises wherever authority is exercised.
3. Discipline. Employees must obey and respect the rules that govern the organization.
Good discipline is the result of effective leadership, a clear understanding between
management and workers regarding the organization's rules, and the judicious use
of penalties for infractions of the rules.
4. Unity of command. Every employee should receive orders from only one superior.
5. Unity of direction. Each group of organisational activities that have the same
objective should be directed by one manager using one plan.
6. Subordination of individual interests to the general interest. The interests of any
one employee or group of employees should not take precedence over the interests
of the organization as a whole.
7. Remuneration. Workers must be paid a fair wage for their services.
8. Centralisation. Centralisation refers to the degree to which subordinates are
involved in decision making. Whether decision making is centralized (to
management) or decentralized (to subordinates) is a question of proper proportion.
The task is to find the optimum degree of centralisation for each situation.
9. Scalar chain. The line of authority from top management to the lowest ranks
represents the scalar chain. Communications should follow this chain. However, if
following the chain creates delays, cross-communications can be allowed if agreed
to by all parties and superiors are kept informed.
10. Order. People and materials should be in the right place at the right time.
11. Equity. Managers should be kind and fair to their subordinates.
12. Stability of tenure of personnel. High employee turnover is inefficient. Management
should provide orderly personnel planning and ensure that replacements are
available to fill vacancies.
13. Initiative. Employees who are allowed to originate and carry out plans will exert high
levels of effort.
14. Esprit de corps. Promoting team spirit will build harmony and unity within the
organization.

2. Fielders Contingency Leadership Model

Fiedlers situational contingency theory holds that group effectiveness depends on
an appropriate match between a leaders style (essentially a trait measure) and the
demands of the situation. Fiedler considers situational control the extent to which a
leader can determine what their group is going to do to be the primary contingency
factor in determining the effectiveness of leader behaviour.
Fiedlers contingency model is a dynamic model where the personal characteristics
and motivation of the leader are said to interact with the current situation that the
group faces. Thus, the contingency model marks a shift away from the tendency to
attribute leadership effectiveness to personality alone

Theories that seek to define leadership style and answer: if this situation, then this
is the best style to use.
Proposes that effective group performance depends upon the proper match
between the leaders style of interacting with followers and the degree to which the
situation allows the leader to control and influence
A key factor in leadership success was an individual A key factor in leadership
success was an individual s basic leadership style, which he classified as either task-
oriented or relationship oriented.
o Task-oriented
o Relationship oriented
Least-preferred co-worker (LPC) questionnaire

Situational factors in matching leader to the situation:

o 1. Leader-member relations - Degree of confidence, trust + respect
subordinates have in their leader.
o 2. Task structure - Degree that job assignments are procedurised
o 3. Position power - Influence leader has over power variables such as hiring
& firing.

3. House Path-Goal Theory
Theory that says it is a leaders job to assist followers and to provide direction and
support that are needed to attain goals. The theory argues that leaders will have to
engage in different types of leadership behaviour depending on the nature and the
demands of a particular situation. It is the leaders job to assist followers in attaining
goals and to provide the direction and support needed to ensure that their goals are
compatible with the organizations goals
Four leadership behaviours
Directive leader: Lets subordinates know what is expected of them, schedules work
to be done, and gives specific guidance on how to accomplish tasks.
Supportive leader: Is friendly and shows concern for subordinates needs.
Participative leader: Consults with subordinates and uses their suggestions before
making a decision.
Achievement-oriented leader : Sets challenging goals and expects subordinates to
perform at their highest level

4. Job Design

Human resource inventory
o A review of the current make-up of the organisations human resources
Job analysis
o An assessment that defines a job and the behaviours necessary to perform
the job (knowledge, skills and abilities )
o Requires conducting interviews, engaging in direct observation, and
collecting the self-reports of employees and managers
United Parcel Service (UPS)
o Time and motion studies Time and motion studies
o 1000 industrial engineers rode in delivery vans and supervised employee
performance
Job (re)design
o Scripted interactions
Outcomes
o Productivity growth
o Organisational growth
o Profitability
o Employee Outcomes

Job description
o A written statement of what the job holder does how it is done and why A
written statement of what the job holder does, how it is done, and why it is
done.

General Description of Job Duties: General Maintenance and repair of all equipment used
within a particular district
1. Essential Duty (40%) : Maintenance of Equipment
o Tasks: Keep a log of all maintenance performed on equipment.
o Replace parts and fluids according to maintenance schedule Replace parts
and fluids according to maintenance schedule.

2. Essential Duty (40%): Repair of Equipment
o Tasks: Requires inspection of equipment and a recommendation that the
piece be scraped or repaired

3. . Essential Duty (10%): Testing and Approval
o Tasks: Ensure that all required maintenance and repair has been done
according to manufacturer specs.

4. Essential Duty(10%): Maintain Stock
o Tasks: Maintain inventory of parts needed for maintenance and repair of
equipment. Responsible for ordering parts at lowest cost

Job specification
o A written statement of the minimum qualifications that a person must
possess to perform a given job successfully.

5. Katz Skills
Robert Katz identified three managerial skills essential to successful management: technical,
human, and conceptual.
Technical skill involves process or technique knowledge and proficiency. Managers
use the processes, techniques and tools of a specific area.
Human skill involves the ability to interact effectively with people. Managers interact
and cooperate with employees.
Conceptual skill involves the formulation of ideas. Managers understand abstract
relationships, develop ideas, and solve problems creatively.
Thus, technical skill deals with things, human skill concerns people, and conceptual
skill has to do with ideas.





6. Mintzbergs Managerial Roles

Interpersonal
1. Figurehead As a manager, you have social, ceremonial and legal
responsibilities. You're expected to be a source of inspiration. People look up
to you as a person with authority, and as a figurehead.
2. Leader This is where you provide leadership for your team, your
department or perhaps your entire organization; and it's where you manage
the performance and responsibilities of everyone in the group.
3. Liaison Managers must communicate with internal and external contacts.
You need to be able to network effectively on behalf of your organization.

Informational
1. Monitor In this role, you regularly seek out information related to
your organization and industry, looking for relevant changes in the
environment. You also monitor your team, in terms of both their
productivity, and their well-being.
2. Disseminator This is where you communicate potentially useful
information to your colleagues and your team.
3. Spokesperson Managers represent and speak for their organization.
In this role you're responsible for transmitting information about your
organization and its goals to the people outside it.-

Decisional
1. Entrepreneur As a manager, you create and control change within the
organization. This means solving problems, generating new ideas, and
implementing them.
2. Disturbance Handler When an organization or team hits an unexpected
roadblock, it's the manager who must take charge. You also need to help
mediate disputes within it.
3. Resource Allocator You'll also need to determine where organizational
resources are best applied. This involves allocating funding, as well as
assigning staff and other organizational resources.
4. Negotiator You may be needed to take part in, and direct, important
negotiations within your team, department, or organization.

7. Performance Management
Performance management (PM) includes activities which ensure that goals are consistently
being met in an effective and efficient manner. Performance management can focus on the
performance of an organization, a department, employee, or even the processes to build a
product of service, as well as many other areas.
PM is also known as a process by which organizations align their resources, systems and
employees to strategic objectives and priorities.

Performance management system
o Establishing performance standards and appraising employee performance in
order to arrive at objective HR decisions and to provide performance in order
to arrive at objective HR decisions and to provide documentation in support
of those decisions.
o Ensuring that employees activities and outputs are aligned with the
organisations goals.
Performance appraisal
o Obtaining data on how well an employee is doing his or her job Obtaining
data on how well an employee is doing his or her job
Performance feedback
o Providing data to employees about their performance effectiveness Providing
data to employees about their performance effectiveness
Performance appraisal methods
Compensation and benefits
Direct financial gain
Grow sales
Reduce costs in the organization
Stop project overruns
Aligns the organization directly behind the CEO's goals
Decreases the time it takes to create strategic or operational changes by communicating
the changes through a new set of goals

Motivated workforce
Optimizes incentive plans to specific goals for over achievement, not just business as
usual
Improves employee engagement because everyone understands how they are directly
contributing to the organizations high level goals
Create transparency in achievement of goals
High confidence in bonus payment process
Professional development programs are better aligned directly to achieving business
level goals

Improved management control
Flexible, responsive to management needs
Displays data relationships
Helps audit / comply with legislative requirement
Simplifies communication of strategic goals scenario planning
Provides well documented and communicated process documentation

8. Recruitment And Selection

Recruitment
o The process of locating, identifying, and attracting capable applicants to an
organisation
o Any practice or activity carried on by the organisation with the primary
purpose of identifying and attracting potential employees. purpose of
identifying and attracting potential employees.
Aims of recruitment
o Increase the pool of qualified job applicants Increase the pool of qualified job
applicants.
o Reduce the number of under or over-qualified job applicants.
o Increase the probability that job applicants once recruited and Increase the
probability that job applicants, once recruited and selected, will remain with
the organisation for a long period of time.
o Meet EEO and other legal and social obligations
Internal
Skills Inventory (computer record Systems)
Job posting via bulletin boards (including electronic), newsletters or personal letters
External
Advertising
Employment Agencies
Educational Institutions
Employee Referrals
Unsolicited Applications
Professional Associations

Selection
Process of screening job applicants to ensure that the most appropriate candidates
are hired
Selection Methods
1. Interviews : A conversation between two or more people to gather information and
evaluate qualifications of an applicant for employment information and evaluate
qualifications of an applicant for employment
2. Reference checks: Obtaining data from people who know the applicant
3. Biographical information: Information in a written document that the organisation
can verify via outside checks
4. Physical ability tests: Tests that distinguish between individuals on their physical
capabilities physical capabilities
5. Cognitive ability tests: Tests that distinguish between individuals on their mental
capabilities
6. Personality inventories: Categorise individuals by what they are like
7. Work sample tests: Simulate the job to assess likely job performance

Selection method standards Selection method standards
o Reliability (of prediction): Degree of consistency with which a selection device
measures the same thing.
o Validity (of prediction): Proven relationship between the selection device
used and relevant criterion for successful performance in an organisation
o Generalisability
o Utility
o Legality
Selection decision outcomes

9. Strategy
Strategy
Direction in which an organisation intends to move and creation of a path by which it
intends to get there.
Strategic management
o The set of managerial decisions and actions that determines the long-run
performance of an organisation.
o A process or approach to addressing the competitive challenges faced by an
organisation.

SWOT analysis
Growth Strategies
Stability Strategies
Renewable Strategies
Emergent Stratagies


10. The Big 5 Model

1. Extroversion
a. Sociable gregarious assertive talkative Sociable, gregarious, assertive,
talkative, expressive.
2. Adjustment
a. Emotionally stable, non-depressed, secure and content.
3. Agreeableness
a. Courteous, trusting, good-natured, tolerant cooperative and forgiving
tolerant, cooperative and forgiving.
4. Conscientiousness
a. Dependable, organised, persevering, and thorough and achievement
orientated.
5. Inquisitiveness
a. Curious, imaginative, artistically sensitive, broad-minded and playful.

11. The Hersey And Blanchards Situational Leadership

The fundamental underpinning of the situational leadership theory is that there is no
single "best" style of leadership. Effective leadership is task-relevant, and the most
successful leaders are those that adapt their leadership style to the maturity ("the
capacity to set high but attainable goals, willingness and ability to take responsibility
for the task, and relevant education and/or experience of an individual or a group for
the task") of the individual or group they are attempting to lead or influence.
Effective leadership varies, not only with the person or group that is being
influenced, but it also depends on the task, job or function that needs to be
accomplished

Describes two leadership dimensions
o Task behaviour
o Relationship behaviour
Which combined, lead to four leadership styles... Which combined, lead to four
leadership styles...
o Telling: High task, low relationship behaviour
o Selling: High task, high relationship behaviour
o Participating: Low task, high relationship behaviour
o Delegating: Low task, low relationship behaviour
Followers readiness varies from level 1 to 4
o (1) Unable and unwilling to (4) Able and willing
Leaders evaluate subordinates readiness and adopt the right style

12. Training And Development

Training
o A planned effort by a company to facilitate employees learning job related
competencies
Presentation methods
o Classroom instruction Audio-visual methods Classroom instruction, Audio-
visual methods
Group-building methods
o Adventure learning Team training Adventure learning, Team training
Hands-on methods
o On-the-job training job training
o Simulations and activities
o Case studies Case studies
o Behaviour modelling
What does effective training do?
o Affective outcomes
o Cognitive outcomes
o Skill-based outcomes
o Results
o Return on investment (ROI)
Purposes of training and development
o Improve performance
o Update Employees Skills
o Solve organisational problems
o Orient new employees
o Satisfy personal growth needs