Management

Overview

Managers
Management
Organizations.

Managers
perform
Management
in the
Organizations

Organizations ?

Organization

An entity where
2 persons or more
working together
for a common purpose

Organizations NAMES ?

An entity where
2 persons or more
working together
for a common purpose

People
Purpose
Process
(POLCA)

Egyptian Pyramids
Massive Stone Design
built 4500 years ago
2.3 mil stone blocks

Egyptian Pyramids
Base 230 m long
Height 146 m
Built using rollers,
ropes and levers

Great China Wall

688 BC to 1644 AD
300 yrs 500 KM
Total 6000 KM

Great China Wall

Base 20 feet wide
Top 11 feet wide
Height 7 to 37 feet
All made by Hands

Great China Wall

To mark Territories
To defend the area

People / Managers
Perform
To achieve
Common Goals
Common Purpose

People / Managers
Achieve goals
Using Management
Process(POLCA)

Manager
is the one who
achieve goals
By working with the people
or
through people

Managers
Management
Organizations.

Bringing Quality in
Organizations
(Edward Deming)

Manager
is the one who
achieve goals
By working with the people
or
through people

Managers
perform
various Roles !
(Henry Mintzberg)

Roles
Inter-personal
Informational
Decisional

Interpersonal Role
Figurehead
Leader

Interpersonal Role
Involves developing
and maintaining
positive
relationship
with others !

Informational Role
Monitor
Disseminator
Spokesperson

Informational Role
receiving and
transmitting info
to other org. units.

Decisional Role
Entrepreneur
Disturbance Handler
Resource Allocator
Negotiator

Decisional Role
involves making
significant
decisions that
affect the
organization !

Managers
perform
various Functions !
(Henri Fayol)

Management is a
process of carrying
POLCA Functions
to achieve
organizational goals.

Good Managers
perform these
POLCA functions
with
Efficiency and
Effectiveness

Efficiency means
The ability to make
the best use of
available resources in
the process of
achieving goals !

Effectiveness means
The ability to choose
appropriate goals and
achieve them !

POLCA Functions
Planning
Organizing
Leading
Controlling
Assurance

Management Functions

Management Functions

Management Functions
Planning
The process of setting goals and
deciding how best to achieve them

Management Functions
Organizing
The process of allocating human and
non-human resources so that plans can
be carried out successfully.

Management Functions
Leading
The process of influencing others to
engage in the work behaviors
necessary to reach organizational
goals.

Management Functions
Controlling
The process of regulating
organizational activities so that
actual performance conforms to
expected organizational standards
and goals.

Management
Henri Fayol
Edward Deming
Henry Mintzberg

While performing
Managers
use
various Skills !

Key Management
Skills !

Technical Skills
Human Skills
Conceptual Skills

Management Skills
Technical - knowledge of
proficiency in a
certain specialized field
Human - ability to work
well with other people
both individually and in a
group

Management Skills
Conceptual- ability to think
and to conceptualize about
abstract and complex
situations

Managerial Titles
First-line managers - manage
the work of non-managerial
individuals who are directly
involved with the production
or creation of the
organizations products

Managerial Titles
Middle managers - all
managers between the
first-line level and the top
level of the organization
manage the first-line
managers

Managerial Titles
Top managers - responsible
for making organization-wide
decisions and establishing
the plans and goals that
affect the entire organization

Management
Yesterday and
Today

Management
Links to other
Fields of Study

Management
Economics
Sociology
Psychology
Political Science
Maths and Stats

Adam Smith (1776)

Division of Labour

Division of Labour
the breakdown of
jobs into narrow and
repetitive tasks

Early ideas Management

1. Robert Owen
(17711858)
2. Charles Babbage
(17921871)

3. Henry R. Towne
(1844 192

Robert Owen
Advocated concern
for the working and
living conditions for
the employees.

Charles Babbage
Interest in operations of
factories. Built 1st mechanical
calculator, ideas on work
(physical & mental)
specialisation, production
efficiency, incentive
and profit-sharing plans.

Industrial revolution

Henry R. Towne (18441924)

Henry R. Towne (18441924)

1.Scientific Management
F. W. Taylor, F. & L. Gilbreth,
H. Gantt
2.Bureaucratic Management
M. Weber
3.Administrative
Management
H. Fayol .

Taylors (1865, 1915)

Four Principles of Scientific
Management (1911)

1.Study each part of a task

scientifically, and develop a best
method to perform it.

Taylors
Four Principles of Scientific
Management
2. Carefully select workers and train
them to perform a task using the
scientifically
developed method.

Taylors
Four Principles of Scientific
Management

3.Co-operate fully with workers to

ensure they use the proper
method.

Taylors
Four Principles of Scientific
Management
4.Divide work and responsibility
so management is responsible
for planning work methods using
scientific principles and
workers are responsible for
executing work accordingly.

Frank & Lillian Gilbreth

Time & motion study
Human implications of
Scientific Management
Henry Gantt
Pay incentives
Gantt chart

(Max Weber .. (1864 -1920 )

German Sociologist
An approach emphasizing the
need for organizations to
operate in a rational manner
rather than relying on owners
and managers whims!

Webers Ideal Bureaucracy

1) Impersonality: Rules,
procedures
applied uniformly
regardless of individual
personalities and personal
considerations.

Webers Ideal Bureaucracy

2) Formal Rules & Procedures:
Written rules should specify
the work behavior desired
from organization members
and ensuring uniformity.

Webers Ideal Bureaucracy

3. Well-defined Hierarchy:
Multiple levels of positions
with clear reporting
relationships among levels
with an ability to establish
accountability of actions.

Webers Ideal Bureaucracy

4. Career Advancement on
basis of Merit:

Selection and promotion is

based on members
qualification and
performance.

Henri Fayol (1841-1925)

mining Eng. and then became MD
in 1888. A French Industrialist
his Mining & Metallurgical Co.
still survives today in central

Administrative Management
being a top manager, Fayol
developed his management
theory so to be taught to
individuals who had
administrative responsibilities.
Fayol isolated the main activity
types in industry or business!

within Managerial Activities

Fayol identified five followings:
Planning
Organizing
Commanding
Co-ordinating
Controlling

Henry Fayols 14 principles

1)Division of work
2) Authority
3) Discipline

4) Unity of Command
5) Unity of Direction
6) Subordination of individual interest to general interest

7) Remuneration
8) Centralization
9) Scalar Chain

10) Order
11) Equity
12) Stability of Personnel Tenure
13) Initiative
14) Esprit de Corps

Henry Fayol 14 principles

1) Division of work :work specialization can
result in efficiencies and is applicable to
both managerial and technical functions.
there may be limitations how much you
can divide the work.

Henry Fayol 14 principles

2)Authority: Managers must be able to give
order. Authority gives them this right.
Along with authority, however, goes
responsibility.

Henry Fayol 14 principles

3) Discipline: Discipline is absolutely
necessary for the smooth running of
an organization, BUT state of
discipline shall depend essentially on
its leaders worthiness..

Henry Fayol 14 principles

4) Unity of Command: An employee
should receive orders from one
superior only.

Henry Fayol 14 principles

5) Unity of Direction: Activities aimed at
the same objective should be
organized so there is one plan and
one person incharge.

Henry Fayol 14 principles

6) Subordination of individual interest to
general interest: The interests of one
employee or group of employees
should not prevail over the
organizations interests and goals.

Henry Fayol 14 principles

7) Remuneration:
Compensation should be fair to both
employee and employer.

Henry Fayol 14 principles

8) Centralization: The proper amount of
centralization or decentralization
depends on the situation. The
objective optimum use of personnel
capibilities.

Henry Fayol 14 principles

9) Scalar Chain: A scalar hierarchical)
chain of authority extends from top to
bottom of an organization and defines
the communication path. However,
horizontal communication is also
encouraged as long as managers in
the chain are kept informed.

Henry Fayol 14 principles

10) Order: Materials should be kept in
well-chosen places to facilitate
activities. Similarly, due to good
organization and selection, the right
person should be in the right place.

Henry Fayol 14 principles

11) Equity: Employees should be treated
with kindness and justice.

Henry Fayol 14 principles

12) Stability of Personnel Tenure:
Because time is required to become
effective in new jobs, high turnover
should be prevented.

Henry Fayol 14 principles

13) Initiative: Managers should
encourage and develop subordinates
initiative to the fullest.

Henry Fayol 14 principles

14) Esprit de Corps: Since union is
strength, promoting team spirit will
build harmony and unity within the
organization..

There should be proper co-ordination of work at

all levels Subordinates should be encouraged
to develop informal relations among
themselves.
Efficient employees should be rewarded and
those who are not up to the mark should be
given a chance to improve their performance

Management
prior 1900 :Worker as a Social
Animal
after 1900:Worker as a
Machine
after Hawthorne Studies by
E.Mayo)Worker should be
taken as a human!

Behavioral Theorists
Hawthorne studies
group of studies conducted
at Hawthorne plant of an
electric company during
1920s and 1930s , the
result of which ultimately
led to the human relation
view of Management.

Hawthorne studies
Studies demonstrated that :
1) Human social and physiological needs
are as important as money

2)Social interaction of work group is as

important as organization of actual work.
3)Human factor cant be ignore in any
management planning.

Hawthorne Effects

Behavioral Theorists
Abraham Maslow(1908-70)
(Hierarchy of Needs)
Douglas McGregor(1906-1964)
(Theory x and theory y)

Quantitative
Operations research
Operations management
Mis (management information
system)

Management Science or
Operations Research

Approach aimed at increasing decision

effectiveness through use of
Mathematical models &Statistical
methods.

Operations Management

Function or field of expertise primarily

responsible for managing Production &
Delivery of an organization's Products
and Services.

Management information
systems (MIS)

Field of Management focused on

designing & implementing computerbased information systems for use by
management.

Contemporary
1. Systems Theory
2. Contingency Theory
3. Emerging Theories (Theory z)

External Environment
External environment is made up of:
1.The Mega-Environment
The broad conditions and trends in
societies in which an organization
operates.
2.The Task Environment
Specific outside elements with which
an organization interfaces in the
course of conducting its business.

The Mega-Environment
Five major elements:
1.Technological element
Current state of knowledge regarding
production of products & services.

2.Economic element
Systems of producing, distributing &
consuming wealth.
3.Legal-political element
Legal & governmental systems within
which an organization must function.

The Mega-Environment
4.Socio-cultural element
Attitudes, values, norms, beliefs,
behaviors & associated demographic
trends characteristic of a given geographic
area.

The Task Environment

Five elements:
1.Customers and clients
Individuals and organizations purchasing
products/services.

2.Competitors
Other organizations either offering (or a
high potential of offering) rival
products/services.
3.Suppliers
Organizations and individuals supplying
resources an organization needs to
conduct its operations.

The Task Environment

4.Labour supply
Individuals potentially employable by an
organization.

5.Government agencies
Agencies providing services and
monitoring compliance with laws and
regulations at local, State or regional and
national levels.

The Organizations
Culture
A system

of shared meaning
and beliefs held by
organizational members.

The Organizations
Culture
The
Source of Culture:

Usually reflects the vision or mission of the founders

image of what the organization should be.

How Employees Learn Culture:

Stories - a narrative of significant events or people
Rituals - repetitive sequences of activities

Material symbols essential in creating an

organizations personality.

Language - Members of an organization develop unique

terminology or jargon.

ORGANIZATIONAL
STAKEHOLDERS

Organizational Social
Responsibility

The

obligation of an
organization to seek actions
protecting and improving
societys welfare along with
its own interests.

21st Century Trends And

Issues
Entrepreneurship
Three important themes:

1.Pursuit of opportunities Capitalizing on

environmental change to create value.
2.Innovation Introducing new approaches
to satisfy unfulfilled market needs.
3.Growth - Not content, to remain small

21st Century Trends And

Issues
Workplace Spirituality

A recognition of an inner life. Growing

interest in spirituality at all levels and in
all areas of organizations . Because
employees are looking for meaning,
purpose, and a sense of feeling of
community from their work and their
workplace.

21st Century Trends And

Issues
Globalization:
All organizations are faced with
the opportunities and
challenges of operating in a
global market, no longer
constrained by national
borders.

Understanding
The Global
Environment
and
WTO

Regional Trading Alliances

Global competition is influenced by

regional trading and cooperation
agreements.

EU
NAFTA

SARC
ASEAN

European Union
(EU)

Ethical Guidelines for

Managers
1.Obey the law.
2.Tell the truth.
3.Show respect for people.
4.Above all, do no harm.
5.Participation not paternalism.
6.Responsibility requires action.

Regional Trading
Alliance
The European Union created by
Maastricht Treaty in 1992
1. A unified economic and trade entity.
2. A single market without barriers to
travel, employment, investment, and
trade
3. Economic and Monetary Union
(EMU) Euro - common currency
4. Assertion of economic power
5.Created one of the worlds richest
markets

Regional Trading Alliance

Association

of Southeast Asian
Nations (ASEAN)

1.Alliance of 10 Southeast Asian nations

2.Created in one of the fastest growing

economic regions in the world
3.Could compete NAFTA and EU

The Greening Of
Management
Definition
Recognition of the close link
between an organizations
decisions and activities and
its impact on the natural
environment.

POLCA
Planning

Effective Decision
Making
Steps to effective decision
making:
1.Identify the Problem
Scan for change,

Effective Decision
Making
2.Generate alternative
solutions
Uncritically brainstorm
to develop alternatives,
combine & improve
ideas.

Effective Decision
Making
3.Evaluate & choose an
alternative
Feasibility, Quality, Cost,
Speed, Ethics,
Acceptability.

Effective Decision
Making
4.Implement and monitor
Plan and implement,
evaluate effect on
others, monitor

Nature of
Managerial
Decision Making
Types of problems faced:
1.Crisis problems
Serious. Requires
immediate action

Nature of
Managerial
Decision Making
2.Non-crisis problems
Requires resolution
but not both immediate
and important.

Nature of
Managerial
Decision Making
3.Opportunity problems
Opportunity for
organizational gain
IF appropriate action
taken.

Nature of
Managerial
Decision Making
Decision Making Situations:
1.Programmed decisions
Routine, repetitive, well structured
situations by
use of pre-determined
decision rules.

Nature of
Managerial
Decision Making
Decision Making Situations:
1.Programmed decisions
Routine, repetitive, well structured
situations by
use of pre-determined
decision rules.

Nature of
Managerial
Decision Making
2.Non-programmed
Decision Making
Pre-determined decision
rules are impractical due
to novel &/or ill structured
situations.

Bounded Rationality
Four constraints on rational
decision making
1.Limited resources
2.Information overload
3.Memory problems
4.Expertise problems

Non-Rational Models
Managers seek
alternatives only until
they find one which
looks satisfactory,
rather than seeking an
optimal decision.

Planning Aids
Increasing Decision
Effectiveness

Planning Aids

For Assessing Environment

For Allocating Resources

Contemporary Planning Techniques

Planning Aids
For Assessing Environment:

Environmental Scanning
Forecasting
Benchmarking

Planning Aids
For Allocating Resources:

Budgeting
Scheduling
Break even Analysis

Planning Aids
Contemporary Planning Techniques:

Project Management
Scenarios Analysis

For Assessing Environment:

Environmental Scanning;
The screening of large
amounts of information to
Anticipate changes in the environment.

For Assessing Environment:

SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats

For Assessing Environment:

Competitive Intelligence;
An activity that seeks to identify
who are our competitors, what
are they doing, and how their
actions will affect our
organization.

FORECASTING
Process of making
predictions about
changing conditions
and future events that
may affect the business
of an organization.

FORECASTING
Quantitative
Qualitative or Technological..
Judgmental

Quantitative forecasting

Relies on the numerical data and

mathematical models to predict future
conditions

1) Quantitative

Time Series Methods

It uses historical data to forecast the

future.

Causal method

A dependent variable is a variable

expected to be predicted or
explained. An independent variable is
a variable in an experiment that the
market research can, to some extent,
manipulate, change, or alter

2) Qualitative or Technological..
Aim to predict long term
technology trends by relying on
creativity, judgments and
experts knowledge.(Delphi Analysis)

3) Judgmental
Relies on individual
judgments or committee
agreements about
future conditions

3) Benchmarking
The search for the best practices
among competitors that lead to their
superior performance..

Allocating resources

Budgeting
Scheduling
Break even Analysis

Budgeting
Budgeting; The Budget is a
numerical plan for allocating
resources to specific
activities in a specific period.

Scheduling
Detailing what activities have to be
done, the order in which they are to
be completed, who is to do
each, and when they are to
be completed.

Scheduling
GANTT Charts: A scheduling
chart developed by Henry Gantt
that shows actual and planned
output over a period of time.

Break even Analysis;

A technique for identifying the
point at which total revenue is
just sufficient to cover total
costs.

1000

Total cost

Rupees (in thousands)

1200

Total revenue
Target profit

800

Break-even point

600
400
Fixed cost

200
0

10

20

30

40

50

Sales volume in units (thousands)

Contemporary Planning
Techniques:
Project Management
Scenarios Analysis

Project Management;
The task of getting a projects
activities done on time, within
budget, and according to
specifications.

Scenarios Analysis;
A consistent view of what the
future is likely to be.

Types of Planning?
Informal Planning
1. Nothing is written down
2.Little or no sharing of goals
3.General and lacking in continuity

Formal Planning
1.Written and defined specific goals
2.Specific action programs exist to
achieve goals

How Do Managers Plan

Developing Plans !
Approaches to Planning
Traditional, top-down approach
Planning done by top managers

How Do Managers Plan

Developing Plans
Approaches to Planning
Inclusive Approach
Employees at each level develop
plans suited to their needs
Employees acquire greater sense
of the importance of planning
when they participate in the
process

The planning process

Setting goals and
developing plans
that leads to goal attainment and
ultimately,
to organisational efficiency
and effectiveness.

How Do Managers Plan?

Steps in Goal Setting
1 - Review the organizations
mission
2 - Evaluate available
resources
3 - Determine the goals
individually or with input from
others

How Do Managers Plan?

Steps in Goal Setting
4.Should be congruent with the
organizational mission and
goals in other organizational
areas
5- Write down the goals and
communicate them to all who
need to know them

How Do Managers Plan?

Steps in Goal Setting

6- Review results and
whether goals are being met

The planning process

Mission
The organisations
purpose
or
fundamental reason for
existence.

The planning process

Goal
Future target
or
end result an
organisation wishes to
achieve.

The planning process

Plan
Means devised
for
attempting to reach a
goal.

The planning process

Mission

Goals Plans

Goal
Attainment
(Org.
Efficiency
and
Effectiveness)

Levels of goals
Top Managers
Organisational Perspective

Middle Managers
Departmental Perspective

1st level Managers

Unit/individual Perspective

Strategic
Goals

Strategic
Plans

Tactical
Goals

Tactical
Plans

OperationalOperational
Goals
Plans

Goal Content
Content should be:
Challenging
Specific
Measurable
Attainable
Relevant
Time limited

Linking Goals & Plans

Levels of Goals and

Plans:
Operational
Tactical
Strategic

Linking Goals & Plans

Time span of Goals

and Plans:
Short (Operational)
Intermediate (Tactical)
Long range (Strategic)

Starting at the Top

Clarify how the company will
Strategic Plans serve customers and position
itself against competitors (2-5 years)

Tactical Plans

Specify how a company will use

resources, accomplish goals
(6 months to 2 years)

Operational
Plans

Day-to-day plans for

producing or delivering
products and services
over a 30-day to six
month period.

A Corporations Mission
to provide society with superior products
and services by developing innovations and
solutions that improve the quality of life and
satisfy customer needs, and to provide
employees with
meaningful work and advancement
opportunities,
and investors with a superior rate of return.

Kinds of Operational Plans

Single-Use Plans

Standing Plans

Plans that cover unique,

one-time-only events

Plans used repeatedly to handle

frequently recurring events.
Three kinds are: policies, procedures,
and rules and regulations.

MBO
Management by Objective (MBO)
Idea of MBO is opposite to the traditional
management.
Decision and planning is made in collaboration
with the subordinates.
Difficulties with MBO
People do not understand the philosophy of
MBO.
Application of MBO
Subordinates set their goals by themselves
with the consultancy of top management

POLCA
Organizing

Key Concepts
Organizing
Deciding how to best group
organizational activities and
resources!

Key Concepts
Responsibility
Obligation to carry out
duties and achieve goals
related to a position.

Key Concepts
Authority
Right to make decisions, carry
out actions, and direct others in
matters related to the duties and
goals of a position.

Key Concepts
Accountability

Requirement to provide
satisfactory reasons for
significant deviations from
duties or expected results.

Key Concepts
Feedback
Degree to which the job
provides for clear and timely
information about

performance results.

Key Concepts
Organization Chart
Line diagram depicting broad
outlines of an organizations
structure!

Key Concepts
Organization Chart
Line diagram depicting broad
outlines of an organizations
structure!

Nature of Organisational
Chart/Structure
ABC INC.
C.E.O.

DIRECTOR
H.R.M.

DIRECTOR
FINANCE

MANAGER
FINANCE

SUBORDINATE

DIRECTOR
SALES

Principles of Chart
Design:
1. As few hierarchical levels as
possible.
2. Charts should show who has
authority over who.
3. Charts should show official
lines of responsibility &
communication.

Nature of
Organizational
Structure
Four elements:
1.Assignment of tasks
and responsibilities to
individuals and units.

Nature of
Organisational
Structure
2.Clustering these (units
and people) to form a
hierarchy.
3.Mechanisms for vertical
co-ordination.
4.Mechanisms for
horizontal co-ordination.

6 Basic Building
Blocks
1. Designing Jobs
(Job Specialization)
2. Grouping Jobs
(Departmentalization)
3. Establishing Reporting
Relationships

6 Basic Building
Blocks
4. Distributing Authority
5. Coordinating Activities
6. Differentiating Between
Positions

1. Job Design
The determination of
an individuals
work-related
responsibilities.

Job Specialization

Degree to which the

overall task of the
organization is broken
down into smaller
components.

Job Specialization
Benefits
1. Workers can become proficient at a task
2. Transfer time between tasks decrease
3. Specialized equipment can be developed
4. Employee replacement becomes easier

Limitations
1. Employee boredom and dissatisfaction

2. Grouping Jobs:
Departmentalization
The process of grouping
jobs according to some
logical arrangement.

2. Grouping Jobs:
Departmentalization
Rationale for Departmentalization
Organizational growth exceeds the
owner-managers capacity to
personally supervise all of the
organization.
Additional managers are employed
and assigned specific employees to
supervise.

Departmentalization
4 Basic Types:
1. Functional
2. Product
3. Customer
4. Location

Departmentalization

Functional

Customer

Product

Geographic

Functional
Departmentalization
President
Computers

Manufacturing

Finance

Marketing

Functional
Departmentalization
Advertising Agency
Sales

Information
Systems

Accounting

Human
Resources

Art Department

Print
Advertising

Creative
Department

Radio
Advertising

Product
Departmentalization
President
Computers

Printers

Software

Manufacturing

Finance

Marketing

Product
Departmentalization
ABC
Aircraft
Engines

Consumer
Products

Consumer
Finance

Transportation
Systems

Medical
Systems

Specialty
Materials

Insurance

XYZ TV

Customer Departmentalization
ABC
Corporation

Cards

Travel

Financial
Services

Business
Services

Classic Cards

Air, Car, Hotel

Reservations

Advice &
Planning

Expense
Management
Solutions

Lifestyle
Cards

Vacation &
Specials

Banking

Small
Businesses

Reward Cards

Worldwide
Travel Offices

Brokerage

Financial
Services

Geographic
Departmentalization
ABC
Enterprises

Central
Punjab Group

Northern
Region

South Punjab
Group

Sindh
Region

Geographic
Departmentalization
ABC
Enterprises

Central
Asian Group

Western North
America Group

European
Group

Eastern
Australia Group

3. Establishing
Reporting
Relationships

Chain of Command

Chain of Command

The vertical line of

authority in an
organization.
Clarifies who reports to
whom.

Y1

Y2

Y3

Tall
versus
Flat
Organizations

Tall Versus Flat

Organizations
Tall Organization

President

Flat Organization

President

Tall Organizations
1. More expensive .

2. Communication can be
difficult because of the
number of channels
through which it must
pass.

Flat Organizations
1. Leeds to higher levels of

employee morale and

productivity.
2.More administrative

responsibility for managers.

4. Distributing
Authority

Delegation
The process by
which managers
assign a portion of
their total
workload to
others.

Reasons
for Delegation
1. To enable the
manager to get more
work done by utilizing
the skills and talents of
subordinates.

Reasons
for Delegation
2. To foster the development of
subordinates by having them
participate in decision making
and problem solving that
allows them to learn about
overall operations and improve
their managerial skills.

Degree
of
Centralization

Centralization of
Authority

Primary authority
is held by upper
management

Decentralization

Significant
authority is found
in lower levels of
the organization

5. Coordinating
Activities

Coordination
The process of linking
the activities of the
various departments
of the organization.

6. Differentiating
Between
Line & Staff
Positions

Line Positions
Positions in the direct
chain of command
that are responsible
for the achievement
of an organizations
goals/profits.

Staff Positions
Positions intended to
provide expertise,
advice, and support
to line positions.

Job Rotation,
Enlargement,

Job Rotation
Periodically
moving workers
from one
specialized job to
another.

Job Enlargement
Increasing the
number of tasks
performed
by a worker.

Organization
Design (OD)

OD Concepts
Organizations are
not designed and
then left intact.
Organizations are in
a continuous state
of change.

Influences on
Organization
Design
ORGANIZATION
DESIGN

Unit or Small-Batch
Technology
Produce
custom-made products
for customer .

Large Batch/Mass
Production
Uses assembly-line
production methods
to manufacture large
quantities of products.

Influences on
Organization Design
Environment
1. Stable environments that
remain constant over time.
2. Unstable environments
subject to uncertainty
and rapid change.

Mechanistic organizations
that are bureaucratic and
found most frequently in
stable environments.

Organic organizations
that are flexible and more
informal and usually found in
unstable and unpredictable
environments.

Mechanistic
Structure
Tasks
1.Specialized
2.Rigid

Hierarchical
1.Control
2.Authority
3.Communication

Organic Structure
Tasks
1.Interdependent
2.Redefined through
interaction

Network
1.Control
2.Authority
3.Communication

POLCA

LEADING

Leadership
is a process of
influencing others
to achieve
organisational goals.

Motivation
is a complex
interaction of
behaviours, needs,
rewards and cognitive
activities.

Nature of
Motivation
Ability X Motivation = Performance

Nature of
Motivation
Ability

Environ
Motix mental = Performance
X
vation conditions

What do We Need?
APPRECIATION

SUCCESS

SUCCESS

HARD WORK

HARD WORK

MOTIVATION

Types of
Motivators
1. Intrinsic
2. Extrinsic

Motivators

Intrinsic
A persons internal desire
to do something, due to
such things as interest,
challenge, and personal
satisfaction.

Motivators

Extrinsic
Motivation that comes
from outside the
person, such as pay,
bonuses, and other
tangible rewards.

Needs Theories
1. Hierarchy of Needs
Theory (Maslow)
2. Two-Factor Theory
(Herzberg)
3. ERG Theory (Aldefer)
4. Acquired Needs Theory
(McClelland)

Maslows Hierarchy of
Needs
General Examples

Organizational Examples
Self-

Achievement actualization
Status

Esteem

Challenging job
Job
Title

FriendshipSocial/Belongingness
Stability
Food

Safety/Security
Physiological

Friends
at work
Pension
Plan
Base
Salary

Maslows Hierarchy
of Needs
Weakness of Theory
1.Five levels of need are
not always present
2.Order is not always
the same

Two Factor Theory or Hygiene

theory
Hertzberg presented this theory by taking
the phenomenon of human hygiene.
Two factors work in the organization:

Hygiene factors

Motivators

Factors required to keep employees in the

organization are called hygiene factors.
Factors used to get high productivity from
workers are called motivators.

Two Factors
Hygiene Factors
Pay
Working Conditions
Supervisors
Company Policies
Fringe Benefits
These factors help Prevent Dissatisfaction.

Herzbergs
Theory
Motivating Factors
Intrinsic factors, such as
achievement, recognition,
, responsibility,
advancement and growth.
.

ERG Theory
1. Existence Needs
2. Related Needs
3. Growth Needs

McClellands
Theory of Needs
Need for Achievement
The drive to excel, to
achieve in relation to
a set of standards, to
strive to succeed.

McClellands
Theory of Needs
Need for Power
The need to make
others behave in a
way that they would
not have behaved
otherwise.

McClellands
Theory of Needs

Need for Affiliation

The desire for
friendly and close
interpersonal
relationships.

Needs
Classification
Maslows
ERG
Hierarchy

Higher- SelfActualization
Order
Needs Esteem

Growth
Relatedness

LowerOrder
Needs

Existence

Belongingness
Safety
Physiological

McClellands
Learned Needs
Power
Achievement
Affiliation

Cognitive or

Process Perspective

Theories
1. Equity Theory

2. Expectancy
Theory

Equity Theory
Theory arguing
that we prefer
situations of
Balance or,
Equity.

Equity Theory
Inputs
Employee contributions to the
organization

Outcomes
Rewards employees receive from the
organization

Outcome / input
A comparison between self and
others

Output/Input
Ratio
Outcomesself
Inputsself

Outcomesother
Inputsother

Inequity
When Your outcomes
differ from others

Under reward
If others outcomes greater
than yours
You experience anger or
frustration !

Over reward
If others outcomes is less
than yours
You may experience guilt !

Outcomesself Outcomesother

<

Inputsself

Inputsother

Outcomesself Outcomesother

>

Inputsself

Inputsother

Equity Theory
Implications for
Managers:
Communication is
essential to assess
Equity / Inequity
perceptions in
employees.

Expectancy
Theory
Theory arguing that we
consider three main issues;
(Effort-Performance,
Performance-Outcome,
and Valence)

EffortPerformance
Expectancy
Our assessment of
our efforts
that will lead to the
required level of
performance.

PerformanceOutcome
Expectancy
Our assessment of our
performance that will
lead to desired goals.

Instrumentality
Perceived relationship
between Performance
and Rewards /
Outcomes.

Valence
Our assessment of
anticipated value of
various outcomes or
rewards.

Expectancy Model
of Motivation
Environment

Effort

Ability

Performance

Outcome

Valence

Outcome

Valence

Outcome

Valence

Outcome

Valence

Outcome

Valence

Leadership

Leadership
Leadership
is a process of
influencing others
toward the
achievement of goals.
A heavily researched
topic

Leaders versus
Managers
MANAGERS

LEADERS

Status quo
Short-term
Builders
Problem solving

Change
Long-term
Architects
Inspiring & motivating

Nature of
Leadership
What leaders actually do!
Process behaviors include:
1. Influencing organizational
goals;
2. Motivating behavior
toward goals;

Nature of
Leadership
Leadership Property!
Set of characteristics
attributed to
individuals perceived
to be leaders.

How Leaders
influence others!
Sources of Leadership
Power:
1. Legitimate power
Power stemming from a
positions placement in
the managerial hierarchy.

How Leaders
influence others!
Sources of Leadership
Power:
2. Reward power
Power based on the
capacity to provide valued
rewards to others.

How Leaders
influence others!
Sources of Leadership
Power:
3. Coercive power
Power based on the ability
to punish others.

How leaders
influence others!
Sources of Leadership
Power:
4.Expert power
Power based on the
possession of expertise
valued by others.

How leaders
influence others!
Sources of Leadership
Power:
5. Information power
Power based on access
and control over the
distribution of information.

How leaders
influence others!
Sources of Leadership
Power:
6.Referent power
Power resulting from being
liked, admired or identified
with.

Leadership Schools
1. Trait Model
2. Behavioral Models
--Michigan Studies
--Ohio State Studies

Search for
Leadership Traits
Approach assumes that
some basic traits
(individual qualities)

differentiated leaders from

non-leaders.

Traits

Self Confident

Risk Taker

Motivated

Hard Working

Leadership
Schools
2. Behavioral Models
--Iowa Studies
--Michigan Studies
--Ohio State Studies

Leadership
Behaviour
Iowa Studies
( By Kurt Lewin)
Explored three
leadership styles
related to performance!

Leadership Styles
1. Autocratic
Leader dictated the work methods.

2. Democratic
Involved staff in decision making.

3. Laissez-Faire
Gave the group complete freedom.

Leadership
Behaviour
Michigan Studies
Employee centred
leaders superior to Job
centred leaders.

Leadership
Behaviour
Ohio State Studies
Suggested that the ideal
was for leaders to combine
job-centred-ness with an
ability to build mutual trust
with subordinates.

POLCA
Controlling

Control as a
Management
Function
Process of regulating
organisational activities
so that actual
performance conforms to
expected organisational
standards and goals.

Control as a
Management Function
Role of Controls:
1. Detecting irregularities
2. Identifying opportunities
3. Handling complex
situations

Control as a
Management
Function
Levels of Plan

Levels of Control

Strategic Planning

Strategic Control

Tactical Planning

Tactical Control

Operational Planning Operational Control

The Control Process

The Control
Process
Determine areas to control
Establish standards
Measure performance

Control
process
steps

Compare performance
Recognise positive
performance
Take corrective action
Adjust standards

Five Eras of
Management Control
1870-1900

Industrial Betterment

1900-1922

Scientific Management

1925-1955

Human Relations

1955-1980

Systems Rationalization

1980-Present

Organizational Culture and Quality

Managerial
Approaches
Bureaucratic control
Organic/Clan control
Market control
Financial
MIS

Managerial
Approaches
Bureaucratic Control
Managerial approach relying on
regulation through rules, policies,
supervision, budgets, schedules,
reward systems and other
administrative mechanisms aimed
at ensuring employees exhibit
appropriate behaviours and meet
performance standards.

Managerial
Approaches
Market Control
Managerial approach relying
on market mechanisms to
regulate prices for certain
clearly specified goods and
services needed by an
organisation.

Managerial
Approaches
Organic/Clan Control
Managerial approach relying on
values, beliefs, traditions,
corporate culture, shared norms
and informal relationships to
regulate employee behaviours and
facilitate reaching of
organisational goals.

Traditional
Financial Controls
The budgets provide
quantitative standards
against which to
measure and compare
resources
consumption.

Automation Based
Controls
Management Information Systems

MIS are used to provide

management with needed
information on a regular basis.
1.Organizes data in a meaningful way
2. Can access the information in a
reasonable amount of time

HRM Process
Environment
Human
Resource
Planning

Recruitment

Orientation

Training

Performance
Management

Career
Development

Selection

Identification and selection

of competent employees

Adapted and competent

employees with up-to-date
skills and knowledge

Compensation
and
Benefits

Environment

Competent employees who

are capable of sustaining high
performance over the long term

Thank You

&
Happy
Learning!