MANAGEMENT & ORGANIZATION

1. Introduction

Assoc. Prof. Dr. Mehmet EREK

Istanbul Technical University, Faculty of Management,

Management Engineering Department,
Division of Management and Organization,
Macka, TR-34367, Istanbul, Turkey
Tel: 0212 293 13 00 / 2004 - 2006
Fax: 0212 240 72 60
ercekme@itu.edu.tr
 Objectives of this course?

By the end of this course

you will understand work relations and
fundamental management skills through
discussing organizational problems.
 Objectives of this course?
- Course Outline-

Introduction
Basic Concepts
(Management, Manager, Organization,
Behaviour, Environment, Ethics)
Evolution of Management Thought
Management Functions
(Planning and Decision Making / Organizing
/Leading (Influencing) / Control)
 Four Dimensions of Work Relations
Employees (Personal -Fulfilment of needs
expectation from objectives)
organization
SATISFACTION

Employees (Personal -Personality

offerings to characteristics) -Attitudes
organization -Skills
-Knowledge...

Organizations (Organizational -To survive

expectation from objectives) -To grow
employee -To make profit
PERFORMANC
E
Organizations (Organizational -Job
contribution to characteristics) -Social environment
employee -Rewards
-Organizational setting
Four Dimensions of Work Relations
Comparing Satisfaction and Performance
Level

High
Satisfactio
n

(2) (4
Low ) High
Performan
Performanc
ce
(1 (3) e
)

Low
Satisfactio
n
 BASIC CONCEPTS

Organization
Management
Manager
Behavior
 BASIC CONCEPTS
- Organization -

Two different meanings:

Structure; skeletons; grups of relations planned

before.

Activities or process of designing the structure.

Goal oriented and deliberately structured social

enitity
 An Open System
and Its Subsystems

Environment

Raw Materials Transformation

People
Information Products
resources Input Output and
Financial Services
resources
Process

Production,
Boundary Boundary
Subsystems Spanning
Maintenance,
Spanning
Adaptation,
Management
 BASIC CONCEPTS

Organization
Management
Manager
Behavior
 BASIC CONCEPTS
- Management -
What is management?

Different answers.
Different definitions.

- Management as an art
- Management as a science
- Management as a process
 BASIC CONCEPTS
- Management -
What is management?

Management is the attaintment of

organizational goals in an effective and
efficient manner through four functions:
- Planning,
- Organizing,
- leading (influencing), and
- controlling organizational resources.
Daft
 BASIC CONCEPTS
- Management -
The Process of Management

Planning

Select goals and

ways to attain
them
Performance
Resources
Human Attain goals
Controlling Organizing Products
Financial
Raw Materials Monitor activities and Services
Assign responsibility
make corrections
Technological for task Efficiency
accomplishment
Information Effectiveness

Leading
Use influence to
motivate employees
 BASIC CONCEPTS
- Management -
Functions of Management

* Planning Function

Defines goals for future organizational

performance.
Decides tasks and use of resources needed.
 BASIC CONCEPTS
- Management -
Functions of Management

* Organizing Function

Follows planning
Reflects how organization tries to accomplish plan
Involves assignment of
tasks into departments
authority and allocation of resources across
organization.

(determining what tasks to be done, who is

to do them, how the tasks are to be grouped,
who reports to whom, and where decisions are to be
made).
 BASIC CONCEPTS
- Management -
Functions of Management

* Leading Function

The use of influence to motivate employees to

achieve organizational goals.

* Creating a shared culture and values,

* communicating goals to employees throughout
the employees,
* and infusing employees with the desire to perform
at a high level
 BASIC CONCEPTS
- Management -
Functions of Management

* Controlling Function

Monitoring employees activities

Determining whether the organization is on target
toward its goals
Making corrections as necessary
 BASIC CONCEPTS
- Management -
Functions of Management

* Controlling Function

New Trends
Empowerment and trust of employees = training
employees to monitor and correct themselves

New information technology provides control without

strict top-down constraints

Lack of Control Information can lead to

Organizational Failure
 BASIC CONCEPTS
- Management -
Process of Management

Organizational Performance

Organization - social entity that is goal directed and

deliberately structured

Effectiveness goal attaintment- degree to which

organization achieves a stated goal (Doing the rights things)

Efficiency relationship between input and outputs; seeks

to minimise resource costs (Doing things right).

Performance organizations ability to attain its goals by

using resources in an efficient and effective manner
 BASIC CONCEPTS
- Management
Organizational Performance
Some of effectiveness criteria
Accidents
Efficiency Absenteism
Quality Job satisfaction
Growth Morale
Turnover Conflict / cohesion
Motivation Managerial interpersonal
Control skills
Flexibility / adaptation Readiness
Participation and shared Utilization of environment
influence Stability
Productivity Value of human resources
Profit Training and development
Planning and goal setting emphasis
---
 BASIC CONCEPTS
- Management
Efficiency and Effectiveness
Major goal or purpose

Is it tied to primary beneficiary needs?

Yes No

Was it accomplished? Ineffectiveness

Yes No Was inappropriate goal

accomplished at least
cost?

Effective Ineffective Yes No

Was isaccomplished at least cost? Efficiency

Inefficiency

Yes No

Efficiency Inefficiency
 BASIC CONCEPTS

Organization
Management
Manager
Behavior
 BASIC CONCEPTS
- Manager -

Organizational members can be divided into 2 categories:

- Non-managers / Personnell / Operatives

* people who work directly on a job or task and who
have no responsibility for overseening work of others.

- Managers
* Individuals in an organization who direct the activities
of others.

*** Related concepts

(Leader, mentor, facilitator, enabler, sponsor...)
 BASIC CONCEPTS
- Manager -

- Managers

** managers often are referred to as

decision makers
 BASIC CONCEPTS
- Manager -

Managers Job
Complex
Multidimensional
Range of skills

Why?
Managers scout for problems,
make decisions for solving them,
and monitor the consequences to see whether
additional decisions are required.

Decision: A choice made from available alternatives.

 BASIC CONCEPTS
- Manager -
Examples of decisions in the management functions

Planning
What are the organizations long-term objectives?
What strategies will best achieve these objectives?
How difficult should individuals goals be? ...
Organizing
How many subordinates should I have report directly to me?
How should jobs be designed?
When should the organization implement a different structure? ...
Leading
How do I handle employees who appear to be low in motivation?
How will a specific change affect worker productivity?
When is the right time to stimulate conflict? ...
Controlling
What activities in the organization need to be controlled?
How should these activities be controlled?
What type of management information system should be organization have? ...
 BASIC CONCEPTS
- Manager -
Managers Skills ?
(Management Skills)
(Three Dimensions of Management)

Technical Skills understanding of and proficiency in

the performance of specific tasks

Conceptual Skills cognitive ability to see the

organization as a whole and the relationships among
its parts (ability to think strategically)

Human Skills ability to work with and through other

people and to work effectively as a group member
 BASIC CONCEPTS
- Manager -

Managers Skills ?
 BASIC CONCEPTS
- Manager -

Types of Managers?

Vertical Differences
Horizontal Differences
 BASIC CONCEPTS
- Manager -
Types of Managers- Vertical
 BASIC CONCEPTS
- Manager -
Types of Managers- Horizontal

Functional Managers
Responsible for a department that performs a
single functional task and
Has employees with similar training and skills
(Advertising; Sales; Finance; Human Resources;
Manufacturing; Accounting...)

General Managers
Responsible for several departments that
perform different functions
 BASIC CONCEPTS
- Manager -
Managers Role
Category Role
Information Monitor-seek and receive info, scan periodicals, maintain personal contacts
al
Disseminator-Forward info to other organizational members, send memos
and reports, make phone calls

Spokesperson-Transmit info to outsiders through speeches, reports and

memos

Interperson Figurehead- Performs ceremonial and symbolic duties such as greeting

al visitors, signing legal documents

Leader- Direct motivate subordinates, train communicate and counsel

subordinates

Liaison- Maintain info links with both outside and inside, use mail, meetings
etc.

Decisional Entrepreneur- Initiate improvement projects, identify new ideas, delegate

idea responsibility to others

Disturbance handler- Take corrective action during disputes and crises,

resolve conflicts
 BASIC CONCEPTS

Organization
Management
Manager
Behaviour
 BASIC CONCEPTS
- Behaviour -

Behaviour
- The actions of people
- The nature of human interaction and conduct
within them

Organizational behaviour
The study of actions of people at work

* The metaphor of organizational iceberg

 BASIC CONCEPTS
- Behaviour -
The metaphor of organizational iceberg
Visible aspects
- Strategies, Objectives
- Policies and procedures
- Structure
- Technology
- Formal authority
- Chains of command
Quality, Cost, Time
Hidden aspects
- Attitudes
- Perceptions
- Group norms
- Informal interactions
- Interpersonal and intergroup conflicts...
 BASIC CONCEPTS
- Behaviour -

Managers success
depends on

- knowing himself / herself

- knowing organizational environment

Managerial Maze
 BASIC CONCEPTS
- Behaviour -

Dimensions of Managerial Maze

- Economical, technical and social

characteristics related to work
- Superiors
- Coworkers / associates
- Subordinates
- Personality of manager
BASIC CONCEPTS - The New Era