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ploma in Public Administration

y of Administrative Science and Policy Studies

Fundamentals of Management MGT162

INTRODUCTION

CHAPTER 1 TO MANAGEMENT
Lecture by :

MISS FARHANA BINTI YAAKUB

CHAPTER OUTCOMES

In the end of this chapter, students should be able to:

i. Explain the key concepts of management and its importance. ii.Discuss the skills in management and its roles in each level of management. iii.Describe the development of

CHAPTER OUTLINE
1.1 Definition of organization and management 1.2 Measuring managerial performance 1.3 Management process functions and activities 1.4 Managerial levels, skills and roles 1.5 Evolution of management

Definition of 1.1 ORGANIZATION


qA social unit in which two or more people interact to achieve a common or a set of goals (Stoner) q qThe structure of relationships that exists when two or more people mutually cooperates to pursue common objectives (Holt)

qThe process of administering and coordinating resources effectively and efficiently in an effort to achieve the goals of the organization (Goodman & Fandt) qProcess of achieving organizational goals by engaging in the 4 major functions of planning, organizing, leading and controlling (Bartol and Martin)

Definition of MANAGEMENT

Definition of MANAGEMENT
qManagement is a process of planning, organizing, leading and controlling by refers to the practices and policies you need to carry out the people or personnel aspects of your management job. Its include :
q

i. Conducting job analysis ii.Training and developing iii.Planning labor needs iv.Selecting job candidates v.Orienting and training new employees vi.Communicating (interview, counseling, disciplining etc.) vii.Appraising performance viii.Managing wages and salaries

The IMPORTANCE.
v Equip personnel with effort management theories and practices. v Better and effective manager - solve problems, making good decision and effective utilization of organization resources. v To understand many events, challenges and skills. v Help organization achieve higher level of performance : utilization of its human and material resources.

1.2

Performance EFFECTIVENESS & EFFICIENCY

Performance EFFECTIVENESS & EFFICIENCY

High

Low PoorResource Utilization Good

Goal Attainment

The PROCESS / 1.3 FUNCTION of


Management (Bartol & Martin) P L A N N IN G
O R G A N IZ IN G

C O N T R O L L IN G

L E A D IN G

REMEMBER!!!

POLC

The PROCESS/FUNCTIONS of Management

PLANNING
qEstablishing goals and standards qDeveloping rules and procedures qDeveloping plan and forecasting qPredicting or projecting some future occurrence

ORGANIZING
qGiving subordinate specific task qEstablishing departments qDelegating authority to subordinates qEstablishing channels of authority an communication qCoordinating the work subordinates

The PROCESS of Management


LEADING
qGetting others to get the job done qMaintaining morale qMotivating subordinates

CONTROLLING
qSetting standards such as sales, quotas, quality standards and production level qChecking to see how actual performance compares with these standards qTaking corrective action as needed

1.4 MANAGERIAL SCOPE


WHO IS MANAGER?
Individuals in an organization who direct the activities of others. (Robbins) A person that responsible for planning and directing the work of a group of individuals, monitoring their work, and taking corrective action when necessary.

MANAGERIAL SCOPE

LEVELS of 1.4.1 Management EXAMPLES


TOP MANAGEMENT MIDDLE MANAGEMENT FIRST LINE MANAGEMENT LABOR, STAFF, WORKERS ( Operational Employees) President , Vice President , Chief Executive Officer ( CEO )

EXAMPLES

Head Department , Head of Division , Operation Manager , Factory Manager Technical Supervisor , Moderator , Clerical Supervisor

LEVELS of Management
TOP LEVEL MANAGER
Established organizational goals and operating policies Decide how departments should interact and monitor the performance of middle management Good decision maker in uncertain situation

MIDDLE MANAGER

Supervised first line managers Responsible for finding the best way to use the resources to achieve organization goals

FIRST LINE MANAGEMENT


Responsible for the daily supervision of nonmanagerial employees

LEVELS of Management
(Examples with Organizational Chart)

TOP MANAGEMENT MIDDLE MANAGEMENT

FIRST LINE MANAGEMENT


LABOR , STAFF , WORKERS ( Non - managerial level )

USE OF MANAGEMENT AT DIFFERENT HIERARCHICAL LEVEL


PLANNING ORGANIZING LEADING CONTROLLING
1 st LINE MIDDLE TOP

1.4.2

Basic managerial

SKILLS/EXPERTISE
HUMAN
qAbility to work effectively with each others . qImportant to middle management . qInvolves motivating & disciplining subordinates , monitoring performance , providing feedback and improving communication .

TECHNICAL
qRefer to the knowledge and use of tools , techniques and procedures that specific to particular field . qImportant to first - line management . qE . g . Skills learned by Surgeon , Musicians , Accountants & Engineers qMental ability to analyze and diagnose complex situation . qInvolve planning , scheduling and related tasks . qLead to a good decision making . qImportant to top management .

CONCEPTUAL

POLITICAL

qAbility to enhance position , build power base and establish right connections . qGood political skills lead to better in getting resources to

MANAGEMENT SKILLS IN DIFFERENT HIERARCHICAL LEVEL


CONCEPTUAL HUMAN HUMAN HUMAN TECHNICAL TECHNICAL POLITICAL POLITICAL POLITICAL CONCEPTUAL CONCEPTUAL

TECHNICAL

1 st Line

Middle

Top

1.4.3

Managerial ROLES
(Mintzberg)

Interperso nal
Figurehead Leader Liaison

Informatio nal
Monitor Disseminator Spokesperson

Decisional
Entrepreneur Disturbance handler Resource allocator
Source: The Nature of Managerial Work (paperback) by H. Mintzberg. Table 2, pp. 9293. Reprinted by permission of Pearson Education Inc., Upper Saddle River, NJ.

Managerial ROLES
(Mintzberg)

qInterpersonal
1Figurehead
Perform symbolic duties or legal or social nature

2Leader
Builds relationships with subordinates and communicate with , motivates and coaches them

iii ) Liaison
Maintains networks of contacts outside work unit who provide help and information .

Managerial ROLES
(Mintzberg)

qInformational
1Monitor
Seeks internal and external information about issues that can effect organization .

2Disseminator
Transmit information either internal or external

iii ) Spokesperson
Transmit information about organization to outsider .

Managerial ROLES
qDecisional
(Mintzberg)
1Entrepreneur
Initiator , designer and encourage change and innovation

2 Disturbance handler
Takes corrective action when organization faces important unexpected difficulties .

iii ) Resource allocator


Distributes resources of all types including time , funding , equipment and human resources .

iv ) Negotiator
Representing organization at major

1.5

Evolution of management thoughts

The Pre-modern Era


Ancient Massive Construction Projects
Egyptian pyramids Great Wall of China

Michelangelo, the Manager.

MANAGEMENT APPROACHES
1. Classical approach a ) Scientific management b ) Administrative management c ) Bureaucratic organization Behavioral perspective a ) Mary Parker Follett b ) Elton Mayo c ) Douglas McGregor Modern approaches a ) System approach b ) Contingency approach

2.

3.

1.5.1 The Classical Approach

The term used to describe the hypotheses of the scientific management theorists and the general administrative theorists.

i) Fredrick W. Taylor
The Principles of Scientific Management (1911)

a) Scientific Management

a)

Advocated the use of the scientific method to define the one best way for a job to be done

Believed that increased efficiency could be achieved by selecting the right people for the job and training them to do it precisely in the one best way. To motivate workers, he favored incentive wage plans.

Taylors Four Principles of Management


1.

2 . Development of work standards 2.


Standard methods should be developed for performing for performing each job within the organization .

Selection of workers .

3 . Training of workers . 4.

Workers with the appropriate abilities should be selected for each job . Workers should be trained in the standard methods . Workers should be supported by having their work planned for them.

Support of workers .

Scientific Management

ii)

Frank and Lillian Gilbreth

Bricklaying efficiency improvements Time and motion studies (therbligs)

iii) Henry Gantt


Incentive compensation systems

Max Weber (Germany)


b)

b) Bureaucratic Management

Bureaucracy: Ideal type of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships.

This theory provides a blueprint of how an entire organization should operate.

Max Weber (1864-1920), a German social historian, is most closely associated with bureaucratic management.

Max Weber (Germany)


b)

Bureaucratic Management

1 . Division of Labor 2 . Authority Hierarchy 3 . Formal Selection 4 . Formal Rules and Regulations 5 . Impersonality 6 . Career Orientation

c) General Administrative

Developed general theories of what managers do and what constitutes good management practice

Henri Fayol (France)

Fourteen Principles of Management: Fundamental 1 . Division of Work or universal principles of 7 . Remuneration management practice 2 . Authority 8 . Centralization 3 . Discipline 9. Scalar Chain 4 . Unity of Command 10 . Order 5. Unity of 11 . Equity Direction 12 . Stability of Tenure 6. Subordination of of Personnel Individual 13 . Initiative Interests to the 14 . Esprit de Corps General Interest
a)

The Behavioral 1.5.2 Approach a ) Mary Parker Follett


b)

Introduce 4 Principles of Coordination to promote effective work group .


Coordination requires that people be in direct contact with each other. Coordination in essential during the initial stages of any endeavor. Coordination must address all factors and phases of any endeavor. Coordination is continuous / on going process.

The Behavioral Approach


b)

Hawthorne Studies A series of studies done during the


1920s and 1930s that provided new insights into group norms and behaviors
Hawthorne effect
Social norms or standards of the group are the key determinants of individual work behavior.

Elton Mayo

Changed the prevalent view of the time that people were no different than machines.

The Behavioral Approach


c ) Douglas McGregor ( Theory X and Y )

The Behavioral Approach


b)
FACTOR
Employees attitude towards Management work view of direction

Y)

Douglas McGregor ( Theory X and


THEORY X ASSUMPTIONS THEORY Y ASSUMPTIONS

Employees dislike work Employees enjoy work and will avoid it if at all and will actively seek Employees must be Employees are selfpossible. it. directed, coerced. motivated and selfControlled, or directed toward Employee view of Employees to getto avoid Employees seek threatened wish them to achieving direction responsibility; they responsibility; they put forth adequate organizational goals. prefer to be directed and wish to use their effort. Management Authoritarian style of told what to do and how Participatory style of creativity, imagination style management. management. in to do it. and ingenuity performing their jobs.

Modern Approaches a) The System Approach


1.5.3

Defines a system as a set of interrelated and interdependent parts arranged in a manner that produces a unified whole.

The System Approach

The Organizatio n and its environment

b) The Contingency Approachsimplistic systems and Replaces more


integrates much of management theory.

Four Contingency Variables

NEXT WEEK
Write up a simple notes for: Definition of planning Its Importance Types of Planning (Strategic and

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