Organization Management

Abraham Maslow (1908-1970)

-American psychologist -Father of Modern Management Psychology -Proposed that humans has 5 level of needs (physiological, safety, love, and belongingness, esteem needs and self-actualizatiom needs) -disputed that prior to progressing to the next level, the lower level need must be fully satisfied.

Chester Barnard (1886-1961)

-Book: "The Functions of Executives" -Revealed 2 significant contributions

Classical Theory 3 Main thoughts:

-Bureaucratic Management -Scientific Management -Administrative Management

History of Management Thoughts

-Classical Theory -The Neo-Classical Theory of Management -Management Science Theory

Main Characteristics of Management

-Continuous and never ending process -Getting things done through people -Result Oriented -Multidisciplinary in nature -A group and not an individual activity -Follows established principles or rules -Aided but not replaced by computers -Situational in nature -Need not be an ownership -Management is all pervasive -Management is intangible -Uses a professional approach in work -Dynamic in nature

Theory Y

-Employees are not inherently lazy. Given the chance, employees will do what is good for the organization. -To allow employees to work in the organization's interest, managers must create a working setting that provides opportunities for workers to exercise initiative and self-direction. -Managers should decentralize authority to employees and make sure employees have the resources necessary to achieve organizational goals.

Hawthorne Experiments Results:

-Employees are not motivated by only money like bonus schemes and incentives. -Communication helps the management and employees to have better mutual understanding that will help in problem-solving. -Social factors are accountable for deciding the level of output. -Workers behavior depends upon their mental levels and emotions. -Employees do not like order and command, preferred to maintain amicable relationship with their co-workers and want cooperative attitude from their superiors. -Teamwork and group psychology increases productivity.

Frederick Taylor (1856-1915)

-Father of scientific management -he is a mechanical engineer -began his career as a worker at Maldavale Street Company -he developed the Scientific Management Theory

Etton Mayo (1880-1948)

-Harvard psychologist -Famous contributor in the Hawthorne studies (1924-1932) at the Western Electric Company, Chicago

Douglas McGregor (1906-1964)

-Management professor at the MIT Sloan School of Management and President of Antioch College

6Ms

-Manpower -Money -Machines -Materials -Methods -Markets

The most ordinary management tools and methods are:

-Quality control -Forecasting -Capacity Planning -Productivity measurement and improvement -Linear programming -Scheduling systems -Work design and measurements -Project management -Cost-benefit anaylsis

Branches of Management Science Theory

-Quantitative Management -Operations Management -Total Quality Management

Theory X

-The average employee is lazy, dislikes work and will try do to as little as possible. -To ensure the employees work hard, managers should closely supervise the team. -Management should create strict work rules and implement and punishments to control employees.

Max Weber (1864-1920)

-a German sociologist -he proposed bureaucracy

Mary Parker Follet (1868-1933)

-a social worker by profession -believed that management is a continous process -if a problem has been given a solution, this solution could probably create another dilemma for the company. -Emphasis on inclusion of workers in decision making and the dynamism of management. -she was certain that people very close to the action possibly will formulate the finest decision on how to perform tasks in better ways.

The Neo-Classical Theory of Management

-also referred to as behavioral science approach -gives importance to human and social aspects of the worker and his relations in the organizations.

Henry Fayol

-french industrialist and a mining engineer. -developed the 5 functions of managers and 14 principles of management -real Father of Modern Management

Quantitative Management

-is a science that makes use of mathematical approaches like linear and nonlinear programming, modeling and queuing theory to assist managers in making accurate and better decisions on organizational situations like inventory management, sales revenue, capital investment and even profitability.

Operations Management

-it engages supervising the daily operations of the company in prduching goods and services. -it usually uses a quantitative approach to look for ways in increasing productivity, improve quality and reduce costly inventories.

Management Science Theory

-it highlights the use of precise statistical model and systematic mathematical techniques to help management solve problems on maximum use of resources to produce goods and services. -it helps the management in making systematic decisions in operations. However, it can only suggest the alternatives based on statistical data but not the final decision.

Specialization

-no single foreman could be an expert in all of the assignments supervised -each foreman has a specific task of specialization which made him the authority in that field

Robert Owen (1771-1858)

-noted supporter of behavioral science approach -according to him, human element, when given attention to can result to 50% return on investmeny (ROI) -increased profitability and reduced hardships for workers are the positive results of showing concern for workers. -first-line manager is in the great pose to be in-charge of production tasks coordination as coaches and facilitators. -maitaining good working relations with workers by managers and good communication are the keys to a harmonious workplace.

Classical Theory

-oldest and widely accepted new point in management. -emphasize that there is one best way to manage by following definite instructions

Gannt charts

-planning -progress -work project -project planning

Three types of Authority

-traditional -charismatic -rational-legal

Henry Gantt (1861-1919)

-well known for his Gannt chart -introduced quota systems and daily bonuses for workers who exceeded quotas

Scientific Management is based on the following principles:

1. Develop a science for each element of work by studying, analyzing, and determining the "one best way" to do the work. 2. Scientifically select, train, teach and develop workers to assist them achieve their full potential. 3. Cooperate with employees to guarantee execution of the scientific principles. 4. Divide the work and responsibility evenly among management and workers.

The 14 Principles of Management

1. Division of Work 2. Authority 3. Discipline 4. Unity of Command 5. Unity of Direction 6. Subordination of individual interest to common interest 7. Renumeration 8. Centralization 9. Scalar Chain 10. Order 11. Equity 12. Stability of Tenure Personnel 13. Espirit de corps 14. Initiative

3 Ways of Dealing with Conflict According to Follet:

1. Domination 2. Compromise 3. Integrative Conflict Resolution

5 Functions of Management

1. Planning 2. Organizing 3. Staffing 4. Leading 5. Controlling

7 Attributes of Bureaucracy

1. Rules 2. Impersonality 3. Division of labor 4. Heirarchical structure 5. Authority Structure 6. Commitement 7. Rationality

2 Contributions of Cherster Barnard

1. The organization as social systems need cooperation and communication among workers to be effective and achieve goals and objectives. 2. Acceptance theory of authority- posited that a worker has free will to disobey the orders of his manager.

Lillian Gilbreth (1878-1972)

1st woman to receive Ph.D in industrial Psychology become noted for championing the workers via standard day schedule rest breaks and normal lunch break are now being executed in today's modern workplaces.

Harold Koontz

Definition of Management: "Management is the art of getting things done through and with people in formally organized groups." ("The Management Theory Jungle")

Peter Drucker

Definition of Management: "A multi-purpose organ that manages business and manages managers and manages workers and work." ("The Principles of Management")

Henry Fayol

Definition of Management: "To manage is to forecast and to plan, to organize, to command, to coordinate and to control." ("Industrial and General Administration")

Effectiveness

Doing the right things

A good leader inspires employees.

Effective leadership= comitted organizational members.

Need not be an ownership

In small organizations, management and ownership are one and identical. However, in large organizations, the managers are well qualified professionals who are employed from outside. Owners are the stockholders.

Management is intangible

It cannot be seen and touched. However, it can be sensed and understood by its results. It's success or failure can be judged only by its results.

A group and not an individual activity

It uses employees' efforts to achieve group objectives. It tries to meet the needs and wants of a group of consumers.

Multidisciplinary in nature

Management deals with people of different emotions, feelings and aspirations. It uses knowledge from many different subjects such as Economics, IT, Psychology, Sociology and other related fields to understand the diverse workforce.

Follows established principles or rules

Management follows recognized principles like division of work, discipline, unity of command and other relevant rules and principles. These principles help out to avoid and resolve troubles in the organization.

Result oriented

Management gives importance to the best "outcomes" of its activities.

Continuous and never ending process

Management is considered as a process, because a manager plans, organizes, directs and controls all activities of the organization continuously.

Management is all pervasive

Management is necessary for running business, educational, charitable, and religious institutions. Management is a must for all activities.

Situational in nature

Managers create plans, policies and decisions based on situations.

Uses a professional approach in work

Managers makes use of a professional tactic for getting the work done from their subordinates.

Dynamic in nature

Nothing is permanent in business. Hence, management must be creative and innovative.

Staffing

Righy people + Right job = realization of company objectives

Highlight of Scientific Management

SPECIALIZATION

According to Taylor:

Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way.

Administrative Management

The manager and his functions is the heart of administrative managemet.

Both an art and science

The practice of management is an art, because it requires creativity and ingenuity in the practical application of skills and techniques to successfully meet advantageous results. It is also a science because it uses facts, and truths in its systematic operation.

Made 2 sets of assumptions regarding work attitudes and behaviors called

Theory X and Theory Y

Aided but not replaced by computers

Today, all managers employ computer to make accurate decisions. However, computers can merely help management but not replace it. This is because management takes the final responsibility.

Initiative

a manager must encourage employees under him to act on their own in support of the organization objectives.

Organization

a social unit of people that is structured and managed to meet a need or to pursue collective goals.

Unity of Command

a subordinate should receive order from only one boss or superior

Heirarchical structure

categorize jobs based on the level of authority. Authority or the right to decide increases at each level to the top of heirarchy.

Unity of Direction

connotes that all the works of an organization must perform jointly to achieve a common objective under one plan and head.

Equity

creates loyalty and devotion among the employees through fear discipline and order

Scientific Management

diverse work methods were studied as tested to discover the best, most efficient method to finish a job.

Efficiency

doing things right to avoid wastes of input resources like labor, raw materials and component parts

Placework system

economically rational way to pay an individual for the peices of work produced.

Bureaucratic Management

focuses on the rules, dividing organizations into heirarchies an evident division of labor and through producers to guarantee efficiency and effectiveness.

Division of Work

indicates dividing each job into small and specialized tasks and asigns responsibilities to a specialist of it.

Leading

involves motivating, communication, guiding and encouraging people in the organization for the achievement of its goals and objectives in a timely manner. It requires the leader to coach, assist, problem soving in employees.

Organizational Structure

is a formal system visualizing the task and reporting connections that harmonize and inspier members to work together for goal and objective achievement.

Total Quality Management

is a philosophy of continous quality improvement of inputs, process and outputs.

Planning

is a significant function in the performance of an other functions. The planning function of management directs all the preparation that allows the organization to run effortslessly.

Domination

is a victory of one part over another

Rationality

is attaining the organizational goals the most efficient way.

Rational-legal Authority

is based on the uniform application or established laws and rules.

Integrative Conflict Resolution

is both parties considering their preferences and working together to find the best option that meets the needs of both groups.

Compromise

is both sides giving up something in order to have peace

Traditional Authority

is founded on costum, ancestry, gender, birth or order and the like

Discipline

is making expectations understandable at every level in every organization

Division of labor

is the clear splitting and defining of work based on specialization and personal experience

Bureaucracy

is the exercise of control on the basis of knowledge.

Controlling

is the process of continuously checking results against predetermined goals and objectives and takes any curative actions needed to make certain

Organizing

is the process of making certain that required human and physical resources are on hand to execute a plan and attain organizational goals and objectives

Management

is the process of utilizing the resources of the organization in effective and efficient manner to attain targeted objectives through planning, organizing, staffing, leading, and controlling.

Controlling Function of Management

is valuable for guaranteeing all other functions of theorganization are in operating effectively and in operating effectively and efficiently

Charismatic Authority

is visible in a leader whose mission and vision in life encourage others. The apparent unusual characteristics of an individual are the basis of this authority.

Impersonality

its provide equity and fairness for all employees by not consisting to subjective personal or emotional reflections during evaluation procedure.

Commitment

life long job is the visualization of employee and the organization as being loyal to each other over the span of the working life to the employee.

Logical scientific

means of using financial and human resources in bureaucracy through goal directed activities guarantees success of the organization.

Money

motivating factor for employees to work their capacity

The Gilbreths

performed in the rehabilitation and employment of 13 million wounded and disabled after World War I.

Staffing function includes:

recruitment, training and development, performance, appraisals, promotions and transfer.

Authority structure

refers to "who has the right to decide". The amount of authority amplifies with each level highers a person or a organization is in.

Frank Gilbreth (1868-1924)

revolutionized the use of motion pictures to study workers motions

Rules

serves as a norm of guiding or directing action or conduct of employees in the workplace and provide the discipline which the organization requires to attain its goals and objectives.

Authority

signifies the right to give order and power while responsibility means to realize objective.

Getting things done through people

the activites of the firm are being done by the workers not just the manager himself.

Staffing

the human resource management of staffing function of management directs every part recruitment and personnel requirements of the organization. It ensures the availability of essential human resource of the company.

Gantt Chart

visual representation of the progress being carried out for each stage of work in a project

Subordination of individual interest to common interest

workers prioritizes the common interest of the organization rather than himself as an individual.