M A N AG E M E N T F U N DA M E N TA L S

INTRODUCTION TO MANAGEMENT

G R A D U AT E D I P L O M A I N M A N A G E M E N T
 MANAGING IN
TURBULENT TIMES

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 INTRODUCTION TO ORGANISATIONS
• A group of people working together to over a period of time to achieve a common goal or an
objective.

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 CLASSIFICATION OF ORGANISATIONS
Organisations

Objective Size Ownership

Profit Large Private

Non Profit Small Public

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 WHAT IS MANAGEMENT?
• Manager : Someone who get things done with the aid
of people and other resources.

• Management : Attainment of organisational goals in

an effective and efficient manner through planning,
organising, leading and controlling organisational
resources.

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 WHAT MANAGERS DO?

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 MANAGEMENT PROCESS

Planning
Resources Performance
•Human •Attain goals
•Financial •Products
•Raw Materials Controlling Organising •Services
•Technology •Efficiency
•Information •Effectiveness

Leading

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 MANAGEMENT FUNCTIONS
• Planning : Planning means identifying goals for future, organisational performance and deciding

on the tasks and use of resources needed to attain them.

• Organising : Organising involves assigning tasks, grouping tasks in to departments, delegating

authority and allocating resources across the organisation.

• Leading : Use influence to motivate employees to achieve organisational goals.

• Controlling : Monitoring employees’ activities, determining whether the organisation is on target

towards its goal, and making corrections necessary.

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 MANAGEMENT TYPES
• Vertical

– Top management are responsible for the entire organisation : President, chairperson, executive
directory, chief executive officer (CEO) etc.

– Middle managers are responsible for business units : Departmental head, Divisional head, Manager of
quality control etc.

– First line managers are responsible for production of goods and services : Supervisor, line manager,
section chief, office manager etc.

• Horizontal

– Functional managers are responsible for departments that perform specific tasks : advertising, sales,
finance, human resources etc.

– General managers are responsible for several departments

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 LEVELS OF MANAGEMENT

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 MANAGERIAL SKILLS

• Three categories of skills: Conceptual skills, Human skills and Technical skills.

• The degree of these skills may vary.

• The application of management skills change as manager moves up the hierarchy.

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 MANAGERIAL SKILLS CONTD.
• Technical skills: Ability to use tools, techniques and

specialised knowledge.

• Human relations skills (Inter personal skills): Ability to work

effectively with people.

• Conceptual skills: Ability to see the organisation as a whole

and solve problems to benefit the total system.

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 RELATIONSHIP OF SKILLS TO MANAGEMENT

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 WHEN SKILLS FAIL
• Unethical behaviour

• During turbulent times, managers must apply their skills

• Common management failures:

– Not listening to customers

– Misinterpreting signals from marketplace

– Not building teams

– Inability to execute strategies

– Failure to comprehend and adapt to change

– Poor communication and interpersonal skills

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 INNOVATIVE MANAGEMENT FOR THE NEW WORKPLACE
• Rapid environmental shifts:

– Technology

– Globalisation

– Shifting social values

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 MANAGERIAL ROLES
• A role is a set of expectations for a managers’ behaviour

Informational Interpersonal Decisional

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 MANAGERIAL ROLES CONTD.
Informational
• Monitor
• Disseminator
• Spokesperson

Interpersonal
• Figurehead
• Leader
• Liaison

Decisional
• Entrepreneur
• Disturbance handler
• Resource allocator
• Negotiator

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 MANAGERIAL ROLES CONTD.
Role Activity Examples

Monitor Seek and acquire work related information Scan/read trade press, periodicals,
reports; attend seminars and training;
maintain professional contacts

Disseminator Communicate/ disseminate information to others within Send memos and reports; informs
the organization staff and subordinates of decisions

Spokesperson Communicate/transmit information to others outside the Pass on memos, reports and
organization informational materials; participate in
conferences/ meetings

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 MANAGERIAL ROLES CONTD.
Role Activity Examples

Figurehead Perform social and legal duties, act as symbolic leader Greet visitors, sign legal documents,
attend ribbon cutting ceremonies,
host receptions etc.

Leader Direct and motivate subordinates, select and train Include almost all interactions with
employees subordinates

Liaison Establish and maintain contacts within and outside the Business correspondence,
organization participation in meetings with
representatives of other divisions or
organizations.

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 MANAGERIAL ROLES CONTD.
Role Activity Examples

Entrepreneur Identify new ideas and initiate improvement projects Implement innovations; plan for the
future

Disturbance Deals with disputes or problems and takes Settle conflicts between subordinates;
handler corrective action Choose strategic alternatives; Overcome
crisis situations

Resource allocator Decide where to apply resources Draft and approve of plans, schedules,
budgets; set priorities

Negotiator Defends business interests Participates in and directs negotiations

within team, department, and
organisation

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 THE EVOLUTION OF
MANAGEMENT

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 During 1776, using the pin

industry

Discussed about the

economic advantage that

could be generated through

division of labour or job

specialization.

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 Late 18th century and beginning
of 19th century Industrial
Revolution

Human Capital was substituted

by machinery

Large organizations required

formal theories to run the
organizations

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 CLASSICAL PERSPECTIVE

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 INTRODUCTION TO CLASSICAL
PERSPECTIVE

Early on the 20th Century

Focusses on making the organisation efficient as possible

Scientific Management : Frederick Winslow Taylor &

Frank and Lillian Gilbreth

Administrative Principles : Henri Fayol & Max Weber

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 SCIENTIFIC MANAGEMENT: TAYLOR 1856-1915

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 SCIENTIFIC MANAGEMENT CONTD.
• Developed during late 1800s by Frederick
Winslow Taylor.
• Frederick Taylor is known as the father of the
scientific management.
• Proposed that employees could be retooled
like machineries to enhance productivity.

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 SCIENTIFIC MANAGEMENT CONTD.

General approach
Criticisms Contributions
• Developed standard method for
• Did not appreciate the social • Demonstrate the importance of performing each job.
• Selected workers with
context of work and higher needs compensation for performance. appropriate abilities for each job
of workers. • Initiated the careful study of • Trained workers in standard
method
• Did not acknowledge variance tasks and job. • Supported workers by planning
work and eliminating
among individuals. • Demonstrated the importance of interruptions.
• Tended to regard workers as personnel selection and training. • Provided wage incentives to
workers for increased output
uninformed and ignored their
ideas and suggestions.

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 GENERAL ADMINISTRATIVE THEORY
• Focused more on what managers do and what constitute good management practice.
• Focused on all levels of managers whereas Taylor focused only on first line managers.

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 ADMINISTRATIVE PRINCIPLES
• Contributor : Henry Fayol
• Focus :
– Management is a common endeavour to all businesses.
– Fundamental rules of management that could be applied to all organisational situations.

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 14 ADMINISTRATIVE PRINCIPLES
• Division of work : Specialization increases output by making employees more efficient.

• Authority : Managers must be able to give orders, and authority gives them the right.

• Discipline : Employees must obey and respect the rules that govern the organisation.

• Unity of command : Every employee should receive orders from only one superior.

• Unity of direction : The organisation should have a single plan of action to guide managers and workers.

• Subordination of individual interest to the general interest : The interest of any one employee or group of
employees should not take precedence over the interest of the organization as a whole.

• Remuneration : Workers must be paid a fair wage for their service.

• Centralization : This term refers to the degree to which subordinates are involved in decision making.

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14 ADMINISTRATIVE PRINCIPLES CONTD.

• Scalar chain : The line of authority from top management to the lowest ranks is the scalar chain.

• Order : People and materials should be in the right place at the right time.

• Equity : Managers should be kind and fair to their subordinates

• Stability of tenure of personnel : Management should provide orderly personnel planning and
ensure that replacements are available to fill vacancies.

• Initiative : Employees are allowed to originate and carry out plans will exert high levels of effort.

• Esprit de corps : Promoting team spirit will build harmony and unity within the organization.

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 BUREAUCRATIC ORGANISATIONS
• Introduced by Max Weber (1864-1920) : German sociologist

• He developed a theory of authority structures and relations based

on an ideal type of organisation he called a bureaucracy – a form of
organisation characterized by division of labour, a clearly defined
hierarchy, detailed rules and regulations and impersonal
relationships.

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 BUREAUCRATIC ORGANISATIONS
Division of labor
with Clear definitions of
authority and responsibility

Personnel are selected

and promoted based Positions organized
on technical in a hierarchy of authority
qualifications

Administrative acts Managers subject to

Rules and procedures
and decisions recorded
that will ensure reliable
in writing
predictable behavior
Management separate
from the ownership
of the organization

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 HUMANISTIC PERSPECTIVE/
BEHAVIOURAL APPROACH

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 HUMANISTIC PERSPECTIVE: EARLY ADVOCATES

• Mary Parker Follett and Chester Barnard

• Understand human behaviors, needs, and attitudes in the workplace

• Importance of people rather than engineering techniques: contrast to scientific

management

• Empowerment: facilitating instead of controlling

• Recognition of the informal organisation

• Introduced acceptance theory of authority

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 HUMANISTIC PERSPECTIVE: HUMAN RELATIONS
MOVEMENT
• Effective work comes from within the
Elton Mayo conducted the
experiment in Western Electric employee
Hawthorne, Illinois plant in 1982
• Human relations is the key variable in
increasing performance

Based on Hawthorne Studies: • Employees performed better when

Money does not cause increased managers treated them positively
output.
Human relations increased • Combine motivation with job design
output

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 HUMANISTIC PERSPECTIVE: BEHAVIOURAL
SCIENCE APPROACH
• Use scientific methods which combines sociology, psychology, anthropology, economics
and other social sciences disciplines to develop theories on human behavior in an
organisation.

• Organisational Development – field that uses behavioral sciences to improve the

organisation

• Other strategies based on behavioral science:

– Matrix Organisations

– Self-Managed Teams

– Corporate Culture

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 QUANTITATIVE PERSPECTIVE

Standing in a long, snacking line with impatient children isn’t a parent’s idea of a good time. The Walt Disney Company
used quantitative techniques to develop FASTPASS, a sophisticated computerized system that spares parents the ordeal
for the most popular rides. Disney theme parks have machines that issue coupons with a return time that’s been
calculated based on the number of people standing in the actual line, the number who have already obtained passes, and
each rider’s capacity.

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 QUANTITATIVE PERSPECTIVE
• Emerged after WW II

• Applied mathematics, statistics and other quantitative techniques to managerial problems.

• Subsets of the quantitative approach

– Operations research – mathematical modelling

– Operations management – specialised in physical production of goods and services

– Information technology –reflected in management information systems

– Emerged systems such as linear programming, quality management, capital asset

pricing model, work scheduling, EOQ etc.

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 RECENT TRENDS
Systems thinking

Contingency view

Total quality management

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 01. SYSTEMS THINKING
• A system is a set of interrelated parts that function as a whole to achieve a common purpose.

• Closed systems : Not influenced by and do not interact with the environment.

• Open systems : Influenced by and do interact with their environment.

• Organisations are made up of interdependent factors such as individual goals, attitude, motives,
formal structures, goals and authority.

• Systems thinking ensures:

– Managers’ coordinate work activities in the various parts of the organisation.

– That decisions and actions in one organisational area will affect other areas

– That organisations are not self contained and they will rely on the environment for essential
inputs and as outlets to absorb their outputs.

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 02. CONTINGENCY VIEW
• Successful resolution of organizational problems is thought to depend on managers’
identification of key variations in the situation at hand

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 03.TOTAL QUALITY MANAGEMENT
• Father of quality is known as Edwards Deming

• Focuses on delivering better quality to the customers through high quality

values through every activity within a company.

• Elements of quality management;

– Focus on the customer

– Continuous improvement

– Process focussed

– Accurate measurement

– Empowerment of employees

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 INNOVATIVE MANAGEMENT: THINKING FOR A
CHANGING WORLD
• Management ideas trace their roots to historical

perspectives

• New ideas continue to emerge to meet the changing

needs and difficult times

• The shelf life of trends is getting shorter and new ideas

peak in fewer than three years

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 MANAGING THE TECHNOLOGY DRIVEN
WORKPLACE
• Customer Relationship Management – technology used to build relationships with customers

• Outsourcing – contracting functions or activities to other organisations to cut costs

• Supply Chain Management – managing supplier and purchaser relationships to get goods to

consumers

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 THANK YOU!
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