Management
Management
Origin of the word Management The verb manage comes from the Italian maneggiare (to handle especially tools), which in turn derives from the Latin manus (hand). The French word mesnagement (later mnagement) influenced the development in meaning of the English word management in the 17th and 18th centuries. The term management may be recently defined, but it existed at a time when men started learning the art of organizing, strategizing (during wars) and/or simply planning. At the core of it, management was quintessentially considered as an art of managing men and hence the term manage-men- t Management is usually understood to be the science and art of getting things done through others. Management in all business and organizational activities is the action of getting people together to complete objectives and goals using available resources effectively and effectively. It comprises planning, organizing, leading, and controlling a business or effort with regards to achieving an objective.
In Management P.O.L.C.means:Planning: It is the function of management that involves setting objectives and determining a course of action for achieving those objectives. Planning requires that managers be aware of environmental conditions facing their organization and forecast future conditions. Organizing: Is the function of management that involves developing an organizational structure and allocating human resources to ensure the accomplishment of objectives. The structure of the organization is the framework within which effort is coordinated. Leading: Involves the social and informal sources of influence that you use to inspire action taken by others. If managers are effective leaders, their subordinates will be enthusiastic about exerting effort to attain organizational objectives Controlling:Involves ensuring that performance does not deviate from standards. Controlling consists of three steps, which include (1) establishing performance standards, (2) comparing actual performance against standards, and (3) taking corrective action when necessary. Performance standards are often stated in monetary terms such as revenue, costs, or profits but may also be stated in other terms, such as units produced, number of defective products,
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1.
THE PRE-CLASSICAL
Sun Tzu: (600 B.C.) Was an ancient Chinese military general, who wrote a military strategy book The art of War. His main objectives when engaging in war, is to evaluate your environment, identify your strengths and weaknesses, as well as those of your opponent and develop a full proof strategy, base on these assessments.
Niccolo Machiavelli: (1513) Were an Italian historian, philosopher and writer. He is one of the main founders of modern political science. He wrote the book titled The Prince in 1513. His view is the tendency to direct much of ones behavior towards the acquisition of power and the manipulation of the other people for personal gain
Adam Smith's: The Wealth of Nations (1776) Smith described how changes in processes could boost productivity in the manufacture of pins. While individuals could produce 200 pins per day, Smith analyzed the steps involved in manufacture and, with 10 specialists, enabled production of 48,000 pins per day.
2.
CLASSICAL
Scientific management Frederick Winslow Taylor (1856-1915). Father of scientific management, notice soldering going on. Scientific management determines workers could be retooled like machines, their physical and mental gears recalibrated for better productivity. It suggest that,
Study each part of the work and develop the best method to do it. Carefully select workers, train them to perform the work
Co-operate with the workers to ensure they use the best method.
Divide the work and responsibilities.
Bureaucratic management: Max Weber (1864-1920). A German sociologist introduces this concept. Many European organizations were managed on a personal,
family like basis, therefore, running an organization on the basis of who one knows rather than what one knows. This interferes with the effectiveness of managing organizations Bureaucratic perspective emphasized management on an impersonal, rational basis through such elements as clearly defined authority and responsibility, formal record keeping and separation of management and ownership.
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Weber believes all bureaucracies have certain characteristics: Division of labor, with clear definitions of authority and responsibility Position organized in a hierarchy of authority Personal selected and promoted based on technical qualification
Administrative Management: Henri Fayol (1841-1925) Focus on the total organization. He was a French mining engineer who worked his way up to become head of a major mining group. In his work General and Industrial Management he discusses 14 principles of management .e.g. Division of work: Managerial work and technical work are amenable to specialization to produce more and better work with the same amount of effort Unity of command: Each subordinate receives orders from one and only one superior Unity of direction: Similar activities in an organization should be grouped together under one manager.
3.
BEHAVIOURAL VIEWPOINT:
A perspective on management that emphasizes the importance of attempting to understand the various factors that affect human behavior in organizations.
Mary Parker Follett ( 1868- 1933) Educated in political science she was a social worker who became interested in employment and workplace issues.
Hawthorne studies: A group of studies conducted at the Hawthorne plant of the Western Electric Company during the late 1920s and early 1930s whose results ultimately led to the human relations view of management. Hawthorne effect. The possibility that individuals singled out for a study may improve their performance simply because of the added attention they receive from the researchers, rather than because of any specific factors being tested. Human Relations Movement
Abraham Maslow (1908- 1970) Phd in psycholoy developed the hierarchy of needs theory. He observed that his patients problems usually stemmed from an inability to satisfy their
needs, thus creating the hierarchy of need such as.
Physiological: basic or low level life needs:-food, clothing, sleep, warmth and shelter.
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Safety: protection, security, order, stability, feel safe etc. Social: family, affection, relationships, team, a sense of belonging etc. Esteem: achievement, status, responsibility, reputation, the need for recognition. Self actualization: personal growth, self fulfillment, leave their mark
Douglas Mcgregor- (1906 1964) phd Harvard. Theory X versus theory Y Theory x ('authoritarian management' style) The average person dislikes work and will avoid it he/she can.
Therefore most people must be forced with the threat of punishment to work towards organisational objectives. The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else.
People will apply self-control and self-direction in the pursuit of organisational objectives, without external control or the threat of punishment. Commitment to objectives is a function of rewards associated with their achievement.
The capacity to use a high degree of imagination, ingenuity and creativity in solving organisational problems is widely, not narrowly, distributed in the population. In industry the intellectual potential of the average person is only partly utilised.
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Frederick Irving Herzberg (1923 2000) Hygiene and Motivation Theory. According to Herzberg, the Hygiene Factors do little contribution to provide job satisfaction. He called them "dissatisfiers' as their absence cause dissatisfaction but their presence is not motivating but only prevent dissatisfaction. The hygiene factors meet man's needs to avoid unpleasantness but do not motivate them to take more interest in the work if they are provided, they will not necessarily act as motivators. They will just lead employees to experience no job dissatisfaction. Such hygiene factors are as noted below.
Hygiene / Maintenance Factors are :Company's Policies and Administration, Supervision, Working Conditions, Interpersonal Relations with superiors and other subordinates, Salary, Job Security,
1. 2. 3. 4. 5. 6.
7. 8. 9.
Motivating Factors act as forces of job satisfaction. They create positive and a longer lasting effect on employees performance and are related to work itself. Adequate provision of such factors called 'Satisfiers'. They make people happy with their jobs because they serve man's basic needs for psychological growth. In addition, they also motivate employees in their work. Such factors are five and are called motivators by Herzberg. The motivating factors are: Motivating Factors are :1. 2. 3. 4. 5. Achievement, Recognition for Accomplishment, Increased Responsibility, Opportunity for Growth and Development, and Creative and Challenging Work.
4.
QUANTATIVE MANAGEMENT
Quantitative Management (also known as Operations Research) offers a systematic and scientific approach to problem solving and decision making in complex environments and situations of uncertainty and conflict. The discipline is characterised by a search for an optimal (best) answer for a problem by using quantitative (numerical) models.
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Managers can use computer models to figure out the best way to do something saving both money and time. Managers use several science applications. Mathematical forecasting helps make projections that are useful in the planning process.
Inventory modeling helps control inventories by mathematically establishing how and when to order a product.
Queuing theory helps allocate service personnel or workstations to minimize customer waiting and service cost.
Operations management Operations management is a narrow branch of the quantitative approach to management. It focuses on managing the process of transforming materials, labor, and capital into useful goods and/or services. The product outputs can be either goods or services; effective operations management is a concern for both manufacturing and service organizations. Operations management today pays close attention to the demands of quality, customer service, and competition.
Management information systems (MIS) is the most recent subfield of the quantitative school. A management information system organizes past, present, and projected data from both internal and external sources and processes it into usable information, which it then makes available to managers at all organizational levels. The information systems are also able to organize data into usable and accessible formats.
Transformation processes technological and managerial processes Outputs products or services Feedback reactions from the environment
In relationship to an organization, inputs include resources such as raw materials, money, technologies, and people. These inputs go through a transformation process where they're planned, organized, motivated, and controlled to ultimately meet the organization's goals. The outputs are the products or services designed to enhance the quality of life or
productivity for customers/clients. Feedback includes comments from customers or clients using the products. . The systems theory encourages managers to look at the organization from a broader perspective. Managers are beginning to recognize the various parts of the organization, and, in particular, the interrelations of the parts. Contemporary system theorists find it helpful to analyze the effectiveness of organizations according to the degree that they are open or closed. The following terminology is important to your understanding of the systems approach: An organization that interacts little with its external environment (outside environment) and therefore receives little feedback from it is called a closed system.
An open system, in contrast, interacts continually with its environment. Therefore, it is well informed about changes within its surroundings and its position relative to these changes.