PB301 BUSINESS MANAGEMENT TOPIC 1 ELEMENTS OF MANAGEMENT

1.1 Definition of Management

- A process to accomplish organizational goals by working with humans and other organizational resources. - A process that is conducted by one or more individuals to coordinate the work activities of employees, capital, raw material and technology to achieve results of high quality. - The process of completing tasks through and with other people

1.2 GENERAL ELEMENT IN MANAGEMENT

a. Planning plan what to do and how to do it and achieving it at the specific time choose the correct person to do the specific job/task at the different department with the skill required make sure the job is being done by the correct person, influencing and motivating employees

b.

Organizing

c.

Directing

d.

Controlling

ensuring that the actual activities are done as planned

HISTORY OF MANAGEMENT
Management has evolved into 3 stages : a. Early Stage (before 1930) : Pre- Classical Approach - Robert Owen :- emphasis on employees health, education and the working environment

- Charles Babbage :- Father of Modern Computing idea of task specialization suggested profit sharing Paying salary based on the companys profitability
- Henry R. Towne :- importance of management skills in running an organization

Classical Approach
- Frederick W.Taylor (1856 1915) i. 4 basic principles a. The best method for performing each task could be determined b. Scientific selection of workers, so that each worker would be given responsibility for the task for which he or she was best suited. c. The science education and development of the worker d. Intimate, friendly cooperation between manager and labour ii. Broke each job into its component and designed the quickest and best methods of performing each component. iii. Encourage employers to pay more productive worker at a higher rate than other differential rate system.

2. i.

Henry L Gantt (1861 1919) Work with Taylor but came up with a new idea: - every worker who finished a days assigned work load would win a 50-cen bonus - 2nd motivation, the supervisor would earn a bonus for each worker who reached the daily standard plus an extra bonus if all the workers reached it : spur supervisors to train their workers to do a better job.

ii.

Workers progress was rated publicly and recorded on individual bar chart :- originated a charting system for production scheduling : the GANTT CHART
Gantt Chart formed the basis for two charting devices to assist in planning, managing and controlling complex organizations : Critical Path Method(CPM) and Program Evaluation and Review Technique (PERT)

iii.

3. The Gilbreths Frank B. Gilbreth ( 1868-1924) Lillian M. Gilbreth (18781972)

i. ii. husband and wife team Collaborated on fatigue and motion studies and focused on ways of promoting the individual workers welfare help workers reach their full potential as human beings

iii.

Every motion that was eliminated reduced fatigue : the most economical motions for each task in order to upgrade performance and reduce fatigue
Motion study would raise worker morale because its obvious physical benefits and because it demonstrated managements concern for the worker.

iv.

4.

Henri Fayol FATHER OF MODERN MANAGEMENT

i. management consists of specific function that must be followed by each manager ii. Every organization must be manage according to 5 management function : Planning, Organizing, Commanding, Coordinating and Controlling iii. Henri Fayols Management Principles

a) Division of Work : the most people specialize, the more efficiently they can perform their work.
b) Authority : Managers must give orders so that they can get things done. While their formal authority gives them the right to command. c) Discipline : members in the organization need to respect the rules and agreements that govern the organization. It result from good leadership at all levels of the organization, fair agreements and judiciously enforced penalties for infractions.

d)

Unity Of Command : Each employee must received instruction from only one person. Unity Of Direction : Operations within the organization that have their same objective should be directed by only one manager using one plan General Interest over Individual Interest : No priority should be given to the interest of an individual or a specific group of employees in an organization Reward : Fair reward is given to the employees and the employer. Centralization : Decreasing the role of subordinates in decision making centralization; increasing their role is decentralization. Managers should retain final responsibility but at the same time give their subordinates enough authority to do their jobs properly.

e)

f)

g)

h)

i)

The Hierarchy/ The line of authority in an organization; authority flows from the top to the bottom of the organization. Encourages horizontal communication Organization : materials and people should be in the right place at the right time Equity : Managers Should be both friendly and fair to their subordinates

j.

k)

l)

Stability of Tenure : A high employee turnover rate undermines the efficient functioning of an organization.
Initiatives : Employees are encouraged to take their own initiatives to complete their task Pride and mutual loyalty : Unity and the spirit of groupwork are given priority in completing a task

m)

n)

2. Max Weber (1864-1920) i. Developed a theory of bureaucratic management that stressed the need for a strictly defined hierarchy governed by clearly defined regulations and line authority. Job division is determined clearly ii. The Bureaucracy Administrative System is based on the following 5 principles : A) The managers authority is derived from the managers position in an organization

B) Positions held by individuals are not based on their social position, rather is due to their performance (skills and technical qualification)
C) Positions, jobs, authority, duties, responsibilities and the relationship between these elements must be explained in detail. D) The hierarchy of authority must be created in order for employees to know to whom they should report. E) Implementation rules, norms, and standard operating procedures (SOP) are design to control employee behaviour.

b. Middle Stage ( 1930 1945 )

Administrative and Behavioural Approach : emphasized human aspects in the production process divided in 2 theories : i. Human Relation Movement ii. Behavioural Science Theory

Human Relation Movement

ways managers interact with their employees to motivate employees to work harder and better Hawthorne Studies focused on social aspect and the recognition of teamwork at the work place

Hawthorne Studies
Elton Mayo investigate the behavioural and human aspects at Hawthorne Work Of The Western Electric Company. Divide into 2 phases : i. Relay Assembly Test Room Experiment : The relationship between physical condition and the production level of employees ( the brightness of light and the efficiency of two groups). Human factor in an organization significantly influences the production level of employees. ii. The Bank Wiring Observation Room Experiment : An increase in the level of production is influence by social factors such as team spirit, sense of belonging and good relationship between team members

Behavioural Science Theory

Founder of this theory :
i. Douglas McGregor Theory X and Theory Y

Assumptions of Theory X (Bad Workers) Dislike of work and will avoid responsibility if possible Most workers must be threatened with punishment to force them toward the achievement of organizational objectives Average workers prefers to be directed to avoid responsibility, has relatively little ambition and wants security

Assumptions of Theory Y ( Good Workers)

- A worker will exercise self-direction and self-control in achieving objectives to which the worker is committed to. - Average worker learns under proper conditions, not only to accept but to seek responsibility - The capacity to exercise a relatively high degree of imagination, ingenuity and creativity to resolve organizational problems. - Under the conditions of working environment, the intellectual potentialities of average workers are only partly utilized. - The physical and mental effort in work is likened to play or rest. The average worker does not inherently dislike work

i.

Abraham Maslow _ Maslows Hierarchy Of Five Human Needs Theory

Self-actualization Need (become a useful person Esteem Need (respected, appreciated & honoured Social Need ( desire to form friendship Safety Need (loss of job, food & Shelter Physiological Need (food, drinks,clothing & sleep

Quantitative Approach :
use mathematical methods, statistics and other information tools to aid decision making in order to increase organizational effectiveness.

3 Theories
a) Management Science Theory : involves the use of computerized mathematical model b) Operations Management Theory : manage production activities and the delivery of products and services (such as forecasting and inventory analysis. c) Management Information System Theory : process of designing and managing information by using computers

MANAGER : - is an individual who are owners, founders or employees in an organization. - Individual who are hired to influence, lead and train employees in an organization Responsibilities of managers : i. Assist in planning, organizing, influencing and controlling the organization to achieve the organizations goals and objectives ii. Influence and assess the results and performance of employees iii. Act as a generator or catalyst to the organization iv. Act as a connector to employees and parties outside the organization v. Amend management activities according to changes in the internal and external environment vi. Coordinate employees activities and ensure that the organization resources are utilized efficiently and effectively

Characteristic of a Successful Managers a) Practise open communication able to receive comments and ideas. b) Set clear direction ensure employees participate in setting the goals. c) Establish objective recognition employees who demonstrate good performance d) Provide guidance and support to employees help employees to perform an activity or task and cooperate with subordinates to solve problems e) Design and monitor a control system continuous control ensure that the actual performance is accordance with the planned performance

Three levels of management

Top line managers (Corporate Managers Middle line managers (Tactical Managers

First line managers

(Operational Managers)

Three types of managers skills

a. Conceptual skills involves the managers thinking, information processing and planning abilities or how the organization fits into the industry, community and the broader business and social environment b. Humanistic skills the way a manager relates to workers, including the ability to motivate, facilitate, coordinate, lead, communicate and resolved conflicts

c. Technical skills understanding of and the proficiency in performing specific tasks. Mastery of methods, techniques and equipment involved in specific functions

The roles of the manager

a. Interpersonal relationship i. Figurehead ii. Leader iii. Public relation Officer Disseminating information i. Observer ii. Disseminator of information iii. Spokesperson Decision-making i. Entrepreneur ii. Disturbance Handler iii. Resource Allocator iv. Negotiator

b.

c.

THATS ALL FOR TODAY. HAVE A PLEASANT DAY