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INTRODUCTION TO MANAGEMENT
Learning objectives
After completing this chapter, you should be able to :
1. Define what is management
2. Familiarize with the different types of organizations.
3. Explain the levels of management and management functions
4. Know the different types of managerial roles and activities.
1
1.0 WHY WE STUDY MANAGEMENT ?
To enhance the understanding of events/ activities, challenges and skills that will give
Meaning to our future work experience and careers as managers or other professional
careers we may choose.
Make us become effective manager who will be able to help the organization achieve a
high level of performance through the utilization of its human and material resources.
Equip ourselves with effective management theories and practices that can be applied to
all types of organization and any occupational settings we may choose to be in the future.
Make us to become effective managers who will be able to detect and locate problems to
be solve, thus making good decision about appropriate solution and utilizing organizational
resources effectively to implement these solutions.
Enable us to assess the future, make plans for it, thus acting as good planners.
2
1.1 DEFINITION OF MANAGEMENTS, ORGANIZATION AND
MANAGERS.
a) MANAGEMENT:
Earlier definition by Mary Parker Follet – Management scholar as:
“ The art of getting things done through people”
Stoner
“The process of planning, organizing, leading and controlling the efforts of an
organization members and of using all other organizational resources to achieve
stated organizational goal”.
Holt
“ The process of planning, organizing, leading and controlling resources in an
organizational
b) ORGANIZATION:
Is a social unit in which two or more people interact to achieve a common goal or
a set of goal ( stoner) or
As a collection of people working together in a division of labor to achieve a
common purpose.( Schermerhon)
The structure of relationships that exists when two or more people mutually
cooperate to pursue common objectives (Holt).
TYPES OF ORGANIZATION:
1. Formal :
Consist of two or more people who are involve in a mutual effort with formal
authority to achieve common objectives ( Holt)
2. Informal organization
The shadow organization consist of two or more people involved in a mutual
effort without deliberate structures of authority or the necessity of the common
objectives.
3
c) A MANAGER
A person in an organization who is responsible for work or performance of one or
more other persons ( Schermerhorn).
4
b) Middle managers
Middle managers can include more than one level in an organization.
Middle managers direct the activities of lower – level managers and
sometimes also those of operating employees. Middle managers’
principles responsibilities are to direct the activities that implement their
organizations’ policies and to balance the demand of their superiors with
the capacity of their subordinates.
c) Top managers
A comparative small group of executives, the top management is
responsible for the overall management of the organization. It establishes
operating policies and guide the organization’s interactions with its
environment. Typical titles of top managers are “ chief executives officer”,
“ president”’ and “ senior vice- president”. Actual titles vary from one
organization to another.
MANAGER
5
A manager’s job is diverse and complex, and requires a range skills. Three basic
kind of skills : technical, human and conceptual
Technical skill- Is the ability to use the procedures, techniques and knowledge of
a specialized field. Surgeons, engineer, musicians and
accountants.
Human skill - The ability to work with, understand and motivate other people
as individuals or in groups.
Robert L.Katz. every manager needs all three but the amounts differ by their level
in organization.
6
The specific classifications of managerial behavior.
According to Henry Mintzberg “ The nature of managerial work”’ managers
perform ten inter- related roles in the organization. Ten roles classified under
three main roles :
They are :
1. Interpersonal roles
2. Informational roles
3. Decisional roles
A. Interpersonal Roles
1. Figurehead - A department head performing ceremonial duties like
greeting visitors, signing legal documents etc.
The interpersonal roles are to help the manager in managing organization smoothly.
B Informational Roles
Thus, the informational roles are to assist the manager in receiving and communicating
information to make the right decision.
C. Decisional roles
1. entrepreneur - Manager tries to improved the unit and initiate the changes.
3. Resources
1.6 allocate
Managerial - Manager is responsible in allocating the resources of the
Activities
organization
1. Planning Goals:
- Include defining goals a) types and number of books to be
establishing strategy and produce
developing plans to coordinates b) Improving the services for the
uses activities
Organizing
Determining what tasks are to Production workers were assigned to
Be done, who is to do them, different supervisor assembly lines / unit
how the tasks are to be grouped, many productions activities were
who reports to whom and where rearrange so as to achieve the goals
decisions are to be made. Specified.
3. Leading
Includes motivating, The production manager and supervisor
subordinates, directing, selecting have created a certain environment
the most effective where workers will want to produce
communication channels, and more so as to meet the target.
resolving conflicts.
4. Controlling
- monitoring activities to Since the sales of proton wira and
proton
Ensure that they are being Perdana exceed expectations
Accomplished as planned and management has add mare shifts to meet
Correcting any significant demand which will obviously increase
Deviations. the market share.
8
In an environment which is rapidly and constantly changing, managers have to
face and contend with a wide variety of challenges in pursuing their mission.
This challenges can and do influence the work of managers and affect the
performance of the organization as a whole.
The current challenges that are considered as the important factors that affect today
business environment are:
a) Globalization
Services or business not a local focus but must be global
e) Re- engineering
A radical rethinking and re-designing organization’s processes to achieve
drastic improvements in performance ( Micheal Hammer)
f) Empowerment.
Current and poses another new challenge to management and organizational
today. An approach that involves granting employees the freedom and
responsibility to do their job as they think best, without constantly having to
appeal to higher authorities for permission. This will enable employees to
make quick decision without getting caught through the ladder of beauracracy
so they will be able to serve customers more effectively.
9
ACTIVITY
THINKING EXERCISE
2. List and define four (4) management functions. Give examples of how they
would be used by the following person(s).
a) High School principal
b) Information professionals
REFERENCES :
2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th
and,1995, Prentice Hall.
CHAPTER 2 OVERVIEW
10
EVOLUTION OF MANAGEMENT THEORIES
4. BEHAVIORAL VIEWPOINT
6. CONTEMPORARY VIEWPOINTS
Learning Objectives :
11
Begin from ancient civilization. Organized management practice in 2000 B.C
during King Hummurabi. Great Pyramid in Egypt, 100,000 workers involve.
Egyptian use mathematical to organize labor, supervise to built within specified
design and time.
China – Sun Tzu War, touching on strategy, planning and leadership use by
military strategy.
Management thought started with industrial revolution around 1800. This point
saw the invention and use of machinery setting up factories and creation of
entrepreneurial capital that finance the industries.
People think ways to improve efficiency and effectiveness.
12
- Known as father of modern computing
- English mathematician, pioneered in computing and management.
- The idea of work specialization – work is divided into various jobs.
- Recognized specialized physical work as well as mental work
( specialists
- Invented a profit sharing plan _ a bonus for useful suggestions and
portion of wages that was dependent on factory profits.
- Ideas used in scanlon plan.
a) Scientific management
b) Bureaucratic management
c) Administrative management
1. SCIENTIFIC MANAGEMENT
13
Thus, developed science management :
1) Scientifically study each tasks and develop the best method for performing
the tasks.
2) Carefully select employees, train them by using scientifically developed
method.
3) Cooperate fully with employees to ensure them using proper method.
4) Divide work and responsibility. Management will plan work method using
scientific principles and employees are responsible for executing the work
accordingly.
Frederick made use of time and motion study to substantiate his theories and
increase productivity. He divide work into different task. He redesigned the work,
improve production by his principle- management should develop a science for
each tasks to be performed.
2. BUREAURATIC MANAGEMENT
- German sociologist
- An approach that emphasizes the need for organizations to operate in a
rational manner. (Ideal organization where activities and division of labor
were clear, formal rules, procedures, people promoted on merit)
CHARACTERISTICS DESCRIPTION
14
Specialization of labor Jobs broken down into routine, so
that members know what is
expected from them thus, become
more competent.
3 . ADMINISTRATIVE MANAGEMENT
15
depends on the worthiness of its leaders.
l) Stability of personnel High turn over is not rate will effect the
functioning tenure of organization.
16
- Acceptance theory of authority- argues that authority does not depends as
much on persons of authority who give orders as on the willingness to
comply of those who receive orders.
- Employees willing to accept orders if they understand the communication,
see the communication consistent with the objectives of organization, feel
that the actions indicated are inline with their need and other employees
and view themselves as mentally and physically able to comply.
- Managers real powers come from the degree of acceptance of his workers.
1) Early behaviorist:
a) Hugo Munsterberg
Interested in identifying the conditions that would promote the individuals
best work and finding ways to influence workers to act in accord with
management interest.
d) Hawthorne studies
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a) Abraham Maslow (1908-1970)
- Contribute to the theory of motivation “ hierarchy of needs”.
- Once has satisfy basic need before other can be taken care. This
Dictated people’s motivation to perform task.
Conclusion – managers who assume best of their employees are rewarded with
committed and satisfied workers.
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Aimed at increase decision effectiveness through the use of sophisticated
mathematical models and statistical methods.
2. Operation Management
The function/ field of expertise for managing the product and delivery of
an organization’s products and services. E.g work scheduling, production
planning, inventory analysis.
1. System theory
An approach based on the assumption that organizations can be visualized
as a systems.
System – A set of interrelated parts that operate as a whole towards a
common goal.
Components of system
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interaction with its environment.
Closed system Does little or no interaction with
environment, receives little feedback.
2. Contingency Theories
ACTIVITY :
REFERENCES :
2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th
and,1995, Prentice Hall.
CHAPTER 3 OVERVIEW
20
PLANNING
3.3 GOALS
3.4 OBJECTIVES
3.5 OPERATIONALIZING
Learning objectives:
21
3.1.1 PLANNING
A process that begins with objectives, defined strategies, policies and detailed
plans to achieve them. Planning establishes an organization to implement
decisions and includes a review of performance and feedback to introduce a new
planning cycle. (STEINER) OR
1. Formally prepared
2. Observable, factual, logical and realistic
A manager must plan ahead to get things done through his subordinates
3.2 PLANS
Through planning, managers can inform their subordinates about the expectations
of the management and the objective of the organization can be realized.
Whatever activities are planned by the managers, there are several questions that
need to be asked to realize the organization’s goals.
1. What activities are required to accomplish the objectives?
2. When should these activities be carried out?
3. Who is responsible for doing what?
4. Where should the activities be carried out?
5. When should the action be completed?.
22
Why do managers in organizations have to plan?
Why do you have to plan?
What is this activity important to an organization?
4. Through plans, resources are efficiently and effectively utilized, thus resulting in
saving.
5. What is really happening become more meaningful when we know what is really
expected.
9. Planning can point out the need for future changes. It can reveal opportunities for
new services. It guides management thinking to future desirable activities and
spells out how best to make the shift and what must be done to attain goals.
23
Before any managers can plan the activities of the organization, managers do need
to know the various types of plan. The failure of some managers to recognize the
variety of plans will caused difficulty in making planning effective.
3.5 GOALS
Goal is one type of plan. Setting goals gives people a sense of control that leads
the action. Accomplishing goals leads to self- confident, Greater risk taking and
more action.
Goals are the ends toward which activities is aimed. Weather a firm new or old,
large or small it must set goals. Goals is organizations provide the ends towards
which people direct their efforts. Goals that are clearly established an properly
communicated to employees stand the best chance of being reached.
Well defined goals provide a solid basis for managers to organized, lead and
control their departments or company successfully.
Example of a Goal:
The goal of every manager is to create a clear and verifiable objectives that
facilitate measurement of a effectiveness and efficiency of managerial actions.
1. Purpose
It is define as an intention to produce a specific good or service. E.g to
develop, manufacture and market pharmaceutical products that assure
strong growth and profitability.
2. Mission
It is the purpose or reason for the existence of an organization. The
mission of an organization’s is its products or services or markets or
customers .e.g, marketing pharmaceuticals products can be the mission of
a drugs manufacturing company.
24
3. Objective
It is an estimated end result expected in the future. Objectives are
established at organizational, departmental or individual level. Increasing
the accounts handled from 20 to 25 percent within the next year, can be an
objective of a salesman.
4. Strategy
It is the method of shaping a company’s future and involves determining
the long – run direction of the organization. A company may have the
strategy diversifying into related businesses within the next few years.
5. Resource allocation
It distributes money, personnel, plant and equipment, land and other
tangible means of production for various uses.
6. Strategic planning.
Process of making long term choices about an organization’s mission,
overall objectives, strategies, policies and resource allocations.
7. Tactical planning
Making detail, short term decisions of what to do, which will do and how
it is to be done. Developing annuals budgets for projects and departments.
Choosing specific means of implementing strategic plans.
3.6 OBJECTIVES
Objectives are the prime parts of the plans and are vital to an organization because
all the efforts an activities are focused on this objectives .
They provide a direction in which the organization should move.
They serve as standards of performance against which actual performance may be
compared and it is an important dimension of the control process. Objectives
determine the role an organization should play in a given environment. The
efforts an activities of the members of an organization can be coordinated with the
help of objectives.
25
1. Hierarchy of objectives_
It is a series of objectives linked to one another at the various levels of
management such that each higher-level objective is supported by one or
more lower- level ones.
26
RELATIONSHIP OF OBJECTIVES AND THE ORGANIZATIONAL
HIERARCHY
HIERARCHY OF OBJECTIVES
Board of
directors
Socio economic
purpose
1
Overall objectives
of the organization
( LR strategies )
3
Division objectives
Lower
Department and unit objectives level
managers
6
Individual objectives
- performance
- Personal development objectives
Organizational hierarchy
27
3.6.3 EXPLAINATION:
3. The stated mission might be to produce market and service automobiles. These
aims are then translated into general objectives or strategies, like designing,
producing, marketing a low- cost, fuel- efficient automobile.
4. At the next level of the hierarchy, you find more specific objectives such as those
in the key result areas. These are the areas in which performance is essential for
the success of the enterprise.
5. These objectives have to be further divided into division department and unit
objectives down to the lowest levels of the organization.
In planning, managers have to make use of the different types of operational plans
for the effectiveness of the organization. This operational strategy is done at all
levels and involves directing the organization’s day to day operations to achieve
overall strategic objectives consistent with the organization’s mission and
policies.
28
- Programs
Deals with the who, what, where, when, how, and how much of an
activity. It covers a relatively large set of activities whereby it indicates:
- Major steps that are required to reach an objectives.
- The organization unit or member involved for each steps.
- The order and timing of each steps.
Program are the actual course of action designed to carry out the
established objective. Usually the programs may be accompanied by a
budget for the activities required.
Projects
Are similar to programs but smaller because each project has a limited
scope and distinct directive concerning assignments and time. Projects are
short-term in nature.
Budgets
Statements of financial resources set aside for specific activities in a given
period of time. Budgets are plans that commit resources to activities,
project or programs.
2. Standing Plans
Policies
policy is a standing –use plan that communicates broad guidelines for
making decisions and taking action. It indicates what is permitted and
what is not. Policies found in all aspects of an organization.
Procedures
These are a series of steps in which activities are to be carried out.
e.g, how to operate a Photostat machine or how to handle employee
grievances.
Rules
These are very specific actions to be taken or not taken with respect to a
situation. E.g are wearing uniforms or reporting to work at a particular
time.
29
3.8 PLANNING PROCESS
Stating organizational
objectives STEP 1
Listing alternatives
ways of reaching
objectives STEP 2
Developing premises
upon which each STEP 3
alternative is based
Developing plans to
pursue chosen STEP 5
alternatives
30
ACTIVITY :
REFERENCES :
2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th
and,1995, Prentice Hall.
3. Locke, E.A and Latham, G.P.1990. A theory of Goal setting and Task
Performance. Eaglewood Cliffs NJ: Prentice Hall.
31
CHAPTER FOUR OVERVIEW
ORGANIZING
Learning objectives:
32
4.0 ORGANIZING
4.1 Definition :
The formal way for managers to divide work coordinate task, delegate authority and
responsibility to achieve organizational objectives.
To structure / arrange the relationship between people, the work done and facilities so
that goals are achieved.
1. Specialization
2. Standardization
3. Coordination
4. Authority
33
a) Specialization :
b) Standardization :
How?
Description, instructions, rules and regulations to standardize subordinates
jobs success
- Application forms will standardize the selection of employees.
- On the job training programs will promote standardized skills and
reinforce values to organization’s success.
c) Coordination :
How?
In bureaucratic organization rules and regulations. In less structure- coordination
requires knowledge of company wide problems, a willingness to share
responsibility and effective interpersonal communication.
d) Authority :
Right to make decision and take actions. Various organization distribute authority
differently.
Centralized organization- top manages make decision, communicate to lower
managers.
Decentralized organization – Greater decision making responsibility is given to
lower level managers.
34
4.6 ORGANIZATION CHART :
The way to describe the four elements including the location of positions,
departments and function within the organization. Five major information found
in the organization chart are:
1. Tasks
Indicates the range of tasks within the organization.
2. Subdivision
Each box represents a subdivision of the organization that is responsible for a
portion of the work.
3. Type of work
Label in each box identifies the subdivision area of responsibility.
4. Levels of management-
Management hierarchy, those reporting directly to the same individual are at the
same level.
5. Lines of authority
Lines connecting the boxes show the official lines of authority and
communication.
Work is being divided among members and different jobs related to each other
.This division of work and the grouping together of people is done based on some
common characteristics linked between the activities involved.
Disadvantages:
35
4.8 Span Of Management:
Flat – Steep-
Flat wide span of authority Short span of authority with
many organizations levels.
4.8.1 FLAT : few organization levels with flat wide span of authority.
Advantages :
- Superiors are forced to delegate
- Clear policies
- Subordinates must willing to obey
Disadvantages :
- decision not passed down because of managing subordinates.
- Danger of the superior’s loss control
Advantages :
- Close supervision and control
- Rapid communication between subordinates and superior.
Disadvantages:
- Superior too involved with subordinates
- Many levels costly
- Excessive distance between the lowest and the highest level.
36
4.9 AUTHORITY
The right to make decision with respect to work assignments and to require
subordinates to perform assigned tasks in accordance with the decision made.
Authority is delegate from top. Each employee and each superior should know
- Job suppose to accomplish
- Duties
- Authority
- His supervisor
- Subordinates
- Levels of performance
- Authority is a type of power. It is legitimate.
4.10 DELEGATION:
- the passing of formal authority to another person.
- Includes responsibility, authority and accountability.
Superior delegate authority to subordinates in order to facilitate work being
accomplished.
Why delegate?
- Culture of organization
- Specific situation involved.
- Relationship behavior personalities and capabilities of the people in that
situation.
37
4.11 POWER:
Ability to exert influence. A process where managers affect other’s behavior.
5 types of power:
a) Reward power:
Money, acceptance, praise, promotion, status
b) Expert power
Influence others through knowledge
c) Referent power
Status, money, physical appearance, fame
d) Coercive power
Pain, ridicule, penalty, rejection and denial of rewards.
f) Legitimate power
Position- president, supervisor
4.12 CENTRALIZATION
The responsibility and authority concentrated in one place so that major decision
are made by central controlling body. In some situation all managerial decisions
have to be approved by the chief executive before operation.
Advantages :
- It provides absolute control over organization.
- Administration convenient and the focal point for each function.
- Common standards for all in organization.
Disadvantages :
- Each section may not have standard procedure.
- More reporting and inspection may be needed than if the control were
centralized.
38
4.13 DECENTRALIZATION : DEPARTMENTALIZATION :-
It occurs where responsibilities for various functions and operations are taken
away from the center and rests at the point where operations occur.
Four Types :
- By function
- By product
- By territory
- By customer
Advantages Disadvantages
39
By territory Organized around the places Offers better services More staff required,
where operations are located at low cost. less control for top
Responsible for management,
profits at lower level. regional manager
Emphasizes on local are fairly
market and problems. independent.
Offer better face to
face communication.
Advantages:
ACTIVITY :
REFERENCES :
2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th
and,1995, Prentice Hall.
40
CHAPTER FIVE OVERVIEW :
CONTROLLING
1. DEFINITION OF CONTROLLING
2. IMPORTANCEOF CONTROLLING
5. TYPES OF CONTROL
Learning objectives :
CONTROLLING
41
5.0 Definition:
- Deals with the change, or uncertainty. Plans and goals set by organization
deals with future which is always uncertain and is constantly changing.
E.g market shift, product demand.
Establish standards and methods for measuring the performance standard. E.g
customer waiting time.
Measure the performance e.g R & D gas in the air. Its depend on the situation
Take corrective action if the performance does not match the standard then
corrective actions may be include
5.3 Characteristics Of Effective System:
42
1. Accurate information-
Inaccurate will cause organization to make wrong decision.
2. Timely-
Information must be collected and evaluated quickly to enable managers
to solve problems on time.
5. Flexible-
Individual judgment and is modified to fit new circumstance as they rise.
2. Steering control
To spot problems as they develop or work process, take corrective actions
before final result are achieve. E.g zero inflation campaign.
ACTIVITY :
43
1. Why organization need to focus on controlling?
REFERENCES :
44
TOTAL QUALITY MANAGEMENT
1. Definition of quality
3. History of TQM
Learning objectives :
QUALITY
45
6.0 Definition :
Meeting the customer’s need the first time and every time.(GSA)
- quality involves meeting or exceeding customer expectations.
- Quality applies to product, service, people, processes and environments.
(Boeing )
- An ever changing state.( what is considered as quality today may not good
enough to be considered quality tomorrow)
Occurred in Japan after World War II. Japanese industry was completely destroyed and
had to be rebuilt from scratch. Number of American went to Japan and helped to built
and operate modern manufacturing facilities.
Contributors :
46
1. W. Edward Deming
2. Joseph M. Juran
3. Philip B. Cosby
4. Kooru Ishikawa
TQM is a process of continuously improving quality over the long run. There are five
main TQM ideas
A system approach :
- Depends on understanding organizations as systems.
- Parts of the system must work to support each other.
Systems:
- A series of functions or activities within an organization that work
together for the aim of organization.
a) Culture system:
Referred as social system. ( set of beliefs and resulting behaviors that are
shared throughout the organization).
47
b) Technical system:
Factors such as technologies in the physical infrastructure – include
ergonomics consideration, computer software, hardware configuration and
capital investments.
c) Management system:
Define the effectiveness of those processes by which an organization
manages its human and physical assets.
Cross functional
48
Employee participation Empowerment. Letting employees make
decision at all levels of an organization
without asking for approval from
managers.
ACTIVITY :
REFERENCES :
2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th
and,1995, Prentice Hall.
49
DECISION MAKING
Learning objectives :
DECISION MAKING
50
7.0 DEFINITION
7
- Process where a course is selected as the way to deal with a specific
problem.
Decision making is one of the vital tasks of a manager e.g in planning, organizing,
controlling.
Decision making is a process which affects all the manager’s operating functions.
The key to successful decision making depends on the proper formulation of the
specific problem at hand.
1. Programmed decisions
2. Non- program decision
PROGRAMMED DECISIONS
51
Highest level Un structured Non- programmed
Organizational
hierarchy
structured
lowest level
There are three different conditions under which decision are made. Each of those
conditions is based on degree to which the future outcome of a decision alternative is
predictable. These condition are:
1. Certainty
2. Risk
3. Uncertainty
CERTAINTY:
The decision maker knows the out-come of the problems. Individual are fully
informed in terms of :
RISK
52
Future condition are unknown in advanced. Some information are available but
not enough to answer all questions and normally most of the management
decisions are made under this condition. Occurs in the situation in which an
individual can define as :
- Nature problems
- Possible alternatives
UNCERTAINTY
The understanding of the steps will enhance and improve the analytical and
decision making process.
Steps 1
- Investigate the situation.
- Define the problem
- Diagnose the causes
- Identify decision objectives
Step 2
- Generate alternative solutions.
- Consider as many alternatives as possible
Step 3
- Evaluate and choose among alternative solutions
- Once the possible solutions are developed, the decision maker has to
examine the probable desirable and undesirable consequences of each
alternative.
Step 4
- Implement and monitor the chosen solution
- Design the implementation for the chosen situation. Decision makers
responsible for reviewing the plan periodically and comparing the actual
performance with the planned solutions.
7.2 State Of Nature Types And Decisions
53
Routine Adaptive Innovative
Decisions decision decision
Certainty Uncertainty
Objective probabilities Subjective probabilities
RISK CONTINUUM
Routine :
Choices made in response to relatively well known problems. Solution obtained from
standard rules, operating procedures and computer programs.
Adaptive:
Innovative:
Involve combining the discovery, identification and diagnosis of unusual and ambiguous
problems with the unique. Novel and creative alternative solutions.
- Represents a series of mini decisions made over a period of months or
several years.
- Represents an individual decision, involve many people, many and various
time.
- Do not unfold in a logical, orderly sequence.
- Made in the midst of a lot other managerial tasks.
Differences:
54
States of nature:
Condition, situations and events that managers cannot control, but influence their
decisions. e.g new technologies, entrance of new competitors into market, new laws and
political instability.
Certainty:
Managers are fully informed of the problem, alternative solutions that will lead to desired
result, probability that certain states of the nature will occur.
Objectives probability:
The likelihood that the state of nature will occur, based on hard facts and figures.
Rational
Make optimal decision, possessing and understanding all information relevant to their
decisions at the time they are made.
Non-rational model
Information gathering and processing limitations make it difficult for managers to make
optimal decisions.
Rational decision :
Permits maximum achievement of an objective within limitations of environment in
which decisions are made. It merges the rationality of the decision maker and the
decision into sequence of basic steps:
2. Set objectives
What to be achieve and by what date.
55
3. Search for alternative solutions
Seeking additional information, thinking creative, consulting experts,
undertaking.
ACTIVITY :
REFERENCES :
2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th
and,1995, Prentice Hall.
56
LEADERSHIP
Learning objectives :
LEADERSHIP
57
8.0 Definition :
Process of directing and influencing the tasks related activities of group members.
( stoner, J.A.F, management, Prentice Hall, New Jersey, 6th edition)
3) Involves the ability to use the different forms of power to influence, reward,
referent, expert power and legitimate power or authority.
3) Encourage teamwork
- Evaluation and selection of leaders are based on their physical, mental and
psychological characteristics. Qualities such as intelligence, charisma,
decisiveness, enthusiasm, strength, bravery, integrity and self confidence.
- Leaders have certain inborn personality or leaders are born with certain
characteristic.
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Set of Traits that differentiate leaders:
Traits of leaders and non- leaders Traits of effective leaders and non-
effective leaders.
Physical appearance, charisma,, mental Intelligence, self assurance and
ability, behavior/attitude, personality managerial supervisory ability.
factors.
RESULT
Traits of leaders and non- leaders Traits of Effective leaders and non-
Effective leaders
Cannot point out the differences between Does not depend upon particular set
of
leader and followers, Traits can be gained traits. It depends on how well the
leaders
through learning process traits match the requirement of the
situation that / she is in.
The traits theory failed to isolate prominent traits to distinguish between leaders
and non- leaders.
This theory is believe that people can learn the characteristic of a leader or people
can be train to be a leader. Two aspects of leadership behavior :
- Leadership function
- Leadership styles
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8.5 LEADERSHIP STYLES :
Characteristic of Manager:
- Warmth and has special rapport with subordinates.
- Respect, sensitivity to other’s needs and mutual trust.
Developed by Robert Blake and Jane Mouton. It concern for both employee-
oriented and task oriented styles of leadership to be practiced simultaneously.
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The Managerial Grid
High ( 1.9) (9.9)
Concern
For people
5.5
(1.1) (9.1)
1.9 Country club management Full attention to people’s need but low
concern for production.
5.5 Middle of the road Moderate concern for people and production
9.1 Autocratic/ authoritarian/ Task High concern for production and low
management concern for people. Leaders want work
schedule to be followed at all costs.
( Autocratic)
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8.7 CONTINGENCY APPROACH/ SITUATIONAL APPROACH
Path goal Model – By Robert J. House Life – Cycle theory or situational approach
( by Paul Hersey and Kenneth Blancard)
Leader : Leader :
- Make valued or desired - Must change style of leadership
rewards. according to level of maturity of employees
- Clarify to employees the and demands of situation.
kind of behavior
- Behavior will contribute to
employees satisfaction.
- Increase goal attainment
- Clearly defines job
requirements, provide
training, assist employees.
Source for rewards. E.g leaders give
directive, supportive, participative
and achievement oriented.
Employees attributes ability, open
minded, self control and experience.
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Path goal theory will enable managers to influence their subordinates by :
a) Activating subordinates needs for rewards over which the leader has
control e.g A leader explaining to employee how they can qualify for
overtime pay.
c) Making the path to rewards easier through coaching and direction. E.g
training, helping them to reaching goals.
Developed by Hersey and Kenneth Blanchard. This theory says that a leader
should change his style of leadership according to the level of maturity of his
employee and the demands of situation of the situation.
high
Phase 3 Phase 2
Phase 4 Phase 1
Low
Low High
Task Behavior
Maturity Immature
High Moderate Low
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The diagram shows the relationship between :
3. The level of task maturity the followers ( employees) show towards achieving
specific goals ( tasks or functions) that the leader wants accomplished.
Maturity means :
1. A desire for achievement.
2. The willingness and ability to accept responsibility
3. The education/ experience and skills relevant to particular
tasks.
Explanation :
Leader use one way communication. Defines the goals and roles of employees
and tell what, how and where to do task. Employee lack of task relevant
maturity. E.g employee relatively new and in experiences.
Employee are learning to do the job. High task relationship is needed because
employee lack of experience and skills. Managers provide high level of
emotional support and encouragement to develop trust and confidence .
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ACTIVITY
2. If you a boss in any organization, what leadership style you may practice?
REFERENCES :
1. Robert Blake and Jane S. Mouton, The managerial grid III,1985 Houston : Gulf
Publishing.
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CHAPTER NINE OVERVIEW
MOTIVATION:
9.0 DEFINITION
Learning objectives :
1. Explain the concepts of motivation and its significance in the managerial process.
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9.0 DEFINITION :
Search behavior
2. Increase your employee expectation that their efforts will lead to effective
performance.
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There are three early views of motivation. They are :-
2. The Human Relation Model, which related to Elton Mayo and Hawthorne
studies.
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General expectations 1.People can 1. Sharing 1.Expanding
tolerate work if information with subordinates influence
pay is decent and subordinate and self direction and self
boss is fair. involving them in control will lead to
routine decisions direct improvement.
2. If tasks are will satisfy their 2. Work satisfaction
simple, people are basic needs to may improve as a ‘ by
closely controlled belong and to feel product” of
they will produce important. subordinates making
work that is up to full use of their
standard. resources.
b) Process theory
c) Reinforcement theory
B) PROCESS THEORY
Process where individuals give meaning to rewards that will allow them to
influence their behavior or process theory explain how individuals are
motivated or the steps that occur when individuals are motivated.
( Herzberg two factors theory/ hygiene theory)
C) REINFORCEMENT THEORY
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Introduced by Abraham Maslow. He states that all people possessed a set of five
needs in them. These needs are arrange in a hierarchical order . They are the
lower order needs and the higher order needs.
Self-esteem needs
Social needs
1. Physiological needs
These need are our basic needs. These are for our survival. E.g food, water,
and shelter from environment
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It comprises needs for the development of one’s full potential or the
realization of one’s own potential.
a) HYGIENE FACTORS
b) SATISFIER FACTOR
Factors that led to extreme job Factors That Led to extreme job
dissatisfaction satisfaction
-Company policy and administration - Achievement
- Supervision - Recognition
-Relationship with supervisors/ boss - Work itself
-Working condition - Responsibility
-Relation with peers - Advancement
-Relation with workers - growth
-Status
-Security
Both hygiene and satisfier factors are two separate entities. The absence of one
does not affect the other. Hygiene factor only affects job dissatisfaction.
Improving them, such as changing the rule, policy on dress code in the work
place can make people less dissatisfied but does not contribute to job satisfaction
or motivate the employees to increase their work effort.
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The factors that will contribute to employee’s satisfaction will be the satisfaction
factor. Therefore, the managerial implications associated with the two factor
theory are:
To motivate, managers need to turn their attention away from hygiene factors and
focus on improving satisfier factors.
This theory was developed by Douglas Mc Gregor. This theory describes the
views or perception of managers with regard to their employees.
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Theory T is optimistic view. To ensure high performance, managers need only to
apply the participative style of leadership, where employees are allowed more
participation, freedom and responsibility in their work. Theory Y manager will
delegate the authority and allow employees to participate in decision making.
Greater job autonomy and task-variety is offered to employees.
ACTIVITY
REFERENCES :
1. Petri, H.L. (1990), Motivation, Theory, Research and Application 3rd edn,
Belmont,C.A: Wadsworth Publishing.
2. Holt. David H., Management, Principles and Practices, 3rd edn. Prentice
Hall, New Jersey,1993.
3. Schermerhorn, John R., Management for Productivity, 2nd edn, John Wiley
and Sons.
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CHAPTER TEN OVERVIEW
COMMUNICATION
1. DEFINITION OF COMMUNICATION
4. CHANNELS OF COMMUNICATION
6. OVERCOMING BARRIERS
Learning Objectives :
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COMMUNICATION
10.0 DEFINITIONS :
The process by which people seek to share meaning via the transmission of
symbolic messages.
Process of sending and receiving messages among individuals and groups called
interpersonal communication.
Convey information
Giving instruction/ commanding action
Persuading or influencing change
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Managers is considered effective in his instruction when employees acts
according to instructions.
Noise Noise
Sender encording message decording Receiver
Medium
Noise
Feedback
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10.3 FORMAL COMMUNICATION
Information flows around organization whether or not they try to control it.
a) Vertical communication:
Downward- In the form of instruction and information e.g policies,
procedures, rules, work schedules.
b) Lateral communication
Horizontal communication
- at the same level.
INFORMAL COMMUNICATION
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10.4 LEVEL OF COMMUNICATION
1. Intrapersonal communication
Between you and god
2. Interpersonal communication
Deals with communication between people usually face to face.
3. Group communication
Relates to the interaction of people in a small groups, usually in
decision making setting.
4. Organizational communication
Occurs in large cooperative networks and include virtually all aspects
of both interpersonal and group communication.
5. Mass Communication
Deals with public communication . Received by or used by large
number of people ( postal service, internet etc)
2. Manageability
4. Motivation
5. Team spirit
6. Crisis preparation
7. Participative staff
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10.6 Improving The Comunication Process
1. Poor listening
2. Semantic
Certain words may be interpreted differently by different people.
3. Filtering
Alteration of information to make it interesting, positive and acceptable to
the receiver.
5. Noise
Factor interferes, confuse or disturb the messages from reaching the
receiver.
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10.8 OVERCOMING COMMUNICATION BARRIERS
1. Obtain feedback
Ask question, repeat message, visit site.
3. Recognized emotions
Empathy
5. Avoid noise
Identify it cause or sources.
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ACTIVITY :
REFERENCES :
1. Holt. David H., Management, Principles and Practices, 3rd edn. Prentice
Hall, New Jersey,1993.
2. Schermerhorn, John R., Management for Productivity, 2nd edn, John Wiley
and Sons.
3. Stoner, J.A.F., Freeman, Edward R., and Gilbert, Daniel Jr., Management,
6th edn, Prentice Hall, 1995.
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