bhm _lecture note week 1_ introduction
TRANSCRIPT
BHM 2041/2043/2046BHM 2041/2043/2046Basic Economics, Basic Economics,
Accounting & Accounting & Management Management
Dr. Arnifa Haji AsmawiDr. Arnifa Haji AsmawiFOM, MMUFOM, MMU
44
Key Realities In Key Realities In ManagementManagement
The only certainty today is The only certainty today is change
Speed, teamwork and flexibility Speed, teamwork and flexibility
Customer-centricityCustomer-centricity
Continuous improvement and lifelong Continuous improvement and lifelong learninglearning
55
Learning ObjectivesLearning Objectives1.1. Define the basic components of managementDefine the basic components of management
2.2. Identify the basic skills of effective managementIdentify the basic skills of effective management
3.3. Explain the role of managersExplain the role of managers
4.4. Explain the various management theories Explain the various management theories
5.5. Understand what management is all about Understand what management is all about
66
Definition of Management ?Definition of Management ?Attainment of organizational goals in an effective and efficient manner through
the four management functions: - Planning- Organizing- Leading - Controlling
77
The Process of Management The Process of Management
Resources
HumanFinancial Raw MaterialsTechnologyInformation
OrganizingAssign responsibility
for task accomplishment
LeadingUse influence to
motivate employees
PlanningSelect goals and ways to attain
them
ControllingMonitor activities
and make correction
Performance Attain goalsProductsServicesEfficiency Effectiveness
Input Management Function Output
88
What is an organization?What is an organization?
A social entity that is goal directed and A social entity that is goal directed and deliberately structured.deliberately structured.
99
Characteristics of an Characteristics of an Organization Organization
Source: Robbins & Coulter (2007)
1010
Effectiveness and Efficiency in Effectiveness and Efficiency in Management Management
Source: Robbins & Coulter (2007)
1111
The Four Functions of The Four Functions of Management Management
Planning Organizing Leading Controlling
Defining goals, establishing strategies and developing sub-plans to coordinate activities.Decides tasks and use of resources
Determining what needs to be done and how it will be done and who is to do it. Involves assignment of tasks into departments and allocation of resources across organization
Directing and motivating all involved parties and resolving conflicts
Monitoring activities to ensure that they are accomplished as planned. Determining whether the organization is on target towards its goals. Making corrections as necessary
Achieving the
organization’s goals and
objectives
1212
Who is a manager?Who is a manager?An organizational member who
integrates and coordinates the work of others
1515
First-line Managers
the lowest level of management. manage the work of non-managerial employees train non-managerial employees encourage, monitor and reward performance e.g. sales supervisors, accounting supervisors
MiddleManagers
manage the work of first-line managers. set objectives aligned with top management goals and plans plan and allocate resources coordinate departments and divisions within company e.g. General Manager, Accounting Manager
Top Managers
create organization vision and mission establish plans and goals that affect the entire organization create positive organizational culture monitor internal and external business environment e.g. CEO, President, Managing Director
Types of Managers Types of Managers (Vertical)(Vertical)
1616
Relative amount of time that Managers spend on the four managerial functions
Middle Managers
Top Managers
First-line Managers
Planning Organizing Leading Controlling
1717
Types of Managers Types of Managers (Horizontal)(Horizontal)
Functional Managers
Manage departments performing a single functional task. e.g. sales manager, finance manager, accounting manager.
GeneralManagers
Responsible for several departments with different functions. e.g. general manager of a department store, project manager.
1818
Management SkillsManagement Skills Conceptual skills
Ability to see the organization as a whole and the relationship among its parts.
Human skills Ability to work with and through other people and to work effectively as a group member
Technical skills Understanding of and proficiency in the performance of specific tasks
1919
The Skills Required of the Different Types of The Skills Required of the Different Types of ManagersManagers
Middle Managers
Top Managers
First-line Managers
Non-Managers
Conceptual
Skills
Human Skills
TechnicalSkills
2020
Managerial RolesManagerial RolesInformational Interpersonal Decisional
1. Monitor
2. Disseminator
3. Spokesperson
1. Figurehead
2. Leader
3. Liaison
1. Entrepreneur
2. Disturbance handler
3. Resource allocater
4. Negotiator
2121
Management TheoriesManagement Theories
The evolution of management theories The evolution of management theories is due to three factors.is due to three factors.
1. Social Forces2. Political Forces3. Economic Forces
2222
Four Approaches to Management Four Approaches to Management TheoriesTheories
The Classical ApproachThe Classical Approach
The Behavioral/Humanistic ApproachThe Behavioral/Humanistic Approach
The Management Science ApproachThe Management Science Approach
The Modern ApproachThe Modern Approach
2323
The Classical ApproachThe Classical Approach Scientific ManagementScientific Management
Bureaucratic OrganizationBureaucratic Organization
Administrative PrinciplesAdministrative Principles
2424
Pioneers - Fredrick Winslow Taylor, Frank and Lillian Gilbreth
Careful study of individual work situation Precise work procedures developedPrecise work procedures developed Putting the right person on the job with Putting the right person on the job with
the correct tools and equipmentthe correct tools and equipment Having a standardized method of doing Having a standardized method of doing
the job.the job. Providing an economic incentive to the Providing an economic incentive to the
workerworker.. 24
2525 25
Bureaucratic Organization Max Weber Max Weber
Systematic approach to management Systematic approach to management and looked at the organization as a and looked at the organization as a wholewhole
2727
Founder - Henri FayolFounder - Henri Fayol
Believed that the practice of management Believed that the practice of management was distinct from other organizational was distinct from other organizational functions functions
Developed fourteen principles of Developed fourteen principles of management management
that applied to all organizational situationsthat applied to all organizational situations27
2828 28
1. Division of work.
2. Authority.
3. Discipline.
4. Unity of command.
5. Unity of direction.
6. Subordination of individual interest to the interests of the organization.
7. Remuneration.
8. Centralization.
9. Scalar chain.
10. Order.
11. Equity.
12. Stability of tenure of personnel.
13. Initiative.
14. Esprit de corps.
2929
The Behavioral/Humanistic The Behavioral/Humanistic ApproachApproach
Human Relations PerspectiveHuman Relations Perspective
Human Resources PerspectiveHuman Resources Perspective
3030
Human Relations Perspective Human Relations Perspective Hugo Munsterberg
Role of psychologist in industry Study jobs & the suitable people Identify psychological work conditions Devise strategies to influence employees
Mary Parker Follet
Importance of human behavior in shaping management style Coordination –key to effective management coordinate and harmonize group effort best decisions are by those closest to the situation integration process- to solve conflicts
Elton Mayo Hawthorne Experiments productivity increased because someone was paying
attentionImprovement in productivity due to social factors (morale,
group relationship, leading, communicating)
3131
Human Resources Perspective Human Resources Perspective Chester Barnard
Two primary functions of managers:Establish and maintain communication systemEstablish objectives of organizations and motivate employees
Theory on authority- authority flows from the ability of the subordinates to accept or reject an order
Abraham Maslow
The Hierarchy of Human NeedsPeople will perform well if work provides them with opportunities to satisfy their needs
Douglas McGregor
Theory X and Theory Y of human behavior Theory Y is a more realistic view of workers- employees will exercise self-control and will contribute to organizational goals when given the opportunity.
3333
McGregor’s Theory X and Theory YTheory X Assumptions Theory X Assumptions• Dislike work-will avoid it• Must be coerced,
controlled, directed or threatened with punishment
• Prefer direction, avoid responsibility, little ambition, want security
• Do not dislike work• Self-direction and self-
control• Seek responsibility• Imagination, creativity
widely distributed• Intellectual potential only
partially utilized.
3434
Management Science Management Science ApproachApproach
Characteristics:Characteristics: Focus on decision making Use of economic decision criteria Use of mathematical models Use of computers in data processing
3535
The Modern ApproachThe Modern ApproachLooks at the dynamics and responses Looks at the dynamics and responses
of anof anorganization facing business challengesorganization facing business challenges
Systems approach Contingency approach Learning organization
3636
System DefinedSystem Defined– A set of interrelated and interdependent parts A set of interrelated and interdependent parts
arranged in a manner that produces a unified arranged in a manner that produces a unified whole.whole.
Basic Types of SystemsBasic Types of Systems– Closed systemsClosed systems
Are not influenced by and do not interact with their Are not influenced by and do not interact with their environment (all system input and output is environment (all system input and output is internal).internal).
– Open systemsOpen systems Dynamically interact to their environments by Dynamically interact to their environments by
taking in inputs and transforming them into outputs taking in inputs and transforming them into outputs that are distributed into their environments.that are distributed into their environments.
36
3838
The Contingency ApproachThe Contingency Approach Contingency Approach DefinedContingency Approach Defined
– Also sometimes called the Also sometimes called the situational situational approach.approach.
– There is no one universally applicable set There is no one universally applicable set of management principles (rules) by of management principles (rules) by which to manage organizations.which to manage organizations.
– Organizations are individually different, Organizations are individually different, face different situations (contingency face different situations (contingency variables), and require different ways of variables), and require different ways of managing.managing.
38
3939
Popular Contingency VariablesPopular Contingency Variables
39
Organization sizeOrganization size
Routineness of task technologyRoutineness of task technology
Environmental uncertaintyEnvironmental uncertainty
Individual differencesIndividual differences
4040
Learning OrganizationLearning Organization An organization that learns and An organization that learns and
encourages learning among people.encourages learning among people.
Exchange of info Exchange of info knowledgeable knowledgeable workforceworkforce
Flexible organizationFlexible organization
4141
Benefits of Learning Benefits of Learning OrganizationOrganization
Greater Motivation
Flexible workforceMore creative peopleImproved social interaction
Better teamwork
Knowledge sharingInterdependency
Company benefits
Breakdown of communication barriersBetter customer relationsMore resourcesMore innovation and creativity