chapter 1: the scope of management 1 what is management? 2 art of getting things done through other...
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CHAPTER 1:THE SCOPE OF MANAGEMENT
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WHAT IS MANAGEMENT?
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• Art of getting things done through other people
Mary Parker Follet
• Field of knowledge that seeks to systematically understand why and how men work together to accomplish objectives and make these cooperative systems more useful to mankind
George R. Terry
• The process undertaken by one or more individuals to coordinate the activities of others to achieve results not achievable by one individual acting alone
Donnelly
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WHAT IS MANAGEMENT?
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• The art of knowing what you want to do and then seeing that it is done in the best and cheapest way
F. W. Taylor
• A process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources.
Lubber Gullick
• An art because like any of the arts, it requires three components: vision, knowledge and successful communication
Henri M. Boettinger
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BASIC MANAGEMENT CONCEPT
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Basic Management Concept
Functional Concept
‘Getting Things done Through
Others’ Concept
Leadership and Decision-making
Concept
Productivity Concept
Universality Concept
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FUNCTIONS OF MANAGEMENT
• Planning, Organizing, Leading, Controlling
Newman and Summer
• Planning, Organizing, Staffing, Directing, Coordinating, Reporting, Budgeting
Luther Gullick
• Decision Making, Organizing, Staffing, Planning, Controlling, Communicating, Directing
Warren Haynes and Joseph Massie
• Planning, Organizing, Commanding, Coordinating, Controlling
Henri Fayol
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FUNCTIONS OF MANAGEMENT
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Planning Organizing
Leading Controlling
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LEVEL OF MANAGERS
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Top Managers
Middle Managers
First Line Managers
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Top Managers
Middle Managers
First Line Managers
SUBORDINATE
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ROLES OF MANAGERS
• Figurehead Role• Leader Role• Liaison Role
Interpersonal Roles
• Monitor Role• Disseminator Role• Spokesperson Role
Informational Roles
• Entrepreneur Role• Disturbance Handler Role• Resource Allocator Role• Negotiator Role
Decisional Roles
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MANAGERIAL SKILLS
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Technical Skills
Human Skill
Conceptual Skill
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MANAGEMENT LEVELS
MANAGERIAL SKILLS
TOP MANAGERS
MIDDLE MANAGERS
FIRST LINE MANAGERS
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Technical
Skills
Human Skills
Human Skills
Human Skills
Conceptual Skills
Conceptual Skills
TechnicalSkills
Conceptual Skills
Technical
Skills
(10%)
(40%) (20%)
(40%)40%)
(60%)(30%)
(20%)
(40%)
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OTHER SKILLS
Basic KnowledgeManagement
Skills
Communication Skills
Decision Making Skills
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PLANNING
ORGANIZING
LEADING
CONTROLLING
MANAGERS PERFORM
TO ACHIEVE ORGANIZATIONAL
STATED OBJECTIVES
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IMPORTANCE OF MANAGEMENT
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• Critical element in the economic growth of the country
1
• Essential in all organized effort
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• Dynamic, life giving element in every organization.
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MANAGEMENT – UNIVERSAL OR SCIENCE
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Universal
Manager easily transfer his skills and knowledge
Manager applies general principles
to all types of organization
Science
Management is studied and tested
systematically
Theories can guide managers
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CHARACTERISTICS OF
MANAGEMENTPUBLIC SECTOR PRIVATE SECTOR
Aim / Objective To provide a service to the community
To ensure maximum utilization of resources in generating profits
AccountabilityTo the public in general, especially when the budget is debated in parliament
To the shareholders of the company
Performance evaluation
The achievement of a better quality of life
The profits earned through market share
Incentives offered•Fixed salary scales and rigid promotional procedures
•Enjoy job security
Salary increases and promotion prospects closely linked to performance
Union involvement in decision-making A high level of involvement
Traditionally little or no involvement but moves are being made to increase worker participation
DIFFERENCES IN MANAGEMENT BETWEEN PUBLIC AND PRIVATE
SECTORS
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CHAPTER 2:SOME SCHOOLS OF MANAGEMENT
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CLASSICAL
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• Henri Fayol
Administrative Management
• Frederick Winslow Taylor
Scientific Management
• Max Weber
Bureaucratic Management
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ADMINISTRATIVE MANAGEMENT-AREAS IN BUSINESS ACTIVITIES-
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•Producing and manufacturing of products
Technical
•Buying raw materials and selling manufactured goods
Commercial
•Getting the capital necessary for business
Financial
•Recording and taking stock of costs and profits
Accounting
•Planning, organizing, commanding, coordinating, controlling
Managerial Function
•Protecting the assets of the company
Protecting
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ADMINISTRATIVE MANAGEMENT-PRINCIPLES OF MANAGEMENT-
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PRINCIPLES OF MANAGEMENT
Division of work Authority
Discipline Unity of Command
Unity of Direction Subordinate of individual interests to general interest
Remuneration Centralization
Scalar Chain Order
Equity Stability of tenure of personnel
Initiative Esprit de corps
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SCIENTIFIC MANAGEMENT
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Contribution
Time and Motion Studies
Differential Pay
Reorganization of Supervision
Recruitment and Training
Friendly Cooperation
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BUREAUCRATIC MANAGEMENT
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Division of labour
Hierarchical Structure Meritocracy
Rules Impersonality
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HUMAN RELATIONS SCHOOL- HAWTHORNE STUDIES -
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HawthorneStudies
The Test Room Studies
Interviewing Studies
Observational Studies
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BEHAVIOURAL
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• Motivation theory• Human needs • Human behaviour• Hierarchy of need
Abraham Maslow
• Theory X and Y
Douglas Mc Gregor
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MASLOW’S NEEDS HIERARCHY
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Selfactualization
Esteem
Affiliation
Security
Physiological
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THEORY X AND THEORY Y
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• My employees dislike work and will try to avoid it if possible
• My employees want and need me to provide direction
• I am responsible for getting my employees to do as much work as possible
Theory X Leader
• Most employees like to work and achieve something
• I can count on my employees to be self-directed and work toward the organization’s objectives
• My employees are eager to take on responsibilities at work
Theory Y Leader
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SYSTEMS
InterlockingSub-systems
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MANAGEMENT SCIENCE
• Also known as Operations Research
• Applies scientific methods to analyze and solve management problems
• Can solve specific problems objectively with greater precision
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CHARACTERISTICS FOR EFFECTIVE MANAGEMENT SCIENCE
• The problems should not be too broad or indefinite
• The problems should consists of tangible measurable factors
• The problems should offer opportunity for decision between alternative
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CONTINGENCY/SITUATIONAL
• Emerged from real life experience of managers
• The main determinants are related to the external and internal environment of an organization
• Three major elements:– Environment– Management concept– Contingent relationship
between them
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