mng201_study units 1 to 3

8/13/2019 MNG201_study Units 1 to 3

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GENERAL

MANAGEMENTMNG2012009

Revision SummaryNotes

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Taken from the UNISA stuy !uie an the "res#ri$e te%t$ook&Smit, PJ et al. Management principles. 4thedition 2007


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MANAGEMENT

STU'( UNIT 1)*A+TER 1

T*E NATURE ,- GENERAL MANGEMENT

Introu#tion to !enera. mana!ement

Managers have to deploy the basic resources of an organization, to help

it achieve its goals

Managers must activate and guide the organization.

The nature of Mana!ement

Managers combine, allocate, co-ordinate and deploy resources / inputs

in such a way that the organisations goals are achieved as productivelyas possible.

All managers engage in certain interrelated activities to achieve their

desired goals. This entails fundamental management functions

- !lanning- "rganising- #eading- $ontrolling

%nowledge resources& human, financial, physical ' information.

(ee table ).) for e*amples.


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+igure ).& The interactive nature of the management "ro#ess& dentifyactivities

'efinition of Mana!ement

The process of planning, organizing, leading ' controlling the resources

of the organization to be predetermined stated organizational goals asproductively as possible.

+.annin!& Management function that determines the organizations

vision, mission and goals.

,r!anisin!involves developing a framewor / organizational structure

to indicate how ' where people and other resources should be deployedto achieve the goals.

Leain! directing the human resources of the organization '

motivating them in such a way that their actions are aligned with

predetermined goals ' plans. )ontro. monitor performance ' action, ensuring they conform to

plans.

"rganisational design the process whereby managers match the

organizations structure to its strategies.

Mana!ement .eve.s

Managers are classified into 0 categories&

1)2 according to their level in the organization,

102 function / specialist area of management for which they areresponsible.

!lanning 1!art 2

Managers determine the organisations vision, mission, andgoals and decide on a strategy to achieve them

"rganising 1!art2

Managers groupactivities together,establish authority,

allocate resources anddelegate

$ontrolling 1!art 32

Managers monitorprogress and tae

corrective steps to reachthe mission and goals

#eading 1!art 32

Managers direct and motivate members of the organization toachieve the mission and goals


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T,+ MANAGEMENT

#ead the organization

+inal authority ' responsibility

4esponsible for organization as a whole

5etermines the vision, mission, goals ' overall strategies

#ong term planning

5esigning organizations broad structure

#eading ' controlling

nfluences corporate structure

MI''LE MANAGEMENT

4esponsible for specific departments

mplements policies, plans ' strategies

Medium ' short term planning, organizing, leading ' controlling

Monitor environmental influences

L,/ER -IRST LINE MANAGEMENT

(hort term planning

mplement plans of middle management

Apply policies, procedures and rules to productivity

!rovide technical assistance

Motivate subordinates

5ay to day goals

Areas of Mana!ement

Managers can be categorized in terms of the activity they manage

6eneral management

Mareting

+inancing

!roduction / operations 7uman resources

!ublic relations

Mana!ement Ro.es 1$enry %int&berg'

Inter"ersona. ro.e

+igurehead, leader, relationship builder

Informationa. ro.e

nvolves monitoring / gathering info to improve communication


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'e#ision makin! ro.e

8ntrepreneur

5eal with and solve problems

4esource allocator

9egotiator

The overlapping role distribution of managers 1according to Mintzberg2

Mana!ement Ski..s

Managers at different levels need different sills to perform effectively

)on#e"tua. ski..s& the mental ability to view the operation of the

organization ' its parts holistically. Thining 'planning abilities.

Inter"ersona. ski..s& ability to wor with people.

Te#hni#a. ski..s& ability to use nowledge / techni:ues of a specificdiscipline to attain goals.

Management $harter nitiative 1M$2

(ets generic standards for management

n (.A. the 9ational ;ualifications +ramewor 19;+2, through the wor ofstandards generating bodies 1(6ob e*perience

3ariety of assignments

'e#isionmakin! ro.e

8ntrepreneur!roblem solver

Allocator of resources

9egotiator

Inter"ersona. ro.e

+igurehead#eader

4elationshipbuilder

Information ro.e

MonitorAnalyser

(poesperson


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Mana!ement an ,r!anisationa. +erforman#e

+undamental 8conomic !rinciple

- achieve the highest possible satisfaction of needs with scarceresources.

The S#o"e of Mana!ement

#arge


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Mana!eria. #a"ita.ism

A team effort to achieve success and have an overall financial gain.

/hy stuy mana!ement theory4

A theory is built in stages&

6athering data 1e.g. what managers do2

"rganizing it into categories 1!"#$2

7ighlighting similarities ' differences

8*plaining what causes what and under what circumstances

Unerstanin! the ifferent mana!ement theories

A management theory is a group of assumptions advanced in order toelucidate the productivity issue

8nvironmental forces such as social, economic, technological, political,

international and ecological forces are responsible for the evolution ofmanagement theory.

Si!nifi#ant eve.o"ments that have an effe#t on mana!ers anor!ani5ations

Advances in info technology

6lobalization of the maretplace ncreasing predominance of entrepreneurial firms

The growing importance of intellectual capital

Theories of Mana!ement NB! KN "##

)LASSI)AL A++R,A)*ES

Management (chool /approach

%ey ideas 4esearchers

). (cientific

management

Analyse specific tass

of worers

Time and motion study

Money motivated

worers

!iecewor system

@ays to improve the

performance ofworers

@or simplification

!roductivity at shop-

+rederic. @. Taylor

+ran ' #illian6ilbreth


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floor level

$hart showing relation

between wor planned' completed ' timeelapsed

!rinciples of efficiency

7enry. #. 6antt

0. !rocess / Admin Approach

Managing comple*

organizations

+ayol& interested in

admin side ofoperations

basic functions of

admin& planning,organizing,

commanding, co-ordinating, controlling

management is a sill

something we canlearn when principlesare understood

) principles of

management pg

5isadvantages

formal authoritypostulated

7enry +ayol

.


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7awthorne effect

managementsconcern for theirworers well being

8mployees are

motivated by socialneeds than economicneeds


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!84T/$!M,regression analysis1!lanning ' $ontrol2

),NTEM+,RAR( A++R,A)*ES

Mana!ementa""roa#h

6ey ieas Resear#her

(ystemsApproach

"rganization viewed as a group

of interrelated parts with a singlepurpose& to remain ine:uilibrium

3iew organization as a whole

Action of one part influences

another "pen system perspective

elements- input 1resources2- transformation processes- output 1prods / services2

- feedbac 1reaction from

environment2

8:uifinality more than ) way to

reach the same goal

#uab


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managed

$reate an organization

committed to continuousimprovement

!hilosophy of management

driven by competition 'customer needs ' e*pectations

$ustomer employees,

suppliers, consumers

ntrinsic motivation for learning

Fsed as a strategic weapon to

build competitive advantage

(.A.8*cellenceModel

5eals with performance

e*cellence in organizations

7olistic approach

The above model is based on thefollowing assumptions&


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$ustomer satisfactionG

!eople satisfactionG

(upplier and partnership

performance.

The model provides criteria for all ))elements to enable organizations toassess themselves against the criteriaof performance e*cellence. The self-assessment process allows anorganization to identify its&

(trengths

Areas in which improvements

can be made

This model culminates in plannedimprovement actions.

(i* (igma ;uality initiative, focuses on

defects per million.

!otential :uality nown ma*

possible value added per unit ofinput

Actual :uality current value

added per unit of input

5iff between 0 waste +ocuses on&

- defect prevention- cycle time reduction- cost savings

5efined at different levels&

- as metric 15!M"2- methodology 15MA$ model2- as a management system

Methodology focuses an organizationon&

Fnderstanding ' managing

customers re:uirement

Aligning ey business processes

to achieve those re:uirements

Ftilizing rigorous data analysis to

minimize variation

5riving rapid ' sustainable

improvement

Motorolantroduced


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5MA$ model

'efine the goals of the improvementactivity. +or e*ample, at theoperations level, a goal might be toincrease the throughput of aproduction department.

Measure the e*isting system.8stablish valid and reliable metrics tohelp monitor progress towards thegoal1s2 defined at the previous step.

Ana.yse the system to identify waysto eliminate the gap between thecurrent performance of the system orprocess and the desired goal.(tatistical tools should be used.

Im"rove the system.


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ndustry learning continuous

%nowledge shared

4e-engineering

;uantum leap

Assumescurrentprocessirrelevant

t doesntwor, its

broen, forgetit, start overLL

8ntails a fundamental

reappraisal of the wayorganisations operate

4einventing e*isting

organizations ' not merelychanging them in incrementalsteps

+ocus on current technology

4ethining ' redesigning

(peed, :uality of service,

overhead costs

ntegrates ey drivers

- people- processes- technology- infrastructure

7omer ' $hampy

)urrent an near future mana!ement rea.ities

n the 0IIIs, the competitive advantages of the past have little meaning. Thenew source of sustainable, competitive advantage available to organisations

has people at its centre their nowledge, creativity and talent. $ompetitorscan emulate both capital and technological advantage and the human asset isintangible and very difficult to imitate. Managers should understand how thecurrent and near future environments differ from previous onesG how todaysorganizations differ from previous onesG and the impact of both of the aboveon management.

$urrent ' near future environmental revolutionary 1unpredictable2

1discontinuous change2

"utsourcing fle*ible

%nowledge managed

nterim management best manager manages specific pro?ects

$orporate governance.


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MANAGEMENT

STU'( UNIT 7)*A+TER 7),N)E+TS ,- S(STEMS A++R,A)* IN MANAGEMENT

1)2 The organisation as a sub-system of its environment

'efinition& (ystem& a set of interrelated elements functioning as awhole.

-i!ure 7&1 A systems "ers"e#tive of an or!anisation

The transformation process is carried out by the organisation as aspecific sub-system of its environment.

102 The systems approach in management

Transformation or"ro#essin! of in"uts

%anufacturing andoperational systemsTechnology8*pertisenformation

%anagement process!lanning"rganising#eading$ontrolling

"utputs to theenvironment

!roducts(ervices>ob opportunitiesand others

nputs from theenvironment

7uman 1labour2+inancial 1capital2!hysical 1rawmaterials2nformation

1nowledge 'e*pertise2


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$losed system self supporting, e*ists independently of an

environment

"pen system dependent on the environment in which it

operates

- the environment is dependent on thesystem

- specific interaction between system 'environment

(ub system system within a system

(ystem approach implies the is an open system

(ynergy whole is greater than the sum of its parts.

1if various functions in the co-operate as sub-systems, they willbe more productive than if they operated individually.2

8ntropy 1process of systems disintegration2 opposite to synergy.

The effect of the interrelationship between environmentvariables is that a change in one variable may cause a changein other variables.

The #om"osition of the mana!ement environment


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The management environment is all those factors both inside and

outside the that may influence the continued and successful e*istence ofthe.

The numerous environment variables that influence the environment are

classified into sub environment.

T*E INTERNAL ,R MI)R, EN3IR,NMENT

The micro environment consists of the organisation itself. Management hasalmost complete control over this environment that consists of the followingvariables&

1)2 the mission8 !oa.sand o$e#tives and strate!iesof the G102 the organisation and its mana!ementG12 the resour#esof the organisationG and12 the al #u.ture&

T*E MAR6ET ,R TAS6 EN3IR,NMENT

The market environmentsurrounds the and comprises&

1)2 #onsumers, their needs, purchasing power and behaviourG102 su"".iers of materials, capital and labourG12 intermeiariessuch as wholesalers and retailers, commercial agents and

broers, and financial intermediaries such as bansG12 #om"etitors including new entrants, e*isting competitors, availability of

substitute products or services, and the bargaining power of clients,consumers, suppliers

12 La$our unionswhich deal with the supply of labour.

T*E MA)R, EN3IR,NMENT

The ma#ro environment e*ists outside the and comprises si* subenvironment 1mega trends2&

1)2 a te#hno.o!i#a.environment, responsible for accelerating change andinnovation and creating opportunities and threats in the environment

102 the e#onomi#environment, which is also responsible for change in theenvironment because of changes in the economic growth rate, levels ofemployment, consumer income, the rate of inflation and the e*changerateG


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12 the so#io#u.tura. environment which comprises people such asemployees and consumers who are influenced by economic andtechnological variable and cultureG

12 the e#o.o!i#a. "hysi#a. environment which involves the naturalresources from which the obtains its raw materials and the

environment into which the discharges its wasteG12 the "o.iti#o !overnmenta. environment which consists of eh

government and its influence on the such as political ris, laws andgovernment e*penditureG and lastly

1H2 the internationa. environment comprising the uni:ue environmentfactors of the countries with which the has business relations.

Managements primary tas is to identify, evaluate and utilize opportunities inthe maret, and to develop its strategy to deal with competition.

Main characteristics of the management environment

nterrelatedness of environment factors

ncreasing instability

8nvironment uncertainty

The comple*ity of the environment

8nvironment is becoming unpredictable

The market or task environment

). The maret !eople who have needs to be satisfied and the financial

means to satisfy them.


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). possibility of new entrants / departures

0. bargaining power of clients ' consumers. bargaining power of suppliers. availability / lac of substitute products or services. 9umber of e*isting competitors

The weaer forces are, the better the chances of good performance1Michael !orter2

Management uses environment scanning and information management toobserve strengths and weanesses

Interfa#es $et


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Fnmeasurable ' causes uncertainty

4ate of change has a more profound effect on the environment

than the actual direction of change

change is therefore a process of continual innovation

0. Un#ertainty in the environmentis determined by the following&

the e*tent of change and

the level of comple*ity

The e%tent of #han!erefers to the degree of stability or instability inthe environment while the .eve. of #om".e%ityrefers to the relativenumber of variables in the environment.

(table N simple environment little uncertainty 1baeries2

(imple but dynamic environmentmoderate uncertainty1clothing manufacturer2

$omple* N stable environmentmoderate uncertainty 1Toyota2

$omple* N dynamic environment high level uncertainty

STA:LE e%tent of e%#han!e UNSTA:LE

. )rises in the environment can happen at any time and caninfluences. !olitical upheavals, the plunging of a countrys currency oran environment disaster are e*amples of this.


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