98166453-9-M-s-of-Management.pdf

8/20/2019 98166453-9-M-s-of-Management.pdf

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M’s of Management

Presented by: Marianne M. Custodio


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Management…

Terry &Rue

•A process or form of work that involves the guidance anddirection of a group of people toward organizational goals orobjectives.

Johnson &Stinson

•The process of working with & thru people to accomplishorganizational goals

Stoner

•The process of planning, organizing, leading and controlling the

efforts of organization members & of using all otherorganizational resources to achieve stated organizational goals.


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9 Basic Resources:

• Nine M’s of Management 1.Man/Manpower

2.Money

3.Materials4.Machines

5.Methods/Procedures

6.Markets

7.Minutes/Time Management8.Motivation/Morale

9.Measurement


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1. Men/ Manpower

• The ―most important‖ resource People who work in business

enterprises.

The success or failure of any businessdepends on them.

The 8M’s are useless if man does not

know how to use them properly.


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1. Men/ Manpower

• The ―most important‖ resource Men are activating resource of the organization

and categorized into two groups such as:

Employees

Managers

Man is important in an organization and emerges

as:

As an economic unit

As a productive unit As a worker


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1. Men/ Manpower

• The ―most important‖ resource Without manpower, companies are unable to get

work done.

Untrained man can cause damage to goods and

services.

―Human Resource Management‖ is different from

―Personnel Management‖


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1. Men/ Manpower

• The ―most important‖ resource HRM vs PM

Factors HRM PM

People Involved All; from top

management torank & file

Mostly rank &

file

Hours of Work Full-time, part-time; flexitime

Full-time

Place of Work Formal &

InformalSetting

Formal setting:

office, factory,plant


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1. Men/ Manpower



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1. Men/ Manpower



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1. Men/ Manpower


Factors HRM PM

Strategies Objective &

Scientific; “TotalSystems”Approach

Subjective based on

management’s needs & values “Compartmentalized” Approach

Philosophy Humane;People: an

investment & aresource

Traditional, mainly for profit;People: an expense & a factor

of production


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2. Money

• The ―driving force‖ of business Generally accepted as payment for goods &

services and repayment of debts

A medium of exchange, a unit of account and a store

of value.From Juno

―Moneta‖, the

Goddess of

ancient Rome


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2. Money

• The ―driving force‖ of business Our present economic system: ―Money Economy‖

Money is important to an individual person,

equally it so to business organizations & the

government.

Every business enterprise of any nature & size

needs ―capital‖


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2. Money

• The ―driving force‖ of business Capital is wealth used in furtherproduction & stresses physicalfacilities without regard to their

money values.

Capital is money or values usedin business regardless of source.


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2. Money

• The ―driving force‖ of business

Administration & maintenance of financial assets.

Identifying and & trying to work around the various risks towhich a particular project may be exposed.

―closely monitoring the cash flow ‖

Inflow – money coming into a company

Outflow – record of the expenditure being made by

the company in various resources.


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3. Materials

• The ―inputs to production‖Basically, pieces required to make something else.

Can be anything: a finished product in its own right or an

unprocessed raw material.

Things needed in the creation of products.

Materials that are first extracted orharvested from the earth & divided

into a form that can easily betransported & stored, thenprocessed to produce semi-finishedmaterials


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3. Materials

• The ―inputs to production‖

field of management that deals with materials

Important principles

governing raw materials:

1. Proper Determination of amount ofraw materials needed.

2. Raw materials should be availableto ensure continuous production.

3. Raw materials should be procurablenot only from one source but from ano. of different sources.

4. There must be periodic inventory ofstocks.


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3. Materials

• The ―inputs to production‖

field of management that deals with materials

Important principlesgoverning raw materials:

5. The transportation of raw materialsfrom the source must be fast aswell as economical.

6. The raw materials must always beof the desired quality.


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4. Machines

• The aide to work simplification Any device that uses energy to perform

some activity.

A device having parts that perform or assist

in performing any type of work.

Derived from ―machina‖

Prior to the birth of the Industrial

Revolution, manufacturing was done

largely thru the use of human hands

aided by simple hand tools.

SimpleMachine

• Transforms thedirection ormagnitude of aforce withoutconsumingenergy.


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4. Machines

• The aide to work simplificationIndustrial Revolution & Machinery…

A Watt steam engine,the steam engine thatpropelled the IndustrialRevolution in Britain andthe world.

http://en.wikipedia.org/wiki/Watt_steam_enginehttp://en.wikipedia.org/wiki/Steam_enginehttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Steam_enginehttp://en.wikipedia.org/wiki/Watt_steam_engine


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4. Machines

• The aide to work simplification


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4. Machines


are technology & expertise deployed towards the

transformation process of input (resources) to output (end-

point objectives/products)

required by modern production—more efficient &

economical


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4. Machines


greatly reduces the need for human

sensory and mental requirements tocreate complex systems for a rapidly

expanding range of applications and

human activities.


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5. Methods/Procedures

• The technology/techniques of production

“There are 3 types of technology: primitive, intermediate & moderntechnologies” – E. F. Schumacher, 1973

Can also be systems, procedures &processes seamlessly put togetherfor the transformation of a raw

material to goods & services.


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5. Methods/Procedures

• The technology/techniques of production“theoretical knowledge of industry and the

industrial art”

“Human innovation in action that involves the generation

of knowledge & processes to develop systems that solveproblems & extend human capabilities.”

It is the total accumulation of tools, systems& work methods used collectively to

transform inputs into outputs


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6. Markets

• The ―transaction‖ in motion Any of a variety of different systems, institutions, procedures, social

relations & infrastructures whereby person’s trade, goods &

services are exchanged, forming part of the economy.

Transaction is the exchange of goods or services for money.

Markets allow any tradable item to be evaluated & priced.


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6. Markets

• The ―transaction‖ in motion

a. Financial markets

b. Futures markets

c. Currency marketsd. Money markets

e. Prediction markets

f. Stock markets

g. Bond market (credit, debt or fixed income market)


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6. Markets


Requirements of a market:

• People must need the product

• People must have the ability to purchase the

product• People must be willing to use their buying power

• Individuals must have authority to buy thespecific products.

Categories of a market:

• Consumer Market

• Organizational or Industrial Market


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6. Markets


field of management that deals with markets

An example of money market


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7. Minutes/Time Management

• Optimum time, with highest quality A set of principles, practices, skills, tools and systems that work

together to have more value out of time with the aim of

improving the quality of work.

Skills associated are: planning, prioritizing, goal setting, scheduling

and managing workload.Various means by which people effectively use their time & other closely

related resources in order to make the most out of it.

Efficiency is doing better what is already

being done. – Peter F. Drucker


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• Optimum time, with highest quality

P• Prioritize your time.

O• Organizing things you have to

accomplish regularly.

S• Streamlining things you may not like to

do but must do.

E

• Economizing things you should/like to

do, but not pressingly urgent.

C• Contributing by paying attention to few

remaining things that make a difference.

POSEC MethodInherent in the acronym

is Abraham Maslow’s

Hierarchy of Needs which

suggests that by attendingto one’s personal

responsibilities first, an

individual is better

positioned to shoulder

collective responsibilities.


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• Optimum time, with highest qualityThe BEST time is usually but not always the SHORTEST time

In individual careers, increased job performance &promotions may result.

All types of organizations- business, civic, school,

political and religious- may receive

productive, competitive & financial benefits.


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• Optimum time, with highest quality

―A Gantt chart is helpful in layingout the tasks associated with agiven project. It helps ensure thatthe project schedule is maintainedat a reasonable pace.‖

– Henry Laurence Gantt, 1921


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Pioneer Clinical Laboratory Inc.& Medical ClinicAll Rights Reserved 2008 32


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8. Motivation/Morale

• The ―secret weapon‖ of management ―Change equals Challenge‖ which is the source of motivation,

workplace efficiency & job security.

―Derived from ―motivate‖ meaning to move, impel or induce to act

to satisfy a need or want.‖ – Pefecto Sison, M.A.

Willingness to exert effort to achieve a goal or objective.― Getting people to contribute their maximum effort toward the

attainment of organizational objectives‖ – Carlos Lorenzana

Intrinsic inducement that propels an individual

to think, feel and perform in certain ways.

It is internalized & the most important yetelusive determinant of work behavior.

– Dr. Concepcion Martires


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8. Motivation/Morale

• The ―secret weapon‖ of management

Efficiency under worker responsibility

Management’s priority: GET THE JOB DONE!

Efficiency under command and control leadership

Management’s priority: CONTROL!

Decision-making responsibility &learning opportunity work together.


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9. Measurement

• The ―gauge‖ of effectiveness The score-keeping & in-process monitoring continuously with due

feedback to keep on-course on time.

Encompasses the assessment of performance and results achieved

by individual employees, groups of employees and entire organizations.

Determining the level of performance by judging the quality, quantity,timeliness and /or cost-effectiveness of the work against a set of standards.


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9. Measurement

• The ―gauge‖ of effectiveness Two basic parts of ICS:

1. Operational Procedures

2. Controls

CHALLENGE TO

MANAGEMENT:

Decide how much resource todeploy to create just sufficientcontrols to limit the possibility

of bad events occurring & tolimit the damage when they dooccur.


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Types of Controls:

1. Preventive Control

2. Detective Control

3. Reactive Control

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9. Measurement

• The ―gauge‖ of effectiveness

A large volume of laws & regulations now exist, specifyingstandards of conduct & controls that must be complied with

by organizations.


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There are no universally applied techniques &

principles to make management successful.

There are general approaches that enable managers

to effectively achieve their objectives.

Evolution of managerial thought is traditionally represented

by a number of schools & approaches that contributed the

development of managerial theory & practice.


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Evolution of Managerial Thought


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A group of people or scientists whoshare common characteristics ofopinion or outlook of a discipline.

Approaches tend to cover a more practicalaspect enabling managers to effectively run

their business & achieve organizational goals.

A set of methods, ideas or actions

intended to deal with a problem orsolution.


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The CLASSICAL SCHOOL – associated with the scientific

trends which emerged during the 19th & early 20th

centuries. This school includes:

First-line management analysis

(Scientific Management School), and

Comprehensive analysis of management (AdministrativeSchool)


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1.1 Scientific Management School

Frederick W. Taylor

Frank B. Gilbreth

Lilian E. Gilbreth

Harrington C. Emerson

Henry Laurence Gantt


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Father of Scientific Management

Made systematic study ofrelationships between people & tasks.

―Optimized task‖ = Reduced time a

worker spents on each task.

The Principles to Increase Efficiency


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Each element of a worker’s job is to be treated

scientifically.

Job specialization should be introduced to each job.Workers should be properly selected, trained &

developed.

The pillars of work are planning & scheduling.

Determined time & method standards should be

considered for each task.

Wage incentives have to be provided for all jobs.


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1. Managers often implemented only the increased

output side of Taylor’s plan:

They didn’t allow workers to share inincreased output.

Specialized jobs became very boring & dull.

Workers ended up distrusting scientific

management.

2. Workers could purposely under-perform;

3. Management responded with increased use ofmachine.


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Developed Time & Motion Studies

Used motion picture cameras to findthe most efficient & economical

motions for each task.

Time & Motion Studies:1. Break down each action into components.

2. Find better ways to perform each action.3. Recognize each action to be more efficient.


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Developed the GANTT Chart

The Gantt chart shows the start &finish dates of the terminal

elements & summary elements of

a project.

Gantt charts also serve as visuals to

estimate the degree of projectcompletion.


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―Setting organizational objectives‖

Proceeded with Taylor’s efficiencyprinciples.

Idea of ―strict‖ distinction between

line & staff roles in management.


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1.1 Scientific Management SchoolKEY POINTS:

The School focused on ―production control‖, where

observation, logic & analysis are the tools to improve

manual operations.

Scientific Management School Methodology

concentrated on the analysis of work content,

job specialization & systematic use of incentives to

increase the production volume & perfect employee’s

performance.


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1.2 Administrative School

Henry Fayol

Max Weber


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Fourteen Principles of ManagementDivision of Labor

Authority & Responsibility

Discipline

Unity of Command

Unity of Direction

General Interests Over Individual Interests

Remuneration

Centralization/ DecentralizationScalar Chain (Line of Authority)

Order

Equity

Stability of Tenure

Initiative

Esprit de Corps


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Introduced ―rational authority‖

Rational authority : “When an

organization w/ a formal structure

is managed on a rational basis, it

would be more efficient &

adaptable to changes.”

Rational authority = Bureaucracy


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1.2 Administrative SchoolBureaucratic Organizations’ key points: 1. Clear division & specialization of labor.

2. Hierarchy of authority & responsibility.

People know what is expected of them &

who reports to who.

3. Fair evaluation & reward of the staff.

4. Written rules, standard operating

procedures & norms are provided to

regulate all the processes within the

company.5. Management & the ownership of the

organization are separated.


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1.3 Behavioral School

George Elton Mayo

Abraham Maslow

Frederick Herzberg

Douglas McGregor


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1.3 Behavioral SchoolThe incompetence of the Classical School in questions of

human relations & behavior gave birth to the Behavioral Scho ol.

Two Branches:

a. George Elton Mayo

b. Abraham Maslow

a. Frederick Herzberg

b. Douglas McGregor


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Famous for his ―Hawthorne Experiments‖

which showed that scheduling, planning &

fair payments were not enough to provide

stable increase of organizational

productiveness.

Concluded that individuals are motivated by

social needs & good on the jobrelationships & respond better to work-

group pressure than to management

control activities.


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Famous for his ―Hierarchy of Needs‖

Expanded Mayo’s ideas of social needs;

observed that his patients were motivated

by a sequence of needs.


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KEY POINTS:

The theorists believed that managers should take

care of their employees. Providing high level

of care, managers get high level of staffsatisfaction.

Mayo & Maslow recommended the human

relations management which includes more

effective actions of managers, consulting

the staff & enabling the workers to havebroad on-the-job relationships.



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Worked on different aspects of socialcooperation, motivation,

organizational communication,

changes in job specification &

quality of industrious life.

Their approach intended to help an

employee realize personal

potential.


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KEY POINT:

The general target of the school was to prove that

increase in staff performance provides an increase in

organizational effectiveness.



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1.4 Management Science SchoolDeveloped after World War II from the operational research

teams in Great Britain & US.

Advocated that mathematics, statistics, cybernetics &

operations research models should be used to decide

operation problems.

Model - an idea of real situation; in order to solve operation

problems:

1. Define the problem;

2. Develop a model of the situation

3. Specify the quantitative characteristics to the model“substitution of verbal discussions for models, symbols &

quantitative values.”


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1.4 Management Science School

The optimal decision making algorithm based on

statistical decisions theory, game theory etc.Quantitative abstract and applied models of

economic phenomena

Management Science

School providesmanagers with ascientific basis forsolving problems &making decisions.

The most recent subfield of Management Science

is Management Information System (MIS ) which

provides managers with information in a timely &

cost-efficient manner


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Introduced to management after 1950s by the Management Science

School.Organization is a ―system‖ and considered relations inside & outside

the organization.

System A number of interdependent parts functioning as

a whole for some purpose.

Subsystem A system within a system.

An Organization is anOPEN SYSTEM


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Inputs(Goal

Oriented)

P l a nni n g

O r g a ni z i n g

S t a f f i n g

Outputs(External

ToOrgnzn.)

L e a d i n g

C o n t r o l l i n g

Product/Services,

Profits, Customer &Societal satisfaction,

Other Long-term Goals

9 M’s of

management

Stake holder Feedback (reenergizing the system)

Stakeholders

Shareholders;

Society; Customers;

Employees; Suppliers

EXTERNAL ENVIRONMENT(Opportunities, Constraints)


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Believes that it is impossible to select one combination of

management techniques for all situations.

Organizations differ in structures, spans of control, chains of

command, degrees of centralization, corporate culture, and so on. Thus,

each organization is tailored by some particular circumstances.

Applies ideas drawn from various schools of management thought to

real life situations.

Contingency theorists denote such elements of a management

situation as the conditions of a task (like the Scientific ManagementSchool), managerial job (borrowed from the Administrative School) &

person (Human Relations Movement).


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This approach points out the need for managers to examine

the relationship between the internal & external environment of anorganization.


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“Good management is the art of

m king problems so interesting nd

their solutions so constructive th t

everyone w nts to get to work nd

deal with them ” --Anonymous--

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