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FUNDAMENTALS OF
MANAGEMENT
Fundamentals of Mana ement 11
What do Beaunit Mills, Hercules Powder,And Liebmann Breweries have in common?
On 1st Fortune List (1955)They Don’t Exist Today
“BAD Management”Not “Keeping up the Good Work”
Not adapting to Environmental Changes
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Management Defined
According to Mary Parker Follett Management
is the “art of getting things done through
people”.
It Is the process of designing and maintaining
an environment in which individuals,working, together in groups efficiently
accomplish selected aims.
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Continue
George R Terry :- defines management as a
processconsisting of planning organizing actuating and
controlling, performed to determine and
accomplish the objectives by the use of people
and resources.
Management:Applies to any kind of organization.
Applies to managers at all organizational levelsManagers carry out the functions of planning
Is concerned with productivity; implieseffectiveness and efficiency
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ORGANIZATION
A systematic arrangement of people broughttogether to accomplish some specific purpose;applies to all organizations—for-profit as wellas not-for-profit organizations.
Where managers work (manage)
Common characteristics
Goals
Structure
People
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Organizational Levels
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Identifying Managers
First-line managersSupervisors responsible for directing the
day-to-day activities of operative employees
Middle managersIndividuals at levels of management
between the first-line manager and topmanagement
Top managers
Individuals who are responsible for making
decisions about the direction of theor anization and establishin olicies thatFundamentals of Mana ement 77
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Managerial functions at differentOrganization Levels
All managers carry out managerial functions,the time spent for each function may differ.
Top level managers, spend more time on
planning and organizing than do lower- levelmanagers.
The scope of authority held may vary and thetypes of problems dealt with may beconsiderably different.
Also, the person in a managerial role may bedirecting people in the sales, engineering, or
finance department.
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FUNCTIONS OF MANAGEMENT
The concepts, principles, theory and
techniques of management are grouped into
five functions as:
Planning
Organizing
StaffingLeading
Controlling
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MANAGEMENT SKILLS
•
Conceptual Skills : cognitive ability to seethe organization as a whole and therelationship among its parts
• Human Skills : ability to work with and
through other people and to workeffectively as a group member
• Technical Skills : understanding of and
proficiency in the performance of specifictasks.
• Design Skills: Is the ability to solveproblems in ways that will benefit the
enterpriseFundamentals of Mana ement 10
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SKILLS AT MANAGERIAL LEVELS
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MINTZBERG’S MANAGERIAL
ROLES Interpersonal
Informational
Decisional
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Interpersonal Roles
The figurehead engages in ceremonial
activities.
The leader motivates, communicates, and
influences subordinates.
The liaison develops relationships outsidehis/her unit both inside and outside the
organization.
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:INFORMATION ROLES
The monitor seeks current information frommany sources.The disseminator transmits information to
others both inside and outside the organization.The spokesperson provides official statements topeople outside the organization about companypolicies, actions, or plans.
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Decisional Roles
The entrepreneur initiates change.
The resource allocator allocates resourcesto
achieve outcomes.
The negotiator bargains for his/her unit.
The disturbance handler resolves conflicts.
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Henry Fayol’s FourteenPrinciples Of Management
Division of work
Authority and Responsibility
Discipline
Unity of command
Unity of direction
Subordination of the individual interest toorganizational interest.
Remuneration
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Principles Continued
Centralization
Scalar chain
OrderEquity
Stability of tenure of personnel
InitiativeEsprit de corps
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Five Functions Of Managers
Stated as:
1. Planning2. Organizing
3. Staffing
4. Leading
5. Controlling
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planning
Planning is looking ahead and preparing for thefuture.
Planning involves selecting missions and
objectives and the actions to achieve them. It requires decision making, that is choosing
future courses of action from amongalternatives.
No real plan exists until a decision acommitment of human or material resources orreputation has been made.
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Nature and Purpose of Planning Involves selecting missions and objectives and
the actions to achieve them.
It requires decision making and bridges the gapfrom where we are to where we want to go.
Planning is an intellectual process, and itrequires that we consciously determine coursesof action and base our decisions on purpose,knowledge and considered estimates.
Planning and control are inseparable Siamesetwins of management.
Any attempt to control without plans is
meaningless there is no way for people to tell
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organizing
§ Organizing is that part of managing thatinvolves establishing an intentional structureof roles for people to fill in an organization.
§ It is intentional in the sense of making surethat all the tasks necessary to accomplishgoals are assigned and to people who can dothem best.
§ The structure must define the tasks to bedone, the roles so established must also bedesigned in the light of the abilities andmotivations of the people available.
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STAFFING
Staffing involves filling, and keeping filled,the positions in the organization structures.
Done by identifying work- force
requirements inventorying the peopleavailable.
Involves Recruiting, Selecting, placing,promoting, appraising planning the careers
of, compensating and training.
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leading
Leading is the influencing of people so thatthey will contribute to organization andgroup goals.
Effective managers also need to be effectiveleaders.
leading involves motivation,leadership stylesand approaches and communication.
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controlling
Controlling is the measuring and correctingof activities of subordinates to ensure thatevents conform to plans.
It measures performance against goals andplans shows where negative deviationsexists.
Initiate actions to correct deviations.
Example: means of controlling like thebudget for expense inspection records
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TYPES OF PLANS
1. Purposes or Missions
2. Objectives
3. Strategies4. Policies
5. Procedures
6. Rules
7. Programs
8. Budgets
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objectives
Desired outcomes for individuals, groups, orentire organization.
Objectives are the ends towards whichactivity is aimed they are the results to beachieved.
Represent the end point of planning and alsothe end towards which organizing , staffingleading and controlling are aimed.
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PURPOSES OR MISSIONS
Identifies the basic function or task of anenterprise in every social system.
Enterprises have a basic function or task which is
assigned to them by society.They have a social purpose of producing and
distributing goods and services.
it can accomplish this by fulfilling a mission of
producing certain lines of products.
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Example:
1. Missions of an oil company, such as Exxon:“Search for oil and to produce, refine andmarket petroleum and a wide variety ofpetroleum products, from diesel fuel to
chemicals”.2.Mission of the Du Pont Company: “better things through chemistry”.3. Hallmark, expanded its business beyond
greeting cards, defines its mission as:“the social expression business”.
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strategies
General programs of action anddeployment of resources to attaincomprehensive objectives.
Include the determination of the basiclong term objectives of an enterprise andthe adoption of courses of action andallocation of resources necessary to
achieve these goals.
Example: Years back, GM had a “do-it –yourself", policy.
Now, some GM cars are made by rival
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policies
Are plans in that they are generalstatement or understandings which guideor channel thinking in decision making.
Policies define an area within which adecision is to be made and ensure that thedecision will be consistent with , andcontribute to an objective permitting
managers to delegate authority and stillcan have control.
Example: 1.Company strictly follow- the
practice of promoting from within
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PROCEDURE AND RULES
Procedure: Is a standing plan that outlinesstep-by step guides to action.
Includes activities and they detail the exact
manner in which certain activities must beaccomplished.
Rules: Is a standing plan which indicates what anemployee should or should not do and allows no
room for interpretation. Example: No smoking , IT IS NOT A
THROUGHWAY
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PROGRAMMES
Are a complex of goals, policies, procedures,rules, task assignments and steps to be takenand resources to be employed to carry out agiven course of action and they are supported by
budgets.Example:
An airlines Co. program for acquiring a $400million fleet of jets.
5 year program initiated by the Ford Motorcompany several years ago to improve the statusand quality of it’s thousands of foreman.
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BUDGETS
Is a statement of expected resultsexpressed in numerical terms and isreferred to as a numberized program.
Can be expressed either in financialterms or in terms of labor hours unitsof product, machine- hours or anyother numerically measurable term.
It reflect capital outlays as the capitalexpenditures budget does or
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Continued
It may show cash flow as the cashbudget does.
Budgets vary according to the
organizations level of output andthese are called variable or flexiblebudgets.
Advantages: It makes people plan because a
budget is in the form of numbers
It forces precision in planning