Chapter One Ten

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CHAPTER ONE OVERVIEW

INTRODUCTION TO MANAGEMENT

1.0 WHY WE STUDY MANAGEMENT

1.1 DEFINITION OF MANAGEMENT, ORGANIZATION AND MANAGERS.

1.2 MEASURING MANAGERIAL PERFORMANCE

1.3 MANAGEMENT PROCESS

1.4 LEVELS OF MANAGEMENT

1.5 MANAGERIAL SKILL

1.6 MANAGERIAL ROLES

1.7 MANAGERIAL ACTIVITIES

1.8 THE CHALLENGE OF MANAGEMENT

Learning objectives

After completing this chapter, you should be able to :

1. Define what is management

2. Familiarize with the different types of organizations.

3. Explain the levels of management and management functions

4. Know the different types of managerial roles and activities.

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1.0 WHY WE STUDY MANAGEMENT ?

To enhance the understanding of events/ activities, challenges and skills that will give

Meaning to our future work experience and careers as managers or other professional

careers we may choose.

Make us become effective manager who will be able to help the organization achieve a

high level of performance through the utilization of its human and material resources.

Equip ourselves with effective management theories and practices that can be applied to

all types of organization and any occupational settings we may choose to be in the future.

Make us to become effective managers who will be able to detect and locate problems to

be solve, thus making good decision about appropriate solution and utilizing organizational

resources effectively to implement these solutions.

Enable us to assess the future, make plans for it, thus acting as good planners.

To be responsible and accountable for employees to be in the same track towards

accomplishment of organizational goals.

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1.1 DEFINITION OF MANAGEMENTS, ORGANIZATION AND

MANAGERS.

a) MANAGEMENT:

Earlier definition by Mary Parker Follet – Management scholar as:

“ The art of getting things done through people”

Stoner

“The process of planning, organizing, leading and controlling the efforts of an

organization members and of using all other organizational resources to achieve

stated organizational goal”.

Holt“ The process of planning, organizing, leading and controlling resources in an

organizational

b) ORGANIZATION:

Is a social unit in which two or more people interact to achieve a common goal or

a set of goal ( stoner) or

As a collection of people working together in a division of labor to achieve a

common purpose.( Schermerhon)

The structure of relationships that exists when two or more people mutually

cooperate to pursue common objectives (Holt).

TYPES OF ORGANIZATION:

1. Formal :

Consist of two or more people who are involve in a mutual effort with formal

authority to achieve common objectives ( Holt)

2. Informal organization

The shadow organization consist of two or more people involved in a mutual

effort without deliberate structures of authority or the necessity of the common

objectives.

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b) Middle managers

Middle managers can include more than one level in an organization.

Middle managers direct the activities of lower – level managers and

sometimes also those of operating employees. Middle managers’

principles responsibilities are to direct the activities that implement their

organizations’ policies and to balance the demand of their superiors with

the capacity of their subordinates.

c) Top managers

A comparative small group of executives, the top management is

responsible for the overall management of the organization. It establishes

operating policies and guide the organization’s interactions with its

environment. Typical titles of top managers are “ chief executives officer”,

“ president”’ and “ senior vice- president”. Actual titles vary from one

organization to another.

MANAGER

1.4 MANAGEMENT SKILLS

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-first line manager - middle manager

- Top manager -functional manager

- General manager

By their level in the

organizationBy the range of organizational activities



A manager’s job is diverse and complex, and requires a range skills. Three basickind of skills : technical, human and conceptual

Technical skill- Is the ability to use the procedures, techniques and knowledge of

a specialized field. Surgeons, engineer, musicians and

accountants.

Human skill - The ability to work with, understand and motivate other people

as individuals or in groups.

Conceptual skill – ability to coordinate and integrate all of an organization’s

Interests and activities.

Robert L.Katz. every manager needs all three but the amounts differ by their level

in organization.

FIRST-LINE MIDDLE TOP

MANAGEMENT MANAGEMENT MANAGEMENT

1.5 MANAGERIAL ROLES

6

Conceptual

Human

Technical

Conceptual

Human

Technical

Conceptual

Human

Technical



The specific classifications of managerial behavior.

According to Henry Mintzberg “ The nature of managerial work”’ managers perform ten interrelated roles in the organization. Ten roles classified under

three main roles :

They are :

1. Interpersonal roles

2. Informational roles3. Decisional roles

The interpersonal roles are to help the manager in managing organization smoothly.

Thus, the informational roles are to assist the manager in receiving and communicatinginformation to make the right decision.

1.6 Managerial Activities

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A. Interpersonal Roles

1. Figurehead - A department head performing ceremonial duties like

greeting visitors, signing legal documents etc.

2. Leader - A person who is responsible for hiring, training and

motivating subordinates in the organization.

3. Liaison - A person who perform and interacts with other people

outside the organization.

B Informational Roles

1. Monitor - Manager continuously seeks information that can be use to

advantage

2. Disseminator - Information received internally or externally will be transmitted

to the subordinates ,

3. Spoke person - Information will be transmitted to people outside the

organization or unit

C. Decisional roles

1. entrepreneur - Manager tries to improved the unit and initiate the changes.

2. Disturbance handler - managers is responsible for corrective actions when theorganization faces important, unexpected disturbances.

3. Resources allocate - Manager is responsible in allocating the resources of theorganization

4. Negotiator - Manager is responsible for representing the organization atma or ne otiations .



Managers are the people who deal with planning, organizing, leading and

controlling.

1.7 THE CHALLENGE OF MANAGEMENT

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Organizing

Determining what tasks are to Production workers were assigned to

Be done, who is to do them, different supervisor assembly lines / unithow the tasks are to be grouped, many productions activities were

who reports to whom and where rearrange so as to achieve the goalsdecisions are to be made. Specified.

3. Leading

Includes motivating, The production manager and supervisor

subordinates, directing, selecting have created a certain environmentthe most effective where workers will want to produce

communication channels, and more so as to meet the target.

resolving conflicts.

4. Controlling- monitoring activities to Since the sales of proton wira and

proton

Ensure that they are being Perdana exceed expectationsAccomplished as planned and management has add mare shifts to meet

Correcting any significant demand which will obviously increaseDeviations. the market share.

1. Planning Goals:

- Include defining goals a) types and number of books to beestablishing strategy and produce

developing plans to coordinates b) Improving the services for the

uses activities



In an environment which is rapidly and constantly changing, managers have to

face and contend with a wide variety of challenges in pursuing their mission.

This challenges can and do influence the work of managers and affect the

performance of the organization as a whole.

If the managers do not closely monitor this challenges or changes in the

organization environment or fail to respond quickly to this changes, they arelikely to find their organization survival at a brink. Success goes to the managers

who can recognize and seize the opportunities.

The current challenges that are considered as the important factors that affect today business environment are:

a) Globalization

Services or business not a local focus but must be global

b) Total Quality management

Comprehensive effort to enhance an organization product or service quality

and reduce cost.

c) Social responsibility and ethic

Focus on what an organization does affects the society in which ethics is the

discipline dealing with what is good and what is bad or right or wrong or with

moral duty or obligation.

d) Organizational restructuring and consolidation.

Concept where organization is slimming down or downsizing operations inorder to focus on resources and boost profits or decrease expenses. This trend

will shape the managers’ environment through the movement towards more

streamlined, efficient organization.

e) Re- engineering

A radical rethinking and re-designing organization’s processes to achieve

drastic improvements in performance ( Micheal Hammer)

f) Empowerment.

Current and poses another new challenge to management and organizationaltoday. An approach that involves granting employees the freedom and

responsibility to do their job as they think best, without constantly having to

appeal to higher authorities for permission. This will enable employees tomake quick decision without getting caught through the ladder of beauracracy

so they will be able to serve customers more effectively.

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ACTIVITY

Can you define the following terms in your own words?

Management Organization manager Division of labor

Human skill Technical skill Conceptual skill

Management functions Management process planning

Organizing leading Effectiveness

Controlling efficiency Informational roles

Interpersonal roles Decisional roles Globalization

Re-engineering Total quality management Empowerment

Restructuring First-line managers Middle managers

Top managers Functional manager General manager

THINKING EXERCISE

1. What is management and what is organization ?

2. List and define four (4) management functions. Give examples of how they

would be used by the following person(s).a) High School principal

b) Information professionals

3. Why we need to study management?

REFERENCES :

1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6th ed2001, Prentice Hall.

2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R, Management, 6th

and,1995, Prentice Hall.

CHAPTER 2 OVERVIEW

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EVOLUTION OF MANAGEMENT THEORIES

1. THE FORMATION OF MANAGEMENT PRACTICES

2. PRE CLASSICAL VIEW POINT

3. CLASSICAL VIEW POINT

4. BEHAVIORAL VIEWPOINT

5. QUANTITATIVE SCIENCE APPROACH

6. CONTEMPORARY VIEWPOINTS

Learning Objectives :

After completing this chapter student will be able to:

1. Understand the beginning of management practice

2. Explain several management theories .

3. Apply several techniques of management practice.

2.0 EVOLUTION OF MANAGEMENT THEORIES

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Begin from ancient civilization. Organized management practice in 2000 B.C

during King Hummurabi. Great Pyramid in Egypt, 100,000 workers involve.Egyptian use mathematical to organize labor, supervise to built within specified

design and time.

China – Sun Tzu War, touching on strategy, planning and leadership use by

military strategy.

2.1 THE FORMATION OF MANAGEMENT PRACTICES

Management thought started with industrial revolution around 1800. This point

saw the invention and use of machinery setting up factories and creation of entrepreneurial capital that finance the industries.

People think ways to improve efficiency and effectiveness.

2.1.1 Pre classical view point.

The factories became widespread and large number of employees need to be

coordinated. Therefore the challenge had motivated a number of individuals to

think of ways and means to run the factories more effectively.

Management theories can classified into 5 view points that are :

- Pre classical view point- Classical view point

- Behavioral view point

- Quantitative view point- Contemporary view point

PRE CLASSICAL CONTRIBUTORS

a) Robert Oven ( 1772-1858)

- A British entrepreneur and had a cotton mill in Scotland.- 400-500 young children who worked 13 hrs (11hrs/2hrs off for

meals)

- Concerned for the working and living condition of workers.- Tried to upgrading streets, houses, sanitation, educational system.

b) Charles Barbage ( 1792-1871)

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- Known as father of modern computing

- English mathematician, pioneered in computing and management.

- The idea of work specialization – work is divided into various jobs.- Recognized specialized physical work as well as mental work

( specialists

- Invented a profit sharing plan _ a bonus for useful suggestions and portion of wages that was dependent on factory profits.

- Ideas used in scanlon plan.

c) Henry R. Towne ( 1844-1942)

- A Mechanical engineer, president of Yale and Towne

Manufacturing company.

- Observed good engineering skills and good business skills wererarely combined but both were equally important to run

organization.

- Outlines the importance of management as a science

- Called for the development of management principles.

2.1.2 CLASSICAL VIWEPOINT

A perspective on management that emphasizes finding ways to manage work efficiently. Three different approaches :

a) Scientific management b) Bureaucratic management

c) Administrative management

1. SCIENTIFIC MANAGEMENT

Approach that emphasizes findings ways to manage work efficiently. Three

different approach are:

a) Frederick Winslow Taylor ) 1856-1915)

- The father of scientific management.

- Observed ‘ soldering ‘ by employees- working at less than fullcapacity meaning feared that, Increasing their productivity would

cause them or others to lose jobs.

- Faulty wage system encourages workers to operate at slow pace.- Generate rules handed down were inefficient.

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Specialization of labor Jobs broken down into routine, so

that members know what isexpected from them thus, become

more competent.

Formal rules and procedures to ensure uniformity and facilitate

coordination

Impersonality Rules, policies and sanctions are

applied uniformly without

prejudiced.

Well defined hierarchy Multiple level of positions, carefully

reporting relationships among

levels, provide supervision of lower

offices by higher offices

Career advancement based on Selection and promotion based on the qualifications merit and

performance of members.

3 . ADMINISTRATIVE MANAGEMENT

An approach focuses on principles that can be used by managers to coordinate

the internal activities of organizations.

1. Henri Fayol (1841-1925)

-French industrialist

-Outlined a number of principles in management :

a) Diversion of work Will result in efficiencies applicable

to

both managerial and technicalfunctions.

b) Authority The right to give orders and power toexact obedient. With authority comes

responsibilities.

c) Disciplines Necessary to run the organization, it

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depends on the worthiness of its leaders.

d) Unity of command Employees should received ordersfrom one superior only.

e) Unity of direction Activities aimed at the same objective, one plan and one person in charge.

f) Subordination of individual The interest of one group of employeesshould not interest to general interest prevail

the interest of the organization.

g) Remuneration Compensation should be fair to both theemployee and employer.

h) Centralization The amount depends on situation.

Objectives is to optimum use of thecapabilities of personnel.

i) Scalar Chain A scalar chain of authority extends from the

top to bottom of an organization and defines

the communication path .Horizontal comm..

is also encourage as long as managers areinformed.

j) Order Materials in the right place, easy to retrieveand facilitate activities. Select right

employee for the right place and right time.

k) Equity Employees treated with kindness and justice.

l) Stability of personnel High turn over is not rate will effect thefunctioning tenure of organization.

m) Initiative managers encourage and develop

subordinates initiative to the fullest.

n) Esprit de corps Promoting team spirit unity in organization

2. Chester Barnard (1886-1961)

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- Acceptance theory of authority- argues that authority does not depends as

much on persons of authority who give orders as on the willingness to

comply of those who receive orders.- Employees willing to accept orders if they understand the communication,

see the communication consistent with the objectives of organization, feel

that the actions indicated are inline with their need and other employeesand view themselves as mentally and physically able to comply.

- Managers real powers come from the degree of acceptance of his workers.

2.1.3 BEHAVIORAL VIEWPOINT

Emphasizes the importance of attempting to understand the various factors hat

affect human behavior in organizations.

1) Early behaviorist:

Hogo Munsterberg ( 1863-1916)

Mary Parker Follet (1868 – 1933)

a) Hugo Munsterberg

Interested in identifying the conditions that would promote the individuals best work and finding ways to influence workers to act in accord with

management interest.

b) Mary Parker Follet

Focus in group dynamic- employees work together.

- Power sharing- Conflict resolution

- Integration of organizational system

d) Hawthorne studies

A group of studies done at Hawthorne plant of Western Electric company.

1920s- early 1930s :- Monitored the five women assembling electrical relays.

- Found that the women still increased their productivity period.

- Concluded that the increase of productivity was due to the changeof supervisory arrangement that had been made to facilitate the

experiment.

- = Hawthorne effect – improve performance, may be due the addedattention they receive from researchers, rather than specific factors

been tested.

2) Human Relation Movement Two theorist :

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a) Abraham Maslow (1908-1970)

- Contribute to the theory of motivation “ hierarchy of needs”.- Once has satisfy basic need before other can be taken care. This

Dictated people’s motivation to perform task.

i) Physiological need ( lowest)

ii) Safety

iii) Belongingnessiv) Esteem

v) Self Actualization

b. Douglas Mcgregor (1906-1954)

Theory X and Y – managers view their workers in one of the categories.

Theory X – assume employees are lazy, little ambition, focused on security needs.Theory Y- Employees are capable of self control, have capacity to be creative,

higher level need are often unmet on job.

Conclusion – managers who assume best of their employees are rewarded with

committed and satisfied workers.

c. Behavioral Science Approach

Emphasizes scientific research as the basic for developing theories about human behavior in organizations- can be use to establish practical guidelines for

managers. It include management, psychology, sociology, anthropology and

economics.- managers can be used as guides in assessing various situations and

deciding appropriate actions.

- Employees do better with attainable goals than without goals.

2.1.4 QUANTITATIVE MANAGEMENT VIEWPOINT

- Emerged as a major force in world war 2

- Focuses on the use of mathematics, statistics and information aids to

support managerial decision making and organizational effectiveness1. Management science/ operation research

2. Operation management

3. Management information systems

1. Management science/ operation research

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Aimed at increase decision effectiveness through the use of sophisticated

mathematical models and statistical methods.

2. Operation Management

The function/ field of expertise for managing the product and delivery of

an organization’s products and services. E.g work scheduling, production planning, inventory analysis.

3. Management Information System

The field of management that focuses on designing and implementing

computer based information systems for use by managements . e,g system

that run raw data to information- use by the organization.

2.1.5 CONTEMPORARY VIEWPOINTS

Major innovations in ways of thinking about management:- System theory

- Contingency theories

1. System theory

An approach based on the assumption that organizations can be visualized

as a systems.

System – A set of interrelated parts that operate as a whole towards a

common goal.

Components of system

Inputs Human material, financial, equipment and informational

resources required to produce goods and services.

Transformations Managerial and Technological

Process Abilities: Planning, Organizing, Controlling and technology

–to converts inputs into outputs.

Feedback Information about result and organizational status relative to

the environment

Advantages of Systems approach :

- can be analyze at different levels.

- Providers a framework for assessing how well the various parts of anorganization interact to achieve common goal.- Emphasize that a change in one part can affect others

- It considers how an organization interacts with its environment- better to

operate in open system.

Open System A system that operates in continual

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interaction with its environment.

Closed system Does little or no interaction with

environment, receives little feedback.

2. Contingency Theories

- Appropriate managerial action depends on particular parameters of

situations.

- Identifies contingency principles to take action on the situation.

Successful companies operated differently depending on their technology

category- appropriate actions by managers depend on situation.

ACTIVITY :

1. How did Industrial Revolution Influence Management Practice?

2. Why did scientific management receive so much attention?. What were

the Hawthorne studies?

3. Why was the human relations movement important to management

history?.

4. What is contingency approach to the study of Management?.

REFERENCES :

1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6th ed

2001, Prentice Hall.



CHAPTER 3 OVERVIEW

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PLANNING

3.0 DEFINITIONS OF PLANNING AND PLANS

3.1 IMPORTANCE OF PLANNING IN ORGANIZATIONS

3.3 GOALS

3.4 OBJECTIVES

3.5 OPERATIONALIZING

3.6 THE NATURE OF MANAGERIAL DECISION MAKIG

3.7 THE RATIONAL OF DECISION MAKING

Learning objectives:

After completing this chapter, student should be able to :

1. Explain the differences between planning and plans.

2. Explain the importance of planning

3. Explain what is “ goals” and “Objectives”

4. Apply various types of plans in planning

5. Define what is “ decision making”.

6. Familiarize with types and nature of decision making.

7. Outline the steps in decision making process.

3.1 DEFINITION OF PLANNING AND PLANS

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3.1.1 PLANNING

Important to all organization. It is important because organization are effected by

change, economic, politic and social. Planning allows us to be more certain and to

plan for the future.

A process that begins with objectives, defined strategies, policies and detailed

plans to achieve them. Planning establishes an organization to implementdecisions and includes a review of performance and feedback to introduce a new

planning cycle. (STEINER) OR

Planning may be broadly defined as “ a concept of executive action that embodiesthe skill of anticipating and controlling the nature and direction of change “

( MC FARLAND) OR

“The process of determining in advance what should be accomplished and how itshould be realized”. ( MONDY) . Based upon the definition stated above, you can

infer that plans should be:

1. Formally prepared

2. Observable, factual, logical and realistic

Planning is a pervasive and continuous executive functions involving complexes

processes. Planning is an important managerial functions.

A manager must plan ahead to get things done through his subordinates

3.2 PLANS

According to Mondy, plans are statement of how objectives are to be

accomplished.As a manager, whether he is top manager or lower level manager, he has to plan.

Through planning, managers can inform their subordinates about the expectations

of the management and the objective of the organization can be realized.

Whatever activities are planned by the managers, there are several questions that

need to be asked to realize the organization’s goals.1. What activities are required to accomplish the objectives?

2. When should these activities be carried out?

3. Who is responsible for doing what?4. Where should the activities be carried out?

5. When should the action be completed?.

3.3 THE IMPORTANCE OF PLANNING IN ORGANIZATIONS

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Why do managers in organizations have to plan?

Why do you have to plan?What is this activity important to an organization?

The reasons are :

1. Planning helps to determine what opportunities there are to exploit. In other

words, the profitable alternatives that exist are identified through a planning

process.

2. Planning enables us to identify the course of action by setting objectives and

choosing alternatives that will be most profitable.

3. Without proper plans much will be left to chance an therefore to risk.

4. Through plans, resources are efficiently and effectively utilized, thus resulting insaving.

5. What is really happening become more meaningful when we know what is really

expected.

6. It help to achieve goals and reduces random activities and needless

overlapping.

7. It provides for effective utilization of available facilities of an enterprise.

8. It assists a manager in attaining confident and aggressive leadership. By means of

planning, a manager successfully copes with his affairs and problems, rather than

allowing them to dilute and negate his efforts. Not to plan is to manage as aresults of events rather than by use of foresight influence an action.

9. Planning can point out the need for future changes. It can reveal opportunities for new services. It guides management thinking to future desirable activities and

spells out how best to make the shift and what must be done to attain goals.

3.4 TYPES OF PLANS

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Before any managers can plan the activities of the organization, managers do need

to know the various types of plan. The failure of some managers to recognize thevariety of plans will caused difficulty in making planning effective.

3.5 GOALS

Goal is one type of plan. Setting goals gives people a sense of control that leadsthe action. Accomplishing goals leads to self- confident, Greater risk taking and

more action.

So, what are goals?.

Goals are the ends toward which activities is aimed. Weather a firm new or old,

large or small it must set goals. Goals is organizations provide the ends towards

which people direct their efforts. Goals that are clearly established an properlycommunicated to employees stand the best chance of being reached.

Well defined goals provide a solid basis for managers to organized, lead andcontrol their departments or company successfully.

Characteristics of setting goals are:

1. The goal must precise, specific and meaningful.2. The goal must be clear and coordinated

3. The goal must be include long – term and short – term plans to be

successful.

Example of a Goal:

The goal of every manager is to create a clear and verifiable objectives thatfacilitate measurement of a effectiveness and efficiency of managerial actions.

3.5.1 TYPES OF GOAL :

1. Purpose

It is define as an intention to produce a specific good or service. E.g todevelop, manufacture and market pharmaceutical products that assure

strong growth and profitability.

2. Mission

It is the purpose or reason for the existence of an organization. The

mission of an organization’s is its products or services or markets or customers .e.g, marketing pharmaceuticals products can be the mission of

a drugs manufacturing company.

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3. Objective

It is an estimated end result expected in the future. Objectives are

established at organizational, departmental or individual level. Increasingthe accounts handled from 20 to 25 percent within the next year, can be an

objective of a salesman.

4. Strategy

It is the method of shaping a company’s future and involves determining

the long – run direction of the organization. A company may have thestrategy diversifying into related businesses within the next few years.

5. Resource allocation

It distributes money, personnel, plant and equipment, land and other tangible means of production for various uses.

6. Strategic planning.

Process of making long term choices about an organization’s mission,overall objectives, strategies, policies and resource allocations.

7. Tactical planning

Making detail, short term decisions of what to do, which will do and how

it is to be done. Developing annuals budgets for projects and departments.

Choosing specific means of implementing strategic plans.

3.6 OBJECTIVES

Objectives are the prime parts of the plans and are vital to an organization because

all the efforts an activities are focused on this objectives .They provide a direction in which the organization should move.

They serve as standards of performance against which actual performance may be

compared and it is an important dimension of the control process. Objectives

determine the role an organization should play in a given environment. Theefforts an activities of the members of an organization can be coordinated with the

help of objectives.

A high degree of motivation can be maintained by setting objective for a members

of the organization an enabling them to achieve to those objectives.

3.6.1 The nature of objective:

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1. Hierarchy of objectives_

It is a series of objectives linked to one another at the various levels of management such that each higher-level objective is supported by one or

more lower- level ones.

3.6.2 A hierarchy of objectives is important to any organization because:

a) It helps to ensure the proper alignment of all organization levels withthe organization’s purpose.

b) It helps to coordinates decision at all levels

c) It provides a basis for establishing standards facilitating performance

measurement at all management levels.d) It helps to avoid sub- optimization, that is, having some sub- units

accomplish their objectives at the expense of the other sub- units in the

organization.

e) It helps to prevent displacement of objectives wherein means becomemore important than ends that were original intended.

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RELATIONSHIP OF OBJECTIVES AND THE ORGANIZATIONAL

HIERARCHY

HIERARCHY OF OBJECTIVES

Board of

directors

Socio economic

purpose

1

Mission Top level

managers

2

Overall objectivesof the organization

( LR strategies )

3

More specific overall Middle

Objectives level

( key result areas) managers

4

Division objectives

5

Lower

Department and unit objectives level

managers

6

Individual objectives- performance

- Personal development objectives

Organizational hierarchy

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3.6.3 EXPLAINATION:

1. The purpose of society that requires the organization contribute to the

welfare of the people by providing good and services at a reasonable cost.

2. The purpose of the business, which might be furnish convenient, low-costtransportation for the average person.

3. The stated mission might be to produce market and service automobiles. Theseaims are then translated into general objectives or strategies, like designing,

producing, marketing a low- cost, fuel- efficient automobile.

4. At the next level of the hierarchy, you find more specific objectives such as those

in the key result areas. These are the areas in which performance is essential for

the success of the enterprise.

5. These objectives have to be further divided into division department and unit

objectives down to the lowest levels of the organization.

3.6.4 Multiplicity of Objectives

All organizations have multiple goals that must be recognized by management.E.g the major goals of University are:

1. To provide education for student2. To conduct research to advance the state of knowledge

3. To provide community service.

3.7 OPERATIONAL STRATEGY

In planning, managers have to make use of the different types of operational plansfor the effectiveness of the organization. This operational strategy is done at all

levels and involves directing the organization’s day to day operations to achieve

overall strategic objectives consistent with the organization’s mission and policies.

There are two types of operational strategy ( operational plans)

1. Single use plans

It is a detailed course of action that probably will not be repeated in the sameform in the future. It is designed for a specific purpose or period. The plan

ceases to exist when the goals are achieved.

Single use plans consists of program, project and budgets.

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3.8 PLANNING PROCESS

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Stating organizationalobjectives STEP 1

Listing alternativesways of reaching

objectives STEP 2

Developing premises

upon which eachalternative is based

STEP 3

Choosing the best

alternatives for

reaching objectives

STEP 4

Developing plans to pursue chosen

alternatives

STEP 5

Putting plan into STEP 6



ACTIVITY :

1. Contrast formal with informal planning?.

2. Under what circumstances do you believe MBO would be most useful?Discuss.

3. How do single use and standing plans differ?

4. How do you formulate strategies?

REFERENCES :

1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6th ed

2001, Prentice Hall.



3. Locke, E.A and Latham, G.P.1990. A theory of Goal setting and Task

Performance. Eaglewood Cliffs NJ: Prentice Hall.

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CHAPTER FOUR OVERVIEW

ORGANIZING

4.0 DEFINITION OF ORGANIZING

4.1 IMPORTANT OF ORGANIZATION

4.2 ORGANIZATIONAL STRUCTURE

4.3 ORGANIZATION CHART

4.4 DIVISION OF WORK

4.5 TYPES OFORGANIZATION STRUCTURE

4.6 AUTHORITY AND POWER

4.7 DECENTRALIZATION/ DEPARTMENTALIZATION

Learning objectives:

After completing this chapter student will be able to :

1) Explain why organization need to organize

2) Familiarize with organizational structure

3) Explain how to prepare organizational chart

4) Describe different types of organization structure

5) Differentiate between centralization and decentralization of organization.

32



4.0 ORGANIZING

4.1 Definition :

The formal way for managers to divide work coordinate task, delegate authority and

responsibility to achieve organizational objectives.To structure / arrange the relationship between people, the work done and facilities so

that goals are achieved.

4.2 Why organizing?

- Divide work according to nature and similarity of tasks.

- Pool resources, increase efforts which lead efficiency- Build continuity and synergy.

4.3 Important of Organizing

1. Important to management system.

2. To create and maintain relationship between all resources, by specifyingwhich resources to be used, when, where and how.

3. Minimize costly weaknesses

4. Accomplish better objectives by using coordinated efforts of people.

4.4 Organizational Structure :

Formal system that separates and integrates tasks :

- Allocating people and resources to tasks.

- Clarifying responsibilities through job descriptions, organizations chartsand lines authority.

- Letting employees know what to expect by them establishing rules,

regulations operation procedures and performance standards.

4.5 Organizational structure can be divide into four elements :

1. Specialization

2. Standardization3. Coordination

4. Authority

33



a) Specialization :

- Identifying specialized task, assigning to individuals/ work who aretrained.

- Middle managers will be responsible for directing work, functional and

first line usually supervise such as marketing, accounting or qualitycontrol.

b) Standardization :

- Developing the procedures an organization uses to ensure employees

perform their tasks in uniform and consistent manner.

How?

Description, instructions, rules and regulations to standardize subordinates

jobs success- Application forms will standardize the selection of employees.

- On the job training programs will promote standardized skills andreinforce values to organization’s success.

c) Coordination :

- Formal and informal procedures that integrates both managerial and

employees activities.

How?

In bureaucratic organization rules and regulations. In less structure- coordinationrequires knowledge of company wide problems, a willingness to share

responsibility and effective interpersonal communication.

d) Authority :

Right to make decision and take actions. Various organization distribute authority

differently.Centralized organization- top manages make decision, communicate to lower

managers.

Decentralized organization – Greater decision making responsibility is given tolower level managers.

34



4.6 ORGANIZATION CHART :

The way to describe the four elements including the location of positions,

departments and function within the organization. Five major information found

in the organization chart are:

1. Tasks

Indicates the range of tasks within the organization.

2. Subdivision

Each box represents a subdivision of the organization that is responsible for a

portion of the work.

3. Type of work

Label in each box identifies the subdivision area of responsibility.

4. Levels of management-

Management hierarchy, those reporting directly to the same individual are at thesame level.

5. Lines of authority

Lines connecting the boxes show the official lines of authority andcommunication.

4.7 DIVISION OF WORK :

Work is being divided among members and different jobs related to each other .This division of work and the grouping together of people is done based on some

common characteristics linked between the activities involved.

4.7.1 Importance of division of work :

- Increase productivity

- Create specialization- Simplified tasks that are easily understood and

completed quickly.- Easy to assign tasks to individuals based upon their talents, interest and

positions.

Disadvantages:

- Sense of control felt by managers will be different.- Create dissatisfaction and boredom of routine and specialize tasks.

35



4.8 Span Of Management:

Number of subordinates who report directly to a given manager.

Types of organization structure:Flat and steep

Flat –

Flat wide span of authority

Steep-

Short span of authority with

many organizations levels.

Advantages Supervisors are forced todelegate clear policies.

Subordinates must willing

to obey

Close supervision andcontrol. Rapid

communication between

subordinates and superior.

Disadvantages Danger of superior’s loss

control. Good managersneeded to handle situations.

Superior’s too involved

with subordinates. Manylevels costly excessive

distance between the lowest

and the highest level.

4.8.1 FLAT : few organization levels with flat wide span of authority.

Advantages :- Superiors are forced to delegate

- Clear policies

- Subordinates must willing to obey

Disadvantages :

- decision not passed down because of managing subordinates.

- Danger of the superior’s loss control

4.8.2 STEEP : Short span of authority with many organization levels.

Advantages :- Close supervision and control

- Rapid communication between subordinates and superior.

Disadvantages:

- Superior too involved with subordinates

- Many levels costly- Excessive distance between the lowest and the highest level.

36



4.9 AUTHORITY

The right to make decision with respect to work assignments and to requiresubordinates to perform assigned tasks in accordance with the decision made.

Authority is delegate from top. Each employee and each superior should know- Job suppose to accomplish

- Duties

- Authority- His supervisor

- Subordinates

- Levels of performance

- Authority is a type of power. It is legitimate.

4.9.1 Line authority –

A manager is responsible for the work of his unit and its direct contributions to

the objectives of the organization.

4.9.2 Staff authority

Each individual or group pays a supporting role and contributes to the objectives

of the organization.

4.10 DELEGATION:

- the passing of formal authority to another person.

- Includes responsibility, authority and accountability.Superior delegate authority to subordinates in order to facilitate work being

accomplished.

Why delegate?

- Culture of organization

- Specific situation involved.- Relationship behavior personalities and capabilities of the people in that

situation.

Guide lines for effective delegation authority.- Responsibility, authority and accountability.

- Scalar principle:

To whomWho can delegate

To whom they are accountable

- Unity of commandEach employee report to only one superior.

37



4.11 POWER:

Ability to exert influence. A process where managers affect other’s behavior.

5 types of power:

a) Reward power:

Money, acceptance, praise, promotion, status

b) Expert power

Influence others through knowledge

c) Referent power

Status, money, physical appearance, fame

d) Coercive power

Pain, ridicule, penalty, rejection and denial of rewards.

f) Legitimate power Position- president, supervisor

4.12 CENTRALIZATION

The responsibility and authority concentrated in one place so that major decisionare made by central controlling body. In some situation all managerial decisions

have to be approved by the chief executive before operation.

Advantages :

- It provides absolute control over organization.

- Administration convenient and the focal point for each function.- Common standards for all in organization.

Disadvantages :

- Each section may not have standard procedure.- More reporting and inspection may be needed than if the control were

centralized.

Control can be autocratic and inflexible. It will lead to frustration, managers

members of staff unable to use discretion but according to inflexible rules.

Bureaucratic control methods- Spread of forms and rigid procedures will thusslow down the operations of the organization.

38



4.13 DECENTRALIZATION : DEPARTMENTALIZATION :-

It occurs where responsibilities for various functions and operations are takenaway from the center and rests at the point where operations occur.

Four Types :

- By function- By product

- By territory

- By customer

Advantages Disadvantages

ByFunction

Mainly used by smaller firmsthat offer limited line of

products because it makes

efficient use of specializeresources.

Manager is expert ina narrow range of

skill. Easier to

mobilized specialskills. Little

coordination and

interpersonal skills

needed.

Difficult to makedecision. Difficult

to determine

accountability.Does not foster

development of

general managers.

Promote conflictover product

practices, difficult

to understandresponsibility for

overall tasks.

By product Functions and activities based on productsmanufactured by the

company.

Places attention andfocuses effort on product line.

Responsibility for

profits at the division

level. Improvescoordination of

functions activities.

Allows growth anddiversity of products

and services.

Costly. Requiresmore personnelwith the general

manager’s abilities

to fill up the

division of maintenance of

central services

becomes difficultwhen each

managers need his

own services.Division managers

fairly independent,

thus difficult for top

management tocontrol.

39





CHAPTER FIVE OVERVIEW :

CONTROLLING

1. DEFINITION OF CONTROLLING

2. IMPORTANCEOF CONTROLLING

3. STEPS IN THE CONTROL PROCESS

4. CHARACTERISTIC OF AN EFFECTIVE CONTROL

5. TYPES OF CONTROL

Learning objectives :

After completing this chapter student will be able to :

1. Understand the definition of controlling

2. Explain the importance of controlling in organization

3. Describe the steps in control process

4. Describe the types of control practiced

5. Apply the effective control system

CONTROLLING

41



5.0 Definition:

- The process to assure that actual activities conform to planed activities

( J.F stoner).

- The process of monitoring performance and taking action to ensuredesired results.

5.1 The Important of Controlling :

- Assist the management process- PLOC by determine what is necessary,

when and why it is required.

- Deals with the change, or uncertainty. Plans and goals set by organization

deals with future which is always uncertain and is constantly changing.

E.g market shift, product demand.

- Deals with complexity- As organization grow in size and diversity, they

become complex. Control is needed to coordinate activities andaccomplish integration.

- Deals with human limitation ( mistake) e.g wrong forecasts thus it help

tosspot mistake.

- Ensure delegation and decentralization are operate smoothly. Enable

managers to check on performance.

5.2 The control process.:

Establish standards and methods for measuring the performance standard. E.g

customer waiting time.

Measure the performance e.g R & D gas in the air. Its depend on the situation

Determine whether performance matches standards. If the performance match the

standard no corrective action is needed.

Take corrective action if the performance does not match the standard then

corrective actions may be include

5.3 Characteristics Of Effective System:

42



1. Accurate information-

Inaccurate will cause organization to make wrong decision.

2. Timely-

Information must be collected and evaluated quickly to enable managersto solve problems on time.

3. Objective and comprehensive-Standard set must be understandable and measurable. Focused on strategic

control points.(Strategic and results oriented)

4. Focus on strategic control points ( strategic and result oriented)

5. Flexible-

Individual judgment and is modified to fit new circumstance as they rise.

6. Consistent with the organization’s structure(organizational

realistic).Control must be exercised at all level of management.

5.4 Types Of Control ( Control Methods)

1. Pre – action control ( feed forward)

Control done at input level of production. To anticipate potential problems

and prevent them from occurring .e.g finance, human resource andmaterial resources.

2. Steering control

To spot problems as they develop or work process, take corrective actions

before final result are achieve. E.g zero inflation campaign.

3. Screening control ( yes or no control)

Check points before an activity proceeds further e.g bank procedure

approval of large amount of cheque.

4. Post action control

After an action is completed. Attempts to measure result of certain action.

If there are problem corrective, actions are done and applied to futureactivities. E.g restaurant will ask how you find your meal after you have

taken it.

ACTIVITY :

43



1. Why organization need to focus on controlling?

2. What are the basic relationship between controlling and other management functions?.

2. Discuss steps use in controlling?

REFERENCES :

1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6th

ed 2001, Prentice Hall.

2. Stoner, James A.F., Freeman Edwards R., Gilbert Jr. Daniel R,

Management, 6th and,1995, Prentice Hall.

3. Mondy, R. Wayne, Premeaux, Shane R. management Concepts, Practices

and skills . 6th edn,1993, Allyn and Bacon.

CHAPTER SIX OVERVIEW

44



TOTAL QUALITY MANAGEMENT

1. Definition of quality

2. The differences between Total quality management (TQM) and traditional

management.

3. History of TQM

4. A system approach in TQM


After completing this chapter student will be able to:

1. Understand the difference between TQM and traditional management.

2. Explain about the history of TQM

3. Familiar with the system approach in TQM.

4. Discuss the main ideas of Total quality management.

QUALITY

45





1. W. Edward Deming

2. Joseph M. Juran3. Philip B. Cosby

4. Kooru Ishikawa

W. Edward Deming Defines quality as predictable degree of uniformity anddependability, at low cost and suited to the market.

Quality improves, costs will decrease and productivity

increase, resulting more jobs.

Joseph M. Juran Fitness for use in terms of design conformance,

availability, safety and field use. Focuses on top downrather than worker pride and satisfaction.

Philip B. Cosby Quality is defined as conformance to requirements, notgoodness. The system for achieving quality is

prevention, not appraisal. The performance is zero

defect. The measurement of quality is the price of non-conformance.

Kooru Ishikawa Contributing to the emergence of quality circle, workers

meet to discuss suggestions for improvements.

Focusing on the total quality effort on customers. Outputof one department should be given to another

department.

6.4 THE MAIN IDEAS OF TQM:

TQM is a process of continuously improving quality over the long run. There are five

main TQM ideas

A system approach :

- Depends on understanding organizations as systems.

- Parts of the system must work to support each other.

Systems:- A series of functions or activities within an organization that work together for the aim of organization.

a) Culture system:

Referred as social system. ( set of beliefs and resulting behaviors that areshared throughout the organization).

47



b) Technical system:

Factors such as technologies in the physical infrastructure – include

ergonomics consideration, computer software, hardware configuration andcapital investments.

c) Management system:Define the effectiveness of those processes by which an organization

manages its human and physical assets.

6.5 THE THREE SYSTEM IN ORGANIZATION

The tool of TQM Kaoru Ishikawa determine a good or bad

outcome in Fishbone diagram – helps toshow possible causes of problems.

Benchmarking – comparing own products

and process against the very best in the

world.

A focus on customers Internal and external customers define

quality and employees produce it.

The role of management Effort from all levels supervisors to senior

executive making TQM success. Know

how to pass on authority and responsibilityto the people they work and put extra effort

to cooperate with other departments.

48

The managerial system

Managerial diagnosisManaging and checking

points

Policy deployment

Cross functional

Management goal setting

The technical system

Tools and techniques

The social system

Symbol, rewards, recognition.



Employee participation Empowerment. Letting employees make

decision at all levels of an organizationwithout asking for approval from

managers.

ACTIVITY :

1. What differ between traditional management and Total Quality Management?.

2. What are the main ideas of TQM?

2. Discuss the system approach in quality management?.

REFERENCES :

1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6th ed 2001, Prentice Hall.



3. Berry, T.H.1991. Managing the Total Quality Transformation. New York:

McGraw – Hill.

CHAPTER SEVEN OVERVIEW

49



DECISION MAKING

7.0 Definition of Decision Making

7.1 Types of decision making

7.2 Steps in decision making process

7.3 States of nature types and decision

7.4 Condition that affect decision making


After completing this chapter, student will be able to:

1. Explain what is decision making

2. Explain types of decision making

3. Apply all steps in decision making

4. Familiarize types of state of nature in decision making.

5. Know the condition that affect decision making

DECISION MAKING

50



7.0 DEFINITION

7- Process where a course is selected as the way to deal with a specific

problem.

- Selection of one alternative from two or more alternative.

7.1 THE NATURE OF MANAGERIAL DECISION MAKING

Decision making is one of the vital tasks of a manager e.g in planning, organizing,

controlling.Decision making is a process which affects all the manager’s operating functions.

The key to successful decision making depends on the proper formulation of the

specific problem at hand.

7.2 Types of decision making :

1. Programmed decisions

2. Non- program decision

PROGRAMMED DECISIONS

It is a repetitive decision that can be handle by a routine approach. It is usuallymade in accordance with some established habit, rule or procedure (STONER).

Grievances procedures for employees are an example of programmed decisions.

NON- PROGRAMMED DECISION

This is a type of decision that deals with a unique, unusual or exceptional

problems. The nature of the problem that occurs is unstructured and somethingdifferent. Eng is the selection and training of personnel.

e.g Nature of problems an decision making in organization

51



Highest level Un structured Non- programmed

Organizational

hierarchy

structured

lowest level

organizational levels nature of problem programmed

nature of decision making

Programmed decisions Non programmed decision

A repetitive decision that can be handle by

routine approach. Well structured situationsusing predetermine decision rules, related

rules and policies. E.g grievances

procedures for employees.

Unstructured, unique, unusual or

exceptional problem, requires a higher level management participation. E.g J.E.

Virus out break.

7.3 DECISION MAKING CONDITIONS

There are three different conditions under which decision are made. Each of those

conditions is based on degree to which the future outcome of a decision alternative is

predictable. These condition are:

1. Certainty

2. Risk

3. Uncertainty

CERTAINTY:

The decision maker knows the out-come of the problems. Individual are fully

informed in terms of :

- The nature of the problems

- Possible alternatives

- Result of alternatives

RISK

52



Future condition are unknown in advanced. Some information are available but

not enough to answer all questions and normally most of the management

decisions are made under this condition. Occurs in the situation in which anindividual can define as :

- Nature problems

- Possible alternatives

UNCERTAINTY

Individual cannot even assign subjective probabilities to possible state of nature

because the individual do have the information or intuitive judgment to use as

basis for assigning the probabilities to each state of nature.

7.1 STEPS IN DECISION MAKING

The understanding of the steps will enhance and improve the analytical and

decision making process.

Steps 1

- Investigate the situation.

- Define the problem- Diagnose the causes

- Identify decision objectives

Step 2

- Generate alternative solutions.- Consider as many alternatives as possible

Step 3

- Evaluate and choose among alternative solutions

- Once the possible solutions are developed, the decision maker has to

examine the probable desirable and undesirable consequences of eachalternative.

Step 4

- Implement and monitor the chosen solution

- Design the implementation for the chosen situation. Decision makersresponsible for reviewing the plan periodically and comparing the actual

performance with the planned solutions.

7.2 State Of Nature Types And Decisions

53



Routine Adaptive Innovative

Decisions decision decision

Certainty Uncertainty

Objective probabilities Subjective probabilities

RISK CONTINUUM

Routine :

Choices made in response to relatively well known problems. Solution obtained from

standard rules, operating procedures and computer programs.

Adaptive:

Combination of moderately. Unusual and partially known problems and alternative

solutions that are modifications of other known and well define solutions.

Innovative:

Involve combining the discovery, identification and diagnosis of unusual and ambiguous

problems with the unique. Novel and creative alternative solutions.- Represents a series of mini decisions made over a period of months or

several years.

- Represents an individual decision, involve many people, many and varioustime.

- Do not unfold in a logical, orderly sequence.

- Made in the midst of a lot other managerial tasks.

Differences:

ROUTINE ADAPTIVE INNOVATIVE

Made under conditions of certainty, low level risk

Moderate levels of uncertainty and risk.

High levels of risks andcertainty.

7.3 CONDITION THAT AFFECT DECISION MAKING

54





3. Search for alternative solutions

Seeking additional information, thinking creative, consulting experts,undertaking.

4 Compare and evaluate alternative solutions.Emphasizes expected results, including relative cost of each alternatives.

5. Choose among alternative solution.Final choice

6. Implement the solution selected.

ACTIVITY :

1. Discuss two types of decision making?.

2. What are the condition that affect the decision making?.

3. Explain the step use in decision making?.

REFERENCES :

1. Stephen P. Robbins, David A. Decenzo, Fundamental of Management, 6th

ed 2001, Prentice Hall.



CHAPTER EIGHT OVERVIEW

56



LEADERSHIP

7.0 DEFINITION OF LEADERSHIP

7.1 IMPORTANCE OF LEADERSHIP IN ORGANIZATION

7.2 TRAIT THEORIES OF LEADERSHIP

7.3 BEHAVIORAL THEORIES OF LEADERSHIP

7.4 LEADERSHIP FUNCTIONS

7.5 LEADERSHIP STYLES

7.6 MANAGERIAL GRID (Leadership grid)

7.7 CONTINGENCY APPROACH/ SITUATIONAL FACTORS INFLUENCING

MANAGERIAL STYLE.

7.8 PATH GOAL THEORY


After completing this chapter, student will be able to:

1. Define what is leadership

2. Explain the importance of leadership in organization

3. Recognize several theories of leadership .

4. Identify several leadership styles practice in organization.

5. Familiarize with factors that influence managerial style.

LEADERSHIP

57



8.0 Definition :

Process of directing and influencing the tasks related activities of group members.( stoner, J.A.F, management, Prentice Hall, New Jersey, 6th edition)

The process of directing human resource efforts toward organizational objectives( Schermerhorn, John, R ., Management for productivity, John Wiley and Sons,2nd edn)

Four important facts are:

1) Involves people- employer and employees.

2) Involve unequal distribution of power between leaders and group members

3) Involves the ability to use the different forms of power to influence, reward,

referent, expert power and legitimate power or authority.

5) About values – Moral, obligation and

responsibilities towards employees.

8.1 Importance to organization

1) Make contribution to organization

2) Enhance and elicit cooperation

3) Encourage teamwork

4) Motivate employee to generate good work.

8.2 Trait theories of Leadership:

The average person’s definition of leadership are :

- Evaluation and selection of leaders are based on their physical, mental and

psychological characteristics. Qualities such as intelligence, charisma,decisiveness, enthusiasm, strength, bravery, integrity and self confidence.

- Leaders have certain inborn personality or leaders are born with certaincharacteristic.

58



Set of Traits that differentiate leaders:

Traits of leaders and non- leaders Traits of effective leaders and non-

effective leaders.

Physical appearance, charisma,, mentalability, behavior/attitude, personalityfactors.

Intelligence, self assurance andmanagerial supervisory ability.

RESULT

Traits of leaders and non- leaders Traits of Effective leaders and non-

Effective leaders

Cannot point out the differences between Does not depend upon particular set

of

leader and followers, Traits can be gained traits. It depends on how well theleaders

through learning process traits match the requirement of the

situation that / she is in.

The traits theory failed to isolate prominent traits to distinguish between leadersand non- leaders.

8.3 BEHAVIORAL THEORIES OF LEADERSHIP

This theory is believe that people can learn the characteristic of a leader or peoplecan be train to be a leader. Two aspects of leadership behavior :

- Leadership function

- Leadership styles

8.4 LEADERSHIP FUNCTION:

Considered to be effective when practices these functions:

- Task related/ problem solving function. E.g suggesting solutions, offeringinformation, opinion, counseling.

- Group maintenance/ social function. Help the group to operate smoothly.E.g agreeing the work performed by his/ her workers practice empathy or

sensitive to her/his subordinate’s feeling.

An effective leader must performs both functions simultaneously.

59



8.5 LEADERSHIP STYLES :

Generate into two different leadership styles :

1. Task oriented function/ production centered.Concern on getting the job done to her / his satisfaction rather than

develop or employee growth.

- Plan and defines work to be done

- Assigns task responsibilities- Sets clear work standards

- Urges task completion and monitor results

- Supervise employee.

2. Employee oriented/ people centered.

Managers try motivate rather than control the employees. Encourage to

participate in decision making. Trust and respect are developed. This show

high amount of consideration towards employee’s ideas and feelings.

Characteristic of Manager:

- Warmth and has special rapport with subordinates.

- Respect, sensitivity to other’s needs and mutual trust.

8.6 MANAGERIAL GRID ( leadership grid)

Developed by Robert Blake and Jane Mouton. It concern for both employee-

oriented and task oriented styles of leadership to be practiced simultaneously.

60



The Managerial Grid

High ( 1.9) (9.9)

ConcernFor people

5.5

(1.1) (9.1)

Concern for production

Managerial grid identifies five leadership behaviors :-

1.1 Impoverished management Little concern for either people or

production- Laissez- fair

1.9 Country club management Full attention to people’s need but lowconcern for production.

5.5 Middle of the road Moderate concern for people and production

9.1 Autocratic/ authoritarian/ Task

management

High concern for production and low

concern for people. Leaders want work

schedule to be followed at all costs.

( Autocratic)

9.9 Team/ participation/democratic/supportive

management.

High concern for people and productionrelationships. Work accomplishment.

Managers concern for feeling and interests of

the group members. ( Democratic)

61



8.7 CONTINGENCY APPROACH/ SITUATIONAL APPROACH

Focuses on situational factors influencing managerial style.It tries to identify :

- Find out whether there is any leadership style appropriate in particular situation.

- Identify which style is most important at any circumstances.

- Predict leadership style that will be most effective.

Result from theory:

- No one leadership style appropriate in all situations.- Leadership behavior depends on situation such as leader- member

relationship, task structure, position power, employee’s characteristic,

experience, expectation, organization culture and policies.

Two leadership models developed:

1) Path goal model

2) Life- cycle or situational approach.

8.7.1 . PATH GOAL THEORY

Path goal Model – By Robert J. House Life – Cycle theory or situational approach

( by Paul Hersey and Kenneth Blancard)

Leader :- Make valued or desired

rewards.- Clarify to employees the

kind of behavior

- Behavior will contribute toemployees satisfaction.

- Increase goal attainment

- Clearly defines jobrequirements, provide

training, assist employees.

Source for rewards. E.g leaders givedirective, supportive, participativeand achievement oriented.

Employees attributes ability, open

minded, self control and experience.

Leader :- Must change style of leadership

according to level of maturity of employeesand demands of situation.

62



Path goal theory will enable managers to influence their subordinates by :

a) Activating subordinates needs for rewards over which the leader hascontrol e.g A leader explaining to employee how they can qualify for

overtime pay.

b) Increasing rewards to employees who achieve goals, e.g Recognition and

praises.

c) Making the path to rewards easier through coaching and direction. E.g

training, helping them to reaching goals.

d) Reducing frustration barriers to reach goals. E.g leader replace newequipment.

8.7.2 LIFE –CYCLE OR SITUATONAL APPROACH

Developed by Hersey and Kenneth Blanchard. This theory says that a leader

should change his style of leadership according to the level of maturity of his

employee and the demands of situation of the situation.

Life – cycle Theory

high

Phase 3

High R/ship

Low Tasks

Phase 2

High Task

High R/Ship

Phase 4

Low Tasks

Low R/ ship

Phase 1

High Task

Low R/ ship

LowLow High

Task Behavior

Maturity Immature

High Moderate Low

63





ACTIVITY

1. Discuss the relationship between leadership and management?

2. If you a boss in any organization, what leadership style you may practice?

3. In what way leader can increase productivity?.

REFERENCES :

1. Robert Blake and Jane S. Mouton, The managerial grid III,1985 Houston : Gulf

Publishing.

2. Robbins, Stephen P, Management 6

th

edn 2001, Prentice Hall.

3. Mondy, R. Wayne, Premeaux, Shane R. Management Concepts, Practices andSkills, 6th edn 1993, Allyu and Bacon.

65



CHAPTER NINE OVERVIEW

MOTIVATION:

9.0 DEFINITION

9.1 MOTIVATION PROCESS

9.2 EARLY VIEWS OF MOTIVATION

9.3 CONTEMPORARY THEORIES OF MOTIVATION

- Hierarchy of needs- Theory X and theory Y

- Life cycle theory or Situational approach

- Two factors theory


After completing this chapter, you should be able to :

1. Explain the concepts of motivation and its significance in the managerial process.

2. Understand and apply contemporary theories of motivation.

66





There are three early views of motivation. They are :-

1. The traditional model, associated with Frederick W. Taylor and Scientific

Management.

2. The Human Relation Model, which related to Elton Mayo and Hawthorne

studies.

3. The Human Resources Model, Associated with Doughlas Mc Gregor’s Theory

X and Theory Y.

Traditional Model Human Relation

Model

Human Resources

Model

Assumes 1) Work us

inherently

distasteful to most people.

2) What people do

is less important

rather than whatthey learn for

doing it.

3) Few peoplewant to work to

involve in work

that requires

creativity, self direction or self

control.

1)People want to

feel useful.

2) Need to belong

to a group,

organization to be

recognized.

1.People want to

contribute to

meaningful goals.

2. Most people

exercise more

creativity, self direction and self

control than their

present job demand.

Management policies 1.Manager should

closely supervise

and controlsubordinates.

2.Manager must break down task

into simple,

repetitive, easilylearned

operations.

3. Must establish

detailed work routine and

procedures

1.Manager should

make each worker

feel useful

2.Should keep

subordinatesinformed and

listen to their

objectives.

3. Allow

subordinates to

exercise self control and self

direction on

routine matters.

1.Manager make use

of under utilized

human resources.

2.Create environment

where members cancontribute.

3. encourage full participation.

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General expectations 1.People can

tolerate work if pay is decent and

boss is fair.

2. If tasks aresimple, people are

closely controlledthey will produce

work that is up to

standard.

1. Sharing

information withsubordinate and

involving them in

routine decisions

will satisfy their basic needs to

belong and to feelimportant.

1.Expanding

subordinates influenceself direction and self

control will lead to

direct improvement.

2. Work satisfactionmay improve as a ‘ by

product” osubordinates making

full use of their

resources.

9.4 CONTEMPORARY THEORIES OF MOTIVATION

a) Need theory or Content theory

b) Process theory

c) Reinforcement theory

A) NEED THEORY OR CONTENT THEORY

People need or require to live fulfilling lives, particularly with regard to

work. A person will be motivated when she or he has not yet attained

satisfaction with their life. Need vary among individuals. This is because

people are different in nature. ( Hierarchy of needs)

B) PROCESS THEORY

Process where individuals give meaning to rewards that will allow them to

influence their behavior or process theory explain how individuals are

motivated or the steps that occur when individuals are motivated.( Herzberg two factors theory/ hygiene theory)

C) REINFORCEMENT THEORY

Describes how people learn patterns of behavior based on environmental

reinforcements. This means behavior with positive consequences tends to be repeated, vise versa.( Theory X and Y.)

9.4.1 HIERARCHY OF NEEDS

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The factors that will contribute to employee’s satisfaction will be the satisfaction

factor. Therefore, the managerial implications associated with the two factor

theory are:

1. Improvements made in the hygiene factors can prevent or eliminate job

dissatisfaction. However, they will not improve job satisfaction.

2. Improvements made in the satisfier factors can increase job satisfaction.

However they will not prevent job dissatisfaction.

To motivate, managers need to turn their attention away from hygiene factors and

focus on improving satisfier factors.

9.4.3 THEORY X AND THEORY Y

This theory was developed by Douglas Mc Gregor. This theory describes the

views or perception of managers with regard to their employees.

Managers of theory X view the employees in terms of the following

characteristics:

1. Inherently disliking work

2. Avoiding work whenever possible

3. Lacking in ambition4. Irresponsible

5. Resistant to change

6. Feeling that work is of secondary importance7. Preferring to be led than lead.

8. Having to be pushed by managers to work.

Here managers have a traditional or a pessimistic view of motivation with regard

to employees. These managers in order to make sure that their employees do their

work, have to apply the autocratic style of leadership where the employee have to

be constantly directed and controlled. Coercive power will be used.

Theory Y managers, view their employees in terms of the following

characteristics:

1. Willing to work; work is as natural as play or rest.

2. Willing to accept responsibility, since work brings satisfaction.3. Capable of directing themselves ( self direction)

4. Capable of self –control

5. Frequently using imagination, ingenuity and creativity in accomplishing

tasks.

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Theory T is optimistic view. To ensure high performance, managers need only to

apply the participative style of leadership, where employees are allowed more

participation, freedom and responsibility in their work. Theory Y manager willdelegate the authority and allow employees to participate in decision making.

Greater job autonomy and task-variety is offered to employees.

ACTIVITY

1. Discuss how Herzberg two factors theory help in motivating employees?

2. If you a manager, What can you do to motivate your staf?.

REFERENCES :

1. Petri, H.L. (1990), Motivation, Theory, Research and Application 3rd edn,

Belmont,C.A: Wadsworth Publishing.

2. Holt. David H., Management, Principles and Practices, 3rd edn. Prentice

Hall, New Jersey,1993.

3. Schermerhorn, John R., Management for Productivity, 2nd edn, John Wiley

and Sons.

4. Stoner, J.A.F., Freeman, Edward R., and Gilbert, Daniel Jr.,Management,

6th edn, Prentice Hall, 1995.

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COMMUNICATION

10.0 DEFINITIONS :

Webster’s dictionary “ the arts of expressing ideas”. The science of transmittinginformation.

OR

Oxford English dictionary – Imparting, conveying or exchange of ideas,knowledge etc.. by speech, writing or sign, bringing in with exchange.

OR

The process by which people seek to share meaning via the transmission of symbolic messages.

In organization – Disseminating of information through memos, letters, reports

and newsletters. Discuss face to face meeting. Organizational communication.

Process of sending and receiving messages among individuals and groups calledinterpersonal communication.

10.1 IMPORTANCE OF EFFECTIVE COMMUNICATION

Convey information

Giving instruction/ commanding actionPersuading or influencing change

1. Management function- PLOC requires effective communication.

2. Everyone in the organization need to be informed of the objectives and

goals of the organization.

3. Assist managers coordinating and integrating the work groups.

4. Employees need information to conduct tasks.

5. In leading and motivating managers need to inform employees of doing

the right tasks, allocating and correcting mistakes.

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Managers is considered effective in his instruction when employees acts

according to instructions.

10.2 COMMUNICATION PROCESS

Classic model of communication developed by Shannon based on fine question-

who—says what---- in what way -----to whom----with what effect.

Noise Noise

Sender encording message decording Receiver

Medium

Noise

Feedback

Sender : Person with information to communicate

Encoding : Ways in which the information is expressed. E.g spokenEnglish .

Medium : From in which the message is. The telephone

Message : The information itself as encoded by the sender. E.g I’m

looking for a place on PR course.

Decoding : Interpretation- The receiver’s thought process on getting

The message.

Receiver : Person who receive the information. E.g switch board

Operator.

Feedback : The element of the receiver’s response which the receiver

communicates to the sender. E.g that course is full.

Noise : Any kind of interference which results in distortion. So that

the receiver gets a different message from the one that was

sent e.g incomplete information.

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10.3 FORMAL COMMUNICATION

Information flows around organization whether or not they try to control it.

a) Vertical communication:Downward- In the form of instruction and information e.g policies,

procedures, rules, work schedules.

Upward – through suggestion schemes or some other form of feedback tomanagement. Convey info to their superior.

b) Lateral communication

Horizontal communication- at the same level.

INFORMAL COMMUNICATION

- Grapevines between individuals and groups can be job related or

personal.

- Information can be accurate/ inaccurate

Four types of chains show how individuals convey information.

Single strand Gossip probability Cluster

Z

D

C

B

A

D E F G H T

I

A

L M N

K

J S X

A

B

J

B I

D F

C A

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10.4 LEVEL OF COMMUNICATION

1. Intrapersonal communication

Between you and god

2. Interpersonal communication

Deals with communication between people usually face to face.

3. Group communication

Relates to the interaction of people in a small groups, usually in

decision making setting.

4. Organizational communicationOccurs in large cooperative networks and include virtually all aspects

of both interpersonal and group communication.

5. Mass Communication

Deals with public communication . Received by or used by large

number of people ( postal service, internet etc)

10.5 ORGANIZATION INVEST IN COMMUNICATION FOR SOUND

BUSINESS REASON.

1. Effective employee performance

2. Manageability

3. Sharp- end feedback

4. Motivation

5. Team spirit

6. Crisis preparation

7. Participative staff

8. Good relation with its public

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10.8 OVERCOMING COMMUNICATION BARRIERS

1. Obtain feedback

Ask question, repeat message, visit site.

2. Use simple language

Technical terms must be clearly explained

3. Recognized emotions

Empathy

4. Do not make own conclusion

Listen to all issues carefully

5. Avoid noise

Identify it cause or sources.

6. Understand verbal and non- verbal communication

Facial expression, clothes, postures and gestures.

7. Create openness, rational and trust

Instill an atmosphere of openness.

8. Send message in an effective way

a- Plan and clarify ideas before communicating b- Be specific

c- Use bias free language

d- Modify language and use words appropriate.

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ACTIVITY :

1. For what reason organization invest in communication?.

2. Explain the important of the two communication channels in organization?.

3. Effective communication importance to organization, Discuss how

organization overcome ineffective communication process.

REFERENCES :

1. Holt. David H., Management, Principles and Practices, 3rd edn. Prentice

Hall, New Jersey,1993.

2. Schermerhorn, John R., Management for Productivity, 2nd edn, John Wiley

and Sons.

3. Stoner, J.A.F., Freeman, Edward R., and Gilbert, Daniel Jr., Management,

6th edn, Prentice Hall, 1995.

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Documents

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