Upload
duongxuyen
View
214
Download
2
Embed Size (px)
Citation preview
M A N A G E M E N T F U N D A M E N T A L SI N T R O D U C T I O N T O M A N A G E M E N T
G R A D U A T E D I P L O M A I N M A N A G E M E N T
M A N A G I N G I NT U R B U L E N T T I M E S
24/03/2017 GDM 401 PB: HDM16/06/2016 GDM 401 PB: HDM16/06/2016 GDM 401 PB: HDM
INTRODUCTION TO ORGANISATIONS• A group of people working together to over a period of time to achieve a common goal or an
objective.
24/03/2017 GDM 401 PB: HDM16/06/2016 GDM 401 PB: HDM16/06/2016 GDM 401 PB: HDM
CLASSIFICATION OF ORGANISATIONS
24/03/2017 GDM 401 PB: HDM
Organisations
Objective
Profit
Non Profit
Size
Large
Small
Ownership
Private
Public
16/06/2016 GDM 401 PB: HDM16/06/2016 GDM 401 PB: HDM
WHAT IS MANAGEMENT?
• Manager : Someone who get things done with the aidof people and other resources.
• Management : Attainment of organisational goals inan effective and efficient manner through planning,organising, leading and controlling organisationalresources.
24/03/2017 GDM 401 PB: HDM16/06/2016 GDM 401 PB: HDM16/06/2016 GDM 401 PB: HDM
WHAT MANAGERS DO?
16/06/2016 GDM 401 PB: HDM16/06/2016 GDM 401 PB: HDM
MANAGEMENT PROCESS
16/06/2016 GDM 401 PB: HDM
Planning
Organising
Leading
Controlling
Resources•Human•Financial•Raw Materials•Technology•Information
Performance•Attain goals•Products•Services•Efficiency•Effectiveness
16/06/2016 GDM 401 PB: HDM
MANAGEMENT FUNCTIONS• Planning : Planning means identifying goals for future, organisational performance and deciding
on the tasks and use of resources needed to attain them.
• Organising : Organising involves assigning tasks, grouping tasks in to departments, delegating
authority and allocating resources across the organisation.
• Leading : Use influence to motivate employees to achieve organisational goals.
• Controlling : Monitoring employees’ activities, determining whether the organisation is on target
towards its goal, and making corrections necessary.
16/06/2016 GDM 401 PB: HDM16/06/2016 GDM 401 PB: HDM
MANAGEMENT TYPES• Vertical
– Top management are responsible for the entire organisation : President, chairperson, executive
directory, chief executive officer (CEO) etc.
– Middle managers are responsible for business units : Departmental head, Divisional head, Manager of
quality control etc.
– First line managers are responsible for production of goods and services : Supervisor, line manager,
section chief, office manager etc.
• Horizontal
– Functional managers are responsible for departments that perform specific tasks : advertising, sales,
finance, human resources etc.
– General managers are responsible for several departments16/06/2016 GDM 401 PB: HDM
LEVELS OF MANAGEMENT
16/06/2016 GDM 401 PB: HDM
MANAGERIAL SKILLS
• Three categories of skills: Conceptual skills, Human skills and Technical skills.
• The degree of these skills may vary.
• The application of management skills change as manager moves up the hierarchy.
16/06/201616/06/2016 GDM 401 PB: HDM
MANAGERIAL SKILLS CONTD.
• Technical skills: Ability to use tools, techniques and
specialised knowledge.
• Human relations skills (Inter personal skills): Ability to work
effectively with people.
• Conceptual skills: Ability to see the organisation as a whole
and solve problems to benefit the total system.
16/06/2016 GDM 401 PB: HDM16/06/2016 GDM 401 PB: HDM
RELATIONSHIP OF SKILLS TO MANAGEMENT
16/06/2016 GDM 401 PB: HDM16/06/2016 GDM 401 PB: HDM
WHEN SKILLS FAIL
• Unethical behaviour
• During turbulent times, managers must apply their skills
• Common management failures:
– Not listening to customers
– Misinterpreting signals from marketplace
– Not building teams
– Inability to execute strategies
– Failure to comprehend and adapt to change
– Poor communication and interpersonal skills
16/06/2016 GDM 401 PB: HDM16/06/2016 GDM 401 PB: HDM
INNOVATIVE MANAGEMENT FOR THE NEW WORKPLACE
• Rapid environmental shifts:
– Technology
– Globalisation
– Shifting social values
16/06/2016 GDM 401 PB: HDM16/06/2016 GDM 401 PB: HDM
MANAGERIAL ROLES
• A role is a set of expectations for a managers’ behaviour
16/06/2016 GDM 401 PB: HDM
Informational Interpersonal Decisional
16/06/2016 GDM 401 PB: HDM
MANAGERIAL ROLES CONTD.
16/06/2016 GDM 401 PB: HDM
Informational• Monitor• Disseminator• Spokesperson
Interpersonal• Figurehead• Leader• Liaison
Decisional• Entrepreneur• Disturbance handler• Resource allocator• Negotiator
16/06/2016 GDM 401 PB: HDM
MANAGERIAL ROLES CONTD.
16/06/2016 GDM 401 PB: HDM
Role Activity Examples
Monitor Seek and acquire work related information Scan/read trade press, periodicals,
reports; attend seminars and training;
maintain professional contacts
Disseminator Communicate/ disseminate information to others within
the organization
Send memos and reports; informs
staff and subordinates of decisions
Spokesperson Communicate/transmit information to others outside the
organization
Pass on memos, reports and
informational materials; participate in
conferences/ meetings
16/06/2016 GDM 401 PB: HDM
MANAGERIAL ROLES CONTD.
16/06/2016 GDM 401 PB: HDM
Role Activity Examples
Figurehead Perform social and legal duties, act as symbolic leader Greet visitors, sign legal documents,
attend ribbon cutting ceremonies,
host receptions etc.
Leader Direct and motivate subordinates, select and train
employees
Include almost all interactions with
subordinates
Liaison Establish and maintain contacts within and outside the
organization
Business correspondence,
participation in meetings with
representatives of other divisions or
organizations.
16/06/2016 GDM 401 PB: HDM
MANAGERIAL ROLES CONTD.
16/06/2016 GDM 401 PB: HDM
Role Activity Examples
Entrepreneur Identify new ideas and initiate improvement projects Implement innovations; plan for the
future
Disturbance
handler
Deals with disputes or problems and takes
corrective action
Settle conflicts between subordinates;
Choose strategic alternatives; Overcome
crisis situations
Resource allocator Decide where to apply resources Draft and approve of plans, schedules,
budgets; set priorities
Negotiator Defends business interests Participates in and directs negotiations
within team, department, and
organisation
16/06/2016 GDM 401 PB: HDM
T H E E V O L U T I O N O FM A N A G E M E N T
16/06/2016 GDM 401 PB: HDM
16/06/2016 GDM 401 PB: HDM
During 1776, using the pin
industry
Discussed about the
economic advantage that
could be generated through
division of labour or job
specialization.
16/06/2016 GDM 401 PB: HDM
Late 18th century and beginning
of 19th century Industrial
Revolution
Human Capital was substituted
by machinery
Large organizations required
formal theories to run the
organizations
CLASSICAL PERSPECTIVE
16/06/2016 GDM 401 PB: HDM
INTRODUCTION TO CLASSICALPERSPECTIVE
16/06/2016 GDM 401 PB: HDM
Early on the 20th Century
Focusses on making the organisation efficient as possible
Scientific Management : Frederick Winslow Taylor &
Frank and Lillian Gilbreth
Administrative Principles : Henri Fayol & Max Weber
SCIENTIFIC MANAGEMENT: TAYLOR 1856-1915
16/06/2016 GDM 401 PB: HDM
SCIENTIFIC MANAGEMENT CONTD.
• Developed during late 1800s by FrederickWinslow Taylor.
• Frederick Taylor is known as the father of thescientific management.
• Proposed that employees could be retooledlike machineries to enhance productivity.
16/06/2016 GDM 401 PB: HDM
SCIENTIFIC MANAGEMENT CONTD.
16/06/2016 GDM 401 PB: HDM
Criticisms
• Did not appreciate the social
context of work and higher needs
of workers.
• Did not acknowledge variance
among individuals.
• Tended to regard workers as
uninformed and ignored their
ideas and suggestions.
Contributions
• Demonstrate the importance of
compensation for performance.
• Initiated the careful study of
tasks and job.
• Demonstrated the importance of
personnel selection and training.
General approach• Developed standard method for
performing each job.• Selected workers with
appropriate abilities for each job• Trained workers in standard
method• Supported workers by planning
work and eliminatinginterruptions.
• Provided wage incentives toworkers for increased output
GENERAL ADMINISTRATIVE THEORY
• Focused more on what managers do and what constitute good management practice.
• Focused on all levels of managers whereas Taylor focused only on first line managers.
16/06/2016 GDM 401 PB: HDM
ADMINISTRATIVE PRINCIPLES
• Contributor : Henry Fayol
• Focus :– Management is a common endeavour to all businesses.
– Fundamental rules of management that could be applied to all organisational situations.
16/06/2016 GDM 401 PB: HDM
14 ADMINISTRATIVE PRINCIPLES• Division of work : Specialization increases output by making employees more efficient.
• Authority : Managers must be able to give orders, and authority gives them the right.
• Discipline : Employees must obey and respect the rules that govern the organisation.
• Unity of command : Every employee should receive orders from only one superior.
• Unity of direction : The organisation should have a single plan of action to guide managers and workers.
• Subordination of individual interest to the general interest : The interest of any one employee or group of
employees should not take precedence over the interest of the organization as a whole.
• Remuneration : Workers must be paid a fair wage for their service.
• Centralization : This term refers to the degree to which subordinates are involved in decision making.
16/06/2016 GDM 401 PB: HDM
14 ADMINISTRATIVE PRINCIPLES CONTD.
• Scalar chain : The line of authority from top management to the lowest ranks is the scalar chain.
• Order : People and materials should be in the right place at the right time.
• Equity : Managers should be kind and fair to their subordinates
• Stability of tenure of personnel : Management should provide orderly personnel planning and
ensure that replacements are available to fill vacancies.
• Initiative : Employees are allowed to originate and carry out plans will exert high levels of effort.
• Esprit de corps : Promoting team spirit will build harmony and unity within the organization.
16/06/2016 GDM 401 PB: HDM
BUREAUCRATIC ORGANISATIONS
• Introduced by Max Weber (1864-1920) : German sociologist
• He developed a theory of authority structures and relations based
on an ideal type of organisation he called a bureaucracy – a form of
organisation characterized by division of labour, a clearly defined
hierarchy, detailed rules and regulations and impersonal
relationships.
16/06/2016 GDM 401 PB: HDM
BUREAUCRATIC ORGANISATIONS
16/06/2016
Division of laborwith Clear definitions of
authority and responsibility
Positions organizedin a hierarchy of authority
Personnel are selectedand promoted based
on technicalqualifications
Administrative actsand decisions recorded
in writing
Managers subject toRules and procedures
that will ensure reliablepredictable behavior
Management separatefrom the ownershipof the organization
16/06/2016 GDM 401 PB: HDM
HUMANISTIC PERSPECTIVE/BEHAVIOURAL APPROACH
16/06/2016 GDM 401 PB: HDM
HUMANISTIC PERSPECTIVE: EARLY ADVOCATES
• Mary Parker Follett and Chester Barnard
• Understand human behaviors, needs, and attitudes in the workplace
• Importance of people rather than engineering techniques: contrast to scientific
management
• Empowerment: facilitating instead of controlling
• Recognition of the informal organisation
• Introduced acceptance theory of authority
16/06/2016 GDM 401 PB: HDM
HUMANISTIC PERSPECTIVE: HUMAN RELATIONSMOVEMENT
• Effective work comes from within the
employee
• Human relations is the key variable in
increasing performance
• Employees performed better when
managers treated them positively
• Combine motivation with job design
16/06/2016 GDM 401 PB: HDM
Elton Mayo conducted theexperiment in Western Electric
Hawthorne, Illinois plant in 1982
Based on Hawthorne Studies:Money does not cause increased
output.Human relations increased
output
HUMANISTIC PERSPECTIVE: BEHAVIOURALSCIENCE APPROACH
• Use scientific methods which combines sociology, psychology, anthropology, economics
and other social sciences disciplines to develop theories on human behavior in an
organisation.
• Organisational Development – field that uses behavioral sciences to improve the
organisation
• Other strategies based on behavioral science:
– Matrix Organisations
– Self-Managed Teams
– Corporate Culture
16/06/2016 GDM 401 PB: HDM
QUANTITATIVE PERSPECTIVE
16/06/2016 GDM 401 PB: HDM
Standing in a long, snacking line with impatient children isn’t a parent’s idea of a good time. The Walt Disney Company
used quantitative techniques to develop FASTPASS, a sophisticated computerized system that spares parents the ordeal
for the most popular rides. Disney theme parks have machines that issue coupons with a return time that’s been
calculated based on the number of people standing in the actual line, the number who have already obtained passes, and
each rider’s capacity.
QUANTITATIVE PERSPECTIVE
• Emerged after WW II
• Applied mathematics, statistics and other quantitative techniques to managerial problems.
• Subsets of the quantitative approach
– Operations research – mathematical modelling
– Operations management – specialised in physical production of goods and services
– Information technology –reflected in management information systems
– Emerged systems such as linear programming, quality management, capital asset
pricing model, work scheduling, EOQ etc.
16/06/2016 GDM 401 PB: HDM
RECENT TRENDS
16/06/2016 GDM 401 PB: HDM
Systems thinking
Contingency view
Total quality management
01. SYSTEMS THINKING• A system is a set of interrelated parts that function as a whole to achieve a common purpose.
• Closed systems : Not influenced by and do not interact with the environment.
• Open systems : Influenced by and do interact with their environment.
• Organisations are made up of interdependent factors such as individual goals, attitude, motives,
formal structures, goals and authority.
• Systems thinking ensures:
– Managers’ coordinate work activities in the various parts of the organisation.
– That decisions and actions in one organisational area will affect other areas
– That organisations are not self contained and they will rely on the environment for essential
inputs and as outlets to absorb their outputs.
16/06/2016 GDM 401 PB: HDM
02. CONTINGENCY VIEW
• Successful resolution of organizational problems is thought to depend on managers’
identification of key variations in the situation at hand
16/06/2016 GDM 401 PB: HDM
03.TOTAL QUALITY MANAGEMENT
• Father of quality is known as Edwards Deming
• Focuses on delivering better quality to the customers through high quality
values through every activity within a company.
• Elements of quality management;
– Focus on the customer
– Continuous improvement
– Process focussed
– Accurate measurement
– Empowerment of employees
16/06/2016 GDM 401 PB: HDM
INNOVATIVE MANAGEMENT: THINKING FOR ACHANGING WORLD
• Management ideas trace their roots to historical
perspectives
• New ideas continue to emerge to meet the changing
needs and difficult times
• The shelf life of trends is getting shorter and new ideas
peak in fewer than three years
16/06/2016 GDM 401 PB: HDM
MANAGING THE TECHNOLOGY DRIVENWORKPLACE
• Customer Relationship Management – technology used to build relationships with customers
• Outsourcing – contracting functions or activities to other organisations to cut costs
• Supply Chain Management – managing supplier and purchaser relationships to get goods to
consumers
16/06/2016 GDM 401 PB: HDM
THANK YOU!16/06/2016 GDM 401 PB: HDM