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Principles Of Management
Assignment: 1
Mmoniemang Motsele:
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Question 1: What do you understand by term “Management”?
Definitions of Management
From my understanding I think Management means to get the work done through others
by most advantageous utilization of all available resources depending upon their ability
& capability. Resources include the use and direction of human resources, financial
resources, technological resources, and natural resources.
Levels of management
Two leaders may serve as managers within the same company but have very different
titles and purposes. Large organizations, in particular, may break down management
into different levels because so many more people need to be managed. Typical
management levels fall into the following categories:
Top level: Managers at this level ensure that major performance objectives are
established and accomplished. Common job titles for top managers include Chief
Executive Officer (CEO), Chief Operating Officer (COO), President, and Vice
President. These senior managers are considered executives, responsible for the
performance of an organization as a whole or for one of its significant parts.
Top management lays down the objectives and broad policies of the enterprise.
It issues necessary instructions for preparation of department budgets,
procedures, schedules etc.
It prepares strategic plans & policies for the enterprise.
It appoints the executive for middle level i.e. departmental managers.
It controls & coordinates the activities of all the departments.
It is also responsible for maintaining a contact with the outside world.
It provides guidance and direction.
The top management is also responsible towards the shareholders for the
performance of the enterprise.
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Middle level: Middle managers report to top managers and are in charge of
relatively large departments or divisions consisting of several smaller units.
Examples of middle managers include clinic directors in hospitals; deans in
universities; and division managers, plant managers, and branch sales managers
in businesses. Middle managers develop and implement action plans consistent
with company objectives, such as increasing market presence. Their role can be
emphasized as –
They execute the plans of the organization in accordance with the policies and
directives of the top management.
They make plans for the sub-units of the organization.
They participate in employment & training of lower level management.
They interpret and explain policies from top level management to lower level.
They are responsible for coordinating the activities within the division or
department.
It also sends important reports and other important data to top level
management.
They are also responsible for inspiring lower level managers towards better
performance.
They evaluate performance of junior managers
Low level: The initial management job that most people attain is typically a first-line
management position, such as a team leader or supervisor — a person in charge of
smaller work units composed of hands-on workers. Job titles for these first-line
managers vary greatly, but include such designations as department head, group
leader, and unit leader. First-line managers ensure that their work teams or units meet
performance objectives, such as producing a set number of items at a given quality, that
are consistent with the plans of middle and top management. Their activities include –
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Managerial roles:
Managers in various organizations perform many roles, so that they can assist the
organization to achieve its goals. To meet the many demands of performing their
functions, managers assume multiple roles. A manager must perform certain functions
and assumes certain responsibilities for any organization. A role is an organized set of
behaviors.
Henry Mintzberg: has identified ten roles common to the work of managers. The ten
roles are divided into three groups: interpersonal, informational, and decisional. The
informational roles link all managerial work together. The interpersonal role ensures that
information is provided. The decisional roles make significant use of the information
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Discuss F. W. Taylor’s contribution to the development of management as a
discipline
F W Taylor is termed as the father of scientific management and his prime contribution
in the area of management is the founding of efficiency movement and also the start of
the progressive era.
He is best known in the world of management for his study of time and motion. What he
put forward was to break the job into many component parts and then measure each of
them to the hundredth of a minute.
He believed that the management of that era was unprofessional and he supported that
it should be taught as a separate discipline and to get the best result from the work
force there should be partnership between qualified management and cooperative
workforce. It was he who said that the trade unions were irrelevant as both the sides
were important for each other's existence.
2. Planning the task: For performing the task by every worker, Taylor suggested
the need of planning the production activity accurately. This idea of planning is
Taylor's gift to the science of management. Planning of task gives answers to the
following questions. What has to be done, how it is to be done, where the work
shall be done and when the work shall be done.
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also suggested the importance of cordial relations between management and
workers.
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4. Importance of personnel and personnel department: Taylor suggested the
importance of manpower in management. He was in favour of progressive
personnel policies for the creation of efficient and satisfied labour force. He
suggested the need of personnel department and its importance. He favored
incentive wage payment to workers.
5. Industrial fatigue and rest pauses: Taylor noted the nature of industrial fatigue
and suggested the introduction of suitable rest pauses for removing such fatigue
of workers. He wanted to reduce the burden of work on workers through the use
of scientific methods.
6. Time and motion study: Taylor introduced new concepts like time study, motion
study and work study in the field of industrial management such concepts are for
the introduction of new methods which will be more quick, scientific and less
troublesome to workers.
Conclusion
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Question 2
Explain theories X and Y of motivation as put forward by Douglas McGregor
In his 1960 management book, The Human Side of Enterprise, Douglas McGregor
made his mark on the history of organizational management and motivational
psychology when he proposed the two theories by which managers perceive employee
motivation. He referred to these opposing motivational theories as Theory X and Theory
Y. Each assumes that management's role is to organize resources, including people, to
best benefit the company. However, beyond this commonality, they're quite dissimilar
Theory X
Drawing on Maslow's Hierarchy of Needs, McGregor argues that a need, once satisfied,
no longer motivates. The company relies on monetary rewards and benefits to satisfy
employees' lower level needs. Once those needs have been satisfied, the motivation is
gone. Theory X management styles, in fact, hinder the satisfaction of higher-level
needs.
Consequently, the only way that employees can attempt to satisfy higher level needs at
work is to seek more compensation, so it is quite predictable that they will focus on
monetary rewards.
While money may not be the most effective way to self-fulfillment, in a Theory X
environment it may be the only way. People will use work to satisfy their lower needs,
and seek to satisfy their higher needs during their leisure time. Unfortunately,
employees can be most productive when their work goals align with their higher level
needs.
McGregor makes the point that a command and control environment is not effective
because it relies on lower needs for motivation, but in modern society those needs are
mostly satisfied and thus no longer motivate. In this situation, one would expect
employees to dislike their work, avoid responsibility, have no interest in organizational
goals, resist change, etc. thus creating a self-fulfilling prophecy. To McGregor,
motivation seemed more likely with Theory Y.
Theory Y
The higher-level needs of esteem and self-actualization are continuing needs in that
they are never completely satisfied. As such, it is these higher-level needs through
which employees can best be motivated.
People will be self-directed and creative to meet their work and organizational
objectives if they are committed to them.
People will be committed to their quality and productivity objectives if rewards are in
places that address higher needs such as self-fulfillment.
Most people can handle responsibility because creativity and ingenuity are common in
the population.
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Under these conditions, people will seek responsibility.
Decentralization and Delegation - If firms decentralize control and reduce the number
of levels of management, managers will have more subordinates and consequently will
be forced to delegate some responsibility and decision making to them.
Job Enlargement - Broadening the scope of an employee's job adds variety and
opportunities to satisfy ego needs.
On analysis of the assumptions it can be detected that theory X assumes that lower-
order needs dominate individuals and theory Y assumes that higher-order needs
dominate individuals. An organization that is run on Theory X lines tends to be
authoritarian in nature, the word “authoritarian” suggests such ideas as the “power to
enforce obedience” and the “right to command.” In contrast Theory Y organizations can
be described as “participative”, where the aims of the organization and of the individuals
in it are integrated; individuals can achieve their own goals best by directing their efforts
towards the success of the organization.
However, this theory has been criticized widely for generalization of work and human
behavior.
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Question 3
1. Competition: Managers today face many challenges regarding their work the major
challenge that is faced by managers nowadays is the competition. They need to see the
ever changing scenario regarding their work. World is now global village with Internal
organization coming in and bringing ideas from abroad, giving more competition to
managers. Twenty years ago, few workers used machines or email, and computers
occupied entire rooms, not desktops. Advances in information and communication
technology have permanently alters the workplace by changing the way information is
create, stored, used, and shared
2. Diverse workforce: A diverse workforce refers to two or more groups, each of those
members are identifiable and distinguishable based on demographic or other
characteristics like gender, age group, education etc. several barriers in dealing with
diversity include stereotyping, prejudice, ethnocentrism, discrimination, tokenism, and
gender-role stereotypes
3. The need for ethics: Management decisions need to be weighed to ensure that they
do not have a negative effect on ethics of people in and outside the organization. Ethics
is concerned with the question of who benefits and who should benefit from activities of
an organization. Managers in organization today need to be cognizant of ethics in the
decision they make and how these decisions will affect people within and outside the
organization.
4. Anticipate Global Talent Shortage: The most critical problem is hiring, retaining,
training and motivating professional talent in a troublesome scenario where the already
critical shortage of human talent in some professional areas and in diverse managerial
disciplines due to the beginning of the retirement with no enough replacements of the
baby boomers’ workforce; economical growth in China and India and resurgence of
energy market firms due to record crude oil prices has motivated a fierce competence to
hire, train and retain the already scarce talent available in the job market. Being so,
human talent is being more critical to ensure the competitiveness of a company for the
long term.
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Being so, some companies belonging to these industries are beginning to develop
systematically their respective Strategic Workforce Planning to analyze, evaluate and
forecast the talent that they need to develop their strategic planning. In parallel, these
companies are developing a more proactive HR management and are making the
necessary adjustments to excel in the role of hiring, retaining, training and motivating
professional talent.
7. Market changes: Coping with continuous rapid changes in marketplace and the
need to find new ways of anticipating changes are as challenging as they ever were.
For example, current global financial crisis is considered a significant change which
requires innovative enlightened management skills to adapt to it. Reshaping the
organizational structures strategic merging with other organization, searching for new
markets and reducing overheads costs are some of the initial solutions which can be
implemented to cope with such change.
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8. Micro-electronic technology: Micro-electronic technology becomes widely used by
successful competitive organizations to increase productivity and enhance the outcome
results. It includes the use of automated manufacturing process, advances
telecommunication, internet, software, etc. high technology opens the door up to the
globe marketing and this requires innovative ideas to cope with such change and to
minimize costs. It also helps communicate more effectively with internal corporation and
external market and customers
10. Empowerment: The key challenge facing managers and leaders today is to
understand how to empower and motivate their team. We all know that people who are
motivated will be more productive and perform better at work.
The leader of the team is responsible for creating a good work environment for his/her
team. This involves spending time trying to understand what motivates each individual
and addressing problems faced by the team.
11. Feedback mechanisms. Employees want to know how they are doing - whether
poorly or well. Failure to give them the feedback they need is to keep them in the dark
regarding the assessment of their performance and how and where they need to
improve.
12. Decision making. Many managers make decisions that other employee’s will either
have to implement or that will affect them. If these decisions are made without bottom-
up feedback, you can guarantee that the outcome of the decisions will be less than
desired or expected.
Conclusion
Organizations constantly encounter forces driving them to change. Because change
means doing something new and unknown, the natural reaction is to resist it. Extension
programme managers must overcome this resistance and adopt innovative and efficient
management techniques to remain high performers. They must improve their personal,
team, and cultural management skills if they hope to adapt themselves to a changing
world. Overwhelmingly, current management wisdom touts the goal of getting decisions
made as low down in the organization as possible.
The basic idea is that since people closest to the work are likely to know the most about
solving problems in their areas, they should be involved in the decisions concerning
those areas. An added benefit is that they are more motivated if they have some control
over their work and over their own destinies.
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Question 4
The functions of management uniquely describe managers' jobs. The most commonly
cited functions of management are planning, organizing, leading, and controlling,
although some identify additional functions. The functions of management define the
process of management as distinct from accounting, finance, marketing, and other
business functions. These functions provide a useful way of classifying information
about management, and most basic management texts since the 1950s have been
organized around a functional framework.
Henri Fayol was the first person to identify elements or functions of management in his
classic 1916 book Administration Industrielle et Generale. Fayol was the managing
director of a large French coal-mining firm and based his book largely on his
experiences as a practitioner of management. Fayol defined five functions, or elements
of management: planning, organizing, commanding, coordinating, and controlling.
Planning
Planning is the function of management that involves setting objectives and determining
a course of action for achieving these objectives. It is the starting point of the
management process. It is the foundation on which other elements of the management
process are built. Planning requires that managers be aware of environmental
conditions facing their organization and forecast future conditions. It also requires that
managers be good decision-makers.
The first function is planning. In this function, you are setting goals and objectives, then
scheduling the steps to achieve the goals in a certain time. Then you need to decide
on the resources that are needed to ensure that the objectives are met.
Pre-planning can save a tremendous amount of time. One way to do this is to use
SWOT analysis completed by senior management before you even start the planning
process. SWOT stands for strengths, weaknesses, opportunities, and
threats. Completing a SWOT analysis will save you almost an entire hour in the
planning process (Rowland, R. p.4).
Organizing
In order to reach the objective outlined in the planning process, structuring the work of
the organization is a vital concern. Organization is a matter of appointing individuals to
assignments or responsibilities that blend together to develop one purpose, to
accomplish the goals. These goals will be reached in accordance with the company’s
values and procedures. A manager must know their subordinates and what they are
capable of in order to organize the most valuable resources a company has, its
employees. (Bateman, Snell, 2007). This is achieved through management staffing the
work division, setting up the training for the employees, acquiring resources, and
organizing the work group into a productive team. The manager must then go over the
plans with the team, break the assignments into units that one person can complete,
link related jobs together in an understandable well-organized style and appoint the jobs
to individuals. (Allen, G., 1998).
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Organization is strong at the University of Botswana with the ability to be flexible. The
University of Botswana’s leadership provides needed direction for staff to achieve
personal success that leads to organizational success. Managers at (UB) are
responsible for keeping communication lines open between departments to eliminate
any issues from forming. Wyeth would not be a healthcare leader if there was little or no
organization.
Leading
Managers at Wyeth are there to motivate workers to fulfill the goals of the company and
out-perform their competitors. They as leaders have day to day contact with workers
using open communication and are able to give direction individually as well as within
teams, departments and divisions. Management is there to inspire subordinates to ‘step
up to the plate’ and find innovative means to solve department problems. Authorizing
staff to have the capability to deal with situations is a significant part of leading. (Allen,
G., 1998).
Controlling
The process that guarantees plans are being implemented properly is the controlling
process. Gemmy Allen stated that ‘Controlling is the final link in the functional chain of
management activities and brings the functions of management cycle full circle.’ This
allows for the performance standard within the group to be set and communicated.
Control allows for ease of delegating tasks to team members and as managers may be
held accountable for the performance of subordinates, they may be wise to extend
timely feedback of employee accomplishments. (Allen, G., 1998).
Department meetings are daily at the University of Botswana. Meetings are used to
review the daily schedule, prevent problems and to ascertain when problems do exist in
order to address and solve those that occur as quickly and as efficiently as possible.
Control is the process through which standards for performance of people and
processes are set, communicated, and applied. (Allen, G., 1998). Managers and
supervisors are given work performance evaluations that are a form of control as it
connects performance assessments to rewards and corrective actions. Evaluating
employees is a continual process that takes place regularly within the company. (Allen,
G., 1998).
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Importance of Functions of Planning
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Question 5
The process of organizing is the way in which tasks and resources are distributed
among departments, to set a plan or strategy in motion is based on certain principles
and these are:
1. Specialization
2. Departmentalization
3. Organization structure
4. coordination
5. Restructuring
Work Specialization
Specialization is a situation where a task is broken up into smaller units to take the
advantage of specialized knowledge or skills to improve productivity. The division of
task into smaller units however means that the various units have to be coordinated, as
indispensable part of organization.
Departmentalization
Organization Structure
Every organization is composed of certain parts. These parts then have their various
functions and are interdependent on each other for a smooth functioning of the
organization. An organization’s structure is a framework that allots a particular space for
a particular department or an individual and shows its relationship to the other. An
organization’s structure may be of many types, the most common of these being the
hierarchical and the flat organizational structure.
A flat organization is much more relaxed and so-called modern in approach where
everyone directly reports to a single boss. This could provide greater speed in the
decision making process but then the boss ends up taking care of a lot of things thus
making delegation difficult.
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Coordination
Once the organization has been divided into various departments the next important
point is coordination. Lack of coordination often leads to frustration and waste of time.
Restructuring
It is the corporate management term for the act of reorganizing the legal, ownership,
operational, or other structures of a company for the purpose of making it more
profitable, or better organized for its present needs. Alternate reasons for restructuring
include a change of ownership or ownership structure, demerger, or a response to a
crisis or major change in the business such as bankruptcy, repositioning, or buyout.
Restructuring may also be described as corporate restructuring, debt restructuring and
financial restructuring.
Executives involved in restructuring often hire financial and legal advisors to assist in
the transaction details and negotiation. It may also be done by a new CEO hired
specifically to make the difficult and controversial decisions required to save or
reposition the company. It generally involves financing debt, selling portions of the
company to investors, and reorganizing or reducing operations.
The basic nature of restructuring is a zero sum game. Strategic restructuring reduces
financial losses, simultaneously reducing tensions between debt and equity holders to
facilitate a prompt resolution of a distressed situation.
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References
Bateman, T.S. & Snell, S. (2004). Management: The New Competitive Landscape, (6th
ed., pp.13). McGraw – Hill
Rowland R. Johnson, Mandy Goldner, Mitch Lee, Keith McKay, Robert Shectman, John
Woodruff: Principles of Management S 1992: p4
B001JPCGXY
J. Payne , S. Payne Management Basics: The How-To Guide for
Managers (Adams Critical Skills for Your Business)
Hill, C.W.L. & McShane, S. (2008) Principles of Management New York: McGraw Hill
Kinicki, A. & Kreitner, R. (2008). Organisational Behaviour, Key Concepts, Skills and
Best Practices, New York: McGraw Hill
Robbins, S.P. & Decenzo, D (2005) Fundamentals of Management (5th Ed.) Upper
Saddle River, NJ: Prentice Hall
Robbins, S.P. & Coulter, M. (2005) Management (8th Ed.) Upper Saddle River, NJ:
Prentice Hall
Dessler, G. (2003) Management: Principles and Practices for Tomorrow’s Leader (3rd
Ed.) Upper Saddle River, NJ: Prentice Hall
Hill, C.W.L. & McShane, S. (2008) Principles of Management New York: McGraw Hill
Recommended Reading
Dessler, G. (2003) Management: Principles and Practices for Tomorrow’s Leader (3rd
Ed.) Upper Saddle River, NJ: Prentice Hall
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