2 Management Terry & Rue A process or form of work that involves the guidance and direction of a group of people toward organizational goals or objectives. Johnson & Stinson The process of working with & thru people to accomplish organizational goals Stoner The process of planning, organizing, leading and controlling the efforts of organization members & of using all other organizational resources to achieve stated organizational goals. 3
9 Basic Resources: Nine Ms of Management 1. Man/Manpower 2. Money 3. Materials 4. Machines 5. Methods/Procedures 6. Markets 7. Minutes/Time Management 8. Motivation/Morale 9. Measurement
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1. Men/ Manpower The most important resource People who work in business enterprises. The success or failure of any business depends on them. The 8Ms are useless if man does not know how to use them properly. 5
1. Men/ Manpower The most important resource Men are activating resource of the organization and categorized into two groups such as: Employees Managers Man is important in an organization and emerges as: As an economic unit As a productive unit As a worker
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1. Men/ Manpower The most important resource Without manpower, companies are unable to get work done. Untrained man can cause damage to goods and services. Human Resource Management is different from Personnel Management 7
1. Men/ Manpower The most important resource HRM vs PM Factors HRM PM People Involved All; from top management to rank & file Mostly rank & file Hours of Work Full-time, part- time; flexitime Full-time Place of Work Formal & Informal Setting Formal setting: office, factory, plant 8
1. Men/ Manpower The most important resource HRM vs PM 9
1. Men/ Manpower The most important resource HRM vs PM 10
1. Men/ Manpower The most important resource HRM vs PM Factors HRM PM Strategies Objective & Scientific; Total Systems Approach Subjective based on managements needs & values Compartmentalized Approach Philosophy Humane; People: an investment & a resource Traditional, mainly for profit; People: an expense & a factor of production 11
2. Money The driving force of business Generally accepted as payment for goods & services and repayment of debts A medium of exchange, a unit of account and a store of value. From Juno Moneta, the Goddess of ancient Rome 12
2. Money The driving force of business Our present economic system: Money Economy Money is important to an individual person, equally it so to business organizations & the government. Every business enterprise of any nature & size needs capital 13
2. Money The driving force of business Capital is wealth used in further production & stresses physical facilities without regard to their money values. Capital is money or values used in business regardless of source. 14
2. Money The driving force of business Administration & maintenance of financial assets. Identifying and & trying to work around the various risks to which a particular project may be exposed. closely monitoring the cash flow Inflow money coming into a company Outflow record of the expenditure being made by the company in various resources.
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3. Materials The inputs to production Basically, pieces required to make something else. Can be anything: a finished product in its own right or an unprocessed raw material. Things needed in the creation of products. Materials that are first extracted or harvested from the earth & divided into a form that can easily be transported & stored, then processed to produce semi-finished materials 16
3. Materials The inputs to production field of management that deals with materials Important principles governing raw materials: 1. Proper Determination of amount of raw materials needed. 2. Raw materials should be available to ensure continuous production. 3. Raw materials should be procurable not only from one source but from a no. of different sources. 4. There must be periodic inventory of stocks.
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3. Materials The inputs to production field of management that deals with materials Important principles governing raw materials: 5. The transportation of raw materials from the source must be fast as well as economical. 6. The raw materials must always be of the desired quality.
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4. Machines The aide to work simplification Any device that uses energy to perform some activity. A device having parts that perform or assist in performing any type of work. Derived from machina Prior to the birth of the Industrial Revolution, manufacturing was done largely thru the use of human hands aided by simple hand tools. Simple Machine Transforms the direction or magnitude of a force without consuming energy. 18
4. Machines The aide to work simplification Industrial Revolution & Machinery A Watt steam engine, the steam engine that propelled the Industrial Revolution in Britain and the world. 19
4. Machines The aide to work simplification 20
4. Machines The aide to work simplification are technology & expertise deployed towards the transformation process of input (resources) to output (end- point objectives/products) required by modern productionmore efficient & economical 21
4. Machines The aide to work simplification greatly reduces the need for human sensory and mental requirements to create complex systems for a rapidly expanding range of applications and human activities. 22
5. Methods/Procedures The technology/techniques of production There are 3 types of technology: primitive, intermediate & modern technologies E. F. Schumacher, 1973 Can also be systems, procedures & processes seamlessly put together for the transformation of a raw material to goods & services. 23
5. Methods/Procedures The technology/techniques of production theoretical knowledge of industry and the industrial art Human innovation in action that involves the generation of knowledge & processes to develop systems that solve problems & extend human capabilities. It is the total accumulation of tools, systems & work methods used collectively to transform inputs into outputs 24
6. Markets The transaction in motion Any of a variety of different systems, institutions, procedures, social relations & infrastructures whereby persons trade, goods & services are exchanged, forming part of the economy. Transaction is the exchange of goods or services for money. Markets allow any tradable item to be evaluated & priced. 25
6. Markets The transaction in motion a. Financial markets b. Futures markets c. Currency markets d. Money markets e. Prediction markets f. Stock markets g. Bond market (credit, debt or fixed income market) 26
6. Markets The transaction in motion Requirements of a market: People must need the product People must have the ability to purchase the product People must be willing to use their buying power Individuals must have authority to buy the specific products. Categories of a market: Consumer Market Organizational or Industrial Market 27
6. Markets The transaction in motion field of management that deals with markets An example of money market 28
7. Minutes/Time Management Optimum time, with highest quality A set of principles, practices, skills, tools and systems that work together to have more value out of time with the aim of improving the quality of work. Skills associated are: planning, prioritizing, goal setting, scheduling and managing workload. Various means by which people effectively use their time & other closely related resources in order to make the most out of it.
Efficiency is doing better what is already being done. Peter F. Drucker
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7. Minutes/Time Management Optimum time, with highest quality P Prioritize your time. O Organizing things you have to accomplish regularly. S Streamlining things you may not like to do but must do. E Economizing things you should/like to do, but not pressingly urgent. C Contributing by paying attention to few remaining things that make a difference. POSEC Method Inherent in the acronym is Abraham Maslows Hierarchy of Needs which suggests that by attending to ones personal responsibilities first, an individual is better positioned to shoulder collective responsibilities. 30
7. Minutes/Time Management Optimum time, with highest quality The BEST time is usually but not always the SHORTEST time In individual careers, increased job performance & promotions may result. All types of organizations- business, civic, school, political and religious- may receive productive, competitive & financial benefits. 31
7. Minutes/Time Management Optimum time, with highest quality A Gantt chart is helpful in laying out the tasks associated with a given project. It helps ensure that the project schedule is maintained at a reasonable pace. Henry Laurence Gantt, 1921 Pioneer Clinical Laboratory Inc. & Medical Clinic All Rights Reserved 2008 32
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8. Motivation/Morale The secret weapon of management Change equals Challenge which is the source of motivation, workplace efficiency & job security. Derived from motivate meaning to move, impel or induce to act to satisfy a need or want. Pefecto Sison, M.A. Willingness to exert effort to achieve a goal or objective. Getting people to contribute their maximum effort toward the attainment of organizational objectives Carlos Lorenzana Intrinsic inducement that propels an individual to think, feel and perform in certain ways. It is internalized & the most important yet elusive determinant of work behavior. Dr. Concepcion Martires 35
8. Motivation/Morale The secret weapon of management Efficiency under worker responsibility Managements priority: GET THE JOB DONE! Efficiency under command and control leadership Managements priority: CONTROL! Decision-making responsibility & learning opportunity work together. 36
9. Measurement The gauge of effectiveness The score-keeping & in-process monitoring continuously with due feedback to keep on-course on time. Encompasses the assessment of performance and results achieved by individual employees, groups of employees and entire organizations. Determining the level of performance by judging the quality, quantity, timeliness and /or cost-effectiveness of the work against a set of standards.
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9. Measurement The gauge of effectiveness Two basic parts of ICS: 1. Operational Procedures 2. Controls CHALLENGE TO MANAGEMENT: Decide how much resource to deploy to create just sufficient controls to limit the possibility of bad events occurring & to limit the damage when they do occur. Types of Controls:
1. Preventive Control 2. Detective Control 3. Reactive Control 38
9. Measurement The gauge of effectiveness A large volume of laws & regulations now exist, specifying standards of conduct & controls that must be complied with by organizations. 39 Presented by: Amor M. Loisaga 40 There are no universally applied techniques & principles to make management successful. There are general approaches that enable managers to effectively achieve their objectives. Evolution of managerial thought is traditionally represented by a number of schools & approaches that contributed the development of managerial theory & practice. 41 Evolution of Managerial Thought 42 A group of people or scientists who share common characteristics of opinion or outlook of a discipline. Approaches tend to cover a more practical aspect enabling managers to effectively run their business & achieve organizational goals. A set of methods, ideas or actions intended to deal with a problem or solution. 43 The CLASSICAL SCHOOL associated with the scientific trends which emerged during the 19 th & early 20 th
centuries. This school includes:
First-line management analysis (Scientific Management School), and Comprehensive analysis of management (Administrative School)
44 1.1 Scientific Management School Frederick W. Taylor Frank B. Gilbreth Lilian E. Gilbreth Harrington C. Emerson Henry Laurence Gantt 45 1.1 Scientific Management School Father of Scientific Management Made systematic study of relationships between people & tasks. Optimized task = Reduced time a worker spents on each task. The Principles to Increase Efficiency
46 1.1 Scientific Management School Each element of a workers job is to be treated scientifically. Job specialization should be introduced to each job. Workers should be properly selected, trained & developed. The pillars of work are planning & scheduling. Determined time & method standards should be considered for each task. Wage incentives have to be provided for all jobs. 47 1.1 Scientific Management School 1. Managers often implemented only the increased output side of Taylors plan: They didnt allow workers to share in increased output. Specialized jobs became very boring & dull. Workers ended up distrusting scientific management. 2. Workers could purposely under-perform; 3. Management responded with increased use of machine.
48 1.1 Scientific Management School Developed Time & Motion Studies Used motion picture cameras to find the most efficient & economical motions for each task. Time & Motion Studies: 1. Break down each action into components. 2. Find better ways to perform each action. 3. Recognize each action to be more efficient. 49 1.1 Scientific Management School 50 1.1 Scientific Management School Developed the GANTT Chart The Gantt chart shows the start & finish dates of the terminal elements & summary elements of a project. Gantt charts also serve as visuals to estimate the degree of project completion. 51 1.1 Scientific Management School Setting organizational objectives Proceeded with Taylors efficiency principles. Idea of strict distinction between line & staff roles in management. 52 1.1 Scientific Management School KEY POINTS: The School focused on production control, where observation, logic & analysis are the tools to improve manual operations. Scientific Management School Methodology concentrated on the analysis of work content, job specialization & systematic use of incentives to increase the production volume & perfect employees performance. 53 1.2 Administrative School Henry Fayol Max Weber 54 1.2 Administrative School Fourteen Principles of Management Division of Labor Authority & Responsibility Discipline Unity of Command Unity of Direction General Interests Over Individual Interests Remuneration Centralization/ Decentralization Scalar Chain (Line of Authority) Order Equity Stability of Tenure Initiative Esprit de Corps 55 1.2 Administrative School Introduced rational authority Rational authority : When an organization w/ a formal structure is managed on a rational basis, it would be more efficient & adaptable to changes. Rational authority = Bureaucracy
56 1.2 Administrative School Bureaucratic Organizations key points: 1. Clear division & specialization of labor. 2. Hierarchy of authority & responsibility. People know what is expected of them & who reports to who. 3. Fair evaluation & reward of the staff. 4. Written rules, standard operating procedures & norms are provided to regulate all the processes within the company. 5. Management & the ownership of the organization are separated. 57 1.2 Administrative School KEY POINTS: Administrative School aimed to find the tools to improve the total organizational performance. The idea of Universal Principles of Management (Fayols 14 Principles of Management) & Webers Bureaucracy had a strong impact on the contemporary organizational theory development. Both Scientific & Administrative Management Schools appeared when the study of Psychology was at its early stages. The schools discussions were restricted by fair payment, economical incentives & formal functional relations. 58 1.3 Behavioral School George Elton Mayo Abraham Maslow Frederick Herzberg Douglas McGregor 59 1.3 Behavioral School The incompetence of the Classical School in questions of human relations & behavior gave birth to the Behavioral School. Two Branches: a. George Elton Mayo b. Abraham Maslow a. Frederick Herzberg b. Douglas McGregor 60 1.3 Behavioral School Famous for his Hawthorne Experiments which showed that scheduling, planning & fair payments were not enough to provide stable increase of organizational productiveness. Concluded that individuals are motivated by social needs & good on the job relationships & respond better to work- group pressure than to management control activities.
61 1.3 Behavioral School Famous for his Hierarchy of Needs Expanded Mayos ideas of social needs; observed that his patients were motivated by a sequence of needs.
62 1.3 Behavioral School 63 KEY POINTS: The theorists believed that managers should take care of their employees. Providing high level of care, managers get high level of staff satisfaction. Mayo & Maslow recommended the human relations management which includes more effective actions of managers, consulting the staff & enabling the workers to have broad on-the-job relationships. 1.3 Behavioral School 64 1.3 Behavioral School Worked on different aspects of social cooperation, motivation, organizational communication, changes in job specification & quality of industrious life. Their approach intended to help an employee realize personal potential. 65 KEY POINT: The general target of the school was to prove that increase in staff performance provides an increase in organizational effectiveness. 1.3 Behavioral School 66 1.4 Management Science School Developed after World War II from the operational research teams in Great Britain & US. Advocated that mathematics, statistics, cybernetics & operations research models should be used to decide operation problems. Model - an idea of real situation; in order to solve operation problems: 1. Define the problem; 2. Develop a model of the situation 3. Specify the quantitative characteristics to the model substitution of verbal discussions for models, symbols & quantitative values. 67 1.4 Management Science School The optimal decision making algorithm based on statistical decisions theory, game theory etc. Quantitative abstract and applied models of economic phenomena Management Science School provides managers with a scientific basis for solving problems & making decisions. The most recent subfield of Management Science is Management Information System (MIS) which provides managers with information in a timely & cost-efficient manner 68 Pioneered by the Administrative School Theorists in their attempts to describe managerial functions. Sees managerial functions as a set of interrelated actions.
Management as a process. Objectives are met by a series of continuous & interrelated actions. These actions are called managerial functions. Management is a unity of 5 managerial functions. To manage means: 1. To forecast & plan. 2. To Organize. 3. To Command 4. To Coordinate 5. To Control -Henry Fayol
69 Planning Organizing Staffing Directing Controlling Five Functions of Management 70 Introduced to management after 1950s by the Management Science School. Organization is a system and considered relations inside & outside the organization. System A number of interdependent parts functioning as a whole for some purpose. Subsystem A system within a system. An Organization is an OPEN SYSTEM 71 Transformation process input output Feedback (Reenergizing the system) ENVIRONMENT System Boundary Organization as a System: receives Input, transforms it through a Process for Output and Operates in an Environment (economic, regulatory and other forces) 72 Inputs (Goal Oriented) P l a n n i n g
O r g a n i z i n g
S t a f f i n g
Outputs (External To Orgnzn.) L e a d i n g
C o n t r o l l i n g
Product/Services, Profits, Customer & Societal satisfaction, Other Long-term Goals 9 Ms of management Stake holder Feedback (reenergizing the system) Stakeholders Shareholders; Society; Customers; Employees; Suppliers EXTERNAL ENVIRONMENT(Opportunities, Constraints) 73 Believes that it is impossible to select one combination of management techniques for all situations.
Organizations differ in structures, spans of control, chains of command, degrees of centralization, corporate culture, and so on. Thus, each organization is tailored by some particular circumstances.
Applies ideas drawn from various schools of management thought to real life situations.
Contingency theorists denote such elements of a management situation as the conditions of a task (like the Scientific Management School), managerial job (borrowed from the Administrative School) & person (Human Relations Movement). 74 This approach points out the need for managers to examine the relationship between the internal & external environment of an organization. 75 Good management is the art of making problems so interesting and their solutions so constructive that everyone wants to get to work and deal with them. --Anonymous--
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