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By Gift Rumbidzai Janaso

0774077712
gjanaso@gmail.com
Introduction to Management
By the end of this chapter the student should be able to:
 Define management.

 Explain the importance of management in


organizations.
 Define the four main activities of the management
process.
 Describe different categories of managers.

 Discuss the different skills that managers must possess


and the roles they can fill.
Definition of management
 There is no single definition of management.
 The planning, organizing, leading and controlling of human and
other resources to achieve organizational goals effectively and
efficiently (Jones & George; 2003).
 Organizational resources include people (their skills,
knowledge), machinery, raw materials, computers and
information technology and financial capital.
 In other words, management involves activities performed to
help an organization make the best use of its resources to
achieve its goals.
 The process of working with and through other people to
achieve organizational goals.
 The art of knowing what you want to do and then seeing that it
is done in the best and cheapest way. (F. W. Taylor, undated)
Effectiveness and Efficiency
Efficiency and effectiveness are imperative indicators of managerial
performance.
 Efficiency:- measures how well or productively resources are used
to achieve a goal.
 The ability to do things right – is an “output/input” concept.
 Organizations are efficient when managers minimize the amount
of input resources (such as labour, raw materials and component
parts) or the amount of time needed to produce a given output of
goods or services.
 Effectiveness: measure of the appropriateness of the goals an
organization is pursuing (selected by managers) and of the degree
to which the organization achieves those goals.
Efficiency and effectiveness cont’d….
 Effectiveness is basically “doing the right thing”

 Organizations are effective when managers choose appropriate (or


the right) goals and then achieve them.
 Managers who are effective are those who choose the right
organizational goals to pursue and have the skills to utilize
resources efficiently.
 No amount of efficiency can make up for a lack of effectiveness –
effectiveness is the key to an organization’s success (Drucker;
undated).
 Before focusing on doing things efficiently, we need to be sure we
have found the right things to do
Organizations and the need for
management.
 An organization refers to two or more people who work
together in a structured way to achieve a specific goal or set
of goals.
 The basic elements of any organization are:
(a) A common goal or purpose e.g. to sell a product or service,
to win a league championship, to entertain an audience, etc.
(b) Some method or program for achieving goals – a plan. (e.g.
market research to establish the needs of customers followed
by designing of a service and then delivering the service to
the identified target market).
(c) Resources necessary to achieve their goals – human,
financial, informational, and materials.
Basic elements of Organizations
cont’d
(d) Deliberate structure - system of task and
reporting relationships that coordinates and
motivates organizational members so that they
work together to achieve organizational goals e.g.
a functional structure which configures a group of
people into silos based on their skill specialties.
Manager
 A person who allocates human, material and information
resources in pursuit of organizational goals.

 In organisations the manager’s purpose is to integrate the


above factors towards attaining organisational goals.

 In short, a manager is someone who coordinates and overseas


the work of other people so that organizational goals can be
accomplished

 A manager’s job is not about personal achievement-its about


helping others do their work
Management Levels: Vertical
Differences
Top Managers

Middle Managers

First-line Managers

Non-Managers
Top managers
 Are at the top of the hierarchy and are responsible for the
entire organization.
 Have such titles as president, chairperson, executive director,
chief executive officer (CEO), and executive vice president.
 Top managers are responsible for setting organizational
goals, defining strategies for achieving them, monitoring and
interpreting the external environment, and making decisions
that affect the entire organization.
 They look to the long-term future and concern themselves
with general environmental trends and the organization’s
overall success.
 Are also responsible for communicating a shared vision for
the organization, shaping corporate culture, and nurturing
an entrepreneurial spirit that can help the company innovate
and keep pace with rapid change
Middle managers
 Work at middle levels of the organization and are responsible
for business units and major departments.
 E.g. department head, division head, manager of quality
control, and director of the research lab.
 Typically have two or more management levels beneath
them.
 They are responsible for implementing the overall strategies
and policies defined by top managers.
 Generally are concerned with the near future rather than
with long-range planning.
First-line managers
 Are directly responsible for the production of goods and
services.
 They are the first or second level of management and have
such titles as supervisor, line manager, section chief, and
office manager.
 They are responsible for groups of non-management
employees.
 Their primary concern is the application of rules and
procedures to achieve efficient production, provide technical
assistance, and motivate subordinates.
 The time horizon at this level is short, with the emphasis on
accomplishing day-to-day goals.
Management Types: Horizontal
Differences
 Functional Managers – is responsible for only one
functional area , such as production, marketing, or finance.
 A function, in this sense, is a collection of similar activities.
 The marketing function, for example, consists of sales,
promotion, distribution, and market research activities.

 General Managers – oversees a complex unit, such as a


company, a subsidiary, or an independent operating division.
 Is responsible for all activities of that unit - its marketing,
production, and finance.
Managerial Skills
 Technical Skills

 Interpersonal Skills

 Conceptual Skills

 Managers use conceptual, human, and technical skills to


perform the four management functions of planning,
organizing, leading, and controlling in all organizations -
large and small, manufacturing and service, profit and
nonprofit, traditional and Internet-based.
Managerial Skills cont’d
 Technical skills - the ability to use the procedures, techniques
and knowledge of a specialized field. Accountants, engineers,
surgeons, musicians, and marketers all have technical skills in
their respective fields.
 Human skills – the ability to work with, understand, and
motivate other people as individuals or in groups
 Conceptual Skill – the ability to coordinate and integrate all of
an organization’s interests and activities. Involves seeing the
organization as a whole, understanding how its parts depends on
one another, and anticipating how a change in any of its parts
affect the whole.
Managerial Competencies
 Six Core Managerial Competencies: (what It Takes to Be a
Great Manager)

 Communication Competency

 Planning and Administration Competency

 Teamwork Competency

 Strategic Action Competency

 Multicultural Competency

 Self-Management Competency
Communication Competency
 Ability to effectively transfer and exchange information that
leads to understanding between yourself and others

 Informal Communication - used to build social networks


and good interpersonal relations

 Formal Communication - used to announce major


events/decisions/ activities and keep individuals up to date.
Negotiation - used to settle disputes, obtain resources and
exercise influence.
Planning and administration
competency
 Deciding what tasks need to be done, determining how they
can be done, allocating resources to enable them to be done,
and then monitoring progress to ensure that they are done
 Information gathering, analysis, and problem solving from
employees and customers
 Planning and organizing projects with agreed upon
completion dates
 Time management

 Budgeting and financial management


Teamwork competency
 Accomplishing tasks through small groups of people who are
collectively responsible and whose job requires coordination

 Designing teams properly involves having people participate


in setting goals

 Creating a supportive team environment gets people


committed to the team’s goals

 Managing team dynamics involves settling conflicts, sharing


team success, and assign tasks that use team members’
strengths
Strategic Action Competency
 Understanding the overall mission and values of the
organization and ensuring that employees’ actions match
with them

 Understanding how departments or divisions of the


organization are interrelated

 Taking key strategic actions to position the firm for success,


especially in relation to concern of stakeholders

 Leapfrogging competitors
Multicultural Competency
 Understanding, appreciating and responding to diverse
political, cultural, and economic issues across and within
nations

 Cultural knowledge and understanding of the events in at


least a few other cultures

 Cultural openness and sensitivity to how others think, act,


and feel

 Respectful of social etiquette variations

 Accepting of language differences


Self – management competency
 Developing yourself and taking responsibility

 Integrity and ethical conduct

 Personal drive and resilience

 Balancing work and life issues

 Self-awareness and personal development


activities
Managerial Roles -based on Mintzberg
Henry(1980)
 Interpersonal roles

 Informational roles

 Decision making roles


Interpersonal Roles
 Help managers to keep their organization running smoothly
 Figure head
 Leader
 Liaison
Figurehead
 As a symbolic head, manager is obliged to perform the
following:
 Greeting visitors
 Attending subordinates weddings/funerals
 Taking customers and or government officials to lunch
Leader
 Motivation of employees
 Hiring
 Training
Liaison
 Dealing with people other than subordinates
 E.g. peers within the organization as well as suppliers, clients,
creditors, government agencies, etc. outside it
Informational Roles
 Receiving and communicating information

 Important for making intelligent decisions

 Thus the following informational roles

 monitoring = looking for information

 Disseminator = managers distribute to subordinates

information they would not know.

 Spokesperson = managers transmit information to people

outside their groups


Decision Making Roles
 Entrepreneurial – managers try to improve their units

 Disturbance handler – they respond to problems beyond

their control e.g. strike, breaches of contract, etc.

 Resource Allocator – decides how and to who, resources

should be given

 Negotiator – representing the organization at major


negotiations
Functions of Management
 According to Fayol(1916) managers generally perform the
following four functions:
i. Planning-entails setting goals, establishing strategies and
developing plans to coordinate activities
ii. Organising-determining what needs to be done, how it will be
done and who is to do it.
iii. Leading-motivating, leading and any other actions involved in
dealing with people
iv. Controlling-monitoring activities to ensure that they are
accomplished as planned.
Functions of Management
 Planning – the process of establishing goals and a suitable course
of action for achieving those goals.
 Implies that managers think through their goals and actions in
advance and that their actions are based on some method, plan, or
logic rather than on a hunch.
 Plans are the guides by which (1) the organization obtains and
commits the resources required to reach its objectives; (2)
members of the organization carry on activities consistent with
the chosen objectives and procedures, and (3) progress toward the
objectives is monitored and measured so that corrective action
can be taken if progress is unsatisfactory.
Organizing
 The process of arranging and allocating work, authority, and resources
among an organization’s members so they can achieve the organization’s
goals.
 Different goals require different structures.
 Managers must match an organization’s structure to its goals and
resources, a process called organizational design
 Relationships and time are central to organizing activities.
 Organizing produces a structure for the relationships in an organization,
and it is through these structured relationships that future plans will be
pursued.
 Another aspect of relationships that is part of organizing is seeking new
people to join the structure of relationships - staffing
Leading
 The process of directing, influencing, and motivating
employees to perform essential tasks.
 Relationships and time are central to leading activities.

 Leading gets to the heart of managers’ relationships with


each of the people working for them.
 Managers lead in an attempt to persuade others to join them
in pursuit of the future that emerges from the planning and
organizing steps.
 By establishing the proper atmosphere, managers help their
employees do their best.
Controlling
 The process of ensuring that actual activities conform to
planned activities.

 Involves these main elements: (1) establishing standards


of performance; (2) measuring current performance; (3)
comparing this performance to the established
standards; and (4) taking corrective action if deviations
are detected.

 Through the controlling function the manager keeps the


organization on track.
The Challenge of Management
 In this complex and dynamic environment, managers must
continuously adjust to changing conditions.

 Change being a constant there are three concurrent


challenges confronting managers:

 The need for vision

 The need for ethics

 The need for responsiveness to cultural diversity


PLANNING
It is a conscious process of setting
objectives, selecting and developing
the best course of action to
accomplish the objectives
t
 Planning therefore implies that managers
think through their goals and actions in
advance. Their actions are usually based on
some method, plan, or logic rather than on a
hunch.

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Organising
 It is the process of establishing a structure of an
organisation and the allocation of resources
 Organizing means that managers coordinate the human
and material resources of the organisation. The
effectiveness of an organisation depends on its ability to
marshal its resources to attain its goals.
Leading
 It is putting a plan into action using the
organised resources in the actual
operations to achieve desired objectives-
translating plans into tangible results
 It is a combination of activating,
motivating, coaching, ordering,
supervising, etc. subordinates

39
 Thus it describes how managers direct
and influence subordinates, getting
others to perform essential tasks.
 By establishing the proper atmosphere,
they help their subordinates do their
best.

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Controlling
 Controlling means that managers attempt to ensure that
the organisation is moving towards its goals.
 If some part of their organisation is on the wrong track –
if it’s not working toward stated goals or is not doing so
effectively – managers try to find out why and set things
right.
 This requires that managers set standards(plan),
measure actual performance, compare it to the plan and
take corrective action where necessary
PLANNING
It is a conscious process of setting
objectives, selecting and developing
the best course of action to
accomplish the objectives
 Planning therefore implies that managers
think through their goals and actions in
advance. Their actions are usually based on
some method, plan, or logic rather than on a
hunch.

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Importance of planning
 Helps in anticipating the future, hence prepares for the
future problems
 Sets the direction that one should take- helps in charting
the course to be followed
 Enables decision making- decisions are based on what
the organisation seeks to achieve
 Provides a basis upon which the performance of
organisations and management is to be measured
The Planning Process
 Set objectives- what would you want the organisation to
achieve?
 Identify alternatives to achieve the objectives- this
requires divergent thinking. Do not restrict yourself
 Evaluate the alternatives- pick those alternatives that
are feasible. This calls for convergent thinking
 Rank the alternatives- the most preferred being ranked
highest and vice versa
 Select the best option- the highest ranked option
 Implement the selected option
 Evaluate its effectiveness in achieving the objectives
 Take corrective action where necessary
Why organisations fail to plan?
 Fear of being in a straight jacket
 Fear of being measured
 Lack of knowledge on how to plan
 Fear of the unknown
Types of plans
 Strategic plans
 These are long –that provide organisations with overall
direction-spelling out how organisations want to be
known(vision); their purpose (mission); key objectives
and how the organisation will achieve them
 They are the responsibility of senior managers (top
level managers)
 The process of coming up with a strategic plan
involves:
 setting a vision-a statement of hopes, aspirations,
and/or wishes of the organisation’s future i.e. where
the leadership would like the organisation to be in the
future.
 It serves as a beacon and control of the organisation
 Setting an organisation’s mission- this is an enduring
statement of purpose that outlines how an
organisation will achieve its vision-products; markets;
skills; technology; shareholders; etc.
 Setting a value statement- an outline of the
organisation’s values
 Objectives setting
 Situational analysis/environmental scan
 Development of strategy
 Strategy implementation
 Strategy control
 SBU Plans- these are only found in organisations that
have strategic plans
 They explain how an organisation’s SBU will
contribute to the organisation’s overall strategic plan
 They are the responsibility of the top level managers of
the SBU
 Functional/Tactical plans- these are plans that are
developed by the organisation’s functions
(departments)
 They outline how each function will contribute to the
implementation of the overall strategic plan
 It is the responsibility of the middle managers
 Functional/Tactical plans operationalize the strategic
plans
 Operational/Activity plans-these are plans that guide
the day to day activities of an organisation
 They operationalise the functional plans
 They are the responsibility of first line managers
Organising
 It is the process of establishing a structure of an
organisation and the allocation of resources
 Organizing means that managers coordinate the human
and material resources of the organisation. The
effectiveness of an organisation depends on its ability to
marshal its resources to attain its goals.
ORGANISATIONAL STRUCTURE
 Structure is a pattern of relationships among positions
and among members of an organisation.
 Structure makes possible the management function and
creates a framework of order and command thru which
activities of the organisation can be performed

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BENEFITS OF STRUCTURE
 Assigns resources to tasks
 Clarifies employee responsibilities and how they should
interact using job descriptions, organisation charts, etc.
 Helps employees to know what is expected of them
through rules and regulations
 Makes it possible to evaluate employee performance

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 Enable decision making through designing methods of
collecting and evaluating information
 Creates order in the organisation through assigning
authority and responsibility
What are the other benefits?

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ORGANISATIONAL STRUCTURE
PRINCIPLES
 Specialization –process of identifying particular
tasks and assigning them to individuals/teams
trained to perform them
 Standardization-process of developing an
organization's procedures in such a way that
employee performance of tasks is consistent HOW
IS THIS ACHIEVED?

60
 Co-ordination-are the formal and informal
procedures that integrate activities performed by
separate groups in an organisation. HOW?
 Authority-the right to decide and act, this is
distributed differently in organization's
CENTRALISATION vs. DECENTRALISATION
 Size of work group (span of control) how many
people should be in a work group; section and
department or even the entire organisation

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TYPES OF STRUCTURES
1. Functional-based on kind(s) of work activities.
Authority tends to be centralized
2. Product/Market structure-based on the
products/markets being served by the
organisation
3. Matrix/Taskforce-designed to overcome
weaknesses of the former two structures. Is also
not permanent.

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Functional structure
advantages
 Fosters the development of expertise as it
requires more technical skills
 Requires few interpersonal skills
 Requires little internal co-ordination
 Suitable for stable environment
disadvantages
 Does not foster development of general managers
 Has a narrow perspective and does not encourage
innovation
 Causes bottlenecks due to sequential task performance
 Fosters conflict over product priorities
 Slow response time in large organisations
 Holds top management accountable for profitability
 Focus on departmental goals at the expense of
organisational issues
Product/market structure
 suitable for a changing environment
 Allows for high product visibility
 Facilitates training of general managers
 Allows for better assessment of managers’ performance
 Adaptable to local needs
 allows parallel processing of multiple tasks
 Allows full concentration on tasks
disadvantages
 Fosters politics in resource allocation
 Does not foster co-ordination of activities among
divisions
 Creates conflicts between divisional and corporate
priorities
 May be difficult to manage diverse lines
Matrix structure
 Gives flexibility to the organisation
 Stimulates interdisciplinary co-operation
 Develops employee skills
 Allows expertise to be moved to areas of need
 Motivates people through identifying with the end
product
 Involves and challenges people
 Frees top management for planning
disadvantages
 Risks duplication of effort by project teams
 Risks creating a feeling of anarchy
 Very costly to implement
 May lead to more discussion than action
 Requires high interpersonal skills
 affects moral when personnel are reassigned on
completion of task
 Encourages power struggles
DETERMINANTS OF STRUCTURES
 Strategy being pursued by an organisation
 External environment
 Stable environment= no unexpected or sudden changes
are rare
 changing environment= changes in products, markets,
laws or technology etc. are unlikely to take management
by surprise, as trends can be used to predict the future.
(probability can be attached)
 Turbulent environment= changes are sudden and break
away from the past/tradition

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 Cannot attach probability
Coping structures:
 Mechanistic system
 Specialisation
 High job depth
Suitable for stable environment
 Organic system
 Individuals work in group settings
 Open and genuine communication
Suitable for turbulent environment
NB. Combination of two suitable for changing
environment
 Technology/Task
 Study carried out by Woodward
 Divided-firms into 3 categories unit and small batch
production, large batch and mass production and
process production
Findings:
 The more complex the technology the more
managerial positions
 Span of management increases from unit to process
production method
 The greater the technological complexity, the larger
the clerical and administrative staff
 Nature of employees/managers
 Management’s beliefs- theory X vs. Y
 Employees’ background- level of education, skills
levels, etc.
 Stage in organisation life cycle
 Entrepreneurial= focus is on innovation, creativity and
acquisition of resources
 Collectivity stage= emphasis on cohesion,
commitment, co-operation and a personal form of
leadership
 Formalisation and control= emphasis is on efficiency
and developing rules and procedures to enhance
stability. Thus organisation becomes more
conservative
 Bureaucracy= focuses on rules and procedures at the
expense of task performance. Tasks become undoable
without reference to policies and procedures
Leading

 Influencing, inspiring and directing the actions of


subordinates towards desired organisational goals
 influence followers to act
 Followers expect intrinsic and extrinsic rewards
 Followers give up their decision making power to
follow leader
Sources of power to influence
 Legitimate power = obtained from the position that
the leader occupies in the organisational hierarchy.
Also referred to as position power
 Expert power = obtained from leader’s perceived
expertise/knowledge
 Reward power = based on leader’s ability to provide
valued rewards
 Coercive power = based on leader’s ability to punish
for not engaging in positive actions I
 Referent power = based on follower’s desire to be
identified with the leader or the leader being
admired/liked by followers
 Information power = based on the leader’s access to
and control over the distribution of important
information about organisational operations or future
plans
LEADERSHIP SKILLS
 Empower subordinates- allows them to participate in
decision making
 Self understand- recognise their weaknesses, develop
an ability to accept criticism and grow on the job
 Visionary- know where they want to be (a better
future) and effectively communicate it to followers
actively involving them
Leadership skills contd.
 Intuition- constantly scan the environment hence are
able to anticipate changes, take calculated risks and
build trust
 Value congruence- reconcile subordinate’s values to
organisational goals
Leadership vs. Management
A leader A manager
Motivating; influencing and changing Practicing stewardship, directing and
behaviour being held accountable for resources
Inspiring, setting the tone and Executing plans, implementing, and
articulating a vision delivering the goods and services
Managing people Managing resources (both human and
other resources)
Being charismatic Being conscientious
Being visionary Planning, organising, directing and
controlling
Understanding and using power and Understanding and using authority and
influence responsibility
Acting decisively Acting responsibility
Putting people first-knowing, Putting customers first—knowing,
responding to and acting for followers responding to and acting for customers
APPROACHES TO LEADERSHIP
 Traits approach=leaders are born thus they have
certain attributes
1. Physical
2. Social background
3. Personality
4. Social characteristics
5. Task related characteristics
7 common characteristics of
leaders
 Trustworthy
 Ambitious
 Think analytically
 Orderly
 Calm
 Confidence
 Enthusiastic
 Behavioral approach= what do effective managers
do? Based on Democratic vs. Authoritarian
behaviors
 Authoritarian being task centered
 Democratic being employee centered
 Blake and Mouton managerial grid attempts to
identify the most effective managerial behavior
Blake and Mouton’s managerial styles
 Style 1.1 impoverished management =no management
taking place. Also known as laissez-faire.
 Style 1-.9country club management =high concern for
employees and no concern for tasks to be performed
 Style 9.1authoritarian management =high concern for
production and efficiency, no concern for employees
 Style 5.5 middle of the road management =manager
has intermediate concern for both production and
employee satisfaction
 Style 9.9 team/democratic management =manager
has high concern for both production efficiency and
employee morale and satisfaction
SITUATIONAL LEADERSHIP
 Based on the belief that leadership style is determined
by circumstances
 Circumstances are determined by:
 Employee level of maturity
 Organisational factors
 The leader/manager
Employee level of maturity
 Desire for responsibility
 Knowledge and experience
 Past experience with managers
 expectations
Organisational factors

 Organisation culture
 Nature of tasks
 Pressure of time
 Work groups
 The general environment
The leader/manager
 Manager’s background
 Manager’s values and knowledge
 Superior’s expectations and behavior
 peer’s expectations
Control
 Controlling is a very important management function
which entails the monitoring, comparing and
correcting work performance
 Effective controls ensure that activities are completed
in ways that lead to the attainment of goals
Why control is necessary?
• It is the only way that managers can know whether
organizational goals are being met and if not, the
reasons why.
• Control is important because of employee
empowerment. Many managers are reluctant to
empower their employees because they fear something
will go wrong for which they would be held
responsible. However, an effective control system can
provide information and feedback on employee
performance and minimize the chance of potential
problems
Why control is necessary-
continued
 It facilities the protection of an organisation and its
assets. Today’s environment brings heightened threats
from natural disasters, financial scandals, workplace
violence, supply chain disruptions, security breaches,
and even possible terror attacks. Managers must
protect organizational assets in the event that as of
these things should happen.
The Control Process
 The control process is a three step process of
measuring actual performance, comparing actual
performance against a standard, and taking
managerial action to correct deviations or to address
inadequate standards.
 The control process assumes that performance
standards already exist, and they do
continued
 Step 1:-Measuring Actual Performance-to determine
what actual performance is, a manager must first get
information about it. Thus, the first step in control is
measuring.
 Four approaches used by managers to measure and
report actual performance are personal observations,
statistical reports, oral reports, and written reports.
 Step 2:-Comparing Actual Performance Against the
Standard-The comparing step determines the
variation between actual performance and the
standard
The control process-continued
 Step 3-Taking Managerial Action-managers can choose
among three possible courses of action: do nothing,
correct the actual performance, or revise the
standards:
1. Correct Actual Performance-depending on what the
problem is, a manager could take different corrective
actions. For instance, if unsatisfactory work is the reason
for performance variations, the manager could correct it
by things such as training programmes, disciplinary
action, changes in compensation practices and so forth.
Control process-continued
ii. Revise the standard-its possible that the variance was
a result of an unrealistic standard-too low or too high a
goal. In that situation, the standard needs the corrective
action, not the performance. If performance consistently
exceeds the goal, then a manager should look at whether
the goal is too easy and needs to be raised.
Controlling for organizational
Performance
Measures of Organizational Performance:
i. Organisational Productivity-productivity is the
amount of goods or services produced divided by the
inputs needed to generate that output. Output is
measured by the sales revenue an organisation
receives when goods are sold (selling priceXnumber
sold).
ii. Organisational effectiveness: is a measure of how
appropriate organizational goals are and how well
those goals are being met
Controlling for organizational
Performance-continued
iii. Industry and Company Rankings-rankings are a
popular way for managers to measure their
organisation’s performance. Rankings are determined by
specific performance measures, which are different for
each list.
Types of Control
1. Feed forward Control-prevents problems because it
takes place before the actual activity. The key to feed
forward controls is taking managerial action before a
problem occurs. That way, problems can be prevented
rather than having to correct them after any
damage(poor-quality products, lost customers, lost
revenue, etc.) has already been done. However, these
controls require timely and accurate information that
isn’t always easy to get.
Types of control-continued
11. Concurrent control-takes place while a work activity is
in progress. The best-known form of concurrent control
is direct supervision, another term for it is management
by walking around (MBWA). MBWA is a situation where
a manager is in the work area interacting directly with
employees.
iii. Feedback Control-in feedback control, the control
takes place after the activity is done.
Control Tools that Managers can
use
1. Financial Controls: this includes the analysis of
income statements for excessive expenses. Managers
might also calculate financial ratios to ensure that
sufficient cash is available to pay ongoing expenses, that
debt levels haven’t become too high, or that assets are
being used productively. Managers might use traditional
financial measures such as ratio analysis and budget
analysis.
Control Tools that Managers can
Use-continued
2. Balanced Scorecard:- the balanced score card
approach is a way to evaluate organizational
performance from more than just the financial
perspective. A balanced scorecard typically looks at four
areas that contribute to a company’s performance:
financial, customer, internal processes, and
people/innovation/growth assets. According to this
approach, managers should develop goals in each of the
four areas and then measure whether the goals are being
met
Control Tools that Managers can
Use-continued
3. Information controls-managers deal with information
controls in two ways:
a. As a tool to help them control other organizational
activities and
b. As an organizational area they need to control
1. How is information used in controlling:-managers
need the right time and in the right amount to monitor
and measure organizational activities and performance
Control Tools that Managers can
use
In measuring actual performance, managers need
information about what is happening within their area
of responsibility and about the standards in order to be
able to compare actual performance with the standard.
They also rely on information to help them determine if
deviations are acceptable. Finally, they rely on
information to help them develop appropriate courses of
action.
continued
ii. Controlling Information-managers must have
comprehensive and secure controls in place to protect
that information. Such controls can range from data
encryption to system firewalls to data backups, and
other techniques as well. Problems can lurk in places
that as organisation might not even have considered, like
blogs, search engines, and Twitter accounts. Sensitive,
defamatory, confidential, or embarrassing,
organizational information has found its way inot
search engine results.
DELEGATION
 Act of assigning formal authority and responsibility for
completion of a specific activity
 NB. One does not delegate accountability. Manager
will always remain accountable
 Delegafollows tion the scalar principle/ chain of
command- authority flows from top to bottom and
one boss for each subordinate
DELEGATION PROCESS
 Decide which tasks to delegate
 Decide who to delegate to - who has the time, skills
and for whom is it an appropriate and useful
training and development experience
 Delegate the task – provide all necessary
information, delegate by results not method
whenever possible and establish free and open
communication
 Establish feedback system
The Delegation Grid
Importance
Low High
B1 High
Delegate , A
Have it done Do it now , yourself

Urgency
C B2
Delegate , Delegate parts
Have it done sometime Schedule When Low
Manager’s barriers to delegation
 Lack of confidence in subordinate abilities
 Manager feels they can do it better
 Manager may feel it takes too much time to explain
what needs to be done
 Manager may not have skills to delegate
 Insecurity
Subordinate’s fears
 Insecurity – penalties for failure to perform may
outweigh benefits of accepting assignment
 Lack of sufficient incentives to assume extra
responsibilities
 Organisational culture, norms and climate may
discourage delegation
Overcoming barriers

 Improve communication between managers and


subordinates
 Managers must have knowledge about subordinates
abilities
 Managers must be supportive of their subordinates
and encourage them to use their abilities
 Manager’s must increase complexity of delegated tasks
and degree of delegation over time
 Control systems must be in place to monitor
performance and take corrective action timeously
 Manager must clearly spell out subordinate’s authority
 Motivate and train staff
 Set up example at top
PROBLEM SOLVING AND DECISION
MAKING

Problem = a situation where an actual state of affairs


differs from a desired state of affairs
Decision making = process of identifying and selecting a
course of action to deal with a specific problem or take
advantage of an opportunity
Pre-conditions for decision making

 A gap/difference between present situation and


desired situation
 Decision maker must be aware of the gap
 Decision maker must be motivated to act on the gap
 Decision maker must have resources and capability to
act on the gap
CLASSES OF ORGANISTIONAL DECISIONS

 Routine decisions = standardized choices made in


response to well defined and known problems. Also
known as standard operating procedures
 Avoid making routine decisions when problem calls
for adaptive or innovative decisions
Adaptive decisions
 Choices made in response to a combination of
moderately unusual and only partially known
problems and alternative solutions
 Involve a gradual modification of past routine
decisions
 Continuous improvement takes place when a series of
adaptive decisions are made over time- incremental
improvement
Innovative decisions
 Based on discovery, identification and diagnosis of
unusual and ambiguous problems
 Calls for the development of unique and creative
solutions that usually break with the past
 Decisions are often made on the basis of
incomplete and rapidly changing information
DECISION MAKING MODELS
 Rational model = logical and objective method of
arriving at a solution
 Bounded rationality model = acknowledges individual’s
rationality limitations
 It also explains why different individuals with the same
information reach different decisions
 The political model- acknowledges that decisions are
arrived at after taking into account the interests of
powerful stakeholders
 In the model stakeholders define problems for their own
advantage
 Model also recognizes the likelihood of conflicting
objectives among stakeholders
Rational Model Process
 Define and diagnose problem. Avoid symptoms
 Set objectives
 Search for alternative solutions
 Compare and evaluate solutions
 Choose among alternative solutions
 Implement the selected solution
 Monitor and evaluate
Barriers to decision making
 Relaxed avoidance = deciding not to act as
consequences are insignificant
 Relaxed change = taking low risk alternative as no
serious analysis is done
 Defensive avoidance = decision maker fails to find
solutions, seeks the easy way out- delegate the
responsibility or buck passes
 Panic = inappropriate handling of situation
Bounded rationality
 Decision makers select less than the best alternative
solution (SATISFICE) due inherent constraints -
organisational or individual
 Decision makers engage in limited search for
alternative solutions
 Decision makers have inadequate information and
control over environmental factors influencing
outcome of decisions
Political model
 Stakeholders often withhold or distort information to
further their interests – to avoid a WIN-LOSE
situation
 Decisions are subjective rather than based on facts
 Decisions are defined by powerful stake holders
 Decisions are piecemeal and based on informal
communication
Control

 Managerial control- methods that managers use to


ensure that employee behaviour and performance
conform to organizational objectives, plans and
standards
 Steps in Control process:
step 1- set up standards and
methods of measuring performance

 Base standards on previous performance


 Standards must be specified in meaningful terms and
accepted by individuals involved
 Standards must be achievable, reasonable, challenging
 The method of measurement should be acceptable
and accurate
Step 2 – measure performance
 This is an ongoing repetitive process
 Performance must be measured on a regular basis
(weekly, monthly,)
Step 3- determine whether
performance matches standard

 Compare measured results with the established targets


or standards previously set.
 If performance matches standards, do nothing as it is
assumed that everything is under control
Step 4- take corrective action
 If performance falls short of standards, take corrective
action
Organizational factors creating
need for control
 Change
 Complexity
 Mistakes
 Delegation
 Standardize acceptable performance
 Limit authority exercised by managers
 Protect the organization’s assets e.g. through
audits
 Maintenance of high quality products
 Measure and direct employee and
departmental performance
Characteristics of effective control
system
 Accurate
 Timely
 Objective and comprehensive
 Focused on strategic control points
 Economically realistic
 Organizationally realistic
 Coordinated with the organization's work flow
 Flexible
 Prescriptive and operational
 Accepted by organizational members
Types of controls

 Feed forward/preventative controls– meant reduce


errors and minimize the need for corrective action.
Include rules, regulations, standards, training and
selection
 Concurrent/corrective controls- – intended to change
incorrect employees behaviors and performance so
that they conform to established procedures
 Feedback controls- these are controls that alert
managers after errors have occurred
 Control = self regulating system Vs non self –
regulating OR preventive Vs corrective
 Self regulating system – a system of control that once
set up works continuously without or effort on the part
of management.
 Non-self regulating system – this requires checks to be
made to regulate the organization
Sources of control
 Organizational control – formal managerial control
 Group control – refer to norms and values that group
members share and maintain through rewards and
punishment e.g. = silent treatment
 Individual self control – control mechanism operating
consciously or unconsciously within individuals
Controversial controls
 Computer monitoring – collection of detailed, minute-
by minute data on employee performance
 Polygraph tests – lie detector
 Undercover security agents – entrapment
Problems in establishing control
systems
 Easy to measure factors are given too much weight,
while difficult to measure items are not given enough
attention
 Short run factors may be over emphasized at the
expense of long run factors (such as goodwill or long
term growth and survival)
 The control system may not be adjusted to reflect
shifts in importance of various activities and goals over
time. Many managers accept the usefulness of existing
controls rather than adjusting them as situations
change and new objectives emerge.
 Management by exception-
 Management concerned when there are deviations
from set standards/ targets.
 Pareto principle- Also known as the 80/20
principle/ syndrome.
 Only a small part of operation give the most results
 E.g. 80% of the company problems come from 20%
of employees.