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- 1. CHAPTER 1 ELEMENTS OF MANAGEMENT
- 2. LEARNING OBJECTIVE 1. Definition of management and its element. 2. History of management evolution and management theory 3. Management levels, skills and roles of manager
- 3. DEFINITION OF MANAGERS Managers are defined as individuals who are owners, founders or employees in an organization. Managers are powerful individuals in an organization as they possess authority. They have the power to make decisions and power to utilize organizational resources in the best way possible in order to achieve organizational goals and objectives.
- 4. DEFINITION OF MANAGEMENT Certo(1997) process to accomplish organizational goals by working with humans & other organizational resources Management Institute of Malaysia (MIM) process of completing task through & with other people
- 5. DEFINITION OF MANAGEMENT A set of activities designed to manage certain tasks in order to achieve organizational goals and objectives efficiently & effectively through 4 basic functions of management FUNCTION OF MANAGEMENT?????
- 6. LEVELS OF MANAGEMENT Top Line Management Middle Line Management First Line Management
- 7. Top Line Manager Highest level Strategic managers Establish organization goals, objectives, & operational policies CEO, MD, BoD President, VP Middle Manager Between top & first line Tactical manager Responsible for subordinates HOD, Branch Manager, GM First Line Manager Lowest level Operational level Responsible for duties of support staff Supervisors, Section Officer, Foreman
- 8. FUNCTIONS OF MANAGEMENT Planning Organizing Directing Controlling
- 9. PLANNING The process of forming organizational goals and objectives based on logical plan The management will set the goals and procedures to achieve the goals based on the available resources in the organization
- 10. ORGANIZING o coordinate activities conducted e individuals in an organization
- 11. DIRECTING The process of training employees on how to perform their duties in the organization
- 12. CONTROLLING The managements effort to ensure that the organization is moving towards achieving its goals based on develop plans.
- 13. MANAGEMENT SKILLS Conceptual Human Technical
- 14. CONCEPTUAL SKILLS Managers ability and capability to think about methods and coordinate activities or different units Examples:- Who needs MOST????
- 15. HUMAN SKILLS Ability to understand and motivate others Emphasize on social and individual relationship within organization Examples:- Who needs MOST????
- 16. TECHNICAL SKILLS Ability to use tools, rules, procedures and techniques in a job Examples:- Who needs MOST????
- 17. THE ROLES OF MANAGER Interpersonal relationship Disseminating information Decision making
- 19. Observer Spokesperson Disseminator of information
- 20. MAKING DECISION Disturbance Handler Resource Allocator
- 21. THE HISTORY OF MANAGEMENT ROOTS Early Stage (before 1930) Middle Stage (1930-1945) Present Stage (1945 to the present)
- 22. EVOLUTION OF MANAGEMENT THEORY Pre-classical Approach Classical Approach Administrative and Behavioral Approach Quantitative Approach Behavioral and Human Relation Approach Contemporary/ Current Approach Early Stage Final Stage Middle Stage
- 23. PRE-CLASSICAL APPROACH PIONEER CONTRIBUTIONS Robert Owen (1771-1858) Emphasis on health, education and working environment Charles Babbage (1792-1871) Father of Modern Computing Promotes job specialization, profit sharing ie Bonuses Henry R. Towne (1844-1924) Importance of management skills
- 24. CLASSICAL APPROACH SCIENTIFIC MANAGEMENT THEORY CLASSIC MANAGEMENT THEORY Importance of conducting scientific studies on working methods to improve employee efficiency Setting guidelines & methods to manage a complex organization -Frederick W. Taylor -Frank & Lillian Gilbreth -Henry Fayol -Max Weber
- 25. FREDERICK W. TAYLOR Father of Scientific Management Studied relationship between employees & the job designed Frederick Taylors Basic Principles Conduct scientific studies Select suitable employee Allocate task & responsibilities Fair remuneration
- 26. FRANK & LILLIAN GILBRETH Conducted research on time and motion study emphasized reducing workflow to the most basic work movement Objective of TIME & MOTION STUDY Analyze each work movement Identify better methods to perform it
- 27. HENRY FAYOL Known as Father of Modern Management The pioneer to discuss management as a process Introduce the FIVE MANAGEMENT FUNCTION Planning Organizing commanding Coordinating Controlling
- 28. HENRI FAYOLS MANAGEMENT PRINCIPLES PRINCIPLES DIVISION OF WORK CENTRALIZATION AUTHORITY LINE OF AUTHORITY DISCIPLINE ORGANIZATION UNITY OF COMMAND EQUITY UNITY OF DIRECTION STABILITY OF TENURE GENERAL INTEREST INITIATIVES REMUNERATION ESPIRITS DE CORPS
- 29. MAX WEBER Introduce bureaucratic structure All organizational goals and activities are carefully & rationally viewed Bureaucracy is a formal system that is formed in the administration of an organization in order to create efficiency and effectiveness in organizational operations
- 30. BUREAUCRATIC STRUCTURE Specialization of workforce Career development Clear management hierarchy Not personal in nature Usage of rules & procedures
- 31. ADMINISTRATIVE & BEHAVIORAL APPROACH A study on human aspects in the production process. There are two theories:- HUMAN RELATIONS MOVEMENT BEHAVIORAL SCIENCE THEORY HR means how manager interacts with employee Emphasize on scientific research as the foundation for understand human behavior Hawthorne Studies Maslow Hierarchy Of Needs Theory
- 32. QUANTITATIVE APPROACH Emphasizes the use of mathematical methods, statistics and other information tools to aid decision making in order to increase organizational effectiveness. This approach produce three(3) theories: a. Management theory b. Operations management Theory c. Management Information Systems
- 33. CONTEMPORARY/ CURRENT APPROACH An innovative approach in management There are two theories:- 1) System Theory 2) Contingency Theory
- 34. SYSTEM THEORY Organization is a system that comprises of various divisions related to one another but have one common goal Emphasized the need of the organization to interact with the organizations internal and external elements in order to ensure the organizations success
- 35. CONTINGENCY THEORY Every action taken by manager must suit the situation For example, a leadership style may not appropriate for all situations.
- 36. Constraints on Managers: External Environment & The Organizational Culture The Management Environment 36
- 38. The External Environment Economic conditions Include interest rates, inflation rates, changes in disposable income, stock market fluctuations, and the general business cycle, among other things Political/legal conditions Include the general political stability of countries in which an organization does business and the specific attitudes that elected officials have toward business Federal and provincial governments can influence what organizations can and cannot do. Some examples of legislation include: Canadian Human Rights Act Canadas Employment Equity Act Competition Act Marketing boards 38
- 39. The External Environment (contd) Socio-cultural conditions Include the changing expectations of society Demographic conditions Include physical characteristics of a population (gender, age, level of education, geographic location, income and family composition) Technological conditions Include the changes that are occurring in technology Global conditions Include global competitors and global consumer markets 39
- 40. The Organizations Culture What Is Organizational Culture? A system of shared meanings and common beliefs held by organizational members that determine, to a large degree, how they act toward each other The way we do things around here Values, symbols, rituals, myths, and practices Implications: Culture is a perception Culture is shared Culture is a descriptive term 40
- 41. Benefits of a Strong Culture Creates a stronger employee commitment to the organization Aids in the recruitment and socialization of new employees Fosters higher organizational performance by instilling and promoting employee initiative 41
- 42. Sources and Continuance of Organizational Culture Sources of Organizational Culture Past practices of the organization The organizations founder Continuation of the Organizational Culture Recruitment of employees who fit Behaviour of top management Socialization of new employees to help them adapt to the culture 42
- 43. How Employees Learn Culture Stories Narratives of significant events or actions of people that convey the spirit of the organization Rituals Repetitive sequences of activities that express and reinforce the values of the organization (urutan aktiviti secara berulang- mengukuhkan nilai/amalan) Material Symbols Physical assets distinguishing the organization Language Acronyms and jargon of terms, phrases, and word meanings specific to an organization 43
- 44. How Culture Affects Managers Cultural Constraints on Managers Whatever managerial actions the organization recognizes as proper or improper on its behalf Whatever organizational activities the organization values and encourages The overall strength or weakness of the organizational culture 44