Management, its evolution, levels and approaches to management

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Management, its evolution, levels and approaches
to management
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WHAT IS MANAGEMENT?

• The stem of the word is manage, which according
  to Websters Dictionary is a verb meaning to
  control the movement or behavior of, to lead or
  direct, or to succeed in accomplishing (Allee,
  1990).

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WHAT IS MANAGEMENT?

• According to Tootelian and Gaedeke (1993),
  management is a process which brings together
  resources and unites them in such a way that,
  collectively, they achieve goals or objectives in
  the most ef?cient manner possible.

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Principles of management

• Purposefulness - any activity at the enterprise
  should be directed on achievement of specific
  goals and execution of the tasks
• Taking into account of requirements and interests
  - this principle urged to satisfy requirements
  and interests of workers for the purpose of
  enterprise goal achievement on motivation bases
• Hierarchy - an arrangement of administrative
  posts in organizational structure since bottom
  level of management and finishing the higher
• Interdependence - the organisation consists of
  internal factors (The purposes, structure,
  technology, workers, tasks, resources) which are
  closely connected among themselves.
• Dynamic balance is a continuous development of
  the enterprise and observance of general balance
  at each stage of development
• Profitability - forms principles of functioning
  of the enterprise from a position of equation of
  expenses, profits, provides development of
  budgetary relations
• Activization - a principle which pushes the
  enterprise to effectiveness, constant
  development, use of innovations
• Systematic character - according to this
  principle the enterprise is considered as open
  system which consists from interdependent
  elements
• Autocracy - expects availability of the unique
  responsible centre which exercises administration
  and coordination of activity of the enterprise
  for the purpose of achievement of its purposes
•  

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THE HISTORY OF MANAGEMENT

1. Development of science about management of people
   in the course of production
2. Forming of administrative mechanisms on
   principles of development of human relations
3. Construction of management systems focused on the
   market
4. Active application of quantitative methods as
   important directions of formalisation of methods
   of management and their transformation in
   management decisions
5. Forming of system and situational approaches
6. Computerisation of management processes

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THE HISTORY OF MANAGEMENT

• While management and managers have been with us
  since humans have had tasks to perform and goals
  to accomplish (e.g., gathering food or ?nding
  shelter), the study of management as a scienti?c
  and academic curriculum is relatively new.
• Around the turn of the twentieth century, an
  American industrialist and a French engineer
  began to publish observations in what would
  become known as the classical, or administrative,
  school of management thought. It was F. Taylor
  and A. Fayol.

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Classical Management Theory (Fayol)

• Fayols 5 management functions
• 1. Forecast and plan
• 2. Organize
• 3. Command
• 4. Coordinate
• 5. Control

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Classical Management Theory (Fayol)

• Fayols 14 principles for organizational design
  and effective administration
• Specialization/division of labor. People should
  perform tasks speci?c to their skills. No one
  person should be expected to perform all the
  skills needed to run an organization.
• Authority with corresponding responsibility.
  People with responsibility also have sufficient
  authority within an organization to ensure that a
  task is performed.
• Discipline. People should follow rules, with
  consequences for not following rules.
• Unity of command. The organization has an
  administrator who is recognized as having the
  ultimate authority (e.g., CEO or president).
• Unity of direction. The organization has a sense
  of direction or vision that is recognized by all
  members (e.g., mission statement).
• Subordination of individual interest to general
  interest. The goals of the organization supersede
  the goals of any individuals within the
  organization.
• Remuneration of staff. Employees should be paid
  appropriately given the market for their skills
  and their level of responsibility.
• Centralization. Performing similar tasks at a
  single location is more effective than performing
  these tasks at multiple locations.
• Scalar chain/line of authority. Each employee has
  one, and only one, direct supervisor.
• Order. Tasks should be performed in a systematic
  fashion.
• Equity. Supervisors should treat employees with a
  sense of fairness.
• Stability of tenure. Bene?ts should go to
  employees who have stayed with an organization
  longer.
• Initiative. Organizations and employees are more
  effective when they are proactive, not reactive.
• Esprit de corps. Teamwork, harmony

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THE MANAGEMENT PROCESS
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PLANNING

• Planning is predetermining a course of action
  based on ones goals and objectives. Managers
  must consider many factors when planning,
  including their internal and external
  environments.

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PLANNING

• Characteristics of planning
• Goal oriented.
• Primacy.
• Pervasive.
• Flexible.
• Continuous.
• Involves choice.
• Futuristic.
• Mental exercise.
• Planning premises.

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PLANNING

• Importance of planning
• Make objectives clear and specific.
• Make activities meaningful.
• Reduce the risk of uncertainty.
• Facilitators coordination.
• Facilitators decision making.
• Promotes creativity.
• Provides basis of control.
• Leads to economy and efficiency.
• Improves adoptive behavior.
• Facilitates integration.

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Formal and informal planning

• Formal planning usually forces managers to
  consider all the important factors and focus upon
  both short- and long-range consequences. Formal
  planning is a systematic planning process during
  which plans are coordinated throughout the
  organization and are usually recorded in writing.
  
• Planning that is unsystematic, lacks
  coordination, and involves only parts of the
  organizations called informal planning

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PLANNING

• Stages in planning.
• The first step in planning is to develop
  organizational objectives.
• Second, planning specialists and top management
  develop a strategic plan and communicate it to
  middle managers.
• Third, use the strategic plans to coordinate the
  development of intermediate plans by middle
  managers.
• Fourth, department managers and supervisors
  develop operating plans that are consistent with
  the intermediate plans.
• Fifth, implementation involves making decisions
  and initiating actions to carry out the plans.
• Sixth, the final stage, follow-up and control,
  which is critical.

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ORGANIZING

• Organizing is the arrangement and relationship of
  activities and resources necessary for the
  effective accomplishment of a goal or objective.
  Once a pharmacist has decided which drug products
  or services she should offer, she needs to ask
  herself what resources she needs to provide them,
  how she will go about obtaining these resources,
  and then determine when she will need to obtain
  them.

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ORGANIZING

• Importance of the organization process and
  organization structure.
• Promote specialization.
• Defines jobs.
• Classifies authority and power.
• Facilitators' coordination.
• Act as a source of support security satisfaction.
• Facilitators' adaptation.
• Facilitators' growth.
• Stimulators creativity.

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LEADING

• This step combines Fayols command and coordinate
  steps to provide a better description of what
  managers actually do in todays world. Leading or
  directing involves bringing about purposeful
  action toward some desired outcome.

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LEADING

• The degree of leader's influence on individuals
  and group effectiveness is affected by several
  energizing forces
• Individual factors.
• Organizational factors.
• The interaction (match or conflict) between
  individual and organizational factors.

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CONTROL

• Control or evaluation involves reviewing the
  progress that has been made toward the objectives
  that were set out in the plan. This step involves
  not only determining what actually happened but
  also why it happened.

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MOTIVATION

• Motivation is to inspire people to work,
  individually or in groups in the ways such as to
  produce best results. It is the will to act. It
  is the willingness to exert high levels of effort
  towards organizational goals, conditioned by the
  efforts and ability to satisfy some individual
  need.

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MOTIVATION
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MOTIVATION

• (1) Achievement Motivation
• It is the drive to pursue and attain goals. An
  individual with achievement motivation wishes to
  achieve objectives and advance up on the ladder
  of success. Here, accomplishment is important for
  its own shake and not for the rewards that
  accompany it. It is similar to Kaizen approach
  of Japanese Management.
• (2) Affiliation Motivation
• It is a drive to relate to people on a social
  basis. Persons with affiliation motivation
  perform work better when they are complimented
  for their favorable attitudes and co-operation.
• (3) Competence Motivation
• It is the drive to be good at something, allowing
  the individual to perform high quality work.
  Competence motivated people seek job mastery,
  take pride in developing and using their
  problem-solving skills and strive to be creative
  when confronted with obstacles. They learn from
  their experience.
• (4) Power Motivation
• It is the drive to influence people and change
  situations. Power motivated people wish to create
  an impact on their organization and are willing
  to take risks to do so.
• (5) Attitude Motivation
• Attitude motivation is how people think and feel.
  It is their self confidence, their belief in
  themselves, their attitude to life. It is how
  they feel about the future and how they react to
  the past.
• (6) Incentive Motivation
• It is where a person or a team reaps a reward
  from an activity. It is You do this and you get
  that, attitude. It is the types of awards and
  prizes that drive people to work a little harder.
• (7) Fear Motivation
• Fear motivation coercions a person to act against
  will. It is instantaneous and gets the job done
  quickly. It is helpful in the short run.

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MOTIVATION

• REQUISITES TO MOTIVATE
• We have to be Motivated to Motivate
• Motivation requires a goal
• Motivation once established, does not last if not
  repeated
• Motivation requires Recognition
• Participation has motivating effect
• Seeing ourselves progressing Motivates us
• Challenge only motivates if you can win
• Everybody has a motivational fuse i.e. everybody
  can be motivated
• Group belonging motivates

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DIFFERENCE BETWEEN MOTIVATION, SATISFACTION,
INSPIRATION AND MANIPULATION
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LEVELS OF MANAGEMENT

• The term Levels of Management refers to a line
  of demarcation between various managerial
  positions in an organization. The number of
  levels in management increases when the size of
  the business and work force increases and vice
  versa. The level of management determines a chain
  of command, the amount of authority status
  enjoyed by any managerial position.

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LEVELS OF MANAGEMENT
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Thank you for attention!