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Management, its evolution, levels and approaches to management

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omWHAT IS MANAGEMENT?

The stem of the word is manage, which according to Webster’s 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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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 efficient

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

I. Development of science about management of people in the course of production

II. Forming of administrative mechanisms on principles of development of human relations

III. Construction of management systems focused on the market

IV. Active application of quantitative methods as important directions of formalisation of methods of management and their transformation in management decisions

V. Forming of system and situational approachesVI. 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 finding shelter), the study of management as a scientific 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)

Fayol’s 5 management functions:1. Forecast and plan2. Organize3. Command4. Coordinate5. Control

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Classical Management Theory (Fayol)Fayol’s 14 principles for organizational design and effective

administration: Specialization/division of labor. People should perform tasks specific 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. Benefits 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 one’s 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

OrganizingOrganizing 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 Importance of the organization process and organization structure.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 Fayol’s command and coordinate steps to provide a

better description of what managers actually do in today’s 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 The degree of leader's influence on individuals and group effectiveness individuals and group effectiveness

is affected by several energizing is affected by several energizing forces: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!