Chapter 11: Management Approaches and Employee Recruitment Flashcards
General overview of Management [5]
- Management is the process of controlling resources and people to achieve a specific purpose.
- In simple words, management is the art of getting things done through people in organizations.
- Management also deals with the behavior of people: sets objectives, communicates with, motivates, and develops people.
- The manager is a dynamic, life-giving element in every business.
- The purpose of management is to help achieve objectives of an organization through efficient usage of human, physical, and financial resources.
Roles of Management [9]
Role of Management
* Set objectives
* Plan for the achievement of those objectives
* Organise resources and employees for achievement of plan
* Establish controls for activities and operations
* Co-ordinate activities
* Establish effective communication system (both inside & outside the organisation)
* Monitor actual performance
* Take corrective action where necessary
* Review actual achievements & establish new planning objectives.
What is Leadership [5]
- Leadership is termed as the process to influence the individuals to attain a common goal.
- Leadership is both similar as well as different from the concept of management in many ways.
- A successful leader is the one who is able to understand the needs and interests of a group of individuals or an organisation to achieve a specific purpose.
- Leadership also has the additional capacity to provide different opportunities to the employees so they can learn and grow professionally.
- It is important for a leader to possess certain qualities such as integrity, courage, attitude, initiative, energy, optimism, perseverance, balance, and ability to handle stress.
Managers vs Leaders [8]
- Transactional vs Transformations
- Doing things right vs Doing the right things
- Administer vs Innovate
- System focused vs People focused
- Control Reliance vs Inspire trust
- Short range view vs Long range view
- Imitates vs Originates
- Accepts the Status Quo vs Challenges the status quo
F.W. Taylor (1856–1915) and scientific management
- Four underlying principles of scientific management
- There should be a science of work:
. Analysis of work methods and work times
. Dividing larger tasks into smaller units
. Finding the most efficient way of carrying out tasks
. A fair level of performance or efficiency can be identified
. Workers should be rewarded accordingly (e.g., higher pay for performance exceeding standard level) - Workers should be selected carefully
. Should have skills and abilities that best suits the work
. Should also be trained in how to do the work efficiently - Scientifically-selected and trained workers and science of work should be brought together for best results and greatest efficiency
- There should be an equal division of work between the workers and management (Both should operate closely together)
F.W. Taylor (1856–1915) and scientific management
Criticisms of scientific management:
- It results in dull, repetitive, and monotonous work.
- Tasks are reduced to such small units that they demoralize the workers who do the jobs.
- Efficiency of employees will be low because they:
. Are doing dull and repetitive work
. Are not at all interested in what they are doing.
Henri Fayol (1841–1925) and principles of management
5 Main Tasks
Fayol suggested that there are 5 main tasks of management:
* Plan (and look ahead)
* Organise
* Command
* Co-ordinate
* Control (monitoring performance)
Henri Fayol (1841–1925) and principles of management
Principles of good management that apply to all types of organisation [14]
“DADU SEE I CROSS U”
- Division of Work – When employees are specialized, output can increase because they become increasingly skilled and efficient.
- Authority – Managers must have the authority to give orders.
- Discipline – Discipline must be maintained in organizations.
- Unity of Command – Employees should have only one direct boss.
- Scalar Chain – Hierarchy or chain of command should be very clear.
- Equity – Managers should be fair to staff at all times, both in maintaining discipline and acting with kindness where appropriate.
- Esprit de Corps – Should strive to promote team spirit and unity.
- Initiative – Employees should be given the necessary level of freedom to create and carry out plans.
- Centralization – How close employees are to decision-making process.
- Remuneration – Should be fair for all (financial and non-financial).
- Order – Workplace facilities must be clean, tidy, and safe for employees.
- Subordination of Individual Interests to the General Interest – Interests of one employee should not be allowed to become more important than those of the group.
- Stability of Tenure of Personnel – Managers should strive to minimize employee turnover.
- Unity of Direction – Teams with the same objective should be working under the direction of one manager, using one plan.
Principles of organisations – Lyndall Urwick [10]
- Balance: Various units of an organisation should be kept in balance.
- Authority: There should be a clear line of authority to every individual in a group.
- Definition: Content of each position (duties involved and responsibilities) and relationships with other positions should be clearly defined in writing and published to all concerned.
- Co-ordination: Facilitate co-ordination and unity of effort.
- Correspondence: Responsibility & authority should correspond.
- Continuity: Organisation’s structure should be designed to ensure the organisation’s survival.
- Responsibility: Responsibility of superior for acts of juniors.
- Objective: Organisation and all parts of it must be an expression of its main purpose.
- Specialisation: Activities of every member should be confined to the performance of a single function.
- Span of Control: No person should supervise more than 5 or 6 direct subordinates whose work links.
4 Main Features of Bureaucracy (Rosemary Stewart) [4]
- Specialisation:
. There is specialisation of work (not individuals).
. There is continuity.
. When one person leaves, the job continues, and another person fills the same position. - Hierarchy of authority:
. Hierarchy with clearly defined levels of authority and ‘ranks’ of managers. - A system of rules:
. People must know what the rules to do their job successfully are. - Impersonal:
. Exercise of authority and system of privileges and rewards are based on a clear set of rules.
Elton Mayo (1880–1949) [5]
- Work has a social value for workers.
- Informal organisation is important in affecting workers’ attitudes.
- Productivity of workers is affected by their self-esteem.
- Satisfaction lies in recognition, security, and a sense of belonging (rather than money rewards).
Motivation (and productivity) is affected by the relationship between management & workers
- Managers need to communicate with workers.
- Management must develop and apply ‘people skills’.
Elton Mayo (1880–1949) and the Human Relations School:
Theory X: [4]
- Average person dislikes work and will avoid it if possible.
- Average person prefers to be directed, wants to avoid responsibility, has no ambition.
- Management approach: authoritarian style (Manager instructs his employees and tells them what to do).
Elton Mayo (1880–1949) and the Human Relations School:
Theory Y: [6]
- Putting effort into work is as natural as play.
- Individuals will apply self-direction and self-control to work.
- Individuals usually accept and then seek responsibility.
- Individual’s commitment to the organisation’s objectives is related to rewards associated with achieving those.
- Individuals have much more potential that could be utilised.
- Management approach: participative style (Manager encourages employees to participate in decision-making).
Theory X is more suitable where? [2]
- In a factory environment.
- In situations when the manager must exercise his authority, because this is the only way of getting results.
Theory Y is more suitable where? [2]
- To manage the managers and professionals (better to explain problems to them to get their commitment).
- Where employees are positively motivated to work and mature (work must be sufficiently responsible to allow some flexibility).
William Ouchi: Theory Z
His study of Japanese companies found that in Japan [3]
- Managers have a high level of trust in their workers.
- They assume that workers have strong loyalty towards the company.
- Companies in turn show loyalty and give employment for life.
Some of the main features of Theory Z are set out below [8]
- Collective decision-making.
- Long-term employment and job security.
- Job rotation, generalization, and overall understanding of company operations replace job specialization as a key component of the model.
- Slow advancement/promotion.
- Emphasis on training and continual improvement of product and performance.
- Holistic concern for the worker and his or her family further personalizes management.
- Explicit, formalized measures, despite implicit, informal control, ensure efficiency of operations.
- Individual responsibility for shared accomplishments.
Peter Drucker (1909–2005)
He suggested that there are 5 areas of management responsibility:
1) Setting objectives.
- Set objectives for the organization and decide on targets.
- Communicate the targets to other people in the organization.
2) Organising work.
- Divide it into activities and jobs.
- Integrate the jobs into a formal organizational structure.
- Select and appoint people to do the jobs.
3) Motivating and communicating.
4) Measuring.
- Comparing performance against a target or benchmark.
- Analyze and assess performance.
- Communicate their findings to their superiors and subordinates.
5) Developing people.
- Managers need to develop their employees and also themselves.
- A manager ‘brings out what is in their employees or he suppresses them. He strengthens their integrity or he corrupts them.’
Peter Drucker (1909–2005)
Drucker suggested 3 aspects of a manager’s responsibilities in business:
1) Managing the business.
- Responsible for matters such as innovation & marketing.
- Drucker was the first one to argue for ‘putting the customer first.’
2) Managing managers.
- Managers need to be managed.
- Give them targets for achievement and monitor their performance.
3) Managing workers and their work.
- Set objectives for their team.
- Divide their work into manageable activities.
- Motivate staff and communicate with their team.
- Measure and review their performance.
- Train and develop their people.
Henry Mintzberg’s Managerial Roles [10]
1) Figurehead:
- Often perform a ceremonial role, representing the organisation at events and as their ‘public face’.
- Also represent in dealings with other organisations.
2) Liaison:
- Act as a link or bridge with other groups.
3) Leader:
- Deal with relations between individuals inside the organisation (hiring, firing, training, motivating, etc).
4) Monitor:
- Build and use ‘intelligence-gathering’ systems and monitor the information they receive.
5) Disseminator:
- Disseminate information, acting as a channel of information within the group and with others.
6) Spokesman:
- As spokesperson for the group, in ‘public relations’.
7) Initiator/Improver/Changer:
- Have an entrepreneurial role and take initiatives.
8) Disturbance handler:
- Have a role in resolving conflicts and disputes, and dealing with other unexpected problems.
9) Resource allocator:
- Decide how resources should be used (e.g., how the money should be spent).
10) Negotiator:
- They negotiate with others and reach decisions.
Contingency Theory
- The theory suggests that all organizations are different and face various situations (contingencies), thus requiring different management approaches for their respective tasks.
Factors a theorist may consider in choosing a management approach include:
- Size of the organisation
- People and workforce
- Relevant technological issues
- Operating environment and industry
Human Resource Planning (Workforce Planning)
There are four main stages in the planning process:
1. Studying the corporate objectives of the entity and strategic objectives of each division.
- Estimate the likely total size and organisation structure of the entity.
- Total HR numbers should be consistent with the corporate and divisional strategies.
2. Demand forecasting.
- The required numbers and skills of human resources should be estimated.
- Considerations include business disposals, product closures, introduction of new technology (e.g., new production equipment reducing the need for labor), business acquisitions, joint ventures, and strategic partnerships.
3. Assessing current resources.
- An assessment of current HR.
- Projections on the fate of these existing resources over the forecast period.
- Scheduled changes to the composition of existing HR (e.g., promotions, new qualifications).
- Consider normal loss of workforce, e.g., through retirement or “normal” labour turnover.
4. Preparing policies and plans.
- Close the Gap (i.e., Demand – Supply = Shortage/Surplus).
The plans should be realistic and consider environmental factors such as:
- Changes in population trends and the total size of the workforce in the country of operation.
- Changes in government policy, including alterations in the retirement age of workers.
- Availability of individuals trained in a particular skill or vocation.
- Changing patterns of employment, e.g., the rise of part-time workers.
- Competition for human resources from competitors.
- Trends in sub-contracting and outsourcing.
- Trends in IT and other technological changes that might affect labour requirements.
Advantages of HRM
- Decrease in Staff Turnover
- Increase in Productivity
- Increase in Group Learning
- Increase in Initiative
- Decrease in Absenteeism
- Lesser Conflicts
- Increase in Quality
- Increased Co-operation
- Increased Commitment
- Better Corporate Image
