Introduction to Management and Organizational System Flashcards
The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, andcontrolling organizational resources.
Management
The definition of Management holds two different important ideas. What are those two important ideas?
- The four functions of planning, organizing, leading, and controlling
- The attainment of organizational goals in an effective and efficient manner
What are the four Functions of Management?
Planning
Organizing
Leading
Controlling
Means identifying goals for future organizational performance and deciding on the tasks and use of resources needed to attain them.
Planning
Defines where the organization wants to be in the future and how to get there.
Planning
Involves assigning tasks, grouping tasks into departments, delegating authority, and allocating resources across the organization.
Organizing
The use of influence to motivate employees to achieve organizational goals.
Leading
Creating a shared culture and values, communicating goals to employees throughout the organization, and infusing employees with the desire to perform at a high level.
Leading
Means monitoring employees’ activities, determining whether the organization is on target toward its goals, and making corrections as necessary.
Controlling
Who and When:
System Theory
Ludwig von Bertalanffy
1901-1972
Encourages you to realize that your business is a system and is governed by the same laws and behaviors that affect every other biological organization.
System Theory
The tendency for a system to run down and die (a thing to be avoided in business).
Entropy
Concepts under the System Theory:
Entropy
Synergy
Subsystem
Working together, the parts can produce something greater than those same parts could produce on their own.
Synergy
The whole (your business) is built on subsystems, which themselves are built on yet more subsystems.
Subsystem
Who and When:
Principles of Administrative Management
Miner and Engineer Henri Fayol
1841-1925
A topdown approach to examining a business.
Principles of Administrative Management
He put himself in his manager’s shoes and imagined what situations they might encounter when dealing with their team.
Principles of Administrative Management
Who and When:
Bureaucratic Management
Max Webber
1864-1920
Sociological approach; revolve around the importance of structuring your business in a hierarchical manner with clear rules and roles.
Bureaucratic Management
Who and When:
Scientific Management
Frederick Taylor
1856-1915
Promotes standardization, specialization, assignment based on ability, and extensive training and supervision. Only through those practices can a business achieve efficiency and productivity.
Scientific Management
This management theory attempts to find the optimal way to complete a given task, often at the expense of the employees’ humanity.
Scientific Management
Who and When:
Theory X and Y
Douglas McGregor
1906-1964
Posits that employees are apathetic or dislike
their work.
Theory X
Posits that employees are self-motivated, responsible, and want to take ownership of their work.
Theory Y
People under this principle are authoritarian and will micromanage everything because they don’t trust their employees.
Theory X
People under this principle include their employees in the decision-making process and encourage creativity at all levels.
Theory Y
Who and When:
Human Relations Theory
Elton Mayo
1880-1949
States that employees are more motivated by social factors — like personal attention or being part of a group — than environmental factors, such as money and working conditions.
Human Relations Theory
A principle that is predicated on the idea that employees only have physical needs; focus solely on the economics of organizing workers.
Classical Management
Who and When:
Contingency Management
Fred Fiedler
1950 and 1960
Effective leadership was directly related to the traits the leader displayed in any given situation.
Contingency Management
Suggests that there is no one management approach that suits every situation and every organization.
Contingency Management
Embraces the idea that people are complex. Their needs vary over time, and they possess a range of talents and skills that the business can develop through on-the-job training and other programs.
Modern Management
Response to managerial efficiency, together experts from scientific disciplines to address staffing, materials, logistics, and systems issues.
Quantitative Management
Three branches of Quantitative Management:
- Management Sciences
- Operations Management
- Management Information System
A system that is built on a succession of subsystems. In order for the business to run smoothly and efficiently, each subsystem must also work smoothly and efficiently within itself, but also with the other subsystems around it.
Organizations as Learning System
Manager’s Roles and Attributes:
⚬ Coordinate resources in an effective and efficient manner to accomplish the organization’s goals.
⚬ Providing a product or service that customers value.
⚬ To achieve high performance, which is the attainment of organizational goals by using resources in an efficient and effective manner.
The cognitive ability to see the organization as a whole system and the relationships among its parts.
Conceptual Skills
Involves the manager’s thinking, information processing, and planning abilities.
Conceptual Skills
Involves knowing where one’s department fits into the total organization and how the organization fits into the industry, the community, and the broader business and social environment.
Conceptual Skills
The manager’s ability to work with and through other people and to work effectively as a group member.
Human Skills
Demonstrated in the way a manager relates to other people, including the ability to motivate, facilitate, coordinate, lead, communicate, and resolve conflicts.
Human Skills
Allows subordinates to express themselves without fear of ridicule, encourages participation, and shows appreciation for employees’ efforts.
Human Skills
The understanding of and proficiency in the performance of specific tasks.
Technical Skills
Includes mastery of the methods, techniques, and equipment involved in specific functions such as engineering, manufacturing, or finance.
Technical Skills
Includes specialized knowledge, analytical ability, and the competent use of tools and techniques to solve problems in that specific discipline.
Technical Skills
At the top of the hierarchy and are responsible or the entire organization.
Top Managers
Responsible for setting organizational goals, defining strategies for achieving them, monitoring and interpreting the external environment, and making decisions that affect the entire organization.
Top Managers
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.
Top Managers
Middle levels of the organization and are responsible for business units and major departments.
Middle Managers
They are responsible for implementing the overall strategies and policies defined by top managers.
Middle Managers
Generally, are concerned with the near future rather than with long-range planning.
Middle Managers
Responsible for a temporary work project that involves the participation of people from various functions and levels of the organization, and perhaps from outside the company as well.
Project Managers
Responsible for departments that perform a single functional task and have employees with similar training and skills.
Functional Manager
Directly responsible for the production of goods and services.
First Line Managers
They are responsible for groups of non-management employees.
First Line Managers
Their primary concern is the application of rules and procedures to achieve efficient production, provide technical assistance, and motivate subordinates.
First Line Managers
Responsible for several departments that perform different functions.
General Managers
Responsible for a self-contained division, and for all the functional departments within it.
General Managers
A management tool whereby managers and employees work together to set and track objectives for a specific time period.
Management by Objectives (MBO Program)
Objectives and plans cascade down the organization until every individual has specific objectives for the period.
Management by Objectives (MBO Program)
Establish long-range company goals in such areas as sales, competitive positioning, human resource development.
Implementation of MBO Program
Use these long-range plans to determine company-wide goals for the current year. Then the company goals can be broken down further into goals for different departments, and eventually into goals for individual employees.
Implementation of MBO Program
It requires each employee to produce five to ten specific, measurable goals. In addition to a statement of the goal itself, each goal should be supported with a means of measurement and a series of steps toward completion. These goals should be proposed to the employee’s manager in writing, discussed, and approved.
Implementation of MBO Program
Provide for a regular review of employee progress toward meeting goals. This review can take place either monthly or quarterly.
Implementation of MBO Program
Implementation of MBO Program:
⚬ Establish long-range company goals in such areas as sales, competitive positioning, human resource development.
⚬ Use these long-range plans to determine company-wide goals for the current year. Then the company goals can be broken down further into goals for different departments, and eventually into goals for individual employees.
⚬ It requires each employee to produce five to ten specific, measurable goals. In addition to a statement of the goal itself, each goal should be supported with a means of measurement and a series of steps toward completion. These goals should be proposed to the employee’s manager in writing, discussed, and approved.
⚬ Provide for a regular review of employee progress toward meeting goals. This review can take place either monthly or quarterly.
Discuss the Management by Objective Process:
Circular Diagram: Review Organizational Objectives, Set Employee Objectives, Monitor, Evaluate, Reward
Advantages of MBO:
- Continually driving the organization to move towards its strategic goals.
- Everyone within the organization knows what they have to achieve during the period.
- It helps employees understand how their targets contribute to organizational targets.
- Employees who understand how and what they do contributes to the organization can be more motivated.
- The model secures the commitment of employees to attaining the organizational goals.
- As each employee understands how they uniquely contribute to the organization, employees feel crucial to proceedings, leading to increased loyalty.
- Employees tend to have more commitment to goals that they themselves helped set.
Continually driving the organization to move towards its strategic goals.
Advantages of MBO
Everyone within the organization knows what they have to achieve during the period.
Advantages of MBO
It helps employees understand how their targets contribute to organizational targets.
Advantages of MBO
Employees who understand how what they do contributes to the organization can be more motivated.
Advantages of MBO
The model secures the commitment of employees to attaining the organizational goals.
Advantages of MBO
As each employee understands how they uniquely contribute to the organization, employees feel crucial to proceedings, leading to increased loyalty.
Advantages of MBO
Employees tend to have more commitment to goals that they themselves helped set.
Advantages of MBO
Disadvantages of MBO:
- Developing targets can be time-consuming, leaving both managers and employees with less time to carry out their duties.
- If not implemented with care, it can lead to poor teamwork between employees. This happens as each employee is only concerned with their targets, and not good teamwork
- It can result in unnecessary office politics as employees fight to outshine each other.
- It underemphasizes context. For example, it does not take the extent of senior management buy-in into consideration. It does not take into account the ability of lower-level teams to hit the objectives set.
- Provide for a regular review of employee progress toward meeting goals. This review can take place either monthly or quarterly.
Developing targets can be time-consuming, leaving both managers and employees with less time to carry out their duties.
Disadvantages of MBO
If not implemented with care, it can lead to poor teamwork between employees. This happens as each employee is only concerned with their targets, and not good teamwork.
Disadvantages of MBO
It can result in unnecessary office politics as employees fight to outshine each other.
Disadvantages of MBO
It underemphasizes context. For example, it does not take the extent of senior management buy-in into consideration. It does not take into account the ability of lower-level teams to hit the objectives set.
Disadvantages of MBO
Provide for a regular review of employee progress toward meeting goals. This review can take place either monthly or quarterly.
Disadvantages of MBO
