MIDTERMS Flashcards
An ongoing process that seeks to achieve the objectives of an organization in the most efficient ways possible. — a continuous process
in obtaining the company’s goals.
MANAGEMENT
It has been also simply defined as
“controlling and organizing an organization
and leading”. — must always be present.
MANAGEMENT
→ Set of general rules that guide the
managers to manage an organization.
→ Explanation to assist the employees to
achieve the goal, these are also guiding
principles.
Management Theories
WHAT ARE THE MAJOR THEORIES OF MANAGEMENT?
WHO ARE THE THEORIST BEHIND THIS?
→ Frederick Taylor: Theory of Scientific
Management
→ Henri Fayol: Administrative Management
Theory
→ Max Weber: Bureaucratic Theory of
Management
→ Elton Mayo: Behavioral Theory of
Management (Hawthorne Effect)
→ Aimed at improving economic efficiency,
especially in labor productivity
→ Money motivates people to work.
→ Introduced the differential piece rate
system of paying wages to workers.
→ He believed a worker should get “a fair
day’s pay for a fair day’s work”— no more,
no less. If the worker couldn’t work to the
target, then the person shouldn’t be working
at all.
Theory of Scientific Management -
Frederick Taylor
He believed that management and
labor should cooperate and work together to
meet goals. He was the first to suggest that
the primary functions of managers should be
planning and training.
Frederick Taylor
WHAT ARE 4 PRINCIPLE OF SCIENTIFIC MANAGEMENT?
- TIME AND MOTION STUDY
- TEACH, TRAIN, AND DEVELOP
- INTEREST OF EMPLOYER AND EMPLOYEES SHOULD BE FULLY HARMONIZED
4.ESTABLISH FIAR LEVELS OF PERFORMANC AND PAY A PREMIUM FOR HIGH PERFORMANCE
considered to be the Father
of Modern Management due to his
contribution to the 14 principles.
Henri Fayol
When employees are specialized, the
output can increase because they become
increasingly skilled and efficient.
→ Work specialization
→ Increasement of skills and productivity
in dividing labor.
Division of Work
→ Managers must have the authority to give
orders, but they must also keep in mind that
with authority comes responsibility.
→ The one who gives the order is the one
responsible for the task.
- Authority
must be upheld in
organizations, but methods for doing so can
vary.
→ Applies to everyone that belongs in the
organization or company (i.e., tardiness,
absences, time in & time out of work)
Discipline
→ Employees should have only one direct
supervisor
Unity of Command
→ Teams with the same objective should be
working under the direction of one manager
using one plan, one goal, and one direction.
This will ensur
Unity of Direction
→ The interests of one employee should not
be allowed to become more important than
those of the group. This includes managers.
→ Individual interests should not be more
than general interests.
Subordination of Individual Interests
to the General Interests
→ Employee satisfaction depends on fair
remuneration for everyone. This includes
financial and non-financial compensation.
→ Fairness & compensation to those who are
deserving such as bonuses, discounts,
additional benefits & pay
Remuneration
→ This principle refers to how close
employees are to the decision-making
process. It is important to aim for an
appropriate balance.
→ The management should also include the
employees in the decision-making process.
Still, the management is the ones to have the
conclusion and solution. Must have an
appropriate balance between decentralization
and centralization
Centralization
Employees should be aware of where they
stand in the organization’s hierarchy or
chain of command.
Scalar Chain
Employees must know their worth and
their effect if there will come a time that
they’ll leave the company.
Scalar Chain
→ The workplace facilities must be clean,
tidy, and safe for employees. Everything
should have its place.
Order
→ Managers should be fair to staff at all
times, both maintaining discipline as
necessary and acting with kindness where
appropriate.
→ Fairness and equality.
Equity
→ Managers should strive to minimize
employee turnover. Personnel planning should
be a priority.
→ Management should be able to provide
security of the job to its employees.
Stability of Tenure of Personnel
→ Employees should be given the necessary
level of freedom to create and carry out
plans.
→ Necessary level to improve
Initiative
→ Organizations should strive to promote
team spirit and unity.
Esprit de Corps
→ Distinction between power & authority
→ Organizational resources were used for the
benefit of owners and managers rather than
to meet organizational goals.
→ Weber was convinced that organizations
based on rational authority, where authority
was given to the most competent and
qualified people, would be more efficient than
those based on who you knew.
Bureaucratic Theory of Management -
Max Weber
What year did Bureaucratic Theory of Management -
Max Weber happened?
(1864-1920)
What are the 5 Guiding Principles in BUREUCRATIC OF THEORY OF MANAGEMENT?
- HIERARCHICAL STRUCTURE
- MANAGEMENT BY RULES
3.ORGANIZATIONAL BY FUNCTIONAL SPECIALTY
4.PURPOSELY IMPERSONAL - EMPLOYEMENT BASED ON TECHNICAL QUALIFICATION
→ Each level controls the level below and is
controlled by the level above.
Hierarchical Structure
→ The highest in the level has the authority
and the lowest are the ones who are subject to
be controlled by the ones above.
Hierarchical Structure
→ Rules and regulations are documented to
ensure reliable and predictable behavior.
→ Managers must depend on formal
organizational rules in employee relations.
→ Rules are for uniformity. Employees must
already know by the general rules what to
expect.
→ Rules should be black & white. If it is not
written, it is not valid.
Management by Rules
Tasks are clearly defined and employees
become skilled by specializing in doing onething. There is a clear definition of authority
and responsibility.
Organization by Functional Specialty
→ You are limited to your tasks. You do not
do tasks that you cannot do. You do what is
your forte.
Organization by Functional Specialty
→ Rules are applied uniformly to everyone.
→ There is no preferential treatment or
favoritism.
→ Interpersonal relationships should not be
focused on. Applies objectivity and rational
decision-making.
Purposely Impersonal
→ Employee selection and promotion are
based on experience, competence, abilities,
skills, and technical qualification
demonstrated by examinations, education, or
training.
→ There is no nepotism.
Employment Based on Technical
Qualification
WHAT ARE THE CRITICISM OF BUREAUCRATIC ORGANIZATION?
1.NOT SUITABLE FOR BUSINESS ORGANIZATION.
2. CAN BE APPLIED TO GOVERNMENT.
3. TOO MUCH EMPHASIS TO TECHNICAL QUALIFICATION
4. DEDICATIONS AND COMMITMENT ARE NOT CONSIDERED
5. NO IMPORTANCE IS GIVEN FOR THOSE INFOMAL GROUPS
→ In contrast to scientific management, with
its focus on optimizing man as a machine,
behavioral management focuses on worker
behavior and motivations.
Behavioral Theory of Management -
Elton Mayo
What year is Behavioral Theory of Management?
Who is the Author?
Elton Mayo (1880-1840)
theory is concerned with how to manage
productivity by understanding worker
motivation, including expectations, needs
and interests, and group dynamics
Behavioral Theory of Management
is sometimes referred to as the human relations
movement due to its focus on the human
dimension of work.
Behavioral Theory of Management
marked a radical change
in motivational theory and management
practice.
HAWTHORNE’S EFFECT
→ These were designed to find ways to
increase worker productivity and motivation.
→ The studies concluded that tangible
motivators such as monetary incentives and
good working conditions are generally less
important in improving employee productivity
than intangible motivators such as meeting
individuals’ desire to belong to a group and
be included in decision-making and work.
THE HAWTHORNE EFFECT
showed that people’s work performance is dependent onsocial issues and job satisfaction.
The Hawthorne studies
prime mover of the quality management system
✔️ eliminate quota or standards
W Edwards Deming
The planning, organizing, leading, and
controlling of human and other
resources to achieve organizational
goals effectively and efficiently.
Management
The people responsible for supervising
the use of an organization’s resources
to meet its goals.
Managers
This are organizational assets
Resources
WHAT ARE THE EXAMPLES OF RESOURCES?
People
- Raw materials
- Skills
- Machinery
- Knowledge
- Information
- Financial Capital
A measure of how efficiently and
effectively managers are using
organizational resources to satisfy
customers and achieve goals.
Organizational Performance
measure of how well or productively
resources are used to achieve goals
- Make use of resources
- Organizations are efficient when
managers minimize the amount of
input resources or the amount of time
needed to produce a given output of
goods or services.
- To do the things right!
Efficiency
A measure of the appropriateness of
the goals an organization is pursuing
and the degree to which they are
achieved.
- A measure of the appropriateness of
the goals that managers have selected
for the organization to pursue and the
degree to which the organization
achieves those goals.
- Achieve goals
- To get the right things done!
Effectiveness
The manager chooses the right goals to
pursue but does a poor job of using
resources to achieve these goals.
- Result = A product that customers
want, but that is too expensive for them
to buy.
Low Efficiency, High Effectiveness
The manager chooses the wrong goals
to pursue and makes poor use of
resources.
- Result = A low-quality product that
customers do not want.
→ Low Efficiency, Low Effectiveness
The manager chooses the right goals to
pursue and makes good use of
resources to achieve those goals.
- Result = a product that customers want
at a quality and price they can afford.
High Efficiency, High Effectiveness
The manager chooses the right goals to
pursue and makes good use of
resources to achieve those goals.
- Result = a product that customers want
at a quality and price they can afford.
The manager chooses the right goals to
pursue and makes good use of
resources to achieve those goals.
- Result = a product that customers want
at a quality and price they can a
High Efficiency, High Effectiveness
The manager chooses inappropriate
goals but makes good use of resources
to pursue these goals.
- Result = A high-quality product that
customers do not want.
High Efficiency, Low Effectiveness
WHAT ARE THE 4 FUNCTIONS OF MANAGEMENT?
PLANNING
ORGANIZING
LEADING
CONTROLLING
Choose appropriate organizational
goals and courses of action to best
achieve those goals.
Planning
Involves grouping people into
departments according to the kinds of
job-specific tasks they perform.
Managers lay out lines of authority
and responsibility. Decide how best to
organize resources, particularly human
resources.
- Establish task and authority
relationships that allow people to work
together to achieve organizational
goals
Organizing
Involves using power, personality,
influence, persuasion, and
communication skills, It revolves around
encouraging all employees to
perform at a high level.
- The outcome is a highly motivated and
committed workforce
- Motivate, coordinate, and energize
individuals and groups to work together
to achieve organizational goals.
Leading
Establish accurate measuring and
monitoring systems to evaluate how
well the organization has achieved its
goals.
- The outcome is the ability to measure
performance accurately and regulate
organizational efficiency and
effectiveness. Managers must decide
which goals to measure.
Controlling
ENUMERATE THE PLANNING IN POLC FRAMEWORK
- Vision & Mission
- Strategizing
- Goals & Objectives
ENUMERATE ORGANIZING IN POLC FRAMEWORK
- Organization Design
- Culture
- Social Networks
ENUMERATE LEADING IN POL FRAMEWORK
- Leadership
- Decision Making
- Communication
- Groups/Teams
- Motivation
ENUMERATE THE CONTROLLING IN POLC FRAMEWORK
- Systems/Processes
- Strategic Human Resources
the function of management
that involves setting objectives and
determining a course of action for achieving
those objectives.
PLANNING
Requires that managers be aware
of environmental conditions facing their
organization and forecast future conditions. It
also requires that managers be good
decision-makers.
PLANNING
WHAT ARE THE PROCESS OF PLANNING?
→ Deciding which goals to pursue.
→ Deciding what course of action to adopt.
→ Deciding how to allocate resources.
WHAT ARE THE STEPS IN PLANNING?
→ Environmental Scanning - advantages
→ Establish objectives - goals
→ Identify alternative courses of action -
fall-back/backup plans
→ Identify the best course of action
→ Formulate necessary steps for
implementation
→ Evaluate the success of the plan
→ Take corrective action when necessary
WHAT ARE THE TYPES OF PLANNING?
- STRATEGIC PLANNING
- TACTICAL PLANNING
involves analyzing
competitive opportunities and threats, as well
as the strength and weaknesses of the organization, and then determining how toposition the organization to compete effectively in its environment.
→ has a long time frame,
often three years or more
Strategic planning
generally includes the
entire organization and includes the
formulation of objectives
Strategic planning
is often based on the
organization’s mission, which is its
fundamental reason for existence.
Strategic planning
An organization’s _____________ most
often conducts strategic planning.
top management
Defines the fundamental purpose of
an organization or an enterprise
- Succinctly describing why it exists and
what it does to achieve its vision.
Mission
Outlines what the organization wants
to be and how it wants the world in
which it operates to be (an “idealized”
view of the world)
- It is a long-term view and concentrates
on what is about to happen in the
future.
- It can be emotive and a source of
inspiration
Vision
Beliefs that are shared among the
stakeholders of an organization.
- Values drive an organization’s culture
and priorities.
- Provide a framework in which decisions
are made.
Values
Narrowly defined, means “the art of the
general”
- A combination of the goals (ends) for
which the organization is striving and
the means (policies) by which it is
seeking to get there.
Strategies
Is a roadmap that will take
you to the goals you set; the path is
chosen to plow towards the end mission.
Strategies
evaluate the current situation and how it
came about.
Situation-Target-Proposal-Situation
define goals and/or objectives
(sometimes called ideal state)
Target
map a possible route
to the goals/objectives
Path / Proposal
what is the ideal image or the desired end state?
Draw-See-Think-Plan-Draw
what is today’s situation? What is
the gap from ideal and why?
See
what specific actions must be
taken to close the gap between today’s
situation and the ideal state?
Think
what resources are required to
execute the activities?
Plan
WHAT DOES SWOT MEANS?
(Strengths, Weaknesses,
Opportunities, and Threats)
The main objective of this tool is to
analyze internal strategic factors,
strengths and weaknesses attributed to
the organization, and external factors
beyond the control of the organization,
such as opportunities and threats.
SWOT Analysis (Strengths, Weaknesses,
Opportunities, and Threats)
is intermediate-range
(one to three years) planning that is
designed to develop relatively concrete and
specific means to implement the strategic
plan
Tactical Planning
HOW LONG DOES TACTICAL PLANNING TAKES?
2-3 YEARS
______________ often engage in tactical planning.
Middle-level managers