Monday, January 18, 2010

BEHAVIOR THEORY

The classical theories viewed the organizations from a mechanistic point of view.They placed emphasis on the design and performance of work an the process of the management.They had perform ace of work and the process of the management.They had either ignored or over-simplified the human factor. In contrast Behavioral theory(Behavior approach) evolved in recognition of the importance of human behavior in organization.The behavioral theory developed partly because managers found that following the ideas of classical theory did not achieve total efficiency and work place harmony.Its primary emphasis was on improving management through understanding the psychological makeup of people.If managers understand their people and adapt their organizations to them,organizational success will usually follow.
The behavior theory (approach) to management has two branches.The first branch is Human relations and second branch is Behavioral science theory.

Sunday, January 10, 2010

THE CLASSICAL THEORY

The Industrial Revolution led to the emergence of industrialization in Western Countries.Big factories were established in Europe and the USA with great potential for mass production of goods.However. very little was understood about these factories and their functioning.There was very little idea about how such organizations should be managed.Hence, the need for knowledge about the management of such organizations soon became apparent.The early approaches to the study of management,thus,concerned themselves with the production systems.These early theorists and practitioners explained the essential nature of management and its relationship to the production processes.

The early theorists are also called "traditionalists".They believed that managers should con centre their attention and energies on increasing the efficiency of the production process.The Classical management theory represents two views toward the management of the work and of organization:
a.Scientific Management
b.Administrative Management
Scientific management concentrated on the problems of shop-floor management and efficiency of production.The administrative management theory,on the other hand, focused on the problem of top management faced in managing the entire organization.

EVOLUTION OF MANAGEMENT THOUGHT

MANAGEMENT THOUGHTS-Management as a systematical body of knowledge and distinct discipline is the product of the twentieth century.However, the history of management practice is as old as human civilization, when the men started living in groups.For every human group requires management.
The real development of management thought has begun with the scientific management approach by F.w. Taylor. Thought some of the concepts have been developed by thinkers earlier to Taylor.Early management thoughts have come from Roman Catholic Church,military organizations, the Camera lists, a group of German and Austrian public administrators and intellectuals during sixteenth to eighteenth centuries.Their concepts of management were mostly related to specialization, selection of subordinates and their training, simplification of administrative procedures,unity or doctrine etc.

In the later period,Charles Babbage, James Watt and Robert Owen made contributions.Their contributions were limited mostly to the field of developing the concept to make resources more effective at the shop-floor level.These contributions were made bit by bit and in haphazard manner that could not stimulate management as a distinct discipline for further study.However,the various ideas stated by them have created awareness about managerial problems.By the end of the nineteenth century, a stage was set for the systematic of management F.w. Taylor made a beginning in this direction in the early part of the 20Th century.During five decades there has been enormous development of management thought.

Koontz was the first academician to classify the various approaches into the schools of management theory.The evolution of management thoughts can be classified into "six (Schools of Management Theories"

1.The Classical Theory
2.Behavioral Theory
3.The Decision Theory
4.The Management Science Theory
5.The Systems Theory, and
6.The Contingency Theory.

Saturday, January 9, 2010

EMERGING CHALLENGES FOR MANAGEMENT

GLOBALIZATION OF BUSINESS-The world economy is becoming increasingly global in character.The magnitude of this globalization is very high.Today,managers operate in a boundless world.Therefore,they must learn how to operate in a border less and global economy.They need to understand the process of globalization and the competition it creates for them.

QUALITY ASSURANCE AND PRODUCTIVITY-Another competitive challenge that has attracted much attention is quality and productivity.Quality is an important issue for several reasons.First ,more and more organizations are using quality is an important issue for several reasons.First,more and more organizations are using quality as a basis for competing .Second, improving quality tends to increase productivity.Third,enhancing quality lowers costs.Thus, the managers' attention must be focused in the assurance of quality of the products or services.

ETHICS AND SOCIAL RESPONSIBILITY-Another managerial challenge that has importance is concerned with ethics and social responsibility.There is increasing concern about the role and state of ethics in business because of the belief that business ethics have declined in recent years .Managers are concerned because of the complexity of ethics have declined in recent years.Managers are concerned because of the complexity of ethics in decision making.The cost of unethical actions can be substantial for the organization and society .Today, in most societies codes of ethics have been prescribed for businesses.Violation of these codes by a business would result in penalties and social condemnation.

INNOVATION AND CHANGE-Organizations must pay attention to innovation and change .Otherwise,they will go out of business.Product life span has been shortening everyday.Products need improvement,up gradation, and modification will go to those organizations that continually improve their product quality.They have to beat their competitors in the marketplace with a constant flow of innovative products and services .An organization's employees are the vital forces for innovation and change.If they block innovation and change,The organization will become a candidate for extinction.The challenge for managers is to stimulate employees creativity for innovation and change.

WORKFORCE DIVERSITY-Workforce diversity is the organizational reality today.Work force diversity means that organizations are becoming more heterogeneous in terms of gender,race,ethnicity, and other backgrounds.The participation of women and minorities in the workforce has been increasing.It will continue to increase in the coming years.The workforce is increasingly better educated.The mangers should realize that employees come to work with their cultural values and lifestyle preferences.

MANAGERIAL ROLES

INTERPERSONAL ROLES-Managers assume interpersonal roles in order to coordinates and interact with organizational members.Through this role,managers provide direction and supervision to employees..In interpersonal roles,managers develop contacts and build relationships with people inside and outside the organization.They communicate with peers,superiors,subordinates,suppliers,customers, and bankers, both formally and informally .Interpersonal roles are characterized by three activities:figurehead,leader,and liaison.

INFORMATIONAL ROLE:Informational role are directly related with tasks necessary to obtain and transmit information.Managers perform informational roles in various ways.They handle a great deal of information in connection with their work.The sources of such information are different.The role of the manager is to develop a network of contacts and relations within and outside the organization for collection,processing, and dissemination of such information.Informational roles are characterized by three activities:monitor, disseminator, and spokesperson.

DECISIONAL ROLE-Decision making is the vital function of every manager.Decision-making involves negotiations and compromises with competing or conflicting interests.Managers develop strategies to deal with such negotiations and uncertainties, and put them into action to attain goals.Hence,decisions roles are closely associated with the methods managers use to plan strategy and utilize resources.Delusional roles of a manager are conceived as:entrepreneurship,disturbance handler,resource allocator,and negotiator.

Friday, January 8, 2010

CLASSIFICATION OF MANAGERS BY THIER LEVELS

TOP MANAGEMENT-Top management is also as executive management .A limited number of top executives lead the entire organization.They are responsible for its overall management.The main job of these top executives is to establish mission and goals , as well as the general operating policies of the organization.Their focus is on long-term issues .They emphasize the growth,survival, and overall effectiveness of the organization.Not only these,they have also to make sure that these goals and policies are translated into action and results are achieved.Top managers are concerned not only with the organization,but also with the interaction between n the organization and its internal environment .The most common job titles of top management are :chairman,president,vice-president,executive director,chief executive officer,general manager,deputy general manager,managing director.Top management takes responsibility for the organization's success or failure.

MIDDLE MANAGEMENT-The middle management has between the top and the front-line management.It also called tactical management.It is largely responsible for implementing strategic plans.The middle mangers translate the general.long -range goals set down by the top management into concrete,specific goals for their divisions and departments .These mangers plan,organize,lead,coordinate, and control the activities of the first-line mangers working under them.The job titles of middle management are :marketing manager,personnel manager,finance manager,labour relations manager,etc.

FIRST MANAGEMENT-The first -line management is also known as operating management,front line management,or supervisory-level management.It is largely responsible for carrying out the day-to-day activities within the various units or work groups to ensure that the short-term goals are met.The managers are this level supervise,guide,lead ,the staff member to get the work done.They are also the connecting link between the operatives and the higher management.The common Job titles of the first-line managers are officers,supervisors,foremen,unit heads,etc.

MANAGEMENT BY TYPE

A further classification of managers is also done by their type.Generally,there are two types of managers;line and staff.

Line Managers-Managers who are directly in the chain of command are called kine managers.They have the responsibility for the principal activities of the organization.Line managers deal directly with the organization's primary goods and services.They make things,sell things,or provide consumer service.Production and marketing managers are examples of line managers.These managers are responsible for the achievement of the organization's goals.Line managers have power and authority to the organization.They have ultimate responsibility for making operating decisions.They are also accountable for the "bottom line" results of their decisions.

STAFF MANAGERS-The need for specialized or technical information increases as organization.These manager are called staff managers.These managers are those who provide advice and expertise in their specialized area of knowledge.They assist and support the line managers in undertaking their function.Staff managers are however outside the formal chain of command.Their staff authority is restricted to their immediate assistants.The managers working in personnel,purchasing,legal,research and development,finance, and public relations functions are staff managers.

Thursday, January 7, 2010

SKILLS NEEDED BY THREE LEVELS OF MANAGEMENT

1.TECHNICAL SKILLS-The first basic skill, which the managers,need to have ,is the technical skill.Technical skill is the job-specific knowledge and techniques that are required to perform an organizational role.The first-line supervisors need the technical skills the most because they have to see that goods and services are produced and delivered.These mangers,therefore, must have the ability to use the tools,techniques, and procedures of their specialized area.For example, an accountant has to have expertise in accounting .A production manager must have the sills of techniques of operations managements .These skills are the mechanics of the job.

2.HUMAN SKILLS-Human skills involves the ability to understand,alter,lead,communicate,coordinate and control the behaviour of other individuals and groups.Dealing with people is a compels job.A manager,therefore,needs knowledge and skills infields such as communication,motivation,conflict management,group dynamics, etc.A manager must be able to communicate both his own ideas and those of top management clearly to peers and subordinates.Sensitivity are important human skills.A manager with these behavioural skills can successfully lead and manage the teams and groups, and coordinate their activities effectiveness.

3.CONCEPTUAL SKILL-Conceptual skills involves the ability of the manager to visualize the organization in its totally and its environment.The variables-external as well as internal -their interplay and interaction affecting an organization need to be properly identified analyzed,diagnosed,anticipated, and managed.Manager need to distinguish between cause and effect.The different parts of an organization also need to be understand and integrated to function as an effective whole.Managers also need to look for opportunities in the environment and develop strategic plan to capitalize these opportunities.Thus,planning and organizing functions require a high level of conceptual skill.

MANAGERIAL HIERARCHY AND TASK

Hierarchy in an organization is necessary and inevitable.The rationale of the hierarchy must however,be rooted in the requirements of the task.Each level of hierarchy in an organization must have a distinct level of responsibility.If the rationale for a certain level in the management hierarchy is not clear,and its responsibility is not distinct, the managers on these jobs may individually fail to give the expected results.In a situation of this kind,the persons concerned are likely to find faults with each other and pass on responsibility to another.

When superiors and subordinates are required to more or less the same work,the hierarchy would not be accepted.In practical terms,each level of the hierarchy must perform distinct tasks.The tasks at each hierarchy must be diff rent from what is being done at the level below.If the levels are not distinct, the probability exists that some of the levels are not required.The levels of hierarchy must be reviewed to determined how clearly one of different from the others.In the event a clearly defined area of responsibility does not exists between two levels.It is likely that only level is needed. Each level must be given clear responsibility and authority to carry out the assigned tasks because vagueness would be an obstacle for the managers to achieving the results expected of them.

Wednesday, January 6, 2010

MANAGEMENT FUNCTIONS AND STAGES OF CORPORATE GROWTH

The functions of management do not remain the same for all the types of organizations,They change in focus,emphasis, and importance with the size of the organizations.As the organization grows in size,management functions also become too complex.we can identify four different stages of corporate growth by following ways:

STAGE I-It represents the case of smaller business unit with one-person operation.There is neither Superior not subordinate in this situation.Hence,there is no body to assist the owner-manager in his or her work.

STAGE II-The owner-manager becomes a player-coach.This situation implies extensive participation of subordinates in the operation of the business.The owner-manager,in this case,has to allocate roles to different individuals,and coordinate their function,in addition to his or her own work.Thus, he or she has to perform all the managerial work bu himself or herself.

STAGE III-An additional level of supervision is added.Once this happens, some of the difficulties may arise.The owner-manager looses direst contact with his or her bottom- the staff.He or she has to work through an intermediate level of management.

STAGE IV-It is the stage of formal organization.This involves increase size and multi-layers organization.The plans,policies,budgets,personnel practices,organizational charts control systems,etc. have to be formulated.

FUNCTION OF MANAGEMENT

The broad functions of management are : planning,implementation(organizing and directing), and evaluation (control,assessment and feedback).These threes functions of management can be related with the governance sub-systems of an organizations,planning function is related to the legislative sub system, the implementation function is related to the executive sub-system, and the evaluation function is related to the Judical sub-system.These functions of management are follows:

1.PLANNING:Planning is the important function of management .It is the process of determining mission, goals and targets, and the activities necessary to achieve them.Planning formulates the organization's future course of actions.Organizational plans contain the schedule of activities and show the allocation of resources for reaching goals and objectives .The basic purpose of planning is thus,to make the best possible use of organization's resources to attain the goals .There are basically two levels of planning strategic,dealing with the environment,and internal; dealing with activities with in the organization.All managers ate every level do their own planning.The outcome of planning is strategy.The actions or decisions that managers take to achieve goals are strategies.

2. IMPLEMENTATIONS:This function has two major parts.The first is organizing .Organizing involves execution of activities,allocation of resources, and processing information.It also involve the allocation .These divided function,which are similar,are then grouped together to form different units or departments.Organization structure ,staffing,division of work ,assignments of responsibility,work rules,commitment and coordination are integral parts of organizing function.
The second part of implementation is leading .A manager must be able to make employees want to participate actively in achieving an organization's goals.The leading function involves several activities,such as order giving,supervising,directing,motivating and communicating.Leading function is also responsible for an organizational climate that is conductive to superior performances.The outcome of leadership is high level of motivation and commitment among staff members.

3.EVALUATION:Evaluation is simply defined as finding the value of something.It means to assess,estimate and to appraise the achievements.The general methods of evaluation are,measurement, comparison ,judgement and feedback.Thus,control and management audit systems are crucial at this phase.
Controlling involves the evaluation of operating results as compared to the established standards.These evaluation are followed by prompt remedial actions when deviates from standards .Control is required in the areas of sales,costs,profits,output,quality,accidents,labour relations,employees morale, among others.The cornerstone of financial control is the budget,in which accurately set costs and performances standards are incorporated.The outcome of the control process is the ability to measure performances accurately and regulate organizational efficiency and effectiveness.The controlling function also allows managers to evaluate how well they themselves are performing the planning.

Tuesday, January 5, 2010

PROCESS OF MANAGEMENT

1.LEGISLATIVE SUB-SYSTEM-The legislative sub system consists of formulating goals,polices,common rules,procedure,plan,routines, and budget to given the world relationships in an organizations.This sub-system thus sets the limits (codes of conduct and discipline ) for what the executive sub-system can or cannot do.

2.EXECUTIVE SUB SYSTEM-This sub system con sists of allocating role between managers and operatives and defining the boundary of task performances of each individual.This is a phase of implementing the plans,programmes,political and polices as approved by the legislative sub system.

3.JUDI CAL SUB-SYSTEM-The sub system ensures that the executive sun-systems does indeed function as conceived by the legislative sub-system and also provides the mechanisms to deal with deviations.It identifies the deviations and provide the mechanisms to deal with deviations.It identifies the deviations and provide feed back to the legislative and executive sub-systems of the organization.

PRICIPLES OF MANAGEMENT

1.MANAGEMENT BY OBJECTIVES-An objectives is an end to be achieved.The objectives of a management system an of its sub-systems must be clearly identified ,defined,and understood.Merely saying where one intends to go does not tale one there;not is saying that one intends to produce some results enough to make it happens.Any confusion or lack of clarity in objectives for specifying objectives clearly is that it enables one to decide how to achieve them.

2.DIVISION OF WORK-Management is an assembly of groups and teams.The work is divided or distributed among the groups and also among members of the group.When there is specialization and division of labour,each member exercise his or her own skills towards achieving the objectives .Management should assign the right(balanced ) proportions and kind of work to groups and employees.It should attempt to bring about a balance among the different groups and employees.

3.SUBSTITUTION OF RESOURCES-Often ,when the resource that are normally used to provide services become scarce or too expensive ,different resources of a different resources or a different balance of the resources may be used to produce the intended results.One particular type of substitution of resource ois labour substitution.

4.SPAN OF CONTROL-For effective supervision and leadership ,the number of subordinates under the immediate supervision of one manager should be limited to manager able number.The span of control,which is also called span of management,can,however be determined depending upon the capacity and skill of the supervisor.

5.DELEGATION OF AUTHORITY-Authority is the right to command or right to act.it indicates the power enjoyed a person to make decision.Individuals in the organizations must be delegated authority commensurate with their assigned responsibilities.Delegating is the one of the aspects of management to facility getting done through others.It takes place when homebody's authority is lent to another.

CHARACTERSTICS OF MANAGEMENT

1.ACHIEVING THE OBJECTIVES-An organization comes into existence to attain certain objectives.Management deals with the achievement of these objectives.A manager's success is measured bu the extent to which these objectives are achieved.Hence,goal setting and goal attainment are the strategic parts of manager;s job.

2.WORKING WITH OTHERS-Organizational goals are achieved with the joint effect of people.Therefore, the managerial challenge lies in work in with people and managing group efforts.Management can provide effectiveness to human efforts only when team or group activities are managed properly.The emphasis or team work is very important.It involves a working environment in which team members interact each other.

3.ATTAINING EFFICIENCY AND EFFECTIVENESS-Efficiency is the managerial ability to minimize or optimize the use of organizational resources in attain the objectives.Organizations are efficient when managers minimize the amount of input resources an the time to produce a given of goods or services Cost-benefits ratios measure such effacing of management.

4.ADOPTING SITUATIONAL APPROACH-Reg most effective and appropriate way of managing an organization depends upon the particular circumstance of each case .The implications here is that each case will be differ net.Therefore the solution to look for will As different organizations generally have systems and rakes for structures,leadership styles,planning functions,and other management practises.

5.COPING WITH THE ENVIRONMENT-The effectiveness of management also lies in its ability to cope with the changing environment.Thier are several internal an external forces influencing organizations.external environment is the most powerful influence on organizations.The changes taking place in the socio -cultural ,legal ,political ,technological , and economic environment affect organizations in various ways.

DEFINITION OF MANAGEMENT

Managerial skills and competencies are keys to organizational success.Managers play a significant role in facilitating organizational effectiveness.Thus,organizations need managers who have both the insight to see and understand the nature of organizations need managers who have both the insight to see understand the nature of organizational problems , and skills and ability to develop strategies for their survival and growth in the present competitive world.Through their work,managers not only make their organizations more defective and compete,but also contribute to nation's economic development and prosperity.The Job of managers is,undoubtedly,very challenging.

Management principles can be applied at all organizations and at all level of an organization.It is a common mistakes to regard management as a function to be carried only in business,commercial,or profit making enterprises.For the nation to prosper,good management is necessary in all organizations operating in the society.Managing well makes work easier;or improves relations with fellow workers; it improves the services the organizations provides to others; and it makes life and work more rewarding .managing well leads to harmonious work;it lessens the irrational and frustrations that arise from confusion and bad organization.managing well improves the quality of work and makes working life more pleasant and meaningful.Good management is to an organization what health to the body; the smooth efficient functioning of all its parts.
Management has existed ever man has been organized into communities.It is sometimes thought to be an innovation of the twentieth century.But this is not so whenever and where ever people worked together in groups-to grow crops and cattle's to buy sell to fight wars , to build temples,etc there was management.