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Mgmt proc

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Mgmt proc

  1. 1. Management processes Nature of Management Process Management process can be treated as dynamic in which events and interrelationships must be seen as dynamic, flexible and continuous, and must be considered as a whole. Thus, management as a process involves a number of activities and assumes that the totality of what managers do can be divided into a set of interrelated activities. What is a Manager? Someone whose primary responsibility is to carry out the management process. Someone who plans and makes decisions, organizes, leads, and controls human, financial, physical, and information resources. Kinds of Managers by Level and Area Kinds of Managers by Level Top Managers The relatively small group of executives who manage the organization’s overall goals, strategy, and operating policies. Middle Managers Largest group of managers in organizations Implement top management’s policies and plans. Supervise and coordinate lower-level managers’ activities. First-Line Managers Managers who supervise and coordinate the activities of operating employees. Kinds of Managers by Area Marketing Managers Work in areas related to getting consumers and clients to buy the organization’s products or services. Financial Managers Deal primarily with an organization’s financial resources. Operations Managers Concerned with creating and managing the systems that create organization’s products and services. Kinds of Managers by Area (cont’d) Human Resource Managers Involved in human resource processes Planning, recruiting and selection, training and development, designing compensation and benefit systems, formulating performance appraisal systems. Administrative Managers Serve as generalists in functional areas and are not associated with any particular management specialty. Other Kinds of Managers Assigned as specialists in positions directly related to the needs of the organization. Management in Organizations Figure 1.2 The Management Process Skills and the Manager
  2. 2. Fundamental Management Skills Technical Skills necessary to accomplish or understand the specific kind of work being done in an organization. Interpersonal The ability to communicate with, understand, and motivate both individuals and groups. Conceptual The manager’s ability to think in the abstract. Diagnostic The manager’s ability to visualize the most appropriate response to a situation. Fundamental Management Skills (cont’d) Communication The manager’s abilities both to convey ideas and information effectively to others and to receive ideas and information effectively from others. Decision-Making The manager’s ability to recognize and define problems and opportunities correctly and then to select an appropriate course of action to solve the problems and capitalize on opportunities. Time-Management The manager’s ability to prioritize work, to work efficiently, and to delegate appropriately. Management: Science or Art? The Science of Management Assumes that problems can be approached using rational, logical, objective, and systematic ways. Requires technical, diagnostic, and decision-making skills and techniques to solve problems. The Art of Management Decisions are made and problems solved using a blend of intuition, experience, instinct, and personal insights. Requires conceptual, communication, interpersonal, and time-management skills to accomplish the tasks associated with managerial activities. Sources of Management Skills Management Roles Interpersonal roles Informational roles Decisional roles Evolution of Management Thought Scientific Management: 1900-1930 Administrative Management: 1916-1940 Human Relations Approach: 1930-1950 Social Systems Approach : 1940-1950 Decision Theory Approach: 1945-1965 Management Science Approach: 1950-1960 Human Behavior Approach: 1950-1970 Systems Approach: 1960’s
  3. 3. Contingency Approach: 1970’s Scientific Management-Frederick Taylor Features of Scientific Management: Separation of Planning and Doing Functional Foremanship Job Analysis Standardization Scientific Selection and Training of workers Financial Incentives Economy Mental Revolution Administrative Management-Henri Fayol Principles 1.Division of work-- Dividing the work into small convenient components and giving each component to one employee. It encourages employees for continuous improvement in skills and the development of improvements in methods. 2. Authority and Responsibility-- The right to give orders and the power to exact obedience with responsibility. 3. Discipline-- Self imposed and command discipline. No bending of rules. 4. Unity of command-- Each employee has one and only one boss. 5. Unity of direction-- A single mind generates a single plan and all play their part in that plan. 6. Subordination of individual interests-- When at work, only work things should be pursued or thought about. There should be constant vigilance and supervision. 7. Remuneration-- Employees receive fair payment for services, not what the company can get away with. Administrative Management-Henri Fayol contd… 8. Centralization-- Consolidation of management functions. Decisions are made from the top. 9. Scalar chain (line of authority)-- Formal chain of command running from top to bottom of the organization, like military 10. Order-- All materials and personnel have a prescribed place, and they must remain there. 11. Equity-- Equality of treatment . Justice and kindness. 12. Personnel tenure-- Limited turnover of personnel. Lifetime employment for good workers. 13. Initiative-- Thinking out a plan and do what it takes to make it happen. 14. Esprit de corps– Union is strength. Harmony, cohesion among personnel. Manager should encourage espirit de corps among workers. Bureaucracy- Weber
  4. 4. Features of Bureaucracy: Administrative Class- Bureaucratic organizations generally have administrative class responsible for maintaining coordinative activities of the members. Hierarchy-There are hierarchy of positions in the organization. Division of Work- Work of the organization is divided on the basis of specialization to take the advantages of division of labour. Official Rules- Administrative process is continuous and governed by official rules. Impersonal Relationships- Decisions are governed by rational factors rather than personal involvement, emotions and sentiments. Official Records- Organization is characterized by maintenance of proper official records. Human Relations Approach- George Elton Mayo The study continued for an extended period of time and had gone through various phases, which is briefly described here. Hawthorne Experiments- General Electric Company, Chicago • Phase I: Illumination Experiments • Phase II: Relay Assembly Test Room • Phase III: Interviewing Program • Phase IV: Bank Wiring Test Room Phase-I: Illumination Experiments Phase-I: Illumination Experiments In order to test the traditional belief that better illumination will lead to higher level of productivity, two groups of employees were selected. In one, the control group, the illumination remained unchanged throughout the experiment while in the other the illumination was increased. As had been expected, the productivity went up in the latter or what was known as the experimental group. But what baffled the experimenters was the fact that the output of the control group also went up. As the lighting in the formal group was not altered, the result was naturally puzzling and difficult to explain. The investigators then started to reduce the illumination for the test group. But in this case as well the output shoot up again. Thus the researchers had to conclude that illumination affected production only marginally and there must be some factor which produced this result. Phase-II: Relay Assembly Test Room In this phase, apart from illumination, possible effects of other factors such as length of the working day, rest pauses and their duration and frequency and other physical conditions were probed. The researcher who was continuously present with the group to observe the functioning of the group acted as their friend and guide. Surprisingly, here also the researchers found that the production of the group had no relation with the working conditions. The outcome of the group went increasing at an all-time high
  5. 5. even when all the improvements in the working conditions were withdrawn. Nobody in the group could suggest why this was so. Researchers then attributed this phenomenon to the following: • Feeling of perceived importance among the group members as they were chosen to participate in the experiment. • Good relationship among the group • High group cohesion. Phase III: Interviewing Program From the Relay Assembly Test Room, the researchers for the first time became aware about the existence of informal groups and the importance of social context of the organizational life. To probe deeper into this area in order to identify the factors responsible for human behavior, they interviewed more than 20,000 employees. The direct questioning was later replaced by non-directive type of interviewing. The study revealed that the workers’ social relationship inside the organizations has a significant influence on their attitude and behavior. It was also found that merely giving a person an opportunity to talk and air his grievances has a beneficial effect on his morale. Phase IV: Bank Wiring Test Room It had been discovered that social groups in an organization have considerable influence on the functioning of the individual members. Observers noted that in certain departments, output had been restricted by the workers in complete disregard to the financial incentives offered by the organization. Mayo decided to investigate one such department which was known as the bank wiring room where there were fourteen men working on an assembly line. It was found that the group evolved its own production norms which were definitely much lower than that set by the authority. This was done deliberately by the group to protect the slow workers and because of the apprehension that if the pace of production were increased, a sizeable number of the workforce would eventually be redundant. The group norm was so strictly adhered to by most of the group members that nobody dared to violate it for the fear of being ostracized by the group. An individual who had emerged as the informal leader controlled the group Thus the Hawthorne study pointed out the following: The business organization is essentially a socio-technical entity where the process of social interactions among its members is also extremely important.  There is not necessarily a direct correspondence between working conditions and high production.  Economic motives are not the only motive for an employee. One’s social needs can also significantly affect their behavior. Employee-centered leaders always tend to be more effective than the task-oriented leaders.  The informal groups and not the individuals are the units of analysis in a group. Social Systems Approach- Chester Barnard
  6. 6. According to this Approach: Concept of organization- Organizations exists when, persons are able to communicate ,they are willing to contribute and they attempt to accomplish a common purpose. Formal and Informal Organizations Elements of Organization-specialization, incentives, power and logical decision making. Authority- Authority acceptance-understand the communication, not inconsistent with the organizational purpose, not incompatible with personal goal, mental and physical compliance. Functions of the Executive- Maintenance of org. communication, securing of essential services for achieving organizational purpose, the formulation and definition of organizational purpose. Motivation Executive Effectiveness- Leadership Organizational Equilibrium- Matching of individual efforts and organizational efforts to satisfy individuals. Decision Theory Approach- Simon Concept of organization- To analyze an organization we should find out where and by whom decisions are made. Decision making- Intelligent activity, phase of inventing developing and analyzing possible courses of action. Bounded Rationality- Managers are satisfied with good enough decisions. Administrative Man- Simplifies things, takes decisions by simple rules likes tricks of trade or habit etc. Organization Communication- More importance to informal communication. Peter Drucker- Contemporary Approach Nature of Management- Lead towards innovation. Management Functions- Three basic functions of a manager are to make its contributions for- specific purpose and mission of the institution, making work productive and the worker achieving, managing social impacts and social responsibilities. Organization Structure- organized , least no. of managerial levels, catch them young. Federalism- Centralized control in decentralized structure. Management by Objectives (MBO)-concept introduced in 1954. Organizational Changes- Dynamic organizations for accepting the changes in the organizations.