Management & Organization
Chapter 1 – Innovative Management for Turbulent Times
Every day, managers solve difficult problems, turn organizations around and achieve
astonishing performances. To be successful, every organization needs good managers.
What characteristics do all good managers have in common? They get things done through
their organization. Managers are the executive function of the organization, responsible for
building an entire system rather than performing specific tasks.
Management
The attainment of organizational goals in an effective and efficient manner through
planning, organizing, leading and controlling organizational resources.
The four management functions are:
Planning
Organizing
Leading
Controlling
For the attainment of organizational goals.
The Process of Management
Management functions
Planning
Select goals and ways
Resources to attain them Performance
Human Controlling Organizing Attain goals
Financial Monitor activities and Assign responsibility for Products
Raw materials make corrections task accomplishment Services
Technological Efficiency
Leading
Information Effectiveness
Use influence to
motivate employees
Planning
The management function concerned with defining goals for future organizational
performance and deciding on tasks and resources need to attain them.
Organizing
The management function concerned with assigning tasks, grouping tasks into departments,
and allocating resources to departments.
,Leading
The management function that involves the use of influence to motivate employees to
achieve the organization’s goals. Creating a shared culture and values communicating goals
throughout the organization to and infusing employees with the desire to perform.
Controlling
The management function concerned with monitoring employees activities, keeping the
organization on track toward its goals, and making corrections as needed.
The other part of the definition of management is ‘the attainment ‘of organizational goals in
an efficient and effective manner. Management is important because organizations are
important they achieve things no individuals can do alone.
Organization
A social entity that is goal directed and deliberately structured. Socials entity means being
made up of two or more people. Goal directed means designed to achieve some outcome,
such as make a profit (Wal-Mart) or provide social satisfaction (sports club). Deliberately
structured means that tasks are divided and responsibility for their performance is given to
organizational members.
Effectiveness
The degree to which the organization achieves as stated goal. Meaning providing a product
or service that customers value.
Efficiency
The use of minimal resources, raw materials, money and people to produce a desire volume
of output. Measured by the amount of resources used to produce a product or service.
The ultimate responsibility of managers is to achieve high performance, which is the
attainment of organizational goals using resources in an effective and efficient way.
Performance
The organization’s ability to attain its goals by using resources in an efficient and effective
manner.
A manager’s job is complex and multi-dimensional and requires a wide range of skills that
can be summarized in three categories: conceptual, human and technological. Fig 1.2 Pg 10.
,Conceptual skills
The cognitive ability to see the organization as a whole system and relationships among its
parts. It means the ability to think strategically, to take the broad, long term view and to
identify evaluate and solve complex problems.
Human skills
The ability to work with and through other people and to work effectively as a group
member. Necessary to motivate, facilitate, coordinate, lead, communicate and resolve
problems.
Technical skills
The understanding of and proficiency in the performance of specific tasks. This could be
engineering, financing etc. This skill becomes less important when managers move up in the
hierarchy of an organization.
Managers use conceptual, human and technical skills to perform the four management
functions of, planning, organizing, leading and controlling in all organizations but not all
organizations are the same this is why managers use different management types to achieve
organizational goals.
Management Levels in the Organizational Hierarchy fig 1.3 pg 14
Top managers
A manager who is at the top of the organizational hierarchy and is responsible for the entire
organization. CEO, executive directors etc. Concerned with setting organizational goals,
defining strategies for achieving them, monitoring and interpreting the external
environment.
Middle manager
A manager who works at the middle levels of the organization and is responsible for
business units and major departments. Department heads, quality control, director of
research etc. are examples of middle managers. They‘re job is to implement the overall
strategies and policies set by the top management.
First-line manager
A manager who is at the first or second level management level and is directly responsible
for the production of good and services. Their primary concern is the application of rules and
achieving efficient production.
,Project manager
A manager responsible for a temporary work project that involves the participation of other
people from various functions and levels of the organization.
Functional manager
A manager who is responsible for a department that performs a single functional task and
has employees with similar training and skills. Functional departments include, advertising,
sales, finance, human resources, manufacturing and accounting.
General manager
A manager who is responsible for several departments that perform different functions.
Such as a Wall Mart, or a motor production plant.
Interim manager
A manager who is not affiliated with a specific organization but works on a project by project
basis or provides expertise to organizations in a specific area. This approach allow companies
to benefit from specialist skills without making long-term commitment.
Making the Leap from Individual Performer to Manager
From Individial Identity To Manager Identity
Specialist, Generalist,
performs specific coordinates
tasks diverse tasks
Get things done Get things done
through own through others
efforts A network builder
An individual
actor Works in highly
Works relatively interdependent
independently manner
Management roles fig 1.5 pg 21
Role
A set of expectations for one’s behavior in the role managing categories: informational,
interpersonal and decisional.
,Rapid environmental shifts in technology, globalization and shifting socials values are
causing transformations that have a huge impact on the manager’s job. The transition to a
new work place. Primary characteristic of the new workplace is digitization of business,
which has radically changed the nature of work, employees and the workplace itself.
The Transition to a New Workplace
The New Workplace The Old Workplace
Characteristics
Technology Digital Mechanical
Work Flexible, virtual Structured, localized
Workforce Empowered, diverse Loyal employees,
Management Competencies Homogenous
Leadership Empowering Autocratic
Doing work By teams By individuals
Relationships Collaboration Conflict, competition
, Management & Organization
Chapter 2 – The Evolution of Management Thinking
Social forces
The aspects of a culture that guide and influence relationships among people, their values,
needs and standards of behavior. These forces shape the social contract which refers to the
unwritten common rules and perceptions about relationships among people and between
employees and management.
Political forces
The influence of political and legal institutions on people and organizations. These forces
include such things as property rights, contract rights and determination of innocence or
guilt in crime.
Economic forces
Forces that affect the availability, production and distribution of a society’s resources among
competing users. Resources are needed for achieving organizational goals and economic
influence the allocation of scarce resources.
Mangers must be able to face environmental turbulence
Management perspectives
Classical perspective
A management perspective that emerged during the nineteenth and early twentieth
centuries that emphasized a rational scientific approach to the study of management and
sought to make organizations efficient operating machines.
,With the emergence of large factories organizations encountered problems that earlier
organizations didn’t have to deal with, tooling the plants, training employees, scheduling
complex manufacturing operations and dealing with increased labor dissatisfaction. This
demanded a new approach.
Scientific management
A subfield of the classical management perspective that emphasized scientifically
determined changes in management practices as solution to improving labor productivity.
An approach that calculated workload per employee and in cases rewarded productivity with
bonuses.
Bureaucratic organizations
A subfield of the classical management perspective that emphasized management on an
impersonal, rational basis through such elements as clearly defined authority and
responsibility, formal record-keeping, and separation of management and ownership.
Focus on organization rather than individuals
Systematic and rational approach looked at organization as a whole.
Fig 2.3 pg 47
Administrative principles
A subfield of the classical management perspective that focuses on the total organization
rather than the individual worker, sketching the management functions of planning,
organizing, commanding, coordinating and controlling. Many of these principles are used in
today’s organizations.
, Humanistic perspective
A management perspective that emerged near the late nineteenth century and emphasized
understanding human behavior, needs, and attitudes in the workplace.
The humanistic perspective is one that puts the emphasis on employee satisfaction under a
less authoritarian rule or better treatment by management, as the key to worker
productivity.
Human relations movement
A movement in management thinking and practice that emphasizes satisfaction of
employees basic needs as the key to increased worker productivity. The belief that human
relations are the best approach for increasing productivity persists today.
Human resources perspective
A management perspective that suggests jobs should be signed to meet higher level needs
by allowing workers to use their full potential. Jobs should be designed so that tasks are not
perceived as dehumanizing but instead allow workers to search for and use their full
potential.
Theory X
The average human being dislikes work and will avoid it if possible
Because of the human characteristic of dislike for work, most people must be coerced,
controlled, threatened or punished to forth the achieving of organizational goals.
The average human being prefers to be directed, wishes to avoid responsibility, has little
ambition and wants security above all.
Theory Y
The expenditure of physical and mental effort in work is as natural as play or rest.
A person will exercise self-direction and self-control in achieving objectives to which he or
she is committed.
The average human being learns, under proper conditions, not only to accept but to seek
responsibility.
High degree of imagination, ingenuity and creativity in the solution of organizational
problems is widely distributed in the population
Under the conditions of modern industrial life, the intellectual potential of the average
human is only partially utilized.
Behavioral sciences approach
A subfield of the humanistic management perspective that applies social science in an
organizational context, drawing from economics, psychology, sociology and other disciplines.
To understand employee behaviour and interaction in an organizational setting.
Chapter 1 – Innovative Management for Turbulent Times
Every day, managers solve difficult problems, turn organizations around and achieve
astonishing performances. To be successful, every organization needs good managers.
What characteristics do all good managers have in common? They get things done through
their organization. Managers are the executive function of the organization, responsible for
building an entire system rather than performing specific tasks.
Management
The attainment of organizational goals in an effective and efficient manner through
planning, organizing, leading and controlling organizational resources.
The four management functions are:
Planning
Organizing
Leading
Controlling
For the attainment of organizational goals.
The Process of Management
Management functions
Planning
Select goals and ways
Resources to attain them Performance
Human Controlling Organizing Attain goals
Financial Monitor activities and Assign responsibility for Products
Raw materials make corrections task accomplishment Services
Technological Efficiency
Leading
Information Effectiveness
Use influence to
motivate employees
Planning
The management function concerned with defining goals for future organizational
performance and deciding on tasks and resources need to attain them.
Organizing
The management function concerned with assigning tasks, grouping tasks into departments,
and allocating resources to departments.
,Leading
The management function that involves the use of influence to motivate employees to
achieve the organization’s goals. Creating a shared culture and values communicating goals
throughout the organization to and infusing employees with the desire to perform.
Controlling
The management function concerned with monitoring employees activities, keeping the
organization on track toward its goals, and making corrections as needed.
The other part of the definition of management is ‘the attainment ‘of organizational goals in
an efficient and effective manner. Management is important because organizations are
important they achieve things no individuals can do alone.
Organization
A social entity that is goal directed and deliberately structured. Socials entity means being
made up of two or more people. Goal directed means designed to achieve some outcome,
such as make a profit (Wal-Mart) or provide social satisfaction (sports club). Deliberately
structured means that tasks are divided and responsibility for their performance is given to
organizational members.
Effectiveness
The degree to which the organization achieves as stated goal. Meaning providing a product
or service that customers value.
Efficiency
The use of minimal resources, raw materials, money and people to produce a desire volume
of output. Measured by the amount of resources used to produce a product or service.
The ultimate responsibility of managers is to achieve high performance, which is the
attainment of organizational goals using resources in an effective and efficient way.
Performance
The organization’s ability to attain its goals by using resources in an efficient and effective
manner.
A manager’s job is complex and multi-dimensional and requires a wide range of skills that
can be summarized in three categories: conceptual, human and technological. Fig 1.2 Pg 10.
,Conceptual skills
The cognitive ability to see the organization as a whole system and relationships among its
parts. It means the ability to think strategically, to take the broad, long term view and to
identify evaluate and solve complex problems.
Human skills
The ability to work with and through other people and to work effectively as a group
member. Necessary to motivate, facilitate, coordinate, lead, communicate and resolve
problems.
Technical skills
The understanding of and proficiency in the performance of specific tasks. This could be
engineering, financing etc. This skill becomes less important when managers move up in the
hierarchy of an organization.
Managers use conceptual, human and technical skills to perform the four management
functions of, planning, organizing, leading and controlling in all organizations but not all
organizations are the same this is why managers use different management types to achieve
organizational goals.
Management Levels in the Organizational Hierarchy fig 1.3 pg 14
Top managers
A manager who is at the top of the organizational hierarchy and is responsible for the entire
organization. CEO, executive directors etc. Concerned with setting organizational goals,
defining strategies for achieving them, monitoring and interpreting the external
environment.
Middle manager
A manager who works at the middle levels of the organization and is responsible for
business units and major departments. Department heads, quality control, director of
research etc. are examples of middle managers. They‘re job is to implement the overall
strategies and policies set by the top management.
First-line manager
A manager who is at the first or second level management level and is directly responsible
for the production of good and services. Their primary concern is the application of rules and
achieving efficient production.
,Project manager
A manager responsible for a temporary work project that involves the participation of other
people from various functions and levels of the organization.
Functional manager
A manager who is responsible for a department that performs a single functional task and
has employees with similar training and skills. Functional departments include, advertising,
sales, finance, human resources, manufacturing and accounting.
General manager
A manager who is responsible for several departments that perform different functions.
Such as a Wall Mart, or a motor production plant.
Interim manager
A manager who is not affiliated with a specific organization but works on a project by project
basis or provides expertise to organizations in a specific area. This approach allow companies
to benefit from specialist skills without making long-term commitment.
Making the Leap from Individual Performer to Manager
From Individial Identity To Manager Identity
Specialist, Generalist,
performs specific coordinates
tasks diverse tasks
Get things done Get things done
through own through others
efforts A network builder
An individual
actor Works in highly
Works relatively interdependent
independently manner
Management roles fig 1.5 pg 21
Role
A set of expectations for one’s behavior in the role managing categories: informational,
interpersonal and decisional.
,Rapid environmental shifts in technology, globalization and shifting socials values are
causing transformations that have a huge impact on the manager’s job. The transition to a
new work place. Primary characteristic of the new workplace is digitization of business,
which has radically changed the nature of work, employees and the workplace itself.
The Transition to a New Workplace
The New Workplace The Old Workplace
Characteristics
Technology Digital Mechanical
Work Flexible, virtual Structured, localized
Workforce Empowered, diverse Loyal employees,
Management Competencies Homogenous
Leadership Empowering Autocratic
Doing work By teams By individuals
Relationships Collaboration Conflict, competition
, Management & Organization
Chapter 2 – The Evolution of Management Thinking
Social forces
The aspects of a culture that guide and influence relationships among people, their values,
needs and standards of behavior. These forces shape the social contract which refers to the
unwritten common rules and perceptions about relationships among people and between
employees and management.
Political forces
The influence of political and legal institutions on people and organizations. These forces
include such things as property rights, contract rights and determination of innocence or
guilt in crime.
Economic forces
Forces that affect the availability, production and distribution of a society’s resources among
competing users. Resources are needed for achieving organizational goals and economic
influence the allocation of scarce resources.
Mangers must be able to face environmental turbulence
Management perspectives
Classical perspective
A management perspective that emerged during the nineteenth and early twentieth
centuries that emphasized a rational scientific approach to the study of management and
sought to make organizations efficient operating machines.
,With the emergence of large factories organizations encountered problems that earlier
organizations didn’t have to deal with, tooling the plants, training employees, scheduling
complex manufacturing operations and dealing with increased labor dissatisfaction. This
demanded a new approach.
Scientific management
A subfield of the classical management perspective that emphasized scientifically
determined changes in management practices as solution to improving labor productivity.
An approach that calculated workload per employee and in cases rewarded productivity with
bonuses.
Bureaucratic organizations
A subfield of the classical management perspective that emphasized management on an
impersonal, rational basis through such elements as clearly defined authority and
responsibility, formal record-keeping, and separation of management and ownership.
Focus on organization rather than individuals
Systematic and rational approach looked at organization as a whole.
Fig 2.3 pg 47
Administrative principles
A subfield of the classical management perspective that focuses on the total organization
rather than the individual worker, sketching the management functions of planning,
organizing, commanding, coordinating and controlling. Many of these principles are used in
today’s organizations.
, Humanistic perspective
A management perspective that emerged near the late nineteenth century and emphasized
understanding human behavior, needs, and attitudes in the workplace.
The humanistic perspective is one that puts the emphasis on employee satisfaction under a
less authoritarian rule or better treatment by management, as the key to worker
productivity.
Human relations movement
A movement in management thinking and practice that emphasizes satisfaction of
employees basic needs as the key to increased worker productivity. The belief that human
relations are the best approach for increasing productivity persists today.
Human resources perspective
A management perspective that suggests jobs should be signed to meet higher level needs
by allowing workers to use their full potential. Jobs should be designed so that tasks are not
perceived as dehumanizing but instead allow workers to search for and use their full
potential.
Theory X
The average human being dislikes work and will avoid it if possible
Because of the human characteristic of dislike for work, most people must be coerced,
controlled, threatened or punished to forth the achieving of organizational goals.
The average human being prefers to be directed, wishes to avoid responsibility, has little
ambition and wants security above all.
Theory Y
The expenditure of physical and mental effort in work is as natural as play or rest.
A person will exercise self-direction and self-control in achieving objectives to which he or
she is committed.
The average human being learns, under proper conditions, not only to accept but to seek
responsibility.
High degree of imagination, ingenuity and creativity in the solution of organizational
problems is widely distributed in the population
Under the conditions of modern industrial life, the intellectual potential of the average
human is only partially utilized.
Behavioral sciences approach
A subfield of the humanistic management perspective that applies social science in an
organizational context, drawing from economics, psychology, sociology and other disciplines.
To understand employee behaviour and interaction in an organizational setting.
