MBA 011
MANAGING ORGANISATION
MANAGING
• TO COORDINATE MANPOWER, MATERIAL,
MACHINERY, MONEY, METHODS & MARKETS FOR
PRODUCTION.
• BY MANAGERS WHO HAVE KNOWLEDGE, SKILLS
& LEADERSHIP TO ATTAIN OBJECTIVES.
• IS A PROCESS OF PLANNING, ORGANISING,
STAFFING, LEADING & CONTROLLING.
• IS A SUBJECT OF STUDY WITH VARIOUS
SPECIALISATIONS.
• IS A RULE MAKING AND ENFORCING BODY
HAVING ITS HIERARCHY.
ORGANISATION
IS A
1.CONSCIOUSLY CO-ORDINATED SOCIAL
UNIT,
2.COMPOSED OF TWO OR MORE
PERSONS, THAT
3.FUNCTIONS ON A RELATIVELY
CONTINUOUS BASIS,
4.TO ACHIEVE COMMON GOALS.
3
EVOLUTION OF MANAGEMENT THOUGHT
• EARLY CONTRIBUTIONS:
1. MACHIAVELLIAN (1531) PRINCIPLES
1.
AN ORGANISATION IS MORE STABLE IF MEMBERS HAVE THE RIGHT
TO EXPRESS THEIR DIFFERENCES & SOLVE THEIR CONFLICTS
WITHIN IT.
2.
WHILE ONE PERSON CAN BEGIN AN ORGANISATION, IT IS LASTING
WHEN IT IS LEFT IN THE CARE OF MANY & WHEN THEY DESIRE TO
MAINTAIN IT.
3.
A WEAK MANAGER CAN FOLLOW A STRONG ONE, BUT NOT
ANOTHER WEAK ONE, AND MAINTAIN AUTHORITY.
4.
A MANAGER SEEKING TO CHANGE AN ESTABLISHED
ORGANISATION SHOULD RETAIN ATLEAST SOME OF THE ANCIENT
CUSTOMS.
CONTD……
EVOLUTION OF MANAGEMENT THOUGHT
EARLY CONTRIBUTIONS:
2. SUN TZU (2000 YEARS AGO):
1. WHEN ENEMY ADVANCES, WE RETREAT!
2. WHEN ENEMY HALTS, WE HARASS!
3. WHEN ENEMY SEEKS TO AVOID BATTLE, WE
ATTACK!
4. WHEN ENEMY RETREATS, WE PURSUE!
SCIENTIFIC MANAGEMENT (TAYLOR)
• BY F W TAYLOR (1856-1919), H.L. GANTT (1861-1919) & GILBERTHS
(1864-1972)
• SCIENTIFIC MANAGEMENT: STATES THAT PRODUCTIVITY CAN BE
INCREASED BY RAISING EFFICIENCY OF WORKERS THROUGH
DETERMINING THE BEST METHOD FOR PERFORMING ANY TASK AND
ALSO BY SELECTING, TRAINING & MOTIVATING WORKERS.
PRINCIPLES OF SCIENTIFIC MANAGEMENT (4)
1. THE DEVELOPMENT OF A TRUE SCIENCE OF MANAGEMENT, SO THAT
THE BEST METHOD FOR PERFORMING EACH TASK CAN BE
DETERMINED.
2. THE SCIENTIFIC SELECION OF WORKERS, SO THAT EACH WORKER
WOULD BE GIVEN RESPONSIBILITY FOR THE TASK FOR WHICH HE OR
SHE IS BEST SUITED.
3. THE SCIENTIFIC TRAINING & DEVELOPMENT OF THE WORKERS.
4. INTIMATE FRIENDLY COOPERATION BETWEEN MANAGEMENT &
LABOUR
CONTD…..
SCIENTIFIC MANAGEMENT
HOW DONE:
• TAYLOR BROKE EACH JOB INTO COMPONENTS &
DESIGNED THE QUICKEST & BEST METHOD OF
PERFORMING THE JOB
• ENCOURAGED EMPLOYERS TO PAY MORE PRODUCTIVE
WORKERS
AT HIGHER RATES THAN OTHERS
(DIFFERENTIAL RATES OF PAYMENT AS PER
PERFORMANCE)
CONTD…..
SCIENTIFIC MANAGEMENT
GANTT: (1861-1919)
• INTRODUCED BONUS TO EVERY WORKER WHO FINISHED
THE DAY’S ASSIGNED WORK; & TO SUPERVISOR FOR EACH
WORKER WHO REACHED DAILY STANDARD & ALSO EXTRA
BONUS IF ALL WORKERS REACHED IT.
• INTRODUCED CHART SYSTEM- BLACK FOR REACHING
TARGET; RED FOR FALLING SHORT.(NOW BASIS FOR
CRITICAL PATH METHOD (CPM)) & PROGRAM EVALUATION
& REVIEW TECHNIQUE (PERT)
GILBRETHS: (1864-1972)
• CARRIED OUT FATIGUE & MOTION STUDIES- FOCUSSING
ON WAYS OF PROMOTING THE INDIVIDUAL WORKERS
WELFARE i.e. BY REDUCING FATIGUE & THUS RAISING
MORALE.
CONTD…..
SCIENTIFIC MANAGEMENT
RESULTS
POSITIVE:
• PRODUCTION INCREASED RESULTING IN HIGHER PAY.
• TECHNIQUES APPLIED TO MANY NON-INDUSTRIAL
ORGANISATIONS eg TRAINING OF SURGEONS, FASTFOOD
CHAINS.
NEGATIVE:
• WORKER’S UNIONS OPPOSED, FEARING IF WORKERS
WORK HARDER OR FASTER, THE WORK WILL BE OVER
& SOME OF THEM MAY LOOSE JOB.
• HIGHER PRODUCTIVITY & THUS PROFITABILITY LED
SOME
MANAGERS
TO
EXPLOIT
WORKERS
&
CUSTOMERS, SO MORE PEOPLE JOINED UNIONS
CREATING
SUSPICION
&
MISTRUST
BETWEEN
MANAGERS & WORKERS.
……….
CLASSICAL THEORY
• CLASSICAL:
MEANS
SOMETHING
ACCEPTED OR LONG ESTABLISHED.
TRADITIONALLY
• ELEMENTS OF CLASSICAL THEORY:• INTER-RELATED FUNCTIONS:PLANNING, ORGANISING,
STAFFING, DIRECTING & CONTROLLING.
• GUIDING PRINCIPLES:BASED ON PRACTICAL
EXPERIENCE.
• BUREAUCRATIC STRUCTURE: HAS RULES,
PROCEDURES, IMPERSONAL RELATIONS, HIERARCHY,
AUTHORITY-RESPONSIBILITY.
• REWARD-PUNISHMENT NEXUS: FOLLOW THE RULES,
OBEY THE ORDERS, SHOW THE RESULTS & GET THE
REWARDS.
BUREACRACY
(MAX WEBER 1864-1920)
• ELEMENTS OF BUREAUCRACY:
• HIERARCHY
• DIVISION OF WORK
• RULES, REGULATIONS & PROCEDURES.
• RECORDS.
• IMPERSONAL RELATIONS.
• ADMINISTRATIVE CLASS.
CLASSICAL ORGANISATION THEORY SCHOOL
(BY FAYOL)
• EMPHASISES THAT MANAGEMENT IS A SKILLWHICH CAN BE TAUGHT, & ONCE ITS
PRINCIPLES ARE UNDERSTOOD, THESE THEN
BECOME GUIDELINES FOR MANAGING LARGE
ORGANISATIONS .
• WHILE
SCIENTIFIC
MANAGEMENT
IS
CONCERNED WITH INCREASING PRODUCTIVITY
& EFFICIENCY OF WORKERS; THE CLASSICAL
ORGANISATION THEORY BY FAYOL COVERS
ALL ASPECTS OF MANAGEMENT.
CONTD….
FAYOL’S 14 PRINCIPLES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
AUTHORITY – OF MANAGER; FORMAL & PERSONAL
DISCIPLINE- OF MEMBERS TO RESPECT RULES;
EQUITY- FAIRNESS TO SUBORDINATES.
CENTRALISATION- DECENTRALISATION- AUTHORITY
INITIATIVE- FREEDOM TO SUBORDINATES,
DIVISION OF LABOUR- AS PER SPECIALISATION.
ESPIRIT-DE-CORPS- TEAM SPIRIT;
UNITY OF COMMAND- EMPLOYEE TO RECEIVE ORDERS FROM
ONE SUPERIOR.
REMUNERATION- COMPENSATION FOR WORK
HIERARCHY- LINE OF AUTHORITY
ORDER-MATERIAL AT THE RIGHT PLACE AT THE RIGHT TIME.
UNITY OF DIRECTION- ALL HAVING SAME OBJECTIVE
STABILITY OF STAFF- LESS TURN OVER OF MANPOWER.
EMPLOYEE INTEREST- SUBORDINATE TO ORGANISATIONAL
INTEREST.
…….
MANAGEMENT SCIENCE SCHOOL
•
DURING WORLD WAR II, THE BRITISH DEVELOPED
OPERATIONS RESEARCH (OR) - (MATHEMATICAL TECHNIQUES
FOR MODELLING, ANALYSIS AND SOLUTION OF PROBLEMS).
THIS THEN DEVELOPED AS MANAGEMENT SCIENCE.
•
MANAGEMENT SCIENCE SCHOOL EMPHASISES APPROACHING
MANAGEMENT
PROBLEMS
THROUGH
THE
USE
OF
MATHEMATICAL TECHNIQUES FOR THEIR MODELLING,
ANALYSIS AND SOLUTION, WITH COMPUTERS.
•
WITH MATHEMATICAL MODELLING USING COMPUTERS AND
CHANGING THE VARIABLES(COST, MATERIAL etc) MANAGERS
CAN IMAGINE HOW THE FUTURE WILL LOOK LIKE.
•
NOW ALL TYPE OF LARGE ORGANISATIONS USE COMPUTERS
TO SOLVE COMPLEX PROBLEMS.
…………
BEHAVIOURAL SCHOOL
•
•
IT IS THE SCIENTIFIC METHOD OF
STUDYING THE PEOPLE IN THEIR WORK
ENVIORNMENT
IT BROUGHT OUT TO NEW DIMENSIONS FOR
MANAGEMENT AND ORGANISATIONS.
1. PEOPLE ARE COMPLEX AND ORGANISATIONAL
RELATIONSHIP NEED TO SUPPORT THEM TO
‘SELF ACTUALISATION’.
2. NEEDS OF THE PEOPLE GENERALLY FOLLOW A
HIERARCHY i.e. PHYSICAL, SAFETY, RESPECT etc.
BUT COULD VARY. (MASLOW’S THEORY) AND
BASED ON ASSUMPTIONS ABOUT PEOPLE AND
THEIR APPROACH TO WORK (X & Y THEORY)
BEHAVIOURAL SCHOOL
HAWTHRONE
EXPERIMETS &HUMAN RELATION
1. ILLUMINATION EXPERIMENT (1924-27)
• PURPOSE: TO FIND EFFECT OF ILLUMINATION ON PRODUCTIVITY
• HYPOTHESIS: WITH HIGHER ILLUMINATION, PRODUCTIVITY
WOULD INCREASE.
• EXPERIMENT: TWO GROUPS
EXPERIMENTAL GROUP
CONTROL
GROUP
RESULT
INCREASED/ DECREASED
LIGHT
SAME LIGHT
BOTH GROUPS INCREASED
PRODUCTION
• RESULT- ILLUMINATION DID NOT AFFECT PRODUCTIVITY
• CONCLUSION: NOT ILLUMINATION BUT HUMAN FACTOR WAS
IMPORTANT FOR PRODUCTIVITY.
CONTD….
HAWTHRONE
EXPERIMETS &HUMAN RELATION
2. RELAY ASSEMBLY TEST ROOM EXPERIMENT (1927-28)_
•
•
•
•
•
•
•
PURPOSE: TO FIND EFFECT OF CHANGES IN WORKING HOURS & OTHER
WORKING CONDITIONS.
HYPOTHESIS: MORE WORKING HOURS WILL RESULT INTO MORE
PRODUCTIVITY.
EXPERIMENT: SEPARATE RELAY ASSEMBLY TEST ROOM SET-UP. TWO GIRLS &
FOUR MORE GIRLS OF THEIR CHOICE PUT IN THAT ROOM:REST PERIODS- 5 MINS – 10 MINS. ETC.
WORKING HOURS CHANGED/REDUCED.
RESULT: PRODUCTION INCREASED DESPITE REST PERIODS & REDUCED
WORKING HOURS.
CONCLUSION: PRODUCTIVITY INCREASED DUE TO i) CHANGES IN ATTITUDE
TOWARD WORK ii) STABILITY iii) SENSE OF BELONGINGNESS & RESPONSIBILITY
iv) SELF DISCIPLINE & v) GOOD RELATIONS BETWEEN SUPERVISOR & GIRLS.
CONTD…
HAWTHRONE
EXPERIMETS &HUMAN RELATION
3. MASS INTERVIEWING PROGRAMME ( 1928-30)
• PURPOSE:TO DETERMINE ATTITUDE OF EMPLOYEES
TOWARDS COMPANY, SUPERVISION, PROMOTIONS,
WAGES, INSURANCE PLANS ETC.
• EXPERIMENT- INDIVIDUALS INTERVIEWED
• CONCLUSION:
• COMPLAINTS
ARE
SYMPTOMS
OF
SOME
DISTURBANCE
• SOCIAL DEMANDS ALONG WITH WORK ALSO
NEED TO BE FULFILLED FOR SATISFACTION.
• EVERYONE NEEDS SOME POSITION & POWER IN
AN ORGANISATION.
• THERE ARE PERSONAL PREFERENCES FOR CERTAIN
JOBS ETC. SO PERSON-JOB FIT IS REQUIRED.
HAWTHRONE
EXPERIMETS &HUMAN RELATION
4. BANK WIRING OBSERVATION ROOM EXPERIMENT (1930-32)
•
•
•
•
•
PURPOSE: TO DETERMINE IF INCENTIVE PLAN OF MORE WAGES
FOR MORE PRODUCTION IS SUCCESSFUL IN GROUPS.
HYPOTHESIS: MORE WAGES FOR MORE PRODUCTION WILL
INCREASE TOTAL PRODUCTIVITY
EXPERIMENT: BANK WIRING WITH SAME SUPERVISORS & SAME
AREAS OF WORK. INCENTIVES FOR MORE OUTPUT ANNOUNCED.
RESULT: NO INCREASE IN PRODUCTIVITY.
CONCLUSION: PRODUCTIVITY DID NOT INCREASE BECAUSE i) FEAR
OF RAISING STANDARDS BY MANAGEMENT ii) PROTECTION OF
SLOWER WORKERS iii) SOME WORKERS COULD BE PUT OUT OF
EMPLOYMENT iv) SATISFATION OF MANAGEMENT WITH EXISTING
OUTPUT v) FEAR AMONG EFFICIENT WORKERS OF BEING
OUTCASTED.
CONTD…
IMPLICATIONS OF HAWTHRONE EXPERIMENTS
•
•
•
•
•
•
SOCIAL FACTORS IN OUTPUT;
GROUP INFLUENCE;
CONFLICT;
LEADERSHIP;
SUPERVISION; &
COMMUNICATION
SYSTEMS APPROACH
CONCEPT:
• IT VIEWS
THE ORGANISATION AS A UNIFIED,
PURPOSEFUL SYSTEM COMPOSED OF INTER-RELATED
PARTS (SUB-SYSTEMS).
• ACTIVITY OF ANY ONE PART OF THE ORGANISATION,
AFFECTS IN VARYING DEEGREES, THE ACTIVITY OF
EVERY OTHER PART. (EG PRODUCTION & MARKETING)
• A SYSTEM COULD BE ‘OPEN’ OR ‘CLOSE’, WILL HAVE
‘SUB-SYSTEMS’. ‘SYNERGY’ & ‘FLOW’ WORK WITHIN
BOUNDARIES WITH FEEDBACK (eg CAR, HUMAN
BODY).
……….
SYSTEMS APPROACH-VOCABULARY
• OPEN AND CLOSED SYSTEM: IT IS OPEN IF IT INTERACTS
WITH ITS ENVIRONMENT AND IS CONSIDERED CLOSED IF
IT DOES NOT. AN ORGANISATION HAS TO ADAPT &
RESPOND TO BOTH INTERNAL & EXTERNAL
ENVIRONMENT.
• SYNERGY: MEANS WHOLE IS GREATER THAN THE SUM
OF ITS PARTS i.e. WHEN THE PARTS ARE PROPERLY INTERRELATED & MANAGED, THE OUTPUT IS MUCH GREATER
THAN IT WOULD BE OTHERWISE.
CONTD……
SYSTEMS APPROACH-VOCABULARY
• FEEDBACK: IS CENTRAL TO ANY SYSTEM
CONTROL SO AS TO ASSESS THE WORK OUTPUT
& MAKE CORRECTIONS, IF NEEDED.
• ENTROPY: IS A PROCESS THAT LEADS TO SYSTEM
DECLINE & OCCURS IF FEEDBACK IS NOT
MONITORED & THE REQUIRED ADJUSTMENTS
ARE NOT MADE.
……..
USEFULNESS OF SYSTEMS APPROACH
• MAKES THE MANAGERS THINK & TAKE DECISIONS
CONSIDERING THE SYSTEM AS A WHOLE (SCIENTIFIC,
ADMINISTRATIVE , HUMAN RELATIONS etc.) & NOT IN
PARTS.
• HELPS
ORGANISATIONS
TO
MONITOR
THEIR
ENVIRONMENT, ADJUST TO CHANGES, AND CONTINUOUSLY
BRING IN NEW INPUTS TO SURVIVE & PROGRESS.
LIMITATIONS:
DOES NOT IDENTIFY SITUATIONAL DIFFERENCES AND
EMPHASISES ONLY ON COORDINATION.
………
CONTINGENCY APPROACH
• THE VIEW THAT THE MANAGEMENT TECHNIQUE
THAT BEST CONTRIBUTES TO THE ATTAINMENT
OF ORGANISATIONAL GOALS MIGHT VARY IN
DIFFERENT
TYPES
OF
SITUATIONS
OR
CIRCUMSTANCES.
• THE MANAGER’S TASK IS TO IDENTIFY WHICH
TECHNIQUE WILL , IN A PARTICULAR SITUATION,
UNDER PARTICULAR CIRCUMSTANCES AND AT A
PARTICULAR TIME, BEST CONTRIBUTE TO THE
ATTAINMENT OF MANAGEMENT GOALS.
• IT IS ALSO CALLED THE SITUATIONAL APPROACH.
CONCEPT OF MANAGEMENT
DEFINITIONS:
AS AN ECONOMIC RESOURCE
• ‘PRODUCTIVITY’ BY CO-ORDINATING – MANPOWER,
MATERIAL, MACHINERY, MONEY, METHODS & MARKETS.
(ECONOMISTS CONCEPT)
AS A GROUP• A DISTINCT CLASS WITH ITS OWN STATUS SYSTEM eg
‘MANAGERS’ WHO HAVE KNOWLEDGE & SKILLS AND
EXERCISE LEADERSHIP TO ACCOMPLISH OBJECTIVES
BY DIRECTING OTHERS.(SOCIALOGIST CONCEPT)
Contd….
MANAGEMENT- DEFINITION
AS A SYSTEM OF AUTHORITY
• A RULE MAKING & RULE ENFORCING BODY, HAVING ITS
OWN HIERARCHY OF AUTHORITY (TOP, MIDDLE, FIRST
LEVELS) (ADMINISTRATIVE CONCEPT)
AS A SEPARATE DISCIPLINE
• A FIELD OF STUDY OR SEPARATE DISCIPLINE WITH
SEVERAL SPECIALISATIONS eg MARKETING, FINANCE,
HUMAN
RESOURCES(HR),
INFORMATION
TECHNOLOGY(IT),
INTERNATIONAL
BUSINESS(IB)
(ACADEMIC CONCEPT)
Contd……
MANAGEMENT DEFINITION
AS A PROCESSi) PLANNING
ii) ORGANISING, iii) STAFFING
iv) LEADING AND v) CONTROLLING & COORDINATING
THROUGH
SOCIAL PROCESS: ESTABLISHING RELATIONS AMONG
PEOPLE.
INTEGRATING PROCESS: HUMAN RESOURCES WITH NONHUMAN RESOURCES;&
CONTINUOS PROCESS: IDENTIFYING PROBLEMS &
SOLVING THEM.
AS AN ACTIVITY• WHAT MANAGERS DO –INFORMATIONAL, DECISIONAL,
INTERACTIONAL etc (ACTIVIST CONCEPT)
• …………………
MANAGEMENT-NEED
ALL SIZES OF
ORGANIZATIONS
SMALL
LARGE
ALL AREAS OF
ORGANISATIONS MANUFACTURING,MARKET
ING, HUMAN RESOURCES,
ACCOUNTING &
INFORMATION SYSTEM-ETC
MANAGEMENT IS
NEEDED IN……………
ALL TYPES OF
ORGANISATIONS
PROFIT
NON PROFIT
ORGANISATION LEVELS
BOTTOM
TOP
FOR EFFICIENTLY & EFFECTIVELY ACHIEVING GOALS OF AN ORGANISATION
MANAGEMENT- CONCEPT
MANAGEMENT IS THE PROCESS OF DESIGNING AND
MAINTAINING AN ENVIRONMENT IN WHICH INDIVIDUALS
WORKING TOGETHER IN GROUPS ACCOMPLISH THEIR
GOALS EFFECTIVELY AND EFFICIENTLY.
• THE PROCESS CONSISTS OF PLANNING, ORGANISING,
STAFFING, LEADING & CONTROLLING;
• IT IS REQUIRED FOR ALL TYPES OF ORGANISATIONS;
• IT APPLIES TO MANAGERS AT ALL LEVELS; &
• IT IS CONCERNED WITH PRODUCTIVITY–
EFFECTIVENESS & EFFICIENCY IS IMPORTANT.
HENCE
NATURE OF MANAGEMENT
UNIVERSAL PROCESS: APPLICABLE IN ALL TYPES OF
ORGANISATIONS-(GOVT,
BUSINESS,
SCHOOLS,
HOSPITALS, MILITARY AND AT ALL LEVELS).
PURPOSEFUL:TO
OBJECTIVES.
ACHIEVE
SPECIFIC
GOALS
/
CREATIVE: OPTIMUM UTILISATION OF RESOURCES
THROUGH EFFICIENCY TO ACHIEVE OBJECTIVES.
INTEGRATIVE: TO UNIFY INDIVIDUALS INTO TEAMS
TO ACHIEVE INDIVIDUAL & ORGANISATIONAL GOALS.
CONTINUOS PROCESS: ALWAYS ON-GOING.
SOCIAL PROCESS: IT IS BY THE PEOPLE, THROUGH
THE PEOPLE & FOR THE PEOPLE.
CONTD…..
NATURE OF MANAGEMENT (CONTD)
INTANGIBLE: UNSEEN & INVISIBLE FORCE BUT RESULTS &
ACTIONS CAN BE SEEN.
GROUP PHENOMENON: GROUP EFFORT TO GET THINGS
DONE.
MULTI-DISCIPLINARY:
HAS
AREAS
OF
ENGINEERING,
SOCIOLOGY, ECONOMICS, ANTHROPOLOGY ETC.
BOTH ART & SCIENCE: APPLICATION OF KNOWLEDGE &
SKILLS
BASED
PROBLEMS.
ON
SOUND
PRINCIPLES
TO
SOLVE
MANAGEMENT SKILLS
1. TECHNICAL SKILLS:
•
KNOWLEDGE & ABILITY TO USE TOOLS, EQUIPMENT,
PROCESSESS, TECHNIQUES & PROCEDURES INVOLVED IN
PERFORMING SPECIFIC TASKS/ JOBS/ THINGS.
•
REQUIRE SPECIALISED KNOWLEDGE & PROFICIENCY- EXPERTS eg
SURGEONS, ENGINEERS, ACCOUNTANTS, TECHNICIANS etc., &
•
INVOLVE ‘JOBS’ ‘THINGS’.
2. HUMAN SKILLS:
•
ABILITY TO ‘WORK WITH’, UNDERSTAND, & MOTIVATE, OTHER
PEOPLE AS INDIVIDUALS OR IN GROUPS; TO WIN CO-OPERATION
& BUILD EFFECTIVE TEAMS,
•
UNDERSTAND MATTERS FROM OTHER’S POINT OF VIEW, &
•
RESOLVE INTRA & INTER GROUP CONFLICTS.
CONTD…..
MANAGEMENT SKILLS
3. CONCEPTUAL SKILLS:
• ARE ABILITY TO COORDINATE & INTEGRATE ALL
INTRESTS & ACTIVITIES OF AN ORGANISATION, &
• INVOLVE UNDERSTANDING OF ABSTRACT IDEAS,
CONSTRUCTING MODELS, RELATIONSHIPS AND
ANTICIPATING CONSEQUENCES.
CONCLUSION:
• TECHNICAL SKILLS DEAL WITH JOBS; HUMAN SKILLS
WITH PERSONS; & CONCEPTUAL SKILLS WITH IDEAS.
• THESE SKILLS ARE INTER-RELATED & ARE REQUIRED
BY MANAGERS AT ALL LEVELS.
LEVELS OF MANAGEMENT
LEVELS:• DETERMINE AUTHORITY AND STATUS,
• NUMBER OF LEVELS DEPEND UPON SIZE & COMPLEXITIES OF AN
ORGANISATION, &
• LEVELS ARE
REPORTING.
LINKED
THROUGH
CHAIN
OF
COMMAND/
TOP LEVEL MANAGEMENT (EDs, VPs)
•
MAKE LONG TERM STRATEGY, PREPARE BUDGETS & ALLOCATE
RESOURCES,
•
CREATE ORGANISATIONAL FRAMEWORK BY ASSIGNING RESPONSIBILITY
& AUTHORITY,
•
APPOINT KEY EXECUTIVES & DEPARTMENTAL HEADS, &
•
REPRESENT ORGANISATION TO THE OUTSIDE WORLD & DEAL WITH
EXTERNAL ENVIRONMENT.
CONTD….
LEVELS OF MANAGEMENT
MIDDLE LEVEL MANAGEMENT(MANAGERs, HODs)
•
PREPARE POLICIES BASED UPON STRATEGIES MADE
BY TOP MANAGEMENT,
•
PREPARE DEPARTMENTAL ORGANISATIONAL SET-UP,
•
SELECT SUITABLE SUPERVISING PERSONNEL, &
•
TRANSMIT ORDERS, DECISIONS & GUIDELINES TO
CARRY OUT POLICIES & OPERATIONS.
CONTD….
LEVELS OF MANAGEMENT
FIRST LEVEL MANAGEMENT(SUPERVISORY):
1. ASSIGN JOB TO WORKERS
2. SUPERVISE & CONTROL WORKERS
3. ASSIST & ADVICE WORKERS
4. MAINTAIN DISCIPLINE
5. ARRANGE MATERIAL
6. DAY TO DAY OUTPUT
RELATIVE SKILLS AT DIFFERENT LEVELS
TOP
CONCEPTUAL
MANAGEMENT
MIDDLE
CONCEPT
MANAGEMENT UAL
FIRST LINE
CONCE
MANAGEMENT PTUAL
HUMAN
HUMAN
HUMAN
TECH.
TECH
TECH.
MANAGING IN PRESENT COMPETITIVE ENVIRONMENT
• INVENTING AND REINVENTING ORGANISATIONS FOR
EFFICIENCY & EFFECTIVENESS
• GLOBALISATION (MNCs, e-MARKETS)
• BUILDING MANAGEMENT CAPABILITY THROUGH
LEADERSHIP, FINANCES, INNOVATIONS, RELATIONSHIP &
TECHNOLOGY.
• MERGERS & ACQUISITIONS (M&As) (MERGER IS
BETWEEN TWO EQUALS ORGANISATIONS AND
ACQUITION IS BY A BIGGER ONE, OF A SMALLER ONE
• DIVERSITY (DIFFERENT LANGUAGES , RELIGIONS , TASTES
FASHIONS, GENDERS)
• ETHICAL HONESTY & SOCIAL RESPONSIBILITY
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MANAGING ORGANISATION