Lecture 3 Organizations & Principles of Management Organizations and Principles of Management What is management? Combine the function of management with other resources to achieve organizational objectives. Four functions of Management: - Planning - Organizing - Directing/Leading - Controlling Planning Setting goals: long-term goals, intermediate goals, short-term goals Developing strategies: how to reach the goals? Determining resources: capital & manpower Setting standards: target, e.g. save $1million. Organizing Allocating resources, assign tasks, establish procedures Preparing organization chart Recruiting, selecting, training & developing employees Matching the job with employees: effectiveness & efficiency Directing/Leading Guiding & motivating Giving assignments Explaining routines Clarifying policies Providing feedback Controlling Establish standards Measuring results Monitoring performance Taking corrective action Integration of Management Functions Every function is important 4 functions must be co-ordinated to achieve the optimum level of performance. Levels of Management Top management: responsible for overall performance & effectiveness, formulate strategies, set polices, CEO Middle management: implement strategies, policies, decision made by top management, Plant Manager, Division head Levels of Management Supervisory (first-level): Working & supervising worker, interact with suppliers, Foreman, Section leader Managerial Skills Conceptual skills: mental ability to think & see beyond the present situation, Top management Technical skills: ability to use the knowledge, tools & techniques, help employees solve work-related problems accounting, engineering, sales, First-line management Human relations skills: able to understand and interact with people, all level management Managerial Skills Decision-making skills: ability to define problems & selecting the best courses of action. Time management skills: efficient and productive use of time Levels of Management Strategic Planning & Long-term goals Top Managers Tactical Planning & Intermediate goals Middle Managers Operational Planning & First-line/Front-line Managers Short-term goals Chapter 5 7 Basic Management Skills Top Level Human Relations Management Skills Middle Level Management First/Front Line Management Chapter 5 8 Basic Skills Cont. Global & Technology Top Level Management Skills Time Management Decision-making Management Skills Skills Middle Level Management First/Front Line Management Chapter 5 9 Critical Challenges to Management Globalization of competition: how to gain advantage Increasing emphasis on quality: ISO 9000 Ethics and social responsibility: more sensitive to legal & social expectations. Critical Challenges to Management Challenge of empowerment: give employees more decision-making freedom Changing organization hierarchy: downsizing, re-structuring More Responsive Organization Flat organization structure instead of tall, wide span of control Departmentalization: replaced by matrix organization Decentralization rather than centralization.