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Organisations and Principles of Management

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					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.

				
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