Management brief Course

2. Global Theory of
Management
• 1. The empirical approach
Now-a-days most writers purify the
basics. That is, they make the basic
concepts of management very
simple and clear. So, the trainee
managers can understand the basics
very easily. Secondly, whenever
there is a problem, most experts
first try to find out the root cause of
the problem.
• 2. System thinking
Most experts agree that the
organization is a unified, purposeful
system which consists of many
different parts. The organization is a
part of the total environment.
Today, there are many schools
of management. There are also
many management experts. Each
school and each expert gives their
own theory about management.
They say that their theory is right,
and the theories of the other
experts are wrong. There are so
many management theories. We
cannot say, which one right and,
which one is wrong. This has
caused a lot of confusion in the
field of management.

3. Global Theory of
Management
3. Situational and contingency approach
Most experts believe that we cannot have
universal styles of management, which can
be used in all situations.
A manager must first study the situation
very carefully then he must use a style of
management, which is suitable for that
situation.
4. Motivation and leadership theory
Most experts feel that the theories of
motivation and leadership must be
combined. They support the Follower
Theory of leadership.
According to the follower theory, people
will follow those leaders who will help
them to satisfy their wants. So, a leader
will be successful only if he can satisfy the
wants of his followers. Now-a-days leaders
must combine both financial and non-
financial motivation plans.
1. Management Key Concepts
Organizations: People working
together and coordinating their
actions to achieve specific goals.
Goal: A desired future condition
that the organization seeks to
achieve.
Management: The process of
using organizational resources to
achieve the organization’s goals
by...
Planning, Organizing, Leading,
and Controlling

4. Global Theory of
Management
5. Impact of technology
All experts agree that technology has a big influence on management.
Management has to change according to the changes in technology.
Technology has a direct effect on the organizational structure, plant
location, plant layout, production design and role of manpower. As the
technology changes, these factors will also change.
6. Merger of theory and practice
Most experts agree that the best way to teach management is to combine
theory (fundamentals) and practice (case studies). Management trainees all
over the world read the same management books. They also read the same
case studies. They are given the same type of training. They also talk to
other managers all over the world using advanced communication
technology. Today, all multi-national corporations (MNCs) use the same
management techniques. This justifies the emergence of Global Theory of
Management.

5. Global Theory of
Management
7. Unified development and
behaviour
Most experts feel
that Organization
Development and Organization
behavior, are both moving
towards the same direction. So,
the experts are making uniform
(same) theories for organization
development and a behaviour.
These theories are used for
managing MNCs all over the
world.
8. Research supports the
management process
Research all over the world,
found that the
management,process
(planning, organizing,
directing, controlling)
is the best way to manage an
organization. So, organizations all
over the world are using the
management process.

6. 9. Common meaning for management
terms
About twenty-five years ago, different
management experts gave different
meanings for the same management
terms. However, now this situation has
stopped. Today, management terms
have same meaning in all books.

7. Nature Management
The concept of management, its
necessity.
Definitions management

8. The main ingredients for success are:
1) the survival of the organization in
the long term;
2) a performance;
3) a efficiency.

9. 2. Management as a particular type of
activity, its specificity
To give a complete definition of
management is difficult, because it
is a very complex and multifaceted
phenomenon. There are more than
300 definitions of management.

10. Lee Iacocca believes that the management
- no more than a "tune people into work."
Akio Morita wrote that the quality manager
can be judged by how well he can organize a
large number of people and how effectively
can achieve the best results from each of them,
merging them work together.

11. Peter Drucker - defines management as a
special kind of activity that transforms an
unorganized crowd into a focused,
effective and efficient group.
Werner Siegert emphasizes that control - hence lead
to the success of others.

12. Michael Mesckon believes that the
management - the process of
planning, organization, motivation
and control, necessary to formulate
and achieve organizational goals
through other people.

13. The specific nature of management are:
1) The object of labor, which is the work of others;
2) the means of labor - organizational and computer
engineering, information system of collection, processing
and transmission;
3) the object of labor, which acts as a collective of people
within a certain cooperation;
4) the product of labor, which is a management decision;
5) the results of labor, manifested in the final results of the
collective.

14. 3. Organization as to control:
component parts, the levels of
the basic processes

15. Any organization is an open system that is built into the environment
with which the organization is in a constant state of exchange. The
input it receives resources from the environment, it sends the output to
the external environment created product. Therefore livelihoods
organization consists of three main processes:
1) obtaining resources from the external
environment;
2) the conversion of resources into a finished
product;
3) transfer of the product produced in the
environment.

16. 4. The elements of the management
process. Management functions
Management - is a single process, which
is represented by different
managerial employees or agencies.
The purpose of their interaction is
the development of a single control
to the control object. For managerial
staff are managers (managers),
experts and employees (technical
artists). The central place in the
management ranks manager. He
heads a certain team, he owns the
right to take control and
management decisions, that he bears
full responsibility for the results of
the collective.
Manager - Head, professional manager,
who is a permanent position with the
authority and decision-making on
specific activities of the organization.
Specialists - workers performing
certain functions of management.
They analyze the information and
prepare options for solutions to the
leaders of the appropriate level.
Employees serve technical
performers: secretaries, assistants,
technicians, etc.

17. THESE ARE THE BASIC FUNCTIONS OF
MANAGEMENT, THEY HAVE A PLACE ON
ANYONE, EVEN A SMALL ENTERPRISE.
SINCE MANAGEMENT - THIS IS A SPECIFIC TYPE OF
WORK, A PARTICULAR PROFESSION SHOULD BE
COMMON FEATURES IN THE CONTENT OF THE WORK
OF MANAGERS. THESE ARE SHORT DURATION,
DIVERSITY AND FRAGMENTATION.
Direct control action on the control object is the
interaction of the three functions: planning,
organization and motivation.

18. 5. Personnel management and their roles
three conceptual categories:
information (information
management),
interpersonal (people management)
and related decision-making
(management actions).

19. four management functions:
planning, organization, motivation and
control.
Informational role is to collect information
about the internal and external
environment, its distribution in the form
of facts, regulatory systems and
explanation of the policies and the main
goals of the organization.

20. 6. The necessary skills and quality
manager
The manager should have a variety of
management skills and abilities.
They are usually combined into three
groups:
conceptual, communication,
technical.

21. Principles of Management
“ Management is the art of getting things done through
and with an informally organized group”
Characteristics of Management
• Art as well as science
• Management is an activity
• It is a continuous process
• It is a dynamic process
• It is aimed at achieving pre-determined objectives
• Organized activity
• It is a discipline

22. ……….CONT
• It is all pervasive
• Team-spirit
• It involves decision-making
• It is innovative
• It is different from ownership
• Universal application
• Management is a profession
• It has different operational levels

23. Functions of Management
• Planning
• Organizing
• Staffing
• Directing
• Coordinating
• Motivating
• Controlling
• Innovation
• Decision-making
• Communication

24. Importance of Management
• Optimum utilization of resources
• Effective functioning of the business
• Integrates various interests
• Coordination and team-spirit
• Cordial industrial relations
• Reduces turnover and absenteeism
• Accomplishment of group goals
• Stability, Prosperity, expansion

25. Managerial Skills

26. • Conceptual – be able to see the “big picture” of
the situation. Ability to arrive at ideas, create a
vision and plan for the future.
(the ability to analyze and diagnose a situation and find
the cause and effect.)
• Technical – possess specific knowledge or have a
specialized expertise.
(the job-specific knowledge required to perform a task.
Common examples include marketing, accounting, and
manufacturing)
• Human – be able to work well with others both
individually and in a group setting.
(the ability to understand, alter, lead, and control
people’s behavior)

27. • Conceptual Skills-
Vision, imagination and intelligence to set appropriate organizational goals for the
organization.
• Human relations skills-
Interaction, motivation, guidance, self evaluation, coordination.
• Technical skills-
Knowledge, competence, techniques.
• Diagnostic skills-
Analyze, examine and determine solution to management problems.
• Analytical skills-
Logic, rationality, problem solving, evaluate alternatives.
• Communication skills-
Soft skills to deal with employees, suppliers, Govt., outside world.
• Leadership skills-
Inspire, respect, lead, motivate
• Administrative skills-
Framing policies, plans, conflict free working

28. Why Study Management?
• The Value of Studying Management
–The universality of management
• Good management is needed in all organizations.
–The reality of work
• Employees either manage or are managed.
–Rewards and challenges of being a manager
• Management offers challenging, exciting and
creative opportunities for meaningful and fulfilling
work.
• Successful managers receive significant monetary
rewards for their efforts.

29. Who Are Managers?
*Manager
–Someone who works with and
through other people by
coordinating and integrating their
work activities in order to
accomplish organizational goals.

30. Classifying Managers
• First-line Managers
– Are at the lowest level of management and manage
the work of non-managerial employees.
• Middle Managers
– Manage the work of first-line managers.
• Top Managers
– Are responsible for making organization-wide decisions
and establishing plans and goals that affect the entire
organization.

31. manager job titles are:
*Team or area leader
*Front-line supervisor
*Mid-level manager
*Department head
*Vice-President
*President
*Officer, Chief Officer
*Managing Director
*Deputy Officer

32. If we look at the question, “what
does a manager do?” the answer is
not straightforward!

33. Management functions
• Planning – managers have to plan what they want to
accomplish and develop specific actions in order to reach
those goals.
• Organizing – managers must figure out how many
people are needed to get the jobs and tasks done. They
also determine how the job flow happens (who does what).
Generally, we talk about what kind of structure will be put
in place to get these tasks done.
• Leading – managers must supervise, lead, motivate,
train, coach, guide, hire and assess employees. There are a
lot of ways that these can be done.
• Controlling – managers must monitor what’s going on
in their area, to make sure that the goals or objectives are
going to be met. If the goals are not going to be met, then
corrective action can be taken.

34. Henry Mintzberg.
• One of the most important pieces of research into
the job of a manager comes from Henry
Mintzberg. He is a Canadian academic and
researcher who has studied management for
years. He believes that a manager’s work is never
really done!
• He was the person who categorized the
various roles that a manager plays in the
organization. The following chart outlines
Mintzberg’s categories and roles. It also gives brief
examples of the roles.

35. A quote from “Peter Drucker”
When I first began to study management, during and
immediately after World II War, a manager was
defined as ‘someone who is responsible for the work
of subordinates’. A manager, in other words, was a
‘boss’, and management was rank and power … But
by the early 1950s, the definition had already changed
to ‘a manager is responsible for the performance of
people’. Now we know that this also is too narrow a
definition.
The right definition is “a manager is responsible for the
application and performance of knowledge”.

36. Planning in the organization
Planning in the organization
Competitive advantage
Strategic planning process
Grand Strategy
Mission statements
Action/implementation plan

37. Using the example from the previous section, here is
a sample of their action plan
What?
 Develop new products. Specific goal - develop one new product by the end
of six months.
 Cross-train present employees.
Who?
 Representatives from design, manufacturing and
 sales department form a team to determine market
 needs and manufacturing capability.
 HR Administrator.
How?/When?
 Prototype presented to management by the end of four months for
approval. Production in place at the end of six months.
 Training plan presented to management by the end of one month.
Training started in six weeks and completed by the end of three months.

38. Organizing the organization
Structure follows strategy
Bureaucracy
“Rules” of a bureaucracy
Centralized vs. decentralized
Disadvantages of a bureaucracy
Authority – staff and line
Line departments/line authority
Staff departments/staff authority
The rise of the “group” structure
Not-for-profit note

39. Leading – Calm Seas case
• Calm Seas has a strong emphasis on quality
in the products they make – indeed they have
made it part of their competitive advantage.
• The organization has a curious mixture of a
bureaucratic structure and a team structure.
In the production area, they have
implemented a team structure, as outlined in
the previous section.

40. Leading in the organization
Leader vs. manager
• The first thing we have to do is to separate a
“leader” from a “manager
• Manager is somebody who is responsible for
directing and controlling the work and staff of
a business, or of a department within it.
Leader is somebody whom people follow.

41. Leadership theories
• This is different from soliciting input and then the
manager choosing to do something else. As long as the
employees are listened to and their opinions truly considered,
if the manager then chooses another option, the manager can
still be described as democratic. The big difference comes
down to listening.
• After all, in today’s business world, the description of the
autocratic manager doesn’t “sound” as good as the other
styles. “Autocratic” itself is a term that does not sound
positive.
• A manager can say that they have a democratic style and
may believe that they are democratic managers but it’s the
actions that count.

42. Knowing what kind of manager/leader to be
For example, an autocratic style would often be wise to use:
 In a crisis or emergency
 When there is a legitimate, unforeseen rush needed for production
 Sometimes with untrained, unskilled employees

By contrast, a participative style would often be wise to use:

 When the outcome is more important to the employees than the
leader
 When the employees know more about the issue than the leader
 When the employees can improve and develop their skills
 When lots of creativity is needed

43. Motivation Theories and Concepts
motivate means:
“give somebody incentive” or “make
somebody willing”.

44. Intrinsic and extrinsic motivation
One of the first distinctions to be made,
which is a concept which also arises in
some of the following motivation
theories, is the distinction between
intrinsic and extrinsic motivation.

45. Content Theories of motivation
Maslow’s Hierarchy of Needs:
*5 levels, physiological, security, social, esteem,
self-actualization
* each level must be substantially satisfied before
moving to the next
* refinements of Maslow’s theory today include a
recognition that individuals could be on more
than one level at a time and that individuals could
move up and down the hierarchy overnight.

46. McGregor’s Theory X and Theory Y
* actually defines how managers view employee
motivation Y
* Theory X manager believes that employees need
to be controlled, coerced and bribed.
* Theory Y manager believes that people are willing
to work, are creative and independent and self
directed when motivated properly.
* Concept of “self-fulfilling prophecy” may enter in
here. If manager follows Theory Y beliefs, does
that create Theory Y employees?

47. Herzberg’s Motivation – Hygiene Theory
* hygiene factors are extrinsic to the work (work
environment, relationship with peers, supervisor,
and salary). If absent, result is dissatisfaction; if
present, result is neutrality.
* job satisfiers are intrinsic to the work itself
(achievement, recognition, nature of the work,
responsibility). If absent , effect is neutral; if
present, result is motivation.
* both hygiene and motivators must be present for
motivation to occur. Can’t have motivation if
hygiene issues are not dealt with.

48. Control in the organization
What does “control” mean?
We should instead think of the term “monitor”
when we think of controlling in the
organization.
The question becomes, “what do we want to
monitor?” Or, “what do we want and need to
keep track of?”

49. What kinds of controls?
Traditional financial control measures are ratios such as
liquidity, leverage, activity and profitability –
all of these are indicators of financial performance.
What?
• Develop new products. Specific goal - develop one new product by the end of six
months.
• Cross-train present employees.
Who?
• Representatives from design manufacturing and sales department form a team to
determine market needs and manufacturing capability
• HR Administrator.
How?/When?
• Manager by the end of Prototype presented to four months for approval.
Production in place at the end of six months.
• Training plan presented to management by the end of one month. Training started
in six weeks and completed by the end of three months.

50. Skill Type Needed by Manager Level
• Management Challenges
• Increasing number of global organizations.
• Building competitive advantage through superior
efficiency, quality, innovation, and responsiveness.
• Increasing performance while remaining ethical
managers.
• Managing an increasingly diverse work force.
• Using new technologies.