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General Management Theory

scientific management: lower levels
General Management: broader theories for all levels of manangement

Henri Fayol

General Management Theory
1. Engineer, manager of large French mining business
2. Basic functions of a manager (where we got the 4 functions of management)
A. Panning
B. Organizing
C. Commanding
D. Coordinating
E. Controlling
3. Management- a 'process'
4. 'Universality' of management principles
5. skill to be learned-not an inherent talent
6. Look at organization from top down, not shop level up like Taylor

Chester Barnard

General Management Theory
1. Bell Telephone
2. Manager's Key Tasks:
A. Cooperation
B. Common purpose
C. Communication
D. Goals
E. Motivation
3. The function of the excutive

Hawthorne Effect

A. Attention- benefits
B. Improperly designed study
-workers not motivated solely by $
Personal, social factors affect motivation
-need to study quality of supervision and management
-need to study informal work groups and their influence on employee motivation and productivity

Elton Mayo

"father" of behavioral school

Management Science- Operations Research

computer analysis of complex problems

Triangular Management

-Three approaches to solve a management problem
A. Classical- scientific management problem
B. Behavioral- human side
C. Management Science- operations research- computer analysis of complex problems


-Goals, targets, desired end results
-A specific commitment to achieve a measurable result within a given time frame

Objectives are important because

1. Targets
2. Guide for decision making
3. Measurement of performance evaluation
4. Encourage commitment
5. Source of motivation
6. Guide for efficiency


All organizations should be working towards the same goals

Guide for decision making

one key task is making decisions, make decisions based on your goals

Measurement of performance evaluation

write goals to get the job done

encourage commitment

have employees write most of their own goals

source of motivation

management cannot make you do something, you have to want something to achieve it

Organizational objectives

prioritize, rank goals in order of importance

personal objectives

goals of individuals within the organization. Many personal goals will not be identical with goals of organization

Areas of businesses it is important to set objectives

Many groups (internal & external) influence a firm- firm usually has many objectives and many types of objectives to work on. The managers in a business should have a balancing act to be able to set objectives to improve a business

Mission Statement

specifies key organizational values and helps define the organizations special place in the economy or culture. Focus point for planning.

Why is the mission statement important in the organization

It is constantly revised and states what the purpose of the company is


the process of
A. Determining Objectives
B. Setting up the courses of action (plans) needed to obtain these goals

Why do planners need to be Reactive

if something happens in the internal or external environment make sure to act responsibly

why do planners need to be Flexible

willing to change and be open to new ideas

Contingency Plans

means pursuing goals, bridging the gap between org's current state & future desired state. Determine what might happen in the future if certain actions are followed

Planning is so important because

1. helps enterprises succeed
2. provides direction & a sense of purpose
3. helps managers cope with change & future
4. employee involvement

Managers resist spending time on the planning function because:

1. many functions
2. immediate problems
3. hard work/ time
4. measure results
5. thinking/ paper work

3 types of planning

1. strategic
2. intermediate
3. tactical


long range or long term plans, plans that deal with more than 1 year into the future, middle to upper management


1-5 years of management


short term or range planning, plans for current operating year, lower, middle & upper levels of management

The Planning Process

1. Stating Organizational Objectives
2. List alternative ways of reaching organizational objectives
3. developing premisis upon which each alternative is based
4. choose the best alternative for reaching objectives
5. develop plans to pursue chosen alternative
6. put plans into action- implement
7. evaluate- control


assumptions about what might happen in the future

internal and external environments are important to planners because:

they take advantage of opportunities and protect the organization

Top managements primary responsibilities in relation to planning are

final responsibility and fire-fighting.


immediate problems today

Qualities of a good planner

someone already with the company & experience in the industry you're hiring for & has conceptual skills (Big Picture) and looks closely at internal and external environment

Duties of a planner

helping management carry out plans

Characteristics of a good plan

dealing with the past & present, forecast-prediction of the future, rational or real information, plans should be in writing & very specific, and plans must list strengths and how to over come weakness

Decision Making

the process of evaluating alternatives & making a choice from among them

personal decisions

only has to do with one person

professional decisions

visibility, impact


(programmed) procedures, policies, rules


(non-programmed) unique, not common, more people are impacted, resources & time

Types of decisions primarily handled by each level of management

Top- non-routine
Middle- routine
Middle- non-routine
Lower- routine

Decision-making process

1. Awareness of a problem
2. State the problem
3. Develop alternatives
4. Evaluate Alternatives
5. Choose & implement the best decision
6. Evaluate the decision

What does "state the problem- not the symptom" mean

to state the problem not how it occurred


creating alternatives

Two factors that affect the decision making process are

1. Risk
2. Time

Complete Certainty

Decision makers know exactly what the outcome of their decision will be (no risk)

Complete Uncertainty

Have no idea what the certainty will be (risk)

Risk Condition

Decision makers have some idea of what the outcome will be about their alternative decisions

Advantages of Group decision making

-more knowledge about the problem
-different points of view on the problem
-more alternatives identified
-better understanding of the problem
-greater acceptance on final decision

Disadvantages of Group decision making

-premature decisions
-negative social pressure
-individual domination
-interference of personal goals

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