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Principles of Management
Terms in this set (61)
Figuring out what ought to be done and doing whatever it takes, ethically, to get it done correctly.
The Management Process
Consists of the functions of planning, organizing, staffing, directing, and controlling.
The Planning Function
The part of the management process in which the organization defines its purpose or mission, establishes its goals, and forecasts the future environments, opportunities, challenges and threats that the organization will have to face.
The Organizing Function
Has to do with dividing the work that needs to be done, grouping the human and other resources, establishing a structure of authority and responsibility, and devising means for coordinating the various parts.
Staffing, Personnel Management, or Human Resources Management
Puts real people into the organization structure. This field is one of the major subdivisions of the academic discipline of management.
The second major subdivision in the management field. Concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services.
Directing or Leading
Includes guiding and influencing people to seek organizational objectives.
Making sure that things are being done the way you want. The reverse side of planning because in this function you measure and observe how much actual performance is deviating from plans.
Top management or upper management
Positions such as chief executive officer, the president, the vice presidents.
Positions such as district manager, plant manager, base commander, shift superintendent, division director, sales manager.
Positions such as suction head, crew chief, foreman, head nurse, department head.
Three types of skills involved in managerial work
In general, the amount of time and the percentage of the job involved in [this] is the highest for the first-line management, somewhat less at middle levels, and smallest at top management.
Generally only a fraction of the skills required at lower levels, increase in importance with middle management and become of great importance at top management levels.
Include figurehead, leader, and liaison.
Include monitor, disseminator, and spokesperson.
Entrepreneur, disturbance handler, resource-allocator, and negotiator.
Multi-national firms (MNFs) or Multi-national corporations (MNCs)
Worldwide enterprise is an organization that owns or controls production of goods or services in one or more countries other than their home country. It can also be referred as an international corporation, a "transnational corporation", or a stateless corporation.
Usually a name given to a company that specializes in a single product—such as Coca-Cola was at one time in its history or an oil company.
The building of a hotel in another country.
Buying stock in companies from other countries.
The law permits us to pretend that this thing is a real human being that has the rights of a human being. It can enter into contracts, collect debts and do any number of things that people can do. It is protected by laws just as people are. It is also immortal, and cannot die.
An arrangement in which two or more individuals share the profits and liabilities of a business venture. Various arrangements are possible: all partners might share liabilities and profits equally, or some partners may have limited liability. This ceases to exist with the death of a partner.
Anyone who can affect the organization or who can be affected by it. Some people who are concerned include stockholders, managers of the organization, and other employees, customers, suppliers, governments, competitors.
This is the idea that there is not necessarily one best way of managing that is suitable for every situation. We should then come up with the management approach or combination of approaches that is going to be the most effective and appropriate for our particular situation.
Has for main ideas or principles that it was associated with.
- The scientific study of work
First principle of Scientific Management
Involves using systematic scientific procedures, measurements, timing, and careful objective observation of the work; gathering information about how the work could be done most efficiently; and establishing that method of performing it.
Second principle of Scientific Management
Involves selecting the workers systematically and scientifically for the work to be done.
Third principle of Scientific Management
Involves training the workers in the methods developed by Scientific Management, providing them with incentives for working in the way that has been established as best and giving them enthusiastic and cooperative leadership support.
Fourth principle of Scientific Management
Involves dividing the work between management and the workers. The managers would do the analysis and planning, figure out how the work should be done, do the setups and the scheduling. The workers would do the manual work itself, essentially doing what they were told.
Classical Management or administrative management
Concerned with the design and management of an organization.
Fayol's 5 Primary Functions of Management
Fayol's First Primary Function of Management
Planning - Management must plan and schedule every part of industrial processes.
Fayol's Second Primary Function of Management
Organizing - In addition to planning a manufacturing process, management must also make certain all of the necessary resources (raw materials, personnel, etc.) came together at the appropriate time of production.
Fayol's Third Primary Function of Management
Commanding - Management must encourage and direct personnel activity.
Fayol's Fourth Primary Function of Management
Coordinating - Management must make certain that personnel works together in a cooperative fashion.
Fayol's Fifth Primary Function of Management
Monitoring - Manager to evaluate and ensure that personnel follow management's commands.
Henri Fayol's 14 Principles of Management
1. Division of Work
2. Authority and Responsibility
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual Interest
8. The Degree of Centralization
9. Scalar Chain
12. Stability of Tenure of Personnel
14. Esprit de Corps
Division of Work (1st Principle - 14 Principles of Management)
In practice, employees are specialized in different areas and they have different skills. Different levels of expertise can be distinguished within the knowledge areas (from generalist to specialist).
Authority and Responsibility (2nd Principle - 14 Principles of Management)
In order to get things done in an organization, management has the authority to give orders to the employees. Of course with this authority comes responsibility.
Discipline (3rd Principle - 14 Principles of Management)
About obedience. It is often a part of the core values of a mission and vision in the form of good conduct and respectful interactions.
Unity of Command (4th Principle - 14 Principles of Management)
An individual employee should receive orders from one manager and that the employee is answerable to that manager.
Unity of Direction (5th Principle - 14 Principles of Management)
About focus and unity. All employees deliver the same activities that can be linked to the same objectives. All activities must be carried out by one group that forms a team. These activities must be described in a plan of action.
Subordination of Individual Interest (6th Principle - 14 Principles of Management)
The primary focus is on the organizational objectives and not on those of the individual. This applies to all levels of the entire organization, including the managers.
Remuneration (7th Principle - 14 Principles of Management)
Motivation and productivity are close to one another as far as the smooth running of an organization is concerned.
There are two types of [this] namely non-monetary (a compliment, more responsibilities, credits) and monetary (compensation, bonus or other financial compensation).
The Degree of Centralization (8th Principle - 14 Principles of Management)
Implies the concentration of decision making authority at the top management (executive board). Sharing of authorities for the decision-making process with lower levels (middle and lower management), is referred to as decentralization by Henri Fayol.
Scalar Chain (9th Principle - 14 Principles of Management)
There should be a clear line in the area of authority (from top to bottom and all managers at all levels).
Order (10th Principle - 14 Principles of Management)
According to this principle of the 14 principles of management, employees in an organization must have the right resources at their disposal so that they can function properly in an organization.
Equity (11th Principle - 14 Principles of Management)
Employees must be treated kindly and equally. Employees must be in the right place in the organization to do things right. Managers should supervise and monitor this process and they should treat employees fairly and impartially.
Stability of Tenure of Personnel (12th Principle - 14 Principles of Management)
Represents deployment and managing of personnel and this should be in balance with the service that is provided from the organization.
Initiative (13th Principle - 14 Principles of Management)
Employees should be allowed to express new ideas. This encourages interest and involvement and creates added value for the company. Employee initiatives are a source of strength for the organization. This encourages the employees to be involved and interested.
Esprit de Corps (14th Principle - 14 Principles of Management)
Managers are responsible for the development of morale in the workplace; individually and in the area of communication. [This] contributes to the development of the culture and creates an atmosphere of mutual trust and understanding.
Human relations or behavioral perspective
Associated with a famous set of studies called the Hawthorne Studies.
Started in the mid 1920s and ran to the beginning of World War II. Conducted by and at the Western Electric Company Hawthorne plant in Cicero, Illinois. The management theorists associated with this are Elton Mayo and Fritz Roethlisberger, both of the Harvard Business School.
The Illumination Studies
The first part of the Hawthorne Studies, went on for several years and was conducted in the spirit of Scientific Management. It involved attempting to determine the exact amount of illumination that was best for doing any particular kind of work.
The Hawthorne Effect
Performance improves simply because you are investigating it.
Has two essential elements. First, it entails structuring an organization into a hierarchy. Secondly, the organization and its members are governed by clearly defined rational-legal decision-making rules.
You followed orders and gave respect to someone simply because that was the way you had been brought up; or he was the king or the noble and that was what you were supposed to do.
The leader is followed because of the magnetism, the charm, the respect, the admiration, or even reverence that he engenders in people. In an extreme form, the followers see the leader as a holy person, maybe even as a prophet or a god.
The basis of a bureaucracy. People are recruited to the organization and assigned to jobs based not on who they know or who their relatives are, but on the basis of expertise, training, experience, and examinations.
A system of jurisdictions in which authority and responsibility are carefully specified. There is specialization.
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