Change
Govt. Bigness
Interference
Information
Globalization
ORGANIZATIONAL
Co
g
GOALS
i zi n
an
g
Or
INFORMATION Leading FINANCIA
RESOURCES L
RESOURC
ES
Management Functions
Planning Organizing
Management
Functions
Controlling Leading
Management Functions
‘
Planning Organizing
Management
Functions
Controlling Leading
Management Functions: Planning,
Organizing, leading & controlling
Planning
Setting performance
Objectives & deciding
How to achieve them
Organizing
Controlling Arranging tasks, people,
Measuring performance The
& other resources
& taking action to Management
To accomplish the work
Ensure desired results Process
Leading
Inspiring people to
Work hard to achieve
High performance
Interactive Nature of Management
Process
. PLANNING
Managers use logic
& methods to think
through goals &
actions
ORGANIZING
CONTROLLING
Managers arranged &
Managers make
allocate work authority
sure org is
& resources to achieve
moving towards org
organization goals
objectives
LEADING
Managers direct,
Influence, & Motivation
employees to perform
essential tasks
Managerial Functions
(Koontz)
Levels of Managers
Top
Managers
Middle
Managers
First-line
Managers
Operatives
Top Level Managers
Staff Managers
Line Managers
Technical Skills
Human Skills
Conceptual Skills
Technical Skill
Technical Skills
Human Skills
Conceptual Skills
Manager Roles
Interpersonal Roles
Informational Roles
Decisional Roles
Interpersonal Roles
All managers are required to perform duties
that are ceremonial and symbolic in nature-
Interpersonal Roles. These are
Figurehead
Leader
Liaison
Informational Roles
Informational Roles-receiving and collecting
information from organizations and
institutions their own. These roles are
Monitor
Disseminator
Spokesperson
Decisional Roles
These roles are the major part of manager’s
responsibilities. They include
Entrepreneur
Disturbance Handler
Resource Allocation Role
Negotiator
Management Seeks Efficiency &
Effectiveness
Means: Ends:
Efficiency Effectiveness
Goals
Low High
Waste attainment
Planning
Strategic Planning
Tactical Planning
Operational Planning
Mangers and Planning
Objectives
|
V
Situation Analysis
|
V
Strategy Formulation
|
V
Implementation
|
V
Control
Organizational Mission
Concern for survival: What is the organization’s
commitment to economic objectives?
Customers: Who are the organization’s
customers?
Products/Services: What are the organization’s
major products or services?
Location: Where does the organization
compete?
Organizational Mission
Technology: What is the firm’s basic
technology?
Philosophy: What are the basic beliefs,
values, aspirations and philosophical
priorities of the organization?
Self-concept: What are the organization’s
major strengths and competitive
advantages?
Organizational Mission
Forecasting
Breakeven Analysis
Gantt Chart
Delphi Technique
Barriers to Planning
Inappropriate Goals
Complex Environment
Resistance to Change
Constraints
Information Deficiency
Benefits of Goals
Increase Performance
Clarify Expectations
Increase Motivation
Levels of Goals
Middle Management
Tactical Goals------Tactical Plans
First Level
Management Operational Goals ---------Operational Plans
Levels of Goals
Strategic Goals: Broadly defined targets or
future end results set by top management
Tactical goals: Targets or future end results
usually set by middle management for
specific departments or units
Operational goals: Targets or future end
results set by lower management that
address specific measurable outcomes
required from the lower levels
How Goals Facilitate Performance
Job Knowledge
Task
and Ability
Complexity
Goal Commitment:
•Supervisory Authority
•Peer & group Pressure
•Public Display Situational
Knowledge
•Expectations of Success Constraints
of results
•Incentives & Rewards (tools, materials
(or feedback)
•Participation and Equipment
Characteristics of Goals
SMARTER
Specific
Measurable
Acceptable/Attainable
Realistic/Relevant
Timeframe
Extending
Rewarding
Strategy
Programmed decisions
Nonprogrammed decisions
Types of Decisions
Programmed Decisions Nonprogrammed Decisions
Type of problem Type of problem
Frequent, repetitive, routine, Novel, unstructured, much
much certainty regarding uncertainty regarding cause
cause and effect and effect relationship.
relationship. Procedures
Procedure
Necessity for creativity,
Dependence on policies, intuition, tolerance for
rules, and definite ambiguity, creative problem
procedures. solving.
Examples Examples
Business, University, Business, University,
Healthcare. Healthcare.
Conditions of Decision-making
Certainty
Risk
Uncertainty
Barriers to Effective Decision
Making
Psychological biases
– Illusion of control
– Farming effect
– Discount the future
Time pressures
– Real time information
– Involve people more effectively and efficiently
Social realities
Decision-making Process
Problem Identification
Identification of Decision Criteria
Allocating Weights to Criteria
Generating Alternative Solutions
Evaluating Alternatives
Making the Choice
Implementation of Decision
Evaluating the Decision
Decision Making Process
Allocation of
Problem Identification of Weights to Development of
Identification Decision Criteria Criteria Alternatives
Anex Anex
Haji & sons Haji & sons
Linkers Linkers
Evaluation
Hassan Bro.
Hassan Bro. Hassan Bro. of Decision
Globe Inn Globe Inn Effectiveness
Organizing
Options for
Departmentalization
Market-
Matrix
Channel
Geography
Functional Organization
President
President
President
President
North America
Material
Human
Production Finance Marketing &
Resource
Procurement
Marketing
Project A Production Finance Materials HR
Grp
Manager Grp Grp Grp Grp
Reward Power
Coercive Power
Legitimate Power
Expert Power
Referent Power
Sources of Power
Reward Power
It is the ability to reward another person for
carrying out orders which may be expressed or
implied
Coercive Power
The negative side of reward power, it is the ability
to punish another person
Legitimate Power
It is the lawfully entitled ability to exert influence
or force on other. It is also called formal authority
Sources of Power
Expert Power
It is based on the belief or understanding
that the influencer has specific knowledge
or relevant expertise that the influencee
does not
Referent Power
It is the desire of the influencee to be like or
identity with the influencer
Authority
Line Authority
Staff Authority
Functional Authority
Line Authority
In centralized organization
considerable authority, responsibility
and accountability remain at the top
of the hierarchy
Decentralization
In decentralized organization
considerable authority, responsibility
and accountability are passed down
the organizational hierarchy
Job Design
Job Enlargement
Job Enrichment
Job Rotation
Controlling
No
Establish Measure Does it match Take Corrective
Standards Performance standards Action
Yes
Do Nothing
Why Control Needed
Financial Controls
Budgetary Controls
Administrative Controls
Internal Control
Auditing
Levels of Controls
Strategic Control
Tactical Control
Operational Control
Stages of Controls
System Barriers
Behavioral Barriers
Political Barriers
Leadership
Vision
Communication
Motivation
Integrity
Patience
Influence
Decisive Persistent
Motivation
Self-Actualization
Needs
Self-Esteem
Needs
Social Needs
Security/Safety
Needs
Physiological
Needs
ERG Theory
Trait Contingency
Behavioral Integrative
Trait Approach to Leadership
(Low) (High)
(Low)
Initiating Structure
The Managerial Grid
(1,9) (9,9)
9
Management Management
8
7
6
(5,5)
5
Authority-
3
Impoverished Compliance
Management Management
2
(1,1) (9,1)
1
LOW 1 2 3 4 5 6 7 8 9
LOW Concern for production HIGH
Impoverish Managers (1,1)
Work
Environment
4-44
Contingency or Situational
Leadership Theory
It attempts to explain the appropriate
leadership style based on the leader,
followers, and situation. It holds that there
is no universal approach to leadership;
rather, effective leadership behavior
depends on situational factors that may
change over time. Current leadership
depends on three variables: the leader,
the led, and the situation
Situational Leadership Model
Task-
directed
-
Human
Relations
- I + Very
Very unfavorable favorable favorable
un favorable
Favorableness of the situation
4-65
Fiedler’s Contingency Model of
Leadership
Leader-member
relations
3
Variables of
Task structure
Situational
Favorableness.
Position power
The Future of Leadership
Theory
Transactional Leaders
Transformational Leaders
Charismatic Leader
Transactional Leader
3. Manage Transition
4. Institutionalize
the change.
Weber’s Charismatic
Leadership
Influence based on follower
perceptions that the leader is
endowed with the gift of divine
inspiration or supernatural qualities
Charisma and Leadership
It is the capacity to be heroic and
colourful. It steers the emotions of
people and capture their heart and
minds. Charismatic leadership can be
disadvantageous and dangerous
because people abdicate
responsibility and put on their leader
to take care of every problem.
Common Characteristics
Self-confidence
Vision
Ability to articulate
Strong convictions
Out of the ordinary behavior
Perceived as change agents
Environmentally sensitive
Self
Verbal Confidence
Skills Moral
Inspires
Visionary Conviction
Trust
Charismatic
Self High Risk
Promoting Leader Orientation
Characteristics
High Energy
Empowers
Action
Others
Orientation
Minimum Relational
Internal Power
Conflict Base
Strategies to Develop
Charismatic Qualities
Develop visionary skills
Develop an enthusiastic,
optimistic, energetic personality.
Ethical Charismatic Unethical
Leader .
Charismatic Leader
Uses power to serve Uses power only for
others personal gain or impact
Aligns vision with Promotes own personal
followers needs and vision
aspirations Censures critical or
Considers and learns opposing views
from criticism Demands own decision
Stimulates followers to be accepted without
think independently & to question
question the leaders One way communication
view
Open, two way
communication
Ethical Charismatic Unethical
Leader .
Charismatic Leader
Coaches, develops,
and supports Insensitive to
followers; shares followers needs
recognition with
others Relies on convenient,
Relies on internal external moral
moral standards to
satisfy org & societal standards to satisfy
interests
self-interests
Team
Driver
Planner
Enabler
Exec
Controller
Technology Change
Govt. Diversification
Interference
HRM
Competition Globalization
Workforce Diversity
Organization Chart of HRM
Function
Vice President
HRM
Near or Operating
Economic
Technological Environment
Factors
Factors Partners
Customers
Clients ORGANIZATION
Suppliers
Political
Social Competitors Factors
Factors
Brain Teaser
Inputs Outputs
Raw materials, Product/ Transformation Control Products,
human resources, Service Process Processes services, &
capital (land, Design &
Facilities other (pollution)
buildings,
equipment),
technology
information.
Types of Operation
Function
Manufacturing Operations
Non-manufacturing or Service
Operations
Types of Manufacturing
Operations
Make to Stock Producers
Make to Order Producers
Assemble to Order Producers
Production Management
Methods
Job Shops
Repetitive or Process Manufacturing
Batch Manufacturing
Productivity