BUA 325

Organizations
People working together and coordinate 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
Assets
People, Machinery, Raw materials, Information, skills, and Financial capital
Organizational Performance
Measures how efficiently and effectively managers use resources to satisfy customers and achieve goals
Efficiency
A measure of how well resources are used to achieve a goal.
Effectiveness
A measure of the appropriateness of the goals chosen and the degree to which they
are achieved
Henri Fayol
Managers control planning, organizing, leading, and controlling
Planning
Is the process used by managers to identify and select appropriate goals and courses of action for an organization
Organizing
Managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals
Organizational Structure
The outcome of organizing. This structure coordinates and motivates employees so that they work together to achieve goals
Leading
Managers determine direction, state a clear vision for employees to follow, and help employees understand the role they play in attaining goals
Controlling
Managers evaluate how well the organization is achieving its goals and takes corrective action to improve performance
First-line Managers
Responsible for day-to-day operation. They supervise the people performing the activities required to make the good or service
Middle Managers
Supervise first-line managers. They are also responsible to find the best way to use departmental resources to achieve goals
Top Managers
Responsible for the performance of all departments and have cross-departmental responsibility. They establish organizational goals and monitor middle managers
Restructuring
Top Management have sought methods to restructure their organizations and save costs
Downsizing
Eliminates jobs at all levels of management. Can lead to higher efficiency. Often results in low morale and customer complaints about service
Empowerment
Expand the tasks and responsibilities of workers
Self-Managed Teams
Give a group of employees responsibility for supervising their own actions
Mintzberg on “Managerial Roles”
A role is a set of specific tasks a person performs because of the position they hold
1. Interpersonal
2. Informational
3. Decisional
Interpersonal Roles
Roles managers assume to coordinate and interact with employees and provide direction to the organization
Figurehead Role
Symbolizes the organization and what it is trying to achieve
Leader Role
Train, counsel, mentor and encourage high employee performance
Liaison Role
link and coordinate people inside and outside the organization to help achieve goals
Informational Roles
Associated with the tasks needed to obtain and transmit information for management of the organization
Monitor Role
Analyzes information from both the internal and external environment
Disseminator Role
Manager transmits information to influence attitudes and behavior of employees
Spokesperson Role
use of information to positively influence the way people in and out of the organization respond to it
Decisional Roles
Associated with the methods managers use to plan strategy and utilize resources to achieve goals
Entrepreneur Role
Deciding upon new projects or programs to initiate and invest
Disturbance Handler Role
assume responsibility for handling an unexpected event or crisis
Recourse Allocater Role
assign resources between functions and divisions, set budgets of lower managers
Negotiator Role
Seeks to negotiate solutions between other managers, unions, customers, or shareholders.
Conceptual Skills
The ability to analyze and diagnose a situation and find the cause and effect
Human Skills
The ability to understand, alter, lead, and control people’s behavior
Technical Skills
The job-specific knowledge required to perform a task. Common examples include marketing, accounting, and manufacturing
Job Specialization
process by which a division of labor occurs as different workers specialize in specific tasks over time
F.W. Taylor on “Scientific Management”
The systematic study of the relationships between people and tasks for the purpose of redesigning the work process to increase efficiency
Scientific Management Principle #1
Time-and-motion study
Scientific Management Principle #2
Codify the new methods of performing tasks into written rules and standard operating procedures
Scientific Management Principle #3
Carefully select workers who possess skills and abilities that match the needs of the task, and train them to perform the task according to the established rules and procedures
Scientific Management Principle #4
Establish a fair or acceptable level of performance for a task, and then develop a pay system that provides a reward for performance above the acceptable level
Problems with Sci. Man.
-Workers did not share in the increased output
-Workers could purposely under-perform
-Specialized jobs became very boring, dull
The Gilbreths
-Break up and analyze every individual action necessary to perform a particular task into each of its component actions
-Find better ways to perform each component action
-Reorganize each of the component actions so that the action as a whole could be performed more efficiently-at less cost in time and effort
Administrative Management Theory
The study of how to create an organizational structure that leads to high efficiency and effectiveness
Max Weber
Developed the principles of bureaucracy as a formal system of organization and administration designed to ensure efficiency and effectiveness.
Weber’s Bureaucracy Rules
1) A manager’s formal authority derives from the position he holds in the organization.
2) People should occupy positions because of their performance, not because of their social standing or personal contacts.
3) The extent of each position’s formal authority and task responsibilities and it’s relationship to other positions should be clearly specified.
4) Authority can be exercised effectively when positions are arranged hierarchically, so employees know whom to report to and who reports to them.
5) Managers must create a well-defined system of rules, standard operating procedures, and norms so they can effectively control behavior
Rules
Formal written instructions that specify actions to be taken under different circumstances to achieve specific goals
Standard Operating Procedures (SOPs)
Specific sets of written instructions about how to perform a certain aspect of a task
Norms
unwritten, informal codes of conduct that prescribe how people should act in particular situations
Fayol’s Prin. of Management
-Division of Labor
-Authority and Responsibility
-Unity of Command
-Line of Authority
-Centralization
-Unity of Direction
-Equity
Division of Labor
allows for job specialization. jobs can have too much specialization leading to poor quality and worker dissatisfaction
Authority and Responsibility
both formal and informal authority resulting from special expertise
Unity of Command
Employees should have only one boss
Line of Authority
A clear chain of command from top to bottom of the firm
Centralization
The degree to which authority rests at the top of the organization
Unity of Direction
A single plan of action to guide the organization
Equiy
The provision of justice and the fair and impartial treatment of all employees
Order
The arrangement of employees where they will be of the most value to the organization and to provide career opportunities
Initiative
The fostering of creativity and innovation by encouraging employees to act on their own.
Discipline
Obedient, applied, respectful employees are necessary for the organization to function
Remuneration of Personnel
An equitable uniform payment system that motivates contributes to organizational success
Stability of Tenure of Personnel
Long-term employment is important for the development of skills that improve the organization’s performance
Subordination of Individual Interest to the Common Interest
The interest of the organization takes precedence over that of the individual employee
Esprit de corps
Comradeship, shared enthusiasm foster devotion to the common cause (organization).
Behavioral Management
The study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals
Mary Parker Follett
Concerned that Taylor ignored the human side of the organization
-Suggested workers help in analyzing their jobs
-If workers have relevant knowledge of the task, then they should control the task
The Hawthorne Studies
Studies of how characteristics of the work setting affected worker fatigue and performance at the Hawthorne Works of the Western Electric Company from 1924-1932
-Researchers found that regardless of whether the light levels were raised or lowered, worker productivity increased
Hawthorne effect
workers’ attitudes toward their managers affect the level of workers’ performance
Human relations movement
advocates that supervisors be behaviorally trained to manage subordinates in ways that elicit their cooperation and increase their productivity
Implications Of Hawthorne effect
Behavior of managers and workers in the work setting is as important in explaining the level of performance as the technical aspects of the task
The Hawthorne Studies Demonstrated:
the importance of understanding how the feelings, thoughts, and behavior of work-group members and managers affect performance
Douglas McGregor
proposed the two different sets of assumptions about workers
Theory X
assumes the average worker is lazy, dislikes work and will do as little as possible
Theory Y
assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes the work
William Ouchi
researched the cultural differences between Japan and USA
FOUND:
-USA culture emphasizes the individual, and managers tend to feel workers follow the Theory X model.
-Japan culture expects worker committed to the organization first and thus behave differently than USA workers
Theory Z
Combines Theory X and Y to make for long term employment
Management Scientific Theory
Contemporary approach to management that focuses on the use of rigorous quantitative techniques to help managers make maximum use of organizational resources to produce goods and services.
Quantitative Management
utilizes linear and nonlinear programming, modeling, simulation, queuing theory and chaos theory.
Operations management
techniques used to analyze any aspect of the organization’s production system
Total Quality Management (TQM)
focuses on analyzing input, conversion, and output activities to increase product quality
Management Information Systems (MIS)
provides information vital for effective decision making
Organizational Environment Theory
The set of forces and conditions that operate beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources
The Open-System View
A system that takes resources for its external environment and transforms them into goods and services that are then sent back to that environment where they are bought by customers
OSV: Inputs
the acquisition of external resources to produce goods and services
OSV: Converstions
transforms the inputs into outputs of finished goods and services
OSV: Output
the release of finished goods and services to its external environment
Closed System
A self-contained system that is not affected by changes in its external environment
“There is no one best way to organize”
Structures: Mechanistic
Authority is centralized at the top. (Theory X)
Structures: Organic
Authority is decentralized throughout employees. (Theory Y)
Mechanistic Structure
-Authority is centralized at the top.
-Emphasis is on strict discipline and order
-Employees are closely monitored and managed.
-Can be very efficient in a stable
environment.
Organic Structure
-Authority is decentralized throughout the organization.
-Departments are encouraged to take a cross-departmental or functional perspective
-Works best when environment is unstable and rapidly changing