Licensed Real Estate broker

What Is Management?
The planning, organizing, leading,
and controlling of human and other
resources to achieve organizational
goals efficiently and effectively.

Achieving High Performance:

A Managers Goal
Organizational performance is a measure of how
efficiently & effectively a manager uses
resources to satisfy customers & achieve
organizational goals.
Efficiency a measure
of how well or how
productively resources are used to achieve a
goal.
Effectiveness a measure of the appropriateness
of the goals an organization is pursuing and of
the degree to which the organization achieves
those goals.

Efficiency, Effectiveness, & Performance in

an Organization
EFFICIENCY
LOW

E
F
F
E
C
T
I
V
E
N
E
S
S

Low efficiency/
High effectiveness

HIGH

Manager chooses the right goals to

pursue, but does a poor job of using
resources to achieve this goals.
Result :A product that customers want,
but that is too expensive for them to
buy.

Low efficiency/
High effectiveness

LOW

Manager chooses the wrong goals to

pursue & makes poor use of resources.
Result : A low-quality product that
customers do not want .

HIGH
High efficiency/
High effectiveness
Manager chooses the right goals to
pursue & makes good use of resources to
achieve this goals .
Result: A product that customers want at
a quality & price that they can afford.

High efficiency/
Low effectiveness
Manager chooses inappropriate goals,
but makes good use of resources to
pursue these goals.
Result : A high quality product that
customers do not want.

Managerial Functions
Planning
Choose appropriate
organizational goals &
courses of action to best
achieve those goals

Controlling

Organizing

Establish accurate
measuring systems to
evaluate how well the
organization has
achieved its goals

Establish task &

authority relationships
that allow people to
work together to
achieve organization
goals

Leading
Motivate, coordinate, &
energize individuals &
groups to work together
to achieve organizational
goals

Types of Managers
CEO
Top Managers
Middle Managers
First-line Managers

Levels of Management
First-Line Managers
a manager who is responsible for the daily supervision of non
managerial employees.
Middle Managers
a manager who supervises first-line managers and is responsible
for finding the best way to use resources to achieve organizational goals.
Top Manager
a manager who establishes organizational goals, decides how
departments should interact, & monitors the performance of middle
managers.
Top Management Team
a group composed of the CEO (chief executive officer), the COO
(chief operating officer), and the heads of the most important
departments.

Changes in Managerial Hierarchies

Restructuring
Downsizing an organization by eliminating the jobs of large
numbers of top, middle, & first-line managers & non managerial
employees.
Outsourcing
Contracting with another company, usually abroad, to have it
perform an activity the organization previously performed itself.
Empowerment
The expansion of employees knowledge, tasks, & responsibilities.
Self-managed Team
A group of employees who supervise their own activities and
monitor the quality of the goods & services they provide.

Managerial Roles Identified by

Mintzberg
DECISIONAL ROLES
Are closely associated with methods of managers use to plan
strategy & utilize resources.

INFORMATIONAL ROLES
Are closely associated with the tasks necessary to obtain &
transmit information & so have been dramatically impacted by IT.

INTERPERSONAL ROLES
Managers assume interpersonal roles to provide direction &
supervision for both employees & the organization as a whole.

Managerial Roles
Type of Role

1. DECISIONAL

Specific Role

Examples of Role
Activities

Entrepreneur

Commit organizational resources

to develop innovative goods &
services.

Disturbance Handler

Move quickly to take corrective

action to deal with unexpected
problems facing the organization
from the external environment.

Resource Allocator

Allocate organizational resources

among different functions &
departments of the organization;
Set budgets & salaries of middle
& first-level managers.

Negotiator

Work with suppliers, distributors,

&
labor unions
to reach
agreements about the quality &
price of input technical & human
resources.

Cont.
1. INTERPERSONAL

Figurehead

Outline future organizational

goals to employees at company
meetings;
open
a
new
corporate
headquarters building;
state the organizations ethical
guidelines & principles of behavior
employees.
Provide
an
example
employees to follow;

Leader

Liaison

for

give direct commands and orders

to subordinates;
make decisions concerning the
use of human & technical
resources.
Coordinate the work of managers
in different department;

Establish
alliances between
different organizations to share
resources to produce new goods &
services.

Cont.
1.

INFORMATIONAL

Monitor

Disseminator

Spokesperson

Evaluate the performance

of managers in different
functions & take corrective
action
to
improve
their
performance.
Inform
employees
about
changes taking place in the
external
&
internal
environments that may effect &
the organization;
Communicate to employees
organizations vision & purpose.
Launch a national advertising
campaign to promote new
goods & services;
Give a speech to inform the
local community about the
organizations future intentions.

Managerial Skills
CONCEPTUALIZE SKILLS
The ability to analyze & diagnose a situation & to distinguish
between cause & effect.

HUMAN SKILLS
The ability to understand, alter, lead, & control the behavior of
other individuals & groups.

TECHNICAL SKILLS
The job-specific knowledge & techniques required to perform an
organizational role.

COMPETENCIES
The specific set of skills, abilities, & experiences that allows one
manager to perform at a higher level than another manager in a
particular setting.

Challenges For Management in

a
Global Environment
GLOBAL ORGANIZATIONS
Organizations that operate the compete in more
than one country.

COMPETITIVE ADVANTAGE
The ability of one organization to outperform other
organizations because it produces desired goods or
services more efficiently & effectively than they do.

Building Blocks of Competitive

Advantage

Innovation

Competitive
advantage

Responsiveness

Quality

to customers

Building Competitive Advantage

INCREASING EFFICIENCY
INCREASING QUALITY
INCREASING SPEED, FLEXIBILITY, &
INNOVATION
INCREASING RESPONSIVENESS TO
CUSTOMERS

The Evolution of Management Theory

Organization Environment
Theory
Management Science Theory

Behavioral Management Theory

Administrative Management Theory

Scientific Management Theory

1890

1900

1910

1920

1930

1940

1950

1960

1970

1980 1990

2000

Scientific Management Theory

The systematic study of the relationships between
people & tasks for the purpose of redesigning the
work process to increase efficiency.
PRINCIPLES : Accdg. To F.W. TAYLOR
Study the way workers perform their tasks.
Codify the new methods of performing tasks into written
rules & standard operating procedures.
Carefully select workers who possess skills & abilities that
match the needs of the task.
Establish a fair or acceptable level of performance for a task
& then develop a pay system that provides a reward for
performance above the acceptable level.

Administrative Management Theory

The study of how to create an organizational
structure that leads to high efficiency & effectiveness.

The theory of Bureaucracy

Bureaucracy a formal system of organization &
administration designed to ensure efficiency &
effectiveness.
Authority The power to hold people accountable for
their actions & to make decisions concerning the use
of organizational resources.

Webers Principles of Bureaucracy

System of written
rules & standard
operating procedures
that specify how
employees should
behave.

Clearly specified
systems of task & role
relationships.

A Bureaucracy
should have a:

Selection & evaluation

system that rewards
employees fairly &
equitably.

Clearly specified
hierarchyof authority.

Fayols 14 Principle of Management :

Division of Labor
Authority & Responsibility
Unity of Command
Line of Authority
Centralization
Unity of Direction
Equity
Order
Initiative
Discipline
Renumeration of Personel
Stability of Tenure of Personnel
Subordinationation of Individual Interests to the Common Interest
Esprit de Corps

Principles....
Division of Labor To pointout the downside of too much
especialization.
Authority & Responsibility The power to hold people
accountable for their actions & make decisions concerning
the use of organizational resources.
Unity of Command A reporting relationships in which an
employee receives orders from, & reports to, only one
superior.
Line of Authority The chain of command extending from
the top to the bottom of an organization.
Centralization The concentration of authority at the top
of the managerial hierarchy.

Cont...
Unity of Direction The singleness of purpose that make possible
the creaton of one plan of action to guide managers & workers as
they use organizational resources.
Equity The justice, impartialit& fairness to which all
organizational members are entitled.
Order The methodical arrangement of positions toprovide the
organizationwith the greatest benefit & to provide employees
which career opportunities.

Initiative The ability to act on ones own, without direction from

a superior.
Discipline Obedience, energy application, & other outward
marks of respect for a superiors authority.
Esprit de Corps Shared feeling of comradership, enthusiam, or
devotionto a common cause among members of a group.

Behavioral Management Theory

The study of how managers should behave to motivate employees &
encourage them to perform at high levels & be committed to the
achievement of organizational goals.
The Hawthorne Studies & Human Relations:
Hawthorne effect the finding that a managers behavior or leadership
approach can effect workers level of performance.
Human relations movement - management approach that advocates the
idea that supervisors should received behavioral training to manage
subordinates in ways that elicit their cooperation & increase their
productivity.
Informal organization the system of behavioral rules & norms that
emerge in a group.
Organizational Behavior the study of the factors that have an impact on
how individuals & groups respond to & act in organization.

Management Science Theory by

Taylor
An approach to management that uses rigorous quantitative
techniques to help managers make maximum use of organizational
resources.
Branches:
Quantitative Management utilizes mathematical techniques.
Operations Management use to analyze any aspect of an organizations
production system to increase efficiency.
Total Quality Management (TQM) focuses on analyzing an
organizations input, conversion, & output activities to increase product
quality.
Management Information System design systems that provide
information about events occurring inside the organization as well as in
its external environment.

Organizational Environment Theory

The set of forces & conditions that operate beyond an
organizations boundaries but affect a managers ability to
acquire & utilize resources.
The Open Systems View
Open System a system that takes in resources from the external
environment & converts them into goods & services that are then
sent back to that environment for purchase by customers.
Closed System - a system that is self contained & thus not
affected by changes occurring in its external environment.

Entropy the tendency of a closed system to lose its ability to

control itself & thus to dissolve & disintegrate.
Synergy performance gains that result when individuals &
departments coordinate their actions.

Contingency Theory
The idea that the organizational structures & control
systems managers choose depend on are contingent
on characteristics of the external environment in
which the organization operates.
Mechanistic Structure An organizational structure in
which authority is centralize, tasks & rules are clearly
specified, & employees are closely supervised.
Organic Structure An organizational structure in which
authority is decentralized to middle & first line
managers & tasks & roles are left ambiguous to
encourage employees to cooperate & respond
quickly to the unexpected.

Enduring Characteristics :
Personality Traits
Enduring tendencies to feel, think, and act in certain ways.
The Big Five Personality Traits :

Extraversion The tendency to experience positive emotions & moods

& to feel good about oneself & the rest of the world.

Negative Affectivity The tendency to experience negative emotions

& moods, to feel distressed, & to be critical of oneself & others.

Agreeableness The tendency to get along well with other people.

Conscientiousness The tendency to be careful, scrupulous, &

persevering.

Openness to Experience The tendency to be original, have broad

interest, be open to a wide range of stimuli, be daring, and take risks.

Other Personality Traits That Affect

Managerial Behavior :

Locus of Control The tendency to locate responsibility for ones fate

within oneself.

External Locus of Control The tendency to locate responsibility for

ones fate on outside forces & to believe that ones own behavior has
little impact on outcomes.

Self-esteem The degree to which individuals feel good about

themselves & their capabilities.

Need for achievement - The extend to which an individual has a

strong desire to perform challenging tasks well & to meet personal
standards for excellence.

Need for affiliation The extend to which an individual is concerned

about establishing & maintaining good interpersonal relations, being
liked, & having other people get along.

Need for Power The extend to which an individual desires to control

or influence others.

Values, Attitudes, &

Moods and Emotions
Values : Terminal and Instrumental
Terminal Value a lifelong goal or objective
that an individual seeks to achieve.
Instrumental Value a mode of conduct that an
individual seeks to follow.

Terminal Values
A comfortable life
An exciting life
A sense of accomplishment
World at peace
A world of beauty
Equality
Family security
Freedom
Happiness
Inner Harmony
Mature Love
National security
Pleasure
Salvation
Self-respect
Social recognition
True friendship
Wisdom

Instrumental Values
Ambitious
Broad-minded
Capable
Cheerful
Clean
Courageous
Forgiving
Helpful
Honest
Imaginative
Independent
Intellectual
Logical
Loving
Obedient
Polite
Responsible
Self- controlled

Attitudes
An attitude is a collection of feelings and
beliefs.
Two most important attitudes :
1. Job Satisfaction The collection of feelings &
beliefs that managers have about their current
jobs.
2. Organizational Commitment The collection of
feelings & beliefs that managers have about
their organization as a whole.

Moods & Emotions

Mood A feeling or state of mind.
People who are high on extraversion are
especially likely to experience positive moods.
People who are high in negative affectivity are
especially likely to experience negative mood.
Emotions Intense, relatively short-lived feelings.

Emotional Intelligence - The ability to understand

& manage ones own moods & emotions and the
moods & emotions of other people.

Organizational Culture
The shared set of beliefs, expectations,
values, norms, & work routines that
influence the ways in which individuals,
group, & teams interact with one another
& cooperate to achieve organizational
goals.

The Role of Values & Norms in

Organizational Culture
Factors that maintain & transmit
organizational Culture.
Ceremonies

& rites

Values of
the founder

Organizational
culture

Socialization

Stories &
language

Culture & Managerial Action

Planning
Organizing
Leading
Controlling

The Nature of Ethics

Ethical Dilemma The quandary people find
themselves on when they have decide if they
should act in way that might help another
person or group even though doing so might
go against their own self-interest.
Ethics The inner guiding moral principles,
values, & beliefs that people use to analyze
or interpret a situation & then decide what is
right or appropriate way to behave.

Stakeholders & Ethics

Stake holders The people & groups
that supply a company with its
productive resources & so have a
claim on & stake in the company.

Types of Company Stakeholders

Stock
holders

Managers

Employees

Company

Suppliers &
Distributors

CommunitySo
ciety &
Nontion-State

Customers

Four Ethical Rules

Utilitarian Rule

Moral Rights Rule

Rules for Ethical Decision

Making

Practical Rule

Justice Rule

Rules :
Utilitarian Rule - An ethical decision is a decision that
produces the greatest good for the greatest number of
people.
Moral Rights Rule An ethical decision is one that best
maintains & protects the fundamental or inalienable
rights & privileges of the people affected by it.
Justice Rule An Ethical decision that distributes benefits
& harms among people & groups in a fair, equitable, or
impartial way.
Practical Rule An ethical decision is one that a manager
has no reluctance about communicating to people outside
the company because the typical person in a society
would think it is acceptable.

Ethics & Social Responsibility

Sources of Ethics
Societal
Ethics

Occupational
Ethics

Business
Ethics

Organizational
Ethics

Individual
Ethics

Ethics
Societal Ethics Standards that govern how members of a
society should deal with one another in matters involving
issues such as fairness, justice, poverty, & the rights of the
individual.
Occupational Ethics Standards that govern how
members of a profession, trade, or craft should conduct
themselves when performing work-related activities.

Individual Ethics Personal standards & values that

determine how people view their responsibilities to other
& how they should act in situation when their own selfinterest is at stake.
Organizational Ethics The guiding practices & beliefs
through which a particular company & its s managers view
their responsibility toward their stakeholders.

Approaches to Social Responsibility

Social Responsibility The way a
companys managers & employees view
their duty or obligation to make decisions
that protect, enhance, & promote the
welfare & well-being of stakeholders &
society as a whole.

Four Different Approaches

Obstructionist
approach

Low
social
responsibility

Defensive
approach

Accommodative

approach

Social Responsibility

Proactive
approach

High
social
responsibility

Approaches
Obstructionist Approach Companies & their managers
choose not to behave in a socially responsible way &
behave unethically & illegally.
Defensive Approach Companies & their managers
behave ethically to the degree that they stay within the
law & abide strictly with legal requirements.
Accommodative Approach Companies & their managers
behave legally & try to balance the interests of different
stakeholders as the need arises.
Proactive Approach Companies & their managers
actively embrace socially responsible behavior , going out
of their way to different stakeholder groups & utilizing
organizational resources to promote the interests of all
stakeholders.

The Increasing Diversity of the

Workforce & the Environment
Diversity
Differences among people in age,
gender, race, ethnicity, religion, sexual
orientation, socioeconomic background,
and capabilities/disabilities.

Sources of Diversity in the Workplace

Other
Charac
terisctic

Age
Age

Physical
Appearance

Gender
Gender

Race
Ethnicity

Experience

Race

Religion
Sexual Oreintation

Ethnicity

Education

Socio Economic background

Capabilitie/disabilities
Education

Capabilities/
Disabilities
Socio
Economic
background

Religion
Sexual
Orientation

Experience
Physical Apearence
Other Characteristics

The Ethnical Imperative to Manage

Diversity Effectively
Distributive Justice A moral principle calling for
the distributions, & other organizational
resources to be based on meaningful
contributions that individuals have made & not
on personal characteristics over which they have
no control.
Procedural Justice A moral principle calling for
the use of fair procedures to determine how to
distribute outcomes to organizational members.

What is Perception ?
Perception The process through which people select,
organize, & interpret what they see, hear, touch,
smell, & taste to give meaning & order to the world
around them.
Factors that Influence Managerial Perception:

Schema an abstract knowledge structure that is

stored in memory & makes possible the
interpretation & organization of information about a
person, event, or situation.
Gender Schema Preconceived beliefs or ideas about
the nature of men & women, their traits, attitudes,
behaviors & preferences.

Perception as a Determinant of Unfair

Treatment
Stereotype Simplistic & often inaccurate beliefs
about the typical characteristics of particular
groups of people.
Bias The systematic tendency to use information
about others in ways that result in inaccurate
perception.

Overt Discrimination Knowing & willingly

denying diverse individuals access to
opportunities & outcomes in am organization.

How to Manage Diversity Effectively

Steps in Managing Diversity :

Secure Top-Management Commitment

Strive to increase the accuracy of perceptions
Increase Diversity Awareness
Increase Diversity Skills
Encourage Flexibility
Pay close attention to how organization members are evaluated
Consider the numbers
Empower employees to challenge discriminatory behaviors,
actions, & remarks
Reward employees for effective managing diversity
Provide training utilizing a multipronged, ongoing approach
Encourage mentoring of Diverse employees

Sexual Harassment
Sexual harassment - seriously damages both the people
who are harassed and the reputation of the
organization in which it occurs.
Forms of Sexual Harassment :
Quid pro quo sexual harassment asking for or
forcing an employee to perform sexual favors in
exchange for some reward or to avoid negative
consequences.
Hostile work environment sexual harassment
Telling lewd jokes, displaying pornography, making
sexually oriented remarks about someones personal
appearance, & other sex-related actions that make
the work environment unpleasant.

The Nature of Managerial

Decision Making
Decision Making
The process by which managers respond
to opportunities & threats by analyzing
options
& making determinations
about specific organizational goals &
courses of action.

Process of Decision Making

Programmed Decision Making
Routine, Virtually automatic decision making
that follows established rules or guidelines.

Non Programmed Decision Making

Non routine decision making that occurs in
response
to
unusual,
unpredictable
opportunities & threats.

The Classical Model

Classical Decision Making Model
A prescriptive approach to decision making
based on the assumption that the decision
maker can identify & evaluate all possible
alternatives & their consequences & rationally
choose the most appropriate course of action.
Optimum Decision The most appropriate
decision in light of what managers believe to be
the most desirable future consequences for the
organization.

The Administrative Model

Administrative Model
An approach to decision making that explains why decision making is
inherently uncertain & risky& why managers usually make satisfactory
rather than optimum decision.
Three Important Concept :

Bounded Rationality cognitive limitations that constrain ones ability

to interpret , process , and act on information.

Incomplete Information
Ambiguous information Information that can be interpreted
In multiple and often conflicting ways.

Ambigous Information - Information that can be interpreted in

multiple & often conflicting ways.

Six Steps in Decision Making

Step 1

Recognize the need for a decision

Step 2

Generate alternatives

Step 3

Assess alternatives

Step 4

Choose among alternatives

Step 5

Implement the chosen alternatives

Step 6

Learn from feed back

General Criteria for Evaluating Possible Courses

of Action
Legal?
Ethical ?
Economical?
khkhkhkhkh
EE
Practical ?

Cognitive Biases and

Decision Making
The Four Sources of Bias :
Prior Hypothesis Bias A cognitive bias resulting from the
tendency to base decisions on strong prior beliefs even if evidence
shows that those beliefs are wrong.
Representativeness Bias A cognitive bias resulting from the
tendency to generalize inappropriate from a small sample or from
a single vivid event or episode.

Illusion of Control A source of cognitive bias resulting from the

tendency to overestimate ones own ability to control activities &
events.
Escalating Commitment A source of cognitive bias resulting from
the tendency to commit additional resources to a project event if
evidence shows that the project is falling.

Group Decision Making

Managers can improve the quality of group decision making
by using techniques such as:

Devilss Advocacy
Presentation of
chosen alternative

Dialectical Inquiry
Presentation of
alternative #1

Presentation of
Alternative #2

Critique of
chosen alternative

Debate between
alternatives

Reassessment of
chosen alternative
(Accept? Modify ? Reject?)

Reassessment of alternatives
(Accept #1 or #2 ?
Combine #1 and #2 ?)

Organizational Learning
and Creativity
Organizational Learning
The Process through which managers seek to improve
employees desire & ability to understand & manage the
organization & its task environment.
Learning Organization
An organization in which managers try to maximize the
ability of individuals & groups to think & behave
creatively & thus minimize the potential for organizational
learning to take place.

Creativity
A decision makers ability to discover original & novel
ideas that lead to feasible alternative courses of action.

Serges Principle for Creating

a Learning Organization
1. Develop
personal
mastery

2. Build complex
challenging
mental models
5. Encourage
systems
thinking

4. Build
shared
vision

3. Promote
team
learning

Promoting Group Creativity

Brainstorming is a group problem-solving technique in which
managers meet face to caf to generate a debate a wide variety of
alternatives from which to make a decision.
Nominal Group Technique a decision making techniques in
which group members write down ideas & solutions, read their
suggestions to whole group, and discuss & then rank the
alternatives.
Delphi Technique A decision- making technique in which group
members do not meet face-to-face but respond in writing to
questions posed by the group leader.

The Nature of the

Planning Process
Planning Identifying & selecting appropriate goals &
courses of action; one of the four principal functions of
management.
Strategy A cluster of decision about what goals to pursue,
what actions to take & how to use resources to achieve
goals.
Mission Statement A broad declaration of an organizations
purpose that identifies the organizations products &
customers & distinguishes the organization from its
competitors.

Three Steps in Planning

DETERMINING THE ORGANIZATIONS
MISSION & GOALS
Define the business
Establish major goals

FORMULATING STRATEGY
Analyze current situation and develop strategies

IMPLEMENTING STRATEGY
Allocating resources and responsibilities to achieve strategies

Levels & Types of Planning

CORPORATE-LEVEL PLAN

GOAL
SETTING

STRATEGY
FORMULATION

STRATEGY
IMPLEMENTAT
ION

BUSINESS-LEVEL PLAN

FUNCTIONAL-LEVEL PLAN

Corporate
mission &
goals

Divisional
goals

Corporate
level
strategy

Business
level strategy

Functional
level
strategy

Design of
corporate
structure
control

Design of
businessunit
structure
control

Design of
functional
structure
control

Functional
goals

WHO PLANS ?
In general, corporate-level planning is the
primary responsibility of top managers.

Why Planning is Important?

Useful way in decision making.
It gives the organization a sense of direction & purpose.
Helps coordinate managers to ensure that they pull in the
same direction.
Can be used as a device for controlling managers within
an organization.

Determining the Organizations

Mission & Goals
Defining the Business
Who are the customers?
What customer needs are being satisfied?
How are we satisfying customer needs?
Establishing Major Goals
Developing goals gives the organization a
sense of direction & purpose.

Formulating Strategy
Strategy Formulation Analysis of an organizations
current situation followed by the development of
strategies to accomplish its mission & achieve its
goals.
SWOT Analysis A planning exercise in which managers
identify organizational
( S ) strengths
(W) weaknesses, environment
(O) opportunities and
( T ) threat

Planning & Strategy Formulation

Corporate Level Strategy
A plan of action to manage the growth &
development of an organization so as to maximize
its long-run ability to create value.

SWOT Analysis
A planning exercise to
identify
strengths
&
weaknesses
inside
an
organization
&
opportunities & threats in
the environment

Business Level Strategy

A plan of action to take advantage of favorable
opportunities & find ways to counter threats so as
to complete effectively in an industry.

Functional Level Strategy

A plan of action to improve the ability of an
organizations departments to create value.

Formulating Functional Level

Strategies
Functional Level Strategy A plan that
indicated how a function intends to achieve
its goals.
It can lower the costs of creating value
It add value to a product by finding ways to
differentiate it from the products other
companies.

Planning & Implementing Strategy

Allocates responsibility for implementation
to appropriate individuals or group.
Drafts detailed action plans
Establishing a timetable
Allocates appropriate resources
Holds individuals or groups responsible for
the attainment of corporate ,divisional , &
function goals.

Designing Organizational Structure

Organizational Structure a formal system of
task & reporting relationships that
coordinates & motivates organizational
members so that they work together to
achieve organizational goals.
Organizational Design The process by which
managers make specific organizing choices
that result in particular kind of organizational
structure.

Factors Affecting Organizational

Structure
Organi
zational
Environm
ent

Techno
logy

Determine the design of

organizational structure

Strategy

Human
Resource

Grouping Tasks into Jobs :

Job Design The process by which managers
decide how to divide tasks into specific jobs.
Job Enlargement Increasing the number of
different tasks in a given job by changing the
division of labor.
Job Enrichment Increasing the degree of
responsibility a worker has over the his or
her job.

Grouping Jobs in Function & Divisions

Functional Structure An organizational
structure composed of all the departments
that an organization requires to produce its
good or services.
Divisional Structure An organizational
structure composed of separate business
units within which are the functions that
work together to produce a specific product
for a specific customer.

Coordinating Functions & Divisions

Allocating Authority to coordinate the activities
of people, functions and divisions.

Authority The power to hold people accountable

for their actions and to make decisions
concerning the use of organizational resources.
Hierarchy of Authority An organizations chain of
command, specifying the relative authority of
each manager.
Span of Control The number of subordinates
who report directly to a manager.

What is organizational Control ?

Controlling is the process whereby managers
monitor & regulate how efficiently &
effectively an organization & its members are
performing the activities necessary to
achieve organizational goals.

The Importance of Organizational

Control
It helps the managers obtain superior
efficiency, quality, responsiveness to
customers, & innovation.
It determines the quality to goods & services.
It can also help the organization more
responsive to their customers.
Controlling can raise the level of innovation
in an organization.

Control Systems and IT

Control Systems
Formal target-setting, monitoring, evaluation, &
feedback systems that provide managers with
information about how well the organizations
strategy and structure are working.
Three characteristics :
1. It is flexible enough to allow managers to
respond as necessary to unexpected events;
2. It provides accurate information & gives a true
picture of organizational performance;
3. It provides information in a timely manner.

Control & Information Systems

Was
developed
to
measure
performance at each stage in the
process of transforming inputs into
finished goods & services.

Three Types of Control

Input
stage

Feedforward
Control
(Anticipate
problems before
they occur

Conversio
n stage

Concurrent control
(Manage problems
as they occur)

Output
stage

Feedback
Control (Manage
problems, after
they have arisen)

Four Steps in Organizational Control

Establish the standards of performance, goals, or targets
against which performance is to evaluated

Measure actual performance

Compare actual performance against chosen

standards of performance

Evaluate the result & initiate corrective action if

the standard is not being achieved

Three Organizational
Control System
Type of Control

Output control

Behavior control

Organizational
Culture/clan control

Mechanism of Control
Financial measures of performance
Organizational goals
Operating budgets
Direct supervision
Management by objectives
Rules & standard operating
Values
Norms
Socialization

procedures

Output Control
Three main Mechanisms
Financial Measure of Performance
Profit ratios measure how the well the managers are
using the organizations resources to generate profits.
Return on Investment (ROI)
Liquidity ratios measure how well the managers have
protected the organizational resources to be able to meet
short-term obligations.
Leverage ratios to what extent have managers used
barrowed funds to finance investments.
Activity ratios measures how efficiently managers are
turning inventory over so that excess inventory is not
carried.

Organizational Goals
Organization wide Goal Setting
Corporate- level managers set goals for individual divisions that will
allow the organization to achieve corporate goals

Divisional managers set goals for each function that

will allow the division to achieve its goals

Functional managers set goals for each individual worker

That will allow the function to achieve its goals

Operating Budgets
A budget that states how the
managers
intend
to
use
organizational resources to achieve
organizational goals.

Behavior Control
Work to design the if managers also establish
control systems that allow them to to
motivate & shape employee behavior.
Three mechanisms:
1. Direct Supervision
2. Manage by Objectives (MBO)
3. Rules & Standard Operating Procedure

Bureaucratic Control
Control of behavior by means of a
comprehensive system of rules &
standard operating procedure.

Organizational Culture and

Clan Control
Organizational Culture The set of values, norms,
standards of behavior, & common expectations
that controls the ways in which individuals &
groups in an organization interact with one
another & work to achieve organizational goals.
Clan Control The control exerted on individuals &
groups in an organization by shared values,
norms, standards of behavior & expectations.

Organizational Change
Organization Change

The movement of an organization away

from its present state and toward some
desired future state to increase its
efficiency & effectiveness.

Organizational Control
and Change

Need to
improve
operations

Need to
respond to
new events

Managers must balance the need for an organization to improve the way it currently
operates & the need for it to change in response to new, unanticipated events.

Four Steps in the Organizational

Change Process

Assess the
need for
change
Recognize that
there is a problem.
Identify the
source of the
problem.

Decide on the
change to
make
Decide what the
organizations
ideal future would
be.
Identify obstacle
to change.

Implement the
Change
Decide whether
change will occur
from the top
down or from the
bottom up.
Introduce &
Manage change.

Evaluate the
change
Compare pre
change
performance
with post
change
performance.
Use bench
marking

Strategic Human Resource

Management
Human Resource Management
Activities that managers engage in to attract &
retain employees & to ensure that they perform
at a high level & contribute to the
accomplishment of organization goals.

Strategic Human Resource Management

The process by which managers design the
components of a human resource management
system to be consistent with each other, with
other elements of organizational architecture, &
with the organizations strategy & goals.

Components of a Human Resource

Management System
Recruitment
& selection

Labor
relations

Training
&
Devt.

Pay
And
benefits

Performance

appraisal &
feedback

Each component of an HRM system influences the others, and all five must fit together

Components of HRM
Recruitment & Selection
Training & Development
Performance Appraisal & Feedback
Labor Relations
The Legal Environment of HRM :
Equal employment opportunity The equal right
of all citizens to be opportunity to obtain
employment regardless of their gender, age,
race, country of origin, religion, or disabilities.

The Recruitment and

Selection System

Human
Resource
Planning

Determine Recruitment
And Selection Needs

Job
Analysis

The Selection Process

Backgrou
nd
informati
on
Referen
ces

Interviews

SELECTION

Performan
ce tests

Paper-andpencil

Physical
ability
tests

tests

Motivation & Performance

Motivation Psychological forces that
determine the direction of persons behavior
in an organization, a persons level of effort,
and a persons level of persistence.

Intrinsically motivated behavior Behavior that

is performed for its own sake.
Extrinsically motivated behavior Behavior
that is performed to acquire materials or
social rewards or to avoid punishment.

Training and Development

Training Teaching organization members how to
perform their current jobs and helping them
acquire the knowledge and skills they need to
be effective performers.
Development Building the knowledge and skills
of organization members so that they will be
prepared to take on new responsibilities and
challenges.
Needs Assessment An assessment of which
employees need training or development and
what type of skills or knowledge they need to
acquire.

Types of Training
Classroom Instruction The employees
acquire knowledge and skills in a classroom
setting.
On-the-Job Training Training that takes
place in the work setting as employees
perform their job tasks.

Types of Development
Classroom instruction

On-the-job Training
Varied Work Experiences
Formal Education

Performance Appraisal
and Feedback
Performance Appraisal
The evaluation of employees job performance
& contributions to their organizations.
Performance Feedback
The process through which managers share
performance appraisal information with
subordinates an opportunity to reflect on their
own
performance,
&
develop,
with
subordinates, plans for the future.

Types of Performance Appraisal

Trait Appraisals
Behavioral Appraisals
Result Appraisals
Objective Appraisal
Subjective Appraisal

Who Appraises Performance?

Supervisor

Potential
sources of
performance
appraisals

Peers

Self

Customers
or Client

Subordin
ates

The Nature of Motivation

Motivation Psychological forces that determine
the direction of a persons behavior in an
organization, a persons level of effort, and a
person level of persistence.
Intrinsically motivated behavior Behavior that is
performed for its own sake.
Extrinsically motivated behavior Behavior that is
performed to acquire material or social rewards
or to avoid punishment.
Outcome Anything person gets from a job or
organization.

Maslows Hierarchy of needs

Self-actualization needs

Esteem needs
Belongingness needs
Safety needs
Physiological needs

The Nature of Leadership

Leadership The process by which an
individual exerts influence over other people
& inspires, motivates, & directs their
activities to help achieve group or
organizational goals.
Leader An individual who is able to exert
influence over other people to help achieve
group or organizational goals.

Personal Leadership Style

The specific ways in which a manager
chooses to influence other peopleshapes the way the manager approaches
planning, organizing, & controlling .

Power: The Key to Leadership

Expert

Reward

Referent

Power

Coercive

Legitimate

Sources of Managerial Power

Legitimate Power The authority that a manager has
by virtue of his or her position in an organizations
hierarchy.
Reward Power The ability of a manager to give or
withhold tangible & intangible rewards.
Coercive Power The ability of a manager to punish
others.
Expert Power Power that is based on the special
knowledge, skills, & expertise that a leader possesses.
Referent Power Power that comes from
subordinates and coworkers respect, admiration,
and loyalty.

Empowerment: An Ingredient in
Modern Management
Empowerment Expanding employees tasks
and responsibilities.
Increases a managers ability to get things
done.
Increases workers involvement, motivation,
and commitment, and this helps ensure that
they are working toward organizational
goals.

The Behavior Model

Consideration - Behavior indicating that a
manager trusts, respects, and cares about
subordinates.
Initiating structure Behavior that managers
engage in to ensure that gets done,
subordinates perform their jobs acceptably,
and the organization is efficient and effective.

Contingency Models
of Leadership

Relationship-oriented leaders Leaders whose primary concern is to

develop good relationships with their subordinates and to be liked by them
Task-oriented leaders Leaders whose primary concern it to ensure that
subordinates perform at a high level.
Leader-member relations The extent to which followers like, and are loyal
to their leader ; a determinant of how favorable a situation is for leading.
Task structure The extent to which the work to be performed is clear-cut so
that a leaders subordinates know what needs to be accomplished and how
to go about doing it ; a determinant of how favorable a situation is for
leading
Position power The amount the legitimate, reward, and coercive power
that a leader has by virtue of his or her position in an organization ; a
determinant of how favorable a situation is for leading.

Transformational Leadership
Transformational Leadership Leadership that
makes subordinates aware of the importance
of their jobs and performance to the
organization and aware of their own needs
for personal growth and that motivates
subordinates to work for the good of the
organization.

Gender and Leadership

Female and male managers do not differ in
the leadership behaviors that they perform,
contrary to stereotypes suggesting that
women are more relationship-oriented and
men more task oriented.

Emotional Intelligence and

Leadership
The moods and emotions leaders experience
on the job, and their ability to effectively
manage these feelings, can influence their
effectiveness as leaders.

Communication and Management

Communication The sharing of information
between two or more individuals or groups
to reach a common understanding.
Good Communication is necessary for
managers to learn new about technologies,
implement them in their organizations, and
train workers in how to use them.

The Communication Process

Sender The person or group wishing to share
information.
Message The information that a sender wants to share.
Encoding Translating a message into understandable
symbols or language.
Noise Anything that hampers any stage of the
communication process.
Receiver The person or group for which the message is
intended.
Meduim The pathway through which an encoded
message is transmitted to a reciever.
Decoding interpreting and trying to make sense of a
message.

The Communication Process

Transmission Phase

Message

Encoding

Noise

Sender

Decoding by
sender

Medium

Meduim

Feedback Phase

Decoding by
reciever

Reciever

Encoding

Message

Face to Face Communication

Is the medium that is highest in information richness.
High
Information
richness

Face -to-face
Communication
Spoken communication
Electronically transmitted

Personally addressed written

communication

Low
Information
richness

Impersonal written
communication

Communication Skills
for Managers
Communication Skills for Managers
as Senders :
Send clear and complete messages
Encode messages in symbols the receiver understand
Select a medium appropriate for the messsage
Select a medium receiver monitor
Avoid filtering & informstion distortion
Include a feedback mechanism in messages
Provide accurate information
as Receiver :
Pay attention
Be a good listener
Be empathetic

Organizational Conflict
The discord that arises when the goals,
interests, or values of different
individuals or groups are incompatible &
those individuals or groupsblockor
thwart one anothersattempts to achieve
their objectives.

Types of Conflict in Organizations

Organizational
conflict

Interpersonal
conflict

Intragroup
conflict

Intergroup
conflict

Interorganizational
conflict

Sources of Conflicts
in Organizations
Incompatible goals
and time horizons

Status
inconsistancies

Organizatio
nal conflict

Overlapping
authority

Task
interdependencies

Scarce resources
Incompatible evaluation
or reward system

Conflict Management Strategies

Strategies Focused on Individuals :
Increasing awareness of the sources of conflict
Increasing diversity awareness and skills
Practicing job rotation or temporary
assignments
Using permanent transfers or dismissals when
necessary
Strategies focused on the whole organization:
Changing an organizations structure or culture
Altering the source of conflict

Negotiation
A method of conflict resolution in which the two parties in
conflict consider various alternative ways to allocate
resources to each other in order to come up with a
solution acceptable to them both.
Third Party Negotiator An impartial individual with
expertise in handling conflicts and negotiations who helps
parties in conflict reach an acceptable solution.
Mediator A third party negotiator is who facilitates
negotiations but has no authority to impose a solution.
Arbitrator A third party negotiatior who can impose what
he or she thinks is a fair solution to a conflict that both
parties are obligated to abide by.

Negotiation Strategies

Emphasize superordinate goals.

Focus on the problem, not the people.
Focus on interest, not demands.
Create new options for joint gain.
Focus on what is fair.

Organizational Politics
Activities that manager engage in to increase
their power & to use power effectively to
achieve their goals & overcome resistance or
opposition.

Political Strategies Tactics that managers use

to increase their power and to use power
effectively to influence & gain the support of
other people while overcoming resistance or
opposition.

Political Strategies
for Increasing Power
Controlling
uncertainty

Being
irreplaceable

Being a central
position

Generating
resources
Buiding
Alliances

Increases
a
managers
power
in an
organization

Political Strategies
for Exercising Power
Relying on
objective
information
Bringing in an
outside expert

Controlling the
agenda
Making
everyone a
winner

Helps
managers use
their power
effectively

End of Presentation
Thank you for listening !!!