Management – 1) the process of achieving organizational goals by engaging in the four major functions: planning, organizing, leading, and controlling

2) art of getting things done through people

Effectiveness: ability to choose appropriate goals and achieve them

Efficiency: ability to make the best use of available resources in the process of achieving goals.

First line managers:

Managers at the lowest level who are directly responsible for the work of operating employees

Middle managers:

Beneath the top levels who are directly responsible for the work of other managers below them.

Department heads, division heads.

Top managers:

At the very top levels of the hierarchy who are ultimately responsible for the entire organization

Preclassical – Robert Owen (1771-1858).

Charles Babbage (English mathematician) (1792-1871

Henry R. Towne (1844-1924).

Classical viewpoint: emphasizes finding ways to manage work and organizations more effectively.

Frederick Taylor (1856-1915).

The Gilbreths, Frank and William (1860 - 1972).

Bureaucratic management (branch). Max Weber (1864-1920).

Administrative management – focuses on principles that can be used by managers to coordinate the internal activities of organizations. Henry Fayol, French industrialist (1841-1925).

Behavioral viewpoint – emphasizes the importance of attempting to understand the various factors that affect human behavior in organizations./ Mary parker Follett (1868-1933). Boston. Hugo Munstberg, German (1863-1916).

Human Relations management

Abraham Maslow (1908-1970) (USA) Hierarchy of Needs; Douglas McGregor (1906-1964). Theory X- Theory Y.

Quantitative management: use of mathematics, statistics, and information aids; management science, operations management and information systems.

External environment – the major forces outside the organization that have the potential of significantly impacting on the likely success of products or services.

Internal environment – the general conditions that exist within an organization.

mega-env – general one, segment of the ext-l that reflects the broad conditions and trends in the societies within which an organization operates. Sociocultural elements, economic element, political, etc.

Task environment – outside elements with which an organization interfaces in business. Customers, clients, competitors, suppliers, labor supply, government agencies.

Internal environment : corporate culture, rules and procedures.

Managerial ethics: Standards of conduct and moral judgment used by managers or organizations in carrying out their businesses.

Social responsibilities:

Discretionary (ysmotrenie) Responsibilities: Ethical: Legal: Economic.

Soc. Responsibilities focus on five major stakeholders: shareholders, employees, customers, the community, and general society.

Long term oriented – with social responsible behavior.

Ethical guidelines: obey the law, tell the truth, show respect for people; always act when you have responsibility.

Three types of managerial ethics: immoral, amoral, moral.

Plan – The means devised to reach a goal

Goal – A future target or end result that an organization wishes to achieve

Mission – The organization’s purpose or fundamental reason for existence

Mission statement (MS) – a broad declaration of the basic, unique purpose and scope of operations that distinguishes the organization form others of its type

Levels of goals

First level management – operational goals

Targets or future results set by lower management that address specific measurable outcomes required from the lower levels.

Middle management – tactical goals

Targets or future results usually set by middle management for specific departments or units

Spell what must be done to achieve the results outlined in the strategic goals.

Strategic goals – top management

Areas:

Market standing - desired share of present and new markets

Innovation – in products, services, in skills and activities as required

Human resources - supply, development and performance of managers

Physical resources – facilities and how to use ‘em in production process

Productivity – efficient use of resources relative to outcomes

Social responsibility – community and ethical behavior

Profit requirements – level of profitability, other indicators.

Five major characteristics of effective goals:

1. Challenging. Difficult goals lead to higher performance

2. Attainable. Usually work best when they are attainable. At some point, use of maximum skills and abilities and cannot achieve higher performance levels. Even with difficult goals individuals usually attempt to achieve as much as possible – if they are given credit for what they do achieve.

3. Specific and Measurable. Clear what is expected and when the goal has been achieved. Quantitative goals and qualitative ones.

4. Time-limited. Should be a defined period of time wihin which the goals must be accomplished.

5. Relevant. If clearly relevant to the major work of organization and the particular department.

Goal commitment – one’s attachment to, or determination to reach, a goal. To feel committed.

Linking goals and plans

Strategic plans. Detailed action steps mapped out to reach strategic goals. Issues – how to respond to changing conditions, to allocate resources, what actions should be taken to create unified and powerful organizationwide effort aimed at strategic goals. From 3-5 years and more.

Tactical plans. The means charted to support implementation of the strategic plan and achievement of tactical goals. 1-3 years. Developed by middle managers, who may consult lower-level managers before commitments to top managers. Generally more specific and concrete than strategic plans.

Operational plans. The means charted to support implementation of the tactical plans and achievement of operational goals. Less than 1 year. Developed by lower – first line managers in conjunction with the middle management levels. Spell out what must be accomplished over short time periods.

Organizational plans:

Single use: programs, projects, budgets

Standing plans: policies, standard operating procedures, rules.

Single use plans:

Aimed at achieving a specific goal that, once reached, will most likely not recur in the future.

Program: Comprehensive plan that coordinates a complex set of activities related to a major goal.

Project: a plan that coordinates a set of limited-scope activities that do not need to be divided into several major projects in order to reach a major non-reccuring goal.

Policy: a general guide that specifies the broad parameters within which organization members are expected to operate in pursuit of organizational goals.

Procedure: a prescribed series of related steps to be taken under certain recurring circumstances.

MBO – a process through which specific goals are set collaboratively for the organization as a whole and every unit and individual within it; the goals are then used as a basis for planning, managing organizational activities, and rewarding contributions.

Six steps:

1. Develop overall organizational goals

2. Establish specific goals for various departments, subunits and individuals

3. Formulate action plans

4. Implement plans and maintain self-control

5. Review progress periodically

6. Appraise performance

1. Goals are based on the overall mission of the organization and address targets to be achieved by the organization as a whole (increase in market share, ROI). Essentially strategic goals set by top management.

2. Goals are set for various levels of org-n, so that cumulative affect achieved and lead to reaching overall goals. Begins – upper level managers formulate specific objectives, later developed in collaboration with managers at the next level.

3. Once goals are set – need to develop action plans, focused on methods (activities) necessary to reach the particular goals. Action plans – help assess the feasibility of reaching goals, identify problem areas, facilitate search for more efficient and effective ways to achieve objectives.

4. Once goals and plans are set – individuals should be given latitude (svoboda, samostoyatelnost) in carrying out their activities. Self-control is important.

5. To ensure that plans are being implemented as expected and goals are met. Provide good opportunity for checking performance to date, removing obstacles, solving problems, altering action plans.

6. Managers meet with each subordinate (after 1 year) to conduct an appraisal of performance over the cycle. Focuses on the extent goals are met, on shortfalls, reasons for them, and actions to be taken.

Strengths:

Aids coordination of goals and plans

Help clarify priorities and expectations

Facilitate vertical and horizontal communications

Fosters employee motivation

Weaknesses

Tends to falter without strong, continual commitment from top management

Need for considerable training of management

Can be misused as a punitive device

May cause an overemphasis of quantitative goals

Need: adequate support from top mngt; poor goal setting and communication skills among managers who must implement the system.

Strategic management

Strategies: large scale action plans for interacting with the environment inorder to achiev long-term goals.

Strategic management: a process through which managers formulate and implement strategies to optimize strategic goals achievement, given available environmental and internal conditions.

The process:

Identification of current mission and Strategic Goals

Conduct competitive analysis: strengths; weaknesses; opportunities; threats.

Develop specific strategies: corporate, business, functional

Carry out strategic plans

Maintain strategic control

Competitive advantage: a significant edge over the competition in dealing with competitive forces

Competitive analysis:

SWOT analysis: a method of analyzing an organization’s competitive situation that involves assessing organizational strengths (s), weaknesses (w), environmental opportunities (o) and threats (t).

Opportunity, threat – environmental conditions;

Strengths, weaknesses - internal