Chapter 6 Flashcards
(25 cards)
What is the role of management
Management is needed to organise people, physical resources, financial resources and knowledge effectively towards the business’s goals.
Management directs a business towards its goals
Management sets and keeps the operations of the business on a balanced course
Management keeps the organisation in equilibrium with its environment
Management is needed to reach the goals of the organisation at the highest level of productivity
Definition of management
Process of activities that are carried out to enable a business to accomplish its goals by employing human, financial, and physical resources of a business for that purpose. Management directs resources towards goals.
What are the four fundamental activities of management
- Planning - management decides what needs to be done
- Organising - management decides how it should be done
- Leading - management says how and when it should be done
- Control - management decides if the tasks have been carried out
What are the different levels of management
- Top/general/strategic management
- Middle/tactical/functional management
- Lower/operational/first-line management
Explain the top level of management
- Small group of executives
- Final authority and responsibility for the execution of the management process
- Normally responsible for business as a whole and determining its mission and goals
- Monitors environment within which the organisation operates
- Integrates functional areas of management
Explain the middle level of management
- Responsible for certain functional areas of the business
- Executing the policies, plans, and strategies made by top management
- Medium to long term planning and organisation within functional areas
Explain the lower management level
- Supervisory management
- Day-to-day activities
- Shoert term planning, implementing plans of middle management
- Finer details of organising
What are the skills needed at levels of management
- Conceptual skills - mental capacity to view the business in a holistic manner, thinking and planning abilities
- Interpersonal skills - human relation skills, understand and communicate, lead, motivate, team spirit
- Technical skills - ability to use knowledge/techniques of a discipline, needed at lower level
Mintzberg’s model:
What are the 10 roles of managers grouped into
(3 major categories)
Interpersonal roles
Decision-making roles
Information roles
Mintzberg’s model:
What are the 10 roles of managers
Decision-making roles:
1. Entrepreneur
2. Troubleshooter
3. Allocator of resources
4. Negotiator
Interpersonal roles:
1. Representative figure
2. Leader
3. Relationship
Information roles:
1. Monitors
2. Analyses
3. Spokesperson
What was the state of management until the early 1900s
- Few large organisations, no mega-organisations
- Comparatively few managers - no middle management
- Managerial activities not clearly distinguished from activities of owners
- Succession to top management based primarily on birth
- Few decision-makers
- Emphasis on command and intuition
What was the state of management during the 20th century
- Many huge and powerful organisations in both private and public sectors
- Many managers - a comparatively large middle management group
- Well defined managerial activities clearly separated from non-managerial activities
- Promotion to top management on a basis of qualifiactions, competence and performance
- Many decision-makers
- Emphasis on leadership, teamwork and rationality
What is the possible state of management in the future (21st century)
- Emphasis on corporate governance and corporate social responsibility
- Influence of rise of emerging markets, China, on development of management theory
- Emphasis on use of technology
- Focus on emotional intelligence, problem-solving skills and communication skills
- Emphasis on creating customer value
- Emphasis on managing remotely
What are the classical schools of management
- The scientific school
- The management process school
- The behavioural school
- The quantitative school
- The systems approach
What are the contemporary schools of management
- The contingency approach
- Strategic management
- Total Quality Management
- The learning organisation and the re-engineering of businesses
- Diversity management
Elaborate:
The scientific school
(Classical school)
- Work of F.W. Taylor
- Increase productivity
- Observation, job analysis, job measurement, redesign of jobs, financial incentives
Elaborate:
The management process
(Classical school)
- Henri Fayol
- 6 functions of business - technical, commercial, financial, accountancy, security, general management
- Concentrates on top management
- Most important functions in a business and most important elements of management
- Develop universal principles of management, developed for each function
- Systematises variety of activities, facilitates internal organisation of a business, appoint people with right qualifications to functional departments, study is easier due to grouping
Elaborate:
The behavioural school
(Classical school)
- Elton Mayo
- Failure of scientific andmanagement process
- Considers human factor important
- Productivity had to do with psychological and sociological factors
- Personnel management
Elaborate:
The quantitative school
(Classical school)
- System of mathematical models and processes
Elaborate:
The systems approach
(Classical school)
- Compensated for previous disadvantaged
- Group of interrelated parts with a single purpose
- Forerunner of strategic management
Elaborate:
The contingency approach
(Contemporary school)
- Integrates ideas of different models
- Application of management principles depends on a situation at a moment
- Must decide what is best for each situation
- No universal set, whatever means are available
Elaborae:
Strategic management
(Contemporary school)
- Align the goals and objectives of a business with trends in the environment
- Focus on SWOT
- Builds a distinct competence in a particular market
Elaborate:
Total quality management (TQM)
(Contemporary school)
- Matter of quality
- Based on success of Germans and Japanese
- Top quality and high level of productivity
Elaborate:
The learning organisation and the re-engineering of businesses
(Contemporary school)
- Learning organisations and learning individuals
- Focus on core activities and outsource unrelated ones
- Downsizing
