Module 2 Flashcards
(19 cards)
What are the theories?
Scientific Management (Frederick Taylor, 1856–1915)
Focus: Worker efficiency via time-motion studies, specialization, and performance-based pay.
4 Principles:
Replace “rule of thumb” with scientific methods.
Scientifically select & train workers.
Cooperate with workers for efficiency.
Divide work equally between managers (planning) and workers (execution).
Criticism: Treats workers like machines; ignores job satisfaction.
Administrative Management (Henri Fayol, 1841–1925)
Focus: Managerial functions for organizational success.
5 Functions of Management:
Planning (set goals/strategies).
Organizing (delegate tasks).
Commanding (give clear instructions).
Coordinating (align team efforts).
Controlling (monitor performance).
14 Principles: Include division of labor, authority/discipline, unity of command, fair pay, and teamwork (esprit de corps).
Bureaucratic Management (Max Weber, 1864–1920)
Focus: Structured, rule-based organizations with clear hierarchies.
6 Characteristics:
Division of labor.
Authority hierarchy.
Formal selection (hire based on skills).
Career orientation.
Formal rules/controls.
Impersonality (uniform rules for all).
Criticism: Rigid rules slow adaptation; silos may form.
Functions of Management (Fayol’s Updated View)
Planning – Set objectives/strategies.
Organizing – Allocate resources/tasks.
Leading – Motivate employees (replaces “commanding”).
Controlling – Monitor progress vs. goals.
Staffing – Recruit/train employees (added later).
Effect on Organizations: Ensures efficiency, coordination, and goal achievement.
- Hawthorne Studies (Elton Mayo, 1924–1932)
Experiment: Studied how lighting/work conditions affected productivity at Western Electric.
Key Finding: Productivity rose due to attention/social factors (not just physical conditions).
Maslow’s Hierarchy of Needs: Workers need fulfillment beyond wages (e.g., safety, belonging).
McGregor’s Theory X/Y:
Theory X: Workers dislike work → need control.
Theory Y: Workers are self-motivated → thrive on trust.
Herzberg’s Two-Factor Theory:
Hygiene factors (salary, conditions) prevent dissatisfaction.
Motivators (achievement, growth) drive satisfaction.
Motivation Methods:
Job enlargement (more tasks).
Job enrichment (more responsibility).
Job rotation (task variety).
Group work (team collaboration).
What is System Management Approach
THINK OF A CONENCTED SYSTEM
The system theory approach views businesses as interconnected systems where performance improves through the interaction of core components like planning, organizing, staffing, leading, and controlling.
Organizations operate as open systems, relying on external inputs (resources) and delivering outputs (products/services) while being influenced by market forces, regulations, and societal values.
A closed system lacks external interaction, while an open system thrives through adaptability and feedback.
Synergy occurs when departments collaborate, achieving greater collective results than individual efforts, whereas entropy describes system decline due to isolation and lack of renewal.
Subsystems (departments) must align with overall business goals rather than optimizing independently. This framework emphasizes integrated management and environmental responsiveness for sustained success.
What are the functions of management?
Planning involves setting clear business objectives and developing strategic approaches to achieve them, such as increasing sales through enhanced advertising or expanding the sales team.
Organizing focuses on structuring human and material resources efficiently by grouping tasks, establishing departments, and defining authority lines to optimize communication and resource allocation.
Directing centers on motivating and guiding employees daily through leadership techniques like incentives and recognition to align their efforts with organizational goals.
Controlling ensures objectives are met by monitoring performance, identifying deviations from plans, and implementing corrective measures when necessary.
Staffing encompasses the entire employee lifecycle, from recruitment and selection to training, development, and compensation management, ensuring the organization has qualified personnel to execute its plans.
What are the organizational structures
FPGMNV
(i) Functional Structure
Principles: Groups employees by specialized functions (e.g., marketing, finance, production).
Advantages: Promotes efficiency through specialization; clear authority lines.
Disadvantages: Slow decision-making; poor interdepartmental coordination; inflexibility.
(ii) Product Structure
Principles: Divides organization by product lines, each with its own functional teams.
Advantages: Focus on product performance; encourages innovation; divisional accountability.
Disadvantages: Duplication of resources; potential inter-division rivalry; high operational costs.
(iii) Geographical Structure
Principles: Organizes operations by regions/countries, adapting to local markets.
Advantages: Responsive to local needs; decentralized decision-making.
Disadvantages: Resource duplication; coordination challenges; risk of inconsistent standards.
(iv) Matrix Structure
Principles: Combines functional and product/geographical lines (dual reporting).
Advantages: Flexible; efficient resource use; enhances collaboration.
Disadvantages: Role confusion; power struggles; complex to manage.
(v) Team Structure
Principles: Cross-functional teams replace rigid departments.
Advantages: Improves motivation; faster decisions; adaptable.
Disadvantages: Potential conflicts; time-consuming meetings; dual loyalty issues.
(vi) Network Structure
Principles: Outsources functions to partner firms linked via contracts/technology.
Advantages: Low overheads; access to global expertise.
Disadvantages: Less control over quality; dependency on external partners.
(vii) Virtual Structure
Principles: Relies on digital tools and remote workers; minimal physical presence.
Advantages: Cost-effective; global talent access; high flexibility.
Disadvantages: Weak corporate culture; communication barriers; job insecurity.
Characteristics of the formal
organisational structure?
(i) Hierarchy
The organizational hierarchy defines three key management levels: top-level (strategic decision-making, e.g., CEO), middle-level (operational execution, e.g., Plant Manager), and first-line (supervisory roles, e.g., Department Manager).
(ii) Chain of Command
This outlines the flow of authority from top management to subordinates, ensuring clear communication and accountability. Instructions move downward, while feedback moves upward.
(iii) Span of Control
Refers to the number of subordinates a manager oversees:
Narrow Span: Fewer subordinates, allowing closer supervision (common in tall structures).
Wide Span: More subordinates, promoting delegation (common in flat structures).
Factors affecting span: Task complexity, employee skill level, and leadership style.
(iv) Line and Staff Relationship
Line Relationship: Direct authority (e.g., CEO → Manager).
Staff Relationship: Advisory roles (e.g., Legal Secretary to CEO).
Line-Staff Hybrid: Combines authority with specialist support for efficiency.
(v) Responsibility
Employees are obligated to perform assigned tasks to the best of their ability. Responsibility often accompanies delegated authority.
(vi) Authority
The legitimate power to make decisions and assign tasks, derived from one’s position. Authority decreases down the hierarchy.
(vii) Accountability
Individuals must justify their actions/results to higher management. Ensures transparency and performance evaluation.
(viii) Delegation
Assigning tasks + authority to subordinates to:
Benefits: Reduce managerial workload, motivate staff, utilize expertise.
Drawbacks: Reluctance to delegate/accept tasks, potential inefficiencies.
(ix) Centralisation
Decision-making is concentrated at the top. Pros: Consistency; Cons: Slow response times.
(x) Decentralisation
Decision-making is spread across levels. Pros: Flexibility; Cons: Potential inconsistency.
What are the theories of motivation?
Maslow’s Hierarchy of Needs
The work of Abraham Maslow came about in the mid-1950s.
He proposed that:
An individual’s needs will influence his/her behaviour
The greater the need, the greater will be its influence on the individual’s behaviour.
Maslow identified a number of needs that will influence
human behaviour. He summarised his findings in the Hierarchy of Needs
Physiological Needs (Basic survival: fair wages, food, shelter)
Safety Needs (Job security, safe working conditions)
Social Needs (Teamwork, friendships at work)
Esteem Needs (Recognition, promotions, respect)
Self-Actualization (Creative challenges, career growth)
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In the late 1950s, Frederick Herzberg developed what he
called a two-factor theory of motivation. After conducting
interviews with a number of employees, he concluded that
there are some factors that will lead to job satisfaction and
others that will cause job dissatisfaction. The factors that
lead to job satisfaction were called ‘motivators’ and those
that cause job dissatisfaction ‘hygiene factors’. These factors include:
An attraction to the work itself
Recognition from both management and colleagues
Being given responsibility for tasks
A sense of achievement
Opportunities for advancement and personal growth.
Herzberg suggests that where there is a presence of
motivators on the job, workers will be motivated. However,
the lack of motivators will not lead to dissatisfaction but
workers will be neutral towards their work. Instead, it is the
hygiene factors that will prevent dissatisfaction.
These factors include:
Working conditions
Interpersonal relationships
Pay and job security
The policy of the organisation
The quality of management and supervision
Perceived differences with others
Victor Vroom’s Expectancy Theory suggests that employees
will be motivated to carry out tasks in order to reach a goal
if it is worthwhile to do so. Therefore a person’s motivation
can be linked to the anticipated worth that is placed on a
goal and the probability of that goal being achieved.
Victor Vroom said motivation depends on three questions employees subconsciously ask:
“Can I do it?” (Expectancy) – Do I have the skills/resources?
“Will I be rewarded?” (Instrumentality) – Is there a clear link between effort and reward?
“Do I care about the reward?” (Valence) – Is the reward meaningful to me
What is leadership?
While the definition of leadership varies,
the term is commonly defined as the process of influencing people towards a specific or common goal.
What are the leadership theories
Theory X and Theory Y
In the 1960s, Douglas McGregor made his mark on research
into leadership and motivation. He proposed two theories on how employees’ level of motivation may be affected by
the leadership style of management. He called these theories ‘Theory X’ and ‘Theory Y’. He suggested that managers
will adopt one of the two styles, depending on their beliefs and views of the employees. Managers who still hold the
traditional view of management was referred to as Theory X while those who held a more humanistic view were referred to as Theory Y managers.
Theory X (Traditional View)
Assumes people dislike work and avoid it when possible.
Believes employees need to be controlled, coerced, or threatened to perform.
Thinks workers lack ambition, avoid responsibility, and are self-centered, caring little for organizational goals.
Theory Y (Humanistic View)
Believes people find work as natural as play or rest.
Assumes employees are self-motivated and capable of self-direction.
Suggests people will accept and even seek responsibility.
Recognizes employees as creative and capable problem-solvers whose potential is underutilized.
The Trait Theory of leadership focuses on identifying the qualities that make someone an effective leader. It is based on the idea that good leaders are born with certain traits, not made through training. This theory was once called the “great man” theory. It suggests that leaders have unique characteristics that set them apart from others, such as personality, appearance, intelligence, and social skills.
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Ralph Stogdill challenged early trait theories by showing that traits like age, height, and weight were not reliable indicators of leadership. Instead, he identified more relevant traits such as honesty, intelligence, humour, initiative, and self-confidence. Richard D. Mann also studied leadership traits and found intelligence, masculinity, dominance, and extraversion to be key traits that set leaders apart from followers.
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Hans Eysenck introduced a statistical approach and developed the Eysenck Personality Questionnaire (EPQ). His research identified three main personality dimensions: introversion vs. extraversion, neuroticism vs. stability, and psychoticism, which refers to traits like hostility and difficulty with reality.
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Building on Eysenck’s work, other theorists developed the Five Factor Theory, which identifies five key personality traits: emotional stability, agreeableness, conscientiousness, openness, and extraversion. These personality traits can strongly influence a person’s leadership style.
What are leadership skills
(i) communication;
(ii) strategic thinking;
(iii) emotional intelligence; and,
(iv) decision-making, problem
solving and critical thinking.
What are leadership styles/behaviours
Transformational leaders inspire their team to work toward common goals. They stay involved in the daily activities of the organization and communicate effectively with their team members. Instead of always leading from the front, they delegate responsibilities to others. They encourage their team to be creative and come up with new ways to solve problems.
What is informal leadership and its influences?
Informal leaders are people who don’t have official power but still influence and motivate others. They are usually well-liked, respected, and help get things done. They can inspire their peers, support others, and help connect workers with management.
Advantages: They boost motivation, improve teamwork, give helpful ideas, and help communication.
Disadvantages: They might resist changes or spread the wrong information.
What is a team? and its characteristics
A team or group can be defined as the interaction of two or more people, in an interdependent way, to achieve a common goal or objective. A team can be formal or informal.
(i) commitment.
(ii) participation.
(iii) trust.
(iv) decision by consensus.
(v) flexibility.
(vi) encouragement; and,
(vii) support and growth.
What are the stages of a team?
Forming – at this stage, members are just getting
to know each other. They are often uncertain about
the purpose, structure and leadership of the group.
Members may be timid as they seek to find out what
behaviour is acceptable or not acceptable
Storming – as members start to share ideas and become
more acquainted with each other, intra-team conflict
and disagreements may develop. They express their
individuality and resist the pressures and influence of
the remaining team members
Norming – as the team members get to know even
more about each other, the conflicts and disagreements
start to subside. In this stage, members start developing
good relationships and cohesion. The purpose of the
team is now clear and each member knows the accepted
behaviour
Performing – the focus of the team is now on getting
the job done and achieving its objectives. The method of
working is established and each member can now make
their contribution to the task. This is the final stage for
permanent teams
Adjourning – at this stage, teams that are temporary
wrap up their activities and prepare for disbandment.
The task would have been performed and the team
members now look towards separation.
How are teams managed effectively? and what forces influence team cohesiveness
Group cohesiveness means how well a group works together. Several things affect it:
Size: Smaller groups usually work better together, but if too small, members can get overworked.
Group goals: Groups are stronger when everyone agrees on the same goal.
Similarities: People who are alike in background or beliefs get along better, but differences can sometimes cause fights.
Diversity: Having different skills can help, but too many differences can lead to conflicts.
Attraction: When group members like each other, the group is more united.
What is conflict and the possible causes? and how does one manage conflict?
Possible Causes of conflict:
(i) management style;
(ii) competition for scarce
resources;
(iii) ineffective communication;
and,
(iv) clash of personalities.
Strategies to manage conflict:
Avoidance: Ignoring minor conflicts to let parties solve it themselves; used when conflict is trivial or resolution is too costly.
Smoothing: Focusing on agreements and downplaying disagreements; one party may give up their interests to keep peace.
Compromise: Both parties give up something to reach a middle ground; no clear winner or loser.
Collaboration: Both parties work together to fully satisfy each other’s needs; creates a win-win but can take time.
Confrontation: Conflicting parties meet directly to openly discuss and resolve their disagreements.
What is the management of change? what are the factors that causes change?
Factors causing change in an organization can be internal or external. Internal influences come from within the company and can be controlled by management. These include developing new products, mergers or takeovers, changes in control systems, and shifts in customer service to meet changing consumer needs.
External influences come from outside the company and are beyond its control. These include rapid technological advancements, economic changes like inflation or unemployment, demographic shifts in population, social changes affecting lifestyle and workforce, and legal or political changes such as new laws or government policies. These external factors force organizations to adapt to remain effective.
Fear of the unknown
Lack of trust
Disrupted habits
Loss of control and confidence
Not enough training
Changes in workload
Unclear reasons for change
Fear of losing power
Poor communication
Weak leadership support
How to manage change
Educate and communicate: Teach employees about the change and why it’s needed. Share information clearly to avoid confusion and fear.
Involve employees: Let workers take part in planning the change. This reduces resistance and helps find better solutions.
Negotiate: Talk and bargain with those resisting change to reach a compromise, especially when unions or big impacts are involved.
Support employees: Provide training and counseling to help those who feel afraid or unprepared for the change.
Use authority if needed: As a last resort, managers may force employees to comply by threatening consequences like losing promotions or jobs.
What is communication, why is it important and what are the methods/lines/barriers of
Communication may be defined as a two-way process which enables information to be disseminated between two
or more people. It involves the exchange of ideas, facts and emotions by individuals.
Communication methods (including:
oral, written, visual, non-verbal);
Communication channels (including:
Internet, e-mail, Intranet, facsimile,
video conferencing).
Lines:
Horizontal channels let coworkers talk. They share info and solve problems. Formal communication follows rules. It is slow and costly. People may not be honest. It can feel cold. It takes time to prepare.
Informal communication is outside the rules. It can help. The grapevine is informal talk. It happens when info is missing. It grows when people don’t trust formal talk or feel worried.
What is Human resource management and its role?
HRM helps the organisation achieve its goals by planning, recruiting, training, and managing employees effectively. It ensures the right people are hired and developed to meet business needs.
Recruitment and Selection: Finding and choosing the right people for jobs.
Training and Development: Teaching employees new skills and helping them grow with coaching and mentoring.
Performance Management: Setting goals, checking progress, and reviewing work to improve results.
