key concepts of management by jocy e. detecio

Discussant: JOCY E. DETECIO

ESSENTIALS OF MANAGEMENT

Is a (1) social entities that (2) are goal oriented, (3) are designed as deliberately

structures and coordinated activity systems, and (4) are linked to the external

environment.

SOCIAL ENTITIES this is a key point as it indicates that organization are

cultural and political as well as economic phenomena. They are ‘social’

all-the-way down. To regard organizations as equivalent to machines or as technologies is to invite disaster. Organizations comprise people who, in contrast to material entities, interpret

their situations and are capable of ignoring or resisting, collectively and

individually, often in subtle and difficult to control ways, demands that are

made of them.

GOAL-DIRECTED. This element of the

definition emphasizes how

activity in organizations is

highly instrumental rather than intrinsically

meaningful. That is to say, such activity

such activity is strongly influenced

by individuals’ calculations

concerning the most effective means of

achieving their ends or goals whatever

these may be.

DESIGNED AS DELIBERATELY

STRUCTURED AND COORDINATED

ACTIVITY SYSTEMS . In

contrast to other human ‘activity

systems, such as the family, it is likely

that the division and coordination of labor

in work organizations will be

more deliberately structured.

LINKED TO THE EXTERNAL ENVIRONMENT . It is important to appreciate that organizations exist within a wider context or set of conditions. The

idea of being linked to the environment does not necessarily grasp the extent to which organizations

are part-and-parcel of their environments rather than simply connected to them. The so called environment is shaped and changed by the organizations that comprise. It is therefore

necessary to place scare quotes around external environment.

Types of There are a variety of legal

types of organizations, including corporations, 

governments, non-governmental organizations

, international organizations, armed forces, charities, 

not-for-profit corporations, partnerships, cooperatives,

and universities.

Importance ofOrganizations exist to do the following:1.Brimng together resources to achieve

desired goals and outcome.2.Produce goods and services efficiently.3.Facilitate innovation4.Use modern manufacturing, service and

information technologies5.Adapt to and influence a changing

environment6.Create value for owners, customers, and

employees7.Accommodate ongoing challenges of

diversity, ethics and the motivation and coordination of employees.

Dimensions of Organization Design

1. FORMALIZATION refers to the reliance upon written for commendation in the organization. Such documentation relates to procedures, job descriptions, regulations and policy manuals. Larger organizations tend to score high on formalization because they have written rules to authorize and control a wide range of activity. A small family owned business, in contrast, may have almost no written rules and would be considered informal even if the personal control exercised by its head is rigid and all encompassing.

2. SPECIALIZATION is the degree to which organizational tasks are subdivided into separate jobs. If specialization is extensive, each employee performs only a narrow range tasks. High levels of specialization are found on production lines where each worker is expected to become highly adept at repeatedly performing a narrow set of skills., likewise, the division of labor amongst managers may be highly specialized.

3. HIERARCHY OF AUTHORITY describes who reports to whom and the span of control for each manager.

4.CENTRALIZATION refers to the heirarchical level that has authority to make a decision. When decision making is kept at the top level, the organization is centralized. When decisions are delegated to lower organizational levels, it is decentralized. Organizational decisions that might be centralized at head office or decentralized to a particular division operating unit may include that purchasing of certain types of equipment or the hiring of particular grades of employee.

ORGANIZATION THEORIES

Organizational theory is the sociological study of formal social organizations, such as businesses

and bureaucracies, and their interrelationship with the

environment in which they operate. It complements the studies of organizational behavior and 

human resource studies.

• Actor–network theory, an approach to social theory and

research, originating in the field of science studies, which treats

objects as part of social networks.

•Complexity theory and organizations

, the use of complexity theory in the field of 

strategic management and organizational studies

• Contingency theory, a class of behavioral theory that claims that there is no best way

to organize a corporation, to lead a company, or to make decisions.

• Critical management studies, a loose but extensive grouping of theoretically

informed critiques of management, business and organisation, grounded

originally in a critical theory perspective

• Economic sociology, studies both the social effects and the social causes

of various economic phenomena.

• Enterprise architecture, the conceptual model that defines the

coalescence of organizational structure and organizational behavior

•Garbage Can Model

, Describes a model which disconnects

problems, solutions and decision

makers from each other

• Scientific management (mainly following Frederick W. Taylor), a theory of management that analyzes and synthesizes workflows• Social entrepreneurship, the

process of pursuing innovative solutions to social problems

• Transaction cost theory, the idea that people begin to organize their production in firms when the transaction

cost of coordinating production through the market exchange, given imperfect information, is

greater than within the firm

• Weber's ideal of bureaucracy• Official Jurisdiction on all areas are ordered by rules or laws

already implemented.• There is an office hierarchy; a system of super- and

subordination in which there is supervision of lower office by higher ones.

• The management of the modern office is based upon written rule, which are preserved in original form.

• Office management requires that of training or specialization.• When the office is developed/established it requires the full

working capacity of individuals.• Rules are stable and can be learned. Knowledge of these rules

can be viewed as expertise within the bureaucracy (these allow for the management of society)

A goal is a desired result a person or a system envisions, plans and commits to achieve a

personal or organizational desired end-point in some sort of assumed development. Many

people endeavor to reach goals within a finite time by settingdeadlines.

It is roughly similar to purpose or aim, the anticipated result which guides reaction, or an end, which is an object, either a physical object or an abstract object, that hasintrinsic value.

GOAL-SETTING ideally involves establishing specific, measurable, attainable, realistic and time-bounded

(S.M.A.R.T.) objectives. Work on the goal-setting theory suggests that it can serve as an effective tool for making progress by ensuring that participants have a clear awareness of what they

must do to achieve or help achieve an objective. On a personal level, the process of setting goals allows people to specify and then work towards their own

objectives most commonly, financial or career-based goals. Goal-setting comprises a major

component of personal development.A goal can be long-term or short-term. The primary

difference is the time required to achieve them.

SHORT-TERM GOALSShort-term goals expect accomplishment in a short period

of time, such as trying to get a bill paid in the next few days. The definition of a short-term goal need not relate to any specific length of time. In other words, one may achieve (or fail to achieve) a short-term goal in a day,

week, month, year, etc. The time-frame for a short-term goal relates to its context in the overall time line that it is being applied to. For instance, one could measure a

short-term goal for a month-long project in days; where as one might measure a short-term goal for someone's lifetime in months or in years. Planners usually define

short-term goals in relation to a long-term goal or goals.

Goal-setting and planning ("goal work") promotes long-term vision and short-term motivation. It

focuses intention, desire, acquisition of knowledge, and helps to organize resources.

Efficient goal work includes recognizing and resolving all guilt, inner conflict or limiting belief that might

cause one to sabotage one's efforts. By setting clearly defined goals, one can subsequently

measure and take pride in the achievement of those goals. One can see progress in what might have

seemed a long, perhaps impossible, grind.

AN ORGANIZATIONAL GOAL-MANAGEMENT SOLUTION ensures that individual employee goals and objectives align with the vision and

strategic goals of the entire organization. Goal-management

provides organizations with a mechanism to effectively

communicate corporate goals and strategic objectives to each person

across the entire organization. The key consists of having it all emanate from

a pivotal sourceand providing each person with a clear, consistent

organizational-goal message. With goal-management, every employee

understands how their efforts contribute to an enterprise's success.

An example of goal types in business management:• Consumer goals: this refers to supplying a product

or service that the market/consumer wants• Product goals: this refers to supplying a product

outstanding compared to other products perhaps due to the likes of quality, design, reliability and novelty

• Operational goals: this refers to running the organization in such a way as to make the best use of management skills, technology and resources

• Secondary goals: this refers to goals which an organization does not regard as priorities

is a set of activities (including planning and decision making, organizing, leading, and controlling) directed at an organization's resources (human, financial, physical, and information) with the aim of achieving organizational goals in an efficient and effective manner.

Basic roles• Interpersonal: roles that involve coordination and interaction

with employees• Informational: roles that involve handling, sharing, and

analyzing information• Decisional: roles that require decision-making

Management skills• Political: used to build a power base and establish connections• Conceptual: used to analyze complex situations.• Interpersonal: used to communicate, motivate, mentor and

delegate• Diagnostic: ability to visualize most appropriate response to a

situation

A RESOURCE is a source or supply from which benefit is produced. Typically resources are materials, services, staff, or other assets that are transformed to produce benefit and in the process may be consumed or made unavailable. Benefits of resource utilization may include increased wealth, meeting needs or wants, proper functioning of a system, or enhanced well being.

 HUMAN RESOURCES  - people through the labor they provide and the organizations they staff, It can also be defined as the skills, energies, talents, abilities and knowledge that are used

for the production of goods or the rendering of services.

FINANCIAL CAPITAL-

the allocated budget or

the funding money for the activity

PHYSICAL RESOURCES - facilities, technology,

machinery used to automate, support and

perform the activities as well as the need of people to use it. It also includes the site and land where the activity will happen.

INFORMATION AND DATA- is used to feed the process and to be produced by the activity to provide the background necessary to evaluate current performance and plan future progress.

Computer resources include means for input, processing, output, communication, and storage.

These are people responsible for supervising the

use of an organization’s resources to

meet its goals.

Levels of Management

Most organizations have three management levels:• first-level, • middle-level, and• top-level managers  These managers are classified in a hierarchy

of authority, and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid. Each level is explained below in specifications of their different responsibilities and likely job titles.

TOP-LEVEL MANAGERSThe top consists of the 

board of directors (including 

non-executive directors and executive directors), president, vice-president, 

CEOs and other members of the C-level executives. They

are responsible for controlling and overseeing

the entire organization. They set a tone at the top

 and develop strategic plans, company policies, and make decisions on the

direction of the business. In addition, top-level

managers play a significant role in the mobilization of outside resources and are

accountable to the shareholders and general

public.

Middle-level Managers• Consist of general managers, branch managers and

department managers. They are accountable to the top management for their department's function. They devote more time to organizational and directional functions. Their roles can be emphasized as executing organizational plans in conformance with the company's policies and the objectives of the top management, they define and discuss information and policies from top management to lower management, and most importantly they inspire and provide guidance to lower level managers towards better performance. Their functions include:

• Design and implement effective group and inter-group work and information systems.

• Define and monitor group-level performance indicators.

• Diagnose and resolve problems within and among work groups.

• Design and implement reward systems that support cooperative behavior. They also make decision and share ideas with top managers.

First-level Managers• Consist of supervisors, section leaders, foremen, etc.

They focus on controlling and directing. They usually have the responsibility of assigning employees tasks, guiding and supervising employees on day-to-day activities, ensuring quality and quantity production, making recommendations, suggestions, and up channeling employee problems, etc. First-level managers are role models for employees that provide:

• Basic supervision• Motivation• Career planning• Performance feedback

As a new manager, remember that

management means getting things done

through other people. You can’t do it all

yourself. As a manager, your job is to create the environment and

conditions that engage other people in goal

accomplishment.

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